UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K/A

 

(Amendment No.1)

 

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended June 30, 2023

 

or

 

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _________ to _____________

  

Commission file number: 001-34260

 

CHINA GREEN AGRICULTURE, INC.

(Exact name of registrant as specified in its charter)

 

Nevada   36-3526027
(State or other jurisdiction of
incorporation or organization)		   (I.R.S. Employer
Identification No.)

 

Third floor, Borough A, Block A. No. 181, South Taibai Road

Xi’an, Shaanxi Province, PRC 710065

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number: +86-29-88266368

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Name of each exchange on which registered
Common Stock, $0.001 Par Value Per Share   NYSE

 

Securities registered pursuant to Section 12(g) of the Act: None.

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No ☒

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such report(s)), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

  Large accelerated filer ☐ Accelerated filer ☐
  Non-accelerated filer   ☐ Smaller reporting company ☒
  Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

 

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

 

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter: $35,543,100 as of December 31, 2022, based on the closing price $4.04 of the Company’s common stock on such date.

 

The number of outstanding shares of the registrant’s common stock on December 15, 2023, was 13,380,914.

 

DOCUMENTS INCORPORATED BY REFERENCE

 

None.

 

 

 

 

 

 

Explanatory Note

 

This Amendment No. 1 to the Annual Report on Form 10-K/A is filed as an amendment to the Annual Report on Form 10-K for the fiscal year ended June 30, 2023 filed with the Securities and Exchange Commission (the “SEC”) by China Green Agriculture, Inc. (the "Company") on November 3, 2023 (the “Form 10K”). The purpose for the Amendment No. 1 is to include the reissued audit opinion on 2022 Financial Statements by the Company’s predecessor accounting firm, SS Accounting & Auditing, Inc. (the “SS Accounting”) which had not been included with the Form 10K filed on November 3, 2023. SS Accounting has reissued its previously issued audit report on December 15, 2023 with an unqualified opinion on the Company’s balance sheet statement as of June 30, 2022 and the related statements of operations, comprehensive loss, stockholders’ equity, and cash flows for the fiscal year ended June 30, 2022, and the related notes and schedules (collectively referred to as the “2022 financial statements”). In predecessor accounting firm’s opinion, the 2022 financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2022, and the results of its operations and its cash flows for the year ended June 30, 2022, in conformity with accounting principles generally accepted in the United States of America, and the previous report on those statements is still appropriate.

 

In this Amendment No. 1, the following changes were included:

 

● We included SS Accounting’s reissued audit report dated November 10, 2022.

 

This Form 10-K/A does not reflect events that may have occurred subsequent to the original filing date of November 3, 2023 and does not modify or update in any other way disclosures made in the Form 10-K. Accordingly, this Form 10-K/A should be read in conjunction with the Form 10-K and other filings made with the Commission subsequent to the filing of the Form 10-K, including any amendments to those filings.

 

Pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as amended, this Form 10-K/A contains the complete text of Item 15, the financial statements, and the currently dated certifications of our Chief Executive Officers and Chief Financial Officer. Capitalized terms not otherwise defined have the meanings ascribed to them in the Form 10-K. Among other things, forward-looking statements made in the Original Form 10-K have not been revised to reflect events, results, or developments that have occurred or facts that have become known to us after the date of the Original Form 10-K (other than as discussed above), and such forward-looking statements should be read in their historical context.

 

 

 

 

TABLE OF CONTENTS

 

    Page
PART IV  
     
Item 15. Exhibits and Financial Statement Schedules 1
Signatures 2

   

i

 

PART IV

 

Item 15. Exhibits, Financial Statement Schedules

 

(a) The following documents are filed as part of this report:

 

(1) Financial Statements

 

The following financial statements of China Green Agriculture, Inc. and Report of Independent Registered Public Accounting Firm are presented in the “F” pages of this Report:

 

Report of Independent Registered Public Accounting Firm F-1
   
Consolidated Balance Sheets as of June 30, 2023 and 2022 F-5
   
Consolidated Statements of Operations and Other Comprehensive (Loss) for the Years ended June 30, 2023 and 2022 F-6
   
Consolidated Statements of Shareholders’ Equity for the Years ended June 30, 2023 and 2022 F-7
   
Consolidated Statements of Cash Flows for the Years ended June 30, 2023 and 2022 F-8
   
Notes to Consolidated Financial Statements F-9

 

(2) Financial Schedules

 

None. 

 

Financial statement schedules have been omitted because they are either not applicable or the required information is included in the financial statements or notes hereto.

 

(3) Exhibits

 

The exhibits listed in the accompanying index to exhibits are filed or incorporated by reference as part of this Report.

 

(b) Exhibits

 

See the Exhibit Index following the signature page of this report, which Index is incorporated herein by reference.

 

1

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  China Green Agriculture, Inc.
   
Date: December 15, 2023 By: /s/ Zhuoyu Li
    Zhuoyu Li, CEO

 

Date: December 15, 2023 By: /s/ Zhibiao Pan
    Zhibiao Pan, Co-CEO

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

December 15, 2023 /s/ Zhuoyu Li
  Zhuoyu Li, Chairman of the Board of Directors and CEO (principal executive officer)
   
December 15, 2023 /s/ Yongcheng Yang
  Yongcheng Yang, Chief Financial Officer
  (principal financial officer and principal accounting officer)
 
December 15, 2023 /s/ Shiyu Zhang
  Shiyu Zhang, Director
   
December 15, 2023 /s/ Jian Huang
  Jian Huang, Director
   
December 15, 2023 /s/ Xiaolai Li
  Xiaolai Li, Director
   
December 15, 2023 /s/ Lianfu Liu
  Lianfu Liu, Director
   
December 15, 2023 /s/ Daqing Zhu
  Daqing Zhu, Director
   
December 15, 2023 /s/ Jinjun Lu
  Jinjun Lu, Director

 

2

 

China Green Agriculture, Inc.

Exhibit Index to Annual Report on Form 10-K

For the Year Ended June 30, 2023

 

3.1   Articles of Incorporation (incorporated herein by reference to the Company’s Quarterly Report on Form 10-QSB, for the quarter ended September 30, 2007, filed with the SEC on November 9, 2007, Exhibit 3.1).
     
3.2   Certificate of Change filed with the Secretary of State of the State of Nevada on December 18, 2007 (incorporated herein by reference to the Company’s Current Report on Form 8-K filed with the SEC on January 2, 2008, Exhibit 4.2).
   
3.3   Certificate of Correction (incorporated herein by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on February 8, 2008, Exhibit 4.1).
     
3.4   Articles of Merger (incorporated herein by reference to the Company’s Current Report on Form 8-K, filed February 5, 2008, Exhibit 3.1).
     
3.5   Bylaws (incorporated herein by reference to the Company’s Quarterly Report on Form 10-QSB, for the quarter ended September 30, 2007, filed with the SEC on November 9, 2007, Exhibit 3.2).
     
3.6   Amended and Restated Bylaws (incorporated herein by reference to the Company’s Current Report on Form 8-K filed with the SEC on October 17, 2011, Exhibit 3.1).
     
3.7   Amended and Restated Bylaws (incorporated herein by reference to the Company’s Current Report on Form 8-K filed with the SEC on August 25, 2022, Exhibit 3.1).
     
4.1   Specimen Common Stock Certificate (incorporated herein by reference to the Company’s Registration Statement on Form S-3 filed with the SEC on June 8, 2009, Exhibit 4.1).
     
4.2   Form Convertible Note issued by Shaanxi Techteam Jinong Humic Acid Product Co., Ltd. (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on October 7, 2016).
     
10.3   Share Transfer Agreement, dated July 1, 2010, by and between Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., Qing Xin Jiang and Qiong Jia (Incorporated herein by reference to the Current Report on Form 8-K filed with the SEC on July 7, 2010).
     
10.4   Supplementary Agreement, dated July 1, 2010, by and between Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., Qing Xin Jiang and Qiong Jia (Incorporated herein by reference to the Current Report on Form 8-K filed with the SEC on July 7, 2010).
     
10.6   Form of Non-Competition Agreement by and between Beijing Gufeng Chemical Products Co., Ltd. and its two major former shareholders. (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on September 12, 2011).
     
10.7   Form of Restricted Stock Grant Agreement (Incorporated herein by reference to the Current Report on Form 8-K filed with the SEC on January 11, 2010).
     
10.8   Form of Non-Qualified Stock Option Grant Agreement (Incorporated herein by reference to the Current Report on Form 8- K filed with the SEC on January 11, 2010).
     
10.10   Offer Letter dated March 28, 2011 between China Green Agriculture, Inc. and Lianfu Liu. (Incorporated herein by reference to the Quarterly Report on Form 10-Q filed with the SEC on May 10, 2011).
     
10.11   Offer Letter dated October 25, 2011 between China Green Agriculture, Inc. and Yiru Shi (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on September 13, 2012).
     
10.13   Entrusted Management Agreement dated June 16, 2013 among Xi’an Hu County Yuxing Agriculture Science & Technology Co., Ltd., Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., and Ms. Chen Lixiang (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on September 17, 2015).
     
10.14   Exclusive Product Supply Agreement dated June 16, 2013 between Xi’an Hu County Yuxing Agriculture Science & Technology Co., Ltd. and Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on September 17, 2015).
     
10.15   Shareholder’s Voting Proxy Agreement dated June 16, 2013 between Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., and Ms. Chen Lixiang (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on September 17, 2015).
     
10.16   Option Agreement dated June 16, 2013 among Xi’an Hu County Yuxing Agriculture Science & Technology Co., Ltd., Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., and Ms. Chen Lixiang (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on September 17, 2015).

 

3

 

10.17   Equity Pledge Agreement dated June 16, 2013 between Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., and Ms. Chen Lixiang (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on September 17, 2015).
     
10.18   Form Entrust Management Agreement (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on October 7, 2016).
     
10.19   Form Exclusive Option Agreement (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on October 7, 2016).
     
10.20   Form Exclusive Product Supply Agreement (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on October 7, 2016).
     
10.21   Form Non-Competition Agreement (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on October 7, 2016).
     
10.22   Form Pledge of Equity Agreement (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on October 7, 2016).
     
10.23   Form Shareholder’s Voting Proxy Agreement (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on October 7, 2016).
     
10.24   Form Strategic Acquisition Contract (Incorporated herein by reference to the Annual Report on Form 10-K filed with the SEC on October 7, 2016).
     
10.25   Employment Agreement between the Company and Mr. Zhibiao Pan (incorporated herein by reference to the Company’s Current Report on Form 8-K filed with the SEC on August 23, 2022, Exhibit 10.1).
     
14.1   Amended and Restated Code of Ethics. (Incorporated herein by reference to the Quarterly Report on Form 10-Q filed with the SEC on November 12, 2010)
     
21.1   List of Subsidiaries of the Company.
     
31.1*   Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
31.2*   Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
31.3*   Certification of Principal Financial Officer and Principal Accounting Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
32.1+   Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
32.2+   Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
32.3+   Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
101.INS   Inline XBRL Instance Document
     
101.SCH   Inline XBRL Taxonomy Extension Schema Document.
     
101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document.
     
101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document.
     
101.LAB   Inline XBRL Taxonomy Extension Label Linkbase Document.
     
101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document.
     
104   Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

 

* Filed herewith

 

+ In accordance with SEC Release 33-8238, Exhibit 32.1 and 32.2 are being furnished and not filed.

 

4

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and Stockholders of China Green Agriculture, Inc.

 

Opinion on the Financial Statements

 

We have audited the accompanying consolidated balance sheets of China Green Agriculture Inc., and subsidiaries (the Company) as of June 30, 2023, the related consolidated statements of operations and comprehensive loss, stockholders’ equity, and cash flows for the year ended June 30, 2023, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2023, and the results of its operations and its cash flows for the year ended June 30, 2023, in conformity with accounting principles generally accepted in the United States of America.

 

Going Concern

 

The Company’s financial statements are prepared using the generally accepted accounting principles applicable to a going concern. As described in Note 3 to the financial statements, The Company has incurred operating losses and has negative operating cash flows in the fiscal year 2023. These factors, among others, raise a substantial doubt regarding the Company’s ability to continue as a going concern. Management’s plan regarding these matters is also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

Critical Audit Matters:

 

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements, and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

 

F-1

 

Intangible Assets Impairment Assessment

 

Critical Audit Matter Description

 

The Company has intangible assets with amount of $13,563,635 as of June 30, 2023. These intangible assets include Land Use Rights and Trademarks. The Company performed the impairment assessment of these Intangible assets subject to amortization on its elected assessment date of June 30, 2023, by assessing the recoverability and whether the asset’s carrying amount exceeds its fair value. The determination of the fair value requires management to make significant estimates and assumptions that affect the reporting unit’s expected future cash flows. These estimates and assumptions primarily include, but are not limited to, market multiples, the discount rate, operating income before depreciation and amortization, cashflows and capital expenditures forecasts for next five years.

 

We identified the impairment testing of these intangible assets subject to amortization as a critical audit matter because of significant estimates and assumptions made by the management for the assessment.

 

How the Critical Audit Matter was Addressed in the Audit

 

  ● We tested if the management meet the timing requirement of the impairment test

 

  ● We collected both external and internal source of information to evaluate if there is any significant negative change

 

  ● We tested management’s process for developing the fair value of the intangible assets subject to amortization.

 

  ● We evaluated management’s ability to accurately forecast future revenues by comparing actual results to management’s forecast.

 

  ● We evaluated the reasonableness of the qualitative adjustments for factors such as Company-specific risks, changes in current economic conditions that may not be captured in the quantitatively derived results, and other relevant factors.

 

  ● We tested the mathematical accuracy of the model used by management.

 

  ● We evaluated the reasonableness and consistency of the selected valuation methodology and assumptions utilized by the Company.

 

  ● We tested the completeness and accuracy of underlying data used in the fair value estimate.

 

  ● We evaluated the significant assumptions provided by management including discount rate by considering (i) current and past performance of the entity; (ii) their consistency with external market and industry data; and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit.

 

/s/ GAO CPA FIRM

 

We have served as the Company’s auditor since 2023

 

Frisco, Texas

 

November 2, 2023

 

PCAOB Firm ID: 6437

 

F-2

 

 

SS Accounting & Auditing, Inc.

8705 Havenwood Trail

Plano, TX 75024

Phone: + (817) 437-9479

E-Mail: saimasayani@sscpafirm.com

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

PRIOR AUDITOR’S RE-ISSUED OPINION

 

To the Board of Directors and Stockholders of China Green Agriculture, Inc.

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheet of China Green Agriculture, Inc. (the Company) as of June 30, 2022 and the related statements of operations, comprehensive loss, stockholders’ equity, and cash flows for the year ended June 30, 2022, and the related notes and schedules (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2022, and the results of its operations and its cash flows for the year ended June 30, 2022, in conformity with accounting principles generally accepted in the United States of America.

 

Emphasis of a Matter

 

The Company’s financial statements have been presented with its former 4 VIEs Lishijie, Fengnong, Jinyangguang and Wangtian as a discontinued operation.

 

Going Concern

 

The Company’s financial statements are prepared using the generally accepted accounting principles applicable to a going concern. The Company has incurred operating losses and has negative operating cash flows in the fiscal year 2022. These factors, among others, raise a substantial doubt regarding the Company’s ability to continue as a going concern. Management’s plan regarding these matters is also described. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

F-3

 

Critical Audit Matters

 

The critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

 

Land Use Rights and Trademarks Subject to Amortization - Impairment Assessment

 

Critical Audit Matter Description

 

The Company has intangible assets subject to amortization including Land Use Rights and Trademarks. As of June 30, 2022, the carrying value of Land Use Rights and Trademarks is $14,935,488. The Company performed the impairment assessment of these Intangible assets subject to amortization on its elected assessment date of June 30, 2022, by assessing the recoverability and whether the asset’s carrying amount exceeds its fair value. The determination of the fair value requires management to make significant estimates and assumptions that affect the reporting unit’s expected future cash flows. These estimates and assumptions primarily include, but are not limited to, market multiples, the discount rate, operating income before depreciation and amortization, cashflows and capital expenditures forecasts.

 

We identified the impairment testing of these intangible assets subject to amortization as a critical audit matter because of significant estimates and assumptions made by the management for the assessment.

 

How the Critical Audit Matter was Addressed in the Audit

 

●We tested management’s process for developing the fair value of the intangible assets subject to amortization.

 

●We evaluated management’s ability to accurately forecast future revenues by comparing actual results to management’s forecast.

 

●We evaluated the reasonableness of the qualitative adjustments for factors such as Company-specific risks, changes in current economic conditions that may not be captured in the quantitatively derived results, and other relevant factors.

 

●We tested the mathematical accuracy of the model used by management.

 

●We evaluated the reasonableness and consistency of the selected valuation methodology and assumptions utilized by the Company.

 

●We tested the completeness and accuracy of underlying data used in the fair value estimate.

 

  ● We evaluated the significant assumptions provided by management including discount rate by considering (i) current and past performance of the entity; (ii) their consistency with external market and industry data; and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit.

 

 

/s/ SS Accounting & Auditing, Inc.

  

FIRM ID: 6717

 

We have served as the Company’s auditor since 2020

 

Plano, Texas

 

November 10, 2022  

 

F-4

 

CHINA GREEN AGRICULTURE, INC., AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

As of June 30, 2023, and 2022

 

   2023   2022 
         
ASSETS
         
Current Assets        
Cash and cash equivalents  $71,142,188   $57,770,303 
Digital assets   210,342      
Accounts receivable, net   16,455,734    28,792,891 
Inventories, net   46,455,131    42,198,186 
Prepaid expenses and other current assets   2,603,489    4,285,198 
Amount due from related parties   27,560    13,064 
Advances to suppliers, net   14,332,715    20,711,891 
Total Current Assets   151,227,159    153,771,533 
           
Plant, property and equipment, net   16,690,245    18,870,152 
Other assets   9,784    10,600 
Other non-current assets   5,092,721    7,527,422 
Intangible assets, net   13,563,635    14,935,488 
Deferred Tax Asset   97,820    
-
 
Total Assets  $186,681,364   $195,115,195 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current Liabilities          
Accounts payable  $2,100,449   $1,670,655 
Customer deposits   5,489,781    7,994,669 
Accrued expenses and other payables   14,929,427    13,734,764 
Amount due to related parties   5,439,209    5,192,496 
Taxes payable   27,070,961    26,954,838 
Short term loans   5,346,640    4,031,100 
Interest payable   
-
    765,909 
Total Current Liabilities   60,376,467    60,344,431 
           
Long-term Liabilities          
Long-term loans   937,040    
-
 
Total Liabilities  $61,313,507   $60,344,431 
           
Commitments and Contingencies   
-
    
-
 
           
Stockholders’ Equity          
Preferred Stock, $.001 par value, 20,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2023 and June 30, 2022, respectively   
-
    
-
 
Common stock, $.001 par value, 115,197,165 shares authorized, 13,380,914  and 12,141,467 shares issued and outstanding as of June 30, 2023 and June 30, 2022, respectively   13,381    12,141 
Additional paid-in capital   242,090,576    224,676,686 
Statutory reserve   26,728,079    26,870,968 
Retained earnings   (116,513,686)   (103,374,589)
Accumulated other comprehensive income (loss)   (26,950,493)   (13,414,442)
Total Stockholders’ Equity   125,367,857    134,770,764 
           
Total Liabilities and Stockholders’ Equity  $186,681,364   $195,115,195 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

F-5

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)

FOR THE YEARS ENDED JUNE 30, 2023 AND 2022

 

   2023   2022 
Sales        
Jinong  $40,247,303   $54,339,228 
Gufeng   74,028,542    102,755,286 
Yuxing   9,654,168    11,356,390 
 Antaeus   210,342    
-
 
Net sales   124,140,355    168,450,904 
Cost of goods sold          
Jinong   28,942,247    39,651,439 
Gufeng   65,143,060    90,065,842 
Yuxing   7,981,531    9,527,341 
 Antaeus   155,224    
-
 
Cost of goods sold   102,222,062    139,244,622 
Gross profit   21,918,293    29,206,282 
Operating expenses          
Selling expenses   8,334,453    11,195,153 
General and administrative expenses   27,197,200    101,809,233 
Total operating expenses   35,531,653    113,004,386 
Loss from operations   (13,613,360)   (83,798,104)
Other income (expense)          
Other income (expense)   271,111    2,046,137 
Interest income   258,248    194,228 
Interest expense   (295,804)   (256,785)
Total other income (expense)   233,555    1,983,580 
Loss from continuing operations before income taxes   (13,379,805)   (81,814,524)
Provision for income taxes   (97,820)   (1,291,828)
Net loss from continuing operations   (13,281,985)   (80,522,696)
Net loss from discontinued operations, net of taxes   
-
    (17,841,636)
Net loss  $(13,281,985)  $(98,364,332)
           
Other comprehensive loss          
Foreign currency translation gain loss   (13,536,051)   (8,832,901)
Comprehensive loss  $(26,818,036)  $(107,197,233)
           
Basic weighted average shares outstanding   13,248,684    9,348,100 
Basic net loss per share – from continuing operations   (1.00)   (8.61)
Basic net loss earnings per share – from discontinued operations   
-
    (1.91)
Basic net loss per share  $(1.00)  $(10.52)
           
Diluted weighted average shares outstanding   13,248,684    9,348,100 
Diluted net loss per share– from continuing operations   (1.00)   (8.61)
Diluted net loss earnings per share – from discontinued operations   
-
    (1.91)
Diluted net loss per share  $(1.00)  $(10.52)

 

The accompanying notes are an integral part of these consolidated financial statements.

