Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2019 | Feb. 14, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Organic Agricultural Co Ltd | |
Entity Central Index Key | 0001749849 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Common Stock, Shares Outstanding | 11,641,083 | |
Entity File Number | 333-226810 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | NV |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 225,983 | $ 12,953 |
Accounts receivable | 795 | |
Inventories | 631,033 | 516,404 |
Other receivables | 15,761 | 19,096 |
Prepaid expenses | 46,194 | 121,257 |
Total current assets | 919,766 | 669,710 |
Long-term lease prepayments | 273,275 | |
Property plant and equipment, net | 5,677 | 7,613 |
Operating lease right-of-use assets | 2,107,807 | |
Total assets | 3,033,250 | 950,598 |
Current liabilities: | ||
Accounts payable and accrued expenses | 47,329 | 56,594 |
Customer deposits | 101,153 | 164,362 |
Due to related parties | 136,713 | 92,307 |
Operating lease liabilities (current) | 327,169 | |
Other payables | 68,284 | |
Total current liabilities | 612,364 | 381,547 |
Operating lease liabilities (non-current) | 1,500,402 | |
Total liabilities | 2,112,766 | 381,547 |
Shareholders' equity | ||
Common stock; $0.001 par value, 74,000,000 shares authorized; 11,641,083 and 11,167,736 shares issued and outstanding at December 31,2019 and March 31, 2019, respectively | 11,641 | 11,168 |
Additional paid-in capital | 2,533,817 | 1,833,730 |
(Deficit) | (1,653,623) | (1,278,133) |
Other comprehensive income (loss) | 1,928 | (1,473) |
Total shareholders' equity of the Company | 893,763 | 565,292 |
Non-controlling interest | 26,721 | 3,759 |
Total shareholders' equity | 920,484 | 569,051 |
Total liabilities and shareholders' equity | $ 3,033,250 | $ 950,598 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 74,000,000 | 74,000,000 |
Common stock, issued | 11,641,083 | 11,167,736 |
Common stock, outstanding | 11,641,083 | 11,167,736 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 782,962 | $ 211,130 | $ 951,653 | $ 214,815 |
Cost of Sales | 699,704 | 135,932 | 856,867 | 138,010 |
Gross Profit | 83,258 | 75,198 | 94,786 | 76,805 |
Operating costs and expenses: | ||||
General and administrative expenses | 120,971 | 104,262 | 395,110 | 797,524 |
Selling and marketing expenses | 35,279 | 16,808 | 49,132 | 56,156 |
Total operating costs and expenses | 156,250 | 121,070 | 444,242 | 853,680 |
Operating (loss) | (72,992) | (45,872) | (349,456) | (776,875) |
Other income (loss) | 1,515 | (48) | 1,950 | 3,297 |
(Loss) before provision for income taxes | (71,477) | (45,920) | (347,506) | (773,578) |
Provision for income taxes | ||||
Net (loss) | (71,477) | (45,920) | (347,506) | (773,578) |
Less: net income attributable to non-controlling interests | 31,554 | 86,992 | 27,984 | 66,745 |
Net (loss) attributable to common shareholders | $ (103,031) | $ (132,912) | $ (375,490) | $ (840,323) |
Basic and diluted (loss) per share | $ (0.01) | $ (0.01) | $ (0.03) | $ (0.08) |
Weighted average number of shares outstanding- basic and diluted | 11,534,926 | 11,162,736 | 11,336,269 | 10,916,593 |
Other comprehensive (loss): | ||||
Net (loss) | $ (71,477) | $ (45,920) | $ (347,506) | $ (773,578) |
Foreign currency translation adjustment | (3,512) | (11,211) | (1,621) | (93,063) |
Comprehensive (loss) | (74,989) | (57,131) | (349,127) | (866,641) |
Less: Comprehensive income attributable to non-controlling interests | 34,531 | 85,726 | 22,962 | 11,076 |
Comprehensive (loss) attributable to the common shareholders | $ (109,520) | $ (142,857) | $ (372,089) | $ (877,717) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common stock | Additional Paid-in Capital | (Deficit) | Other comprehensive Income (Loss) | Total Shareholders' Equity | Non-controlling interest | Total |
Balance at Mar. 31, 2018 | $ 10,000 | $ 544,162 | $ (374,238) | $ 37,072 | $ 216,996 | $ 489,995 | $ 706,991 |
Balance, Shares at Mar. 31, 2018 | 10,000,000 | ||||||
Net (loss) | (547,355) | (547,355) | (1,138) | (548,493) | |||
Sale of common shares | $ 720 | 753,780 | 754,500 | 754,500 | |||
Sale of common shares, Shares | 720,000 | ||||||
Shares issued for compensation | $ 290 | 376,710 | 377,000 | 377,000 | |||
Shares issued for compensation, Shares | 290,000 | ||||||
Shares issued for reorganization consideration | $ 153 | 152,583 | 152,736 | 152,736 | |||
Shares issued for reorganization consideration, Shares | 152,736 | ||||||
Foreign currency translation adjustment | (13,790) | (13,790) | (32,196) | (45,986) | |||
Balance at Jun. 30, 2018 | $ 11,163 | 1,827,235 | (921,593) | 23,282 | 940,087 | 456,661 | 1,396,748 |
Balance, Shares at Jun. 30, 2018 | 11,162,736 | ||||||
Net (loss) | (160,056) | (160,056) | (19,109) | (179,165) | |||
Foreign currency translation adjustment | (13,659) | (13,659) | (22,207) | (35,866) | |||
Balance at Sep. 30, 2018 | $ 11,163 | 1,827,235 | (1,081,649) | 9,623 | 766,372 | 415,345 | 1,181,717 |
Balance, Shares at Sep. 30, 2018 | 11,162,736 | ||||||
Net (loss) | (132,912) | (132,912) | 86,992 | (45,920) | |||
Foreign currency translation adjustment | (9,945) | (9,945) | (1,266) | (11,211) | |||
Balance at Dec. 31, 2018 | $ 11,163 | 1,827,235 | (1,214,561) | (322) | (623,515) | (501,071) | (1,124,586) |
Balance, Shares at Dec. 31, 2018 | 11,162,736 | ||||||
Balance at Mar. 31, 2019 | $ 11,168 | 1,833,730 | (1,278,133) | (1,473) | 565,292 | 3,759 | 569,051 |
Balance, Shares at Mar. 31, 2019 | 11,167,736 | ||||||
Net (loss) | (115,007) | (115,007) | (3,622) | (118,629) | |||
Sale of common shares | $ 56 | 72,744 | 72,800 | 72,800 | |||
Sale of common shares, Shares | 56,000 | ||||||
Foreign currency translation adjustment | 2,426 | 2,426 | (3,024) | (598) | |||
Balance at Jun. 30, 2019 | $ 11,224 | 1,906,474 | (1,393,140) | 953 | 525,511 | (2,887) | 522,624 |
Balance, Shares at Jun. 30, 2019 | 11,223,736 | ||||||
Net (loss) | (157,452) | (157,452) | 52 | (157,400) | |||
Foreign currency translation adjustment | 7,464 | 7,464 | (4,975) | 2,489 | |||
Balance at Sep. 30, 2019 | $ 11,224 | 1,906,474 | (1,550,592) | 8,417 | 375,523 | (7,810) | 367,713 |
Balance, Shares at Sep. 30, 2019 | 11,223,736 | ||||||
Net (loss) | (103,031) | (103,031) | 31,554 | (71,477) | |||
Sale of common shares | $ 417 | 627,343 | 627,760 | 627,760 | |||
Sale of common shares, Shares | 417,347 | ||||||
Foreign currency translation adjustment | (6,489) | (6,489) | 2,977 | (3,512) | |||
Balance at Dec. 31, 2019 | $ 11,641 | $ 2,533,817 | $ (1,653,623) | $ 1,928 | $ 893,763 | $ 26,721 | $ 920,484 |
Balance, Shares at Dec. 31, 2019 | 11,641,083 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net (loss) | $ (347,506) | $ (773,578) |
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,976 | 2,116 |
Share based compensation | 377,000 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (796) | |
Prepayments and deferred expenses | 334,118 | 114,079 |
Inventories | (137,038) | (413,435) |
Other receivables | 2,632 | (39,332) |
Accounts payable and accrued expenses | (8,705) | (52,264) |
Customer deposits | (57,206) | 190,258 |
Due to (from) related parties | 22,465 | 205,948 |
Payment of operating lease liabilities | (280,510) | |
Other payables | (14,304) | 116 |
Net cash (used in) operating activities | (483,874) | (389,092) |
Cash Flows from Investing Activities | ||
Purchase of fixed assets | (1,319) | (10,494) |
Payment to Lvxin original shareholders for transfer of 51% interest | (222,403) | |
Net cash (used in) investing activities | (1,319) | (232,897) |
Cash Flows from Financing Activities | ||
Proceeds from sale of common stock | 647,260 | 335,250 |
Proceeds from related party loans | 49,772 | 7,661 |
Repayment to related parties | (101,955) | |
Net cash provided by financing activities | 697,032 | 240,956 |
Effect of exchange rate fluctuation on cash and cash equivalents | 1,191 | (54,193) |
Net increase (decrease) in cash and cash equivalents | 213,030 | (435,226) |
Cash and cash equivalents, beginning of year | 12,953 | 458,690 |
Cash and cash equivalents, end of year | 225,983 | 23,464 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | ||
Cash paid for interest | ||
Supplemental disclosure of non-cash activities: | ||
Offset of balance due for 51% interest to due from related parties | 77,554 | |
Issuance of common stock as stock compensation | 377,000 | |
Allocation of prepayments to Long-term leasehold prepayments | 266,662 | |
Operating ROU assets obtained in exchange for lease liabilities | $ 1,829,353 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) | 9 Months Ended |
Dec. 31, 2019 | |
Statement of Cash Flows [Abstract] | |
