Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2018 | Feb. 02, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | China Green Agriculture, Inc. | |
Entity Central Index Key | 857,949 | |
Amendment Flag | false | |
Trading Symbol | CGA | |
Current Fiscal Year End Date | --06-30 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,019 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 39,546,945 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 117,546,683 | $ 150,805,639 |
Accounts receivable, net | 120,505,844 | 174,460,937 |
Inventories | 115,013,591 | 53,784,814 |
Prepaid expenses and other current assets | 3,173,718 | 2,945,247 |
Amount due from related parties | 0 | 235,551 |
Advances to suppliers, net | 40,777,894 | 25,194,463 |
Total Current Assets | 397,017,730 | 407,426,651 |
Plant, Property and Equipment, Net | 28,227,394 | 30,894,683 |
Other Assets | 267,539 | 294,550 |
Other Non-current Assets | 14,311,626 | 15,885,696 |
Intangible Assets, Net | 18,710,644 | 20,317,914 |
Goodwill | 7,863,605 | 8,166,467 |
Total Assets | 466,398,538 | 482,985,960 |
Current Liabilities | ||
Accounts payable | 13,312,634 | 27,128,921 |
Customer deposits | 6,862,214 | 7,251,967 |
Accrued expenses and other payables | 11,286,369 | 10,207,058 |
Amount due to related parties | 3,640,504 | 3,271,619 |
Taxes payable | 31,071,532 | 29,952,206 |
Short term loans | 4,362,000 | 4,726,300 |
Interest payable | 582,327 | 462,060 |
Derivative liability | 2,248 | 66,143 |
Total Current Liabilities | 71,119,828 | 83,066,274 |
Long-term Liabilities | ||
Convertible notes payable | 7,302,743 | 7,371,899 |
Total Liabilities | 78,422,571 | 90,438,173 |
Stockholders' Equity | ||
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, 39,546,945 and 38,896,945, shares issued and outstanding as of December 31, 2018 and June 30, 2018, respectively | 39,547 | 38,897 |
Additional paid-in capital | 129,706,886 | 129,337,035 |
Statutory reserve | 31,399,827 | 30,947,344 |
Retained earnings | 246,887,783 | 235,822,726 |
Accumulated other comprehensive income | (20,058,076) | (3,598,215) |
Total Stockholders' Equity | 387,975,967 | 392,547,787 |
Total Liabilities and Stockholders' Equity | $ 466,398,538 | $ 482,985,960 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 115,197,165 | 115,197,165 |
Common stock, shares issued | 39,546,945 | 38,896,945 |
Common stock, shares outstanding | 39,546,945 | 38,896,945 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sales | ||||
Net sales | $ 52,254,463 | $ 63,599,325 | $ 110,209,269 | $ 125,727,976 |
Cost of goods sold | ||||
Cost of goods sold | 40,010,238 | 45,097,113 | 81,495,404 | 88,282,480 |
Gross profit | 12,244,225 | 18,502,212 | 28,713,865 | 37,445,496 |
Operating expenses | ||||
Selling expenses | 8,069,103 | 7,668,468 | 11,489,530 | 12,822,665 |
General and administrative expenses | (99,632) | 902,883 | 2,209,728 | 7,817,685 |
Total operating expenses | 7,969,471 | 8,571,351 | 13,699,258 | 20,640,350 |
Income from operations | 4,274,754 | 9,930,861 | 15,014,607 | 16,805,146 |
Other income (expense) | ||||
Other income (expense) | (187,753) | (276,836) | (226,083) | (284,047) |
Discontinued VIE operation - Zhenbai | (330,966) | (330,966) | ||
Interest income | 95,957 | 130,248 | 223,341 | 218,162 |
Interest expense | (149,578) | (94,587) | (312,264) | (274,162) |
Total other income (expense) | (241,374) | (572,141) | (315,006) | (671,013) |
Income before income taxes | 4,033,380 | 9,358,720 | 14,699,601 | 16,134,133 |
Provision for income taxes | 1,527,645 | 1,530,938 | 3,182,061 | 3,253,593 |
Net income from continuing operations, net of tax | 2,505,735 | 7,827,782 | 11,517,540 | 12,880,540 |
Net income from discontinued operation, net of tax | (1,676) | 40,394 | ||
Net income, net of tax | 2,505,735 | 7,826,107 | 11,517,540 | 12,920,934 |
Other comprehensive income (loss) | ||||
Foreign currency translation gain (loss) | (472,069) | 8,256,738 | (16,459,861) | 8,496,956 |
Comprehensive income (loss) | $ 2,033,666 | $ 16,082,845 | $ (4,942,321) | $ 21,417,890 |
Basic weighted average shares outstanding | 39,546,945 | 38,551,264 | 39,546,945 | 38,551,264 |
Basic net earnings per share from continuing operations | $ 0.06 | $ 0.2 | $ 0.29 | $ 0.33 |
Basic net earnings per share from discontinued operations | $ 0 | $ 0 | ||
Diluted weighted average shares outstanding | 39,546,945 | 38,551,264 | 39,546,945 | 38,185,277 |
Diluted net earnings per share from continuing operations | $ 0.06 | $ 0.2 | $ 0.29 | $ 0.34 |
Diluted net earnings per share from discontinued operations | $ 0 | $ 0 | ||
Jinong | ||||
Sales | ||||
Net sales | $ 16,987,360 | $ 26,211,280 | $ 39,483,893 | $ 52,985,040 |
Cost of goods sold | ||||
Cost of goods sold | 8,994,882 | 13,265,827 | 20,198,054 | 26,378,583 |
Gufeng | ||||
Sales | ||||
Net sales | 22,355,690 | 24,447,721 | 39,828,941 | 42,669,787 |
Cost of goods sold | ||||
Cost of goods sold | 19,764,817 | 21,160,024 | 35,069,680 | 37,146,453 |
Yuxing | ||||
Sales | ||||
Net sales | 2,623,493 | 1,953,748 | 5,011,039 | 3,746,391 |
Cost of goods sold | ||||
Cost of goods sold | 2,166,566 | 1,536,238 | 4,213,729 | 2,928,791 |
VIEs - others | ||||
Sales | ||||
Net sales | 10,287,920 | 10,986,576 | 25,885,396 | 26,326,758 |
Cost of goods sold | ||||
Cost of goods sold | $ 9,083,973 | $ 9,135,024 | $ 22,013,941 | $ 21,828,653 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | ||
Net income | $ 11,517,540 | $ 12,880,541 |
Income from discontinued operations, net of income taxes | ||
Income from continuing operations, net of income taxes | ||
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 2,434,189 | 3,406,443 |
Gain (Loss) on disposal of plant, property and equipment | 4,415 | 15,318 |
Amortization of debt discount | 204,765 | 377,450 |
Issuance of common stock for consulting services | 370,500 | |
Change in fair value of derivative liability | (61,601) | (114,233) |
Changes in operating assets | ||
Accounts receivable | 47,607,489 | 19,963,077 |
Amount due from related parties | 227,400 | 1,436,875 |
Other current assets | 1,618,463 | 1,019,062 |
Inventories | (63,386,505) | (25,549,564) |
Advances to suppliers | (16,560,396) | 4,106,058 |
Other assets | (969,558) | 974,189 |
Changes in operating liabilities | ||
Accounts payable | (12,851,196) | 2,694,536 |
Customer deposits | (121,118) | (226,314) |
Tax payables | 1,157,226 | (554,210) |
Accrued expenses and other payables | 1,227,568 | 988,125 |
Interest payable | 137,757 | 142,283 |
Net cash provided by (used in) continuing operating activities | (27,443,062) | 21,559,636 |
Net cash provided by (used in) discontinued operating activities | 0 | (1,024,276) |
Net cash provided by (used in) operating activities | (27,443,062) | 20,535,360 |
Cash flows from investing activities | ||
Purchase of plant, property, and equipment | (57,195) | (11,758) |
Change in construction in process | 16,128 | (11,328) |
Net cash used in investing activities | (41,067) | (23,086) |
Cash flows from financing activities | ||
Proceeds from loans | 0 | 153,300 |
Repayment of loans | (189,508) | (1,678,603) |
Advance from related parties | 409,230 | 195,013 |
Net cash provided by (used in) financing activities | 219,722 | (1,330,290) |
Effect of exchange rate change on cash and cash equivalents | (5,994,548) | 3,184,627 |
Net increase in cash and cash equivalents | (33,258,955) | 22,366,611 |
Cash and cash equivalents, beginning balance | 150,805,639 | 123,050,548 |
Cash and cash equivalents, ending balance | 117,546,683 | 145,417,159 |
Supplement disclosure of cash flow information | ||
Interest expense paid | 105,733 | 206,368 |
Income taxes paid | $ 2,024,835 | $ 3,807,803 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [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 People’s Republic of China (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, Zhenbai, Wangtian, Xindeguo, Xinyulei, Xiangrong, and Fengnong may also collectively be referred to as “the sales VIEs” or “the sales VIE companies”. The Company’s corporate structure as of December 31, 2018, is set forth in the diagram below: |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2018 | |