 

F-6

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE YEARS ENDED JUNE 30, 2023 AND 2022

 

           Additional           Accumulated
Other		   Total 
   Number Of   Common   Paid In   Statutory   Retained   Comprehensive   Stockholders’ 
   Shares   Stock   Capital   Reserve   Earnings   Loss   Equity 
BALANCE, June 30, 2022   12,141,467   $12,141   $224,676,686    26,870,968    (103,374,589)   (13,414,442)   134,770,764 
                                    
Net loss                       (13,281,985)        (13,281,985)
                                    
Issuance of stock   1,117,142    1,117    16,756,013                   16,757,130 
                                    
Issuance of stock for convertible notes                                 
-
 
                                    
Issuance of stock for consulting services   122,305    122    657,878                   658,000 
                                    
Transfer to statutory reserve                  (142,889)   142,889         
-
 
                                    
Other comprehensive (Loss)                            (13,536,051)   (13,536,051)
                                    
BALANCE, June 30, 2023   13,380,914   $13,381   $242,090,576   $26,728,079   $(116,513,686)  $(26,950,493)  $125,367,857 

 

           Additional           Accumulated
Other		   Total 
   Number Of   Common   Paid In   Statutory   Retained   Comprehensive   Stockholders’ 
   Shares   Stock   Capital   Reserve   Earnings   Loss   Equity 
BALANCE, JUNE 30, 2021   8,487,629   $8,488   $170,223,195    27,673,245    (5,812,533)   (4,581,541)   187,510,853 
                                    
Net loss                       (98,364,332)        (98,364,332)
                                    
Issuance of stock   3,601,143    3,601    54,013,544                   54,017,145 
                                    
Issuance of stock for convertible notes                                 
-
 
                                    
Issuance of stock for consulting services   52,695    53    439,947                   440,000.00 
                                    
Transfer to statutory reserve                  (802,277)   802,277         
-
 
                                    
Other comprehensive (loss)                            (8,832,901)   (8,832,901)
                                    
BALANCE, June 30, 2022   12,141,467   $12,141   $224,676,686   $26,870,968   $(103,374,589)  $(13,414,442)  $134,770,764 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

F-7

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED June 30, 2023 and 2022

 

   2023   2022 
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss  $(13,281,985)  $(98,364,332)
Adjustments to reconcile net loss to net cash used in operating activities          
Depreciation and amortization   2,403,150    3,137,560 
Provision for losses on accounts receivable   10,111,571    39,215,231 
Gain (Loss) on disposal of property, plant and equipment   
-
    34 
Inventories impairment   8,758,775    32,280,954 
Gain (Loss) on sales of discontinued operations   
-
    (1,748,951)
Changes in operating assets          
Digital Assets   (210,342)   
-
 
Accounts receivable   447,487    24,155,212 
Amount due from related parties   (16,176)   29,217 
Other current assets   525,285)   394,426 
Inventories   (16,592,290)   (18,443,105)
Advances to suppliers   4,991,682    2,017,306 
Other assets   1,935,491    2,084,133 
Deferred tax assets   (97,820)   
-
 
Changes in operating liabilities          
Accounts payable   536,882    (8,556,310)
Customer deposits   (1,971,174)   2,499,043 
Amount due to related parties   (9,971)   105,854 
Tax payables   (44,055)   (71,935)
Accrued expenses and other payables   2,260,998    1,317,447 
Interest payable   (737,630)   
-
 
Net cash used in operating activities   (990,122)   (19,948,216)
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Purchase of plant, property, and equipment   (1,371,393)   (164,278)
Change in construction in process   
-
    486,452 
Sales of discontinued operations   898,673    6,809,200 
Net cash provided by (used in) investing activities   (472,720)   7,131,374 
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceeds from the sale of common stock   16,757,130    54,017,145 
Proceeds from loans   6,587,971    4,031,100 
Repayment of loans   (3,913,520)   (4,031,100)
Other payables-investors   
-
    287,130 
Advance from related party   340,000    150,000 
Net cash provided by financing activities   19,771,581    54,454,275 
           
Effect of exchange rate change on cash and cash equivalents   (4,936,854)   (2,461,073)
Net increase (decrease) in cash and cash equivalents   13,371,885    39,176,360 
           
Cash and cash equivalents, beginning balance   57,770,303    18,593,944 
Cash and cash equivalents, ending balance  $71,142,188   $57,770,303 
           
Supplement disclosure of cash flow information          
Interest expense paid  $295,804   $256,873 
Income taxes paid   464,342    362,163 
           
SUPPLEMENT NON-CASH ACTIVITIES          
Common stock issued to repay accrued expense  $658,000   $440,000 
Nonmonetary sales and purchases   71,040,024    99,317,794 

 

The consolidated statements of cash flows are presented with the combined cash flows from discontinued operations with cash flows from continuing operations within each cash flow statement category.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

F-8

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

 

China Green Agriculture, Inc. (the “Company”, “Parent Company” or “Green Nevada”), through its subsidiaries, is engaged in the research, development, production, distribution and sale of humic acid-based compound fertilizer, compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly concentrated water-soluble fertilizers and mixed organic-inorganic compound fertilizer and the development, production, and distribution of agricultural products.

 

Unless the context indicates otherwise, as used in this Report, the following are the references herein of all the subsidiaries of the Company (i) Green Agriculture Holding Corporation (“Green New Jersey”), a wholly-owned subsidiary of Green Nevada, incorporated in the State of New Jersey; (ii) Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (“Jinong”), a wholly-owned subsidiary of Green New Jersey organized under the laws of the PRC; (iii) Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd. (“Yuxing”), a Variable Interest Entity (“VIE”) in the in the PRC controlled by Jinong through a series of contractual agreements; (iv) Beijing Gufeng Chemical Products Co., Ltd., a wholly-owned subsidiary of Jinong in the PRC (“Gufeng”), (v) Beijing Tianjuyuan Fertilizer Co., Ltd., Gufeng’s wholly-owned subsidiary in the PRC (“Tianjuyuan”), and (vi)Antaeus Tech, Inc. (“Antaeus”), a wholly-owned subsidiary of Green Nevada incorporated in the State of Delaware.

 

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.

 

On June 2, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Xindeguo, Xinyulei and Xiangrong.

 

On December 1, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Lishijie.

 

On December 31, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Fengnong.

 

On March 31, 2022, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Jinyangguang and Wangtian.

 

On March 13, 2023, the Company established Antaeus Tech Inc. (“Antaeus”) in the State of Delaware. In April 2023, Antaeus started to purchase digital assets mining machines and to mine bitcoin in West Texas.

 

Yuxing may also collectively be referred to as the “the VIE Company”.

 

F-9

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

The Company’s current corporate structure as of is set forth in the diagram below:

 

 

F-10

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

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, Yuxing and Antaeus. All significant inter-company accounts and transactions have been eliminated in consolidation.

 

For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s consolidated financial statements have been presented with its former VIEs, Lishijie, Jinyangguang, Wangtian and Fengnong as a discontinued operation.

 

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.

 

F-11

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

Use of estimates

 

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the recent outbreak of a novel strain of the COVID-19.

 

Leases

 

The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of June 30, 2023, the Company does not have any material leases for the implementation of ASC 842.

 

Cash and cash equivalents and concentration of cash

 

For statement of cash flows purposes, the Company considers all cash on hand and in banks, certificates of deposit with state owned banks in the PRC and banks in the United States, and other highly liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. The Company maintains large sums of cash in three major banks in China. The aggregate cash in such accounts and on hand as of June 30, 2023 and 2022 was $ 69,091,838 and $57,714,868, respectively. There is no insurance securing these deposits in China. In addition, the Company also had $ 2,050,350 and $55,435 in cash in three banks in the United States as of June 30, 2023 and 2022, 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.

 

F-12

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

Digital Assets

 

Digital assets are included in current assets in the condensed consolidated balance sheets. Digital assets are accounted for as indefinite-lived intangible assets, and are initially measured in accordance with FASB Accounting Standards Codification (“ASC”) Topic 350 – Intangibles-Goodwill and Other. The Company measures gains or losses on the disposition of digital assets in accordance with the first-in-first-out (“FIFO”) method of accounting.

 

Digital assets are not amortized, but are assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived intangible asset is impaired. Whenever the exchange-traded price of digital assets declines below its carrying value, the Company has determined that an impairment exists and records an impairment equal to the amount by which the carrying value exceeds the fair value.

 

As of June 30, 2023, the Company held bitcoin as digital assets with amount of $210,342. Bitcoin is classified on our balance sheet as a current asset due to the Company’s ability to sell it in a highly liquid marketplace and its intent to liquidate its Bitcoin to support operations when needed. As of June 30, 2023, the Company determined that there were no impairments of its digital assets.

 

Accounts receivable

 

Management regularly reviews the composition of accounts receivable and analyzes customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the collectability of accounts receivable at each year-end. Accounts considered uncollectible are provisioned for written off based upon management’s assessment. As of June 30, 2023, and 2022, the Company had accounts receivable of $16,455,734 and $28,792,891, net of allowance for doubtful accounts of $54,708,486 and $58,000,266, respectively. The impact of COVID-19 caused the difficulty of accounts receivable collection in the fiscal year 2023 as numerous distributors encountered significant difficulties and/or hardships in their businesses amid the pandemic. The company recorded bad debt expense in the amount of $10 million and $39 million (included bad debt expense from discontinuing operations) for the fiscal year ended June 30, 2023 and the fiscal year ended June 30, 2022, respectively. The Company adopts no policy to accept product returns post to the sales delivery.

 

Inventories

 

Inventory is valued at the lower of cost (determined on a weighted average basis) or market. Inventories consist of raw materials, work in process, finished goods and packaging materials. The Company reviews its inventories regularly for possible obsolete goods and establishes reserves when determined necessary. As of June 30, 2023, and 2022 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
Useful Life
Building  10–25 years
Agricultural assets  8 years
Machinery and equipment  5–15 years
Vehicles  3–5 years
Mining machines  5 years

 

Construction in Progress

 

Construction in progress represents the costs incurred relating to the construction of buildings or new additions to the Company’s plant facilities. Costs classified to construction in progress include all costs of obtaining the asset and bringing it to the location and condition necessary for its intended use. No depreciation is provided for construction in progress until the assets are completed and are placed into service. Interest incurred during construction is capitalized into construction in progress.

 

Long-Lived Assets

 

The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. As of June 30, 2023, and 2022 the Company determined that there were no impairments of its long-lived assets.

 

F-13

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

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, 2023 and 2022, respectively.

 

Goodwill

 

We test goodwill for impairment annually, or when events and circumstances change that would indicate the carrying amount may not be recoverable. ASC 350, “Intangibles – Goodwill and Other,” permits the assessment of qualitative factors to determine whether events and circumstances lead to the conclusion that it is necessary to perform the two-step quantitative goodwill impairment test required under ASC 350. ASC 350 also allows the option to skip the qualitative assessment and proceed directly to a quantitative assessment.

 

Under the first step, the fair value of the reporting unit is compared with its carrying value including goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner comparable to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. As of June 30, 2023, and 2022, the Company performed the required impairment review which resulted in impairment adjustment with amount of 0 in 2023 and 2022. The impairment is reported in General and administrative expenses.

 

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.

 

F-14

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter.

 

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.

 

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, 2023, and 2022, the Company had customer deposits of $5,489,781 and $7,994,669, respectively.

 

Stock-Based Compensation

 

The costs of all employee stock option, as well as other equity-based compensation arrangements, are reflected in the consolidated financial statements based on the estimated fair value of the awards on the grant date. That cost is recognized over the period during which an employee is required to provide service in exchange for the award—the requisite service period (usually the vesting period). Stock compensation for stock granted to non-employees is determined as the fair value of the consideration received or the fair value of equity instruments issued, whichever is more reliably measured.

 

F-15

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

Income taxes

 

We account for uncertain tax positions in accordance with Accounting Standards Codification, or ASC, 740, “Income Taxes.” The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of, and guidance surrounding, income tax laws and regulations change over time. Changes in our subjective assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and statements of income. See Note 12, “Taxes Payable,” of the Notes to Consolidated Financial Statements for additional detail on our uncertain tax positions and further information regarding ASC 740.

 

Foreign currency translation

 

The reporting currency of the Company is the US dollar. The functional currency of the Company and Green New Jersey is the US dollar. The functional currency of the Chinese subsidiaries is the Chinese Yuan or Renminbi (“RMB”). For the subsidiaries whose functional currencies are other than the US dollar, all asset and liability accounts were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at the historical rates and items in the income statement and cash flow statements are translated at the average rate in each applicable period. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss) 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, 2023, the Company, through its subsidiaries is engaged into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production), and Antaeus (bitcoin). As of June 30, 2023, 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.

 

F-16

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

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, 
   2023   2022 
Loss from continuing operations for Basic Earnings Per Share  $(13,281,985)  $(80,522,696)
Loss from discontinued operations for Basic Earnings Per Share   
-
    (17,841,636)
Loss for Basic Earnings Per Share   (13,281,985)   (98,364,332)
Basic Weighted Average Number of Shares   13,248,684    9,348,100 
Loss from continuing operations Per Share – Basic  $(1.00)  $(8.61)
Loss from discontinued operations Per Share – Basic  $
-
   $(1.91)
Net loss Per Share – Basic  $(1.00)  $(10.52)
Loss from continuing operations for Diluted Earnings Per Share  $(13,281,985)  $(80,522,696)
Loss from discontinued operations for Diluted Earnings Per Share  $
-
   $(17,841,636)
Loss for Diluted Earnings Per Share  $(13,281,985)  $(98,364,332)
Diluted Weighted Average Number of Shares   13,248,684    9,348,100 
Loss from continuing operations Per Share – Diluted  $(1.00)   (8.61)
Loss from discontinued operations Per Share – Diluted  $
-
   $(1.91)
Net loss Per Share – Diluted  $(1.00)  $(10.52)

 

Reclassification

 

Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2023 consolidated financial statement presentation. Such reclassifications did not affect total revenues, operating income or net income or cash flows as previously reported.

 

Recent accounting pronouncements

 

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation in certain areas. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2023, although early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its financial statements.

 

NOTE 3 – GOING CERCERN

 

The Company’s financial statements are prepared assuming that the Company will continue as a going concern. The Company has incurred operating losses and had negative operating cash flows in the fiscal year 2023 and may continue to incur operating losses and generate negative cash flows as the Company implements its future business plan. If the situation exists, there could be substantial doubt about the Company’s ability to continue as going concern.

 

To meet its working capital needs through the next twelve months and to fund the growth of the Company, the Company may consider plans to raise additional funds through the issuance of equity or borrow loan from local bank. The ability of the Company to continue as a going concern is dependent upon its ability to successfully execute its new business strategy and eventually attain profitable operations.

 

The accompanying financial statements do not include any adjustments to reflect the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as going concern.

 

F-17

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

NOTE 4 – INVENTORIES

 

Inventories consisted of the following:

 

   June 30,   June 30, 
   2023   2022 
Raw materials  $11,617,989   $7,986,436 
Supplies and packing materials  $410,904   $469,524 
Work in progress  $172,248   $198,591 
Finished goods  $34,253,990   $33,543,635 
Total  $46,455,131   $42,198,186 

 

During the year ended June 30, 2023, 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 $71,040,024 during the year ended June 30, 2023. No gain or loss incurred as the result of the nonmonetary transactions.

 

For the fiscal year ended June 30, 2023, total inventories increased $4,256,945, or 10.1%, to $46,455,131 from $42,198,186 for the fiscal year ended June 30, 2022.

 

NOTE 5 – PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment consisted of the following for the continuing entities:

 

   June 30,   June 30, 
   2023   2022 
Building and improvements  $37,065,465   $39,988,862 
Auto   2,716,931    2,892,073 
Machinery and equipment   18,608,254    18,913,581 
Total property, plant and equipment   58,390,650    61,794,515 
Less: accumulated depreciation   (41,700,404)   (42,924,364)
Total  $16,690,246   $18,870,152 

 

For the fiscal year ended June 30, 2023, total depreciation expense for the continuing entities was $2,172,096, decreased $449,841, or 17.2%, from $2,621,937 for the fiscal year ended June 30, 2022.

 

F-18

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

NOTE 6 – INTANGIBLE ASSETS AND DIGITAL ASSETS

 

Intangible assets consisted of the following:

 

   June 30,   June 30, 
   2023   2022 
Land use rights, net  $7,862,624   $8,758,704 
Technology patent, net   
-
    
-
 
Customer relationships, net   
-
    
-
 
Non-compete agreement   
-
    
-
 
Trademarks   5,701,011    6,176,784 
Total  $13,563,635   $14,935,488 

 

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 $10,084,895). 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 $144,132). 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 $1,003,887). The intangible asset is being amortized over the grant period of 50 years.

 

The Land Use Rights consisted of the following:

 

   June 30,
2022		   Foreign
Currency
Adjustment		   Amortization/
Subtraction		   June 30,
2023		 
Land use rights  $12,014,170    (925,405)   
-
    11,088,765 
Less: accumulated amortization   (3,255,466)   　    29,325    (3,226,141)
Total land use rights, net  $8,758,704    (925,405)   29,325    7,862,624 

 

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 RMB5,875,068 (or $809,584) 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 $1,267,760) and is amortized over the remaining useful life of six years using the straight-line method. As of June 30, 2023, this technology patent is fully amortized.

 

The technology know-how consisted of the following:

 

   June 30,   Foreign
Currency		   June 30, 
   2022   Adjustment   2023 
Technology know-how  $2,250,708    (173,363)  $2,077,344 
Less: accumulated amortization   (2,250,708)   173,363    (2,077,344)
Total technology know-how, net  $
-
    
-
   $
-
 

 

F-19

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

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 $8,957,000) and is amortized over the remaining useful life of ten years. As of June 30, 2023, this customer relationship is fully amortized.

 

   June 30,   Foreign
Currency		   June 30, 
   2022   Adjustment   2023 
Customer relationships  $9,704,500    (747,500)  $8,957,000 
Less: accumulated amortization   (9,704,500)   747,500    (8,957,000)
Total customer relationships, net  $
-
    
-
   $
-
 

 

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 $181,896) and is amortized over the remaining useful life of five years using the straight-line method. As of June 30, 2023, this non-compete agreement is fully amortized.

 

   June 30,   Foreign Currency   June 30, 
   2022   Adjustment   2023 
Non-compete agreement  $197,076    (15,180)  $181,896 
Less: accumulated amortization   (197,076)   15,180    (181,896)
Total non-compete agreement, net  $
-
    
-
   $
-
 

 

TRADEMARKS

 

On July 2, 2010, the Company acquired Gufeng and its wholly owned subsidiary Tianjuyuan. The preliminary fair value on the acquired trademarks and brand names was estimated to be RMB41,371,630 (or $5,701,011) and is subject to an annual impairment test.

 

    June 30,     Foreign Currency     June 30,  
    2022     Adjustment     2023  
Trademarks   $ 6,232,670       (480,078 )   $ 5,752,592  
Less: accumulated amortization     (55,886 )     4,305       (51,581 )
Total trademarks, net   $ 6,176,784       (475,773 )   $ 5,701,011  

 

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
($)		 
2024   307,807 
2025   248,563 
2026   236,935 
2027   221,431 
2028   221,431 

 

DIGITAL ASSETS

 

On March 13, 2023, the Company established Antaeus Tech Inc. (“Antaeus”) in the State of Delaware. In April 2023, Antaeus started to purchase digital assets mining machines and to mine bitcoin in West Texas. As of June 30, 2023, the company held digital assets with amount of $210,342.

 

NOTE 7 – OTHER NON-CURRENT ASSETS

 

Other non-current assets mainly include advance payments related to rent the land use for the Company. As of June 30, 2023, the balance of other non-current assets was $5,092,721, which was the rental fee advances for agriculture lands that the Company engaged in Shiquan County from 2025 to 2027.

 

In March 2017, Jinong entered into the rental agreement for approximately 3,400 mu, and 2600-hectare agriculture lands in Shiquan County, Shaanxi Province. The rental agreement was from April 2017 and was renewable for every ten-year period up to 2066. The aggregate rental fee was approximately RMB 13 million per annum, The Company had made 10-year advances of rental fee per rental terms. The Company has amortized $1.8 million as expenses for the year ended June 30, 2023 and $2.0 million as expenses for the year ended June 30, 2022.

 

F-20

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

Estimated amortization expenses of the rental advance payments herein for the next four twelve-month periods ended June 30 and thereafter are as follows:

 

Years ending June 30,    
2024  $1,849,965 
2025  $1,849,965 
2026  $1,849,965 
2027  $1,392,791 

 

NOTE 8 – ACCRUED EXPENSES AND OTHER PAYABLES

 

Accrued expenses and other payables consisted of the following:

 

   June 30,   June 30, 
   2023   2022 
Payroll and welfare payable   188,222    178,341 
Accrued expenses   9,805,444    7,636,524 
Other payables   4,820,193    5,794,686 
Other levy payable   115,568    125,213 
Total  $14,929,427   $13,734,764 

 

NOTE 9 – AMOUNT DUE TO RELATED PARTIES

 

At the end of December 2015, Yuxing entered into a sales agreement with the Company’s affiliate, 900LH.com Food Co., Ltd. (“900LH.com”, previously announced as Xi’an Gem Grain Co., Ltd) pursuant to which Yuxing is to supply various vegetables to 900LH.com for its incoming seasonal sales at the holidays and year ends (the “Sales Agreement”). The contingent contracted value of the Sales Agreement is RMB25,500,000 (approximately $3,513,900). During the year ended June 30, 2023 and 2022 Yuxing has sold approximately $0 and $66,071 products to 900LH.com.

 

The amount due from 900LH.com to Yuxing was $27,560 and $13,064 as of June 30, 2023 and 2022, respectively.

 

As of June 30, 2023, and June 30, 2022, the amount due to related parties was $5,439,209 and $5,192,496, respectively. As of June 30, 2023, and June 30, 2022, $964,600 and $1,045,100, 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, 2023, and June 30, 2022, $2,261,693  and $4,105,449, respectively were advances from Mr. Zhuoyu Li, Chairman and CEO of the Company. The advances were unsecured and non-interest-bearing.

 

As of June 30, 2023, the Company’s subsidiary, Jinong, owed 900LH.com. $995. As of June 30, 2022, the Company’s subsidiary, Jinong, owed 900LH.com. $11,431.

 

On July 1, 2022, Jinong renewed the office rental agreement with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the rental agreement, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The rental agreement provides for a two-year term effective as of July 1, 2022 with monthly rent of RMB28,000 (approximately $3,858).

 

NOTE 10 – LOAN PAYABLES

 

As of June 30, 2023, the short-term and long-term loan payables consisted of five loans which mature on dates ranging from September 29, 2023 through August 18, 2024 with interest rates ranging from 3.65% to 5.00%. No. 1 to 3 below are collateralized by Tianjuyuan’s land use right and building ownership right. Loan No. 2 is also guaranteed by the cash deposit. No. 4 to 5 below are collateralized by Jinong’s land use right and building ownership right.

