Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Oct. 14, 2019 | Dec. 31, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | China Green Agriculture, Inc. | ||
Entity Central Index Key | 0000857949 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Common Stock, Shares Outstanding | 4,977,479 | ||
Entity Public Float | $ 13,424,734 | ||
Entity File Number | 001-34260 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Code | NV |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 72,259,804 | $ 150,805,639 |
Accounts receivable, net | 145,190,160 | 174,460,937 |
Inventories | 162,013,889 | 53,784,814 |
Prepaid expenses and other current assets | 2,776,370 | 2,945,247 |
Amount due from related parties | 0 | 235,551 |
Advances to suppliers, net | 32,713,817 | 25,194,463 |
Total Current Assets | 414,954,039 | 407,426,651 |
Plant, Property and Equipment, Net | 26,669,938 | 30,894,683 |
Other Assets | 267,907 | 294,550 |
Other Non-current Assets | 13,352,645 | 15,885,696 |
Intangible Assets, Net | 17,881,449 | 20,317,914 |
Goodwill | 7,874,421 | 8,166,467 |
Total Assets | 481,000,399 | 482,985,960 |
Current Liabilities | ||
Accounts payable | 19,004,548 | 27,128,921 |
Customer deposits | 6,514,619 | 7,251,967 |
Accrued expenses and other payables | 12,029,722 | 10,207,058 |
Amount due to related parties | 3,641,945 | 3,271,619 |
Taxes payable | 31,357,690 | 29,952,206 |
Short term loans | 3,640,000 | 4,726,300 |
Interest payable | 720,720 | 462,060 |
Derivative liability | 18,162 | 66,143 |
Total Current Liabilities | 76,927,406 | 83,066,274 |
Long-term Liabilities | ||
Convertible notes payable | 7,517,307 | 7,371,899 |
Total Liabilities | 84,444,713 | 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, 3,986,912 and 3,241,413 shares issued and outstanding as of June 30, 2019 and June 30, 2018, respectively | 3,985 | 3,241 |
Additional paid-in capital | 138,012,445 | 129,372,691 |
Statutory reserve | 31,237,891 | 30,947,344 |
Retained earnings | 247,122,574 | 235,822,726 |
Accumulated other comprehensive income | (19,821,211) | (3,598,215) |
Total Stockholders' Equity | 396,555,686 | 392,547,786 |
Total Liabilities and Stockholders' Equity | $ 481,000,399 | $ 482,985,960 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | 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 | 3,986,912 | 3,241,413 |
Common stock, shares outstanding | 3,986,912 | 3,241,413 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Sales | ||
Net sales | $ 294,320,803 | $ 287,053,530 |
Cost of goods sold | ||
Cost of goods sold | 229,678,123 | 212,944,597 |
Gross profit | 64,642,680 | 74,108,933 |
Operating expenses | ||
Selling expenses | 23,266,121 | 19,812,492 |
General and administrative expenses | 22,571,811 | 24,494,654 |
Total operating expenses | 45,837,932 | 44,307,146 |
Income from operations | 18,804,748 | 29,801,787 |
Other income (expense) | ||
Other income (expense) | (443,533) | (499,861) |
Discontinued VIE operation - Zhenbai | 0 | (331,995) |
Interest income | 321,645 | 502,730 |
Interest expense | (595,125) | (592,153) |
Total other income (expense) | (717,013) | (921,279) |
Income before income taxes | 18,087,735 | 28,880,508 |
Provision for income taxes | 6,497,340 | 35,852,127 |
Net (loss) income from continuing operations | 11,590,395 | (6,971,619) |
Net income from discontinued operations, net of tax | 0 | 40,394 |
Net (loss) income | 11,590,395 | (6,931,225) |
Other comprehensive income (loss) | ||
Foreign currency translation gain (loss) | (16,222,996) | 1,529,229 |
Comprehensive income (loss) | $ (4,632,601) | $ (5,401,996) |
Basic weighted average shares outstanding | 3,388,529 | 3,219,314 |
Basic net earnings per share - from continuing operations | $ 3.42 | $ (2.16) |
Basic net earnings per share - from discontinued operations | 0 | 0 |
Basic net earnings per share | $ 3.42 | $ (2.16) |
Diluted weighted average shares outstanding | 3,388,529 | 3,219,314 |
Diluted net earnings per share- from continuing operations | $ 3.42 | $ (2.16) |
Diluted net earnings per share - from discontinued operations | 0 | 0 |
Diluted net earnings per share | $ 3.42 | $ (2.16) |
VIEs - others | ||
Sales | ||
Net sales | $ 71,440,026 | $ 65,862,085 |
Cost of goods sold | ||
Cost of goods sold | 61,714,426 | 57,496,845 |
Jinong | ||
Sales | ||
Net sales | 76,494,490 | 97,722,842 |
Cost of goods sold | ||
Cost of goods sold | 38,962,752 | 48,209,038 |
Gufeng | ||
Sales | ||
Net sales | 136,285,236 | 112,983,573 |
Cost of goods sold | ||
Cost of goods sold | 120,369,401 | 98,485,737 |
Yuxing | ||
Sales | ||
Net sales | 10,101,051 | 10,485,030 |
Cost of goods sold | ||
Cost of goods sold | $ 8,631,544 | $ 8,752,977 |
Statements of Stockholders_ Equ
Statements of Stockholders’ Equity - USD ($) | Common Stock | Additional Paid In Capital | Statutory Reserve | Retained Earnings | Accumulated Other Comprehensive Income | Total |
Balance at Jun. 30, 2017 | $ 3,213 | $ 128,950,989 | $ 28,962,302 | $ 244,738,993 | $ (5,127,444) | $ 397,528,051 |
Balance, shares at Jun. 30, 2017 | 3,212,605 | |||||
Net income | $ 0 | $ 0 | 0 | (6,931,225) | (6,931,225) | |
Issuance of stock, shares | ||||||
Stock based compensation | $ 29 | $ 421,701 | 0 | 0 | 0 | 421,730 |
Stock based compensation, shares | 28,807 | |||||
Transfer to statutory reserve | $ 0 | 0 | 1,985,042 | (1,985,042) | 0 | 0 |
Other comprehensive income | 0 | 0 | 0 | 0 | 1,529,229 | 1,529,229 |
Balance at Jun. 30, 2018 | $ 3,242 | 129,372,690 | 30,947,344 | 235,822,726 | (3,598,215) | 392,547,786 |
Balance, shares at Jun. 30, 2018 | 3,241,413 | |||||
Net income | $ 0 | 0 | 0 | 11,590,395 | 11,590,395 | |
Issuance of stock | $ 689 | 8,269,311 | 0 | 0 | 0 | 8,270,000 |
Issuance of stock, shares | 689,167 | |||||
Shares issued for past services | $ 54 | 370,446 | 0 | 0 | 370,500 | |
Shares issued for past services, shares | 54,167 | |||||
1 for 12 reverse stock split | $ 2,166 | (2) | 0 | 0 | 0 | 0 |
1 for 12 reverse stock split, shares | 2 | |||||
Transfer to statutory reserve | $ 0 | 0 | 290,547 | (290,547) | 0 | 0 |
Other comprehensive income | 0 | 0 | 0 | 0 | (16,222,996) | (16,222,996) |
Balance at Jun. 30, 2019 | $ 3,987 | $ 138,012,445 | $ 31,237,891 | $ 247,122,574 | $ (19,821,211) | $ 396,555,686 |
Balance, shares at Jun. 30, 2019 | 3,986,912 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net income/(loss) | $ 11,590,395 | $ (6,931,225) |
Income from discontinued operating activities, net of income taxes | 40,394 | |
Income from continuing operating activities, net of income taxes | 11,590,395 | (6,971,619) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities | ||
Issuance of common stock and stock options for compensation | 130,000 | 421,730 |
Gain/loss on discontinuing sales VIE | 0 | 331,995 |
Depreciation and amortization | 4,920,779 | 6,200,506 |
Provision for losses on accounts receivable | 9,906,681 | 15,322,962 |
Gain (Loss) on disposal of property, plant and equipment | 4,525 | 66,482 |
Amortization of debt discount | 411,743 | 601,510 |
Change in fair value of derivative liability | (45,917) | (119,713) |
Changes in operating assets | ||
Accounts receivable | 13,277,343 | (50,114,067) |
Amount due from related parties | 228,629 | 724,456 |
Other current assets | 63,973 | 1,762,732 |
Inventories | (110,880,651) | 25,068,160 |
Advances to suppliers | 731,013 | 25,533,988 |
Other assets | 1,977,942 | 2,072,008 |
Changes in operating liabilities | ||
Accounts payable | (7,209,214) | 7,522,043 |
Customer deposits | (481,166) | 212,342 |
Tax payables | 1,448,673 | (1,794,827) |
Accrued expenses and other payables | 2,237,401 | 1,017,164 |
Interest payable | 277,003 | 290,638 |
Net cash provided by (used in) continuing operating activities | 28,148,489 | |
Net cash provided by (used in) discontinued operating activities | (10,952) | |
Net cash provided by (used in) operating activities | (71,410,847) | 28,137,537 |
Cash flows from investing activities | ||
Purchase of plant, property, and equipment | (63,610) | (41,114) |
Cash paid for acquisition, net | 0 | 0 |
Accrued expenses and other payables | 0 | 0 |
Change in construction in process | 16,215 | (14,359) |
Net cash provided by (used in) continuing investing activities | (47,395) | (55,473) |
Net cash provided by (used in) discontinued investing activities | 0 | (8,273) |
Net cash provided by (used in) investing activities | (47,395) | (63,746) |
Cash flows from financing activities | ||
Proceeds from the sale of common stock | 8,270,000 | 0 |
Proceeds from loans | 3,640,000 | 3,129,812 |
Repayment of loans | (4,557,280) | (6,179,300) |
Advance from related party | 409,230 | 195,013 |
Net cash provided by (used in) continuing financing activities | 7,761,950 | (2,854,475) |
Net cash provided by (used in) discontinued financing activities | 0 | 19,011 |
Net cash provided by (used in) financing activities | 7,761,950 | (2,835,464) |
Effect of exchange rate change on cash and cash equivalents | (14,849,542) | 2,535,774 |
Net increase in cash and cash equivalents | (78,545,834) | 27,774,102 |
Cash and cash equivalents, beginning balance | 150,805,639 | 123,031,537 |
Cash and cash equivalents, ending balance | 72,259,804 | 150,805,639 |
Supplement disclosure of cash flow information | ||
Interest expense paid | 318,122 | 303,651 |
Income taxes paid | 5,129,686 | 7,227,660 |
Supplement non-cash activities | ||
Common stock issued to repay accrued expense | 240,500 | 0 |
Convertible note issued for acquisitions | 0 | 0 |
Derivative liability issued for acquisitions | 0 | 0 |
Nonmonetary sales and purchases | $ 134,655,878 | $ 54,434,270 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Jun. 30, 2019 | |
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, Wangtian, Xindeguo, Xinyulei, Xiangrong and Fengnong may also collectively be referred to as "the sales VIEs" or "the sales VIE companies". The Company's current corporate structure as of is set forth in the diagram below: |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principle of consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Green New Jersey, Jinong, Gufeng, Tianjuyuan, and the VIE Companies. All significant inter-company accounts and transactions have been eliminated in consolidation. Effective June 16, 2013, Yuxing was converted from being a wholly-owned foreign enterprise 100% owned by Jinong to a domestic enterprise 100% owned one natural person, who is not affiliated to the Company ("Yuxing's Owner"). Effective the same day, Yuxing's Owner entered into a series of contractual agreements with Jinong pursuant to which Yuxing became the VIE of Jinong. VIE assessment A VIE is an entity (1) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities, (2) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity's economic performance, or the obligation to absorb the entity's expected losses or the right to receive the entity's expected residual returns, or both, or (3) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity's activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. In order to determine if an entity is considered a VIE, the Company first performs a qualitative analysis, which requires certain subjective decisions regarding its assessments, including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties, and the purpose of the arrangement. If the Company cannot conclude after a qualitative analysis whether an entity is a VIE, it performs a quantitative analysis. The qualitative analysis considered the design of the entity, the risks that cause variability, the purpose for which the entity was created, and the variability that the entity was designed to pass along to its variable interest holders. When the primary beneficiary could not be identified through a qualitative analysis, we used internal cash flow models to compute and allocate expected losses or expected residual returns to each variable interest holder based upon the relative contractual rights and preferences of each interest holder in the VIE's capital structure. Use of estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results 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 June 30, 2019 and 2018 was $72,178,448 and $150,785,737, respectively. There is no insurance securing these deposits in China. In addition, the Company also had $81,356 and $19,902 in cash in two banks in the United States as of June 30, 2019 and 2018 respectively. Cash overdraft as of balance sheet date will be reflected as liabilities in the balance sheet. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. Accounts receivable 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 credit worthiness, 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 June 30, 2019, and 2018, the Company had accounts receivable of $145,190,160 and $174,460,937, net of allowance for doubtful accounts of $33,515,410 and $24,551,796, respectively. The Company adopts no policy to accept product returns post to the sales delivery. Other receivable Other receivable relates to the amount due from party other than the counterparties of the business contracts and trades that the Company and the subsidiaries entered. The Company had none other receivable during the year ended Jun 30, 2019 and the year ended June 30, 2018. 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. At June 30, 2019 and 2018 the Company had no reserve for obsolete goods. Property, plant and equipment Property, plant and equipment are recorded at cost. Gains or losses on disposals are reflected as gain or loss in the year of disposal. The cost of improvements that extend the life of plant, property, and equipment are capitalized. These capitalized costs may include structural improvements, equipment, and fixtures. All ordinary repair and maintenance costs are expensed as incurred. Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of the assets: Estimated Building 10-25 years Agricultural assets 8 years Machinery and equipment 5-15 years Vehicles 3-5 years Construction in Progress Construction in progress represents the costs incurred relating to the construction of buildings or new additions to the Company's plant facilities. Costs classified to construction in progress include all costs of obtaining the asset and bringing it to the location and condition necessary for its intended use. No depreciation is provided for construction in progress until the assets are completed and are placed into service. Interest incurred during construction is capitalized into construction in progress. Long-Lived Assets The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. At June 30, 2019 and 2018 the Company determined that there were no impairments of its long-lived assets. Deferred assets Deferred assets represent amounts that the distributors owed to the Company in their marketing efforts and developing standard stores to expand the Company's products' competitiveness and market shares. The amount owed to the Company to assist its distributors will be expensed over three years which is the term as stated in the cooperation agreement, if the distributors are actively selling the Company's products. For the years ended June 30, 2019 and 2018 the Company amortized 0 and $864,070, respectively, of the deferred assets. If a distributor breaches, defaults, or terminates the agreement with the Company within the three-year period, the outstanding unamortized portion of the amount owed will become payable to the Company immediately. The Company's Chairman, Mr. Li, guaranteed to the Company of amounts remaining unpaid due from distributors. These deferred assets are subject to annual impairment testing. The estimated amortization expense of the deferred assets for the twelve months ending June 30, 2020 is 0 since all deferred assets are fully amortized. The deferred assets consist of items inside the distributors' stores such as furniture, racks, cabinets, and display units, and items outside or attached to the distributors' stores such as signage and billboards. These types of assets would be capitalized as fixed assets if the Company actually owned the stores or utilized the assets for its own operations. These assets would also be capitalized as leasehold improvements if the Company leased these stores from the distributors. Therefore, the Company believes that under U.S. generally