Interest hold in Lvxin | 51.00% |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION Organic Agricultural Company Limited ("Organic Agricultural", the "Company", "we" or "us") was incorporated in the State of Nevada on April 17, 2018. The Company, through its subsidiaries with headquarters in Harbin, China, sells paddy and selenium-enriched paddy products rice and other agricultural products. The Company's subsidiaries include: ● Organic Agricultural (Samoa) Co., Ltd. ● Organic Agricultural Company Limited (Hong Kong) ● Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited. ● all of the registered equity of Heilongjiang Yuxinqi Agricultural Technology Development Company Limited ● 51% of the registered equity of Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative Reorganization On May 16, 2018, the Company completed a corporate reorganization to combine several controlled entities (now referred to as the "subsidiaries") into Organic Agricultural. The specific transactions related to this reorganization are as follows: On March 31, 2017, Hao Shuping and the shareholders of Lvxin signed an Equity Transfer Agreement, whereby shareholders of Lvxin transferred 51% of the controlling interest in Lvxin to Hao Shuping. Hao Shuping agreed to pay the Lvxin shareholders RMB 2,029,586 (US$305,472) in cash and cause the company that would become Organic Agricultural to issue to them 152,736 shares (valued at US$152,736). Hao Shuping and the shareholders of Lvxin also signed an irrevocable supplemental agreement that gave Hao Shuping voting and managerial control over Lvxin. By June 22, 2018, Tianci Liangtian paid all of the consideration to Lvxin's former shareholders. On January 1, 2018, pursuant to the Equity Transfer Agreement between Hao Shuping and Tianci Liangtian, Hao Shuping transferred his 51% controlling interest in Lvxin to Tianci Liangtian. As control of both entities resided with Hao Shuping, we have accounted for the combination of Lvxin with Tianci Liangtian as a transaction between entities under common control. On January 8, 2018, the shareholders of Tianci Liangtian transferred ownership of Tianci Liangtian to Organic Agricultural HK, which is wholly owned by Organic Agricultural Samoa. On May 16, 2018, the Company issued 10,000,000 shares of its common stock, par value $0.001 to the shareholders of Organic Agricultural Samoa, in exchange for 100% of the outstanding shares of Organic Agricultural Samoa (the Share Exchange ). As a result of the Share Exchange, Hao Shuping acquired 48.8% of the Company's outstanding shares. Prior to the Share Exchange, Hao Shuping controlled Lvxin and Tianci Liangtian. Therefore, the Share Exchange was accounted for as a business combination of entities under common control in accordance with ASC 805-50-30-5. Accordingly, the assets and liabilities of the Company and its subsidiaries are presented at their carrying values at the date of the transaction; the Company's historical stockholders' equity was retroactively restated to the first period presented, as the acquisition of Organic Agricultural Samoa, Organic Agricultural HK, Tianci Liangtian and Lvxin was treated as a combination of entities under common control. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Going concern Management has determined there is substantial doubt about our ability to continue as a going concern as a result of our lack of significant revenues and recurring losses. If we are unable to generate significant revenue or secure additional financing, we may be required to cease or curtail our operations. Our financial statements do not include adjustments that might result from the outcome of this uncertainty. The Company's operations have been financed primarily by advances and loans from related parties and proceeds from sales of shares. Hao Shuping, Shen Zhenai and Xun Jianjun, the shareholders of Lvxin, have been the primary sources of financing for the operations of the entity and continue to provide support in the future if there is any need for capital. As of December 31,2019, the Company has a balance of 45,612, 37,055, 22,253 and 31,793, respectively, due to Hao Shuping, Shen Zhenai, Xun Jianjun and the Lou Zhengui, the shareholders of Lvxin. The Company has received $647,260 during the nine months ended December 31, 2019, and an additional $30,000 from January 1, 2020 to the date of filling this report, for the sale of shares. These funds provided sufficient working capital for the Company. Management intends to expand product offerings to include value-added products, both products based on rice and products based on other food stuffs, such as organic red beans and millet. The marketing personnel of the Company will endeavor to expand awareness of our brand, open new marketing channels, and educate the nation about the health benefits of selenium-enriched rice. In this manner, Management hopes to make sufficient operating cash inflow to support its future operations and development of the Company in addition to capital raised from sales of shares and shareholders' support based on needs. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Item Regulation S-X, Rule 10-01(c) Interim Financial Statements, and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders' equity in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the three and nine months ended December 31, 2019 are not necessarily indicative of the results that can be expected for the year ending March 31, 2020. The Company's consolidated financial statements are expressed in U.S. Dollars and are presented in accordance with Accounting Principles Generally Accepted in the United States of America ("U.S. GAAP"). Principles of consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements include the assets, liabilities, and net income or loss of these subsidiaries. The Company's subsidiaries are listed as follows: Name Place of Incorporation Attributable equity interest % Authorized capital Organic Agricultural (Samoa) Co., Ltd. Samoa 100 USD 1,000,000 Organic Agricultural Company Limited (Hong Kong) Hong Kong 100 HKD 10,000 Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited China 100 0 Heilongjiang Yuxinqi Agricultural Technology Development Company Limited China 100 0 Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative China 51 0 Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ from those estimates. One significant item subject to such estimates and assumptions is the inventory valuation allowance. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. Cash and cash equivalents Cash consists of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. All highly liquid investments with original stated maturities of three months or less are classified as cash and cash equivalents. The Company's cash and cash equivalents consist of cash on hand and cash in bank, as of December 31, 2019 and March 31, 2019. Revenue recognition Effective April 1, 2018, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products and contracts by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that economic benefits will flow to the entity, and specific criteria have been met for each of the Company's activities as described below. The Company sells paddy and selenium-enriched paddy products, rice and other agricultural products. All revenue is recognized when it is both earned and realized. The Company's policy is to recognize the sale when the products, ownership and risk of loss have transferred to the purchasers, and collection of the sales proceeds is reasonably assured, all of which generally occur when the customer receives the products. Given the nature of this revenue source of the Company's business and the applicable rules guiding revenue recognition, the revenue recognition practices for the sale do not contain estimates that materially affect results of operations nor does the Company have any policy for return of products. Fair Value Measurements The Company applies the provisions of FASB ASC 820, Fair Value Measurements Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices, other than those in Level 1, in markets that are not active or for similar assets and liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). There were no transfers between level 1, level 2 or level 3 measurements during the three and nine months ended December 31, 2019 and 2018. Financial assets and liabilities of the Company primarily consists of cash, account receivables, prepaid expenses, inventories, other receivables, right of use asset, accounts payable and accrued liabilities, customer deposits, due to related parties, and other payables. As at December 31, 2019 and March 31, 2019, the carrying values of these financial instruments approximated their fair values due to the short-term nature of these instruments. Functional currency and foreign currency translation An entity's functional currency is the currency of the primary economic environment in which it operates. Normally that is the currency of the environment in which the entity primarily generates and expends cash. Management's judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. The functional currency of the Company is the Chinese Renminbi ("RMB'), except the functional currency of Organic Agricultural HK is the Hong Kong Dollar ("HKD"), and the functional currency of Organic Agricultural Samoa and Organic Agricultural is the United States dollar ("US Dollars" "USD" or "$"). The reporting currency of these consolidated financial statements is in US Dollars. The financial statements of the Company, which are prepared using the RMB and the HKD, are translated into the Company's reporting currency, the US Dollar. Assets and liabilities are translated using the exchange rate at each reporting period end date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders' equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income or loss. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Foreign currency exchange gains and losses resulting from these transactions are included in operations. The exchange rates used for foreign currency translation are as follows: For the nine months ended December 31, March 31, 2019 2018 2019 (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) Assets and liabilities period end exchange rate 6.9680/7.7876 6.8776/7.8317 6.7111/7.8493 Revenue and expenses period average 6.9612/7.8315 6.7008/7.8408 N/A For the three months ended December 31, March 31, 2019 2018 2019 (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) Assets and liabilities period end exchange rate 6.9680/7.7876 6.8776/7.8317 6.7111/7.8493 Revenue and expenses period average 7.0435/7.8251 6.9162/7.8293 N/A Income taxes The Company follows FASB ASC Topic 740, Income Taxes ASC 740-10-30 requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under ASC 740-10-30, tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Under ASC 740-10-40, previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or the deferred tax asset valuation allowance. Lvxin products sales and services have been exempt from enterprise income tax. According to the "PRC Income Tax Law" Article 27 (1), income from agricultural, forestry, animal husbandry and the fisheries industries shall be exempt from business tax. According to the "PRC Income Tax Law", Tianci Liantian and Yuxinqi are subject to a 25% standard enterprise income tax in the PRC. Earnings (loss) per share The Company computes earnings (loss) Earnings Per Share Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of contracts to issue ordinary common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The computation of diluted EPS includes the estimated impact of the exercise of contracts to purchase common stock using the treasury stock method and the potential common shares associated with convertible debt using the if-converted method. Potential common shares that have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) are excluded from the calculation of diluted EPS. Share-Based Compensation The Company follows the provisions of FASB ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the award and recognized over its vesting period. No equity instruments were granted during the nine months ended December 31, 2019 and no compensation expense is required to be recognized under provisions of ASC 718 with respect to employees. During the nine months ended December 31, 2018, specifically on June 13, 2018, the Company granted a total of 290,000 shares with a fair value on the grant date of $1.30 per share to 8 employees, and $377,000 compensation expense was recognized under the provisions of ASC 718. These shares were fully vested when issued. Segment Information and Geographic Data The Company is operating in one segment in accordance with the accounting guidance in FASB ASC Topic 280, Segment Reporting Concentration of Credit Risk The Company maintains cash balances in three banks in China. In China, the insurance coverage of each bank is RMB500,000 (approximately USD$75,000). As of December 31, 2019, the Company had total balances of RMB1,552,881 (approximately USD$233,000) that exceeded the insurance amounts. As of December 31, 2019 and March 31, 2019, the Company has customer deposits of $101,153 and $164,362, respectively. As of December 31, 2019, Shouhang Commerce and Trade represented 87.1% of total customer deposits. As of March 31, 2019, Shouhang Commerce and Trade represented 76.2% of total customer deposits. During the nine months ended December 31, 2019, major customers Li Jiaxu, Zhao Shihai, Huiye Group, Jiufu Zhenyuan and Sun Rongmao generated 40%, 34%, 10%, 5% and 5% of revenue, respectively. As of December 31, 2019 and September 30, 2019, the Company has customer deposits of $101,153 and $104,046, respectively. As of December 31, 2019, Shouhang Commerce and Trade represented 87.1% of total customer deposits. As of September 30, 2019, Shouhang Commerce and Trade represented 83.4% of total customer deposits. During the three months ended December 31, 2019, major customers Li Jiaxu, Zhao Shihai and Huiye Group generated 34%, 42% and 13% of revenue, respectively. Recently Adopted Accounting Standards Revenue In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendment in this update affects entities with transactions included within the scope of Topic 606, The scope of that Topic includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity's ordinary activities) in exchange for consideration. The amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, the amendments in ASU 2016-10 provide more detailed guidance, including additional implementation guidance and examples in the following key areas: 1) identifying performance obligations and 2) licenses of intellectual property. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients ("ASU 2016-12"). The amendments do not change the core principles of the standard, but clarify the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration and certain transition matters. This update becomes effective concurrently with ASU No. 2014-09. The Company adopted ASU 2016-12 effective April 1, 2018. There was no impact on the Company's financial statements as a result of adopting Topic 606 for the three and nine months ended December 31, 2019 and 2018. Leases. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides an additional, optional transition method related to implementing the new leases standard. ASU 2018-11 provides that companies can initially apply the new lease standard at adoption and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted the guidance as of April 1, 2019, there is no cumulative-effect adjustment to the Company's opening balance of retained earnings in the period of adoption. See Note 9 - Leases for further details. We do not believe any recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the condensed consolidated financial position, statements of operations and cash flows. |
Prepaid Expenses
Prepaid Expenses | 9 Months Ended |
Dec. 31, 2019 | |
Prepaid Expenses [Abstract] | |
PREPAID EXPENSES | NOTE 3. PREPAID EXPENSES Prepaid expenses include prepaid paddy planting production materials, prepayment of rice processing charges, and prepayment for products to be purchased. As of December 31, 2019 and March 31, 2019, prepayments and deferred expenses were $46,194 and $121,257, respectively. |
Long-Term Lease Prepayments
Long-Term Lease Prepayments | 9 Months Ended |
Dec. 31, 2019 | |
Contractors [Abstract] | |
LONG-TERM LEASE PREPAYMENTS | NOTE 4. LONG-TERM LEASE PREPAYMENTS Long-term lease prepayments include land rent prepayment over one year. As of March 31, 2019, long-term lease prepayments were $273,275. As a result of the adoption of the new accounting standards applicable to leases, long-term lease prepayments were reclassified to offset the lease liability as of December 31, 2019. |
Inventories
