UNITED STATES

SECURITIES AND EXCHANGE COMMISSION 

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

 

For the quarterly period ended December 31, 2023

 

☐ TRANSITION REPORT PURSUANT TO 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   (IRS Employer
incorporation or organization)   Identification No.)

 

3rd floor, Borough A, Block A. No. 181, South Taibai 

Road, Xi’an, Shaanxi province, PRC 710065 

(Address of principal executive offices) (Zip Code)

 

+86-29-88266368

(Issuer’s telephone number, including area code)

 

Indicate by check mark whether the issuer (1) 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 reports), 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 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

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

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock   CGA    NYSE 

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 13,820,021 shares of common stock, $0.001 par value, as of February 9, 2024.

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
Number
PART I FINANCIAL INFORMATION 1
     
Item 1. Financial Statements (unaudited) 1
     
  Condensed Consolidated Balance Sheets as of December 31, 2023 and June 30, 2023 1
     
  Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months and Six Months Ended December 31, 2023 and 2022 2
     
  Condensed Consolidated Statements of Stockholders’ Equity for the Three Months and Six Months Ended December 31, 2023 and 2022 3
     
  Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2023 and 2022 5
     
  Notes to Condensed Consolidated Financial Statements 6
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 21
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 35
     
Item 4. Controls and Procedures 36
     
PART II OTHER INFORMATION 37
     
Item 6. Exhibits 37
     
Signatures 38
   
Exhibits/Certifications 39

 

i

 

INFORMATION RELATING TO FORWARD-LOOKING STATEMENTS

 

In addition to historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. You can identify such forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “would” and similar expressions intended to identify forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. These forward-looking statements may include, among other things, statements relating to:

 

  ● our expectations regarding the market for our products and services;

 

  ● our expectations regarding the continued growth of our industry;

 

  ● our beliefs regarding the competitiveness of our products;

 

  ● our expectations regarding the expansion of our manufacturing capacity;

 

  ● our expectations with respect to increased revenue growth and our ability to maintain profitability resulting from increases in our production volumes;

 

  ● our future business development, results of operations and financial condition;

 

  ● competition from other fertilizer and plant producers;

 

  ● the loss of any member of our management team;

 

  ● our ability to integrate acquired subsidiaries and operations into existing operations;

 

  ● market conditions affecting our equity capital;

 

  ● our ability to successfully implement our selective acquisition strategy;

 

  ● changes in general economic conditions;

 

  ● changes in accounting rules or the application of such rules;

 

  ● any failure to comply with the periodic filing and other requirements of The New York Stock Exchange, or NYSE, for continued listing,

 

  ● any failure to identify and remediate the material weaknesses or other deficiencies in our internal control and disclosure control over financial reporting;

 

Also, forward-looking statements represent our estimates and assumptions only as of the date of this report. You should read this report and the documents that we reference in this report, or that we filed as exhibits to this report, in their entirety and with the understanding that our actual future results may be materially different from what we expect.

 

Except as required by law, we assume no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.

 

ii

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

   December 31,
2023		   June 30,
2023		 
ASSETS        
Current Assets        
Cash and cash equivalents  $70,402,736   $71,142,188 
Digital assets   44,399    210,342 
Accounts receivable, net   20,988,837    16,455,734 
Inventories, net   39,554,487    46,455,131 
Prepaid expenses and other current assets   2,457,395    2,603,489 
Amount due from related parties   
-
    27,560 
Advances to suppliers, net   16,966,359    14,332,715 
Total Current Assets   150,414,213    151,227,159 
           
Plant, property and equipment, net   17,436,638    16,690,245 
Other assets   10,025    9,784 
Other non-current assets   4,268,057    5,092,721 
Intangible assets, net   13,784,849    13,563,635 
Deferred tax asset   114,175    97,820 
Total Assets  $186,027,957   $186,681,364 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current Liabilities          
Accounts payable  $1,583,655   $2,100,449 
Customer deposits   5,407,480    5,489,781 
Accrued expenses and other payables   16,787,542    14,929,427 
Amount due to related parties   5,653,709    5,439,209 
Taxes payable   26,859,846    27,070,961 
Short term loans   7,653,040    5,346,640 
           
Total Current Liabilities   63,945,272    60,376,467 
           
Long-term Liabilities   
 
    
 