accepted accounting principles, these types of asset purchases are properly capitalized. In addition, the Company believes that these assets are properly classified as deferred assets because if a distributor breaches, defaults, or terminates the agreement with the Company within a three-year period, a proportionate amount expended by the Company is to be repaid by the distributor. The assets inside the distributors' stores are custom made to fit the layout of each individual store and the signage and billboards are also custom designed to fit the specific location. The assets were purchased by the Company directly from the manufacturers and installed in the distributors' stores. The Company wants to maintain control over the quality of the items being purchased as well as making them uniform among all the distributor locations. June 30, June 30, 2019 2018 Total Deferred Assets $ 0 $ 11,580,304 Less: accumulated amortization $ 0 $ (11,580,304 ) Total $ 0 $ 0 Intangible Assets The Company records intangible assets acquired individually or as part of a group at fair value. Intangible assets with definitive lives are amortized over the useful life of the intangible asset, which is the period over which the asset is expected to contribute directly or indirectly to the entity's future cash flows. The Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company has not recorded impairment of intangible assets as of June 30, 2019 and 2018 respectively. Goodwill Goodwill represents the excess of purchase price over the underlying net assets of businesses acquired. Goodwill is reviewed for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may be impaired. The goodwill impairment test is a two-step test. Under the first step, the fair value of the reporting unit is compared with its carrying value including goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner comparable to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. As of June 30, 2019, and 2018, the Company performed the required impairment review which resulted in no impairment adjustment. Summary of changes in goodwill by reporting segments is as follows: Balance at Foreign Balance at June 30, Additions Currency June 30, Segment 2018 /Deletion Adjustment 2019 Gufeng $ 4,838,681 $ (173,039 ) 4,665,642 Acquisition of VIE Companies 3,327,786 (119,007 ) 3,208,779 $ 8,166,467 $ $ (292,046 ) $ 7,874,421 Fair Value Measurement and Disclosures Our accounting for Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entity's own assumptions (unobservable inputs). The hierarchy consists of three levels: Level one — Quoted market prices in active markets for identical assets or liabilities; Level two — Inputs other than level one inputs that are either directly or indirectly observable; and Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The following table presents the Company's assets and liabilities required to be reflected within the fair value hierarchy as of June 30, 2019. Fair Value Fair Value Measurements at As of June 30, Description 2019 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability $ 18,162 $ $ 18,162 $ - The carrying values of cash and cash equivalents, trade and other receivables, trade and other payables approximate their fair values due to the short maturities of these instruments. Derivative financial instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The Company uses a binomial option pricing model to value the derivative instruments. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. At June 30, 2019, the only derivative financial instrument is the variable conversion feature embedded in the convertible notes payable (See Note 9). The fair value of the embedded conversion of $18,162 is recorded as a derivative liability at June 30, 2019. The fair value was determined using a binomial option pricing model with the following assumptions: Risk-free rate 3.1 % Volatility 214.9 % Dividend yield 0.0 % Country risk premium 90 % Liquidity risk premium 3.0 % Revenue recognition The Company adopted Accounting Standards Codification ("ASC") 606. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by performing the following five steps analysis: Step 1: Identify the contract Step 2: Identify the performance obligations Step 3: Determine the transaction price Step 4: Allocate the transaction price Step 5: Recognize revenue Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there were no material changes to the Company's consolidated financial statements upon adoption of ASC 606. Sales revenue is recognized on the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured. The Company's revenue consists of invoiced value of goods, net of a value-added tax (VAT). No product return or sales discount allowance are made as products delivered and accepted by customers are not returnable and sales discounts are not granted after products are delivered. Customer deposits Payments received before all the relevant criteria for revenue recognition are satisfied are recorded as customer deposits. When all revenue recognition criteria are met, the customer deposits are recognized as revenue. As of June 30, 2019 and 2018, the Company had customer deposits of $6,514,619 and $7,251,967, respectively. Stock-Based Compensation The costs of all employee stock options, as well as other equity-based compensation arrangements, are reflected in the consolidated financial statements based on the estimated fair value of the awards on the grant date. That cost is recognized over the period during which an employee is required to provide service in exchange for the award—the requisite service period (usually the vesting period). Stock compensation for stock granted to non-employees is determined as the fair value of the consideration received or the fair value of equity instruments issued, whichever is more reliably measured. Income taxes The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Under ASC 740, a tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended June 30, 2019 and 2018. GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. Foreign currency translation The reporting currency of the Company is the US dollar. The functional currency of the Company and Green New Jersey is the US dollar. The functional currency of the Chinese subsidiaries is the Chinese Yuan or Renminbi ("RMB"). For the subsidiaries whose functional currencies are other than the US dollar, all asset and liability accounts were translated at the exchange rate on the balance sheet date; stockholders' equity is translated at the historical rates and items in the income statement and cash flow statements are translated at the average rate in each applicable period. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of shareholders' equity. The resulting translation gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency is included in the results of operations as incurred. Segment reporting The Company utilizes the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other way management disaggregates a company. As of June 30, 2019, the Company, through its subsidiaries is engaged into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production) and Yuxing (agricultural products production) and the seven sales VIEs that the Company acquired on June 30, 2016 and January 1, 2017. As of June 30, 2019, the Company maintained four main business segments. Fair values of financial instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are categorized based on whether the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company's financial instruments primarily consist of cash and cash equivalents, accounts receivable, other receivables, advances to suppliers, accounts payable, other payables, tax payable, and related party advances and borrowings. As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented on the balance sheets. This is attributed to the short maturities of the instruments and that interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profile at respective balance sheet dates. Statement of cash flows The Company's cash flows from operations are calculated based on the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheets. Earnings per share Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards. The components of basic and diluted earnings per share consist of the following: Years Ended June 30, 2019 2018 Net Income for Basic Earnings Per Share $ 11,590,395 $ (6,931,225 ) Basic Weighted Average Number of Shares 3,388,529 3,219,314 Net Income Per Share – Basic $ 3.42 $ (2.16 ) Net Income for Diluted Earnings Per Share $ 11,590,395 $ (6,931,225 ) Diluted Weighted Average Number of Shares 3,388,529 3,219,314 Net Income Per Share – Diluted $ 3.42 $ (2.16 ) Reclassification Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2019 consolidated financial statement presentation. Such reclassifications did not affect total revenues, operating income or net income or cash flows as previously reported. Recent accounting pronouncements Leases Financial Instruments - Credit Losses: 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. Income Tax: |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 3 – INVENTORIES Inventories consisted of the following: June 30, June 30, 2019 2018 Raw materials $ 102,268,620 $ 13,154,465 Supplies and packing materials $ 496,138 $ 566,254 Work in progress $ 390,708 $ 417,130 Finished goods $ 58,858,423 $ 39,646,965 Total $ 162,013,889 $ 53,784,814 During the year ended June 30, 2019, the Company sold compound fertilizers (finished goods) to certain parties at market price, and purchased equivalent amount of simple fertilizers (raw material) from the same parties also at market price. The simple fertilizers purchased, along with other materials were used in the Company's production facility to manufacture compound fertilizers. While nonmonetary, the sales and purchase transactions were consummated independently under separate agreements at different times, and measured at the prevailing market value. The total amount of nonmonetary sales and purchases amounted to $134,655,878 during the year ended June 30, 2019. No gain or loss incurred as the result of the nonmonetary transactions. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 4 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: June 30, June 30, 2019 2018 Building and improvements $ 38,877,508 $ 40,319,393 Auto 3,391,040 3,504,028 Machinery and equipment 18,125,539 18,765,192 Agriculture assets 741,044 768,528 Total property, plant and equipment 61,135,130 63,357,141 Less: accumulated depreciation (34,465,192 ) (32,462,458 ) Total $ 26,669,938 $ 30,894,683 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 5 – INTANGIBLE ASSETS Intangible assets consisted of the following: June 30, June 30, 2019 2018 Land use rights, net $ 9,341,327 $ 9,930,420 Technology patent, net 3,004 3,570 Customer relationships, net 2,174,564 3,578,724 Non-compete agreement 436,634 659,500 Trademarks 5,925,920 6,145,700 Total $ 17,881,449 $ 20,317,914 LAND USE RIGHT On September 25, 2009, Yuxing was granted a land use right for approximately 88 acres (353,000 square meters or 3.8 million square feet) by the People's Government and Land & Resources Bureau of Hu County, Xi'an, Shaanxi Province. The fair value of the related intangible asset was determined to be the respective cost of RMB73,184,895 (or $10,655,721). 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 $152,290). 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 $1,060,710). The intangible asset is being amortized over the grant period of 50 years. The Land Use Rights consisted of the following: June 30, 2018 Foreign Currency Adjustment Amortization June 30, 2019 Land use rights $ 12,308,907 (440,186 ) 11,868,721 Less: accumulated amortization (2,378,488 ) (148,906 ) (2,527,394 ) Total land use rights, net $ 9,930,419 (589,092 ) 9,341,327 TECHNOLOGY PATENT On August 16, 2001, Jinong was issued a technology patent related to a proprietary formula used in the production of humid acid. The fair value of the related intangible asset was determined to be the respective cost of RMB 5,875,068 (or $855,410) and is being amortized over the patent period of 10 years using the straight-line method. This technology patent has been fully amortized. On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value on the acquired technology patent was estimated to be RMB9, 200,000 (or $1,339,520) and is amortized over the remaining useful life of six years using the straight-line method. As of June 30, 2019, this technology patent is fully amortized. On June 30, 2016, the Company acquired Xingyulei and Xindeguo. The fair value on the acquired technology patent was estimated to be RMB26, 648 (or $3,880) and RMB3, 000(or $437) respectively. The technology know-how consisted of the following: June 30, Foreign Currency June 30, 2018 Adjustment Amortization 2019 Technology know-how $ 2,281,296 (82,049 ) $ 2,199,247 Less: accumulated amortization (2,277,726 ) (81,484 ) (2,196,243 ) Total technology know-how, net $ 3,570 (565 ) $ 3,004 CUSTOMER RELATIONSHIP On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value on the acquired customer relationships was estimated to be RMB65,000,000 (or $9,464,000) and is amortized over the remaining useful life of ten years. On June 30, 2016, and January 1, 2017 the Company acquired the VIE Companies. The fair value of the acquired customer relationships was estimated to be RMB14,729,602 (or $2,144,630) and is amortized over the remaining useful life of seven to ten years. June 30, Foreign Currency June 30, 2018 Adjustment Amortization 2019 Customer relationships $ 12,039,169 (430,540 ) $ 11,608,629 Less: accumulated amortization (8,460,445 ) (973,620 ) (9,434,065 ) Total customer relationships, net $ 3,578,724 (430,540 ) (973,620 ) $ 2,174,564 NON-COMPETE AGREEMENT On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value on the acquired non-compete agreement was estimated to be RMB1,320,000 (or $192,192) and is amortized over the remaining useful life of five years using the straight-line method. On June 30, 2016, and January 1, 2017 the Company acquired the VIE Companies. The fair value of the acquired non-compete agreements was estimated to be RMB6,843,439 (or $996,405) and is amortized over the remaining useful life of five years using the straight-line method. June 30, Foreign Currency June 30, 2018 Adjustment Amortization 2019 Non-compete agreement $ 1,232,680 (44,083 ) $ 1,188,597 Less: accumulated amortization (573,180 ) (178,783 ) (751,963 ) Total non-compete agreement, net $ 659,500 (44,083 ) (178,783 ) $ 436,634 TRADEMARKS On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired trademarks was estimated to be RMB40,700,000 (or $5,925,920) and is subject to an annual impairment test. On June 30, 2016, and January 1, 2017 the Company acquired the VIE Companies. The fair value of the acquired trademarks was estimated to be RMB29,648 (or $4,317) and is subject to an annual impairment test. AMORTIZATION EXPENSE Estimated amortization expenses of intangible assets for the next five twelve months periods ended June 30, are as follows: Years Ending June 30, Expense ($) 2020 1,803,730 2021 834,921 2022 602,511 2023 564,438 2024 409,885 |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Jun. 30, 2019 | |
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 lease the land use for the Company. As of June 30, 2019, the balance of other non-current assets was $15,307,325, which was the lease fee advances for agriculture lands that the Company engaged in Shiquan County from 2019 to 2027. In March 2017, Jinong entered into the 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 $2.0 million as expenses for the year ended June 30, 2019. Estimated amortization expenses of the lease advance payments herein for the next four twelve-month periods ended June 30 and thereafter are as follows: Years ending June 30, 2020 $ 1,954,680 2021 $ 1,954,680 2022 $ 1,954,680 2023 $ 1,954,680 2024 and thereafter $ 7,488,605 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 12 Months Ended |
Jun. 30, 2019 | |