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 of 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 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 could differ materially from those results. 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 Peoples Republic of China (“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 December 31 and June 30, 2018, were $117,546,683 and $150,805,639, respectively. The Company had $117,296,696 and $150,785,737 in cash in banks in China and had $249,987 and $19,902 in cash in two banks in the United States as of December 31 and June 30, 2018, respectively. Cash overdrafts as of a 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 The Company’s policy is to maintain reserves for potential credit losses on accounts receivable. Management regularly reviews the composition of accounts receivable and analyzes customer creditworthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves at each year-end. Accounts considered uncollectible are written off through a charge to the valuation allowance. As of December 31, 2018, and June 30, 2018, the Company had accounts receivable of $120,505,844 and $174,460,937, net of allowance for doubtful accounts of $17,699,871 and $24,551,796, respectively. 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. On December 31, 2018 and 2017, the Company had no reserve for obsolete goods. 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 an impairment of intangible assets as of December 31, 2018 and 2017 respectively. 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 December 31, 2018, and June 30, 2018, the Company had customer deposits of $6,862,214 and $7,251,967, respectively. Earnings per share Basic earnings per share are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are 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: Three Months Ended December 31, 2018 2017 Net Income from continuing operations for Basic Earnings Per Share 2,505,735 7,827,782 Net Income from discontinued operations for Basic Earnings Per Share $ 0 $ (1,676 ) Basic Weighted Average Number of Shares 39,546,945 38,511,264 Basic net earnings per share from continuing operations 0.06 0.20 Basic net earnings per share from discontinued operations $ 0.00 $ 0.00 Net Income from continuing operations for Diluted Earnings Per Share 7,827,782 Net Income from discontinued operations for Diluted Earnings Per Share $ 2,505,735 $ (1,676 ) Diluted Weighted Average Number of Shares 39,546,945 38,551,264 Diluted net earnings per share from continuing operations 0.06 0.20 Diluted net earnings per share from discontinued operations $ 0.00 $ 0.00 Six Months Ended December 31, 2018 2017 Net Income from continuing operations for Basic Earnings Per Share 11,517,540 12,880,540 Net Income from discontinued operation for Basic Earnings Per Share $ 0 $ 40,394 Basic Weighted Average Number of Shares 39,546,945 38,551,264 Basic net earnings per share from continuing operations 0.29 0.33 Basic net earnings per share from discontinued operations $ 0 $ 0.00 Net Income from continuing operations for Diluted Earnings Per Share 11,517,540 12,880,540 Net Income from discontinued operations for Diluted Earnings Per Share $ 0 $ 40,394 Diluted Weighted Average Number of Shares 39,546,945 38,551,264 Diluted net earnings per share from continuing operations 0.29 0.34 Diluted net earnings per share from discontinued operations $ 0 $ 0 Recent accounting pronouncements Revenue Recognition: Revenue from Contracts with Customers: Topic Disclosure of Going Concern Uncertainties Financial instrument Leases Stock-based Compensation Financial Instruments - Credit Losses: Statement of Cash Flows: Statement of Cash Flows: Business Combination Business Combinations (Topic 805): Clarifying the Definition of a Business Stock-based Compensation In May 2017, the FASB issued ASU No. 2017-09, “Compensation—Stock compensation (Topic 718): Scope of modification accounting” (“ASU 2017-09”). The purpose of the amendment is to clarify which changes to the terms or condition of a share-based payment award require an entity to apply modification accounting. For all entities that offer share-based payment awards, ASU 2017-09 are effective for interim and annual reporting periods beginning after December 15, 2017. The Company is currently assessing the impact of ASU 2017-09 on its condensed consolidated financial statements. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
Inventories
Inventories | 6 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 3 – INVENTORIES Inventories consisted of the following: December 31, June 30, 2018 2018 Raw materials $ 39,755,211 $ 13,154,465 Supplies and packing materials $ 486,032 $ 566,254 Work in progress $ 385,082 $ 417,130 Finished goods $ 74,387,266 $ 39,646,965 Total $ 115,013,591 $ 53,784,814 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 6 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT | NOTE 4 – PROPERTY, PLANT, AND EQUIPMENT Property, plant and equipment consisted of the following: December 31, June 30, 2018 2018 Building and improvements $ 38,824,105 $ 40,319,393 Auto 3,383,116 3,504,028 Machinery and equipment 18,098,079 18,765,192 Agriculture assets 740,026 768,528 Total property, plant, and equipment 61,045,325 63,357,141 Less: accumulated depreciation (32,817,931 ) (32,462,458 ) Total $ 28,227,394 $ 30,894,683 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 5 – INTANGIBLE ASSETS Intangible assets consisted of the following: December 31, June 30, 2018 2018 Land use rights, net $ 9,445,315 $ 9,930,420 Technology patent, net 3,219 3,570 Customer relationships, net 2,808,791 3,578,724 Non-compete agreement 535,539 659,500 Trademarks 5,917,780 6,145,700 Total $ 18,710,644 $ 20,317,914 LAND USE RIGHT On September 25, 2009, Yuxing was granted 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 $10,641,084). 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 $152,081). 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 $1,059,253). The intangible asset is being amortized over the grant period of 50 years. The Land Use Rights consisted of the following: December 31, June 30, 2018 2018 Land use rights $ 11,852,416 12,308,907 Less: accumulated amortization (2,407,101 ) (2,378,488 ) Total land use rights, net $ 9,445,315 9,930,419 TECHNOLOGY PATENT On August 16, 2001, Jinong was issued a technology patent related to a proprietary formula used in the production of humic acid. The fair value of the related intangible asset was determined to be the respective cost of RMB 5,875,068 (or $854,235) 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 of the acquired technology patent was estimated to be RMB9,200,000 (or $1,337,680) and is amortized over the remaining useful life of six years using the straight-line method. As of December 31, 2018, this technology patent is fully amortized. The technology know-how consisted of the following: December 31, June 30, 2018 2018 Technology know-how $ 2,196,693 $ 2,276,335 Less: accumulated amortization (2,196,693 ) (2,276,335 ) Total technology know-how, net $ - $ - CUSTOMER RELATIONSHIPS On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value of the acquired customer relationships was estimated to be RMB65, 000,000 (or $9,451,000) and is amortized over the remaining useful life of ten years. On June 30, 2016 and January 1, 2017, the Company acquired the sales VIE Companies. The fair value of the acquired customer relationships was estimated to be RMB16, 472,179 (or $2,395,055) and is amortized over the remaining useful life of seven to ten years. December 31, June 30, 2018 2018 Customer relationships $ 11,592,684 $ 12,039,169 Less: accumulated amortization (8,783,893 ) (8,460,445 ) Total customer relationships, net $ 2,808,791 $ 3,578,724 NON-COMPETE AGREEMENT On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value of the acquired non-compete agreement was estimated to be RMB1, 320,000 (or $191,928) 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 sales VIE Companies. The fair value of the acquired non-compete agreements was estimated to be RMB6, 150,683 (or $894,309) and is amortized over the remaining useful life of five years using the straight-line method. December 31, June 30, 2018 2018 Non-compete agreement $ 1,186,964 $ 1,232,680 Less: accumulated amortization (651,425 ) (573,180 ) Total non-compete agreement, net $ 535,539 $ 659,500 TRADEMARKS On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value of the acquired trademarks was estimated to be RMB40,700,000 (or $5,917,780) and is subject to an annual impairment test. AMORTIZATION EXPENSE Estimated amortization expenses of intangible assets for the next five twelve months periods ended December 31 are as follows: Twelve Months Ended on September 30, Expense ($) 2019 1,838,839 2020 1,306,324 2021 729,135 2022 563,663 2023 496,482 |
Other Non-Current Assets
Other Non-Current Assets | 6 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER NON-CURRENT ASSETS | NOTE 6 – OTHER NON-CURRENT ASSETS Other non-current assets mainly include advance payments related to leasing land for use by the Company. As of December 31, 2018, the balance of other non-current assets was $16,263,621, which was the lease fee advances for agriculture lands that the Company engaged in Shiquan County from 2018 to 2027. In March 2017, Jinong entered into a lease agreement for approximately 3,400 mu, and 2600-hectare agriculture lands in Shiquan County, Shaanxi Province. The lease was from April 2017 and was renewable for every ten-year period up to 2066. The aggregate leasing fee was approximately RMB 13 million per annum, The Company had made 10-year advances of leasing fee per lease terms. The Company has amortized $1 million as expenses for the six months ended December 31, 2018. Estimated amortization expenses of the lease advance payments for the next four twelve-month periods ended December 31 and thereafter are as follows: Twelve months ending December 31, 2019 $ 1,951,995 2020 $ 1,951,995 2021 $ 1,951,995 2022 $ 1,951,995 2023 and thereafter $ 8,455,641 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 6 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | NOTE 7 - ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables consisted of the following: December 31, June 30, 2018 2018 Payroll payable $ 25,925 $ 13,788 Welfare payable 149,274 155,023 Accrued expenses 6,172,604 5,368,348 Other payables 4,816,624 4,543,261 Other levy payable 121,942 126,638 Total $ 11,286,369 $ 10,207,058 |