 
Long-term loans   
-
    937,040 
Total Liabilities  $63,945,272    61,313,507 
           
Commitments and Contingencies   
-
    
-
 
           
Stockholders’ Equity          
Preferred Stock, $.001 par value, 20,000,000 shares authorized, 0 shares issued and outstanding as of December 31, 2023 and June 30, 2023, respectively   
-
    
-
 
Common stock, $.001 par value, 115,197,165 shares authorized, 13,380,914 and 13,380,914 shares issued and outstanding as of December 31, 2023 and June 30, 2023, respectively   13,381    13,381 
Additional paid-in capital   242,090,576    242,090,576 
Statutory reserve   26,571,173    26,728,079 
Retained earnings   (123,510,975)   (116,513,686)
Accumulated other comprehensive loss   (23,081,470)   (26,950,493)
Total Stockholders’ Equity   122,082,685    125,367,857 
           
Total Liabilities and Stockholders’ Equity  $186,027,957   $186,681,364 

 

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

 

1

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE LOSS

(UNAUDITED)

 

   Three Months Ended
December 31,		   Six Months Ended
December 31,		 
   2023   2022   2023   2022 
Sales                
Jinong  $6,811,640   $9,842,749    16,100,398   $21,990,751 
Gufeng   8,209,157    11,849,719    18,630,431    24,428,541 
Yuxing   2,452,187    2,846,739    4,794,903    5,717,240 
Antaeus   327,130    
-
    672,244    
-
 
Net sales   17,800,114    24,539,207    40,197,976    52,136,532 
Cost of goods sold                    
Jinong   4,982,284    7,152,122    11,588,897    15,912,292 
Gufeng   7,198,290    10,477,612    16,193,611    21,732,489 
Yuxing   2,042,241    2,395,056    3,919,768    4,792,525 
Antaeus   248,812    
-
    517,359    
-
 
Cost of goods sold   14,471,627    20,024,790    32,219,635    42,437,306 
Gross profit   3,328,487    4,514,417    7,978,341    9,699,226 
Operating expenses                    
Selling expenses   1,770,860    1,658,654    3,650,014    4,096,008 
General and administrative expenses   6,947,810    6,535,402    11,504,417    9,820,517 
Total operating expenses   8,718,670    8,194,056    15,154,431    13,916,525 
Loss from operations   (5,390,183)   (3,679,639)   (7,176,090)   (4,217,299)
Other income (expense)                    
Other (expense)   30,926    82,071    40,709    109,861 
Interest income   51,125    68,761    106,197    132,761 
Interest expense   (73,813)   (67,739)   (141,367)   (149,983)
Total other (expense)   8,238    83,093    5,539    92,639 
Loss before income taxes   (5,381,945)   (3,596,545)   (7,170,551)   (4,124,660)
Provision for income taxes   (11,942)   
-
    (16,355)   
-
 
Net loss   (5,370,003)   (3,596,545)   (7,154,196)   (4,124,660)
                     
Other comprehensive income (loss)                    
Foreign currency translation gain (loss)   4,705,400    6,086,889    3,869,023    (4,833,269)
Comprehensive (loss) income  $(664,603)  $2,490,344    (3,285,173)  $(8,957,929)
                     
Basic weighted average shares outstanding   13,380,914    13,306,467    13,380,914    13,118,610 
Basic net loss per share  $(0.40)  $(0.27)   (0.53)  $(0.31)
                     
Diluted weighted average shares outstanding   13,380,914    13,306,467    13,380,914    13,118,610 
Diluted net loss per share  $(0.40)  $(0.27)   (0.53)  $(0.31)

 

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

 

2

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED DECEMBER 31, 2023 AND 2022

(UNAUDITED)

 

   Number Of   Common   Additional
Paid In		   Statutory   Retained   Accumulated
Other
Comprehensive		   Total
Stockholders’		 
   Shares   Stock   Capital   Reserve   Earnings   Loss   Equity 
BALANCE, SEPTEMBER 30, 2023   13,380,914   $13,381   $242,090,576   $26,732,603   $(118,302,403)  $(27,786,870)  $122,747,287 
                                    
Net loss                       (5,370,003)        (5,370,003)
Issuance of stock                                 
-
 
                                    
Transfer to statutory reserve                  (161,430)   161,430         
-
 
                                    
Other comprehensive income (loss)                            4,705,400    4,705,400 
                                    