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: June 30, June 30, 2019 2018 Payroll payable $ 24,891 $ 13,788 Welfare payable 149,479 155,023 Accrued expenses 6,847,041 5,368,348 Other payables 4,886,202 4,543,261 Other levy payable 122,109 126,638 Total $ 12,029,722 $ 10,207,058 |
Amount Due to Related Parties
Amount Due to Related Parties | 12 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
AMOUNT DUE TO RELATED PARTIES | NOTE 8 – AMOUNT DUE TO RELATED PARTIES At the end of December 2015, Yuxing entered into a sales agreement with the Company's affiliate, 900LH.com Food Co., Ltd. ("900LH.com", previously announced as Xi'an Gem Grain Co., Ltd) pursuant to which Yuxing is to supply various vegetables to 900LH.com for its incoming seasonal sales at the holidays and year ends (the "Sales Agreement"). The contingent contracted value of the Sales Agreement is RMB 25,500,000 (approximately $3,712,800). During the year ended June 30, 2019 and 2018 Yuxing has sold approximately $604,073 and $673,111 products to 900LH.com. The amount due from 900LH.com to Yuxing was 0 and $235,551 as of June 30, 2019 and 2018, respectively. As of June 30, 2019, and June 30, 2018, the amount due to related parties was $3,641,945 and $3,271,619, respectively. As of June 30, 2019, and June 30, 2018, $1,019,200 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 June 30, 2019, the Company's subsidiary, Jinong, owed 900LH.com. $400,225. On July 1, 2018, Jinong signed an office lease with Kingtone Information Technology Co., Ltd. ("Kingtone Information"), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provides for a two-year term effective as of July 1, 2018 with monthly rent of RMB24,480 (approximately $3,588). |
Loan Payables
Loan Payables | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
LOAN PAYABLES | NOTE 9 – LOAN PAYABLES As of June 30, 2019, the short-term loan payables consisted of four loans which mature on dates ranging from June 3, 2019 through June 27, 2020 with interest rates ranging from 5.22% to 6.31%. No. 1 and 2 below are collateralized by Tianjuyuan's land use right and building ownership right. Loan No. 2 is also guaranteed by the cash deposit. No. Payee Loan period per agreement Interest Rate June 30, 1 Postal Saving Bank of China - Pinggu Branch June 3, 2019-June 2, 2020 6.31 % 2,912,000 2 Agriculture Bank -Pinggu Branch June 28, 2019-June 27, 2020 5.22 % 728,000 Total $ 3,640,000 The interest expense from short-term loans was $318,122 and $592,153 for the year ended June 30, 2019 and 2018 respectively. |
Convertible Notes Payable
Convertible Notes Payable | 12 Months Ended |
Jun. 30, 2019 | |
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 ($7,425,600) with a term of three years and an annual interest rate of 3%. No. Related Acquisitions of Sales VIEs Issuance Date Maturity Date Notional Interest Rate Conversion Price Notional Amount 1 Wangtian, Lishijie, Xindeguo, Xinyulei, Jinyangguang June 30, 2016 June 30, 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 mature date. The per share conversion price of the notes is the higher of the following: (i) $5.00 per share or (ii) 75% of the closing price of the Company's common stock on the date the noteholder delivers the conversion notice. Due to the discontinuation of VIE agreements with Zhenbai's shareholders, certain convertible notes issued on June 30, 2016 with a face amount of RMB 12,000,000 ($1,747,200) 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 notes payable was RMB 51,629,859 ($7,517,307) and RMB 48,820,525 ($7,371,899) as of June 30, 2019 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 June 30, 2019, the accumulated amortization of this discount into accretion expenses was $1,333,792. |
Taxes Payable
Taxes Payable | 12 Months Ended |
Jun. 30, 2019 | |
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 was eliminated. Since January 1, 2008, Jinong became subject to income tax in China at a rate of 15% as a high-tech company, because of the expiration of its tax exemption on December 31, 2007. Accordingly, it made provision for income taxes for the years ended June 30, 2019 and 2018 of $6,497,340 and $3,501,354, respectively, which is mainly due to the operating income from Gufeng. Gufeng is subject to 25% EIT rate and thus it made provision for income taxes of $3,482,862 and $2,471,593 for the years ended June 30, 2019 and 2018, respectively. Value-Added Tax All of the Company's fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 13% of the gross sales price. On April 29, 2008, the PRC State of Administration of Taxation (SAT) released Notice #56, " Exemption of VAT for Organic Fertilizer Products Reinstatement of VAT for Fertilizer Products Supplementary Reinstatement of VAT for Fertilizer Products On April 28, 2017, the PRC State of Administration of Taxation (SAT) released Notice 2017 #37, " Notice on Policy of Reduced Value Added Tax Rate, On April 4, 2018, the PRC State of Administration of Taxation (SAT) released Notice 2018 #32, " Notice on Adjustment of VAT Tax Rate, On March 20, 2019, the PRC State of Administration of Taxation (SAT) released Notice 2019 #39, " Announcement on Policies Concerning Deepening the Reform of Value Added Tax, Income Taxes and Related Payables Taxes payable consisted of the following: June 30, June 30, 2019 2018 VAT provision $ (424,535 ) $ (449,140 ) Income tax payable 1,550,830 554,065 Other levies 1,220,859 836,747 Total $ 2,347,154 $ 941,672 The provision for income taxes consists of the following: Years Ended June 30, 2019 2018 Current tax – foreign $ 6,497,340 $ 6,841,592 Repatriation Tax 0 29,010,535 $ 6,497,340 $ 35,852,127 The components of deferred income tax assets and liabilities are as follows: June 30, June 30, 2019 2018 Deferred tax assets: Net operating loss $ 15,377,180 $ 14,997,710 Total deferred tax assets 15,377,180 14,997,710 Less valuation allowance (15,377,180 ) (14,997,710 ) $ - $ - The Company periodically evaluates the likelihood of the realization of deferred tax assets, and adjusts the carrying amount of the deferred tax assets by the valuation allowance to the extent the future realization of the deferred tax assets is not judged to be more likely than not. The Company considers many factors when assessing the likelihood of future realization of its deferred tax assets, including its recent cumulative earnings experience by taxing jurisdiction, expectations of future taxable income or loss, the carryforward periods available to the Company for tax reporting purposes, and other relevant factors. At June 30, 2019, based on the weight of available evidence, including cumulative losses in recent years and expectations of future taxable income, the Company determined that it was more likely than not that its deferred tax assets would not be realized and have a $15.4 million valuation allowance associated with its deferred tax assets. U.S. Tax Cuts and Jobs Act and Provisional Estimates On December 22, 2017, the TCJA was enacted into law, which significantly changes existing U.S. tax law and includes numerous provisions that affect our business, such as imposing a one-time transition tax on deemed repatriation of deferred foreign income, reducing the U.S. federal statutory tax rate, and adopting a territorial tax system. The TCJA required us to incur a one-time transition tax on deferred foreign income not previously subject to U.S. income tax at a rate of 15.5% for foreign cash and certain other net current assets, and 8% on the remaining income. The TCJA also reduced the U.S. federal statutory tax rate from 35% to 21% effective January 1, 2018. For fiscal year 2018, our blended U.S. federal statutory tax rate is 27.5%. This is the result of using the tax rate of 34% for the first and second quarter of fiscal year 2018 and the reduced tax rate of 21% for the third and fourth quarter of fiscal year 2018. The TCJA was effective in the second quarter of fiscal year 2018. As of June 30, 2019, we have not completed our accounting for the estimated tax effects of the TCJA. During fiscal year 2018, we recorded a provisional net charge of $29.0 million related to the TCJA based on reasonable estimates for those tax effects. Due to the timing of the enactment and the complexity in applying the provisions of the TCJA, the provisional net charge is subject to revisions as we continue to complete our analysis of the TCJA, collect and prepare necessary data, and interpret any additional guidance issued by the U.S. Treasury Department, Internal Revenue Service ("IRS"), Financial Accounting Standards Board, and other standard-setting and regulatory bodies. Adjustments may materially impact our provision for income taxes and effective tax rate in the period in which the adjustments are made. During fiscal year 2018, we recorded an estimated net charge of $29.0 million related to the TCJA, due to the impact of the one-time transition tax on the deemed repatriation of deferred foreign income of $292.5 million. Tax Rate Reconciliation Our effective tax rates were approximately 35.9% and 124.0% for years ended June 30, 2019 and 2018 respectively, with the effect of repatriation tax. 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 21.0% and 27.5% to income before income taxes for the years ended June 30, 2019 and 2018 for the following reasons: June 30, 2019 China United States 15% - 25% 21% Total Pretax income (loss) $ 19,894,737 (1,807,002 ) $ 18,087,735 Expected income tax expense (benefit) 4,973,684 25.0 % (379,470 ) 21.0 % 4,594,214 High-tech income benefits on Jinong (697,062 ) (3.5 )% - - (697,062 ) Losses from subsidiaries in which no benefit is recognized 2,220,717 11.2 % - - 2,220,717 Change in valuation allowance on deferred tax asset from US tax benefit - 379,470 (21.0 )% 379,470 Actual tax expense $ 6,497,340 32.7 % $ 0 % $ 6,497,340 35.9 % June 30, 2018 China United States 15% - 25% 27.5% Total Pretax income (loss) $ 30,338,751 (1,417,849 ) $ 28,920,902 Expected income tax expense (benefit) 7,584,688 25.0 % (389,908 ) 27.5 % 7,194,779 High-tech income benefits on Jinong (3,501,354 ) (12.0 )% - - (3,501,354 ) Losses from subsidiaries in which no benefit is recognized 2,758,258 9 % - - 2,758,258 Change in valuation allowance on deferred tax asset from US tax benefit - 389,908 (27.5 )% 389,908 Repatriation Tax 0 29,010,535 29,010,535 Actual tax expense $ 6,841,592 22.6 % $ 29,010,535 % $ 35,852,127 124.0 % |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 12 – STOCKHOLDERS' EQUITY Common Stock During the year ended June 30, 2018, the Company issued 345,680 shares of common stock for share-based compensation valued at $421,730. The shares were valued at the market price on the date of issuance. On April 25, 2019, the Company entered into a Stock Purchase Agreement (the "SPA") with certain non-US persons, as defined in Regulation S promulgated under the Securities Act of 1933, in connection with a private placement offering of 6,000,000 shares of common stock, par value $0.001 per share, of the Company. The purchase price per share of the offering is $1.00. On April 26, 2019, the Company issued 6,000,000 Shares of the Company's Common Stock, par value $0.001 per share, pursuant to the SPA. The Shares issued in the offering are exempt from the registration requirements of the Securities Act, pursuant to Section 4(a)(2) of the Securities Act and/or Regulation S promulgated thereunder. On May 10, 2019, the Company sold 2,270,000 shares of common stock at the price of $1.00 per share for total proceeds of $2,270,000 to certain third-party individuals. The issuances were completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. On June 25, 2019, the Company approved the amendment to its Articles of Incorporation to effect a 1 for 12 reverse stock split. The number of outstanding shares of the registrant's common stock on June 30, 2019, was 3,986,912. During the year ended June 30, 2019, the Company issued an aggregate of 650,000 shares of common stock to pay off consulting services under the 2009 Plan. The value of the stock was $370,500 and is based on the fair value of the Company's common stock on the grant date. Preferred Stock Under the Company's Articles of Incorporation, the Board has the authority, without further action by stockholders, to designate up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, qualifications and restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be greater than the rights of the common stock. If the Company sells preferred stock under its registration statement on Form S-3, it will fix the rights, preferences, privileges, qualifications and restrictions of the preferred stock of each series in the certificate of designation relating to that series and will file the certificate of designation that describes the terms of the series of preferred stock the Company offers before the issuance of the related series of preferred stock. As of June 30, 2019, the Company has 20,000,000 shares of preferred stock authorized, with a par value of $.001 per share, of which no shares are issued or outstanding. |
Stock Options
Stock Options | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS | NOTE 13 – STOCK OPTIONS There were no issuances of stock options during the years ended June 30, 2019 and 2018. |
Concentrations and Litigation
Concentrations and Litigation | 12 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND LITIGATION | NOTE 14 – CONCENTRATIONS AND LITIGATION Market Concentration All the Company's revenue-generating operations are conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC's economy. The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other things, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by, among other things, changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation. Vendor and Customer Concentration There were two vendors from which the Company purchased 10.8% and 10.6%, respectively, of its raw materials for fertilizer manufacturing during the year ended June 30, 2019. Total purchases from these two vendors amounted to $51,459,699 as June 30, 2019. There were two vendors from which the Company purchased 8.5% and 7.1%, respectively, of its raw materials for fertilizer manufacturing during the year ended June 30, 2018. Total purchase from these two vendors amounted to $20,020,959 as June 30, 2018. Two customers accounted for an aggregate amount of $35,303,527, or 7.4% and 7.3%, respectively, of the Company's manufactured fertilizer sales for the year ended June 30, 2019. Two customers accounted for an aggregate amount of $34,652,664, or 7.5% and 7.3%, respectively, of the Company's manufactured fertilizer sales for the year ended June 30, 2018. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 15 – SEGMENT REPORTING As of June 30, 2019, the Company was organized into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and the sales VIEs. Each of the four operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker ("CODM") receives financial information, including revenue, gross margin, operating income and net income produced from the various general ledger systems to make decisions about allocating resources and assessing performance; however, the principal measure of segment profitability or loss used by the CODM is net income by segment. Years Ended June 30, 2019 2018 Revenues from unaffiliated customers: Jinong $ 76,494,490 $ 97,722,842 Gufeng 136,285,236 112,983,573 Yuxing 10,101,051 10,485,030 Sales VIEs 71,440,026 65,862,085 Consolidated $ 294,320,803 $ 287,053,530 Operating income: Jinong $ 7,288,789 $ 23,471,811 Gufeng 14,076,655 10,151,272 Yuxing (3,435,206 ) (506,077 ) Sales VIEs 2,681,521 (1,897,364 ) Reconciling item (1) 0 0 Reconciling item (2) (1, 807,011 ) (1,417,855 ) Reconciling item (3) --stock compensation 0 0 Consolidated $ 18,804,748 $ 29,801,787 Net income: Jinong $ 5,925,025 $ 19,841,004 Gufeng 10,191,675 7,172,837 Yuxing (3,435,659 ) (484,398 ) Sales VIEs 729,023 (2,700,288 ) Reconciling item (1) 9 6 Reconciling item (2) (1,807,009 ) (30,428,390 ) Reconciling item (3) $ (12,668 ) $ (331,996 ) Consolidated $ 11,590,395 $ (6,931,225 ) Depreciation and Amortization: Jinong $ 788,787 $ 1,720,419 Gufeng 2,144,061 2,246,657 Yuxing 1,242,761 1,407,367 Sales VIEs 745,169 826,063 Consolidated $ 4,920,779 $ 6,200,506 Interest expense: Jinong 277,003 290,638 Gufeng 318,122 377,593 Yuxing 0 0 Sales VIEs 0 (76,078 ) Consolidated $ 595,125 $ 592,153 Capital Expenditure: Jinong $ 6,862 $ 7,212 Gufeng 47,096 7,800 Yuxing 9,653 5,448 Sales VIEs 0 20,655 Consolidated $ 63,610 $ 41,114 As of June 30, June 30, 2019 2018 Identifiable assets: Jinong $ 149,166,251 $ 226,335,489 Gufeng 253,149,321 168,572,947 Yuxing 35,900,242 0 Sales VIEs 42,269,307 87,567,782 Reconciling item (1) 518,158 512,622 Reconciling item (2) (2,879 ) (2,879 ) Consolidated $ 481,000,399 $ 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 loss on discontinuing sales VIE of Shenqiu Zhenbai. Total revenues from exported products currently accounted for less than 1% of the Company's total fertilizer revenues for the years ended June 30, 2019 and 2018 respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 – COMMITMENTS AND CONTINGENCIES On July 1, 2018, Jinong signed an office lease with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provides for a two-year term effective as of July 1, 2018 with monthly rent of RMB24,480 (approximately $3,588). 