 

No.   Payee   Loan period per agreement     Interest
Rate		     June 30,
2023		  
1   Beijing Bank -Pinggu Branch     June 5, 2023-June 5, 2024       4.15 %     1,378,000  
2   Huaxia Bank -HuaiRou Branch     June 28, 2023-June 28, 2024       3.65 %     1,378,000  
3   Pinggu New Village Bank     June 29, 2023-June 28, 2024       5.00 %     964,600  
4   Industrial Bank Co. Ltd     August 19, 2022-August 18, 2024       3.98 %     1,047,280  
5   Xian Bank     September 30, 2022-September 29, 2023       3.90 %     1,515,800  
    Total                   $ 6,283,680  

 

The interest expense from short-term loans was $295,804 and $256,784 for the year ended June 30, 2023 and 2022, respectively.

 

F-21

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

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 0 provision for income taxes for the years ended June 30, 2023 and 2022.

 

Value-Added Tax

 

All the Company’s fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 9 % 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”, which allows certain fertilizer products to be exempt from VAT beginning June 1, 2008. The Company submitted the application for exemption in May 2009, which was granted effective September 1, 2009, continuing through December 31, 2015. 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.

 

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,” under which, effective July 1, 2017, all 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 April 4, 2018, 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 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%.

 

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,” under which, Effective April 1, 2019, all 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%.

 

F-22

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

Income Taxes and Related Payables

 

Taxes payable consisted of the following:

 

   June 30,   June 30, 
   2023   2022 
VAT provision  $(398,499)  $(384,574)
Income tax payable   (2,132,400)   (2,310,360)
Other levies   591,325    639,237 
Repatriation tax   29,010,535    29,010,535 
Total  $27,070,961   $26,954,838 

 

The provision for income taxes consists of the following:

 

   Years Ended
June 30,		 
   2023   2022 
Current tax – foreign  $(97,820)  $(1,291,828)
Total  $(97,820)  $(1,291,828)

 

Significant components of deferred tax assets were as follows:

 

   June 30,   June 30, 
   2023   2022 
Deferred tax assets          
Deferred Tax Benefit   32,464,001    35,067,278 
Valuation allowance   (32,366,181)   (35,067,278)
Total deferred tax assets  $97,820    
-
 

 

The change in valuation allowance for the year ended June 30, 2023 was a decrease of $2,701,097 which was mainly resulted from foreign exchange rates.

 

The Company periodically evaluates the likelihood of the realization of deferred tax assets and adjusts the carrying amount of the deferred tax assets by the valuation allowance to the extent the future realization of the deferred tax assets is not judged to be more likely than not. The Company considers many factors when assessing the likelihood of future realization of its deferred tax assets, including its recent cumulative earnings experience by taxing jurisdiction, expectations of future taxable income or loss, the carryforward periods available to the Company for tax reporting purposes, and other relevant factors.

 

As of June 30, 2023, 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 be realized with the total amount of $97,820.

 

U.S. Tax Cuts and Jobs Act and Provisional Estimates

 

On December 22, 2017, the TCJA was enacted into law, which significantly changes existing U.S. tax law and includes numerous provisions that affect our business, such as imposing a one-time transition tax on deemed repatriation of deferred foreign income, reducing the U.S. federal statutory tax rate, and adopting a territorial tax system. The TCJA required us to incur a one-time transition tax on deferred foreign income not previously subject to U.S. income tax at a rate of 15.5% for foreign cash and certain other net current assets, and 8% on the remaining income. The TCJA also reduced the U.S. federal statutory tax rate from 35% to 21% effective January 1, 2018. For fiscal year 2018, our blended U.S. federal statutory tax rate is 27.5%. This is the result of using the tax rate of 34% for the first and second quarter of fiscal year 2018 and the reduced tax rate of 21% for the third and fourth quarter of fiscal year 2018. For fiscal year 2019, 2020, 2021, 2022 and 2023, our U.S. federal statutory tax rate is 21%.

 

F-23

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

Tax Rate Reconciliation

 

Our effective tax rates were approximately 0.7% and 1.3% for years ended June 30, 2023 and 2022, respectively. Substantially all the Company’s income before income taxes and related tax expense are from PRC sources. Actual income tax benefit reported in the consolidated statements of operations and comprehensive income differ from the amounts computed by applying the US statutory income tax rate of 21.0% and 21.0% to income before income taxes for the years ended June 30, 2023 and 2022 for the following reasons:

 

June 30, 2023

 

   China
15% - 25%		   United States
21%		   Total 
                         
Pretax loss  $(10,207,847)        (3,171,958)       $(13,379,805)     
                               
Expected income tax expense (benefit)   (2,551,962)   25.0%   (666,111)   21.0%   (3,218,073)     
High-tech income benefits on Jinong   
-
    
-
         
-
    
-
      
Loss from subsidiaries in which no benefit is recognized   2,454,142    (24.0)%   　    
-
    2,454,142      
Change in valuation allowance on deferred tax asset from US tax benefit   
-
    
-
    666,111    (21.0)%   666,111      
Actual tax expense  $(97,820)   1.0%  $
-
    %  $(97,820)   0.7%

 

June 30, 2022

 

   China
15% - 25%		   United States
21%		   Total 
                         
Pretax loss  $(98,939,698)        (674,813)       $(99,614,511)     
                               
Expected income tax expense (benefit)   (24,734,925)   25.0%   (141,711)   21.0%   (24,876,635)     
High-tech income benefits on Jinong   765,909    (0.8)%   
 
    
-
    765,909      
Loss from subsidiaries in which no benefit is recognized   24,010,666    (24.3)%   
　
    
-
    24,010,666      
Change in valuation allowance on deferred tax asset from US tax benefit   (1,291,828)   1.3%   141,711    (21.0)%   (1,150,117)     
Actual tax expense  $(1,250,178)   1.3%  $
-
    
%  $(1,250,178)   1.3%

 

F-24

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

NOTE 12 – STOCKHOLDERS’ EQUITY

 

Common Stock

    

On August 2, 2022, the Company completed the issuance of 1,117,142 shares of its Common Stock for $16,757,130 to P Kevin HODL Ltd, an entity owned and controlled by Mr. Zhibiao Pan, who was subsequently appointed as the Company’s co-Chief Executive Officer on August 25, 2022. This sale was made pursuant to the Share Purchase Agreement dated November 23, 2021 in transactions exempt from registration under the Securities Act of 1933, as amended, in reliance on an exemption provided by Rule 903 of Regulation S and/or Section 4(a)(2) of the Securities Act.

 

On November 25, 2022, the Company issued 122,305 shares of common stock to settle the payable of consulting services under the 2009 Plan. The value of the stock was $658,000 and was based on the fair value of the Company’s common stock on the grant date of November 12, 2022 when the Company authorized the grant.

 

As of June 30, 2023, and June 30, 2022, there were 13,380,914 and 12,141,467 shares of common stock issued and outstanding, respectively.

 

Preferred Stock

 

Under the Company’s Articles of Incorporation, the Board has the authority, without further action by stockholders, to designate up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, qualifications and restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be greater than the rights of the common stock. If the Company sells preferred stock under its registration statement on Form S-3, it will fix the rights, preferences, privileges, qualifications and restrictions of the preferred stock of each series in the certificate of designation relating to that series and will file the certificate of designation that describes the terms of the series of preferred stock the Company offers before the issuance of the related series of preferred stock.

 

As of June 30, 2023, 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.

 

NOTE 13 – STOCK OPTIONS

 

There were no issuances of stock options during the years ended June 30, 2023 and 2022.

 

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.

 

F-25

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

Vendor and Customer Concentration

 

There are six vendors that the Company purchased over 10% of its raw materials with an aggregate amount of $71,040,024, or 12.2%, 12.0%, 12.0%, 11.8%, 11.7% and 11.6%, respectively, for fertilizer manufacturing during the year ended June 30, 2023.

 

There are six vendors that the Company purchased over 10% of its raw materials with an aggregate amount of $99,101,685, or 11.9%, 11.8%, 11.6%, 11.3%, 11.1% and 10.9%, respectively, for fertilizer manufacturing during the year ended June 30, 2022.

 

Six customers accounted for an aggregate amount of $71,690,103, or 10.7%,10.4%,10.4%,10.4%,10.3%, and 10.2%, respectively, of the Company’s manufactured fertilizer sales for the year ended June 30, 2023.

 

Two customers accounted for an aggregate amount of $33,378,901, or 10.1% and 10.1%, respectively, of the Company’s manufactured fertilizer sales for the year ended June 30, 2022.

 

Litigation

 

On June 5, 2020, an individual filed suit pro se (as in, representing oneself without an attorney) in the Southern District of Florida federal court alleging violations of the Securities Exchange Act. The Company believes the action is without merit and vigorously opposed it. The company moved to dismiss the litigation and for attorney’s fees from the plaintiff. On November 2, 2020, the case was transferred to the United States District Court for The Southern District Of New York. On September 30, 2021, the Southern District of New York federal court presiding over the case dismissed all claims against the company, its executives, and its independent directors.  The dismissal was without prejudice and the plaintiff can appeal or amend within 30 days, or by October 29, 2021. The plaintiff amended the complaint on Oct 30, 2021. On August 30, 2022, the Southern District of New York federal court presiding over the case issued an order granting motions to dismiss all claims in the amended complaint against the Company, its executives, and its independent directors. On September 6, 2022, the plaintiff filed a notice of civil appeal to the U.S. Court of Appeals, Second Circuit. The appeal has now been fully briefed and the Company expects a decision to issue sometime in the coming year. 

 

There are no other actions, suits, proceedings, inquiries or investigations before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

 

NOTE 15 – SEGMENT REPORTING

 

As of June 30, 2023, 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 Antaeus (bitcoin). 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,		 
   2023   2022 
Revenues from unaffiliated customers:          
Jinong  $40,247,303   $54,339,228 
Gufeng   74,028,542    102,755,286 
Yuxing   9,654,168    11,356,390 
Antaeus   210,342    
-
 
Consolidated  $124,140,355   $168,450,904 
Operating income (expense):          
Jinong  $(4,411,893)  $(3,466,631)
Gufeng   (6,062,353)   (80,233,988)
Yuxing   499,479    581,840 
Antaeus   (465,560)     
Reconciling item (1)   
-
    
-
 
Reconciling item (2)   (3,173,033)   (679,326)
Consolidated  $(13,613,360)  $(83,798,104)

 

F-26

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

Net income (loss):        
Jinong  $(4,224,927)   (3,063,634)
Gufeng   (6,280,625)   (80,547,966)
Yuxing   763,512    722,936 
Antaeus   (367,988)   
-
 
Reconciling item (1)   1,077    4,513 
Reconciling item (2)   (3,173,034)   612,503 
Reconciling item (3)  $
-
   $1,748,951 
Consolidated  $(13,281,985)  $(80,522,696)
           
Depreciation and Amortization:          
Jinong  $785,503   $833,042 
Gufeng   761,466    816,510 
Yuxing   839,514    1,280,938 
Antaeus   16,667    
-
 
Consolidated  $2,403,150   $2,930,490 
Interest expense:          
Jinong   78,342    
-
 
Gufeng   217,462    256,784 
Yuxing   
-
    
-
 
Antaeus   
-
    
-
 
Consolidated  $295,804   $256,784 
           
Capital Expenditure:          
Jinong  $52,664   $97,900 
Gufeng   216,892    29,308 
Yuxing   101,837    37,069 
Antaeus   1,000,000    
-
 
Consolidated  $1,371,393   $164,278 

 

   As of 
   June 30,   June 30, 
   2023   2022 
Identifiable assets:        
Jinong  $87,862,836   $100,958,241 
Gufeng   49,749,041    80,923,101 
Yuxing   38,223,482    40,132,337 
Antaeus   3,292,247    
-
 
Reconciling item (1)   7,387,637    (27,064,606)
Reconciling item (2)   166,121    166,121 
Consolidated  $186,681,364   $195,115,195 

 

(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 gain on discontinuing sales VIEs and the intercompany transaction clearing.

 

Total revenues from exported products currently accounted for less than 1% of the Company’s total fertilizer revenues for the years ended June 30, 2023 and 2022, respectively.

 

F-27

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

NOTE 16 – COMMITMENTS AND CONTINGENCIES

 

We are subject to various claims and contingencies related to lawsuits, certain taxes and environmental matters, as wells commitments under contractual and other commercial obligations. We recognize liabilities for commitments and contingencies when a loss is probable and estimable.

 

On July 1, 2020, Jinong signed an office rental agreement with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as its Chairman. Pursuant to the rental agreement, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The rental agreement provides for a two-year term effective as of July 1, 2022 with monthly rent of RMB28,000 (approximately $3,858).

 

In February 2004, Tianjuyuan signed a fifty-year rental agreement with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District.

 

On April 2, 2023, Antaeus signed a one-year rental agreement for an office in Austin, Texas for approximately 404 square meters (4,348 square feet) space.

 

Accordingly, the Company recorded an aggregate of $51,192 and $97,307 as rent expenses for the years ended June 30, 2023 and 2022, respectively. The contingent rent expenses herein for the next five years ended June 30, are as follows:

 

Years ending June 30,    
2024   55,392 
2025   55,392 
2026   55,392 
2027   55,392 
2028   55,392 

 

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 most of the risk of loss from the activities of Yuxing, thereby enabling the Company, through Jinong, to receive a majority of Yuxing expected residual returns.

 

On June 30, 2016 and January 1, 2017, the Company, through its wholly owned subsidiary Jinong, entered into strategic acquisition agreements and into a series of contractual agreements to qualify as VIEs with the shareholders of the sales VIE Companies.

 

Jinong, the sales VIE Companies, and the shareholders of the sales VIE Companies also entered into a series of contractual agreements for the sales VIE Companies to qualify as VIEs (the “VIE Agreements”).

 

F-28

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

On November 30, 2017, the Company, through its wholly owned subsidiary Jinong, exited the VIE agreements with the shareholders of Zhenbai.

 

On June 2, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Xindeguo, Xinyulei and Xiangrong.

 

On December 1, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Lishijie.

 

On December 31, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Fengnong.

 

On March 31, 2022, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Jinyangguang and Wangtian.

 

As a result of these contractual arrangements, with Yuxing and the sales VIE Companies the Company is entitled to substantially all the economic benefits of Yuxing and the VIE Companies. The following financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements as of June 30, 2023 and June 30, 2022:

 

   June 30,   June 30, 
   2023   2022 
         
ASSETS        
Current Assets        
Cash and cash equivalents  $323,854   $385,308 
Accounts receivable, net   283,221    710,143 
Inventories   24,288,379    22,062,527 
Other current assets   108,677    22,932 
Related party receivable   27,560    13,064.00 
Advances to suppliers   
-
    1,879,704 
Total Current Assets   25,031,691    25,073,678 
           
Plant, Property and Equipment, Net   5,887,278    6,926,023 
Other assets   9,784    10,600 
Intangible Assets, Net   7,294,729    8,122,036 
    -      
Total Assets  $38,223,482   $40,132,337 
    -      
LIABILITIES AND STOCKHOLDERS’ EQUITY   -      
Current Liabilities   -      
Accounts payable  $12,512   $107,095 
Customer deposits   62,134    10,016 
Accrued expenses and other payables   282,968    306,116 
Amount due to related parties   39,346,051    42,105,604 
Total Current Liabilities   39,703,665    42,528,831 
Total Liabilities  $39,703,665    42,528,831 
           
Stockholders’ equity   (1,480,183)   (2,396,494)
    　      
Total Liabilities and Stockholders’ Equity  $38,223,482   $40,132,337 

 

    Years Ended
June 30,		  
    2023     2022  
Revenue   $ 9,654,168     $ 11,356,390  
Expenses     8,890,656       10,633,454  
Net income   $ 763,512     $ 722,936  

 

F-29

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

NOTE 18 – 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, 2023 and 2022 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 they are as follows.

 

Parent Company Financial Statements

 

PARENT COMPANY FINANCIAL INFORMATION OF CHINA GREEN AGRICULTURE, INC.

 

Condensed Balance Sheets

 

   As of June 30, 
   2023   2022 
ASSETS        
Current Assets:        
Cash and cash equivalents  $49,598   $52,485 
Other current assets   169,071    169,071 
Total Current Assets   218,668    221,555 
           
Long-term equity investment   139,569,715    146,457,664 
Total long-term assets   139,569,715    146,457,664 
Total Assets  $139,788,383   $146,679,219 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current Liabilities:          
Accounts payable  $214,520   $214,520 
Amount due to related parties   4,445,449    4,105,449 
Other payables and accrued expenses   9,760,556    7,588,486 
Total Current Liabilities   14,420,526    11,908,455 
           
Stockholders’ Equity          
Common stock, $.001 par value, 115,197,165 shares authorized, 13,380,914 and 12,141,467 shares issued and outstanding as of June 30, 2023 and June 30, 2022, respectively   13,381    12,141 
Additional paid in capital   242,090,576    224,676,686 
Accumulated other comprehensive (loss)   (26,950,493)   (13,414,442)
Retained earnings   (89,785,607)   (76,503,621)
Total Stockholders’ Equity   125,367,857    134,770,764 
Total Liabilities and Stockholders’ Equity  $139,788,383   $146,679,219 

 

F-30

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

 

Condensed Statements of Operations

 

    Year ended
June 30,		  
    2023     2022  
Revenue   $ -     $ -  
General and administrative expenses     3,173,034       679,326  
Interest income     1,076       4,513  
Provision for tax     -       (1,291,828 )
Equity investment in subsidiaries     (10,110,028 )     (98,981,348 )
Net income   $ (13,281,986 )   $ (98,364,333 )

 

Condensed Statements of Cash Flows

 

    Year Ended
June 30,		  
    2023     2022  
Net cash used in operating activities   $ (17,100,265 )   $ (54,476,955 )
Net cash provided by investing activities     2,001,000       -  
Net cash provided by financing activities     17,097,130       54,454,275  
Cash and cash equivalents, beginning balance     52,484       75,165  
Cash and cash equivalents, ending balance   $ 2,050,350     $ 52,484  

 

Notes to Condensed Parent Company Financial Information

 

As of June 30, 2023, and 2022, 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.

 

NOTE 19 – SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to June 30, 2023 to the date these consolidated financial statements were available to be issued and has determined that there were below significant subsequent events or transactions that would require recognition or disclosure in the consolidated financial statements.

 

On August 10, 2023, our Board of Directors adopted the Company’s 2023 Equity Incentive Plan. The 2023 Plan gives us the ability to grant stock options, stock appreciation rights (SARs), restricted stock and other stock-based awards (collectively, “Awards”) to employees or consultants of our company or of any subsidiary of our company and to non-employee members of our advisory board or our Board of Directors or the board of directors of any of our subsidiaries. Our Board of Directors believes that adoption of the Incentive Plan is in the best interests of our company and our stockholders because the ability to grant stock options and make other stock-based awards under the Incentive Plan is an important factor in attracting, stimulating and retaining qualified and distinguished personnel with proven ability and vision to serve as employees, officers, consultants or members of the Board of Directors or advisory board of our company and our subsidiaries, and to chart our course towards continued growth and financial success. Therefore, our Board of Directors believes the Incentive Plan will be a key component of our compensation program.

 

As of November 2, 2023, 2,759,011 shares of our common stock remained available for future grants under the Plans and no Awards had been granted under the 2023 Plan.

 

F-31

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Exhibit 21.1

 

SUBSIDIAIRES OF CHINA GREEN AGRICULTURE, INC.

 

Name   Place of Incorporation
Green Agriculture Holding Corporation   New Jersey
Antaeus Tech Inc.   Delaware
Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd.   People’s Republic of China
Beijing Gufeng Chemical Products Co., Ltd.   People’s Republic of China
Beijing Tianjuyuan Fertilizer Co., Ltd.   People’s Republic of China

 

VARIABLE INTEREST ENTITIES OF CHINA GREEN AGRICULTURE, INC.