Inventories | 9 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5. INVENTORIES Inventories are generally kept for a short period of time. Inventories are comprised of growing costs, harvesting costs, raw materials, and finished goods (including harvesting agricultural produce paddy and processed rice and other agricultural products). Growing costs Harvest costs Raw materials Agricultural produce paddy Most agricultural costs, including amortization of capitalized agricultural costs and certain other costs, such as indirect labor including farm supervision and management and irrigation that benefit multiple crops, are allocated to crops on a per-kilogram basis. The cost of harvesting agricultural produce paddy includes all relevant expenditures incurred before and during the entire cultivation period and after harvesting, mainly including seed, fertilizer and other production materials, land rent, labor, and other related costs, subject to impairment if the cost of inventory exceeds net realizable value. Manufactured goods, rice and other products The Company values inventory on its balance sheet at the lower of cost or net realizable value. Based on recent sales experience, the Company determined that the net realizable value of its inventory was less than the costs incurred in producing the inventory. Therefore, an impairment charge was made as of March 31, 2019. At December 31, 2019 and March 31, 2019, inventories consisted of the following: December 31, March 31, 2019 2019 (Unaudited) Growing cost $ - $ 70,211 Selenium enriched paddy 568,459 396,800 Rice and other products 50,698 68,662 Packing and other materials 11,876 10,170 Total inventories at cost 631,033 545,843 Inventory-impairment - (29,439 ) Inventories, net $ 631,033 $ 516,404 For the nine months ended December 31, 2019, inventory-impairment of $28,354 has been reflected in cost of sales since the corresponding inventories have been sold. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 6. INCOME TAXES A reconciliation of loss before income taxes for domestic and foreign locations for the nine months ended December 31, 2019 and 2018 is as follows: For the nine months ended December 31, 2019 2018 (Unaudited) (Unaudited) United States $ (131,884 ) $ (87,486 ) Foreign (215,622 ) (686,092 ) (Loss) before income taxes $ (347,506 ) $ (773,578 ) For the three months ended December 31, 2019 2018 (Unaudited) (Unaudited) United States $ (58,029 ) $ (31,692 ) Foreign (13,448 ) (14,228 ) (Loss) before income taxes $ (71,477 ) $ (45,920 ) The difference between the U.S. federal statutory income tax rate and the Company's effective tax rate was as follows: December 31, December 31, 2019 2018 (Unaudited) (Unaudited) U.S. federal statutory income tax rate 21 % 21 % U.S. Valuation allowance (21 )% (21 )% Rates in PRC, net 25 % 25 % PRC Valuation allowance (25 )% (25 )% The Company's effective tax rate (0 )% (0 )% The Company did not recognize deferred tax assets since it is not likely to realize such deferred taxes. The deferred tax would apply to the Company in the U.S. and the companies, Yuxinqi and Tianci Liangtian, in China. As of December 31, 2019, Yuxinqi and Tianci Liangtian have total net operating loss carry forwards of $646,490 in the PRC that expire in 2024. Due to the uncertainty of utilizing these carry forwards, the Company provided a 100% allowance on all deferred tax assets of approximately $161,623 and $99,774 related to its operations in the PRC as of December 31, 2019 and March 31, 2019, respectively. The PRC valuation allowance has increased by approximately $65,000 and $161,000 for the nine months, and $27,000 and $4,000 for the three months, ended December 31, 2019 and 2018, respectively. The Company has incurred losses from its United States operations during all periods presented of approximately $337,000. The Company's United States operations consist solely of ownership of its foreign subsidiaries, and the losses arise from administration expenses. Accordingly, management provided a 100% valuation allowance of approximately $71,000 and $43,000 against the deferred tax assets related to the Company's United States operations as of December 31, 2019 and March 31, 2019, respectively, because the deferred tax benefits of the net operating loss carry forwards in the United States will not likely be utilized. The US valuation allowance has increased by approximately $28,000 and $18,000 for the nine months, and $12,000 and $7,000 for the three months, ended December 31, 2019 and 2018, respectively. The Company is subject to examination by the Internal Revenue Service (IRS) in the United States as well as by the taxing authorities in China, where the firm has significant business operations. The tax years under examination vary by jurisdiction. The table below presents the earliest tax year that remain subject to examination by major jurisdiction. The year as of U.S. Federal March 31, 2019 China January 31, 2015 United States The Company is subject to the U.S. corporation tax rate of 21%. Samoa Organic Agricultural (Samoa) Co., Ltd was incorporated in Samoa and, under the current laws of Samoa, it is not subject to income tax. China Tianci Liantian and Yuxinqi are subject to a 25% standard enterprise income tax in the PRC. There was no provision for income taxes for the three and nine months ended December 31, 2019 and 2018. Lvxin products sales and services are exempt from enterprise income tax, according to the "PRC Income Tax Law" Article 27 (1), which states that income from agricultural, forestry, animal husbandries and the fisheries Industries shall be exempt from business income taxes. |
Other Payables
Other Payables | 9 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
OTHER PAYABLES | NOTE 7. OTHER PAYABLES Other payables consisted of the following as of the periods indicated: December 31, March 31, 2019 2019 (Unaudited) Xun Jianjun $ - $ 14,901 Advances for shares to be issued - 53,300 Others - 83 $ - $ 68,284 As of March 31, 2019, the Company had received an advance for 41,000 shares to be issued of $53,300. The shares were subsequently issued on June 21, 2019. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8. RELATED PARTY TRANSACTIONS Amounts due to related parties Amounts due to related parties consisted of the following as of the periods indicated: December 31, March 31, 2019 2019 (Unaudited) Hao Shuping $ 45,612 $ 47,489 Shen Zhenai 37,055 9,952 Lou Zhengui 31,793 34,866 Xun Jianjun 22,253 $ 136,713 $ 92,307 Hao Shuping is the main shareholder of the Company, Shen Zhenai is the President, Chairman of the Board, director and shareholder of the Company, and Xun Jianjun is the CEO and shareholder of the Company. These advances represent temporary borrowings for operating costs between the Company and management. They are non-interest bearing and due on demand. Lou Zhengui is the principal manager of Lvxin, also a minority shareholder of Lvxin and Organic Agriculture. The balance represents advances for expenses paid to suppliers by Lou Zhengui. The balance is non-interest bearing and due on demand. |
Right-of-Use Assets and Lease L
Right-of-Use Assets and Lease Liabilities | 9 Months Ended |
Dec. 31, 2019 | |
Right Of Use Assets And Lease Liabilities [Abstract] | |
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES | NOTE 9. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES On April 1, 2019, the Company adopted FASB ASC 842, "Leases" ("new lease standard"). The new lease standard was adopted using the optional transition method approach that allows for the cumulative effect adjustment to be recorded without restating prior periods. The Company has elected the practical expedient package related to the identification, classification and accounting for initial direct costs whereby prior conclusions do not have to be reassessed for leases that commenced before the effective date. As the Company will not reassess such conclusions, the Company has not adopted the practical expedient to use hindsight to determine the likelihood of whether a lease will be extended or terminated or whether a purchase option will be exercised. Operating lease In November 2017, Tianci Liangtian leased office space from November 20, 2017 to December 5, 2018 under an operating lease agreement (approximately 666 square meters). Under the terms of the lease, Tianci Liangtian paid approximately $1,592 in lease deposits and committed to make annual lease payments. In December 2018, Yuxingqi renewed the lease agreement. Under the terms, Yuxingqi committed to make annual lease payments of RMB290,000 (approximately US$42,000) for the period from December 6, 2018 to December 5, 2019. On December 20, 2019, Yuxingqi renewed the lease agreement. Under the terms, Yuxingqi committed to make annual lease payments of RMB290,000 (approximately US$42,000, including AVT tax) for the period from December 20, 2019 to December 19, 2020. RMB150,000 (approximately US$22,000) payment was paid on December 23, 2019. As of December 31, 2019, US$35,991 and US$18,955 was accounted as operating lease right-of-use assets and operating lease liabilities (current), respectively In April 2018, Lvxin leased office space of approximately 177 square meters under a one-year lease agreement. Lvxin paid approximately US$4,500 (RMB30,000) as rent. The office contained our administrative functions, sales, e-commerce operations and marketing functions. After April 2019, Lvxin did not renew this office lease agreement. The Company leases 1,228 acres of land for cultivating pursuant to more than 300 lease agreements with individual farmers. Some of the leases are paid annually, and some of the leases are paid in advance for periods from 2 to 22 years. These prepayments reduced the related lease liabilities. The Company accounts for the land rental costs as a cost of production of paddy. The Company's adoption of the new lease standard included new processes and controls regarding asset financing transactions, financial reporting and a system-related implementation required for the new lease standard. The impact of the adoption of the new lease standard included the recognition of right-of-use ("ROU") assets and lease liabilities. The adoption of the new lease standard resulted in additional net lease assets and net lease liabilities of approximately $2.2 million, respectively, as of April 1, 2019. For the three and nine months ended December 31, 2019, the amortization was $9,711 and $397,341, respectively. Operating leases are reflected on our balance sheet within ROU assets and the related current and non-current operating lease liabilities. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease agreement. ROU assets and liabilities are recognized at the commencement date, or the date on which the lessor makes the underlying asset available for use, based upon the present value of the lease payments over the respective lease term. Lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectation regarding the terms. As of December 31, 2019, the Company has the following amounts recorded on the Company's unaudited condensed consolidated balance sheet: As of December 31, 2019 (Unaudited) Assets Right-of-use asset(non-current) $ 2,107,807 Total $ 2,107,807 Liabilities Lease liability(current) $ 327,169 Lease liability(non-current) 1,500,402 Total $ 1,827,571 Office lease: Remaining Lease Term 1 year, renewal option Incremental borrowing rate 4.9% Land lease: Remaining Lease Term From 1 to 10 years, no renewal option Incremental borrowing rate 4.9% The components of lease expense were as follows: For the nine months ended December 31, 2019 (Unaudited) Amortization of ROU Asset Land lease $ 367,752 Office Lease 29,589 Interest expense - Total lease expense $ 397,341 Future annual minimum lease payments for non-cancellable operating leases are as follows: Operating Leases (Unaudited) From April 2020 to March 2021 $ 415,791 From April 2021 to March 2022 352,346 From April 2022 to March 2023 276,845 From April 2023 to March 2024 198,196 From April 2024 to March 2025 210,290 Thereafter 773,791 Total 2,227,259 Less: imputed interest 399,688 Total $ 1,827,571 Reconciliation to lease liabilities: Lease liabilities - current $ 327,169 Lease liabilities - long-term 1,500,402 Total Lease Liabilities $ 1,827,571 |
Contingencies
Contingencies | 9 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | NOTE 10. CONTINGENCIES Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. The Company was not subject to any material loss contingencies as of December 31, 2019 or March 31, 2019 and through the date of this report. |
Non-Controlling Interests
Non-Controlling Interests | 9 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTERESTS | NOTE 11. NON-CONTROLLING INTERESTS Lvxin is the Company's majority-owned subsidiary which is consolidated in the Company's financial statements with a non-controlling interest (NCI) recognized. The Company holds a 51% interest in Lvxin as of December 31, 2019 and March 31, 2019. As of December 31, 2019 and March 31, 2019, the NCI in the condensed consolidated balance sheet was $ 26,721 and $3,759, respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12. SUBSEQUENT EVENTS During the period from January1, 2020 to the date of filling this report, the Company received an advance of $30,000 for the sale of 20,000 shares to be issued. The Management of the Company determined that there were no other reportable subsequent events to be adjusted for and/or disclosed as of the date of filing this report. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Going concern | Going concern Management has determined there is substantial doubt about our ability to continue as a going concern as a result of our lack of significant revenues and recurring losses. If we are unable to generate significant revenue or secure additional financing, we may be required to cease or curtail our operations. Our financial statements do not include adjustments that might result from the outcome of this uncertainty. The Company's operations have been financed primarily by advances and loans from related parties and proceeds from sales of shares. Hao Shuping, Shen Zhenai and Xun Jianjun, the shareholders of Lvxin, have been the primary sources of financing for the operations of the entity and continue to provide support in the future if there is any need for capital. As of December 31,2019, the Company has a balance of 45,612, 37,055, 22,253 and 31,793, respectively, due to Hao Shuping, Shen Zhenai, Xun Jianjun and the Lou Zhengui, the shareholders of Lvxin. The Company has received $647,260 during the nine months ended December 31, 2019, and an additional $30,000 from January 1, 2020 to the date of filling this report, for the sale of shares. These funds provided sufficient working capital for the Company. Management intends to expand product offerings to include value-added products, both products based on rice and products based on other food stuffs, such as organic red beans and millet. The marketing personnel of the Company will endeavor to expand awareness of our brand, open new marketing channels, and educate the nation about the health benefits of selenium-enriched rice. In this manner, Management hopes to make sufficient operating cash inflow to support its future operations and development of the Company in addition to capital raised from sales of shares and shareholders' support based on needs. |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Item Regulation S-X, Rule 10-01(c) Interim Financial Statements, and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders' equity in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the three and nine months ended December 31, 2019 are not necessarily indicative of the results that can be expected for the year ending March 31, 2020. The Company's consolidated financial statements are expressed in U.S. Dollars and are presented in accordance with Accounting Principles Generally Accepted in the United States of America ("U.S. GAAP"). |
Principles of consolidation | Principles of consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements include the assets, liabilities, and net income or loss of these subsidiaries. The Company's subsidiaries are listed as follows: Name Place of Incorporation Attributable equity interest % Authorized capital Organic Agricultural (Samoa) Co., Ltd. Samoa 100 USD 1,000,000 Organic Agricultural Company Limited (Hong Kong) Hong Kong 100 HKD 10,000 Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited China 100 0 Heilongjiang Yuxinqi Agricultural Technology Development Company Limited China 100 0 Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative China 51 0 |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ from those estimates. One significant item subject to such estimates and assumptions is the inventory valuation allowance. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash consists of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. All highly liquid investments with original stated maturities of three months or less are classified as cash and cash equivalents. The Company's cash and cash equivalents consist of cash on hand and cash in bank, as of December 31, 2019 and March 31, 2019. |
Revenue recognition | Revenue recognition Effective April 1, 2018, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products and contracts by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that economic benefits will flow to the entity, and specific criteria have been met for each of the Company's activities as described below. The Company sells paddy and selenium-enriched paddy products, rice and other agricultural products. All revenue is recognized when it is both earned and realized. The Company's policy is to recognize the sale when the products, ownership and risk of loss have transferred to the purchasers, and collection of the sales proceeds is reasonably assured, all of which generally occur when the customer receives the products. Given the nature of this revenue source of the Company's business and the applicable rules guiding revenue recognition, the revenue recognition practices for the sale do not contain estimates that materially affect results of operations nor does the Company have any policy for return of products. |