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 $434 (RMB 2,958). Accordingly, the Company recorded an aggregate of $48,257 and $$53,536 as rent expenses for the years ended June 30, 2019 and 2018 respectively. The contingent rent expenses herein for the next five years ended June 30, are as follows: Years ending June 30, 2020 48,257 2021 48,257 2022 48,257 2023 48,257 2024 48,257 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 17 – VARIABLE INTEREST ENTITIES In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which a company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. Green Nevada through one of its subsidiaries, Jinong, entered into a series of agreements (the "VIE Agreements") with Yuxing for it to qualify as a VIE, effective June 16, 2013. The Company has concluded, based on the contractual arrangements, that Yuxing is a VIE and that the Company's wholly-owned subsidiary, Jinong, absorbs a majority of the risk of loss from the activities of Yuxing, thereby enabling the Company, through Jinong, to receive a majority of Yuxing expected residual returns. On June 30, 2016 and January 1, 2017, the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and also 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 of the economic benefits of Yuxing and the VIE Companies. The following financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements as of June 30, 2019 and June 30, 2018: June 30, June 30, 2019 2018 ASSETS Current Assets Cash and cash equivalents $ 818,312 $ 982,312 Accounts receivable, net 29,933,837 38,295,505 Inventories 19,944,011 21,133,970 Other current assets 475,001 988,051 Related party receivable (1,031 ) (359,005 ) Advances to suppliers 3,606,384 848,458 Total Current Assets 54,776,514 61,889,291 Plant, Property and Equipment, Net 9,753,039 11,206,667 Other assets 218,549 226,654 Intangible Assets, Net 10,212,668 11,348,180 Goodwill 3,208,779 3,319,732 Total Assets $ 78,169,549 $ 87,990,524 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 17,250,276 $ 25,584,614 Customer deposits 256,489 841,694 Accrued expenses and other payables 6,243,753 3,896,340 Amount due to related parties 42,680,723 43,339,286 Total Current Liabilities 66,431,241 73,661,934 Total Liabilities $ 66,431,241 73,661,934 Stockholders' equity 11,738,308 14,328,590 Total Liabilities and Stockholders' Equity $ 78,169,549 $ 87,990,524 Years Ended June 30, 2019 2018 Revenue $ 81,541,077 $ 77,351,284 Expenses 84,247,714 80,535,970 Net income $ (2,706,637 ) $ (3,184,686 ) |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | NOTE 18 – BUSINESS COMBINATIONS On June 30, 2016, the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and also into a series of contractual agreements to qualify as VIEs with the shareholders of Shaanxi Lishijie Agrochemical Co., Ltd., Songyuan Jinyangguang Sannong Service Co., Ltd., Shenqiu County Zhenbai Agriculture Co., Ltd., Weinan City Linwei District Wangtian Agricultural Materials Co., Ltd., Aksu Xindeguo Agricultural Materials Co., Ltd., and Xinjiang Xinyulei Eco-agriculture Science and Technology Co., Ltd. Subsequently, on January 1, 2017, Jinong entered into similar strategic acquisition agreements and a series of contractual agreements to qualify as VIEs with the shareholders of Sunwu County Xiangrong Agricultural Materials Co., Ltd., and Anhui Fengnong Seed Co., Ltd. On November 30, 2017, the Company, through its wholly-owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Zhenbai. The VIE Agreements are as follows: Entrusted Management Agreements Pursuant to the terms of certain Entrusted Management Agreements dated June 30, 2016 and January 1, 2017, between Jinong and the shareholders of the sales VIE Companies (the "Entrusted Management Agreements"), the sales VIE Companies and their shareholders agreed to entrust the operations and management of its business to Jinong. According to the Entrusted Management Agreement, Jinong possesses the full and exclusive right to manage the sales VIE Companies' operations, assets and personnel, has the right to control all the sales VIE Companies' cash flows through an entrusted bank account, is entitled to the sales VIE Companies' net profits as a management fee, is obligated to pay all the sales VIE Companies' payables and loan payments, and bears all losses of the sales VIE Companies. The Entrusted Management Agreements will remain in effect until (i) the parties mutually agree to terminate the agreement; (ii) the dissolution of the sales VIE Companies; or (iii) Jinong acquires all the assets or equity of the sales VIE Companies (as more fully described below under "Exclusive Option Agreements"). Exclusive Technology Supply Agreements Pursuant to the terms of certain Exclusive Technology Supply Agreements dated June 30, 2016 and January 1, 2017, between Jinong and the sales VIE companies (the "Exclusive Technology Supply Agreements"), Jinong is the exclusive technology provider to the sales VIE companies. The sales VIE companies agreed to pay Jinong all fees payable for technology supply prior to making any payments under the Entrusted Management Agreement. The Exclusive Technology Supply Agreements shall remain in effect until (i) the parties mutually agree to terminate the agreement; (ii) the dissolution of the sales VIE companies; or (iii) Jinong acquires the sales VIE companies (as more fully described below under "Exclusive Option Agreements"). Shareholder's Voting Proxy Agreements Pursuant to the terms of certain Shareholder's Voting Proxy Agreements dated June 30, 2016 and January 1, 2017, among Jinong and the shareholders of the sales VIE companies (the "Shareholder's Voting Proxy Agreements"), the shareholders of the sales VIE companies irrevocably appointed Jinong as their proxy to exercise on such shareholders' behalf all of their voting rights as shareholders pursuant to PRC law and the Articles of Association of the sales VIE companies, including the appointment and election of directors of the sales VIE companies. Jinong agreed that it shall maintain a board of directors, the composition and appointment of which shall be approved by the Board of the Company. The Shareholder's Voting Proxy Agreements will remain in effect until Jinong acquires all the assets or equity of the sales VIE companies. Exclusive Option Agreements Pursuant to the terms of certain Exclusive Option Agreements dated June 30, 2016 and January 1, 2017, among Jinong, the sales VIE companies, and the shareholders of the sales VIE companies (the "Exclusive Option Agreements"), the shareholders of the sales VIE companies granted Jinong an irrevocable and exclusive purchase option (the "Option") to acquire the sales VIE companies' equity interests and/or remaining assets, but only to the extent that the acquisition does not violate limitations imposed by PRC law on such transactions. The Option is exercisable at any time at Jinong's discretion so long as such exercise and subsequent acquisition of the sales VIE companies does not violate PRC law. The consideration for the exercise of the Option is to be determined by the parties and memorialized in the future by definitive agreements setting forth the kind and value of such consideration. Jinong may transfer all rights and obligations under the Exclusive Option Agreements to any third parties without the approval of the shareholders of the sales VIE companies so long as a written notice is provided. The Exclusive Option Agreements may be terminated by mutual agreements or by 30 days written notice by Jinong. Equity Pledge Agreements Pursuant to the terms of certain Equity Pledge Agreements dated June 30, 2016 and January 1, 2017, among Jinong and the shareholders of the sales VIE companies (the "Pledge Agreements"), the shareholders of the sales VIE companies pledged all of their equity interests in the sales VIE companies to Jinong, including the proceeds thereof, to guarantee all of Jinong's rights and benefits under the Entrusted Management Agreements, the Exclusive Technology Supply Agreements, the Shareholder' Voting Proxy Agreements and the Exclusive Option Agreements. Prior to termination of the Pledge Agreements, the pledged equity interests cannot be transferred without Jinong's prior written consent. The Pledge Agreements may be terminated only upon the written agreement of the parties. Non-Compete Agreements Pursuant to the terms of certain Non-Compete Agreements dated June 30, 2016 and January 1, 2017, among Jinong and the shareholders of the sales VIE companies (the "Non-Compete Agreements"), the shareholders of the sales VIE companies agreed that during the period beginning on the initial date of their services with Jinong, and ending five (5) years after termination of their services with Jinong, without Jinong's prior written consent, they will not provide services or accept positions including but not limited to partners, directors, shareholders, managers, proxies or consultants, provided by any profit making organizations with businesses that may compete with Jinong. They will not solicit or interfere with any of the Jinong's customers, or solicit, induce, recruit or encourage any person engaged or employed by Jinong to terminate his or her service or engagement. If the shareholders of the sales VIE companies breach the non-compete obligations contained therein, Jinong is entitled to all loss and damages; if the damages are difficult to determine, remedies bore the shareholders of the sales VIE companies shall be no less than 50% of the salaries and other expenses Jinong provided in the past. The Company entered 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 ) |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Jun. 30, 2019 | |
Restricted Net Assets [Abstract] | |
RESTRICTED NET ASSETS | NOTE 19 – RESTRICTED NET ASSETS The Company's operations are primarily conducted through its PRC subsidiaries, which can only pay dividends out of their retained earnings determined in accordance with the accounting standards and regulations in the PRC and after it has met the PRC requirements for appropriation to statutory reserves. In addition, the Company's businesses and assets are primarily denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People's Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People's Bank of China. Approval of foreign currency payments by the People's Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers' invoices, shipping documents and signed contracts. These currency exchange control procedures imposed by the PRC government authorities may restrict the ability of the Company's PRC subsidiaries to transfer their net assets to the Parent Company through loans, advances or cash dividends. The Company's PRC subsidiaries net assets as of June 30, 2019 and 2018 exceeded 25% of the Company's consolidated net assets. Accordingly, condensed Parent Company financial statements have been prepared in accordance with Rule 5-04 and Rule 12-04 of SEC Regulation S-X, and are as follows. Parent Company Financial Statements PARENT COMPANY FINANCIAL INFORMATION OF CHINA GREEN AGRICULTURE, INC. Condensed Balance Sheets As of June 30, 2019 2018 ASSETS Current Assets: Cash and cash equivalents $ 78,406 $ 16,952 Other current assets 8,270,071 71 Total Current Assets 8,348,476 17,022 Long-term equity investment 406,084,910 400,248,804 Total long-term assets 406,084,910 400,248,804 Total Assets $ 406,163,387 $ 400,265,826 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 214,520 $ 214,520 Amount due to related parties 2,592,986 2,183,756 Other payables and accrued expenses 6,800,194 5,319,763 Total Current Liabilities 9,607,701 7,718,039 Stockholders' Equity Common stock, $.001 par value, 115,197,165 shares authorized, 3,986,912 and 38,896,945 shares issued and outstanding as of June 30, 2019 and June 30, 2018, respectively 3,987 38,897 Additional paid in capital 138,012,445 129,337,035 Accumulated other comprehensive income (19,821,211 ) (3,598,215 ) Retained earnings 278,360,465 266,770,070 Total Stockholders' Equity 396,555,686 392,547,787 Total Liabilities and Stockholders' Equity $ 406,163,387 $ 400,265,826 Condensed Statements of Operations Year ended June 30, 2019 2018 Revenue $ - $ - General and administrative expenses 1,807,010 1,417,855 Interest income 9 6 Provision for tax 0 29,010,535 Equity investment in subsidiaries 13,397,397 23,497,159 Net income $ 11,590,395 $ (6,931,225 ) Condensed Statements of Cash Flows Year Ended June 30, 2019 2018 Net cash provided by (used in) operating activities $ (8,617,776 ) $ (29,438,540 ) Net cash provided by investing activities - - Net cash provided by financing activities 8,679,230 195,013 Cash and cash equivalents, beginning balance (29,103,559 ) 139,969 Cash and cash equivalents, ending balance $ (29,042,104 ) $ (29,103,559 ) Notes to Condensed Parent Company Financial Information As of June 30, 2019, and 2018, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except as separately disclosed in the Consolidated Financial Statements, if any. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 20 – SUBSEQUENT EVENTS On July 2, 2019, the Company issued 59,567 shares of common stock to pay off consulting services under the 2009 Plan. The value of the stock was $330,000 and was based on the fair value of the Company's common stock on the grant date. On August 13, 2019, the Company sold 212,000 shares of common stock at the price of $10.00 per share for total proceeds of $2,120,000 to certain third-party individuals. The issuances were completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. On August 15, 2019, Shaanxi Baoyu Science and Technology Investment Company, a limited liability investment company incorporated in the People's Republic of China ("Shaanxi Baoyu"), entered into a certain Stock Purchase Agreement (the "SPA") pursuant to Regulation S promulgated under the Securities Act of 1933 with the Company in connection with a private placement offering of 471,000 shares of Common Stock, par value $0.001 per share, of the Company. The purchase price per share of the offering was $12.00 for total proceeds of $5,652,000. On August 16, 2019, the Company issued 471,000 Shares of the Company's Common Stock, par value $0.001 per share, to Shaanxi Baoyu, pursuant to the SPA. All securities reported in this schedule are owned by Shaanxi Baoyu. On August 19, 2019, the Company sold 248,000 shares of common stock at the price of $10.00 per share for total proceeds of $2,480,000 to certain third-party individuals. The issuances were completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. On October 9, 2019, a lawsuit was filed against us and certain of our officers in the United States District Court for the District of Nevada (the "Nevada Federal Court") by Plaintiff Glenn Little. The current version of the complaint alleges us and certain of our officers for breach of fiduciary duty and shareholder oppression. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Principle of consolidation | Principle of consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Green New Jersey, Jinong, Gufeng, Tianjuyuan, and the VIE Companies. All significant inter-company accounts and transactions have been eliminated in consolidation. Effective June 16, 2013, Yuxing was converted from being a wholly-owned foreign enterprise 100% owned by Jinong to a domestic enterprise 100% owned one natural person, who is not affiliated to the Company ("Yuxing's Owner"). Effective the same day, Yuxing's Owner entered into a series of contractual agreements with Jinong pursuant to which Yuxing became the VIE of Jinong. |