 

Name   Place of Incorporation
Xi’an Hu County Yuxing Agriculture Technology Development Co, Ltd.   People’s Republic of China
     
     
     
     

 

 

Exhibit 31.1

 

CERTIFICATION

 

I, Zhuoyu Li, certify that:

 

1.I have reviewed this report on Form 10-K of China Green Agriculture, Inc.;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

 

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

 

a)all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: December 15, 2023

 

/s/ Zhuoyu Li  
Zhuoyu Li  
Chairman of the Board of Directors,
Chief Executive Officer, and President		  
(principal executive officer)  

Exhibit 31.2

 

CERTIFICATION

 

I, Zhibiao Pan, certify that:

 

1.I have reviewed this report on Form 10-K of China Green Agriculture, Inc.;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

 

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

 

a)all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: December 15, 2023

 

/s/ Zhibiao Pan  
Zhibiao Pan  
Co-Chief Executive Officer  
(principal executive officer)  

Exhibit 31.3

 

CERTIFICATION

 

I, Yongcheng Yang, certify that:

 

1.I have reviewed this report on Form 10-K of China Green Agriculture, Inc.;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

 

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

 

a)all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: December 15, 2023

 

/s/ Yongcheng Yang  
Yongcheng Yang  
Chief Financial Officer  
(principal financial officer
and principal accounting officer)		  

Exhibit 32.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned hereby certifies, in his capacity as the Chairman of the Board of Directors, Chief Executive Officer, and President of China Green Agriculture, Inc. (the “Company”), for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

 

(1)The Annual Report of the Company on Form 10-K for the fiscal year ended June 30, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: December 15, 2023

 

/s/ Zhuoyu Li  
Zhuoyu Li  

Chairman of the Board of Directors,

Chief Executive Officer, and President

  
(principal executive officer)  

 

Exhibit 32.2

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned hereby certifies, in his capacity as the Co-Chief Executive Officer of China Green Agriculture, Inc. (the “Company”), for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

 

(1)The Annual Report of the Company on Form 10-K for the fiscal year ended June 30, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: December 15, 2023

 

/s/ Zhibiao Pan  
Zhibiao Pan  
Co-Chief Executive Officer  
(principal executive officer)  

 

Exhibit 32.3

 

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned hereby certifies, in his capacity as the Chief Financial Officer of China Green Agriculture, Inc. (the “Company”), for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

 

(1)The Annual Report of the Company on Form 10-K for the fiscal year ended June 30, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: December 15, 2023

 

/s/ Yongcheng Yang  
Yongcheng Yang  
Chief Financial Officer  
(principal financial officer)  

 

v3.23.3
Document And Entity Information - USD ($)
 12 Months Ended
Jun. 30, 2023
Dec. 15, 2023
Dec. 31, 2022
Document Information Line Items      
Entity Registrant Name CHINA GREEN AGRICULTURE, INC.    
Document Type 10-K/A    
Current Fiscal Year End Date --06-30    
Entity Common Stock, Shares Outstanding   13,380,914  
Entity Public Float     $ 35,543,100
Amendment Flag true    
Amendment Description This Amendment No. 1 to the Annual Report on Form 10-K/A is filed as an amendment to the Annual Report on Form 10-K for the fiscal year ended June 30, 2023 filed with the Securities and Exchange Commission (the “SEC”) by China Green Agriculture, Inc. (the "Company") on November 3, 2023 (the “Form 10K”). The purpose for the Amendment No. 1 is to include the reissued audit opinion on 2022 Financial Statements by the Company’s predecessor accounting firm, SS Accounting & Auditing, Inc. (the “SS Accounting”) which had not been included with the Form 10K filed on November 3, 2023. SS Accounting has reissued its previously issued audit report on December 15, 2023 with an unqualified opinion on the Company’s balance sheet statement as of June 30, 2022 and the related statements of operations, comprehensive loss, stockholders’ equity, and cash flows for the fiscal year ended June 30, 2022, and the related notes and schedules (collectively referred to as the “2022 financial statements”). In predecessor accounting firm’s opinion, the 2022 financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2022, and the results of its operations and its cash flows for the year ended June 30, 2022, in conformity with accounting principles generally accepted in the United States of America, and the previous report on those statements is still appropriate.In this Amendment No. 1, the following changes were included: ● We included SS Accounting’s reissued audit report dated November 10, 2022. This Form 10-K/A does not reflect events that may have occurred subsequent to the original filing date of November 3, 2023 and does not modify or update in any other way disclosures made in the Form 10-K. Accordingly, this Form 10-K/A should be read in conjunction with the Form 10-K and other filings made with the Commission subsequent to the filing of the Form 10-K, including any amendments to those filings.Pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as amended, this Form 10-K/A contains the complete text of Item 15, the financial statements, and the currently dated certifications of our Chief Executive Officers and Chief Financial Officer. Capitalized terms not otherwise defined have the meanings ascribed to them in the Form 10-K. Among other things, forward-looking statements made in the Original Form 10-K have not been revised to reflect events, results, or developments that have occurred or facts that have become known to us after the date of the Original Form 10-K (other than as discussed above), and such forward-looking statements should be read in their historical context.    
Entity Central Index Key 0000857949    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Filer Category Non-accelerated Filer    
Entity Well-known Seasoned Issuer No    
Document Period End Date Jun. 30, 2023    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Entity Small Business true    
Entity Emerging Growth Company false    
Entity Shell Company false    
ICFR Auditor Attestation Flag false    
Document Annual Report true    
Document Transition Report false    
Entity File Number 001-34260    
Entity Incorporation, State or Country Code NV    
Entity Tax Identification Number 36-3526027    
Entity Address, Address Line One Third floor    
Entity Address, Address Line Two Borough A, Block A    
Entity Address, Address Line Three No. 181, South Taibai Road    
Entity Address, City or Town Xi’an    
Entity Address, Country CN    
Entity Address, Postal Zip Code 710065    
City Area Code +86    
Local Phone Number 29-88266368    
Title of 12(b) Security Common Stock, $0.001 Par Value Per Share    
Security Exchange Name NYSE    
Entity Interactive Data Current Yes    
Document Financial Statement Error Correction [Flag] false    
Auditor Name GAO CPA FIRM    
Auditor Location Frisco, Texas    
Auditor Firm ID 6437    
No Trading Symbol Flag true    
v3.23.3
Consolidated Balance Sheets - USD ($)
Jun. 30, 2023
Jun. 30, 2022
Current Assets    
Cash and cash equivalents $ 71,142,188 $ 57,770,303
Digital assets 210,342  
Accounts receivable, net 16,455,734 28,792,891
Inventories, net 46,455,131 42,198,186
Prepaid expenses and other current assets 2,603,489 4,285,198
Amount due from related parties 27,560 13,064
Advances to suppliers, net 14,332,715 20,711,891
Total Current Assets 151,227,159 153,771,533
Plant, property and equipment, net 16,690,245 18,870,152
Other assets 9,784 10,600
Other non-current assets 5,092,721 7,527,422
Intangible assets, net 13,563,635 14,935,488
Deferred Tax Asset 97,820
Total Assets 186,681,364 195,115,195
Current Liabilities    
Accounts payable 2,100,449 1,670,655
Customer deposits 5,489,781 7,994,669
Accrued expenses and other payables 14,929,427 13,734,764
Amount due to related parties 5,439,209 5,192,496
Taxes payable 27,070,961 26,954,838
Short term loans 5,346,640 4,031,100
Interest payable 765,909
Total Current Liabilities 60,376,467 60,344,431
Long-term Liabilities    
Long-term loans 937,040
Total Liabilities 61,313,507 60,344,431
Commitments and Contingencies
Stockholders’ Equity    
Preferred Stock, $.001 par value, 20,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2023 and June 30, 2022, respectively
Common stock, $.001 par value, 115,197,165 shares authorized, 13,380,914 and 12,141,467 shares issued and outstanding as of June 30, 2023 and June 30, 2022, respectively 13,381 12,141
Additional paid-in capital 242,090,576 224,676,686
Statutory reserve 26,728,079 26,870,968
Retained earnings (116,513,686) (103,374,589)
Accumulated other comprehensive income (loss) (26,950,493) (13,414,442)
Total Stockholders’ Equity 125,367,857 134,770,764
Total Liabilities and Stockholders’ Equity $ 186,681,364 $ 195,115,195
v3.23.3
Consolidated Balance Sheets (Parentheticals) - $ / shares
Jun. 30, 2023
Jun. 30, 2022
Statement of Financial Position [Abstract]    
Preferred stock, par value (in Dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized 20,000,000 20,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in Dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 115,197,165 115,197,165
Common stock, shares issued 13,380,914 12,141,467
Common stock, shares outstanding 13,380,914 12,141,467
v3.23.3
Consolidated Statements of Operations and Comprehensive (Loss) - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Sales    
Net sales $ 124,140,355 $ 168,450,904
Cost of goods sold    
Cost of goods sold 102,222,062 139,244,622
Gross profit 21,918,293 29,206,282
Operating expenses    
Selling expenses 8,334,453 11,195,153
General and administrative expenses 27,197,200 101,809,233
Total operating expenses 35,531,653 113,004,386
Loss from operations (13,613,360) (83,798,104)
Other income (expense)    
Other income (expense) 271,111 2,046,137
Interest income 258,248 194,228
Interest expense (295,804) (256,785)
Total other income (expense) 233,555 1,983,580
Loss from continuing operations before income taxes (13,379,805) (81,814,524)
Provision for income taxes (97,820) (1,291,828)
Net loss from continuing operations (13,281,985) (80,522,696)
Net loss from discontinued operations, net of taxes (17,841,636)
Net loss (13,281,985) (98,364,332)
Other comprehensive loss    
Foreign currency translation gain loss (13,536,051) (8,832,901)
Comprehensive loss $ (26,818,036) $ (107,197,233)
Basic weighted average shares outstanding (in Shares) 13,248,684 9,348,100
Basic net loss per share – from continuing operations (in Dollars per share) $ (1) $ (8.61)
Basic net loss earnings per share – from discontinued operations (in Dollars per share) (1.91)
Basic net loss per share (in Dollars per share) $ (1) $ (10.52)
Diluted weighted average shares outstanding (in Shares) 13,248,684 9,348,100
Diluted net loss per share– from continuing operations (in Dollars per share) $ (1) $ (8.61)
Diluted net loss earnings per share – from discontinued operations (in Dollars per share) (1.91)
Diluted net loss per share (in Dollars per share) $ (1) $ (10.52)
Jinong    
Sales    
Net sales $ 40,247,303 $ 54,339,228
Cost of goods sold    
Cost of goods sold 28,942,247 39,651,439
Gufeng    
Sales    
Net sales 74,028,542 102,755,286
Cost of goods sold    
Cost of goods sold 65,143,060 90,065,842
Yuxing    
Sales    
Net sales 9,654,168 11,356,390
Cost of goods sold    
Cost of goods sold 7,981,531 9,527,341
Antaeus    
Sales    
Net sales 210,342
Cost of goods sold    
Cost of goods sold $ 155,224
v3.23.3
Consolidated Statements of Stockholders’ Equity - USD ($)
Common Stock
Additional Paid In Capital
Statutory Reserve
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Total
BALANCE at Jun. 30, 2021 $ 8,488 $ 170,223,195 $ 27,673,245 $ (5,812,533) $ (4,581,541) $ 187,510,853
BALANCE (in Shares) at Jun. 30, 2021 8,487,629          
Net loss       (98,364,332)   (98,364,332)
Issuance of stock $ 3,601 54,013,544       54,017,145
Issuance of stock (in Shares) 3,601,143          
Issuance of stock for convertible notes          
Issuance of stock for consulting services $ 53 439,947       440,000
Issuance of stock for consulting services (in Shares) 52,695          
Transfer to statutory reserve     (802,277) 802,277  
Other comprehensive (Loss)         (8,832,901) (8,832,901)
BALANCE at Jun. 30, 2022 $ 12,141 224,676,686 26,870,968 (103,374,589) (13,414,442) 134,770,764
BALANCE (in Shares) at Jun. 30, 2022 12,141,467          
Net loss       (13,281,985)   (13,281,985)
Issuance of stock $ 1,117 16,756,013       16,757,130
Issuance of stock (in Shares) 1,117,142          
Issuance of stock for convertible notes          
Issuance of stock for consulting services $ 122 657,878       658,000
Issuance of stock for consulting services (in Shares) 122,305          
Transfer to statutory reserve     (142,889) 142,889  
Other comprehensive (Loss)         (13,536,051) (13,536,051)
BALANCE at Jun. 30, 2023 $ 13,381 $ 242,090,576 $ 26,728,079 $ (116,513,686) $ (26,950,493) $ 125,367,857
BALANCE (in Shares) at Jun. 30, 2023 13,380,914          
v3.23.3
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (13,281,985) $ (98,364,332)
Adjustments to reconcile net loss to net cash used in operating activities    
Depreciation and amortization 2,403,150 3,137,560
Provision for losses on accounts receivable 10,111,571 39,215,231
Gain (Loss) on disposal of property, plant and equipment 34
Inventories impairment 8,758,775 32,280,954
Gain (Loss) on sales of discontinued operations (1,748,951)
Changes in operating assets    
Digital Assets (210,342)
Accounts receivable 447,487 24,155,212
Amount due from related parties (16,176) 29,217
Other current assets 525,285 394,426
Inventories (16,592,290) (18,443,105)
Advances to suppliers 4,991,682 2,017,306
Other assets 1,935,491 2,084,133
Deferred tax assets (97,820)
Changes in operating liabilities    
Accounts payable 536,882 (8,556,310)
Customer deposits (1,971,174) 2,499,043
Amount due to related parties (9,971) 105,854
Tax payables (44,055) (71,935)
Accrued expenses and other payables 2,260,998 1,317,447
Interest payable (737,630)
Net cash used in operating activities (990,122) (19,948,216)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of plant, property, and equipment (1,371,393) (164,278)
Change in construction in process 486,452
Sales of discontinued operations 898,673 6,809,200
Net cash provided by (used in) investing activities (472,720) 7,131,374
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from the sale of common stock 16,757,130 54,017,145
Proceeds from loans 6,587,971 4,031,100
Repayment of loans (3,913,520) (4,031,100)
Other payables-investors 287,130
Advance from related party 340,000 150,000
Net cash provided by financing activities 19,771,581 54,454,275
Effect of exchange rate change on cash and cash equivalents (4,936,854) (2,461,073)
Net increase (decrease) in cash and cash equivalents 13,371,885 39,176,360
Cash and cash equivalents, beginning balance 57,770,303 18,593,944
Cash and cash equivalents, ending balance 71,142,188 57,770,303
Supplement disclosure of cash flow information    
Interest expense paid 295,804 256,873
Income taxes paid 464,342 362,163
SUPPLEMENT NON-CASH ACTIVITIES    
Common stock issued to repay accrued expense 658,000 440,000
Nonmonetary sales and purchases $ 71,040,024 $ 99,317,794
v3.23.3
Organization and Description of Business
 12 Months Ended
Jun. 30, 2023
Organization and Description of Business [Abstract]  
ORGANIZATION AND DESCRIPTION OF BUSINESS

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

 

China Green Agriculture, Inc. (the “Company”, “Parent Company” or “Green Nevada”), through its subsidiaries, is engaged in the research, development, production, distribution and sale of humic acid-based compound fertilizer, compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly concentrated water-soluble fertilizers and mixed organic-inorganic compound fertilizer and the development, production, and distribution of agricultural products.

 

Unless the context indicates otherwise, as used in this Report, the following are the references herein of all the subsidiaries of the Company (i) Green Agriculture Holding Corporation (“Green New Jersey”), a wholly-owned subsidiary of Green Nevada, incorporated in the State of New Jersey; (ii) Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (“Jinong”), a wholly-owned subsidiary of Green New Jersey organized under the laws of the PRC; (iii) Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd. (“Yuxing”), a Variable Interest Entity (“VIE”) in the in the PRC controlled by Jinong through a series of contractual agreements; (iv) Beijing Gufeng Chemical Products Co., Ltd., a wholly-owned subsidiary of Jinong in the PRC (“Gufeng”), (v) Beijing Tianjuyuan Fertilizer Co., Ltd., Gufeng’s wholly-owned subsidiary in the PRC (“Tianjuyuan”), and (vi)Antaeus Tech, Inc. (“Antaeus”), a wholly-owned subsidiary of Green Nevada incorporated in the State of Delaware.

 

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.

 

On June 2, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Xindeguo, Xinyulei and Xiangrong.

 

On December 1, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Lishijie.

 

On December 31, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Fengnong.

 

On March 31, 2022, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Jinyangguang and Wangtian.

 

On March 13, 2023, the Company established Antaeus Tech Inc. (“Antaeus”) in the State of Delaware. In April 2023, Antaeus started to purchase digital assets mining machines and to mine bitcoin in West Texas.

 

Yuxing may also collectively be referred to as the “the VIE Company”.
v3.23.3
Basis of Presentation and Summary of Significant Accounting Policies
 12 Months Ended
Jun. 30, 2023
Basis of Presentation and Summary of Significant 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, Yuxing and Antaeus. All significant inter-company accounts and transactions have been eliminated in consolidation.

 

For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s consolidated financial statements have been presented with its former VIEs, Lishijie, Jinyangguang, Wangtian and Fengnong as a discontinued operation.

 

Effective June 16, 2013, Yuxing was converted from being a wholly owned foreign enterprise 100% owned by Jinong to a domestic enterprise 100% owned one natural person, who is not affiliated to the Company (“Yuxing’s Owner”). Effective the same day, Yuxing’s Owner entered into a series of contractual agreements with Jinong pursuant to which Yuxing became the VIE of Jinong.

 

VIE assessment

 

A VIE is an entity (1) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities, (2) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (3) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. In order to determine if an entity is considered a VIE, the Company first performs a qualitative analysis, which requires certain subjective decisions regarding its assessments, including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties, and the purpose of the arrangement. If the Company cannot conclude after a qualitative analysis whether an entity is a VIE, it performs a quantitative analysis. The qualitative analysis considered the design of the entity, the risks that cause variability, the purpose for which the entity was created, and the variability that the entity was designed to pass along to its variable interest holders. When the primary beneficiary could not be identified through a qualitative analysis, we used internal cash flow models to compute and allocate expected losses or expected residual returns to each variable interest holder based upon the relative contractual rights and preferences of each interest holder in the VIE’s capital structure.

 

Use of estimates

 

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the recent outbreak of a novel strain of the COVID-19.

 

Leases

 

The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of June 30, 2023, the Company does not have any material leases for the implementation of ASC 842.

 

Cash and cash equivalents and concentration of cash

 

For statement of cash flows purposes, the Company considers all cash on hand and in banks, certificates of deposit with state owned banks in the PRC and banks in the United States, and other highly liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. The Company maintains large sums of cash in three major banks in China. The aggregate cash in such accounts and on hand as of June 30, 2023 and 2022 was $ 69,091,838 and $57,714,868, respectively. There is no insurance securing these deposits in China. In addition, the Company also had $ 2,050,350 and $55,435 in cash in three banks in the United States as of June 30, 2023 and 2022, 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.

 

Digital Assets

 

Digital assets are included in current assets in the condensed consolidated balance sheets. Digital assets are accounted for as indefinite-lived intangible assets, and are initially measured in accordance with FASB Accounting Standards Codification (“ASC”) Topic 350 – Intangibles-Goodwill and Other. The Company measures gains or losses on the disposition of digital assets in accordance with the first-in-first-out (“FIFO”) method of accounting.

 

Digital assets are not amortized, but are assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived intangible asset is impaired. Whenever the exchange-traded price of digital assets declines below its carrying value, the Company has determined that an impairment exists and records an impairment equal to the amount by which the carrying value exceeds the fair value.

 

As of June 30, 2023, the Company held bitcoin as digital assets with amount of $210,342. Bitcoin is classified on our balance sheet as a current asset due to the Company’s ability to sell it in a highly liquid marketplace and its intent to liquidate its Bitcoin to support operations when needed. As of June 30, 2023, the Company determined that there were no impairments of its digital assets.

 

Accounts receivable

 

Management regularly reviews the composition of accounts receivable and analyzes customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the collectability of accounts receivable at each year-end. Accounts considered uncollectible are provisioned for written off based upon management’s assessment. As of June 30, 2023, and 2022, the Company had accounts receivable of $16,455,734 and $28,792,891, net of allowance for doubtful accounts of $54,708,486 and $58,000,266, respectively. The impact of COVID-19 caused the difficulty of accounts receivable collection in the fiscal year 2023 as numerous distributors encountered significant difficulties and/or hardships in their businesses amid the pandemic. The company recorded bad debt expense in the amount of $10 million and $39 million (included bad debt expense from discontinuing operations) for the fiscal year ended June 30, 2023 and the fiscal year ended June 30, 2022, respectively. The Company adopts no policy to accept product returns post to the sales delivery.

 

Inventories

 

Inventory is valued at the lower of cost (determined on a weighted average basis) or market. Inventories consist of raw materials, work in process, finished goods and packaging materials. The Company reviews its inventories regularly for possible obsolete goods and establishes reserves when determined necessary. As of June 30, 2023, and 2022 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
Useful Life
Building  10–25 years
Agricultural assets  8 years
Machinery and equipment  5–15 years
Vehicles  3–5 years
Mining machines  5 years

 

Construction in Progress

 

Construction in progress represents the costs incurred relating to the construction of buildings or new additions to the Company’s plant facilities. Costs classified to construction in progress include all costs of obtaining the asset and bringing it to the location and condition necessary for its intended use. No depreciation is provided for construction in progress until the assets are completed and are placed into service. Interest incurred during construction is capitalized into construction in progress.

 

Long-Lived Assets

 

The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. As of June 30, 2023, and 2022 the Company determined that there were no impairments of its long-lived assets.

 

Intangible Assets

 

The Company records intangible assets acquired individually or as part of a group at fair value. Intangible assets with definitive lives are amortized over the useful life of the intangible asset, which is the period over which the asset is expected to contribute directly or indirectly to the entity’s future cash flows. The Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company has not recorded impairment of intangible assets as of June 30, 2023 and 2022, respectively.

 

Goodwill

 

We test goodwill for impairment annually, or when events and circumstances change that would indicate the carrying amount may not be recoverable. ASC 350, “Intangibles – Goodwill and Other,” permits the assessment of qualitative factors to determine whether events and circumstances lead to the conclusion that it is necessary to perform the two-step quantitative goodwill impairment test required under ASC 350. ASC 350 also allows the option to skip the qualitative assessment and proceed directly to a quantitative assessment.

 

Under the first step, the fair value of the reporting unit is compared with its carrying value including goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner comparable to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. As of June 30, 2023, and 2022, the Company performed the required impairment review which resulted in impairment adjustment with amount of 0 in 2023 and 2022. The impairment is reported in General and administrative expenses.

 

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 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.

 

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, 2023, and 2022, the Company had customer deposits of $5,489,781 and $7,994,669, respectively.

 

Stock-Based Compensation

 

The costs of all employee stock option, as well as other equity-based compensation arrangements, are reflected in the consolidated financial statements based on the estimated fair value of the awards on the grant date. That cost is recognized over the period during which an employee is required to provide service in exchange for the award—the requisite service period (usually the vesting period). Stock compensation for stock granted to non-employees is determined as the fair value of the consideration received or the fair value of equity instruments issued, whichever is more reliably measured.

 

Income taxes

 

We account for uncertain tax positions in accordance with Accounting Standards Codification, or ASC, 740, “Income Taxes.” The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of, and guidance surrounding, income tax laws and regulations change over time. Changes in our subjective assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and statements of income. See Note 12, “Taxes Payable,” of the Notes to Consolidated Financial Statements for additional detail on our uncertain tax positions and further information regarding ASC 740.