Fair Value Measurements | Fair Value Measurements The Company applies the provisions of FASB ASC 820, Fair Value Measurements Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices, other than those in Level 1, in markets that are not active or for similar assets and liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). There were no transfers between level 1, level 2 or level 3 measurements during the three and nine months ended December 31, 2019 and 2018. Financial assets and liabilities of the Company primarily consists of cash, account receivables, prepaid expenses, inventories, other receivables, right of use asset, accounts payable and accrued liabilities, customer deposits, due to related parties, and other payables. As at December 31, 2019 and March 31, 2019, the carrying values of these financial instruments approximated their fair values due to the short-term nature of these instruments. |
Functional currency and foreign currency translation | Functional currency and foreign currency translation An entity's functional currency is the currency of the primary economic environment in which it operates. Normally that is the currency of the environment in which the entity primarily generates and expends cash. Management's judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. The functional currency of the Company is the Chinese Renminbi ("RMB'), except the functional currency of Organic Agricultural HK is the Hong Kong Dollar ("HKD"), and the functional currency of Organic Agricultural Samoa and Organic Agricultural is the United States dollar ("US Dollars" "USD" or "$"). The reporting currency of these consolidated financial statements is in US Dollars. The financial statements of the Company, which are prepared using the RMB and the HKD, are translated into the Company's reporting currency, the US Dollar. Assets and liabilities are translated using the exchange rate at each reporting period end date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders' equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income or loss. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Foreign currency exchange gains and losses resulting from these transactions are included in operations. The exchange rates used for foreign currency translation are as follows: For the nine months ended December 31, March 31, 2019 2018 2019 (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) Assets and liabilities period end exchange rate 6.9680/7.7876 6.8776/7.8317 6.7111/7.8493 Revenue and expenses period average 6.9612/7.8315 6.7008/7.8408 N/A For the three months ended December 31, March 31, 2019 2018 2019 (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) Assets and liabilities period end exchange rate 6.9680/7.7876 6.8776/7.8317 6.7111/7.8493 Revenue and expenses period average 7.0435/7.8251 6.9162/7.8293 N/A |
Income taxes | Income taxes The Company follows FASB ASC Topic 740, Income Taxes ASC 740-10-30 requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under ASC 740-10-30, tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Under ASC 740-10-40, previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or the deferred tax asset valuation allowance. Lvxin products sales and services have been exempt from enterprise income tax. According to the "PRC Income Tax Law" Article 27 (1), income from agricultural, forestry, animal husbandry and the fisheries industries shall be exempt from business tax. According to the "PRC Income Tax Law", Tianci Liantian and Yuxinqi are subject to a 25% standard enterprise income tax in the PRC. |
Earnings (loss) per share | Earnings (loss) per share The Company computes earnings (loss) Earnings Per Share Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of contracts to issue ordinary common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The computation of diluted EPS includes the estimated impact of the exercise of contracts to purchase common stock using the treasury stock method and the potential common shares associated with convertible debt using the if-converted method. Potential common shares that have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
Share-Based Compensation | Share-Based Compensation The Company follows the provisions of FASB ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the award and recognized over its vesting period. No equity instruments were granted during the nine months ended December 31, 2019 and no compensation expense is required to be recognized under provisions of ASC 718 with respect to employees. During the nine months ended December 31, 2018, specifically on June 13, 2018, the Company granted a total of 290,000 shares with a fair value on the grant date of $1.30 per share to 8 employees, and $377,000 compensation expense was recognized under the provisions of ASC 718. These shares were fully vested when issued. |
Segment Information and Geographic Data | Segment Information and Geographic Data The Company is operating in one segment in accordance with the accounting guidance in FASB ASC Topic 280, Segment Reporting |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash balances in three banks in China. In China, the insurance coverage of each bank is RMB500,000 (approximately USD$75,000). As of December 31, 2019, the Company had total balances of RMB1,552,881 (approximately USD$233,000) that exceeded the insurance amounts. As of December 31, 2019 and March 31, 2019, the Company has customer deposits of $101,153 and $164,362, respectively. As of December 31, 2019, Shouhang Commerce and Trade represented 87.1% of total customer deposits. As of March 31, 2019, Shouhang Commerce and Trade represented 76.2% of total customer deposits. During the nine months ended December 31, 2019, major customers Li Jiaxu, Zhao Shihai, Huiye Group, Jiufu Zhenyuan and Sun Rongmao generated 40%, 34%, 10%, 5% and 5% of revenue, respectively. As of December 31, 2019 and September 30, 2019, the Company has customer deposits of $101,153 and $104,046, respectively. As of December 31, 2019, Shouhang Commerce and Trade represented 87.1% of total customer deposits. As of September 30, 2019, Shouhang Commerce and Trade represented 83.4% of total customer deposits. During the three months ended December 31, 2019, major customers Li Jiaxu, Zhao Shihai and Huiye Group generated 34%, 42% and 13% of revenue, respectively. |
Recently issued accounting pronouncements | Recently Adopted Accounting Standards Revenue In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendment in this update affects entities with transactions included within the scope of Topic 606, The scope of that Topic includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity's ordinary activities) in exchange for consideration. The amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, the amendments in ASU 2016-10 provide more detailed guidance, including additional implementation guidance and examples in the following key areas: 1) identifying performance obligations and 2) licenses of intellectual property. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients ("ASU 2016-12"). The amendments do not change the core principles of the standard, but clarify the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration and certain transition matters. This update becomes effective concurrently with ASU No. 2014-09. The Company adopted ASU 2016-12 effective April 1, 2018. There was no impact on the Company's financial statements as a result of adopting Topic 606 for the three and nine months ended December 31, 2019 and 2018. Leases. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides an additional, optional transition method related to implementing the new leases standard. ASU 2018-11 provides that companies can initially apply the new lease standard at adoption and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted the guidance as of April 1, 2019, there is no cumulative-effect adjustment to the Company's opening balance of retained earnings in the period of adoption. See Note 9 - Leases for further details. We do not believe any recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the condensed consolidated financial position, statements of operations and cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of company's subsidiaries | Name Place of Incorporation Attributable equity interest % Authorized capital Organic Agricultural (Samoa) Co., Ltd. Samoa 100 USD 1,000,000 Organic Agricultural Company Limited (Hong Kong) Hong Kong 100 HKD 10,000 Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited China 100 0 Heilongjiang Yuxinqi Agricultural Technology Development Company Limited China 100 0 Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative China 51 0 |