VIE assessment | VIE assessment A VIE is an entity (1) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities, (2) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity's economic performance, or the obligation to absorb the entity's expected losses or the right to receive the entity's expected residual returns, or both, or (3) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity's activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. In order to determine if an entity is considered a VIE, the Company first performs a qualitative analysis, which requires certain subjective decisions regarding its assessments, including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties, and the purpose of the arrangement. If the Company cannot conclude after a qualitative analysis whether an entity is a VIE, it performs a quantitative analysis. The qualitative analysis considered the design of the entity, the risks that cause variability, the purpose for which the entity was created, and the variability that the entity was designed to pass along to its variable interest holders. When the primary beneficiary could not be identified through a qualitative analysis, we used internal cash flow models to compute and allocate expected losses or expected residual returns to each variable interest holder based upon the relative contractual rights and preferences of each interest holder in the VIE's capital structure. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results 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 June 30, 2019 and 2018 was $72,178,448 and $150,785,737, respectively. There is no insurance securing these deposits in China. In addition, the Company also had $81,356 and $19,902 in cash in two banks in the United States as of June 30, 2019 and 2018 respectively. Cash overdraft as of balance sheet date will be reflected as liabilities in the balance sheet. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. |
Accounts receivable | Accounts receivable 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 credit worthiness, 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 June 30, 2019, and 2018, the Company had accounts receivable of $145,190,160 and $174,460,937, net of allowance for doubtful accounts of $33,515,410 and $24,551,796, respectively. The Company adopts no policy to accept product returns post to the sales delivery. |
Other receivable | Other receivable Other receivable relates to the amount due from party other than the counterparties of the business contracts and trades that the Company and the subsidiaries entered. The Company had none other receivable during the year ended Jun 30, 2019 and the year ended June 30, 2018. |
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. At June 30, 2019 and 2018 the Company had no reserve for obsolete goods. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are recorded at cost. Gains or losses on disposals are reflected as gain or loss in the year of disposal. The cost of improvements that extend the life of plant, property, and equipment are capitalized. These capitalized costs may include structural improvements, equipment, and fixtures. All ordinary repair and maintenance costs are expensed as incurred. Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of the assets: Estimated Building 10-25 years Agricultural assets 8 years Machinery and equipment 5-15 years Vehicles 3-5 years |
Construction in Progress | Construction in Progress Construction in progress represents the costs incurred relating to the construction of buildings or new additions to the Company's plant facilities. Costs classified to construction in progress include all costs of obtaining the asset and bringing it to the location and condition necessary for its intended use. No depreciation is provided for construction in progress until the assets are completed and are placed into service. Interest incurred during construction is capitalized into construction in progress. |
Long-Lived Assets | Long-Lived Assets The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. At June 30, 2019 and 2018 the Company determined that there were no impairments of its long-lived assets. |
Deferred asset | Deferred assets Deferred assets represent amounts that the distributors owed to the Company in their marketing efforts and developing standard stores to expand the Company's products' competitiveness and market shares. The amount owed to the Company to assist its distributors will be expensed over three years which is the term as stated in the cooperation agreement, if the distributors are actively selling the Company's products. For the years ended June 30, 2019 and 2018 the Company amortized 0 and $864,070, respectively, of the deferred assets. If a distributor breaches, defaults, or terminates the agreement with the Company within the three-year period, the outstanding unamortized portion of the amount owed will become payable to the Company immediately. The Company's Chairman, Mr. Li, guaranteed to the Company of amounts remaining unpaid due from distributors. These deferred assets are subject to annual impairment testing. The estimated amortization expense of the deferred assets for the twelve months ending June 30, 2020 is 0 since all deferred assets are fully amortized. The deferred assets consist of items inside the distributors' stores such as furniture, racks, cabinets, and display units, and items outside or attached to the distributors' stores such as signage and billboards. These types of assets would be capitalized as fixed assets if the Company actually owned the stores or utilized the assets for its own operations. These assets would also be capitalized as leasehold improvements if the Company leased these stores from the distributors. Therefore, the Company believes that under U.S. generally accepted accounting principles, these types of asset purchases are properly capitalized. In addition, the Company believes that these assets are properly classified as deferred assets because if a distributor breaches, defaults, or terminates the agreement with the Company within a three-year period, a proportionate amount expended by the Company is to be repaid by the distributor. The assets inside the distributors' stores are custom made to fit the layout of each individual store and the signage and billboards are also custom designed to fit the specific location. The assets were purchased by the Company directly from the manufacturers and installed in the distributors' stores. The Company wants to maintain control over the quality of the items being purchased as well as making them uniform among all the distributor locations. June 30, June 30, 2019 2018 Total Deferred Assets $ 0 $ 11,580,304 Less: accumulated amortization $ 0 $ (11,580,304 ) Total $ 0 $ 0 |
Intangible Assets | Intangible Assets The Company records intangible assets acquired individually or as part of a group at fair value. Intangible assets with definitive lives are amortized over the useful life of the intangible asset, which is the period over which the asset is expected to contribute directly or indirectly to the entity's future cash flows. The Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company has not recorded impairment of intangible assets as of June 30, 2019 and 2018 respectively. |
Goodwill | Goodwill Goodwill represents the excess of purchase price over the underlying net assets of businesses acquired. Goodwill is reviewed for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may be impaired. The goodwill impairment test is a two-step test. Under the first step, the fair value of the reporting unit is compared with its carrying value including goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner comparable to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. As of June 30, 2019, and 2018, the Company performed the required impairment review which resulted in no impairment adjustment. Summary of changes in goodwill by reporting segments is as follows: Balance at Foreign Balance at June 30, Additions Currency June 30, Segment 2018 /Deletion Adjustment 2019 Gufeng $ 4,838,681 $ (173,039 ) 4,665,642 Acquisition of VIE Companies 3,327,786 (119,007 ) 3,208,779 $ 8,166,467 $ $ (292,046 ) $ 7,874,421 |
Fair Value Measurement and Disclosures | Fair Value Measurement and Disclosures Our accounting for Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entity's own assumptions (unobservable inputs). The hierarchy consists of three levels: Level one — Quoted market prices in active markets for identical assets or liabilities; Level two — Inputs other than level one inputs that are either directly or indirectly observable; and Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The following table presents the Company's assets and liabilities required to be reflected within the fair value hierarchy as of June 30, 2019. Fair Value Fair Value Measurements at As of June 30, Description 2019 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability $ 18,162 $ $ 18,162 $ - The carrying values of cash and cash equivalents, trade and other receivables, trade and other payables approximate their fair values due to the short maturities of these instruments. |
Derivative financial instruments | Derivative financial instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The Company uses a binomial option pricing model to value the derivative instruments. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. At June 30, 2019, the only derivative financial instrument is the variable conversion feature embedded in the convertible notes payable (See Note 9). The fair value of the embedded conversion of $18,162 is recorded as a derivative liability at June 30, 2019. The fair value was determined using a binomial option pricing model with the following assumptions: Risk-free rate 3.1 % Volatility 214.9 % Dividend yield 0.0 % Country risk premium 90 % Liquidity risk premium 3.0 % |
Revenue recognition | Revenue recognition The Company adopted Accounting Standards Codification ("ASC") 606. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by performing the following five steps analysis: Step 1: Identify the contract Step 2: Identify the performance obligations Step 3: Determine the transaction price Step 4: Allocate the transaction price Step 5: Recognize revenue Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there were no material changes to the Company's consolidated financial statements upon adoption of ASC 606. Sales revenue is recognized on the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured. The Company's revenue consists of invoiced value of goods, net of a value-added tax (VAT). No product return or sales discount allowance are made as products delivered and accepted by customers are not returnable and sales discounts are not granted after products are delivered. |
Customer deposits | Customer deposits Payments received before all the relevant criteria for revenue recognition are satisfied are recorded as customer deposits. When all revenue recognition criteria are met, the customer deposits are recognized as revenue. As of June 30, 2019 and 2018, the Company had customer deposits of $6,514,619 and $7,251,967, respectively. |
Stock-Based Compensation | Stock-Based Compensation The costs of all employee stock options, as well as other equity-based compensation arrangements, are reflected in the consolidated financial statements based on the estimated fair value of the awards on the grant date. That cost is recognized over the period during which an employee is required to provide service in exchange for the award—the requisite service period (usually the vesting period). Stock compensation for stock granted to non-employees is determined as the fair value of the consideration received or the fair value of equity instruments issued, whichever is more reliably measured. |
Income taxes | Income taxes The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Under ASC 740, a tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended June 30, 2019 and 2018. GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. |
Foreign currency translation | Foreign currency translation The reporting currency of the Company is the US dollar. The functional currency of the Company and Green New Jersey is the US dollar. The functional currency of the Chinese subsidiaries is the Chinese Yuan or Renminbi ("RMB"). For the subsidiaries whose functional currencies are other than the US dollar, all asset and liability accounts were translated at the exchange rate on the balance sheet date; stockholders' equity is translated at the historical rates and items in the income statement and cash flow statements are translated at the average rate in each applicable period. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of shareholders' equity. The resulting translation gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency is included in the results of operations as incurred. |
Segment reporting | Segment reporting The Company utilizes the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other way management disaggregates a company. As of June 30, 2019, the Company, through its subsidiaries is engaged into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production) and Yuxing (agricultural products production) and the seven sales VIEs that the Company acquired on June 30, 2016 and January 1, 2017. As of June 30, 2019, the Company maintained four main business segments. |
Fair values of financial instruments | Fair values of financial instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are categorized based on whether the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company's financial instruments primarily consist of cash and cash equivalents, accounts receivable, other receivables, advances to suppliers, accounts payable, other payables, tax payable, and related party advances and borrowings. As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented on the balance sheets. This is attributed to the short maturities of the instruments and that interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profile at respective balance sheet dates. |
Statement of cash flows | Statement of cash flows The Company's cash flows from operations are calculated based on the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheets. |
Earnings per share | Earnings per share Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards. The components of basic and diluted earnings per share consist of the following: Years Ended June 30, 2019 2018 Net Income for Basic Earnings Per Share $ 11,590,395 $ (6,931,225 ) Basic Weighted Average Number of Shares 3,388,529 3,219,314 Net Income Per Share – Basic $ 3.42 $ (2.16 ) Net Income for Diluted Earnings Per Share $ 11,590,395 $ (6,931,225 ) Diluted Weighted Average Number of Shares 3,388,529 3,219,314 Net Income Per Share – Diluted $ 3.42 $ (2.16 ) |
Reclassification | Reclassification Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2019 consolidated financial statement presentation. Such reclassifications did not affect total revenues, operating income or net income or cash flows as previously reported. |
Recent accounting pronouncements | Recent accounting pronouncements Leases Financial Instruments - Credit Losses: 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. Income Tax: |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | Estimated Building 10-25 years Agricultural assets 8 years Machinery and equipment 5-15 years Vehicles 3-5 years |
Schedule of deferred assets | June 30, June 30, 2019 2018 Total Deferred Assets $ 0 $ 11,580,304 Less: accumulated amortization $ 0 $ (11,580,304 ) Total $ 0 $ 0 |
Schedule of changes in goodwill by reporting segments | Balance at Foreign Balance at June 30, Additions Currency June 30, Segment 2018 /Deletion Adjustment 2019 Gufeng $ 4,838,681 $ (173,039 ) 4,665,642 Acquisition of VIE Companies 3,327,786 (119,007 ) 3,208,779 $ 8,166,467 $ $ (292,046 ) $ 7,874,421 |