BALANCE, DECEMBER 31, 2023   13,380,914    13,381    242,090,576    26,571,173    (123,510,975)   (23,081,470)   122,082,685 

 

   Number Of   Common   Additional
Paid In		   Statutory   Retained   Accumulated
Other
Comprehensive		   Total
Stockholders’		 
   Shares   Stock   Capital   Reserve   Earnings   Loss   Equity 
BALANCE, SEPTEMBER 30, 2022   13,258,609   $13,259   $241,432,699   $26,990,562   $(104,022,298)  $(24,334,600)  $140,079,622 
                                    
Net loss                       (3,596,545)        (3,596,545)
Issuance of stock for consulting services   122,305    122    657,878                   658,000 
Transfer to statutory reserve                  (127,219)   127,219           
                                    
Other comprehensive income (loss)                            6,086,889    6,086,889 
                                    
BALANCE, DECEMBER 31, 2022   13,380,914    13,381    242,090,576    26,863,343    (107,491,624)   (18,247,711)   143,227,965 

 

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

 

3

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED DECEMBER 31, 2023 AND 2022

 

   Number   Common   Additional
Paid In		   Statutory   Retained   Accumulated
Other
Comprehensive		   Total
Stockholders’		 
   Of Shares   Stock   Capital   Reserve   Earnings   Income (Loss)   Equity 
BALANCE, JUNE 30, 2023   13,380,914    13,381    242,090,576    26,728,079    (116,513,686)   (26,950,493)   125,367,857 
                                    
Net (loss)        
 
    
 
    
 
    (7,154,196)   
 
    (7,154,196)
Issuance of stock        
 
    
 
    
 
    
 
    
 
    
-
 
Issuance of stock for consulting services                                 
-
 
Transfer to statutory reserve        
 
    
 
    (156,906)   156,906    
 
    
-
 
                                    
Other comprehensive income (loss)        
 
    
 
    
 
    
 
    3,869,023    3,869,023 
                                    
BALANCE, DECEMBER 31, 2023   13,380,914    13,381    242,090,576    26,571,173    (123,510,975)   (23,081,470)   122,082,685 

 

   Number   Common   Additional
Paid In		   Statutory   Retained   Accumulated
Other
Comprehensive		   Total
Stockholders’		 
   Of Shares   Stock   Capital   Reserve   Earnings   Income (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)        
 
    
 
    
 
    (4,124,660)   
 
    (4,124,660)
                                    
Issuance of stock   1,117,142    1,117    16,756,013    
 
    
 
    
 
    16,757,130 
Issuance of stock for consulting services   122,305    122    657,878                   658,000.00 
Transfer to statutory reserve        
 
    
 
    (7,625)   7,625    
 
    
-
 
                                    
Other comprehensive income (loss)        
 
    
 
    
 
    
 
    (4,833,269)   (4,833,269)
                                    
BALANCE, DECEMBER 31, 2022   13,380,914    13,381    242,090,576    26,863,343    (107,491,624)   (18,247,711)   143,227,965 

 

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

 

4

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

   Six Months Ended
December 31,		 
   2023   2022 
Cash flows from operating activities        
Net loss  $(7,154,196)  $(4,124,660)
Adjustments to reconcile Net loss to net cash provided by (used in) operating activities          
Depreciation and amortization   1,342,287    1,225,024 
Provision for losses on accounts receivable   2,653,360    1,694,887 
Inventories impairment   4,017,664    1,684,703 
Changes in operating assets          
Digital assets   165,942    
 
 
Accounts receivable   (6,702,559)   (1,434,613)
Amount due from related parties   27,707    2,550)
Other current assets   202,270    (9,385,507)
Inventories   3,877,331    (6,496,098)
Advances to suppliers   (2,242,010)   12,684,175 
Other assets   932,385    964,237 
Deferred tax assets   (16,355)   
 
 
Changes in operating liabilities          
Accounts payable   (545,901)   297,553 
Customer deposits   (213,643)   (237,629)
Amount due to related parties   (1,000)   (10,969)
Tax payables   (160,178)   48,130 
Accrued expenses and other payables   1,750,222    1,019,323 
Interest payable   
-
    (734,953)
Net cash used in operating activities   (2,066,674)   (2,803,847)
Cash flows from investing activities          
Purchase of plant, property, and equipment   (1,607,163)   (305,689)
Sales of discontinued operations   
 