Schedule of exchange rates used for foreign currency translation | For the nine months ended December 31, March 31, 2019 2018 2019 (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) Assets and liabilities period end exchange rate 6.9680/7.7876 6.8776/7.8317 6.7111/7.8493 Revenue and expenses period average 6.9612/7.8315 6.7008/7.8408 N/A For the three months ended December 31, March 31, 2019 2018 2019 (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) (USD to RMB/USD to HKD) Assets and liabilities period end exchange rate 6.9680/7.7876 6.8776/7.8317 6.7111/7.8493 Revenue and expenses period average 7.0435/7.8251 6.9162/7.8293 N/A |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, March 31, 2019 2019 (Unaudited) Growing cost $ - $ 70,211 Selenium enriched paddy 568,459 396,800 Rice and other products 50,698 68,662 Packing and other materials 11,876 10,170 Total inventories at cost 631,033 545,843 Inventory-impairment - (29,439 ) Inventories, net $ 631,033 $ 516,404 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income (loss) before income taxes | For the nine months ended December 31, 2019 2018 (Unaudited) (Unaudited) United States $ (131,884 ) $ (87,486 ) Foreign (215,622 ) (686,092 ) (Loss) before income taxes $ (347,506 ) $ (773,578 ) For the three months ended December 31, 2019 2018 (Unaudited) (Unaudited) United States $ (58,029 ) $ (31,692 ) Foreign (13,448 ) (14,228 ) (Loss) before income taxes $ (71,477 ) $ (45,920 ) |
Schedule of difference between the U.S. federal statutory income tax rate and the company's effective tax rate | December 31, December 31, 2019 2018 (Unaudited) (Unaudited) U.S. federal statutory income tax rate 21 % 21 % U.S. Valuation allowance (21 )% (21 )% Rates in PRC, net 25 % 25 % PRC Valuation allowance (25 )% (25 )% The Company's effective tax rate (0 )% (0 )% |
Schedule of earliest tax year that remain subject to examination by major jurisdiction | The year as of U.S. Federal March 31, 2019 China January 31, 2015 |
Other Payables (Tables)
Other Payables (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of other payables | December 31, March 31, 2019 2019 (Unaudited) Xun Jianjun $ - $ 14,901 Advances for shares to be issued - 53,300 Others - 83 $ - $ 68,284 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of amount due to related parties | December 31, March 31, 2019 2019 (Unaudited) Hao Shuping $ 45,612 $ 47,489 Shen Zhenai 37,055 9,952 Lou Zhengui 31,793 34,866 Xun Jianjun 22,253 $ 136,713 $ 92,307 |
Right-of-Use Assets and Lease_2
Right-of-Use Assets and Lease Liabilities (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Right Of Use Assets And Lease Liabilities [Abstract] | |
Schedule of Unaudited condensed consolidated balance sheet | As of December 31, 2019 (Unaudited) Assets Right-of-use asset(non-current) $ 2,107,807 Total $ 2,107,807 Liabilities Lease liability(current) $ 327,169 Lease liability(non-current) 1,500,402 Total $ 1,827,571 |
Schedule of lease term | Office lease: Remaining Lease Term 1 year, renewal option Incremental borrowing rate 4.9% Land lease: Remaining Lease Term From 1 to 10 years, no renewal option Incremental borrowing rate 4.9% |
Schedule of components of lease expense | For the nine months ended December 31, 2019 (Unaudited) Amortization of ROU Asset Land lease $ 367,752 Office Lease 29,589 Interest expense - Total lease expense $ 397,341 |
Schedule of Future annual minimum lease payments | Operating Leases (Unaudited) From April 2020 to March 2021 $ 415,791 From April 2021 to March 2022 352,346 From April 2022 to March 2023 276,845 From April 2023 to March 2024 198,196 From April 2024 to March 2025 210,290 Thereafter 773,791 Total 2,227,259 Less: imputed interest 399,688 Total $ 1,827,571 Reconciliation to lease liabilities: Lease liabilities - current $ 327,169 Lease liabilities - long-term 1,500,402 Total Lease Liabilities $ 1,827,571 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) | May 16, 2018$ / sharesshares | Mar. 31, 2017USD ($)shares | Jan. 01, 2018 | Mar. 31, 2017CNY (¥) | Feb. 09, 2012 |
Hao Shuping [Member] | Equity Transfer Agreement [Member] | |||||
Nature of Operations and Basis of Presentation (Textual) | |||||
Percentage of equity interest acquired | 51.00% | 51.00% | |||
Cash | $ | $ 305,472 | ||||
Number of share issue | shares | 152,736 | ||||
Value of share issue | $ | $ 152,736 | ||||
Hao Shuping [Member] | Equity Transfer Agreement [Member] | RMB [Member] | |||||
Nature of Operations and Basis of Presentation (Textual) | |||||
Cash | ¥ | ¥ 2,029,586 | ||||
Organic Agricultural Co., Ltd [Member] | |||||
Nature of Operations and Basis of Presentation (Textual) | |||||
Percentage of equity interest acquired | 48.80% | ||||
Common stock (in dollars per share) | $ / shares | $ 0.001 | ||||
Percentage of exchange outstanding share | 100.00% | ||||
Common stock issued | shares | 10,000,000 | ||||
Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited [Member] | Hao Shuping [Member] | Equity Transfer Agreement [Member] | |||||
Nature of Operations and Basis of Presentation (Textual) | |||||
Percentage of equity interest acquired | 51.00% | ||||
Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative [Member] | |||||
Nature of Operations and Basis of Presentation (Textual) | |||||
Percentage of ownership interest | 51.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Dec. 31, 2019shares | |
Organic Agricultural (Samoa) Co., Ltd. [Member] | |
Place of Incorporation | Samoa |
Attributable equity interest | 100.00% |
Authorized capital | 1,000,000 |
Organic Agricultural Company Limited [Member] | HKD | |
Place of Incorporation | Hong Kong |
Attributable equity interest | 100.00% |
Authorized capital | 10,000 |
Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited [Member] | |
Place of Incorporation | China |
Attributable equity interest | 100.00% |
Authorized capital | 0 |
Heilongjiang Yuxinqi Agricultural Technology Development Company Limited [Member] | |
Place of Incorporation | China |
Attributable equity interest | 100.00% |
Authorized capital | 0 |
Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative [Member] | |
Place of Incorporation | China |
Attributable equity interest | 51.00% |
Authorized capital | 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Assets and liabilities [Member] | |||||
Description of foreign currency translation | period end exchange rate | period end exchange rate | period end exchange rate | period end exchange rate | |
Assets and liabilities [Member] | RMB [Member] | |||||
Foreign currency translation | 6.9680 | 6.8776 | 6.9680 | 6.8776 | 6.7111 |
Assets and liabilities [Member] | HKD | |||||
Foreign currency translation | 7.7876 | 7.8317 | 7.7876 | 7.8317 | 7.8493 |
Revenue and expenses [Member] | |||||
Description of foreign currency translation | period average | period average | |||
Revenue and expenses [Member] | RMB [Member] | |||||
Foreign currency translation | 7.0435 | 6.9162 | 6.9612 | 6.7008 | |
Revenue and expenses [Member] | HKD | |||||
Foreign currency translation | 7.8251 | 7.8293 | 7.8315 | 7.8408 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) | Jun. 13, 2018USD ($)Number$ / sharesshares | Feb. 14, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018 | Dec. 31, 2019CNY (¥) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) |
Summary of Significant Accounting Policies (Textual) | ||||||||
Insurance coverage | $ 75,000 | $ 75,000 | ||||||
Balance that exceeded insurance amount | 233,000 | 233,000 | ||||||
Customer deposits | 101,153 | $ 101,153 | $ 104,046 | $ 164,362 | ||||
Income tax rate | 0.00% | 0.00% | ||||||
Amount due to related parties | $ 136,713 | $ 136,713 | $ 92,307 | |||||
Received from sale of shares | $ 647,260 | |||||||
Subsequent Event [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Received from sale of shares | $ 30,000 | |||||||
Shouhang Commerce and Trade [Member] | Customer deposits [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Percentage of customer deposits | 87.10% | 87.10% | 87.10% | 83.40% | 76.20% | |||
RMB [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Insurance coverage | ¥ | ¥ 500,000 | |||||||
Balance that exceeded insurance amount | ¥ | ¥ 1,552,881 | |||||||
Vendor [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Number of shares granted | shares | 290,000 | |||||||
Fair value | $ / shares | $ 1.3 | |||||||
Number of employees | Number | 8 | |||||||
Compensation expense | $ 377,000 | |||||||
Li Jiaxu [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Percentage of concentration risk | 34.00% | 40.00% | ||||||
Zhao Shihai [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Percentage of concentration risk | 42.00% | 34.00% | ||||||
Huiye Group [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Percentage of concentration risk | 13.00% | 10.00% | ||||||
Jiufu Zhenyuan [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Percentage of concentration risk | 5.00% | |||||||
Sun Rongmao [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Percentage of concentration risk | 5.00% | |||||||
Hao Shuping [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Amount due to related parties | $ 45,612 | $ 45,612 | $ 47,489 | |||||
Shen Zhenai [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Amount due to related parties | 37,055 | 37,055 | 9,952 | |||||
Xun Jianjun [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Amount due to related parties | 22,253 | 22,253 | ||||||