Schedule of assets and liabilities required to reflected within the fair value | Fair Value Fair Value Measurements at As of June 30, Description 2019 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability $ 18,162 $ $ 18,162 $ - |
Schedule of fair value using a binomial option pricing model | Risk-free rate 3.1 % Volatility 214.9 % Dividend yield 0.0 % Country risk premium 90 % Liquidity risk premium 3.0 % |
Schedule of basic and diluted earnings per share | Years Ended June 30, 2019 2018 Net Income for Basic Earnings Per Share $ 11,590,395 $ (6,931,225 ) Basic Weighted Average Number of Shares 3,388,529 3,219,314 Net Income Per Share – Basic $ 3.42 $ (2.16 ) Net Income for Diluted Earnings Per Share $ 11,590,395 $ (6,931,225 ) Diluted Weighted Average Number of Shares 3,388,529 3,219,314 Net Income Per Share – Diluted $ 3.42 $ (2.16 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | June 30, June 30, 2019 2018 Raw materials $ 102,268,620 $ 13,154,465 Supplies and packing materials $ 496,138 $ 566,254 Work in progress $ 390,708 $ 417,130 Finished goods $ 58,858,423 $ 39,646,965 Total $ 162,013,889 $ 53,784,814 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | June 30, June 30, 2019 2018 Building and improvements $ 38,877,508 $ 40,319,393 Auto 3,391,040 3,504,028 Machinery and equipment 18,125,539 18,765,192 Agriculture assets 741,044 768,528 Total property, plant and equipment 61,135,130 63,357,141 Less: accumulated depreciation (34,465,192 ) (32,462,458 ) Total $ 26,669,938 $ 30,894,683 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of intangible assets | June 30, June 30, 2019 2018 Land use rights, net $ 9,341,327 $ 9,930,420 Technology patent, net 3,004 3,570 Customer relationships, net 2,174,564 3,578,724 Non-compete agreement 436,634 659,500 Trademarks 5,925,920 6,145,700 Total $ 17,881,449 $ 20,317,914 |
Schedule of amortization expenses of intangible assets | Years Ending June 30, Expense ($) 2020 1,803,730 2021 834,921 2022 602,511 2023 564,438 2024 409,885 |
Land Use Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of intangible assets | June 30, 2018 Foreign Currency Adjustment Amortization June 30, 2019 Land use rights $ 12,308,907 (440,186 ) 11,868,721 Less: accumulated amortization (2,378,488 ) (148,906 ) (2,527,394 ) Total land use rights, net $ 9,930,419 (589,092 ) 9,341,327 |
Technology Patent [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of intangible assets | June 30, Foreign Currency June 30, 2018 Adjustment Amortization 2019 Technology know-how $ 2,281,296 (82,049 ) $ 2,199,247 Less: accumulated amortization (2,277,726 ) (81,484 ) (2,196,243 ) Total technology know-how, net $ 3,570 (565 ) $ 3,004 |
Customer Relationship [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of intangible assets | June 30, Foreign Currency June 30, 2018 Adjustment Amortization 2019 Customer relationships $ 12,039,169 (430,540 ) $ 11,608,629 Less: accumulated amortization (8,460,445 ) (973,620 ) (9,434,065 ) Total customer relationships, net $ 3,578,724 (430,540 ) (973,620 ) $ 2,174,564 |
Non-Compete Agreement [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of intangible assets | June 30, Foreign Currency June 30, 2018 Adjustment Amortization 2019 Non-compete agreement $ 1,232,680 (44,083 ) $ 1,188,597 Less: accumulated amortization (573,180 ) (178,783 ) (751,963 ) Total non-compete agreement, net $ 659,500 (44,083 ) (178,783 ) $ 436,634 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of estimated amortization expenses of lease advance payments | Years ending June 30, 2020 $ 1,954,680 2021 $ 1,954,680 2022 $ 1,954,680 2023 $ 1,954,680 2024 and thereafter $ 7,488,605 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other payables | June 30, June 30, 2019 2018 Payroll payable $ 24,891 $ 13,788 Welfare payable 149,479 155,023 Accrued expenses 6,847,041 5,368,348 Other payables 4,886,202 4,543,261 Other levy payable 122,109 126,638 Total $ 12,029,722 $ 10,207,058 |
Loan Payables (Tables)
Loan Payables (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of loan payables | No. Payee Loan period per agreement Interest Rate June 30, 1 Postal Saving Bank of China - Pinggu Branch June 3, 2019-June 2, 2020 6.31 % 2,912,000 2 Agriculture Bank -Pinggu Branch June 28, 2019-June 27, 2020 5.22 % 728,000 Total $ 3,640,000 |
Convertible Notes Payable (Tabl
Convertible Notes Payable (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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 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) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income taxes and related payables | June 30, June 30, 2019 2018 VAT provision $ (424,535 ) $ (449,140 ) Income tax payable 1,550,830 554,065 Other levies 1,220,859 836,747 Total $ 2,347,154 $ 941,672 |
Schedule of provision for income taxes | Years Ended June 30, 2019 2018 Current tax – foreign $ 6,497,340 $ 6,841,592 Repatriation Tax 0 29,010,535 $ 6,497,340 $ 35,852,127 |
Schedule of deferred income tax assets and liabilities | June 30, June 30, 2019 2018 Deferred tax assets: Net operating loss $ 15,377,180 $ 14,997,710 Total deferred tax assets 15,377,180 14,997,710 Less valuation allowance (15,377,180 ) (14,997,710 ) $ - $ - |
Schedule of effective income tax rate reconciliation | June 30, 2019 China United States 15% - 25% 21% Total Pretax income (loss) $ 19,894,737 (1,807,002 ) $ 18,087,735 Expected income tax expense (benefit) 4,973,684 25.0 % (379,470 ) 21.0 % 4,594,214 High-tech income benefits on Jinong (697,062 ) (3.5 )% - - (697,062 ) Losses from subsidiaries in which no benefit is recognized 2,220,717 11.2 % - - 2,220,717 Change in valuation allowance on deferred tax asset from US tax benefit - 379,470 (21.0 )% 379,470 Actual tax expense $ 6,497,340 32.7 % $ 0 % $ 6,497,340 35.9 % June 30, 2018 China United States 15% - 25% 27.5% Total Pretax income (loss) $ 30,338,751 (1,417,849 ) $ 28,920,902 Expected income tax expense (benefit) 7,584,688 25.0 % (389,908 ) 27.5 % 7,194,779 High-tech income benefits on Jinong (3,501,354 ) (12.0 )% - - (3,501,354 ) Losses from subsidiaries in which no benefit is recognized 2,758,258 9 % - - 2,758,258 Change in valuation allowance on deferred tax asset from US tax benefit - 389,908 (27.5 )% 389,908 Repatriation Tax 0 29,010,535 29,010,535 Actual tax expense $ 6,841,592 22.6 % $ 29,010,535 % $ 35,852,127 124.0 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Years Ended June 30, 2019 2018 Revenues from unaffiliated customers: Jinong $ 76,494,490 $ 97,722,842 Gufeng 136,285,236 112,983,573 Yuxing 10,101,051 10,485,030 Sales VIEs 71,440,026 65,862,085 Consolidated $ 294,320,803 $ 287,053,530 Operating income: Jinong $ 7,288,789 $ 23,471,811 Gufeng 14,076,655 10,151,272 Yuxing (3,435,206 ) (506,077 ) Sales VIEs 2,681,521 (1,897,364 ) Reconciling item (1) 0 0 Reconciling item (2) (1, 807,011 ) (1,417,855 ) Reconciling item (3) --stock compensation 0 0 Consolidated $ 18,804,748 $ 29,801,787 Net income: Jinong $ 5,925,025 $ 19,841,004 Gufeng 10,191,675 7,172,837 Yuxing (3,435,659 ) (484,398 ) Sales VIEs 729,023 (2,700,288 ) Reconciling item (1) 9 6 Reconciling item (2) (1,807,009 ) (30,428,390 ) Reconciling item (3) $ (12,668 ) $ (331,996 ) Consolidated $ 11,590,395 $ (6,931,225 ) Depreciation and Amortization: Jinong $ 788,787 $ 1,720,419 Gufeng 2,144,061 2,246,657 Yuxing 1,242,761 1,407,367 Sales VIEs 745,169 826,063 Consolidated $ 4,920,779 $ 6,200,506 Interest expense: Jinong 277,003 290,638 Gufeng 318,122 377,593 Yuxing 0 0 Sales VIEs 0 (76,078 ) Consolidated $ 595,125 $ 592,153 Capital Expenditure: Jinong $ 6,862 $ 7,212 Gufeng 47,096 7,800 Yuxing 9,653 5,448 Sales VIEs 0 20,655 Consolidated $ 63,610 $ 41,114 As of June 30, June 30, 2019 2018 Identifiable assets: Jinong $ 149,166,251 $ 226,335,489 Gufeng 253,149,321 168,572,947 Yuxing 35,900,242 0 Sales VIEs 42,269,307 87,567,782 Reconciling item (1) 518,158 512,622 Reconciling item (2) (2,879 ) (2,879 ) Consolidated $ 481,000,399 $ 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 loss on discontinuing sales VIE of Shenqiu Zhenbai. Total revenues from exported products currently accounted for less than 1% of the Company's total fertilizer revenues for the years ended June 30, 2019 and 2018 respectively. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of payments for lease expenses | Years ending June 30, 2020 48,257 2021 48,257 2022 48,257 2023 48,257 2024 48,257 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entities [Abstract] | |
Schedule of VIEs consolidated financial statements | June 30, June 30, 2019 2018 ASSETS Current Assets Cash and cash equivalents $ 818,312 $ 982,312 Accounts receivable, net 29,933,837 38,295,505 Inventories 19,944,011 21,133,970 Other current assets 475,001 988,051 Related party receivable (1,031 ) (359,005 ) Advances to suppliers 3,606,384 848,458 Total Current Assets 54,776,514 61,889,291 Plant, Property and Equipment, Net 9,753,039 11,206,667 Other assets 218,549 226,654 Intangible Assets, Net 10,212,668 11,348,180 Goodwill 3,208,779 3,319,732 Total Assets $ 78,169,549 $ 87,990,524 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 17,250,276 $ 25,584,614 Customer deposits 256,489 841,694 Accrued expenses and other payables 6,243,753 3,896,340 Amount due to related parties 42,680,723 43,339,286 Total Current Liabilities 66,431,241 73,661,934 Total Liabilities $ 66,431,241 73,661,934 Stockholders' equity 11,738,308 14,328,590 Total Liabilities and Stockholders' Equity $ 78,169,549 $ 87,990,524 Years Ended June 30, 2019 2018 Revenue $ 81,541,077 $ 77,351,284 Expenses 84,247,714 80,535,970 Net income $ (2,706,637 ) $ (3,184,686 ) |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule 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 |
Schedule of purchase consideration paid for VIE | Cash $ 5,568,500 Convertible notes 6,671,769 Derivative liability 144,818 $ 12,385,087 Cash $ 1,201,888 Convertible notes 1,559,350 Derivative liability 3,549 $ 2,764,787 Cash $ 461,330 Interest Payable 83,039 Convertible notes 1,724,683 Derivative liability 13,353 Total Payback $ 2,282,406 Net Loss (331,995 ) |
Restricted Net Assets (Tables)
Restricted Net Assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Restricted Net Assets [Abstract] | |
Schedule of parent company condensed balance sheets | Condensed Balance Sheets As of June 30, 2019 2018 ASSETS Current Assets: Cash and cash equivalents $ 78,406 $ 16,952 Other current assets 8,270,071 71 Total Current Assets 8,348,476 17,022 Long-term equity investment 406,084,910 400,248,804 Total long-term assets 406,084,910 400,248,804 Total Assets $ 406,163,387 $ 400,265,826 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 214,520 $ 214,520 Amount due to related parties 2,592,986 2,183,756 Other payables and accrued expenses 6,800,194 5,319,763 Total Current Liabilities 9,607,701 7,718,039 Stockholders' Equity Common stock, $.001 par value, 115,197,165 shares authorized, 3,986,912 and 38,896,945 shares issued and outstanding as of June 30, 2019 and June 30, 2018, respectively 3,987 38,897 Additional paid in capital 138,012,445 129,337,035 Accumulated other comprehensive income (19,821,211 ) (3,598,215 ) Retained earnings 278,360,465 266,770,070 Total Stockholders' Equity 396,555,686 392,547,787 Total Liabilities and Stockholders' Equity $ 406,163,387 $ 400,265,826 |
Schedule of parent company condensed statements of operations | Condensed Statements of Operations Year ended June 30, 2019 2018 Revenue $ - $ - General and administrative expenses 1,807,010 1,417,855 Interest income 9 6 Provision for tax 0 29,010,535 Equity investment in subsidiaries 13,397,397 23,497,159 Net income $ 11,590,395 $ (6,931,225 ) |
Schedule of parent company condensed statements of cash flows | Condensed Statements of Cash Flows Year Ended June 30, 2019 2018 Net cash provided by (used in) operating activities $ (8,647,776 ) $ (29,438,540 ) Net cash provided by investing activities - - Net cash provided by financing activities 8,679,230 195,013 Cash and cash equivalents, beginning balance (29,103,559 ) 139,969 Cash and cash equivalents, ending balance $ (29,072,104 ) $ (29,103,559 ) |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Agricultural assets [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 8 years |
Minimum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Minimum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Minimum [Member] | Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Maximum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 25 years |
Maximum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 15 years |
Maximum [Member] | Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Details 1) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Accounting Policies [Abstract] | ||
Total Deferred Assets | $ 0 | $ 11,580,304 |
Less: accumulated amortization | 0 | (11,580,304) |
Total | $ 0 | $ 0 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Line Items] | |
Balance at June 30, 2018 | $ 8,166,467 |
Additions/Deletion | |
Foreign Currency Adjustment | (292,046) |
Balance at June 30, 2019 | 7,874,421 |
Gufeng [Member] | |
Goodwill [Line Items] | |
Balance at June 30, 2018 | 4,838,681 |
Additions/Deletion | |
Foreign Currency Adjustment | (173,039) |
Balance at June 30, 2019 | 4,665,642 |
Acquisition of VIE Companies [Member] | |
Goodwill [Line Items] | |
Balance at June 30, 2018 | 3,327,786 |
Additions/Deletion | |
Foreign Currency Adjustment | (119,007) |
Balance at June 30, 2019 | $ 3,208,779 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies (Details 3) | Jun. 30, 2019USD ($) |
Offsetting Liabilities [Line Items] | |
Derivative liability | $ 18,162 |
Fair Value, Inputs, Level 1 [Member] | |
Offsetting Liabilities [Line Items] | |
Derivative liability | |
Fair Value, Inputs, Level 2 [Member] | |
Offsetting Liabilities [Line Items] | |
Derivative liability | 18,162 |
Fair Value, Inputs, Level 3 [Member] | |
Offsetting Liabilities [Line Items] | |
Derivative liability |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies (Details 4) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Risk-free rate | 3.10% |
Volatility | 214.90% |
Dividend yield | 0.00% |
Country risk premium | 90.00% |
Liquidity risk premium | 3.00% |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies (Details 5) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | ||
Net Income for Basic Earnings Per Share | $ 11,590,395 | $ (6,931,225) |
Basic Weighted Average Number of Shares | 3,388,529 | 3,219,314 |
Net Income Per Share - Basic | $ 3.42 | $ (2.16) |
Net Income for Diluted Earnings Per Share | $ 11,590,395 | $ (6,931,225) |
Diluted Weighted Average Number of Shares | 3,388,529 | 3,219,314 |
Net Income Per Share - Diluted | $ 3.42 | $ (2.16) |
Basis of Presentation and Su_10
Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) - USD ($) | Jun. 16, 2013 | Jun. 30, 2019 | Jun. 30, 2018 |
Basis of Presentation and Summary of Significant Accounting Policies (Textual) | |||
Aggregate cash in accounts and on hand | $ 72,178,448 | $ 150,785,737 | |
Accounts receivable | 145,190,160 | 174,460,937 | |
Allowance for doubtful accounts | 33,515,410 | 24,551,796 | |
Customer deposits | 6,514,619 | 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. | ||
Fair value of embedded conversion | 18,162 | ||
Amortization expense of deferred assets | 0 | 864,070 | |
Estimated amortization expense of the deferred assets | 0 | ||
United States [Member] | |||
Basis of Presentation and Summary of Significant Accounting Policies (Textual) | |||
Deposits in banks | $ 81,356 | $ 19,902 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 102,268,620 | $ 13,154,465 |
Supplies and packing materials | 496,138 | 566,254 |
Work in progress | 390,708 | 417,130 |
Finished goods | 58,858,423 | 39,646,965 |
Total | $ 162,013,889 | $ 53,784,814 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Inventories (Textual) | ||
Total amount of nonmonetary sales and purchases | $ 134,655,878 | $ 54,434,270 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 61,135,130 | $ 63,357,141 |
Less: accumulated depreciation | (34,465,192) | (32,462,458) |
Total | 26,669,938 | 30,894,683 |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 38,877,508 | 40,319,393 |