 

Foreign currency translation

 

The reporting currency of the Company is the US dollar. The functional currency of the Company and Green New Jersey is the US dollar. The functional currency of the Chinese subsidiaries is the Chinese Yuan or Renminbi (“RMB”). For the subsidiaries whose functional currencies are other than the US dollar, all asset and liability accounts were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at the historical rates and items in the income statement and cash flow statements are translated at the average rate in each applicable period. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss) 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, 2023, the Company, through its subsidiaries is engaged into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production), and Antaeus (bitcoin). As of June 30, 2023, 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, 
   2023   2022 
Loss from continuing operations for Basic Earnings Per Share  $(13,281,985)  $(80,522,696)
Loss from discontinued operations for Basic Earnings Per Share   
-
    (17,841,636)
Loss for Basic Earnings Per Share   (13,281,985)   (98,364,332)
Basic Weighted Average Number of Shares   13,248,684    9,348,100 
Loss from continuing operations Per Share – Basic  $(1.00)  $(8.61)
Loss from discontinued operations Per Share – Basic  $
-
   $(1.91)
Net loss Per Share – Basic  $(1.00)  $(10.52)
Loss from continuing operations for Diluted Earnings Per Share  $(13,281,985)  $(80,522,696)
Loss from discontinued operations for Diluted Earnings Per Share  $
-
   $(17,841,636)
Loss for Diluted Earnings Per Share  $(13,281,985)  $(98,364,332)
Diluted Weighted Average Number of Shares   13,248,684    9,348,100 
Loss from continuing operations Per Share – Diluted  $(1.00)   (8.61)
Loss from discontinued operations Per Share – Diluted  $
-
   $(1.91)
Net loss Per Share – Diluted  $(1.00)  $(10.52)

 

Reclassification

 

Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2023 consolidated financial statement presentation. Such reclassifications did not affect total revenues, operating income or net income or cash flows as previously reported.

 

Recent accounting pronouncements

 

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation in certain areas. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2023, although early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its financial statements.
v3.23.3
Going Cercern
 12 Months Ended
Jun. 30, 2023
Going Cercern [Abstract]  
GOING CERCERN

NOTE 3 – GOING CERCERN

 

The Company’s financial statements are prepared assuming that the Company will continue as a going concern. The Company has incurred operating losses and had negative operating cash flows in the fiscal year 2023 and may continue to incur operating losses and generate negative cash flows as the Company implements its future business plan. If the situation exists, there could be substantial doubt about the Company’s ability to continue as going concern.

 

To meet its working capital needs through the next twelve months and to fund the growth of the Company, the Company may consider plans to raise additional funds through the issuance of equity or borrow loan from local bank. The ability of the Company to continue as a going concern is dependent upon its ability to successfully execute its new business strategy and eventually attain profitable operations.

 

The accompanying financial statements do not include any adjustments to reflect the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as going concern.
v3.23.3
Inventories
 12 Months Ended
Jun. 30, 2023
Inventories [Abstract]  
INVENTORIES

NOTE 4 – INVENTORIES

 

Inventories consisted of the following:

 

   June 30,   June 30, 
   2023   2022 
Raw materials  $11,617,989   $7,986,436 
Supplies and packing materials  $410,904   $469,524 
Work in progress  $172,248   $198,591 
Finished goods  $34,253,990   $33,543,635 
Total  $46,455,131   $42,198,186 

 

During the year ended June 30, 2023, 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 $71,040,024 during the year ended June 30, 2023. No gain or loss incurred as the result of the nonmonetary transactions.

 

For the fiscal year ended June 30, 2023, total inventories increased $4,256,945, or 10.1%, to $46,455,131 from $42,198,186 for the fiscal year ended June 30, 2022.
v3.23.3
Property, Plant and Equipment
 12 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT

NOTE 5 – PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment consisted of the following for the continuing entities:

 

   June 30,   June 30, 
   2023   2022 
Building and improvements  $37,065,465   $39,988,862 
Auto   2,716,931    2,892,073 
Machinery and equipment   18,608,254    18,913,581 
Total property, plant and equipment   58,390,650    61,794,515 
Less: accumulated depreciation   (41,700,404)   (42,924,364)
Total  $16,690,246   $18,870,152 

 

For the fiscal year ended June 30, 2023, total depreciation expense for the continuing entities was $2,172,096, decreased $449,841, or 17.2%, from $2,621,937 for the fiscal year ended June 30, 2022.
v3.23.3
Intangible Assets and Digital Assets
 12 Months Ended
Jun. 30, 2023
Intangible Assets and Digital Assets [Abstract]  
INTANGIBLE ASSETS AND DIGITAL ASSETS

NOTE 6 – INTANGIBLE ASSETS AND DIGITAL ASSETS

 

Intangible assets consisted of the following:

 

   June 30,   June 30, 
   2023   2022 
Land use rights, net  $7,862,624   $8,758,704 
Technology patent, net   
-
    
-
 
Customer relationships, net   
-
    
-
 
Non-compete agreement   
-
    
-
 
Trademarks   5,701,011    6,176,784 
Total  $13,563,635   $14,935,488 

 

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 $10,084,895). 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 $144,132). 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 $1,003,887). The intangible asset is being amortized over the grant period of 50 years.

 

The Land Use Rights consisted of the following:

 

   June 30,
2022		   Foreign
Currency
Adjustment		   Amortization/
Subtraction		   June 30,
2023		 
Land use rights  $12,014,170    (925,405)   
-
    11,088,765 
Less: accumulated amortization   (3,255,466)   　    29,325    (3,226,141)
Total land use rights, net  $8,758,704    (925,405)   29,325    7,862,624 

 

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 RMB5,875,068 (or $809,584) 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 $1,267,760) and is amortized over the remaining useful life of six years using the straight-line method. As of June 30, 2023, this technology patent is fully amortized.

 

The technology know-how consisted of the following:

 

   June 30,   Foreign
Currency		   June 30, 
   2022   Adjustment   2023 
Technology know-how  $2,250,708    (173,363)  $2,077,344 
Less: accumulated amortization   (2,250,708)   173,363    (2,077,344)
Total technology know-how, net  $
-
    
-
   $
-
 

 

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 $8,957,000) and is amortized over the remaining useful life of ten years. As of June 30, 2023, this customer relationship is fully amortized.

 

   June 30,   Foreign
Currency		   June 30, 
   2022   Adjustment   2023 
Customer relationships  $9,704,500    (747,500)  $8,957,000 
Less: accumulated amortization   (9,704,500)   747,500    (8,957,000)
Total customer relationships, net  $
-
    
-
   $
-
 

 

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 $181,896) and is amortized over the remaining useful life of five years using the straight-line method. As of June 30, 2023, this non-compete agreement is fully amortized.

 

   June 30,   Foreign Currency   June 30, 
   2022   Adjustment   2023 
Non-compete agreement  $197,076    (15,180)  $181,896 
Less: accumulated amortization   (197,076)   15,180    (181,896)
Total non-compete agreement, net  $
-
    
-
   $
-
 

 

TRADEMARKS

 

On July 2, 2010, the Company acquired Gufeng and its wholly owned subsidiary Tianjuyuan. The preliminary fair value on the acquired trademarks and brand names was estimated to be RMB41,371,630 (or $5,701,011) and is subject to an annual impairment test.

 

    June 30,     Foreign Currency     June 30,  
    2022     Adjustment     2023  
Trademarks   $ 6,232,670       (480,078 )   $ 5,752,592  
Less: accumulated amortization     (55,886 )     4,305       (51,581 )
Total trademarks, net   $ 6,176,784       (475,773 )   $ 5,701,011  

 

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
($)		 
2024   307,807 
2025   248,563 
2026   236,935 
2027   221,431 
2028   221,431 

 

DIGITAL ASSETS

 

On March 13, 2023, the Company established Antaeus Tech Inc. (“Antaeus”) in the State of Delaware. In April 2023, Antaeus started to purchase digital assets mining machines and to mine bitcoin in West Texas. As of June 30, 2023, the company held digital assets with amount of $210,342.
v3.23.3
Other Non-Current Assets
 12 Months Ended
Jun. 30, 2023
Other Assets Noncurrent [Abstract]  
OTHER NON-CURRENT ASSETS

NOTE 7 – OTHER NON-CURRENT ASSETS

 

Other non-current assets mainly include advance payments related to rent the land use for the Company. As of June 30, 2023, the balance of other non-current assets was $5,092,721, which was the rental fee advances for agriculture lands that the Company engaged in Shiquan County from 2025 to 2027.

 

In March 2017, Jinong entered into the rental agreement for approximately 3,400 mu, and 2600-hectare agriculture lands in Shiquan County, Shaanxi Province. The rental agreement was from April 2017 and was renewable for every ten-year period up to 2066. The aggregate rental fee was approximately RMB 13 million per annum, The Company had made 10-year advances of rental fee per rental terms. The Company has amortized $1.8 million as expenses for the year ended June 30, 2023 and $2.0 million as expenses for the year ended June 30, 2022.

 

Estimated amortization expenses of the rental advance payments herein for the next four twelve-month periods ended June 30 and thereafter are as follows:

 

Years ending June 30,    
2024  $1,849,965 
2025  $1,849,965 
2026  $1,849,965 
2027  $1,392,791 
v3.23.3
Accrued Expenses and Other Payables
 12 Months Ended
Jun. 30, 2023
Accrued Expenses and Other Payables [Abstract]  
ACCRUED EXPENSES AND OTHER PAYABLES

NOTE 8 – ACCRUED EXPENSES AND OTHER PAYABLES

 

Accrued expenses and other payables consisted of the following:

 

   June 30,   June 30, 
   2023   2022 
Payroll and welfare payable   188,222    178,341 
Accrued expenses   9,805,444    7,636,524 
Other payables   4,820,193    5,794,686 
Other levy payable   115,568    125,213 
Total  $14,929,427   $13,734,764 
v3.23.3
Amount Due to Related Parties
 12 Months Ended
Jun. 30, 2023
Amount Due to Related Parties [Abstract]  
AMOUNT DUE TO RELATED PARTIES

NOTE 9 – AMOUNT DUE TO RELATED PARTIES

 

At the end of December 2015, Yuxing entered into a sales agreement with the Company’s affiliate, 900LH.com Food Co., Ltd. (“900LH.com”, previously announced as Xi’an Gem Grain Co., Ltd) pursuant to which Yuxing is to supply various vegetables to 900LH.com for its incoming seasonal sales at the holidays and year ends (the “Sales Agreement”). The contingent contracted value of the Sales Agreement is RMB25,500,000 (approximately $3,513,900). During the year ended June 30, 2023 and 2022 Yuxing has sold approximately $0 and $66,071 products to 900LH.com.

 

The amount due from 900LH.com to Yuxing was $27,560 and $13,064 as of June 30, 2023 and 2022, respectively.

 

As of June 30, 2023, and June 30, 2022, the amount due to related parties was $5,439,209 and $5,192,496, respectively. As of June 30, 2023, and June 30, 2022, $964,600 and $1,045,100, 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, 2023, and June 30, 2022, $2,261,693  and $4,105,449, respectively were advances from Mr. Zhuoyu Li, Chairman and CEO of the Company. The advances were unsecured and non-interest-bearing.

 

As of June 30, 2023, the Company’s subsidiary, Jinong, owed 900LH.com. $995. As of June 30, 2022, the Company’s subsidiary, Jinong, owed 900LH.com. $11,431.

 

On July 1, 2022, Jinong renewed the office rental agreement with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the rental agreement, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The rental agreement provides for a two-year term effective as of July 1, 2022 with monthly rent of RMB28,000 (approximately $3,858).
v3.23.3
Loan Payables
 12 Months Ended
Jun. 30, 2023
Loan Payables [Abstract]  
LOAN PAYABLES

NOTE 10 – LOAN PAYABLES

 

As of June 30, 2023, the short-term and long-term loan payables consisted of five loans which mature on dates ranging from September 29, 2023 through August 18, 2024 with interest rates ranging from 3.65% to 5.00%. No. 1 to 3 below are collateralized by Tianjuyuan’s land use right and building ownership right. Loan No. 2 is also guaranteed by the cash deposit. No. 4 to 5 below are collateralized by Jinong’s land use right and building ownership right.

 

No.   Payee   Loan period per agreement     Interest
Rate		     June 30,
2023		  
1   Beijing Bank -Pinggu Branch     June 5, 2023-June 5, 2024       4.15 %     1,378,000  
2   Huaxia Bank -HuaiRou Branch     June 28, 2023-June 28, 2024       3.65 %     1,378,000  
3   Pinggu New Village Bank     June 29, 2023-June 28, 2024       5.00 %     964,600  
4   Industrial Bank Co. Ltd     August 19, 2022-August 18, 2024       3.98 %     1,047,280  
5   Xian Bank     September 30, 2022-September 29, 2023       3.90 %     1,515,800  
    Total                   $ 6,283,680  

 

The interest expense from short-term loans was $295,804 and $256,784 for the year ended June 30, 2023 and 2022, respectively.
v3.23.3
Taxes Payable
 12 Months Ended
Jun. 30, 2023
Taxes Payable [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 0 provision for income taxes for the years ended June 30, 2023 and 2022.

 

Value-Added Tax

 

All the Company’s fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 9 % 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”, which allows certain fertilizer products to be exempt from VAT beginning June 1, 2008. The Company submitted the application for exemption in May 2009, which was granted effective September 1, 2009, continuing through December 31, 2015. 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.

 

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,” under which, effective July 1, 2017, all 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 April 4, 2018, 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 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%.

 

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,” under which, Effective April 1, 2019, all 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%.

 

Income Taxes and Related Payables

 

Taxes payable consisted of the following:

 

   June 30,   June 30, 
   2023   2022 
VAT provision  $(398,499)  $(384,574)
Income tax payable   (2,132,400)   (2,310,360)
Other levies   591,325    639,237 
Repatriation tax   29,010,535    29,010,535 
Total  $27,070,961   $26,954,838 

 

The provision for income taxes consists of the following:

 

   Years Ended
June 30,		 
   2023   2022 
Current tax – foreign  $(97,820)  $(1,291,828)
Total  $(97,820)  $(1,291,828)

 

Significant components of deferred tax assets were as follows:

 

   June 30,   June 30, 
   2023   2022 
Deferred tax assets          
Deferred Tax Benefit   32,464,001    35,067,278 
Valuation allowance   (32,366,181)   (35,067,278)
Total deferred tax assets  $97,820    
-
 

 

The change in valuation allowance for the year ended June 30, 2023 was a decrease of $2,701,097 which was mainly resulted from foreign exchange rates.

 

The Company periodically evaluates the likelihood of the realization of deferred tax assets and adjusts the carrying amount of the deferred tax assets by the valuation allowance to the extent the future realization of the deferred tax assets is not judged to be more likely than not. The Company considers many factors when assessing the likelihood of future realization of its deferred tax assets, including its recent cumulative earnings experience by taxing jurisdiction, expectations of future taxable income or loss, the carryforward periods available to the Company for tax reporting purposes, and other relevant factors.

 

As of June 30, 2023, 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 be realized with the total amount of $97,820.

 

U.S. Tax Cuts and Jobs Act and Provisional Estimates

 

On December 22, 2017, the TCJA was enacted into law, which significantly changes existing U.S. tax law and includes numerous provisions that affect our business, such as imposing a one-time transition tax on deemed repatriation of deferred foreign income, reducing the U.S. federal statutory tax rate, and adopting a territorial tax system. The TCJA required us to incur a one-time transition tax on deferred foreign income not previously subject to U.S. income tax at a rate of 15.5% for foreign cash and certain other net current assets, and 8% on the remaining income. The TCJA also reduced the U.S. federal statutory tax rate from 35% to 21% effective January 1, 2018. For fiscal year 2018, our blended U.S. federal statutory tax rate is 27.5%. This is the result of using the tax rate of 34% for the first and second quarter of fiscal year 2018 and the reduced tax rate of 21% for the third and fourth quarter of fiscal year 2018. For fiscal year 2019, 2020, 2021, 2022 and 2023, our U.S. federal statutory tax rate is 21%.

 

Tax Rate Reconciliation

 

Our effective tax rates were approximately 0.7% and 1.3% for years ended June 30, 2023 and 2022, respectively. Substantially all the Company’s income before income taxes and related tax expense are from PRC sources. Actual income tax benefit reported in the consolidated statements of operations and comprehensive income differ from the amounts computed by applying the US statutory income tax rate of 21.0% and 21.0% to income before income taxes for the years ended June 30, 2023 and 2022 for the following reasons:

 

June 30, 2023

 

   China
15% - 25%		   United States
21%		   Total 
                         
Pretax loss  $(10,207,847)        (3,171,958)       $(13,379,805)     
                               
Expected income tax expense (benefit)   (2,551,962)   25.0%   (666,111)   21.0%   (3,218,073)     
High-tech income benefits on Jinong   
-
    
-
         
-
    
-
      
Loss from subsidiaries in which no benefit is recognized   2,454,142    (24.0)%   　    
-
    2,454,142      
Change in valuation allowance on deferred tax asset from US tax benefit   
-
    
-
    666,111    (21.0)%   666,111      
Actual tax expense  $(97,820)   1.0%  $
-
    %  $(97,820)   0.7%

 

June 30, 2022

 

   China
15% - 25%		   United States
21%		   Total 
                         
Pretax loss  $(98,939,698)        (674,813)       $(99,614,511)     
                               
Expected income tax expense (benefit)   (24,734,925)   25.0%   (141,711)   21.0%   (24,876,635)     
High-tech income benefits on Jinong   765,909    (0.8)%   
 
    
-
    765,909      
Loss from subsidiaries in which no benefit is recognized   24,010,666    (24.3)%   
　
    
-
    24,010,666      
Change in valuation allowance on deferred tax asset from US tax benefit   (1,291,828)   1.3%   141,711    (21.0)%   (1,150,117)     
Actual tax expense  $(1,250,178)   1.3%  $
-
    
%  $(1,250,178)   1.3%
v3.23.3
Stockholders’ Equity
 12 Months Ended
Jun. 30, 2023
Stockholders Equity Note [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 12 – STOCKHOLDERS’ EQUITY

 

Common Stock

    

On August 2, 2022, the Company completed the issuance of 1,117,142 shares of its Common Stock for $16,757,130 to P Kevin HODL Ltd, an entity owned and controlled by Mr. Zhibiao Pan, who was subsequently appointed as the Company’s co-Chief Executive Officer on August 25, 2022. This sale was made pursuant to the Share Purchase Agreement dated November 23, 2021 in transactions exempt from registration under the Securities Act of 1933, as amended, in reliance on an exemption provided by Rule 903 of Regulation S and/or Section 4(a)(2) of the Securities Act.

 

On November 25, 2022, the Company issued 122,305 shares of common stock to settle the payable of consulting services under the 2009 Plan. The value of the stock was $658,000 and was based on the fair value of the Company’s common stock on the grant date of November 12, 2022 when the Company authorized the grant.

 

As of June 30, 2023, and June 30, 2022, there were 13,380,914 and 12,141,467 shares of common stock issued and outstanding, respectively.

 

Preferred Stock

 

Under the Company’s Articles of Incorporation, the Board has the authority, without further action by stockholders, to designate up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, qualifications and restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be greater than the rights of the common stock. If the Company sells preferred stock under its registration statement on Form S-3, it will fix the rights, preferences, privileges, qualifications and restrictions of the preferred stock of each series in the certificate of designation relating to that series and will file the certificate of designation that describes the terms of the series of preferred stock the Company offers before the issuance of the related series of preferred stock.

 

As of June 30, 2023, 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.
v3.23.3
Stock Options
 12 Months Ended
Jun. 30, 2023
Stock Options [Abstract]  
STOCK OPTIONS

NOTE 13 – STOCK OPTIONS

 

There were no issuances of stock options during the years ended June 30, 2023 and 2022.
v3.23.3
Concentrations and Litigation
 12 Months Ended
Jun. 30, 2023
Concentrations and Litigation [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 are six vendors that the Company purchased over 10% of its raw materials with an aggregate amount of $71,040,024, or 12.2%, 12.0%, 12.0%, 11.8%, 11.7% and 11.6%, respectively, for fertilizer manufacturing during the year ended June 30, 2023.

 

There are six vendors that the Company purchased over 10% of its raw materials with an aggregate amount of $99,101,685, or 11.9%, 11.8%, 11.6%, 11.3%, 11.1% and 10.9%, respectively, for fertilizer manufacturing during the year ended June 30, 2022.

 

Six customers accounted for an aggregate amount of $71,690,103, or 10.7%,10.4%,10.4%,10.4%,10.3%, and 10.2%, respectively, of the Company’s manufactured fertilizer sales for the year ended June 30, 2023.

 

Two customers accounted for an aggregate amount of $33,378,901, or 10.1% and 10.1%, respectively, of the Company’s manufactured fertilizer sales for the year ended June 30, 2022.

 

Litigation

 

On June 5, 2020, an individual filed suit pro se (as in, representing oneself without an attorney) in the Southern District of Florida federal court alleging violations of the Securities Exchange Act. The Company believes the action is without merit and vigorously opposed it. The company moved to dismiss the litigation and for attorney’s fees from the plaintiff. On November 2, 2020, the case was transferred to the United States District Court for The Southern District Of New York. On September 30, 2021, the Southern District of New York federal court presiding over the case dismissed all claims against the company, its executives, and its independent directors.  The dismissal was without prejudice and the plaintiff can appeal or amend within 30 days, or by October 29, 2021. The plaintiff amended the complaint on Oct 30, 2021. On August 30, 2022, the Southern District of New York federal court presiding over the case issued an order granting motions to dismiss all claims in the amended complaint against the Company, its executives, and its independent directors. On September 6, 2022, the plaintiff filed a notice of civil appeal to the U.S. Court of Appeals, Second Circuit. The appeal has now been fully briefed and the Company expects a decision to issue sometime in the coming year. 