Related Parties Transactions
Related Parties Transactions | 6 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES TRANSACTIONS | NOTE 8 - RELATED PARTIES TRANSACTIONS 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 RMB 25,500,000 (approximately $3,707,700). For the six months ended December 31, 2018 and 2017, Yuxing has sold approximately $198,115 and $181,201 products to 900LH.com. The amount due from 900LH.com to Yuxing was $0 and $235,551 as of December 31 and June 30, 2018, respectively. As of December 31, 2018, and June 30, 2018, the amount due to related parties was $3,640,504 and $3,271,619, respectively. As of December 31, 2018, and June 30, 2018, $1,017,800 and $1,057,000, 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 December 31, 2018, and June 30, 2018, the Company’s subsidiary, Jinong, owed 900LH.com $402,234 and $393,565, respectively. On June 29, 2018, Jinong renewed the office lease with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Tao Li, former Chairman and CEO of the Company, serves as Chairman of its board of directors. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provides for a four-year term effective as of July 1, 2018, with a monthly rent of RMB24,480 (approximately $3,559) |
Loan Payables
Loan Payables | 6 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
LOAN PAYABLES | NOTE 9- LOAN PAYABLES As of December 31, 2018, the short-term loan payables consisted of two loans which mature on dates ranging from May 21 through June 18, 2019, with interest rates ranging from 5.22% to 6.31%. Both loans are collateralized by Tianjuyuan’s land use right and building ownership right. No. Payee Loan period per agreement Interest Rate December 31, 2018 1 Bank of Beijing - Pinggu Branch May 22, 2018-May 21, 2019 5.22 % 1,454,000 2 Postal Saving Bank of China - Pinggu Branch June 19, 2018-June 18, 2019 6.31 % 2,908,000 Total $ 4,362,000 The interest expense from short-term loans was $312,264 and $274,162 for the six months ended December 31, 2018 and 2017, respectively. |
Convertible Notes Payable
Convertible Notes Payable | 6 Months Ended |
Dec. 31, 2018 | |
Convertible Notes Payable [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 10 – 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 ($7,415,400) 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 (in RMB) 1 Wangtian, Lishijie, Xindeguo, Xinyulei, Jinyangguang June 30, 2016 June 30, 2019 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 maturity 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 ($1,744,800) were tendered back to the Company. All outstanding balance of unpaid principal and accrued interest in the tendered convertible notes were forfeited. The Company determined that the fair value of the convertible note payable was RMB 50,225,192 ($7,302,743) and RMB 48,820,525 ($7,371,899) as of December 31, 2018 and June 30, 2018, 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 December 31, 2018, the accumulated amortization of this discount into accretion expenses was $1,126,814. |
Taxes Payable
Taxes Payable | 6 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
TAXES PAYABLE | NOTE 11 – 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 were 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 six-month period ended December 31, 2018 and 2017 of $ 1,356,998 and $1,845,926, respectively, which is mainly due to the operating income from Jinong. Gufeng is subject to a 25% EIT rate and thus it made provision for income taxes of $1,071,227 and $1,106,590 for the six months ended December 31, 2018 and 2017, respectively. Value-Added Tax Certain 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 Income Taxes and Related Payables December 31, June 30, 2018 2018 VAT provision $ (343,283 ) $ (449,140 ) Income tax payable 1,598,671 554,065 Other levies 805,609 836,747 Total $ 2,060,997 $ 941,672 The provision for income taxes consists of the following December 31, June 30, 2018 2018 Current tax - foreign $ 3,182,061 $ 6,841,592 Repatriation Tax - 29,010,535 Total $ 3,182,061 $ 35,852,127 Our effective tax rates were approximately 21.6% and 20.1% for the six months ended December 31, 2018 and 2017, 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 income and comprehensive income differ from the amounts computed by applying the US statutory income tax rate of 21% to income before income taxes for the three months ended December 31, 2018 and 2017 for the following reasons: December 31, 2018 Tax Rate Reconciliation China United States December 31, 2018 15% - 25% 21% Total Pretax income (loss) $ 15,663,575 (963,974 ) $ 14,699,601 Expected income tax expense (benefit) 3,915,894 25.0 % (202,435 ) 21.0 % 3,713,459 High-tech income benefits on Jinong (904,666 ) (5.8 )% - - (904,666 ) Losses from subsidiaries in which no benefit is recognized 170,833 1.1 % - - 170,833 Change in valuation allowance on deferred tax asset from US tax benefit - 202,435 (21.0 )% 202,435 Actual tax expense $ 3,182,061 20.3 % $ - - % $ 3,182,061 21.6 % China United States December 31, 2017 15% - 25% 34% Total Pretax income (loss) $ 16,805,296 $ (630,768 ) $ 16,174,528 Expected income tax expense (benefit) 4,201,324 25 % (214,461 ) 34 % 3,986,863 High-tech income benefits on Jinong (1,230,618 ) -7.3 % (1,230,618 )) Losses from subsidiaries in which no benefit is recognized 282,887 1.7 % 282,887 Change in valuation allowance on deferred tax asset from US tax benefit 0 214,461 -34 % 214,461 Actual tax expense $ 3,253,593 19.4 % $ 0 0.00 % $ 3,253,593 20.1 % |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 12 – STOCKHOLDERS’ EQUITY Common Stock In December 2018, 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. There was no share issuance of common stock during the three and six months ended December 31, 2017. As of December 31, and June 30, 2018, there were 39,546,945 and 38,896,945 shares of common stock issued and outstanding. 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 December 31, 2018, 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. |
Concentrations
Concentrations | 6 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 13 –CONCENTRATIONS 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 were three vendors from each of which the Company purchased more than 10% of its raw materials, with the total of 34.3% of its raw materials for the six months ended December 31, 2018. Total purchases from these three vendors amounted to $33,149,745 for the six-month period ended December 31, 2018. None of the vendors accounted for over 10% of the Company’s purchase of raw materials and supplies for the six months ended December 31, 2017. No customer accounted for over 10% of the Company’s sales for the six months ended December 31, 2018 and 2017. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 14 – SEGMENT REPORTING As of December 31, 2018, 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. Three Months Ended Three Months Ended Six Months Ended Six Months Ended Revenues from unaffiliated customers: 2018 2017 2018 2017 Jinong $ 16,987,360 $ 26,211,280 $ 39,483,893 $ 52,985,040 Gufeng 22,355,690 24,447,721 39,828,941 42,669,787 Yuxing 2,623,493 1,953,748 5,011,039 3,746,391 Sales VIEs 10,287,922 10,986,576 25,885,396 26,326,758 Consolidated $ 52,254,465 $ 63,599,325 $ 110,209,269 $ 125,727,976 Operating income: Jinong $ 2,171,448 $ 5,577,154 $ 9,099,538 $ 12,343,229 Gufeng 2,493,457 2,549,525 4,102,509 4,655,738 Yuxing (3,796,684 ) 222,275 (3,603,507 ) 397,748 Sales VIEs 3,748,752 2,014,662 6,380,051 39,203 Reconciling item (1) 0 (2 ) 0 0 Reconciling item (2) (342,219 ) (432,753 ) (963,984 ) (630,772 ) Consolidated $ 4,274,754 $ 9,930,861 $ 15,014,607 $ 16,805,146 Net income: Jinong $ 1,789,640 $ 4,719,159 $ 7,689,656 $ 10,460,249 Gufeng 1,731,121 1,727,764 2,851,465 3,216,831 Yuxing (3,796,526 ) 222,869 (3,603,348 ) 398,491 Sales VIEs 3,136,310 1,915,799 5,556,339 (239,204 ) Reconciling item (1) 8 2 10 3 Reconciling item (2) (342,218 ) (432,753 ) (963,984 ) (630,772 ) Reconciling item (3) (12,598 ) (325,058 ) (12,598 ) (325,058 ) Consolidated $ 2,505,735 $ 7,827,782 $ 11,517,540 $ 12,880,540 Depreciation and Amortization: Jinong $ 194,706 $ 422,383 $ 392,964 $ 1,276,126 Gufeng 529,305 552,299 1,065,924 1,100,057 Yuxing 299,900 315,282 604,719 627,801 Sales VIEs 183,777 210,482 370,583 430,405 Consolidated $ 1,207,689 $ 1,500,446 $ 2,434,189 $ 3,434,389 Interest expense: Jinong 68,317 71,447 137,758 142,283 Gufeng 81,384 101,645 174,506 206,368 Yuxing 0 0 0 0 Sales VIEs (123 ) (78,505 ) 0 (74,489 ) Consolidated $ 149,578 $ 94,587 $ 312,264 $ 274,162 Capital Expenditure: Jinong $ 456 $ 808 $ 3,492 $ 4,149 Gufeng 18,616 297 45,604 14,165 Yuxing 6,850 4,773 8,099 4,773 Sales VIEs 0 0 0 0 Consolidated $ 25,922 $ 5,878 $ 57,195 $ 23,086 As of December 31, June 30, 2018 2018 Identifiable assets: Jinong $ 191,790,465 $ 226,335,489 Gufeng 198,089,974 168,572,947 Yuxing 0 0 Sales VIEs 75,698,359 87,567,782 Reconciling item (1) 822,619 512,622 Reconciling item (2) (2,879 ) (2,879 ) Consolidated $ 466,398,538 $ 482,985,960 (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 adjustment for net gain on derivative liability on convertible bonds. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 – COMMITMENTS AND CONTINGENCIES On June 29, 2018, Jinong renewed an office lease with Kingtone Information. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provided for a four-year term effective as of July 1, 2018, with a monthly rent of $3,559 (approximately RMB 24,480). In February 2004, Tianjuyuan signed a fifty-year lease 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 $430 (RMB 2,958). Accordingly, the Company recorded an aggregate of $23,937 and $30,020 as rent expenses from these committed property leases for the six-month periods ended December 31, 2018 and 2017, respectively. The contingent rent expenses herein for the next five twelve-month periods ended December 31 are as follows: Years ending December 31, 2019 $ 47,874 2020 47,874 2021 47,874 2022 47,874 2023 47,874 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 16 – VARIABLE INTEREST ENTITIES In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack enough 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 most 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 December 31 and June 30, 2018: December 31, June 30, 2018 2018 ASSETS Current Assets Cash and cash equivalents $ 2,216,592 $ 982,312 Accounts receivable, net 19,385,523 38,295,505 Inventories 25,072,690 21,133,970 Other current assets 703,112 988,051 Related party receivable 0 (359,005 Advances to suppliers 4,182,891 848,458 Total Current Assets 51,560,808 61,889,291 Plant, Property and Equipment, Net 10,281,928 11,206,667 Other assets 218,249 226,654 Intangible Assets, Net 10,569,436 11,348,180 Goodwill 3,204,371 3,319,732 Total Assets $ 75,834,792 $ 87,990,524 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Short-term loan $ 0 $ 0 Accounts payable 11,903,980 25,584,614 Customer deposits 618,762 841,694 Accrued expenses and other payables 5,151,624 3,896,340 Amount due to related parties 41,805,103 43,339,286 Total Current Liabilities $ 59,479,469 $ 73,661,934 Long-term Loan 0 0 Total Liabilities $ 59,479,469 $ 73,661,934 Stockholders’ equity 16,355,323 14,328,590 Total Liabilities and Stockholders’ Equity 75,834,792 $ 87,990,524 Three Months Ended 2018 2017 Revenue $ 12,911,414 $ 13,304,643 Expenses 13,571,628 10,989,225 Net income $ (660,214 ) $ 2,136,994 Six Months Ended 2018 2017 Revenue $ 30,896,434 $ 31,077,318 Expenses 28,943,442 25,590,542 Net income $ 1,952,992 $ 199,680 |
Business Combinations
Business Combinations | 6 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | NOTE 17 – 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 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 into 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 ) |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
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 of 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 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 could differ materially from those results. |
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 Peoples Republic of China (“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 December 31 and June 30, 2018, were $117,546,683 and $150,805,639, respectively. The Company had $117,296,696 and $150,785,737 in cash in banks in China and had $249,987 and $19,902 in cash in two banks in the United States as of December 31 and June 30, 2018, respectively. Cash overdrafts as of a 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 The Company’s policy is to maintain reserves for potential credit losses on accounts receivable. Management regularly reviews the composition of accounts receivable and analyzes customer creditworthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves at each year-end. Accounts considered uncollectible are written off through a charge to the valuation allowance. As of December 31, 2018, and June 30, 2018, the Company had accounts receivable of $120,505,844 and $174,460,937, net of allowance for doubtful accounts of $17,699,871 and $24,551,796, respectively. |
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. On December 31, 2018 and 2017, the Company had no reserve for obsolete goods. |
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 an impairment of intangible assets as of December 31, 2018 and 2017 respectively. |
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 December 31, 2018, and June 30, 2018, the Company had customer deposits of $6,862,214 and $7,251,967, respectively. |
Earnings per share | Earnings per share Basic earnings per share are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are 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: Three Months Ended December 31, 2018 2017 Net Income from continuing operations for Basic Earnings Per Share 2,505,735 7,827,782 Net Income from discontinued operations for Basic Earnings Per Share $ 0 $ (1,676 ) Basic Weighted Average Number of Shares 39,546,945 38,511,264 Basic net earnings per share from continuing operations 0.06 0.20 Basic net earnings per share from discontinued operations $ 0.00 $ 0.00 Net Income from continuing operations for Diluted Earnings Per Share 7,827,782 Net Income from discontinued operations for Diluted Earnings Per Share $ 2,505,735 $ (1,676 ) Diluted Weighted Average Number of Shares 39,546,945 38,551,264 Diluted net earnings per share from continuing operations 0.06 0.20 Diluted net earnings per share from discontinued operations $ 0.00 $ 0.00 Six Months Ended December 31, 2018 2017 Net Income from continuing operations for Basic Earnings Per Share 11,517,540 12,880,540 Net Income from discontinued operation for Basic Earnings Per Share $ 0 $ 40,394 Basic Weighted Average Number of Shares 39,546,945 38,551,264 Basic net earnings per share from continuing operations 0.29 0.33 Basic net earnings per share from discontinued operations $ 0 $ 0.00 Net Income from continuing operations for Diluted Earnings Per Share 11,517,540 12,880,540 Net Income from discontinued operations for Diluted Earnings Per Share $ 0 $ 40,394 Diluted Weighted Average Number of Shares 39,546,945 38,551,264 Diluted net earnings per share from continuing operations 0.29 0.34 Diluted net earnings per share from discontinued operations $ 0 $ 0 |
Recent accounting pronouncements | Recent accounting pronouncements Revenue Recognition: Revenue from Contracts with Customers: Topic Disclosure of Going Concern Uncertainties Financial instrument Leases Stock-based Compensation Financial Instruments - Credit Losses: Statement of Cash Flows: Statement of Cash Flows: Business Combination Business Combinations (Topic 805): Clarifying the Definition of a Business Stock-based Compensation In May 2017, the FASB issued ASU No. 2017-09, “Compensation—Stock compensation (Topic 718): Scope of modification accounting” (“ASU 2017-09”). The purpose of the amendment is to clarify which changes to the terms or condition of a share-based payment award require an entity to apply modification accounting. For all entities that offer share-based payment awards, ASU 2017-09 are effective for interim and annual reporting periods beginning after December 15, 2017. The Company is currently assessing the impact of ASU 2017-09 on its condensed consolidated financial statements. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of components of basic and diluted earnings per share | Three Months Ended December 31, 2018 2017 Net Income from continuing operations for Basic Earnings Per Share 2,505,735 7,827,782 Net Income from discontinued operations for Basic Earnings Per Share $ 0 $ (1,676 ) Basic Weighted Average Number of Shares 39,546,945 38,511,264 Basic net earnings per share from continuing operations 0.06 0.20 Basic net earnings per share from discontinued operations $ 0.00 $ 0.00 Net Income from continuing operations for Diluted Earnings Per Share 7,827,782 Net Income from discontinued operations for Diluted Earnings Per Share $ 2,505,735 $ (1,676 ) Diluted Weighted Average Number of Shares 39,546,945 38,551,264 Diluted net earnings per share from continuing operations 0.06 0.20 Diluted net earnings per share from discontinued operations $ 0.00 $ 0.00 Six Months Ended December 31, 2018 2017 Net Income from continuing operations for Basic Earnings Per Share 11,517,540 12,880,540 Net Income from discontinued operation for Basic Earnings Per Share $ 0 $ 40,394 Basic Weighted Average Number of Shares 39,546,945 38,551,264 Basic net earnings per share from continuing operations 0.29 0.33 Basic net earnings per share from discontinued operations $ 0 $ 0.00 Net Income from continuing operations for Diluted Earnings Per Share 11,517,540 12,880,540 Net Income from discontinued operations for Diluted Earnings Per Share $ 0 $ 40,394 Diluted Weighted Average Number of Shares 39,546,945 38,551,264 Diluted net earnings per share from continuing operations 0.29 0.34 Diluted net earnings per share from discontinued operations $ 0 $ 0 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, June 30, 2018 2018 Raw materials $ 39,755,211 $ 13,154,465 Supplies and packing materials $ 486,032 $ 566,254 Work in progress $ 385,082 $ 417,130 Finished goods $ 74,387,266 $ 39,646,965 Total $ 115,013,591 $ 53,784,814 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | December 31, June 30, 2018 2018 Building and improvements $ 38,824,105 $ 40,319,393 Auto 3,383,116 3,504,028 Machinery and equipment 18,098,079 18,765,192 Agriculture assets 740,026 768,528 Total property, plant, and equipment 61,045,325 63,357,141 Less: accumulated depreciation (32,817,931 ) (32,462,458 ) Total $ 28,227,394 $ 30,894,683 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of impaired intangible assets | December 31, June 30, 2018 2018 Land use rights, net $ 9,445,315 $ 9,930,420 Technology patent, net 3,219 3,570 Customer relationships, net 2,808,791 3,578,724 Non-compete agreement 535,539 659,500 Trademarks 5,917,780 6,145,700 Total $ 18,710,644 $ 20,317,914 |