Auto [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 3,391,040 | 3,504,028 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 18,125,539 | 18,765,192 |
Agriculture assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 741,044 | $ 768,528 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 17,881,449 | $ 20,317,914 |
Land use rights, net [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 9,341,327 | 9,930,420 |
Technology patent, net [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 3,004 | 3,570 |
Customer relationships, net [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 2,174,564 | 3,578,724 |
Non-compete agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 436,634 | 659,500 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 5,925,920 | $ 6,145,700 |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - Land Use Rights [Member] - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Land use rights | $ 11,868,721 | $ 12,308,907 |
Less: accumulated amortization | (2,527,394) | (2,378,488) |
Total land use rights, net | 9,341,327 | $ 9,930,419 |
Foreign Currency Adjustment [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Land use rights | (440,186) | |
Total land use rights, net | (589,092) | |
Amortization [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | $ (148,906) |
Intangible Assets (Details 2)
Intangible Assets (Details 2) - Technology Patent [Member] - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Technology know-how | $ 2,199,247 | $ 2,281,296 |
Less: accumulated amortization | (2,196,243) | (2,277,726) |
Total technology know-how, net | 3,004 | $ 3,570 |
Foreign Currency Adjustmet [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Technology know-how | (82,049) | |
Amortization [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | (81,484) | |
Total technology know-how, net | $ (565) |
Intangible Assets (Details 3)
Intangible Assets (Details 3) - Customer Relationship [Member] - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Customer relationships | $ 11,608,629 | $ 12,039,169 |
Less: accumulated amortization | (9,434,065) | (8,460,445) |
Total customer relationships, net | 2,174,564 | $ 3,578,724 |
Foreign Currency Adjustment [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Customer relationships | (430,540) | |
Total customer relationships, net | (430,540) | |
Amortization[Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | (973,620) | |
Total customer relationships, net | $ (973,620) |
Intangible Assets (Details 4)
Intangible Assets (Details 4) - Non-Compete Agreement [Member] - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Non-compete agreement | $ 1,188,597 | $ 1,232,680 |
Less: accumulated amortization | (751,963) | (573,180) |
Total non-compete agreement, net | 436,634 | $ 659,500 |
Foreign Currency Adjustment [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-compete agreement | (44,083) | |
Total non-compete agreement, net | (44,083) | |
Amortization [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | (178,783) | |
Total non-compete agreement, net | $ (178,783) |
Intangible Assets (Details 5)
Intangible Assets (Details 5) | Jun. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 1,803,730 |
2021 | 834,921 |
2022 | 602,511 |
2023 | 564,438 |
2024 | $ 409,885 |
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 a land use right for approximately 88 acres (353,000 square meters or 3.8 million square feet) by the People's Government and Land & Resources Bureau of Hu County, Xi'an, Shaanxi Province. | 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 | $ | $ 10,655,721 | $ 152,290 | $ 1,060,710 | |||||||||
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 | $ | $ 996,405 | $ 192,192 | $ 996,405 | |||||||||
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 | ¥ | ¥ 6,843,439 | ¥ 6,843,439 | ¥ 1,320,000 | |||||||||
Customer Relationships [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | $ | $ 2,144,630 | $ 9,464,000 | $ 2,144,630 | |||||||||
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 | ¥ | 14,729,602 | 14,729,602 | 65,000,000 | |||||||||
Technology Patent [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | $ | $ 1,339,520 | $ 855,410 | ||||||||||
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] | Xingyulei [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | $ | $ 3,880 | |||||||||||
Technology Patent [Member] | Xindeguo [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | $ | 437 | |||||||||||
Technology Patent [Member] | RMB [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | ¥ | 9,200,000 | ¥ 5,875,068 | ||||||||||
Technology Patent [Member] | RMB [Member] | Xingyulei [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | ¥ | 26,648 | |||||||||||
Technology Patent [Member] | RMB [Member] | Xindeguo [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | ¥ | 3,000 | |||||||||||
Trademarks [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | $ | $ 4,317 | $ 5,925,920 | $ 4,317 | |||||||||
Trademarks [Member] | RMB [Member] | ||||||||||||
Intangible Assets (Textual) | ||||||||||||
Fair value of intangible assets | ¥ | ¥ 29,648 | ¥ 29,648 | ¥ 40,700,000 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) | Jun. 30, 2019USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
2020 | $ 1,954,680 |
2021 | 1,954,680 |
2022 | 1,954,680 |
2023 | 1,954,680 |
2024 and thereafter | $ 7,488,605 |
Other Non-Current Assets (Det_2
Other Non-Current Assets (Details Textual) | 1 Months Ended | 12 Months Ended |
Mar. 31, 2017CNY (¥) | Jun. 30, 2019USD ($) | |
Other Non-Current Assets (Textual) | ||
Other non-current assets, description | The balance of other non-current assets was $15,307,325, which was the lease fee advances for agriculture lands that the Company engaged in Shiquan County from 2019 to 2027. | |
Jinong [Member] | ||
Other Non-Current Assets (Textual) | ||
Lease term | 10 years | |
Description of lease | The 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 | $ | $ 2,000,000 | |
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 ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Payables and Accruals [Abstract] | ||
Payroll payable | $ 24,891 | $ 13,788 |
Welfare payable | 149,479 | 155,023 |
Accrued expenses | 6,847,041 | 5,368,348 |
Other payables | 4,886,202 | 4,543,261 |
Other levy payable | 122,109 | 126,638 |
Total | $ 12,029,722 | $ 10,207,058 |
Amount Due to Related Parties (
Amount Due to Related Parties (Details) | 1 Months Ended | 12 Months Ended | ||||
Jul. 02, 2018USD ($)ft² | Jul. 02, 2018CNY (¥)ft² | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Related Parties Transactions (Textual) | ||||||
Amount due to related parties | $ 3,641,945 | $ 3,271,619 | ||||
Amount due from related parties | 0 | 235,551 | ||||
Kingtone Information Technology Co., Ltd. [Member] | ||||||
Related Parties Transactions (Textual) | ||||||
Ground lease | ft² | 612 | 612 | ||||
Area of land | ft² | 6,588 | 6,588 | ||||
Monthly rental expenses | $ 3,588 | |||||
Effective lease term | 2 years | 2 years | ||||
Effective lease date | Jul. 1, 2018 | Jul. 1, 2018 | ||||
Kingtone Information Technology Co., Ltd. [Member] | RMB [Member] | ||||||
Related Parties Transactions (Textual) | ||||||
Monthly rental expenses | ¥ | ¥ 24,480 | |||||
Yuxing [Member] | ||||||
Related Parties Transactions (Textual) | ||||||
Amount due from related parties | 0 | 235,551 | ||||
Sale of products | 604,073 | 673,111 | ||||
Gufeng [Member] | Xi'an Techteam Science & Technology Industry (Group) Co. Ltd. [Member] | ||||||
Related Parties Transactions (Textual) | ||||||
Amount due to related parties | 1,019,200 | $ 1,057,000 | ||||
Jinong [Member] | ||||||
Related Parties Transactions (Textual) | ||||||
Amount due to related parties | $ 400,225 | |||||
Sales Agreement [Member] | ||||||
Related Parties Transactions (Textual) | ||||||
Sale of products | $ 3,712,800 | |||||
Sales Agreement [Member] | RMB [Member] | ||||||
Related Parties Transactions (Textual) | ||||||
Sale of products | ¥ | ¥ 25,500,000 |
Loan Payables (Details)
Loan Payables (Details) | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Short-term Debt [Line Items] | |
Short term loans payables | $ 3,640,000 |
Postal Saving Bank of China - Pinggu Branch [Member] | |
Short-term Debt [Line Items] | |
Loan period per agreement, Start | Jun. 3, 2019 |
Loan period per agreement, End | Jun. 2, 2020 |
Loans payable, interest rates | 6.31% |
Short term loans payables | $ 2,912,000 |
Agriculture Bank -Pinggu Branch [Member] | |
Short-term Debt [Line Items] | |
Loan period per agreement, Start | Jun. 28, 2019 |
Loan period per agreement, End | Jun. 27, 2020 |
Loans payable, interest rates | 5.22% |
Short term loans payables | $ 728,000 |
Loan Payables (Details Textual)
Loan Payables (Details Textual) | 12 Months Ended | |
Jun. 30, 2019USD ($)Loans | Jun. 30, 2018USD ($) | |
Loan Payables (Textual) | ||
Interest expense | $ | $ 318,122 | $ 592,153 |
Number of loans | Loans | 4 | |
Loans Payable [Member] | Maximum [Member] | ||
Loan Payables (Textual) | ||
Loans payable, interest rates | 6.31% | |
Loans payable, maturity date | Jun. 27, 2020 | |
Loans Payable [Member] | Minimum [Member] | ||
Loan Payables (Textual) | ||
Loans payable, interest rates | 5.22% | |
Loans payable, maturity date | Jun. 3, 2019 |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details) - 12 months ended Jun. 30, 2019 | $ / shares | CNY (¥) |
Wangtian, Lishijie, Xindeguo, Xinyulei, Jinyangguang [Member] | ||
Convertible Notes Payable (Textual) | ||
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] | ||
Convertible Notes Payable (Textual) | ||
Notional Amount | ¥ | ¥ 39,000,000 | |
Fengnong, Xiangrong [Member] | ||
Convertible Notes Payable (Textual) | ||
Issuance Date | Jan. 1, 2017 | |
Maturity Date | Dec. 31, 2019 | |
Notional Interest Rate | 3.00% | |
Conversion Price | $ / shares | $ 5 | |
Fengnong, Xiangrong [Member] | RMB [Member] | ||
Convertible Notes Payable (Textual) | ||
Notional Amount | ¥ | ¥ 12,000,000 |
Taxes Payable (Details)
Taxes Payable (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
VAT provision | $ (424,535) | $ (449,140) |
Income tax payable | 1,550,830 | 554,065 |
Other levies | 1,220,859 | 836,747 |
Total | $ 2,347,154 | $ 941,672 |
Taxes Payable (Details 1)
Taxes Payable (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Current tax - foreign | $ 6,497,340 | $ 6,841,592 |
Repatriation Tax | 29,010,535 | |
Total | $ 6,497,340 | $ 35,852,127 |
Taxes Payable (Details 2)
Taxes Payable (Details 2) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred tax assets: | ||
Net operating loss | $ 15,377,180 | $ 14,997,710 |
Total deferred tax assets | 15,377,180 | 14,997,710 |
Less valuation allowance | (15,377,180) | (14,997,710) |
Total deferred tax assets |
Taxes Payable (Details 3)
Taxes Payable (Details 3) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Taxes Payable [Line Items] | ||
Pretax income (loss) | $ 18,087,735 | $ 28,880,508 |
Expected income tax expense (benefit) | 4,594,214 | 7,194,779 |
High-tech income benefits on Jinong | (697,062) | (3,501,354) |
Losses from subsidiaries in which no benefit is recognized | 2,220,717 | 2,758,258 |
Change in valuation allowance on deferred tax asset from US tax benefit | 379,470 | 389,908 |
Repatriation Tax | 29,010,535 | |
Actual tax expense | $ 6,497,340 | $ 35,852,127 |
Actual tax expense, percentage | 35.90% | 124.00% |
China 15% - 25% [Member] | ||
Taxes Payable [Line Items] | ||
Pretax income (loss) | $ 19,894,737 | $ 30,338,751 |
Expected income tax expense (benefit) | 4,973,684 | 7,584,688 |
High-tech income benefits on Jinong | (697,062) | (3,501,354) |
Losses from subsidiaries in which no benefit is recognized | 2,220,717 | 2,758,258 |
Change in valuation allowance on deferred tax asset from US tax benefit | ||
Repatriation Tax | 0 | |
Actual tax expense | $ 6,497,340 | $ 6,841,592 |
Expected income tax expense (benefit), percentage | 25.00% | 25.00% |
High-tech income benefits on Jinong, percentage | (3.50%) | (12.00%) |
Losses from subsidiaries in which no benefit is recognized, percentage | 11.20% | 9.00% |
Actual tax expense, percentage | 32.70% | 22.60% |
United States 21% [Member] | ||
Taxes Payable [Line Items] | ||
Pretax income (loss) | $ (1,807,002) | $ (1,417,849) |
Expected income tax expense (benefit) | (379,470) | (389,908) |
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 | 379,470 | 389,908 |
Repatriation Tax | 29,010,535 | |
Actual tax expense | $ 0 | $ 29,010,535 |
Expected income tax expense (benefit), percentage | 21.00% | 27.50% |
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%) | (27.50%) |
Actual tax expense, percentage |
Taxes Payable (Details Textual)
Taxes Payable (Details Textual) - USD ($) | Mar. 20, 2019 | Apr. 04, 2018 | Apr. 28, 2017 | Jan. 01, 2008 | Dec. 22, 2017 | Jun. 30, 2019 | Jun. 30, 2018 |
Taxes Payable (Textual) | |||||||
Income tax expense (benefit) | $ 6,497,340 | $ 35,852,127 | |||||
Effective income tax rate reconciliation, percentage | 35.90% | 124.00% | |||||
Effective income tax rate reconciliation, federal | 21.00% | 27.50% | |||||
Value added tax rate | 13.00% | ||||||
Value added tax, description | The PRC State of Administration of Taxation (SAT) released Notice 2019 #39, "Announcement on Policies Concerning Deepening the Reform of Value Added Tax," under which, Effective April 1, 2019, all of the Company's fertilizer products that are produced and sold in the PRC are subject to a Chinese Value-Added Tax (VAT) of 9% of the gross sales price. The tax rate was reduced 1% from 10%. | The PRC State of Administration of Taxation (SAT) released Notice 2018 #32, "Notice on Adjustment of VAT Tax Rate," under which, effective May 1, 2018, all of the Company's fertilizer products that are produced and sold in the PRC are subject to a Chinese Value-Added Tax (VAT) of 10% of the gross sales price. The tax rate was reduced 1% from 11%. | The PRC State of Administration of Taxation (SAT) released Notice 2017 #37, "Notice on Policy of Reduced Value Added Tax Rate," under which, effective July 1, 2017, all of the Company's fertilizer products that are produced and sold in the PRC are subject to a Chinese Value-Added Tax (VAT) of 11% of the gross sales price. The tax rate was reduced 2% from 13%. | On August 10, 2015 and August 28, 2015, the SAT released Notice #90. "Reinstatement of VAT for Fertilizer Products", and Notice #97, "Supplementary Reinstatement of VAT for Fertilizer Products", which restore the VAT of 13% of the gross sales price on certain fertilizer products includes non-organic fertilizer products starting from September 1, 2015, but granted taxpayers a reduced rate of 3% from September 1, 2015 through June 30, 2016. | |||
Valuation allowance | $ 15,377,180 | $ 14,997,710 | |||||
Income tax, description | The TCJA was enacted into law, which significantly changes existing U.S. tax law and includes numerous provisions that affect our business, such as imposing a one-time transition tax on deemed repatriation of deferred foreign income, reducing the U.S. federal statutory tax rate, and adopting a territorial tax system. The TCJA required us to incur a one-time transition tax on deferred foreign income not previously subject to U.S. income tax at a rate of 15.5% for foreign cash and certain other net current assets, and 8% on the remaining income. The TCJA also reduced the U.S. federal statutory tax rate from 35% to 21% effective January 1, 2018. For fiscal year 2018, our blended U.S. federal statutory tax rate is 27.5%. This is the result of using the tax rate of 34% for the first and second quarter of fiscal year 2018 and the reduced tax rate of 21% for the third and fourth quarter of fiscal year 2018. | ||||||
Provisional net charge | 29,000,000 | ||||||
Estimated net charge | 29,000,000 | ||||||
Deferred foreign income | 29,010,535 | ||||||
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% | ||||||
Valuation allowance | 15,400,000 | ||||||
Deferred foreign income | 292,500,000 | ||||||
Enterprise Income Tax [Member] | Gufeng [Member] | |||||||
Taxes Payable (Textual) | |||||||
Income tax expense (benefit) | $ 3,482,862 | $ 2,471,593 | |||||