    895,411 
Net cash (used in) provided by investing activities   (1,607,163)   589,722 
           
Cash flows from financing activities          
Proceeds from the sale of common stock   
-
    16,757,130 
Proceeds from loans   2,770,707    2,865,315 
Repayment of loans   (1,579,303)   
 
 
Advance from related party   191,000    250,000 
Net cash provided by financing activities   1,382,404    19,872,445 
           
Effect of exchange rate change on cash and cash equivalents   1,551,981    (1,309,475)
Net (decrease) increase in cash and cash equivalents   (739,452)   16,348,845 
           
Cash and cash equivalents, beginning balance   71,142,188    57,770,303 
Cash and cash equivalents, ending balance  $70,402,736   $74,119,148 
           
Supplement disclosure of cash flow information          
Interest expense paid  $141,367   $149,983 
Income taxes paid  $164,822   $211,167 

 

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

 

5

 

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

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.

 

6

 

Our current corporate structure is set forth in the following diagram:

 

 

  

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

 

7

 

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”).

 

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.

 

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 December 31, 2023, the Company does not have any material leases for the implementation of ASC 842.

 

8

 

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 December 31, 2023 and June 30, 2023 were $67,909,293 and $69,091,838, respectively. There is no insurance securing these deposits in China. In addition, the Company also had $2,493,443 and $2,050,350 in cash in three banks in the United States as of December 31, 2023 and June 30, 2023, 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 December 31, 2023, the Company held Bitcoin as digital assets with amount of $44,399 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 December 31, 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 adequacy of these reserves at each year-end. Accounts considered uncollectible are provisioned for /written off based upon management’s assessment. As of December 31, 2023, and June 30, 2023, the Company had accounts receivable of $20,988,837 and $16,455,734, net of allowance for doubtful accounts of $50,107,077 and $54,708,486, respectively. The company recorded bad debt expense in the amount of $2.7 and $1.7 for the six months ended December 31, 2023 and 2022, respectively. The Company adopts no policy to accept product returns after 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 December 31, 2023, and 2022, the Company had no reserve for obsolete goods. The company confirmed the loss of $4.0 million and $1.7 million of inventories for the six months ended December 31, 2023 and 2022, respectively.

  

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 December 31, 2023 and 2022, respectively. 

 

Customer deposits

 

Payments received before all the relevant criteria for revenue recognition are satisfied are recorded as customer deposits. When all revenue recognition criteria are met, the customer deposits are recognized as revenue. As of December 31, 2023, and June 30, 2023, the Company had customer deposits of $5,407,480 and $5,489,781, respectively.

 

9

 

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:

 

   Three Months Ended 
   December 31, 
   2023   2022 
Net loss for Basic Earnings Per Share  $(5,370,003)  $(3,596,545)
Basic Weighted Average Number of Shares   13,380,914    13,306,467 
Net loss Per Share – Basic  $(0.40)  $(0.27)
Net loss for Diluted Earnings Per Share  $(5,370,003)  $(3,596,545)
Diluted Weighted Average Number of Shares   13,380,914    13,306,467 
Net loss Per Share – Diluted  $(0.40)  $(0.27)

  

   Six Months Ended 
   December 31, 
   2023   2022 
Net loss for Basic Earnings Per Share  $(7,154,196)  $(4,124,660)
Basic Weighted Average Number of Shares   13,380,914    13,118,610 
Net loss Per Share – Basic  $(0.53)  $(0.31)
Net loss for Diluted Earnings Per Share  $(7,154,196)  $(4,124,660)
Diluted Weighted Average Number of Shares   13,380,914    13,118,610 
Net loss Per Share – Diluted  $(0.53)  $(0.31)

 

Recent accounting pronouncements

 

The Company has evaluated all recently issued accounting pronouncements and does not believe any such pronouncements currently have, and does not expect such pronouncements to have, a material impact on the Condensed Consolidated Financial Statements on a prospective basis.

  

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 during the reporting period from July 1, 2023 through December 31, 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.