Schedule of finite-lived intangible assets, future amortization expense | Twelve Months Ended on September 30, Expense ($) 2019 1,838,839 2020 1,306,324 2021 729,135 2022 563,663 2023 496,482 |
Land Use Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of impaired intangible assets | December 31, June 30, 2018 2018 Land use rights $ 11,852,416 12,308,907 Less: accumulated amortization (2,407,101 ) (2,378,488 ) Total land use rights, net $ 9,445,315 9,930,419 |
Technology Patent [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of impaired intangible assets | December 31, June 30, 2018 2018 Technology know-how $ 2,196,693 $ 2,276,335 Less: accumulated amortization (2,196,693 ) (2,276,335 ) Total technology know-how, net $ - $ - |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of impaired intangible assets | December 31, June 30, 2018 2018 Customer relationships $ 11,592,684 $ 12,039,169 Less: accumulated amortization (8,783,893 ) (8,460,445 ) Total customer relationships, net $ 2,808,791 $ 3,578,724 |
Non-compete agreement [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of impaired intangible assets | December 31, June 30, 2018 2018 Non-compete agreement $ 1,186,964 $ 1,232,680 Less: accumulated amortization (651,425 ) (573,180 ) Total non-compete agreement, net $ 535,539 $ 659,500 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of estimated amortization expenses of the lease advance payments | Twelve months ending December 31, 2019 $ 1,951,995 2020 $ 1,951,995 2021 $ 1,951,995 2022 $ 1,951,995 2023 and thereafter $ 8,455,641 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other payables | December 31, June 30, 2018 2018 Payroll payable $ 25,925 $ 13,788 Welfare payable 149,274 155,023 Accrued expenses 6,172,604 5,368,348 Other payables 4,816,624 4,543,261 Other levy payable 121,942 126,638 Total $ 11,286,369 $ 10,207,058 |
Loan Payables (Tables)
Loan Payables (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of loan payables | No. Payee Loan period per agreement Interest Rate December 31, 2018 1 Bank of Beijing - Pinggu Branch May 22, 2018-May 21, 2019 5.22 % 1,454,000 2 Postal Saving Bank of China - Pinggu Branch June 19, 2018-June 18, 2019 6.31 % 2,908,000 Total $ 4,362,000 |
Convertible Notes Payable (Tabl
Convertible Notes Payable (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Convertible Notes Payable [Abstract] | |
Schedule of convertible notes payable | No. Related Acquisitions of Sales VIEs Issuance Date Maturity Date Notional Interest Rate Conversion Price Notional Amount (in RMB) 1 Wangtian, Lishijie, Xindeguo, Xinyulei, Jinyangguang June 30, 2016 June 30, 2019 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) | 6 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income taxes and related payables | December 31, June 30, 2018 2018 VAT provision $ (343,283 ) $ (449,140 ) Income tax payable 1,598,671 554,065 Other levies 805,609 836,747 Total $ 2,060,997 $ 941,672 |
Schedule of provision for income taxes | December 31, June 30, 2018 2018 Current tax - foreign $ 3,182,061 $ 6,841,592 Repatriation Tax - 29,010,535 Total $ 3,182,061 $ 35,852,127 |
Schedule of effective income tax rate reconciliation | China United States December 31, 2018 15% - 25% 21% Total Pretax income (loss) $ 15,663,575 (963,974 ) $ 14,699,601 Expected income tax expense (benefit) 3,915,894 25.0 % (202,435 ) 21.0 % 3,713,459 High-tech income benefits on Jinong (904,666 ) (5.8 )% - - (904,666 ) Losses from subsidiaries in which no benefit is recognized 170,833 1.1 % - - 170,833 Change in valuation allowance on deferred tax asset from US tax benefit - 202,435 (21.0 )% 202,435 Actual tax expense $ 3,182,061 20.3 % $ - - % $ 3,182,061 21.6 % China United States December 31, 2017 15% - 25% 34% Total Pretax income (loss) $ 16,805,296 $ (630,768 ) $ 16,174,528 Expected income tax expense (benefit) 4,201,324 25 % (214,461 ) 34 % 3,986,863 High-tech income benefits on Jinong (1,230,618 ) -7.3 % (1,230,618 )) Losses from subsidiaries in which no benefit is recognized 282,887 1.7 % 282,887 Change in valuation allowance on deferred tax asset from US tax benefit 0 214,461 -34 % 214,461 Actual tax expense $ 3,253,593 19.4 % $ 0 0.00 % $ 3,253,593 20.1 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Three Months Ended Three Months Ended Six Months Ended Six Months Ended Revenues from unaffiliated customers: 2018 2017 2018 2017 Jinong $ 16,987,360 $ 26,211,280 $ 39,483,893 $ 52,985,040 Gufeng 22,355,690 24,447,721 39,828,941 42,669,787 Yuxing 2,623,493 1,953,748 5,011,039 3,746,391 Sales VIEs 10,287,922 10,986,576 25,885,396 26,326,758 Consolidated $ 52,254,465 $ 63,599,325 $ 110,209,269 $ 125,727,976 Operating income: Jinong $ 2,171,448 $ 5,577,154 $ 9,099,538 $ 12,343,229 Gufeng 2,493,457 2,549,525 4,102,509 4,655,738 Yuxing (3,796,684 ) 222,275 (3,603,507 ) 397,748 Sales VIEs 3,748,752 2,014,662 6,380,051 39,203 Reconciling item (1) 0 (2 ) 0 0 Reconciling item (2) (342,219 ) (432,753 ) (963,984 ) (630,772 ) Consolidated $ 4,274,754 $ 9,930,861 $ 15,014,607 $ 16,805,146 Net income: Jinong $ 1,789,640 $ 4,719,159 $ 7,689,656 $ 10,460,249 Gufeng 1,731,121 1,727,764 2,851,465 3,216,831 Yuxing (3,796,526 ) 222,869 (3,603,348 ) 398,491 Sales VIEs 3,136,310 1,915,799 5,556,339 (239,204 ) Reconciling item (1) 8 2 10 3 Reconciling item (2) (342,218 ) (432,753 ) (963,984 ) (630,772 ) Reconciling item (3) (12,598 ) (325,058 ) (12,598 ) (325,058 ) Consolidated $ 2,505,735 $ 7,827,782 $ 11,517,540 $ 12,880,540 Depreciation and Amortization: Jinong $ 194,706 $ 422,383 $ 392,964 $ 1,276,126 Gufeng 529,305 552,299 1,065,924 1,100,057 Yuxing 299,900 315,282 604,719 627,801 Sales VIEs 183,777 210,482 370,583 430,405 Consolidated $ 1,207,689 $ 1,500,446 $ 2,434,189 $ 3,434,389 Interest expense: Jinong 68,317 71,447 137,758 142,283 Gufeng 81,384 101,645 174,506 206,368 Yuxing 0 0 0 0 Sales VIEs (123 ) (78,505 ) 0 (74,489 ) Consolidated $ 149,578 $ 94,587 $ 312,264 $ 274,162 Capital Expenditure: Jinong $ 456 $ 808 $ 3,492 $ 4,149 Gufeng 18,616 297 45,604 14,165 Yuxing 6,850 4,773 8,099 4,773 Sales VIEs 0 0 0 0 Consolidated $ 25,922 $ 5,878 $ 57,195 $ 23,086 As of December 31, June 30, 2018 2018 Identifiable assets: Jinong $ 191,790,465 $ 226,335,489 Gufeng 198,089,974 168,572,947 Yuxing 0 0 Sales VIEs 75,698,359 87,567,782 Reconciling item (1) 822,619 512,622 Reconciling item (2) (2,879 ) (2,879 ) Consolidated $ 466,398,538 $ 482,985,960 (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 adjustment for net gain on derivative liability on convertible bonds. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of payments for lease expenses | Years ending December 31, 2019 $ 47,874 2020 47,874 2021 47,874 2022 47,874 2023 47,874 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities [Abstract] | |
Schedule of VIEs consolidated financial statements | December 31, June 30, 2018 2018 ASSETS Current Assets Cash and cash equivalents $ 2,216,592 $ 982,312 Accounts receivable, net 19,385,523 38,295,505 Inventories 25,072,690 21,133,970 Other current assets 703,112 988,051 Related party receivable 0 (359,005 Advances to suppliers 4,182,891 848,458 Total Current Assets 51,560,808 61,889,291 Plant, Property and Equipment, Net 10,281,928 11,206,667 Other assets 218,249 226,654 Intangible Assets, Net 10,569,436 11,348,180 Goodwill 3,204,371 3,319,732 Total Assets $ 75,834,792 $ 87,990,524 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Short-term loan $ 0 $ 0 Accounts payable 11,903,980 25,584,614 Customer deposits 618,762 841,694 Accrued expenses and other payables 5,151,624 3,896,340 Amount due to related parties 41,805,103 43,339,286 Total Current Liabilities $ 59,479,469 $ 73,661,934 Long-term Loan 0 0 Total Liabilities $ 59,479,469 $ 73,661,934 Stockholders’ equity 16,355,323 14,328,590 Total Liabilities and Stockholders’ Equity 75,834,792 $ 87,990,524 Three Months Ended 2018 2017 Revenue $ 12,911,414 $ 13,304,643 Expenses 13,571,628 10,989,225 Net income $ (660,214 ) $ 2,136,994 Six Months Ended 2018 2017 Revenue $ 30,896,434 $ 31,077,318 Expenses 28,943,442 25,590,542 Net income $ 1,952,992 $ 199,680 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Summary of purchase price allocations at fair value | 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 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 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 |
Summary 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 ) |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||||
Net Income from continuing operations for Basic Earnings Per Share | $ 2,505,735 | $ 7,827,782 | $ 11,517,540 | $ 12,880,540 |
Net Income from discontinued operations for Basic Earnings Per Share | $ 0 | $ (1,676) | $ 0 | $ 40,394 |
Basic Weighted Average Number of Shares | 39,546,945 | 38,551,264 | 39,546,945 | 38,551,264 |
Basic net earnings per share from continuing operations | $ 0.06 | $ 0.2 | $ 0.29 | $ 0.33 |