Effective income tax rate reconciliation, federal | 25.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Jun. 25, 2019 | May 10, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Apr. 26, 2019 | Apr. 25, 2019 |
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. | |||||
Common stock, shares issued | 3,986,912 | 3,241,413 | ||||
Common stock, shares outstanding | 3,986,912 | 3,241,413 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||
Purchase price per share | $ 1 | |||||
Sale of common stock shares | 2,270,000 | 345,680 | ||||
Proceeds from issuance of stock | $ 2,270,000 | $ 8,270,000 | $ 0 | |||
Reverse stock split, description | The Company approved the amendment to its Articles of Incorporation to effect a 1 for 12 reverse stock split. | |||||
Unamortized expense related to the grant of restricted shares of common stock | ||||||
Issuance of common stock and stock options for compensation | $ 130,000 | $ 421,730 | ||||
Private Placement Offering [Member] | ||||||
Stockholders' Equity (Textual) | ||||||
Common stock, shares issued | 6,000,000 | 6,000,000 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||
Purchase price per share | $ 1 | |||||
Registrant's [Member] | ||||||
Stockholders' Equity (Textual) | ||||||
Common stock, shares outstanding | 3,986,912 | |||||
2009 Plan [Member] | ||||||
Stockholders' Equity (Textual) | ||||||
Stock issued during period for services, shares | 650,000 | |||||
Stock issued during period for services, value | $ 370,500 |
Concentrations and Litigation (
Concentrations and Litigation (Details) | 12 Months Ended | ||
Jun. 30, 2019USD ($)Vendors | Jun. 30, 2018USD ($)VendorsCustomers | Jun. 30, 2018USD ($)Customers | |
Concentrations and Litigation (Textual) | |||
Sales revenue | $ 294,320,803 | $ 287,053,530 | |
Supplier Concentration Risk [Member] | Vendors [Member] | |||
Concentrations and Litigation (Textual) | |||
Vendor concentration, description | The Company purchased 10.8% and 10.6%, respectively, of its raw materials for fertilizer manufacturing. | ||
Number of vendor | Vendors | 2 | ||
Total purchase amount | $ 51,799,865 | ||
Supplier Concentration Risk [Member] | Vendors One [Member] | |||
Concentrations and Litigation (Textual) | |||
Vendor concentration, description | The Company purchased 8.5% and 7.1%, respectively, of its raw materials for fertilizer manufacturing | ||
Number of vendor | Vendors | 2 | ||
Total purchase amount | $ 20,020,959 | ||
Customer Concentration Risk [Member] | Customer [Member] | |||
Concentrations and Litigation (Textual) | |||
Customer concentration, description | An aggregate amount of $35,303,527, or 7.4% and 7.3%, respectively, of the Company's manufactured fertilizer sales. | ||
Number of customers | Customers | 2 | ||
Sales revenue | $ 35,303,527 | ||
Customer Concentration Risk [Member] | Customer one [Member] | |||
Concentrations and Litigation (Textual) | |||
Customer concentration, description | An aggregate amount of $34,652,664, or 7.5% and 7.3%, respectively, of the Company's manufactured fertilizer sales. | ||
Number of customers | Customers | 2 | ||
Sales revenue | $ 34,652,664 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Schedule of segment reporting information, by segment | |||
Revenues from unaffiliated customers: | $ 294,320,803 | $ 287,053,530 | |
Operating income: | 18,804,748 | 29,801,787 | |
Net income: | 11,590,395 | (6,931,225) | |
Depreciation and Amortization: | 4,920,779 | 6,200,506 | |
Interest expense: | 595,125 | 592,153 | |
Capital Expenditure: | 63,610 | 41,114 | |
Identifiable assets: | 481,000,399 | 482,985,960 | |
VIES [Member] | |||
Schedule of segment reporting information, by segment | |||
Revenues from unaffiliated customers: | 81,541,077 | 77,351,284 | |
Operating income: | 2,681,521 | (1,897,364) | |
Net income: | (2,706,637) | (3,184,686) | |
Depreciation and Amortization: | 745,169 | 826,063 | |
Interest expense: | 0 | (76,078) | |
Capital Expenditure: | 0 | 20,655 | |
Identifiable assets: | 42,269,307 | 87,567,782 | |
Reconciling item (1) [Member] | |||
Schedule of segment reporting information, by segment | |||
Operating income: | [1] | 0 | 0 |
Net income: | [1] | 9 | 6 |
Identifiable assets: | [1] | 518,158 | 512,622 |
Reconciling item (2) [Member] | |||
Schedule of segment reporting information, by segment | |||
Operating income: | [2] | (1,807,011) | (1,417,855) |
Net income: | [2] | (1,807,009) | (30,428,390) |
Identifiable assets: | [2] | (2,879) | (2,879) |
Reconciling item (3) --stock compensation [Member] | |||
Schedule of segment reporting information, by segment | |||
Operating income: | [3] | 0 | 0 |
Net income: | [3] | (12,668) | (331,996) |
Jinong [Member] | |||
Schedule of segment reporting information, by segment | |||
Revenues from unaffiliated customers: | 76,494,490 | 97,722,842 | |
Operating income: | 7,288,789 | 23,471,811 | |
Net income: | 5,925,025 | 19,841,004 | |
Depreciation and Amortization: | 788,787 | 1,720,419 | |
Interest expense: | 277,003 | 290,638 | |
Capital Expenditure: | 6,862 | 7,212 | |
Identifiable assets: | 149,166,251 | 226,335,489 | |
Gufeng [Member] | |||
Schedule of segment reporting information, by segment | |||
Revenues from unaffiliated customers: | 136,285,236 | 112,983,573 | |
Operating income: | 14,076,655 | 10,151,272 | |
Net income: | 10,191,675 | 7,172,837 | |
Depreciation and Amortization: | 2,144,061 | 2,246,657 | |
Interest expense: | 318,122 | 377,593 | |
Capital Expenditure: | 47,096 | 7,800 | |
Identifiable assets: | 253,149,321 | 168,572,947 | |
Yuxing [Member] | |||
Schedule of segment reporting information, by segment | |||
Revenues from unaffiliated customers: | 10,101,051 | 10,485,030 | |
Operating income: | (3,435,206) | (506,077) | |
Net income: | (3,435,659) | (484,398) | |
Depreciation and Amortization: | 1,242,761 | 1,407,367 | |
Interest expense: | 0 | 0 | |
Capital Expenditure: | 9,653 | 5,448 | |
Identifiable assets: | $ 35,900,242 | $ 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 loss on discontinuing sales VIE of Shenqiu Zhenbai. |
Segment Reporting (Details Text
Segment Reporting (Details Textual) | 12 Months Ended |
Jun. 30, 2019Segments | |
Segment Reporting (Textual) | |
Number of operating segments | 4 |
Number of business segments | 4 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Jun. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 48,257 |
2021 | 48,257 |
2022 | 48,257 |
2023 | 48,257 |
2024 | $ 48,257 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) | Jul. 02, 2018USD ($) | Jul. 02, 2018CNY (¥) | Jul. 02, 2018 | Feb. 29, 2004USD ($) | Feb. 29, 2004CNY (¥) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
Commitments and Contingencies (Textual) | |||||||
Monthly rent expenses | $ 48,257 | $ 53,536 | |||||
Kingtone Information [Member] | |||||||
Commitments and Contingencies (Textual) | |||||||
Monthly rent expenses | $ 3,588 | ||||||
Description of lease | Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. | ||||||
Kingtone Information [Member] | RMB [Member] | |||||||
Commitments and Contingencies (Textual) | |||||||
Monthly rent expenses | ¥ | ¥ 24,480 | ||||||
Village committee [Member] | |||||||
Commitments and Contingencies (Textual) | |||||||
Monthly rent expenses | $ 434 | ||||||
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. | 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 ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Current Assets | |||
Cash and cash equivalents | $ 72,259,804 | $ 150,805,639 | $ 123,031,537 |
Accounts receivable, net | 145,190,160 | 174,460,937 | |
Inventories | 162,013,889 | 53,784,814 | |
Related party receivable | 0 | 235,551 | |
Advances to suppliers | 32,713,817 | 25,194,463 | |
Total Current Assets | 414,954,039 | 407,426,651 | |
Plant, Property and Equipment, Net | 26,669,938 | 30,894,683 | |
Other assets | 13,352,645 | 15,885,696 | |
Intangible Assets, Net | 17,881,449 | 20,317,914 | |
Goodwill | 7,874,421 | 8,166,467 | |
Total Assets | 481,000,399 | 482,985,960 | |
Current Liabilities | |||
Accounts payable | 19,004,548 | 27,128,921 | |
Customer deposits | 6,514,619 | 7,251,967 | |
Amount due to related parties | 3,641,945 | 3,271,619 | |
Total Current Liabilities | 76,927,406 | 83,066,274 | |
Total Liabilities | 84,444,713 | 90,438,173 | |
Stockholders' equity | 396,555,686 | 392,547,786 | $ 397,528,051 |
Total Liabilities and Stockholders' Equity | 481,000,399 | 482,985,960 | |
Revenue | 294,320,803 | 287,053,530 | |
Expenses | 45,837,932 | 44,307,146 | |
Net income | 11,590,395 | (6,931,225) | |
Variable Interest Entities [Member] | |||
Current Assets | |||
Cash and cash equivalents | 818,312 | 982,312 | |
Accounts receivable, net | 29,933,837 | 38,295,505 | |
Inventories | 19,944,011 | 21,133,970 | |
Other current assets | 475,001 | 988,051 | |
Related party receivable | (1,031) | (359,005) | |
Advances to suppliers | 3,606,384 | 848,458 | |
Total Current Assets | 54,776,514 | 61,889,291 | |
Plant, Property and Equipment, Net | 9,753,039 | 11,206,667 | |
Other assets | 218,549 | 226,654 | |
Intangible Assets, Net | 10,212,668 | 11,348,180 | |
Goodwill | 3,208,779 | 3,319,732 | |
Total Assets | 42,269,307 | 87,567,782 | |
Current Liabilities | |||
Accounts payable | 17,250,276 | 25,584,614 | |
Customer deposits | 256,489 | 841,694 | |
Accrued expenses and other payables | 6,243,753 | 3,896,340 | |
Amount due to related parties | 42,680,723 | 43,339,286 | |
Total Current Liabilities | 66,431,241 | 73,661,934 | |
Total Liabilities | 66,431,241 | 73,661,934 | |
Stockholders' equity | 11,738,308 | 14,328,590 | |
Total Liabilities and Stockholders' Equity | 78,169,549 | 87,990,524 | |
Revenue | 81,541,077 | 77,351,284 | |
Expenses | 84,247,714 | 80,535,970 | |
Net income | $ (2,706,637) | $ (3,184,686) |
Business Combinations (Details)
Business Combinations (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | Nov. 30, 2017 | Jan. 01, 2017 | Jun. 30, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 7,874,421 | $ 8,166,467 | |||
Total Assets | $ 481,000,399 | $ 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) |
Business Combinations (Detail_2
Business Combinations (Details Textual) | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations (Textual) | |
Non compete agreements, description | Pursuant to the terms of certain Non-Compete Agreements dated June 30, 2016 and January 1, 2017, among Jinong and the shareholders of the sales VIE companies (the "Non-Compete Agreements"), the shareholders of the sales VIE companies agreed that during the period beginning on the initial date of their services with Jinong, and ending five (5) years after termination of their services with Jinong, without Jinong's prior written consent, they will not provide services or accept positions including but not limited to partners, directors, shareholders, managers, proxies or consultants, provided by any profit making organizations with businesses that may compete with Jinong. They will not solicit or interfere with any of the Jinong's customers, or solicit, induce, recruit or encourage any person engaged or employed by Jinong to terminate his or her service or engagement. If the shareholders of the sales VIE companies breach the non-compete obligations contained therein, Jinong is entitled to all loss and damages; if the damages are difficult to determine, remedies bore the shareholders of the sales VIE companies shall be no less than 50% of the salaries and other expenses Jinong provided in the past. |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Current Assets: | |||
Cash and cash equivalents | $ 72,259,804 | $ 150,805,639 | $ 123,031,537 |
Total Current Assets | 414,954,039 | 407,426,651 | |
Total Assets | 481,000,399 | 482,985,960 | |
Current Liabilities: | |||
Accounts payable | 19,004,548 | 27,128,921 | |
Amount due to related parties | 3,641,945 | 3,271,619 | |
Other payables and accrued expenses | 12,029,722 | 10,207,058 | |
Total Current Liabilities | 76,927,406 | 83,066,274 | |
Stockholders' Equity | |||
Common stock, $.001 par value, 115,197,165 shares authorized, 3,986,912 and 3,241,413 shares issued and outstanding as of June 30, 2019 and June 30, 2018, respectively | 3,985 | 3,241 | |
Additional paid in capital | 138,012,445 | 129,372,691 | |
Accumulated other comprehensive income | (19,821,211) | (3,598,215) | |
Retained earnings | 247,122,574 | 235,822,726 | |
Total Stockholders' Equity | 396,555,686 | 392,547,786 | $ 397,528,051 |
Total Liabilities and Stockholders' Equity | 481,000,399 | 482,985,960 | |
Parent Company [Member] | |||
Current Assets: | |||
Cash and cash equivalents | 78,406 | 16,952 | |
Other current assets | 71 | 71 | |
Total Current Assets | 78,476 | 17,022 | |
Long-term equity investment | 406,084,910 | 400,248,804 | |
Total long-term assets | 406,084,910 | 400,248,804 | |
Total Assets | 406,163,387 | 400,265,826 | |
Current Liabilities: | |||
Accounts payable | 214,520 | 214,520 | |
Amount due to related parties | 2,592,986 | 2,183,756 | |
Other payables and accrued expenses | 6,800,194 | 5,319,763 | |
Total Current Liabilities | 9,607,701 | 7,718,039 | |
Stockholders' Equity | |||
Common stock, $.001 par value, 115,197,165 shares authorized, 3,986,912 and 3,241,413 shares issued and outstanding as of June 30, 2019 and June 30, 2018, respectively | 3,987 | 3,241 | |
Additional paid in capital | 138,012,445 | 129,372,691 | |
Accumulated other comprehensive income | (19,821,211) | (3,598,215) | |
Retained earnings | 278,360,465 | 266,770,070 | |
Total Stockholders' Equity | 396,555,686 | 392,547,787 | |
Total Liabilities and Stockholders' Equity | $ 406,163,387 | $ 400,265,826 |
Restricted Net Assets (Details
Restricted Net Assets (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Restricted Net Assets [Line Items] | ||
General and administrative expenses | $ 22,571,811 | $ 24,494,654 |
Interest income | 321,645 | 502,730 |
Provision for tax | 6,497,340 | 35,852,127 |
Net income | 11,590,395 | (6,931,225) |
Parent Company [Member] | ||
Restricted Net Assets [Line Items] | ||
Revenue | ||
General and administrative expenses | 1,807,010 | 1,417,855 |
Interest income | 9 | 6 |
Provision for tax | 0 | 29,010,535 |
Equity investment in subsidiaries | 13,397,397 | 23,497,159 |
Net income | $ 11,590,395 | $ (6,931,225) |
Restricted Net Assets (Detail_2
Restricted Net Assets (Details 2) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Restricted Net Assets [Line Items] | ||
Net cash provided by (used in) operating activities | $ 28,148,489 | |
Net cash provided by investing activities | (47,395) | (55,473) |
Net cash provided by financing activities | 7,761,950 | (2,854,475) |
Parent Company [Member] | ||
Restricted Net Assets [Line Items] | ||
Net cash provided by (used in) operating activities | (8,617,776) | (29,438,540) |
Net cash provided by investing activities | ||
Net cash provided by financing activities | 8,679,230 | 195,013 |
Cash and cash equivalents, beginning balance | (29,103,559) | 139,969 |
Cash and cash equivalents, ending balance | $ (29,042,104) | $ (29,103,559) |
Restricted Net Assets (Detail_3
Restricted Net Assets (Details Textual) - $ / shares | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Restricted Net Assets (Textual) | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 115,197,165 | 115,197,165 |
Common stock, shares issued | 3,986,912 | 3,241,413 |
Common stock, shares outstanding | 3,986,912 | 3,241,413 |
Parent Company [Member] | ||
Restricted Net Assets (Textual) | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 115,197,165 | 115,197,165 |
Common stock, shares issued | 3,986,912 | 38,896,945 |
Common stock, shares outstanding | 3,986,912 | 38,896,945 |
Subsidiaries net assets, percentage | 25.00% | 25.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Aug. 19, 2019 | Aug. 16, 2019 | Aug. 15, 2019 | Aug. 13, 2019 | Jul. 02, 2019 | May 10, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||
Purchase price per share | $ 1 | |||||||
Sale of common stock shares | 2,270,000 | 345,680 | ||||||
Proceeds from issuance of stock | $ 2,270,000 | $ 8,270,000 | $ 0 | |||||
Subsequent Event [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||
Purchase price per share | $ 10 | $ 12 | $ 10 | |||||
Sale of common stock shares | 248,000 | 471,000 | 471,000 | 212,000 | 59,567 | |||
Proceeds from issuance of stock | $ 2,480,000 | $ 5,652,000 | $ 2,120,000 | $ 330,000 |