 

There are no other actions, suits, proceedings, inquiries or investigations before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.
v3.23.3
Segment Reporting
 12 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 15 – SEGMENT REPORTING

 

As of June 30, 2023, 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 Antaeus (bitcoin). 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,		 
   2023   2022 
Revenues from unaffiliated customers:          
Jinong  $40,247,303   $54,339,228 
Gufeng   74,028,542    102,755,286 
Yuxing   9,654,168    11,356,390 
Antaeus   210,342    
-
 
Consolidated  $124,140,355   $168,450,904 
Operating income (expense):          
Jinong  $(4,411,893)  $(3,466,631)
Gufeng   (6,062,353)   (80,233,988)
Yuxing   499,479    581,840 
Antaeus   (465,560)     
Reconciling item (1)   
-
    
-
 
Reconciling item (2)   (3,173,033)   (679,326)
Consolidated  $(13,613,360)  $(83,798,104)

 

Net income (loss):        
Jinong  $(4,224,927)   (3,063,634)
Gufeng   (6,280,625)   (80,547,966)
Yuxing   763,512    722,936 
Antaeus   (367,988)   
-
 
Reconciling item (1)   1,077    4,513 
Reconciling item (2)   (3,173,034)   612,503 
Reconciling item (3)  $
-
   $1,748,951 
Consolidated  $(13,281,985)  $(80,522,696)
           
Depreciation and Amortization:          
Jinong  $785,503   $833,042 
Gufeng   761,466    816,510 
Yuxing   839,514    1,280,938 
Antaeus   16,667    
-
 
Consolidated  $2,403,150   $2,930,490 
Interest expense:          
Jinong   78,342    
-
 
Gufeng   217,462    256,784 
Yuxing   
-
    
-
 
Antaeus   
-
    
-
 
Consolidated  $295,804   $256,784 
           
Capital Expenditure:          
Jinong  $52,664   $97,900 
Gufeng   216,892    29,308 
Yuxing   101,837    37,069 
Antaeus   1,000,000    
-
 
Consolidated  $1,371,393   $164,278 

 

   As of 
   June 30,   June 30, 
   2023   2022 
Identifiable assets:        
Jinong  $87,862,836   $100,958,241 
Gufeng   49,749,041    80,923,101 
Yuxing   38,223,482    40,132,337 
Antaeus   3,292,247    
-
 
Reconciling item (1)   7,387,637    (27,064,606)
Reconciling item (2)   166,121    166,121 
Consolidated  $186,681,364   $195,115,195 

 

(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 gain on discontinuing sales VIEs and the intercompany transaction clearing.

 

Total revenues from exported products currently accounted for less than 1% of the Company’s total fertilizer revenues for the years ended June 30, 2023 and 2022, respectively.
v3.23.3
Commitments and Contingencies
 12 Months Ended
Jun. 30, 2023
Commitments and Contingencies [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 16 – COMMITMENTS AND CONTINGENCIES

 

We are subject to various claims and contingencies related to lawsuits, certain taxes and environmental matters, as wells commitments under contractual and other commercial obligations. We recognize liabilities for commitments and contingencies when a loss is probable and estimable.

 

On July 1, 2020, Jinong signed an office rental agreement with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as its Chairman. Pursuant to the rental agreement, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The rental agreement provides for a two-year term effective as of July 1, 2022 with monthly rent of RMB28,000 (approximately $3,858).

 

In February 2004, Tianjuyuan signed a fifty-year rental agreement with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District.

 

On April 2, 2023, Antaeus signed a one-year rental agreement for an office in Austin, Texas for approximately 404 square meters (4,348 square feet) space.

 

Accordingly, the Company recorded an aggregate of $51,192 and $97,307 as rent expenses for the years ended June 30, 2023 and 2022, respectively. The contingent rent expenses herein for the next five years ended June 30, are as follows:

 

Years ending June 30,    
2024   55,392 
2025   55,392 
2026   55,392 
2027   55,392 
2028   55,392 
v3.23.3
Variable Interest Entities
 12 Months Ended
Jun. 30, 2023
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 most of the risk of loss from the activities of Yuxing, thereby enabling the Company, through Jinong, to receive a majority of Yuxing expected residual returns.

 

On June 30, 2016 and January 1, 2017, the Company, through its wholly owned subsidiary Jinong, entered into strategic acquisition agreements and into a series of contractual agreements to qualify as VIEs with the shareholders of the sales VIE Companies.

 

Jinong, the sales VIE Companies, and the shareholders of the sales VIE Companies also entered into a series of contractual agreements for the sales VIE Companies to qualify as VIEs (the “VIE Agreements”).

 

On November 30, 2017, the Company, through its wholly owned subsidiary Jinong, exited the VIE agreements with the shareholders of Zhenbai.

 

On June 2, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Xindeguo, Xinyulei and Xiangrong.

 

On December 1, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Lishijie.

 

On December 31, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Fengnong.

 

On March 31, 2022, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Jinyangguang and Wangtian.

 

As a result of these contractual arrangements, with Yuxing and the sales VIE Companies the Company is entitled to substantially all the economic benefits of Yuxing and the VIE Companies. The following financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements as of June 30, 2023 and June 30, 2022:

 

   June 30,   June 30, 
   2023   2022 
         
ASSETS        
Current Assets        
Cash and cash equivalents  $323,854   $385,308 
Accounts receivable, net   283,221    710,143 
Inventories   24,288,379    22,062,527 
Other current assets   108,677    22,932 
Related party receivable   27,560    13,064.00 
Advances to suppliers   
-
    1,879,704 
Total Current Assets   25,031,691    25,073,678 
           
Plant, Property and Equipment, Net   5,887,278    6,926,023 
Other assets   9,784    10,600 
Intangible Assets, Net   7,294,729    8,122,036 
    -      
Total Assets  $38,223,482   $40,132,337 
    -      
LIABILITIES AND STOCKHOLDERS’ EQUITY   -      
Current Liabilities   -      
Accounts payable  $12,512   $107,095 
Customer deposits   62,134    10,016 
Accrued expenses and other payables   282,968    306,116 
Amount due to related parties   39,346,051    42,105,604 
Total Current Liabilities   39,703,665    42,528,831 
Total Liabilities  $39,703,665    42,528,831 
           
Stockholders’ equity   (1,480,183)   (2,396,494)
    　      
Total Liabilities and Stockholders’ Equity  $38,223,482   $40,132,337 

 

    Years Ended
June 30,		  
    2023     2022  
Revenue   $ 9,654,168     $ 11,356,390  
Expenses     8,890,656       10,633,454  
Net income   $ 763,512     $ 722,936  
v3.23.3
Restricted Net Assets
 12 Months Ended
Jun. 30, 2023
Restricted Net Assets [Abstract]  
RESTRICTED NET ASSETS

NOTE 18 – 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, 2023 and 2022 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 they are as follows.

 

Parent Company Financial Statements

 

PARENT COMPANY FINANCIAL INFORMATION OF CHINA GREEN AGRICULTURE, INC.

 

Condensed Balance Sheets

 

   As of June 30, 
   2023   2022 
ASSETS        
Current Assets:        
Cash and cash equivalents  $49,598   $52,485 
Other current assets   169,071    169,071 
Total Current Assets   218,668    221,555 
           
Long-term equity investment   139,569,715    146,457,664 
Total long-term assets   139,569,715    146,457,664 
Total Assets  $139,788,383   $146,679,219 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current Liabilities:          
Accounts payable  $214,520   $214,520 
Amount due to related parties   4,445,449    4,105,449 
Other payables and accrued expenses   9,760,556    7,588,486 
Total Current Liabilities   14,420,526    11,908,455 
           
Stockholders’ Equity          
Common stock, $.001 par value, 115,197,165 shares authorized, 13,380,914 and 12,141,467 shares issued and outstanding as of June 30, 2023 and June 30, 2022, respectively   13,381    12,141 
Additional paid in capital   242,090,576    224,676,686 
Accumulated other comprehensive (loss)   (26,950,493)   (13,414,442)
Retained earnings   (89,785,607)   (76,503,621)
Total Stockholders’ Equity   125,367,857    134,770,764 
Total Liabilities and Stockholders’ Equity  $139,788,383   $146,679,219 

 

Condensed Statements of Operations

 

    Year ended
June 30,		  
    2023     2022  
Revenue   $ -     $ -  
General and administrative expenses     3,173,034       679,326  
Interest income     1,076       4,513  
Provision for tax     -       (1,291,828 )
Equity investment in subsidiaries     (10,110,028 )     (98,981,348 )
Net income   $ (13,281,986 )   $ (98,364,333 )

 

Condensed Statements of Cash Flows

 

    Year Ended
June 30,		  
    2023     2022  
Net cash used in operating activities   $ (17,100,265 )   $ (54,476,955 )
Net cash provided by investing activities     2,001,000       -  
Net cash provided by financing activities     17,097,130       54,454,275  
Cash and cash equivalents, beginning balance     52,484       75,165  
Cash and cash equivalents, ending balance   $ 2,050,350     $ 52,484  

 

Notes to Condensed Parent Company Financial Information

 

As of June 30, 2023, and 2022, 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.
v3.23.3
Subsequent Events
 12 Months Ended
Jun. 30, 2023
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 19 – SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to June 30, 2023 to the date these consolidated financial statements were available to be issued and has determined that there were below significant subsequent events or transactions that would require recognition or disclosure in the consolidated financial statements.

 

On August 10, 2023, our Board of Directors adopted the Company’s 2023 Equity Incentive Plan. The 2023 Plan gives us the ability to grant stock options, stock appreciation rights (SARs), restricted stock and other stock-based awards (collectively, “Awards”) to employees or consultants of our company or of any subsidiary of our company and to non-employee members of our advisory board or our Board of Directors or the board of directors of any of our subsidiaries. Our Board of Directors believes that adoption of the Incentive Plan is in the best interests of our company and our stockholders because the ability to grant stock options and make other stock-based awards under the Incentive Plan is an important factor in attracting, stimulating and retaining qualified and distinguished personnel with proven ability and vision to serve as employees, officers, consultants or members of the Board of Directors or advisory board of our company and our subsidiaries, and to chart our course towards continued growth and financial success. Therefore, our Board of Directors believes the Incentive Plan will be a key component of our compensation program.

 

As of November 2, 2023, 2,759,011 shares of our common stock remained available for future grants under the Plans and no Awards had been granted under the 2023 Plan.
v3.23.3
Accounting Policies, by Policy (Policies)
 12 Months Ended
Jun. 30, 2023
Basis of Presentation and Summary of Significant 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, Yuxing and Antaeus. All significant inter-company accounts and transactions have been eliminated in consolidation.

For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s consolidated financial statements have been presented with its former VIEs, Lishijie, Jinyangguang, Wangtian and Fengnong as a discontinued operation.

Effective June 16, 2013, Yuxing was converted from being a wholly owned foreign enterprise 100% owned by Jinong to a domestic enterprise 100% owned one natural person, who is not affiliated to the Company (“Yuxing’s Owner”). Effective the same day, Yuxing’s Owner entered into a series of contractual agreements with Jinong pursuant to which Yuxing became the VIE of Jinong.
VIE assessment

VIE assessment

A VIE is an entity (1) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities, (2) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (3) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. In order to determine if an entity is considered a VIE, the Company first performs a qualitative analysis, which requires certain subjective decisions regarding its assessments, including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties, and the purpose of the arrangement. If the Company cannot conclude after a qualitative analysis whether an entity is a VIE, it performs a quantitative analysis. The qualitative analysis considered the design of the entity, the risks that cause variability, the purpose for which the entity was created, and the variability that the entity was designed to pass along to its variable interest holders. When the primary beneficiary could not be identified through a qualitative analysis, we used internal cash flow models to compute and allocate expected losses or expected residual returns to each variable interest holder based upon the relative contractual rights and preferences of each interest holder in the VIE’s capital structure.

 
Use of estimates

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the recent outbreak of a novel strain of the COVID-19.
Leases

Leases

The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of June 30, 2023, the Company does not have any material leases for the implementation of ASC 842.
Cash and cash equivalents and concentration of cash

Cash and cash equivalents and concentration of cash

For statement of cash flows purposes, the Company considers all cash on hand and in banks, certificates of deposit with state owned banks in the PRC and banks in the United States, and other highly liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. The Company maintains large sums of cash in three major banks in China. The aggregate cash in such accounts and on hand as of June 30, 2023 and 2022 was $ 69,091,838 and $57,714,868, respectively. There is no insurance securing these deposits in China. In addition, the Company also had $ 2,050,350 and $55,435 in cash in three banks in the United States as of June 30, 2023 and 2022, 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.

 
Digital Assets

Digital Assets

Digital assets are included in current assets in the condensed consolidated balance sheets. Digital assets are accounted for as indefinite-lived intangible assets, and are initially measured in accordance with FASB Accounting Standards Codification (“ASC”) Topic 350 – Intangibles-Goodwill and Other. The Company measures gains or losses on the disposition of digital assets in accordance with the first-in-first-out (“FIFO”) method of accounting.

Digital assets are not amortized, but are assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived intangible asset is impaired. Whenever the exchange-traded price of digital assets declines below its carrying value, the Company has determined that an impairment exists and records an impairment equal to the amount by which the carrying value exceeds the fair value.

As of June 30, 2023, the Company held bitcoin as digital assets with amount of $210,342.
Accounts receivable

Accounts receivable

Management regularly reviews the composition of accounts receivable and analyzes customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the collectability of accounts receivable at each year-end. Accounts considered uncollectible are provisioned for written off based upon management’s assessment. As of June 30, 2023, and 2022, the Company had accounts receivable of $16,455,734 and $28,792,891, net of allowance for doubtful accounts of $54,708,486 and $58,000,266, respectively. The impact of COVID-19 caused the difficulty of accounts receivable collection in the fiscal year 2023 as numerous distributors encountered significant difficulties and/or hardships in their businesses amid the pandemic. The company recorded bad debt expense in the amount of $10 million and $39 million (included bad debt expense from discontinuing operations) for the fiscal year ended June 30, 2023 and the fiscal year ended June 30, 2022, respectively. The Company adopts no policy to accept product returns post to the sales delivery.
Inventories

Inventories

Inventory is valued at the lower of cost (determined on a weighted average basis) or market. Inventories consist of raw materials, work in process, finished goods and packaging materials. The Company reviews its inventories regularly for possible obsolete goods and establishes reserves when determined necessary. As of June 30, 2023, and 2022 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:
Construction in Progress

Construction in Progress

Construction in progress represents the costs incurred relating to the construction of buildings or new additions to the Company’s plant facilities. Costs classified to construction in progress include all costs of obtaining the asset and bringing it to the location and condition necessary for its intended use. No depreciation is provided for construction in progress until the assets are completed and are placed into service. Interest incurred during construction is capitalized into construction in progress.
Long-Lived Assets

Long-Lived Assets

The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. As of June 30, 2023, and 2022 the Company determined that there were no impairments of its long-lived assets.

 
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, 2023 and 2022, respectively.
Goodwill

Goodwill

We test goodwill for impairment annually, or when events and circumstances change that would indicate the carrying amount may not be recoverable. ASC 350, “Intangibles – Goodwill and Other,” permits the assessment of qualitative factors to determine whether events and circumstances lead to the conclusion that it is necessary to perform the two-step quantitative goodwill impairment test required under ASC 350. ASC 350 also allows the option to skip the qualitative assessment and proceed directly to a quantitative assessment.

Under the first step, the fair value of the reporting unit is compared with its carrying value including goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner comparable to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. As of June 30, 2023, and 2022, the Company performed the required impairment review which resulted in impairment adjustment with amount of 0 in 2023 and 2022. The impairment is reported in General and administrative expenses.
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 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.
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, 2023, and 2022, the Company had customer deposits of $5,489,781 and $7,994,669, respectively.
Stock-Based Compensation

Stock-Based Compensation

The costs of all employee stock option, as well as other equity-based compensation arrangements, are reflected in the consolidated financial statements based on the estimated fair value of the awards on the grant date. That cost is recognized over the period during which an employee is required to provide service in exchange for the award—the requisite service period (usually the vesting period). Stock compensation for stock granted to non-employees is determined as the fair value of the consideration received or the fair value of equity instruments issued, whichever is more reliably measured.

 
Income taxes

Income taxes

We account for uncertain tax positions in accordance with Accounting Standards Codification, or ASC, 740, “Income Taxes.” The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of, and guidance surrounding, income tax laws and regulations change over time. Changes in our subjective assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and statements of income. See Note 12, “Taxes Payable,” of the Notes to Consolidated Financial Statements for additional detail on our uncertain tax positions and further information regarding ASC 740.
Foreign currency translation

Foreign currency translation

The reporting currency of the Company is the US dollar. The functional currency of the Company and Green New Jersey is the US dollar. The functional currency of the Chinese subsidiaries is the Chinese Yuan or Renminbi (“RMB”). For the subsidiaries whose functional currencies are other than the US dollar, all asset and liability accounts were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at the historical rates and items in the income statement and cash flow statements are translated at the average rate in each applicable period. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss) 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, 2023, the Company, through its subsidiaries is engaged into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production), and Antaeus (bitcoin). As of June 30, 2023, 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, 
   2023   2022 
Loss from continuing operations for Basic Earnings Per Share  $(13,281,985)  $(80,522,696)
Loss from discontinued operations for Basic Earnings Per Share   
-
    (17,841,636)
Loss for Basic Earnings Per Share   (13,281,985)   (98,364,332)
Basic Weighted Average Number of Shares   13,248,684    9,348,100 
Loss from continuing operations Per Share – Basic  $(1.00)  $(8.61)
Loss from discontinued operations Per Share – Basic  $
-
   $(1.91)
Net loss Per Share – Basic  $(1.00)  $(10.52)
Loss from continuing operations for Diluted Earnings Per Share  $(13,281,985)  $(80,522,696)
Loss from discontinued operations for Diluted Earnings Per Share  $
-
   $(17,841,636)
Loss for Diluted Earnings Per Share  $(13,281,985)  $(98,364,332)
Diluted Weighted Average Number of Shares   13,248,684    9,348,100 
Loss from continuing operations Per Share – Diluted  $(1.00)   (8.61)
Loss from discontinued operations Per Share – Diluted  $
-
   $(1.91)
Net loss Per Share – Diluted  $(1.00)  $(10.52)
Reclassification

Reclassification

Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2023 consolidated financial statement presentation. Such reclassifications did not affect total revenues, operating income or net income or cash flows as previously reported.
Recent accounting pronouncements

Recent accounting pronouncements

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation in certain areas. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2023, although early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its financial statements.
v3.23.3
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jun. 30, 2023
Basis of Presentation and Summary of Significant Accounting Policies [Abstract]  
Schedule of Estimated Useful Lives Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of the assets:
   Estimated
Useful Life
Building  10–25 years
Agricultural assets  8 years
Machinery and equipment  5–15 years
Vehicles  3–5 years
Mining machines  5 years
Schedule of Basic and Diluted Earnings Per Share The components of basic and diluted earnings per share consist of the following:
   Years Ended June 30, 
   2023   2022 
Loss from continuing operations for Basic Earnings Per Share  $(13,281,985)  $(80,522,696)
Loss from discontinued operations for Basic Earnings Per Share   
-
    (17,841,636)
Loss for Basic Earnings Per Share   (13,281,985)   (98,364,332)
Basic Weighted Average Number of Shares   13,248,684    9,348,100 
Loss from continuing operations Per Share – Basic  $(1.00)  $(8.61)
Loss from discontinued operations Per Share – Basic  $
-
   $(1.91)
Net loss Per Share – Basic  $(1.00)  $(10.52)
Loss from continuing operations for Diluted Earnings Per Share  $(13,281,985)  $(80,522,696)
Loss from discontinued operations for Diluted Earnings Per Share  $
-
   $(17,841,636)
Loss for Diluted Earnings Per Share  $(13,281,985)  $(98,364,332)
Diluted Weighted Average Number of Shares   13,248,684    9,348,100 
Loss from continuing operations Per Share – Diluted  $(1.00)   (8.61)
Loss from discontinued operations Per Share – Diluted  $
-
   $(1.91)
Net loss Per Share – Diluted  $(1.00)  $(10.52)
v3.23.3
Inventories (Tables)
 12 Months Ended
Jun. 30, 2023
Schedule of Inventories [Abstract]  
Schedule of Inventories Inventories consisted of the following:
   June 30,   June 30, 
   2023   2022 
Raw materials  $11,617,989   $7,986,436 
Supplies and packing materials  $410,904   $469,524 
Work in progress  $172,248   $198,591 
Finished goods  $34,253,990   $33,543,635 
Total  $46,455,131   $42,198,186 
v3.23.3
Property, Plant and Equipment (Tables)
 12 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment Property, plant and equipment consisted of the following for the continuing entities:
   June 30,   June 30, 
   2023   2022 
Building and improvements  $37,065,465   $39,988,862 
Auto   2,716,931    2,892,073 
Machinery and equipment   18,608,254    18,913,581 
Total property, plant and equipment   58,390,650    61,794,515 
Less: accumulated depreciation   (41,700,404)   (42,924,364)
Total  $16,690,246   $18,870,152 
v3.23.3
Intangible Assets and Digital Assets (Tables)
 12 Months Ended
Jun. 30, 2023
Intangible Assets and Digital Assets (Tables) [Line Items]  
Schedule of amortization expenses of intangible assets Estimated amortization expenses of intangible assets for the next five twelve months periods ended June 30, are as follows:
Years Ending June 30,  Expense
($)		 
2024   307,807 
2025   248,563 
2026   236,935 
2027   221,431 
2028   221,431 
Intangible Assets [Member]  
Intangible Assets and Digital Assets (Tables) [Line Items]  
SCHEDULE OF INTANGIBLE ASSETS Intangible assets consisted of the following:
   June 30,   June 30, 
   2023   2022 
Land use rights, net  $7,862,624   $8,758,704 
Technology patent, net   
-
    
-
 
Customer relationships, net   
-
    
-
 
Non-compete agreement   
-
    
-
 
Trademarks   5,701,011    6,176,784 
Total  $13,563,635   $14,935,488 
Land Use Rights [Member]  
Intangible Assets and Digital Assets (Tables) [Line Items]  
SCHEDULE OF INTANGIBLE ASSETS The Land Use Rights consisted of the following:
   June 30,
2022		   Foreign
Currency
Adjustment		   Amortization/
Subtraction		   June 30,
2023		 
Land use rights  $12,014,170    (925,405)   
-
    11,088,765 
Less: accumulated amortization   (3,255,466)   　    29,325    (3,226,141)
Total land use rights, net  $8,758,704    (925,405)   29,325    7,862,624 
Technology Patent [Member]  
Intangible Assets and Digital Assets (Tables) [Line Items]  
SCHEDULE OF INTANGIBLE ASSETS The technology know-how consisted of the following:
   June 30,   Foreign
Currency		   June 30, 
   2022   Adjustment   2023 
Technology know-how  $2,250,708    (173,363)  $2,077,344 
Less: accumulated amortization   (2,250,708)   173,363    (2,077,344)
Total technology know-how, net  $
-
    