Lou Zhengui [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Amount due to related parties | $ 31,793 | $ 31,793 | $ 34,866 | |||||
PRC [Member] | ||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||
Income tax rate | 25.00% |
Prepaid Expenses (Details)
Prepaid Expenses (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Prepaid Expenses (Textual) | ||
Prepayments and deferred expenses | $ 46,194 | $ 121,257 |
Long-Term Lease Prepayments (De
Long-Term Lease Prepayments (Details) | Mar. 31, 2019USD ($) |
Long-Term Lease Prepayments (Textual) | |
Long-term lease prepayments | $ 273,275 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Total inventories at cost | $ 631,033 | $ 545,843 |
Inventory-impairment | 29,439 | |
Inventories, net | 631,033 | 516,404 |
Growing Cost [Member] | ||
Total inventories at cost | 70,211 | |
Selenium Enriched Paddy [Member] | ||
Total inventories at cost | 568,459 | 396,800 |
Rice And Other Products [Member] | ||
Total inventories at cost | 50,698 | 68,662 |
Packing And Other Materials [Member] | ||
Total inventories at cost | $ 11,876 | $ 10,170 |
Inventories (Details Textual)
Inventories (Details Textual) | 9 Months Ended |
Dec. 31, 2019USD ($) | |
Inventories (Textual) | |
Inventory-impairment | $ 28,354 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
United States | $ (58,029) | $ (31,692) | $ (131,884) | $ (87,486) |
Foreign | (13,448) | (14,228) | (215,622) | (686,092) |
(Loss) before income taxes | $ (71,477) | $ (45,920) | $ (347,506) | $ (773,578) |
Income Taxes (Details 1)
Income Taxes (Details 1) | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory income tax rate | 21.00% | 21.00% |
U.S. Valuation allowance | (21.00%) | (21.00%) |
Rates in PRC, net | 25.00% | 25.00% |
PRC Valuation allowance | (25.00%) | (25.00%) |
The Company's effective tax rate | 0.00% | 0.00% |
Income Taxes (Details 2)
Income Taxes (Details 2) | 9 Months Ended |
Dec. 31, 2019 | |
U.S. Federal [Member] | |
Tax examination date | Mar. 31, 2019 |
China [Member] | |
Tax examination date | Jan. 31, 2015 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Income Taxes (Textual) | |||||
Income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Enterprise income tax | 25.00% | 25.00% | 25.00% | 25.00% | |
Tianci Liantian and Yuxinqi [Member] | |||||
Income Taxes (Textual) | |||||
Total operating loss carry forwards | $ 646,490 | $ 646,490 | |||
United States [Member] | |||||
Income Taxes (Textual) | |||||
Valuation allowance | $ 71,000 | $ 71,000 | $ 43,000 | ||
Percentage of valuation allowance | 100.00% | 100.00% | 100.00% | 100.00% | |
Incurred loss | $ 337,000 | ||||
Valuation allowance increased | $ 12,000 | $ 7,000 | 28,000 | $ 18,000 | |
PRC [Member] | |||||
Income Taxes (Textual) | |||||
Allowance on deferred tax assets | $ 161,623 | $ 161,623 | $ 99,774 | ||
Percentage of allowance on all deferred tax assets | 100.00% | 100.00% | 100.00% | 100.00% | |
Expire date | Dec. 31, 2024 | ||||
Valuation allowance increased | $ 27,000 | $ 4,000 | $ 65,000 | $ 161,000 |
Other Payables (Details)
Other Payables (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Payables and Accruals [Abstract] | ||
Xun Jianjun | $ 14,901 | |
Advances for shares to be issued | 53,300 | |
Others | 83 | |
Other payables | $ 68,284 |
Other Payables (Details Textual
Other Payables (Details Textual) | Mar. 31, 2019USD ($)shares |
Other Payables (Textual) | |
Advances for shares to be issued (in shares) | shares | 41,000 |
Advances for shares to be issued | $ | $ 53,300 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Amount due to related parties | $ 136,713 | $ 92,307 |
Hao Shuping [Member] | ||
Amount due to related parties | 45,612 | 47,489 |
Shen Zhenai [Member] | ||
Amount due to related parties | 37,055 | 9,952 |
Lou Zhengui [Member] | ||
Amount due to related parties | 31,793 | 34,866 |
Xun Jianjun [Member] | ||
Amount due to related parties | $ 22,253 |
Right-of-Use Assets and Lease_3
Right-of-Use Assets and Lease Liabilities (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Assets | ||
Right-of-use asset(non-current) | $ 2,107,807 | |
Total ROU assets | 3,033,250 | 950,598 |
Liabilities | ||
Lease liability(non-current) | 1,500,402 | |
Total lease liabilities | 2,112,766 | $ 381,547 |
Parent [Member] | ||
Assets | ||
Right-of-use asset(non-current) | 2,107,807 | |
Total ROU assets | 2,107,807 | |
Liabilities | ||
Lease liability(current) | 327,169 | |
Lease liability(non-current) | 1,500,402 | |
Total lease liabilities | $ 1,827,571 |
Right-of-Use Assets and Lease_4
Right-of-Use Assets and Lease Liabilities (Details 1) | 9 Months Ended |
Dec. 31, 2019 | |
Office lease: [Member] | |
Remaining Lease Term | 1 year, renewal option |
Incremental borrowing rate | 4.90% |
Land lease: [Member] | |
Remaining Lease Term | From 1 to 10 years, no renewal option |
Incremental borrowing rate | 4.90% |
Right-of-Use Assets and Lease_5
Right-of-Use Assets and Lease Liabilities (Details 2) | 9 Months Ended |
Dec. 31, 2019USD ($) | |
Right Of Use Assets And Lease Liabilities [Abstract] | |
Amortization of ROU Asset | |
Land lease | 367,752 |
Office Lease | 29,589 |
Interest expense | |
Total lease expense | $ 397,341 |
Right-of-Use Assets and Lease_6
Right-of-Use Assets and Lease Liabilities (Details 3) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Total | $ 2,112,766 | $ 381,547 |
Reconciliation to lease liabilities: | ||
Lease liability(non-current) | 1,500,402 | |
Total Liabilities | 2,112,766 | $ 381,547 |
Operating Leases [Member] | ||
From April 2020 to March 2021 | 415,791 | |
From April 2021 to March 2022 | 352,346 | |
From April 2022 to March 2023 | 276,845 | |
From April 2023 to March 2024 | 198,196 | |
From April 2024 to March 2025 | 210,290 | |
Thereafter | 773,791 | |
Total | 2,227,259 | |
Less: imputed interest | 399,688 | |
Total | 1,827,571 | |
Reconciliation to lease liabilities: | ||
Lease liability(current) | 327,169 | |
Lease liability(non-current) | 1,500,402 | |
Total Liabilities | $ 1,827,571 |
Right-of-Use Assets and Lease_7
Right-of-Use Assets and Lease Liabilities (Details Textual) | 1 Months Ended | 9 Months Ended | ||||||||
Dec. 23, 2019USD ($) | Dec. 23, 2019CNY (¥) | Dec. 20, 2019USD ($) | Dec. 20, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Apr. 30, 2018USD ($)a | Apr. 30, 2018CNY (¥)a | Dec. 31, 2019USD ($) | Nov. 30, 2017USD ($)a | |
Right-of-Use Assets and Lease Liabilities (Textual) | ||||||||||
Area of lease office | a | 177 | 177 | ||||||||
Annual lease payments | $ 4,500 | |||||||||
Description of leases of cultivated land | The Company leases 1,228 acres of land for cultivating pursuant to more than 300 lease agreements with individual farmers. Some of the leases are paid annually, and some of the leases are paid in advance for periods from 2 to 22 years. | |||||||||
New lease standard, description | The adoption of the new lease standard resulted in additional net lease assets and net lease liabilities of approximately $2.2 million, respectively, as of April 1, 2019. For the three and nine months ended December 31, 2019, the amortization was $9,711 and $397,341, respectively. | |||||||||
Operating Lease Payments | $ 22,000 | |||||||||
Right of use oerating lease assets | $ 35,991 | |||||||||
Right of use operating lease liability | $ 18,955 | |||||||||
RMB [Member] | ||||||||||
Right-of-Use Assets and Lease Liabilities (Textual) | ||||||||||
Annual lease payments | ¥ | ¥ 30,000 | |||||||||
Operating Lease Payments | ¥ | ¥ 150,000 | |||||||||
Operating Lease Agreement [Member] | Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited [Member] | ||||||||||
Right-of-Use Assets and Lease Liabilities (Textual) | ||||||||||
Area of lease office | a | 666 | |||||||||
Lease deposits | $ 1,592 | |||||||||
Operating Lease Agreement [Member] | Heilongjiang Yuxinqi Agricultural Technology Development Company Limited [Member] | ||||||||||
Right-of-Use Assets and Lease Liabilities (Textual) | ||||||||||
Annual lease payments | $ 42,000 | $ 42,000 | ||||||||
Operating Lease Agreement [Member] | Heilongjiang Yuxinqi Agricultural Technology Development Company Limited [Member] | RMB [Member] | ||||||||||
Right-of-Use Assets and Lease Liabilities (Textual) | ||||||||||
Annual lease payments | ¥ | ¥ 290,000 | ¥ 290,000 |
Non-Controlling Interests (Deta
Non-Controlling Interests (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Non Controlling Interests (Textual) | ||
Non-controlling interest | $ 26,721 | $ 3,759 |
Lvxin [Member] | ||
Non Controlling Interests (Textual) | ||
Noncontrolling interest, ownership percentage by parent | 51.00% | 51.00% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | 1 Months Ended |
Jan. 01, 2020USD ($)shares | |
Subsequent Events (Textual) | |
Advance for shares to issued, shares | shares | 20,000 |
Advance for shares to issued, value | $ | $ 30,000 |