Basic net earnings per share from discontinued operations | $ 0 | $ 0 | ||
Net Income from continuing operations for Diluted Earnings Per Share | $ 7,827,782 | $ 11,517,540 | $ 12,880,540 | |
Net Income from discontinued operations for Diluted Earnings Per Share | $ 2,505,735 | $ (1,676) | $ 0 | $ 40,394 |
Diluted Weighted Average Number of Shares | 39,546,945 | 38,551,264 | 39,546,945 | 38,185,277 |
Diluted net earnings per share from continuing operations | $ 0.06 | $ 0.2 | $ 0.29 | $ 0.34 |
Diluted net earnings per share from discontinued operations | $ 0 | $ 0 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) - USD ($) | Jun. 16, 2013 | Dec. 31, 2018 | Jun. 30, 2018 |
Basis of Presentation and Summary of Significant Accounting Policies (Textual) | |||
Aggregate cash in accounts and on hand | $ 117,546,683 | $ 150,805,639 | |
Accounts receivable | 120,505,844 | 174,460,937 | |
Allowance for doubtful accounts | 17,699,871 | 24,551,796 | |
Customer deposits | 6,862,214 | 7,251,967 | |
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. | ||
China Bank [Member] | |||
Basis of Presentation and Summary of Significant Accounting Policies (Textual) | |||
Deposits in banks | 117,296,696 | 150,785,737 | |
United States Banks [Member] | |||
Basis of Presentation and Summary of Significant Accounting Policies (Textual) | |||
Deposits in banks | $ 249,987 | $ 19,902 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 39,755,211 | $ 13,154,465 |
Supplies and packing materials | 486,032 | 566,254 |
Work in progress | 385,082 | 417,130 |
Finished goods | 74,387,266 | 39,646,965 |
Total | $ 115,013,591 | $ 53,784,814 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | $ 61,045,325 | $ 63,357,141 |
Less: accumulated depreciation | (32,817,931) | (32,462,458) |
Total | 28,227,394 | 30,894,683 |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 38,824,105 | 40,319,393 |
Auto [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 3,383,116 | 3,504,028 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 18,098,079 | 18,765,192 |
Agriculture assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | $ 740,026 | $ 768,528 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 18,710,644 | $ 20,317,914 |
Land use rights, net [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 9,445,315 | 9,930,420 |
Technology patent, net [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 3,219 | 3,570 |
Customer relationships, net [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 2,808,791 | 3,578,724 |
Non-compete agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 535,539 | 659,500 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 5,917,780 | $ 6,145,700 |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - Land Use Rights [Member] - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Land use rights | $ 11,852,416 | $ 12,308,907 |
Less: accumulated amortization | (2,407,101) | (2,378,488) |
Total land use rights, net | $ 9,445,315 | $ 9,930,419 |
Intangible Assets (Details 2)
Intangible Assets (Details 2) - Technology Patent [Member] - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Technology know-how | $ 2,196,693 | $ 2,276,335 |
Less: accumulated amortization | (2,196,693) | (2,276,335) |
Total technology know-how, net |
Intangible Assets (Details 3)
Intangible Assets (Details 3) - Customer Relationships [Member] - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Customer relationships | $ 11,592,684 | $ 12,039,169 |
Less: accumulated amortization | (8,783,893) | (8,460,445) |
Total customer relationships, net | $ 2,808,791 | $ 3,578,724 |
Intangible Assets (Details 4)
Intangible Assets (Details 4) - Non-Compete Agreement [Member] - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Non-compete agreement | $ 1,186,964 | $ 1,232,680 |
Less: accumulated amortization | (651,425) | (573,180) |
Total non-compete agreement, net | $ 535,539 | $ 659,500 |
Intangible Assets (Details 5)
Intangible Assets (Details 5) | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 1,838,839 |
2,020 | 1,306,324 |
2,021 | 729,135 |
2,022 | 563,663 |
2,023 | $ 496,482 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) | Jan. 01, 2017USD ($) | Jul. 02, 2010USD ($) | Sep. 25, 2009USD ($) | Aug. 13, 2003USD ($) | Aug. 16, 2001USD ($) | Jun. 30, 2016USD ($) | Jan. 01, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | Jul. 02, 2010CNY (¥) | Sep. 25, 2009CNY (¥) | Aug. 13, 2003CNY (¥) | Aug. 16, 2001CNY (¥) |
Land Use Rights [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Intangible assets land use right, description | Yuxing was granted 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. | 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. | ||||||||||
Fair value of intangible assets | $ | $ 10,641,084 | $ 152,081 | $ 1,059,253 | |||||||||
Amortization period of intangible assets | 50 years | 50 years | 50 years | |||||||||
Land Use Rights [Member] | RMB [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | ¥ | ¥ 73,184,895 | ¥ 1,045,950 | ¥ 7,285,099 | |||||||||
Non-Compete Agreement [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | $ | $ 894,309 | $ 191,928 | $ 894,309 | |||||||||
Amortization period of intangible assets | 5 years | 5 years | 5 years | |||||||||
Non-Compete Agreement [Member] | RMB [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | ¥ | ¥ 6,150,683 | ¥ 6,150,683 | ¥ 1,320,000 | |||||||||
Customer Relationships [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | $ | $ 2,395,055 | $ 9,451,000 | $ 2,395,055 | |||||||||
Amortization period of intangible assets | 10 years | |||||||||||
Amortization period of intangible assets, description | Seven to ten years. | Seven to ten years. | ||||||||||
Customer Relationships [Member] | RMB [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | ¥ | ¥ 16,472,179 | ¥ 16,472,179 | 65,000,000 | |||||||||
Technology Patent [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | $ | $ 1,337,680 | $ 854,235 | ||||||||||
Amortization period of intangible assets | 10 years | |||||||||||
Amortization method, description | Amortized over the remaining useful life of six years using the straight-line method. | |||||||||||
Technology Patent [Member] | RMB [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | ¥ | 9,200,000 | ¥ 5,875,068 | ||||||||||
Trademarks [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | $ | $ 5,917,780 | |||||||||||
Trademarks [Member] | RMB [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | ¥ | ¥ 40,700,000 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) | Dec. 31, 2018USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
2,019 | $ 1,951,995 |
2,020 | 1,951,995 |
2,021 | 1,951,995 |
2,022 | 1,951,995 |
2023 and thereafter | $ 8,455,641 |
Other Non-Current Assets (Det_2
Other Non-Current Assets (Details Textual) | 1 Months Ended | 6 Months Ended |
Mar. 31, 2017CNY (¥) | Dec. 31, 2018USD ($) | |
Other Non-Current Assets (Textual) | ||
Other non-current assets, description | The balance of other non-current assets was $16,263,621, which was the lease fee advances for agriculture lands that the Company engaged in Shiquan County from 2018 to 2027. | |
Jinong [Member] | ||
Other Non-Current Assets (Textual) | ||
Lease term | 10 years | |
Description of lease | A lease agreement for approximately 3,400 mu, and 2600-hectare agriculture lands in Shiquan County, Shaanxi Province. The lease was from April 2017 and was renewable for every ten-year period up to 2066. | |
Amortized expenses | $ | $ 1,000,000 | |
Jinong [Member] | RMB [Member] | ||
Other Non-Current Assets (Textual) | ||
Leasing fees | ¥ | ¥ 13,000,000 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Payables and Accruals [Abstract] | ||
Payroll payable | $ 25,925 | $ 13,788 |
Welfare payable | 149,274 | 155,023 |
Accrued expenses | 6,172,604 | 5,368,348 |
Other payables | 4,816,624 | 4,543,261 |
Other levy payable | 121,942 | 126,638 |
Total | $ 11,286,369 | $ 10,207,058 |
Related Parties Transactions (D
Related Parties Transactions (Details) | Jul. 02, 2018CNY (¥) | Jun. 29, 2018USD ($)ft² | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) |
Operating Leased Assets [Line Items] | |||||||
Amount due to related parties | $ 3,640,504 | $ 3,271,619 | |||||
Amount due from related parties | 0 | 235,551 | |||||
Kingtone Information Technology Co., Ltd. [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Ground lease | ft² | 612 | ||||||
Area of land | ft² | 6,558 | ||||||
Monthly rental expenses | $ 3,559 | ||||||
Effective lease term | 4 years | ||||||
Effective lease date | Jul. 1, 2018 | ||||||
Kingtone Information Technology Co., Ltd. [Member] | RMB [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Monthly rental expenses | ¥ | ¥ 24,480 | ||||||
Yuxing [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Amount due from related parties | 0 | 235,551 | |||||
Sale of products | 198,115 | $ 181,201 | |||||
Gufeng [Member] | Xi'an Techteam Science & Technology Industry (Group) Co. Ltd. [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Amount due to related parties | 1,017,800 | 1,057,000 | |||||
Jinong [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Amount due to related parties | $ 402,234 | $ 393,565 | |||||
Sales Agreement [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Sale of products | $ 3,707,700 | ||||||