-
   $
-
 

 
Customer Relationships [Member]  
Intangible Assets and Digital Assets (Tables) [Line Items]  
SCHEDULE OF INTANGIBLE ASSETS
   June 30,   Foreign
Currency		   June 30, 
   2022   Adjustment   2023 
Customer relationships  $9,704,500    (747,500)  $8,957,000 
Less: accumulated amortization   (9,704,500)   747,500    (8,957,000)
Total customer relationships, net  $
-
    
-
   $
-
 
Non-compete Agreement [Member]  
Intangible Assets and Digital Assets (Tables) [Line Items]  
SCHEDULE OF INTANGIBLE ASSETS
   June 30,   Foreign Currency   June 30, 
   2022   Adjustment   2023 
Non-compete agreement  $197,076    (15,180)  $181,896 
Less: accumulated amortization   (197,076)   15,180    (181,896)
Total non-compete agreement, net  $
-
    
-
   $
-
 
Trademark [Member]  
Intangible Assets and Digital Assets (Tables) [Line Items]  
SCHEDULE OF INTANGIBLE ASSETS
    June 30,     Foreign Currency     June 30,  
    2022     Adjustment     2023  
Trademarks   $ 6,232,670       (480,078 )   $ 5,752,592  
Less: accumulated amortization     (55,886 )     4,305       (51,581 )
Total trademarks, net   $ 6,176,784       (475,773 )   $ 5,701,011  
v3.23.3
Other Non-Current Assets (Tables)
 12 Months Ended
Jun. 30, 2023
Other Assets Noncurrent [Abstract]  
Schedule of estimated amortization expenses of lease advance payments Estimated amortization expenses of the rental advance payments herein for the next four twelve-month periods ended June 30 and thereafter are as follows:
Years ending June 30,    
2024  $1,849,965 
2025  $1,849,965 
2026  $1,849,965 
2027  $1,392,791 
v3.23.3
Accrued Expenses and Other Payables (Tables)
 12 Months Ended
Jun. 30, 2023
Accrued Expenses and Other Payables Table [Abstract]  
Schedule of Accrued Expenses and Other Payables Accrued expenses and other payables consisted of the following:
   June 30,   June 30, 
   2023   2022 
Payroll and welfare payable   188,222    178,341 
Accrued expenses   9,805,444    7,636,524 
Other payables   4,820,193    5,794,686 
Other levy payable   115,568    125,213 
Total  $14,929,427   $13,734,764 
v3.23.3
Loan Payables (Tables)
 12 Months Ended
Jun. 30, 2023
Loan Payables [Abstract]  
Schedule of Loan Payables As of June 30, 2023, the short-term and long-term loan payables consisted of five loans which mature on dates ranging from September 29, 2023 through August 18, 2024 with interest rates ranging from 3.65% to 5.00%. No. 1 to 3 below are collateralized by Tianjuyuan’s land use right and building ownership right. Loan No. 2 is also guaranteed by the cash deposit. No. 4 to 5 below are collateralized by Jinong’s land use right and building ownership right.
No.   Payee   Loan period per agreement     Interest
Rate		     June 30,
2023		  
1   Beijing Bank -Pinggu Branch     June 5, 2023-June 5, 2024       4.15 %     1,378,000  
2   Huaxia Bank -HuaiRou Branch     June 28, 2023-June 28, 2024       3.65 %     1,378,000  
3   Pinggu New Village Bank     June 29, 2023-June 28, 2024       5.00 %     964,600  
4   Industrial Bank Co. Ltd     August 19, 2022-August 18, 2024       3.98 %     1,047,280  
5   Xian Bank     September 30, 2022-September 29, 2023       3.90 %     1,515,800  
    Total                   $ 6,283,680  
v3.23.3
Taxes Payable (Tables)
 12 Months Ended
Jun. 30, 2023
Taxes Payable [Abstract]  
Schedule of Taxes Payable Taxes payable consisted of the following:
   June 30,   June 30, 
   2023   2022 
VAT provision  $(398,499)  $(384,574)
Income tax payable   (2,132,400)   (2,310,360)
Other levies   591,325    639,237 
Repatriation tax   29,010,535    29,010,535 
Total  $27,070,961   $26,954,838 
Schedule of Provision for Income Taxes The provision for income taxes consists of the following:
   Years Ended
June 30,		 
   2023   2022 
Current tax – foreign  $(97,820)  $(1,291,828)
Total  $(97,820)  $(1,291,828)
Schedule of Deferred Tax Assets Significant components of deferred tax assets were as follows:
   June 30,   June 30, 
   2023   2022 
Deferred tax assets          
Deferred Tax Benefit   32,464,001    35,067,278 
Valuation allowance   (32,366,181)   (35,067,278)
Total deferred tax assets  $97,820    
-
 
Schedule of Effective Income Tax Rate Reconciliation income before income taxes for the years ended June 30, 2023 and 2022 for the following reasons:
   China
15% - 25%		   United States
21%		   Total 
                         
Pretax loss  $(10,207,847)        (3,171,958)       $(13,379,805)     
                               
Expected income tax expense (benefit)   (2,551,962)   25.0%   (666,111)   21.0%   (3,218,073)     
High-tech income benefits on Jinong   
-
    
-
         
-
    
-
      
Loss from subsidiaries in which no benefit is recognized   2,454,142    (24.0)%   　    
-
    2,454,142      
Change in valuation allowance on deferred tax asset from US tax benefit   
-
    
-
    666,111    (21.0)%   666,111      
Actual tax expense  $(97,820)   1.0%  $
-
    %  $(97,820)   0.7%
   China
15% - 25%		   United States
21%		   Total 
                         
Pretax loss  $(98,939,698)        (674,813)       $(99,614,511)     
                               
Expected income tax expense (benefit)   (24,734,925)   25.0%   (141,711)   21.0%   (24,876,635)     
High-tech income benefits on Jinong   765,909    (0.8)%   
 
    
-
    765,909      
Loss from subsidiaries in which no benefit is recognized   24,010,666    (24.3)%   
　
    
-
    24,010,666      
Change in valuation allowance on deferred tax asset from US tax benefit   (1,291,828)   1.3%   141,711    (21.0)%   (1,150,117)     
Actual tax expense  $(1,250,178)   1.3%  $
-
    
%  $(1,250,178)   1.3%
v3.23.3
Segment Reporting (Tables)
 12 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information the principal measure of segment profitability or loss used by the CODM is net income by segment.
   Years Ended
June 30,		 
   2023   2022 
Revenues from unaffiliated customers:          
Jinong  $40,247,303   $54,339,228 
Gufeng   74,028,542    102,755,286 
Yuxing   9,654,168    11,356,390 
Antaeus   210,342    
-
 
Consolidated  $124,140,355   $168,450,904 
Operating income (expense):          
Jinong  $(4,411,893)  $(3,466,631)
Gufeng   (6,062,353)   (80,233,988)
Yuxing   499,479    581,840 
Antaeus   (465,560)     
Reconciling item (1)   
-
    
-
 
Reconciling item (2)   (3,173,033)   (679,326)
Consolidated  $(13,613,360)  $(83,798,104)

 

Net income (loss):        
Jinong  $(4,224,927)   (3,063,634)
Gufeng   (6,280,625)   (80,547,966)
Yuxing   763,512    722,936 
Antaeus   (367,988)   
-
 
Reconciling item (1)   1,077    4,513 
Reconciling item (2)   (3,173,034)   612,503 
Reconciling item (3)  $
-
   $1,748,951 
Consolidated  $(13,281,985)  $(80,522,696)
           
Depreciation and Amortization:          
Jinong  $785,503   $833,042 
Gufeng   761,466    816,510 
Yuxing   839,514    1,280,938 
Antaeus   16,667    
-
 
Consolidated  $2,403,150   $2,930,490 
Interest expense:          
Jinong   78,342    
-
 
Gufeng   217,462    256,784 
Yuxing   
-
    
-
 
Antaeus   
-
    
-
 
Consolidated  $295,804   $256,784 
           
Capital Expenditure:          
Jinong  $52,664   $97,900 
Gufeng   216,892    29,308 
Yuxing   101,837    37,069 
Antaeus   1,000,000    
-
 
Consolidated  $1,371,393   $164,278 
   As of 
   June 30,   June 30, 
   2023   2022 
Identifiable assets:        
Jinong  $87,862,836   $100,958,241 
Gufeng   49,749,041    80,923,101 
Yuxing   38,223,482    40,132,337 
Antaeus   3,292,247    
-
 
Reconciling item (1)   7,387,637    (27,064,606)
Reconciling item (2)   166,121    166,121 
Consolidated  $186,681,364   $195,115,195 
(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 gain on discontinuing sales VIEs and the intercompany transaction clearing.
v3.23.3
Commitments and Contingencies (Tables)
 12 Months Ended
Jun. 30, 2023
Commitments and Contingencies [Abstract]  
Schedule of Contingent Rent Expenses The contingent rent expenses herein for the next five years ended June 30, are as follows:
Years ending June 30,    
2024   55,392 
2025   55,392 
2026   55,392 
2027   55,392 
2028   55,392 
v3.23.3
Variable Interest Entities (Tables)
 12 Months Ended
Jun. 30, 2023
Variable Interest Entities [Abstract]  
Schedule of VIEs Consolidated Financial Statements The following financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements as of June 30, 2023 and June 30, 2022:
   June 30,   June 30, 
   2023   2022 
         
ASSETS        
Current Assets        
Cash and cash equivalents  $323,854   $385,308 
Accounts receivable, net   283,221    710,143 
Inventories   24,288,379    22,062,527 
Other current assets   108,677    22,932 
Related party receivable   27,560    13,064.00 
Advances to suppliers   
-
    1,879,704 
Total Current Assets   25,031,691    25,073,678 
           
Plant, Property and Equipment, Net   5,887,278    6,926,023 
Other assets   9,784    10,600 
Intangible Assets, Net   7,294,729    8,122,036 
    -      
Total Assets  $38,223,482   $40,132,337 
    -      
LIABILITIES AND STOCKHOLDERS’ EQUITY   -      
Current Liabilities   -      
Accounts payable  $12,512   $107,095 
Customer deposits   62,134    10,016 
Accrued expenses and other payables   282,968    306,116 
Amount due to related parties   39,346,051    42,105,604 
Total Current Liabilities   39,703,665    42,528,831 
Total Liabilities  $39,703,665    42,528,831 
           
Stockholders’ equity   (1,480,183)   (2,396,494)
    　      
Total Liabilities and Stockholders’ Equity  $38,223,482   $40,132,337 
    Years Ended
June 30,		  
    2023     2022  
Revenue   $ 9,654,168     $ 11,356,390  
Expenses     8,890,656       10,633,454  
Net income   $ 763,512     $ 722,936  
v3.23.3
Restricted Net Assets (Tables)
 12 Months Ended
Jun. 30, 2023
Restricted Net Assets [Abstract]  
Schedule of Parent Company Condensed Balance Sheets Condensed Balance Sheets
   As of June 30, 
   2023   2022 
ASSETS        
Current Assets:        
Cash and cash equivalents  $49,598   $52,485 
Other current assets   169,071    169,071 
Total Current Assets   218,668    221,555 
           
Long-term equity investment   139,569,715    146,457,664 
Total long-term assets   139,569,715    146,457,664 
Total Assets  $139,788,383   $146,679,219 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current Liabilities:          
Accounts payable  $214,520   $214,520 
Amount due to related parties   4,445,449    4,105,449 
Other payables and accrued expenses   9,760,556    7,588,486 
Total Current Liabilities   14,420,526    11,908,455 
           
Stockholders’ Equity          
Common stock, $.001 par value, 115,197,165 shares authorized, 13,380,914 and 12,141,467 shares issued and outstanding as of June 30, 2023 and June 30, 2022, respectively   13,381    12,141 
Additional paid in capital   242,090,576    224,676,686 
Accumulated other comprehensive (loss)   (26,950,493)   (13,414,442)
Retained earnings   (89,785,607)   (76,503,621)
Total Stockholders’ Equity   125,367,857    134,770,764 
Total Liabilities and Stockholders’ Equity  $139,788,383   $146,679,219 