Sales Agreement [Member] | RMB [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Sale of products | ¥ | ¥ 25,500,000 |
Loan Payables (Details)
Loan Payables (Details) | 6 Months Ended |
Dec. 31, 2018USD ($) | |
Short-term Debt [Line Items] | |
Short term loans payables | $ 4,362,000 |
Bank of Beijing - Pinggu Branch [Member] | |
Short-term Debt [Line Items] | |
Loan period per agreement, Start | May 22, 2018 |
Loan period per agreement, End | May 21, 2019 |
Loans payable, interest rates | 5.22% |
Short term loans payables | $ 1,454,000 |
Postal Saving Bank of China - Pinggu Branch [Member] | |
Short-term Debt [Line Items] | |
Loan period per agreement, Start | Jun. 19, 2018 |
Loan period per agreement, End | Jun. 18, 2019 |
Loans payable, interest rates | 6.31% |
Short term loans payables | $ 2,908,000 |
Loan Payables (Details Textual)
Loan Payables (Details Textual) - USD ($) | 6 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loan Payables (Textual) | ||
Interest expense | $ 312,264 | $ 274,162 |
Loans Payable [Member] | Maximum [Member] | ||
Loan Payables (Textual) | ||
Loans payable, interest rates | 6.31% | |
Loans payable, maturity date | Jun. 18, 2019 | |
Loans Payable [Member] | Minimum [Member] | ||
Loan Payables (Textual) | ||
Loans payable, interest rates | 5.22% | |
Loans payable, maturity date | May 21, 2019 |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details) - 6 months ended Dec. 31, 2018 | $ / shares | CNY (¥) |
Wangtian, Lishijie, Xindeguo, Xinyulei, Jinyangguang [Member] | ||
Related Party Transaction [Line Items] | ||
Issuance Date | Jun. 30, 2016 | |
Maturity Date | Jun. 30, 2019 | |
Notional Interest Rate | 3.00% | |
Conversion Price | $ / shares | $ 5 | |
Wangtian, Lishijie, Xindeguo, Xinyulei, Jinyangguang [Member] | RMB [Member] | ||
Related Party Transaction [Line Items] | ||
Notional Amount | ¥ | ¥ 39,000,000 | |
Fengnong, Xiangrong [Member] | ||
Related Party Transaction [Line Items] | ||
Issuance Date | Jan. 1, 2017 | |
Maturity Date | Dec. 31, 2019 | |
Notional Interest Rate | 3.00% | |
Conversion Price | $ / shares | $ 5 | |
Fengnong, Xiangrong [Member] | RMB [Member] | ||
Related Party Transaction [Line Items] | ||
Notional Amount | ¥ | ¥ 12,000,000 |
Convertible Notes Payable (De_2
Convertible Notes Payable (Details Textual) | 6 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2018CNY (¥) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | |
Convertible Notes Payable (Textual) | ||||||
Fair value of convertible notes payable | $ 7,302,743 | $ 7,371,899 | ||||
RMB [Member] | ||||||
Convertible Notes Payable (Textual) | ||||||
Fair value of convertible notes payable | ¥ | ¥ 50,225,192 | ¥ 48,820,525 | ||||
Jinong [Member] | ||||||
Convertible Notes Payable (Textual) | ||||||
Convertible notes payable, term | 3 years | |||||
Aggregate amount of convertible notes payable | $ 7,415,400 | |||||
Annual interest rate | 3.00% | |||||
Jinong [Member] | RMB [Member] | ||||||
Convertible Notes Payable (Textual) | ||||||
Aggregate amount of convertible notes payable | ¥ | ¥ 51,000,000 | |||||
Zhenbai [Member] | ||||||
Convertible Notes Payable (Textual) | ||||||
Aggregate amount of convertible notes payable | $ 1,744,800 | |||||
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. | |||||
Interest expenses | $ 1,126,814 | |||||
Zhenbai [Member] | RMB [Member] | ||||||
Convertible Notes Payable (Textual) | ||||||
Aggregate amount of convertible notes payable | ¥ | ¥ 12,000,000 |
Taxes Payable (Details)
Taxes Payable (Details) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
VAT provision | $ (343,283) | $ (449,140) |
Income tax payable | 1,598,671 | 554,065 |
Other levies | 805,609 | 836,747 |
Total | $ 2,060,997 | $ 941,672 |
Taxes Payable (Details 1)
Taxes Payable (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Current tax - foreign | $ 3,182,061 | $ 6,841,592 | |||
Repatriation Tax | 29,010,535 | ||||
Total | $ 1,527,645 | $ 1,530,938 | $ 3,182,061 | $ 3,253,593 | $ 35,852,127 |
Taxes Payable (Details 2)
Taxes Payable (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Taxes Payable [Line Items] | |||||
Pretax income (loss) | $ 4,033,380 | $ 9,358,720 | $ 14,699,601 | $ 16,134,133 | |
Expected income tax expense (benefit) | 3,713,459 | 3,986,863 | |||
High-tech income benefits on Jinong | (904,666) | (1,230,618) | |||
Losses from subsidiaries in which no benefit is recognized | 170,833 | 282,887 | |||
Change in valuation allowance on deferred tax asset from US tax benefit | 202,435 | 214,461 | |||
Actual tax expense | $ 1,527,645 | $ 1,530,938 | $ 3,182,061 | $ 3,253,593 | $ 35,852,127 |
Actual tax expense, Percentage | 21.60% | 20.10% | |||
China [Member] | |||||
Taxes Payable [Line Items] | |||||
Pretax income (loss) | $ 15,663,575 | $ 16,805,296 | |||
Expected income tax expense (benefit) | 3,915,894 | 4,201,324 | |||
High-tech income benefits on Jinong | (904,666) | (1,230,618) | |||
Losses from subsidiaries in which no benefit is recognized | 170,833 | 282,887 | |||
Change in valuation allowance on deferred tax asset from US tax benefit | 0 | ||||
Actual tax expense | $ 3,182,061 | $ 3,253,593 | |||
Expected income tax expense (benefit), Percentage | 25.00% | 25.00% | |||
High-tech income benefits on Jinong, Percentage | (5.80%) | (7.30%) | |||
Losses from subsidiaries in which no benefit is recognized, Percentage | 1.10% | 1.70% | |||
Change in valuation allowance on deferred tax asset from US tax benefit, Percentage | |||||
Actual tax expense, Percentage | 20.30% | 19.40% | |||
United States [Member] | |||||
Taxes Payable [Line Items] | |||||
Pretax income (loss) | $ (963,974) | $ (630,768) | |||
Expected income tax expense (benefit) | (202,435) | (214,461) | |||
High-tech income benefits on Jinong | |||||
Losses from subsidiaries in which no benefit is recognized | |||||
Change in valuation allowance on deferred tax asset from US tax benefit | 202,435 | 214,461 | |||
Actual tax expense | $ 0 | ||||
Expected income tax expense (benefit), Percentage | 21.00% | 34.00% | |||
High-tech income benefits on Jinong, Percentage | |||||
Losses from subsidiaries in which no benefit is recognized, Percentage | |||||
Change in valuation allowance on deferred tax asset from US tax benefit, Percentage | (21.00%) | (34.00%) | |||
Actual tax expense, Percentage | 0.00% |
Taxes Payable (Details Textual)
Taxes Payable (Details Textual) - USD ($) | Jan. 01, 2008 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 |
Taxes Payable (Textual) | ||||||
Income tax expense (benefit) | $ 1,527,645 | $ 1,530,938 | $ 3,182,061 | $ 3,253,593 | $ 35,852,127 | |
Effective income tax rate reconciliation, percentage | 21.60% | 20.10% | ||||
Effective income tax rate reconciliation, federal | 21.00% | 21.00% | ||||
Value added tax rate | 13.00% | |||||
periodic tax reduction, description | The two-year tax exemption and three-year 50% tax reduction tax holiday for production-oriented FIEs were eliminated. | |||||
Enterprise Income Tax [Member] | ||||||
Taxes Payable (Textual) | ||||||
New enterprise income tax rate | 25.00% | |||||
Existing enterprise income tax rate | 33.00% | |||||
Income tax rate reconciliation tax holidays | 50.00% | |||||
High tech income tax rate | 15.00% | |||||
Jinong [Member] | Enterprise Income Tax [Member] | ||||||
Taxes Payable (Textual) | ||||||
Income tax expense (benefit) | $ 1,356,998 | $ 1,845,926 | ||||
Gufeng [Member] | Enterprise Income Tax [Member] | ||||||
Taxes Payable (Textual) | ||||||
Income tax expense (benefit) | $ 1,071,227 | $ 1,106,590 | ||||
Effective income tax rate reconciliation, federal | 25.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Stockholders' Equity (Textual) | ||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | ||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||
Preferred stock, shares issued | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Preferred stock, 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. | |||
Aggregate issued shares of common stock | 650,000 | |||
Fair value of common stock | $ 370,500 | |||
Common stock, shares issued | 39,546,945 | 38,896,945 | ||
Common stock, shares outstanding | 39,546,945 | 38,896,945 |
Concentrations (Details)
Concentrations (Details) | 6 Months Ended | |
Dec. 31, 2018USD ($)Vendors | Dec. 31, 2017 | |
Supplier Concentration Risk [Member] | ||
Concentrations (Textual) | ||
Vendor concentration, description | None of the vendors accounted for over 10% of the Company's purchase of raw materials and supplies. | |
Customer Concentration Risk [Member] | ||
Concentrations (Textual) | ||
Customer concentration, description | No customer accounted for over 10% of the Company's sales. | No customer accounted for over 10% of the Company's sales. |
Three Vendors [Member] | Supplier Concentration Risk [Member] | ||
Concentrations (Textual) | ||
Concentration risk percentage | 34.30% | |
Vendor concentration, description | The Company purchased more than 10% of its raw materials. | |
Number of vendor | Vendors | 3 | |
Total purchase amount | $ | $ 33,149,745 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | ||
Schedule of segment reporting information, by segment | ||||||
Revenues from unaffiliated customers: | $ 52,254,463 | $ 63,599,325 | $ 110,209,269 | $ 125,727,976 | ||
Operating income: | 4,274,754 | 9,930,861 | 15,014,607 | 16,805,146 | ||
Net income: | 2,505,735 | 7,826,107 | 11,517,540 | 12,920,934 | ||
Depreciation and Amortization: | 1,207,689 | 1,500,446 | 2,434,189 | 3,406,443 | ||
Interest expense: | 149,578 | 94,587 | 312,264 | 274,162 | ||
Capital Expenditure: | 25,922 | 5,878 | 57,195 | 23,086 | ||
Identifiable assets: | 466,398,538 | 466,398,538 | $ 482,985,960 | |||
Sales VIEs [Member] | ||||||
Schedule of segment reporting information, by segment | ||||||
Revenues from unaffiliated customers: | 10,287,922 | 10,986,576 | 25,885,396 | 26,326,758 | ||
Operating income: | 3,748,752 | 2,014,662 | 6,380,051 | 39,203 | ||
Net income: | 3,136,310 | 1,915,799 | 5,556,339 | (239,204) | ||
Depreciation and Amortization: | 183,777 | 210,482 | 370,583 | 430,405 | ||
Interest expense: | (123) | (78,505) | 0 | (74,489) | ||
Capital Expenditure: | 0 | 0 | 0 | 0 | ||
Identifiable assets: | 75,834,792 | 75,834,792 | 87,990,524 | |||
Reconciling item (1) [Member] | ||||||
Schedule of segment reporting information, by segment | ||||||
Operating income: | [1] | 0 | (2) | 0 | 0 | |
Net income: | [1] | 8 | 2 | 10 | 3 | |
Identifiable assets: | [1] | 822,619 | 822,619 | 512,622 | ||
Reconciling item (2) [Member] | ||||||
Schedule of segment reporting information, by segment | ||||||
Operating income: | [2] | (342,219) | (432,753) | (963,984) | (630,772) | |
Net income: | [2] | (342,218) | (432,753) | (963,984) | (630,772) | |
Identifiable assets: | [2] | (2,879) | (2,879) | (2,879) | ||
Reconciling item (3) [Member] | ||||||
Schedule of segment reporting information, by segment | ||||||
Net income: | [3] | (12,598) | (325,058) | (12,598) | (325,058) | |
Jinong [Member] | ||||||
Schedule of segment reporting information, by segment | ||||||
Revenues from unaffiliated customers: | 16,987,360 | 26,211,280 | 39,483,893 | 52,985,040 | ||
Operating income: | 2,171,448 | 5,577,154 | 9,099,538 | 12,343,229 | ||
Net income: | 1,789,640 | 4,719,159 | 7,689,656 | 10,460,249 | ||
Depreciation and Amortization: | 194,706 | 422,383 | 392,964 | 1,276,126 | ||
Interest expense: | 68,317 | 71,447 | 137,758 | 142,283 | ||
Capital Expenditure: | 456 | 808 | 3,492 | 4,149 | ||
Identifiable assets: | 191,790,465 | 191,790,465 | 226,335,489 | |||
Gufeng [Member] | ||||||
Schedule of segment reporting information, by segment | ||||||
Revenues from unaffiliated customers: | 22,355,690 | 24,447,721 | 39,828,941 | 42,669,787 | ||
Operating income: | 2,493,457 | 2,549,525 | 4,102,509 | 4,655,738 | ||
Net income: | 1,731,121 | 1,727,764 | 2,851,465 | 3,216,831 | ||
Depreciation and Amortization: | 529,305 | 552,299 | 1,065,924 | 1,100,057 | ||
Interest expense: | 81,384 | 101,645 | 174,506 | 206,368 | ||
Capital Expenditure: | 18,616 | 297 | 45,604 | 14,165 | ||
Identifiable assets: | 198,089,974 | 198,089,974 | 168,572,947 | |||
Yuxing [Member] | ||||||
Schedule of segment reporting information, by segment | ||||||
Revenues from unaffiliated customers: | 2,623,493 | 1,953,748 | 5,011,039 | 3,746,391 | ||
Operating income: | (3,796,684) | 222,275 | (3,603,507) | 397,748 | ||
Net income: | (3,796,526) | 222,869 | (3,603,348) | 398,491 | ||
Depreciation and Amortization: | 299,900 | 315,282 | 604,719 | 627,801 | ||
Interest expense: | 0 | 0 | 0 | 0 | ||
Capital Expenditure: | 6,850 | $ 4,773 | 8,099 | $ 4,773 | ||
Identifiable assets: | $ 0 | $ 0 | $ 0 | |||
[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 adjustment for net gain on derivative liability on convertible bonds. |
Segment Reporting (Details Text
Segment Reporting (Details Textual) | 6 Months Ended |
Dec. 31, 2018Segments | |
Segment Reporting (Textual) | |
Number of operating segments | 4 |
Number of business segments | 4 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Dec. 31, 2018USD ($) |
Years ending December 31, | |
2,019 | $ 47,874 |
2,020 | 47,874 |
2,021 | 47,874 |
2,022 | 47,874 |
2,023 | $ 47,874 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) | Jul. 02, 2018USD ($) | Jul. 02, 2018CNY (¥) | Jun. 29, 2018ft² | Feb. 29, 2004USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Commitments and Contingencies (Textual) | ||||||
Monthly rent expenses | $ 23,937 | $ 30,020 | ||||
Kingtone Information [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Monthly rent expenses | $ 3,559 | |||||
Lease term | 4 years | 4 years | ||||
Description of lease | Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. | |||||
Pursuant to lease in square feet | ft² | 6,558 | |||||
Kingtone Information [Member] | RMB [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Monthly rent expenses | ¥ | ¥ 24,480 | |||||
Village committee [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Monthly rent expenses | $ 430 | |||||
Lease term, description | Tianjuyuan signed a fifty-year lease with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District. | |||||
Village committee [Member] | RMB [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Monthly rent expenses | $ 2,958 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Current Assets | ||||||
Cash and cash equivalents | $ 117,546,683 | $ 145,417,159 | $ 117,546,683 | $ 145,417,159 | $ 150,805,639 | $ 123,050,548 |
Accounts receivable, net | 120,505,844 | 120,505,844 | 174,460,937 | |||
Inventories | 115,013,591 | 115,013,591 | 53,784,814 | |||
Related party receivable | 0 | 0 | 235,551 | |||
Advances to suppliers | 40,777,894 | 40,777,894 | 25,194,463 | |||
Total Current Assets | 397,017,730 | 397,017,730 | 407,426,651 | |||
Plant, Property and Equipment, Net | 28,227,394 | 28,227,394 | 30,894,683 | |||
Other assets | 14,311,626 | 14,311,626 | 15,885,696 | |||
Intangible Assets, Net | 18,710,644 | 18,710,644 | 20,317,914 | |||
Goodwill | 7,863,605 | 7,863,605 | 8,166,467 | |||
Total Assets | 466,398,538 | 466,398,538 | 482,985,960 | |||
Current Liabilities | ||||||
Short-term loan | 4,362,000 | 4,362,000 | 4,726,300 | |||
Accounts payable | 13,312,634 | 13,312,634 | 27,128,921 | |||
Customer deposits | 6,862,214 | 6,862,214 | 7,251,967 | |||
Amount due to related parties | 3,640,504 | 3,640,504 | 3,271,619 | |||
Total Current Liabilities | 71,119,828 | 71,119,828 | 83,066,274 | |||
Total Liabilities | 78,422,571 | 78,422,571 | 90,438,173 | |||
Stockholders' equity | 387,975,967 | 387,975,967 | 392,547,787 | |||
Total Liabilities and Stockholders' Equity | 466,398,538 | 466,398,538 | 482,985,960 | |||
Revenue | 52,254,463 | 63,599,325 | 110,209,269 | 125,727,976 | ||
Expenses | 7,969,471 | 8,571,351 | 13,699,258 | 20,640,350 | ||
Net income | 2,505,735 | 7,826,107 | 11,517,540 | 12,920,934 | ||
Variable Interest Entities [Member] | ||||||
Current Assets | ||||||
Cash and cash equivalents | 2,216,592 | 2,216,592 | 982,312 | |||
Accounts receivable, net | 19,385,523 | 19,385,523 | 38,295,505 | |||
Inventories | 25,072,690 | 25,072,690 | 21,133,970 | |||
Other current assets | 703,112 | 703,112 | 988,051 | |||
Related party receivable | 0 | 0 | (359,005) | |||
Advances to suppliers | 4,182,891 | 4,182,891 | 848,458 | |||
Total Current Assets | 51,560,808 | 51,560,808 | 61,889,291 | |||
Plant, Property and Equipment, Net | 10,281,928 | 10,281,928 | 11,206,667 | |||
Other assets | 218,249 | 218,249 | 226,654 | |||
Intangible Assets, Net | 10,569,436 | 10,569,436 | 11,348,180 | |||
Goodwill | 3,204,371 | 3,204,371 | 3,319,732 | |||
Total Assets | 75,834,792 | 75,834,792 | 87,990,524 | |||
Current Liabilities | ||||||
Short-term loan | 0 | 0 | 0 | |||
Accounts payable | 11,903,980 | 11,903,980 | 25,584,614 | |||
Customer deposits | 618,762 | 618,762 | 841,694 | |||
Accrued expenses and other payables | 5,151,624 | 5,151,624 | 3,896,340 | |||
Amount due to related parties | 41,805,103 | 41,805,103 | 43,339,286 | |||
Total Current Liabilities | 59,479,469 | 59,479,469 | 73,661,934 | |||
Long-term Loan | 0 | 0 | 0 | |||
Total Liabilities | 59,479,469 | 59,479,469 | 73,661,934 | |||
Stockholders' equity | 16,355,323 | 16,355,323 | 14,328,590 | |||
Total Liabilities and Stockholders' Equity | 75,834,792 | 75,834,792 | $ 87,990,524 | |||
Revenue | 10,287,922 | 10,986,576 | 25,885,396 | 26,326,758 | ||
Expenses | 13,571,628 | 10,989,225 | 28,943,442 | 25,590,542 | ||
Net income | $ 3,136,310 | $ 1,915,799 | $ 5,556,339 | $ (239,204) |
Business Combinations (Details)
Business Combinations (Details) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 | Nov. 30, 2017 | Jan. 01, 2017 | Jun. 30, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 7,863,605 | $ 8,166,467 | |||
Total Assets | $ 466,398,538 | $ 482,985,960 | |||
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 | |||
Purchase price | 2,764,787 | ||||
Working Capital | 1,179,352 | 941,192 | |||
Customer Relationship | 684,727 | 522,028 | |||
Non-compete Agreement | 211,833 | $ 392,852 | |||
Total Assets | $ 2,614,401 |
Business Combinations (Details
Business Combinations (Details 1) - USD ($) | Nov. 30, 2017 | Jan. 01, 2017 | Jun. 30, 2016 |
Business Acquisition [Line Items] | |||
Cash | $ 1,201,888 | ||
Convertible notes | 1,559,350 | ||
Derivative liability | 3,549 | ||
Total Payback | $ 2,764,787 | ||
Variable Interest Entities [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 5,568,500 | ||
Convertible notes | 6,671,769 | ||
Derivative liability | 144,818 | ||
Total Payback | $ 12,385,087 | ||
Zhenbai [Member] | |||
Business Acquisition [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) |