 
Schedule of Parent Company Condensed Statements of Operations Condensed Statements of Operations
    Year ended
June 30,		  
    2023     2022  
Revenue   $ -     $ -  
General and administrative expenses     3,173,034       679,326  
Interest income     1,076       4,513  
Provision for tax     -       (1,291,828 )
Equity investment in subsidiaries     (10,110,028 )     (98,981,348 )
Net income   $ (13,281,986 )   $ (98,364,333 )
Schedule of Parent Company Condensed Statements of Cash Flows Condensed Statements of Cash Flows
    Year Ended
June 30,		  
    2023     2022  
Net cash used in operating activities   $ (17,100,265 )   $ (54,476,955 )
Net cash provided by investing activities     2,001,000       -  
Net cash provided by financing activities     17,097,130       54,454,275  
Cash and cash equivalents, beginning balance     52,484       75,165  
Cash and cash equivalents, ending balance   $ 2,050,350     $ 52,484  
v3.23.3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items]    
Aggregate cash in accounts and on hand $ 69,091,838 $ 57,714,868
Digital assets 210,342  
Accounts receivable 16,455,734 28,792,891
Allowance for doubtful accounts 54,708,486 58,000,266
Debt expense 10,000,000 39,000,000
Impairment adjustment 0 0
Customer deposits 5,489,781 7,994,669
United States [Member]    
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items]    
Deposits in banks $ 2,050,350 $ 55,435
v3.23.3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives
Jun. 30, 2023
Building [Member] | Minimum [Member]  
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items]  
Estimated useful life 10 years
Building [Member] | Maximum [Member]  
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items]  
Estimated useful life 25 years
Agricultural assets [Member]  
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items]  
Estimated useful life 8 years
Machinery and equipment [Member] | Minimum [Member]  
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items]  
Estimated useful life 5 years
Machinery and equipment [Member] | Maximum [Member]  
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items]  
Estimated useful life 15 years
Vehicles [Member] | Minimum [Member]  
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items]  
Estimated useful life 3 years
Vehicles [Member] | Maximum [Member]  
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items]  
Estimated useful life 5 years
Mining machines [Member]  
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items]  
Estimated useful life 5 years
v3.23.3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Basic and Diluted Earnings Per Share - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Schedule of Basic and Diluted Earnings Per Share [Abstract]    
Loss from continuing operations for Basic Earnings Per Share $ (13,281,985) $ (80,522,696)
Loss from discontinued operations for Basic Earnings Per Share (17,841,636)
Loss for Basic Earnings Per Share $ (13,281,985) $ (98,364,332)
Basic Weighted Average Number of Shares 13,248,684 9,348,100
Loss from continuing operations Per Share – Basic $ (1) $ (8.61)
Loss from discontinued operations Per Share – Basic (1.91)
Net loss Per Share – Basic $ (1) $ (10.52)
Loss from continuing operations for Diluted Earnings Per Share $ (13,281,985) $ (80,522,696)
Loss from discontinued operations for Diluted Earnings Per Share (17,841,636)
Loss for Diluted Earnings Per Share $ (13,281,985) $ (98,364,332)
Diluted Weighted Average Number of Shares 13,248,684 9,348,100
Loss from continuing operations Per Share – Diluted $ (1) $ (8.61)
Loss from discontinued operations Per Share – Diluted (1.91)
Net loss Per Share – Diluted $ (1) $ (10.52)
v3.23.3
Inventories (Details)
 12 Months Ended
Jun. 30, 2023
USD ($)
Inventories [Abstract]  
Nonmonetary sales and purchases amount $ 71,040,024
Inventories description For the fiscal year ended June 30, 2023, total inventories increased $4,256,945, or 10.1%, to $46,455,131 from $42,198,186 for the fiscal year ended June 30, 2022.
v3.23.3
Inventories (Details) - Schedule of Inventories - USD ($)
Jun. 30, 2023
Jun. 30, 2022
Schedule of Inventories [Abstract]    
Raw materials $ 11,617,989 $ 7,986,436
Supplies and packing materials 410,904 469,524
Work in progress 172,248 198,591
Finished goods 34,253,990 33,543,635
Total $ 46,455,131 $ 42,198,186
v3.23.3
Property, Plant and Equipment (Details) - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Property, Plant and Equipment (Details) [Line Items]    
Depreciation expense   $ 449,841
US statutory income tax rate, percentage   17.20%
Minimum [Member]    
Property, Plant and Equipment (Details) [Line Items]    
Depreciation expense $ 2,172,096  
Maximum [Member]    
Property, Plant and Equipment (Details) [Line Items]    
Depreciation expense   $ 2,621,937
v3.23.3
Property, Plant and Equipment (Details) - Schedule of Property, Plant and Equipment - USD ($)
Jun. 30, 2023
Jun. 30, 2022
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment $ 58,390,650 $ 61,794,515
Less: accumulated depreciation (41,700,404) (42,924,364)
Total 16,690,246 18,870,152
Building and Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment 37,065,465 39,988,862
Auto [Member]    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment 2,716,931 2,892,073
Machinery and Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment $ 18,608,254 $ 18,913,581
v3.23.3
Intangible Assets and Digital Assets (Details)
 12 Months Ended
Mar. 13, 2023
USD ($)
Jul. 02, 2010
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2023
CNY (¥)
Jul. 02, 2010
CNY (¥)
Aug. 16, 2001
USD ($)
Aug. 16, 2001
CNY (¥)
Intangible Assets and Digital Assets (Details) [Line Items]              
Intangible assets land use right, description     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 Assets Acquired $ 210,342            
Land Use Rights [Member]              
Intangible Assets and Digital Assets (Details) [Line Items]              
Intangible assets land use right, description     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 $10,084,895). The intangible asset is being amortized over the grant period of 50 years using the straight-line method.        
Fair value of intangible assets     $ 144,132 ¥ 1,045,950   $ 1,003,887 ¥ 7,285,099
Amortization period of intangible assets     50 years 50 years   50 years 50 years
Technology Patent [Member]              
Intangible Assets and Digital Assets (Details) [Line Items]              
Fair value of intangible assets   $ 1,267,760     ¥ 9,200,000 $ 809,584 ¥ 5,875,068
Amortization period of intangible assets           10 years 10 years
Customer Relationships [Member]              
Intangible Assets and Digital Assets (Details) [Line Items]              
Fair value of intangible assets   8,957,000     65,000,000    
Non-Compete Agreement [Member]              
Intangible Assets and Digital Assets (Details) [Line Items]              
Fair value of intangible assets   $ 181,896     1,320,000    
Land Use Rights [Member]              
Intangible Assets and Digital Assets (Details) [Line Items]              
Amortized remaining useful life   5 years          
Trademarks [Member]              
Intangible Assets and Digital Assets (Details) [Line Items]              
Fair value of intangible assets   $ 5,701,011     ¥ 41,371,630    
v3.23.3
Intangible Assets and Digital Assets (Details) - Schedule of Intangible Assets - USD ($)
Jun. 30, 2023
Jun. 30, 2022
Indefinite-Lived Intangible Assets [Line Items]    
Intangible assets $ 13,563,635 $ 14,935,488
Land use rights, net [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Intangible assets 7,862,624 8,758,704
Technology patent, net [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Intangible assets
Customer relationships, net [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Intangible assets
Non-compete agreement [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Intangible assets
Trademarks [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Intangible assets $ 5,701,011 $ 6,176,784
v3.23.3
Intangible Assets and Digital Assets (Details) - Schedule of Intangible Assets - Land Use Rights [Member] - USD ($)
Jun. 30, 2023
Jun. 30, 2022
Indefinite-Lived Intangible Assets [Line Items]    
Land use rights $ 11,088,765 $ 12,014,170
Less: accumulated amortization (3,226,141) (3,255,466)
Total land use rights, net 7,862,624 $ 8,758,704
Foreign Currency Adjustment [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Land use rights (925,405)  
Total land use rights, net (925,405)  
Amortization/ Subtraction [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Land use rights  
Less: accumulated amortization 29,325  
Total land use rights, net $ 29,325  
v3.23.3
Intangible Assets and Digital Assets (Details) - Schedule of Intangible Assets - Technology Patent [Member] - USD ($)
Jun. 30, 2023
Jun. 30, 2022
Indefinite-Lived Intangible Assets [Line Items]    
Technology know-how $ 2,077,344 $ 2,250,708
Less: accumulated amortization (2,077,344) (2,250,708)
Total technology know-how, net
Foreign Currency Adjustment [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Technology know-how (173,363)  
Less: accumulated amortization 173,363  
Total technology know-how, net  
v3.23.3
Intangible Assets and Digital Assets (Details) - Schedule of Intangible Assets - Customer Relationships [Member] - USD ($)
Jun. 30, 2023
Jun. 30, 2022
Indefinite-Lived Intangible Assets [Line Items]    
Customer relationships   $ 9,704,500
Less: accumulated amortization   (9,704,500)
Total customer relationships, net
Foreign Currency Adjustment [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Customer relationships (747,500)  
Less: accumulated amortization 747,500  
Total customer relationships, net  
Amortization/ Subtraction [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Customer relationships 8,957,000  
Less: accumulated amortization (8,957,000)  
Total customer relationships, net  
v3.23.3
Intangible Assets and Digital Assets (Details) - Schedule of Intangible Assets - Non-compete agreement [Member] - USD ($)
Jun. 30, 2023
Jun. 30, 2022
Indefinite-Lived Intangible Assets [Line Items]    
Non-compete agreement   $ 197,076
Less: accumulated amortization   (197,076)
Total non-compete agreement, net
Foreign Currency Adjustment [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Non-compete agreement (15,180)  
Less: accumulated amortization 15,180  
Total non-compete agreement, net  
Amortization/ Subtraction [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Non-compete agreement 181,896  
Less: accumulated amortization (181,896)  
Total non-compete agreement, net  
v3.23.3
Intangible Assets and Digital Assets (Details) - Schedule of Intangible Assets - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Indefinite-Lived Intangible Assets [Line Items]    
Trademarks $ 5,752,592 $ 6,232,670
Less: accumulated amortization (51,581) (55,886)
Total trademarks, net 5,701,011 $ 6,176,784
Foreign Currency Adjustment [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Trademarks (480,078)  
Less: accumulated amortization 4,305  
Total trademarks, net $ (475,773)  
v3.23.3
Intangible Assets and Digital Assets (Details) - Schedule of Amortization Expenses of Intangible Assets
Jun. 30, 2023
USD ($)
Schedule of Amortization Expenses of Intangible Assets [Abstract]  
2024 $ 307,807
2025 248,563
2026 236,935
2027 221,431
2028 $ 221,431
v3.23.3
Other Non-Current Assets (Details)
¥ in Millions
 1 Months Ended 12 Months Ended
Mar. 31, 2017
CNY (¥)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Other Non-Current Assets (Details) [Line Items]      
Other non-current assets   $ 5,092,721  
Jinong [Member]      
Other Non-Current Assets (Details) [Line Items]      
Description of rental agreement   In March 2017, Jinong entered into the rental agreement for approximately 3,400 mu, and 2600-hectare agriculture lands in Shiquan County, Shaanxi Province. The rental agreement was from April 2017 and was renewable for every ten-year period up to 2066.  
Rental fees (in Yuan Renminbi) | ¥ ¥ 13    
Rental term 10 years    
Amortized expense   $ 1,800,000 $ 2,000,000
v3.23.3
Other Non-Current Assets (Details) - Schedule of Estimated Amortization Expenses of Lease Advance Payments
Jun. 30, 2023
USD ($)
Schedule of Estimated Amortization Expenses of Lease Advance Payments [Abstract]  
2022 $ 1,849,965
2024 1,849,965
2025 1,849,965
2026 $ 1,392,791
v3.23.3
Accrued Expenses and Other Payables (Details) - Schedule of Accrued Expenses and Other Payables - USD ($)
Jun. 30, 2023
Jun. 30, 2022
Schedule of Accrued Expenses and Other Payables [Abstract]    
Payroll and welfare payable $ 188,222 $ 178,341
Accrued expenses 9,805,444 7,636,524
Other payables 4,820,193 5,794,686
Other levy payable 115,568 125,213
Total $ 14,929,427 $ 13,734,764
v3.23.3
Amount Due to Related Parties (Details)
 1 Months Ended 12 Months Ended
Jul. 01, 2022
USD ($)
m²
ft²
Jul. 01, 2022
CNY (¥)
m²
ft²
Dec. 31, 2015
USD ($)
Dec. 31, 2015
CNY (¥)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Apr. 02, 2023
ft²
Jul. 01, 2020
ft²
Amount Due to Related Parties (Details) [Line Items]                
Amount due to related parties         $ 5,439,209 $ 5,192,496    
Borrowed from related party         340,000 150,000    
Advances amount         2,261,693 4,105,449    
Area of land (in Square Feet) | ft²             4,348  
Kingtone Information Technology Co., Ltd. [Member]                
Amount Due to Related Parties (Details) [Line Items]                
Ground rent (in Square Meters) | m² 612 612            
Area of land (in Square Feet) | ft² 6,588 6,588           6,588
Monthly rental payment $ 3,858 ¥ 28,000            
Sales Agreement [Member]                
Amount Due to Related Parties (Details) [Line Items]                
Contingent contracted value amount     $ 3,513,900 ¥ 25,500,000        
Yuxing [Member]                
Amount Due to Related Parties (Details) [Line Items]                
Contingent contracted value amount         0 66,071    
Amount due from related parties         27,560 13,064    
Gufeng [Member] | Xi'an Techteam Science and Technology Industry (Group) Co. Ltd. [Member]                
Amount Due to Related Parties (Details) [Line Items]                
Borrowed from related party         964,600 1,045,100    
Jinong [Member]                
Amount Due to Related Parties (Details) [Line Items]                
Contingent contracted value amount         $ 995 $ 11,431    
v3.23.3
Loan Payables (Details) - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Loan Payables (Details) [Line Items]    
Interest expense $ 295,804 $ 256,784
Loans Payable [Member] | Minimum [Member]    
Loan Payables (Details) [Line Items]    
Loans payable, interest rate 3.65%  
Loans Payable [Member] | Maximum [Member]    
Loan Payables (Details) [Line Items]    
Loans payable, interest rate 5.00%  
v3.23.3
Loan Payables (Details) - Schedule of Loan Payables
 12 Months Ended
Jun. 30, 2023
USD ($)
Loan Payables (Details) - Schedule of Loan Payables [Line Items]  
Short term loans payables $ 6,283,680
Beijing Bank -Pinggu Branch [Member]  
Loan Payables (Details) - Schedule of Loan Payables [Line Items]  
Loan period per agreement, Start and End June 5, 2023-June 5, 2024
Loans payable, interest rate 4.15%
Short term loans payables $ 1,378,000
Huaxia Bank -HuaiRou Branch [Member]  
Loan Payables (Details) - Schedule of Loan Payables [Line Items]  
Loan period per agreement, Start and End June 28, 2023-June 28, 2024
Loans payable, interest rate 3.65%
Short term loans payables $ 1,378,000
Pinggu New Village Bank [Member]  
Loan Payables (Details) - Schedule of Loan Payables [Line Items]  
Loan period per agreement, Start and End June 29, 2023-June 28, 2024
Loans payable, interest rate 5.00%
Short term loans payables $ 964,600
Industrial Bank Co. Ltd [Member]  
Loan Payables (Details) - Schedule of Loan Payables [Line Items]  
Loan period per agreement, Start and End August 19, 2022-August 18, 2024
Loans payable, interest rate 3.98%
Short term loans payables $ 1,047,280
Xian Bank [Member]  
Loan Payables (Details) - Schedule of Loan Payables [Line Items]  
Loan period per agreement, Start and End September 30, 2022-September 29, 2023
Loans payable, interest rate 3.90%
Short term loans payables $ 1,515,800
v3.23.3
Taxes Payable (Details) - USD ($)
 12 Months Ended
Mar. 20, 2019
Apr. 04, 2018
Apr. 28, 2017
Jan. 01, 2008
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2019
Taxes Payable (Details) [Line Items]                  
Periodic tax reduction, description         The two-year tax exemption and three-year 50% tax reduction tax holiday for production oriented FIEs was eliminated.        
Provision for income taxes (in Dollars)         $ 0 $ 0      
Value added tax rate         9.00%        
Change in valuation allowance (in Dollars)         $ 2,701,097        
Deferred tax assets (in Dollars)         $ 97,820        
Income tax, description         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.        
US statutory income tax rate, percentage         21.00% 21.00% 21.00% 21.00% 21.00%
U.S. federal statutory tax rate         0.70% 1.30%      
US Treasury (UST) Interest Rate [Member]                  
Taxes Payable (Details) [Line Items]                  
US statutory income tax rate, percentage         21.00% 21.00%      
PRC [Member]                  
Taxes Payable (Details) [Line Items]                  
Periodic tax reduction, description         “Reinstatement of VAT for Fertilizer Products”, and Notice #97, “Supplementary Reinstatement of VAT for Fertilizer Products”, which restore the VAT of 13% of the gross sales price on certain fertilizer products includes non-organic fertilizer products starting from September 1, 2015, but granted taxpayers a reduced rate of 3% from September 1, 2015 through June 30, 2016.        
Value added tax rate 9.00% 10.00% 11.00%            
PRC [Member] | Minimum [Member]                  
Taxes Payable (Details) [Line Items]                  
Value added tax rate 1.00% 1.00% 2.00%            
PRC [Member] | Maximum [Member]                  
Taxes Payable (Details) [Line Items]                  
Value added tax rate 10.00% 11.00% 13.00%            
Enterprise Income Tax [Member]                  
Taxes Payable (Details) [Line Items]                  
New enterprise income tax rate       25.00%          
Existing enterprise income tax rate       33.00%          
High tech income tax rate       15.00%          
v3.23.3
Taxes Payable (Details) - Schedule of Taxes Payable - USD ($)
Jun. 30, 2023
Jun. 30, 2022
Schedule of Income Taxes and Related Payables [Abstract]    
VAT provision $ (398,499) $ (384,574)
Income tax payable (2,132,400) (2,310,360)
Other levies 591,325 639,237
Repatriation tax 29,010,535 29,010,535
Total $ 27,070,961 $ 26,954,838
v3.23.3
Taxes Payable (Details) - Schedule of Provision for Income Taxes - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Schedule of Provision for Income Taxes [Abstract]    
Current tax – foreign $ (97,820) $ (1,291,828)
Total $ (97,820) $ (1,291,828)
v3.23.3
Taxes Payable (Details) - Schedule of Deferred Tax Assets - USD ($)
Jun. 30, 2023
Jun. 30, 2022
Deferred tax assets    
Deferred Tax Benefit $ 32,464,001 $ 35,067,278
Valuation allowance (32,366,181) (35,067,278)
Total deferred tax assets $ 97,820
v3.23.3
Taxes Payable (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Taxes Payable (Details) - Schedule of Effective Income Tax Rate Reconciliation [Line Items]    
Pretax loss $ (13,379,805) $ (99,614,511)
Expected income tax expense (benefit) (3,218,073) (24,876,635)
High-tech income benefits on Jinong 765,909
Loss from subsidiaries in which no benefit is recognized 2,454,142 24,010,666
Change in valuation allowance on deferred tax asset from US tax benefit 666,111 (1,150,117)
Actual tax expense $ (97,820) $ (1,250,178)
Actual tax expense, Percentage 0.70% 1.30%
China 15% - 25% [Member]    
Taxes Payable (Details) - Schedule of Effective Income Tax Rate Reconciliation [Line Items]    
Pretax loss $ (10,207,847) $ (98,939,698)
Expected income tax expense (benefit) $ (2,551,962) $ (24,734,925)
Expected income tax expense (benefit), Percentage 25.00% 25.00%
High-tech income benefits on Jinong $ 765,909
High-tech income benefits on Jinong, Percentage (0.80%)
Loss from subsidiaries in which no benefit is recognized $ 2,454,142 $ 24,010,666
Loss from subsidiaries in which no benefit is recognized, Percentage (24.00%) (24.30%)
Change in valuation allowance on deferred tax asset from US tax benefit $ (1,291,828)
Change in valuation allowance on deferred tax asset from US tax benefit, Percentage 1.30%
Actual tax expense $ (97,820) $ (1,250,178)
Actual tax expense, Percentage 1.00% 1.30%
United States 21% [Member]    
Taxes Payable (Details) - Schedule of Effective Income Tax Rate Reconciliation [Line Items]    
Pretax loss $ (3,171,958) $ (674,813)
Expected income tax expense (benefit) $ (666,111) $ (141,711)
Expected income tax expense (benefit), Percentage 21.00% 21.00%
High-tech income benefits on Jinong  
High-tech income benefits on Jinong, Percentage
Loss from subsidiaries in which no benefit is recognized  
Loss from subsidiaries in which no benefit is recognized, Percentage
Change in valuation allowance on deferred tax asset from US tax benefit $ 666,111 $ 141,711
Change in valuation allowance on deferred tax asset from US tax benefit, Percentage (21.00%) (21.00%)
Actual tax expense
Actual tax expense, Percentage  
v3.23.3
Stockholders’ Equity (Details) - USD ($)
 12 Months Ended
Nov. 25, 2022
Nov. 12, 2022
Jun. 30, 2023
Jun. 30, 2022
Feb. 02, 2022
Stockholders’ Equity (Details) [Line Items]          
Issuance shares         1,117,142
Ownership cost (in Dollars)         $ 16,757,130
Consulting services (in Dollars)   $ 658,000 $ 658,000 $ 440,000  
Common stock, shares issued     13,380,914 12,141,467  
Common stock, shares outstanding     13,380,914 12,141,467  
Preferred stock, shares authorized     20,000,000 20,000,000  
Preferred stock, par value (in Dollars per share)     $ 0.001 $ 0.001  
2009 Plan [Member]          
Stockholders’ Equity (Details) [Line Items]          
Shares issued for consulting services 122,305        
Common Stock [Member]          
Stockholders’ Equity (Details) [Line Items]          
Common stock, shares issued     13,380,914 12,141,467  
Common stock, shares outstanding     13,380,914 12,141,467  
Preferred Stock [Member]          
Stockholders’ Equity (Details) [Line Items]          
Preferred stock, shares authorized     20,000,000    
v3.23.3
Concentrations and Litigation (Details)
 12 Months Ended
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Concentrations and Litigation (Details) [Line Items]    
Number of vendors 6 6
Purchase amount (in Dollars) $ 71,040,024 $ 99,317,794
Total aggregate amount (in Dollars) $ 71,690,103 $ 99,101,685
Number of customers 6 2
One Vendor [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage 12.20% 11.90%
Two Vendors [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage 12.00% 11.80%
Three Vendor [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage 12.00% 11.60%
Four Vendor [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage 11.80% 11.30%
Five Vendor [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage 11.70% 11.10%
Six Vendor [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage 11.60% 10.90%
Customer One [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage 10.70%  
Customer Two [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage 10.40%  
Customer Three [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage 10.40%  
Customer Four [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage 10.40%  
Customer Five [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage 10.30%  
Customer Six [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage 10.20%  
Supplier Concentration Risk [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage 10.00% 10.00%
Credit Concentration Risk [Member]    
Concentrations and Litigation (Details) [Line Items]    
Total aggregate amount (in Dollars)   $ 33,378,901
Credit Concentration Risk [Member] | Customer One [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage   10.10%
Credit Concentration Risk [Member] | Customer Two [Member]    
Concentrations and Litigation (Details) [Line Items]    
Concentration risk, percentage   10.10%
v3.23.3
Segment Reporting (Details)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Segment Reporting [Abstract]    
Number of operating segments 4  
Number of business segments 4  
Percentage of revenues 1.00% 1.00%
v3.23.3
Segment Reporting (Details) - Schedule of Segment Reporting Information - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Revenues from unaffiliated customers:    
Revenues from unaffiliated customers $ 124,140,355 $ 168,450,904
Operating income (expense):    
Operating income (expense) (13,613,360) (83,798,104)
Net income (loss):    
Net income (loss) (13,281,985) (80,522,696)
Depreciation and Amortization:    
Depreciation and Amortization 2,403,150 2,930,490
Interest expense:    
Interest expense 295,804 256,784
Capital Expenditure:    
Capital Expenditure 1,371,393 164,278
Identifiable assets:    
Identifiable assets 186,681,364 195,115,195
Jinong [Member]    
Revenues from unaffiliated customers:    
Revenues from unaffiliated customers 40,247,303 54,339,228
Operating income (expense):    
Operating income (expense) (4,411,893) (3,466,631)
Net income (loss):    
Net income (loss) (4,224,927) (3,063,634)
Depreciation and Amortization:    
Depreciation and Amortization 785,503 833,042
Interest expense:    
Interest expense 78,342
Capital Expenditure:    
Capital Expenditure 52,664 97,900
Identifiable assets:    
Identifiable assets 87,862,836 100,958,241
Gufeng [Member]    
Revenues from unaffiliated customers:    
Revenues from unaffiliated customers 74,028,542 102,755,286
Operating income (expense):    
Operating income (expense) (6,062,353) (80,233,988)
Net income (loss):    
Net income (loss) (6,280,625) (80,547,966)
Depreciation and Amortization:    
Depreciation and Amortization 761,466 816,510
Interest expense:    
Interest expense 217,462 256,784
Capital Expenditure:    
Capital Expenditure 216,892 29,308
Identifiable assets:    
Identifiable assets 49,749,041 80,923,101
Yuxing [Member]    
Revenues from unaffiliated customers:    
Revenues from unaffiliated customers 9,654,168 11,356,390
Operating income (expense):    
Operating income (expense) 499,479 581,840
Net income (loss):    
Net income (loss) 763,512 722,936
Depreciation and Amortization:    
Depreciation and Amortization 839,514 1,280,938
Interest expense:    
Interest expense
Capital Expenditure:    
Capital Expenditure 101,837 37,069
Identifiable assets:    
Identifiable assets 38,223,482 40,132,337
Antaeus [Member]    
Revenues from unaffiliated customers:    
Revenues from unaffiliated customers 210,342
Operating income (expense):    
Operating income (expense) (465,560)  
Net income (loss):    
Net income (loss) (367,988)
Depreciation and Amortization:    
Depreciation and Amortization 16,667
Interest expense:    
Interest expense
Capital Expenditure:    
Capital Expenditure 1,000,000
Identifiable assets:    
Identifiable assets 3,292,247
Reconciling item (1) [Member]    
Operating income (expense):    
Operating income (expense) [1]
Net income (loss):    
Net income (loss) [1] 1,077 4,513
Identifiable assets:    
Identifiable assets [1] 7,387,637 (27,064,606)
Reconciling item (2) [Member]    
Operating income (expense):    
Operating income (expense) [2] (3,173,033) (679,326)
Net income (loss):    
Net income (loss) [2] (3,173,034) 612,503
Identifiable assets:    
Identifiable assets [2] 166,121 166,121
Reconciling item (3) [Member]    
Net income (loss):    
Net income (loss) [3] $ 1,748,951
[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 gain on discontinuing sales VIEs and the intercompany transaction clearing.
v3.23.3
Commitments and Contingencies (Details)
 12 Months Ended
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Apr. 02, 2023
m²
ft²
Jul. 01, 2022
USD ($)
ft²
Jul. 01, 2022
CNY (¥)
ft²
Jul. 01, 2020
m²
ft²
Commitments and Contingencies [Line Items]            
Pursuant to rented (in Square Meters) | m²     404      
Pursuant to lease in square feet (in Square Feet) | ft²     4,348      
Description of rental term In February 2004, Tianjuyuan signed a fifty-year rental agreement with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District.          
Rent expenses | $ $ 51,192 $ 97,307        
Jinong [Member]            
Commitments and Contingencies [Line Items]            
Pursuant to rented (in Square Meters) | m²           612
Kingtone Information [Member]            
Commitments and Contingencies [Line Items]            
Pursuant to lease in square feet (in Square Feet) | ft²       6,588 6,588 6,588
Monthly rent       $ 3,858 ¥ 28,000  
v3.23.3
Commitments and Contingencies (Details) - Schedule of Contingent Rent Expenses
Jun. 30, 2023
USD ($)
Schedule of Payments for Lease Expenses [Abstract]  
2024 $ 55,392
2025 55,392
2026 55,392
2027 55,392
2028 $ 55,392
v3.23.3
Variable Interest Entities (Details) - Schedule of VIEs Consolidated Financial Statements - Variable Interest Entities [Member] - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Current Assets    
Cash and cash equivalents $ 323,854 $ 385,308
Accounts receivable, net 283,221 710,143
Inventories 24,288,379 22,062,527
Other current assets 108,677 22,932
Related party receivable 27,560 13,064
Advances to suppliers 1,879,704
Total Current Assets 25,031,691 25,073,678
Plant, Property and Equipment, Net 5,887,278 6,926,023
Other assets 9,784 10,600
Intangible Assets, Net 7,294,729 8,122,036
Total Assets 38,223,482 40,132,337
Current Liabilities    
Accounts payable 12,512 107,095
Customer deposits 62,134 10,016
Accrued expenses and other payables 282,968 306,116
Amount due to related parties 39,346,051 42,105,604
Total Current Liabilities 39,703,665 42,528,831
Total Liabilities 39,703,665 42,528,831
Stockholders’ equity (1,480,183) (2,396,494)
Total Liabilities and Stockholders’ Equity 38,223,482 40,132,337
Revenue 9,654,168 11,356,390
Expenses 8,890,656 10,633,454
Net income $ 763,512 $ 722,936
v3.23.3
Restricted Net Assets (Details)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Parent Company [Member]    
Restricted Net Assets (Details) [Line Items]    
Subsidiaries net assets, percentage 25.00% 25.00%
v3.23.3
Restricted Net Assets (Details) - Schedule of Parent Company Condensed Balance Sheets - Parent Company [Member] - USD ($)
Jun. 30, 2023
Jun. 30, 2022
ASSETS    
Cash and cash equivalents $ 49,598 $ 52,485
Other current assets 169,071 169,071
Total Current Assets 218,668 221,555
Long-term equity investment 139,569,715 146,457,664
Total long-term assets 139,569,715 146,457,664
Total Assets 139,788,383 146,679,219
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Accounts payable 214,520 214,520
Amount due to related parties 4,445,449 4,105,449
Other payables and accrued expenses 9,760,556 7,588,486
Total Current Liabilities 14,420,526 11,908,455
Common stock, $.001 par value, 115,197,165 shares authorized, 13,380,914 and 12,141,467 shares issued and outstanding as of June 30, 2023 and June 30, 2022, respectively 13,381 12,141
Additional paid in capital 242,090,576 224,676,686
Accumulated other comprehensive (loss) (26,950,493) (13,414,442)
Retained earnings (89,785,607) (76,503,621)
Total Stockholders’ Equity 125,367,857 134,770,764
Total Liabilities and Stockholders’ Equity $ 139,788,383 $ 146,679,219
v3.23.3
Restricted Net Assets (Details) - Schedule of Parent Company Condensed Balance Sheets (Parentheticals) - Parent Company [Member] - $ / shares
Jun. 30, 2023
Jun. 30, 2022
Condensed Balance Sheet Statements, Captions [Line Items]    
Common stock, par value (in Dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 115,197,165 115,197,165
Common stock, shares issued 13,380,914 12,141,467
Common stock, shares outstanding 13,380,914 12,141,467
v3.23.3
Restricted Net Assets (Details) - Schedule of Parent Company Condensed Statements of Operations - Parent Company [Member] - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Condensed Income Statements, Captions [Line Items]    
Revenue
General and administrative expenses 3,173,034 679,326
Interest income 1,076 4,513
Provision for tax (1,291,828)
Equity investment in subsidiaries (10,110,028) (98,981,348)
Net income $ (13,281,986) $ (98,364,333)
v3.23.3
Restricted Net Assets (Details) - Schedule of Parent Company Condensed Statements of Cash Flows - Parent Company [Member] - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Condensed Cash Flow Statements, Captions [Line Items]    
Net cash used in operating activities $ (17,100,265) $ (54,476,955)
Net cash provided by investing activities 2,001,000
Net cash provided by financing activities 17,097,130 54,454,275
Cash and cash equivalents, beginning balance 52,484 75,165
Cash and cash equivalents, ending balance $ 2,050,350 $ 52,484
v3.23.3
Subsequent Events (Details)
Nov. 02, 2023
shares
Forecast [Member]  
Subsequent Event [Line Items]  
Issuance of common stock 2,759,011
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