 

10

 

NOTE 4 – INVENTORIES

 

Inventories consisted of the following:

 

   December 31,   June 30, 
   2023   2023 
Raw materials  $5,511,077   $11,617,989 
Supplies and packing materials  $427,724   $410,904 
Work in progress  $174,903   $172,248 
Finished goods  $33,440,783   $34,253,990 
Total  $39,554,487   $46,455,131 

 

The company confirmed the loss of $4.0 million and $1.7 million of inventories for the six months ended December 31, 2023 and 2022, respectively.

 

NOTE 5 – PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment consisted of the following:

 

   December 31,   June 30, 
   2023   2023 
Building and improvements  $37,989,727   $37,065,465 
Auto   2,784,202    2,716,931 
Machinery and equipment   19,139,320    18,608,254 
Others   1,502,600    
-
 
Total property, plant and equipment   61,415,850    58,390,650 
Less: accumulated depreciation   (43,979,211)   (41,700,404)
Total  $17,436,639   $16,690,246 

 

For the six months ended December 31, 2023, total depreciation expense was $1,250,325, increased $140,409, or 12.7%, from $1,109,917 for the six months ended December 31, 2022.

 

NOTE 6 – INTANGIBLE ASSETS AND DIGITAL ASSETS

 

Intangible assets consisted of the following:

 

   December 31,   June 30, 
   2023   2023 
Land use rights, net  $7,943,175   $7,862,624 
Technology patent, net   
-
    
-
 
Customer relationships, net   
-
    
-
 
Non-compete agreement   
-
    
-
 
Trademarks   5,841,674    5,701,011 
Total  $13,784,849   $13,563,635 

 

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 $10,333,707). 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 $147,688). 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 $1,028,656). The intangible asset is being amortized over the grant period of 50 years.

 

11

 

The Land Use Rights consisted of the following:

 

   December 31,   June 30, 
   2023   2023 
Land use rights  $11,362,363    11,088,765 
Less: accumulated amortization   (3,419,188)   (3,226,141)
Total land use rights, net  $7,943,175    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 humic acid. The fair value of the related intangible asset was determined to be the respective cost of RMB 5,875,068 (or $829,560) and is being amortized over the patent period of 10 years using the straight-line method. This technology patent has been fully amortized.

 

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value of the acquired technology patent was estimated to be RMB9,200,000 (or $1,299,040) and is amortized over the remaining useful life of six years using the straight-line method. As of December 31, 2023, this technology patent is fully amortized.

 

The technology know-how consisted of the following:

 

   December 31,   June 30, 
   2023   2023 
Technology know-how  $2,128,600   $2,077,344 
Less: accumulated amortization   (2,128,600)   (2,077,344)
Total technology know-how, net  $
-
   $
-
 

 

CUSTOMER RELATIONSHIPS

 

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value of the acquired customer relationships was estimated to be RMB65,000,000 (or $9,178,000) and is amortized over the remaining useful life of ten years.

 

   December 31,   June 30, 
   2023   2023 
Customer relationships  $9,178,000   $8,957,000 
Less: accumulated amortization   (9,178,000)   (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 of the acquired non-compete agreement was estimated to be RMB1,320,000 (or $186,384) and is amortized over the remaining useful life of five years using the straight-line method.

 

   December 31,   June 30, 
   2023   2023 
Non-compete agreement  $186,384   $181,896 
Less: accumulated amortization   (186,384)   (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 of the acquired trademarks was estimated to be RMB41,371,630 (or $5,841,674) and is subject to an annual impairment test.

 

   December 31,   June 30, 
   2023   2023 
Trademarks  $5,894,528   $5,752,592 
Less: accumulated amortization   (52,854)   (51,581)
Total trademarks, net  $5,841,674   $5,701,011 

 

12

 

AMORTIZATION EXPENSE

 

Estimated amortization expenses of intangible assets for the next five twelve months periods ended December 31, are as follows:

 

Twelve Months Ended on December 31,  Expense
($)		 
2024   275,348 
2025   254,696 
2026   228,880 
2027   226,894 
2028   226,894 

 

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 December 31, 2023, the company held digital assets with amount of $44,399.

 

NOTE 7 – OTHER NON-CURRENT ASSETS

 

Other non-current assets mainly include advance payments related to leasing land for use by the Company. As of December 31, 2023, the balance of other non-current assets was $4,268,057, which was the lease fee advances for agriculture lands that the Company engaged in Shiquan County from 2025 to 2027.

 

In March 2017, Jinong entered into a lease agreement for approximately 3,400 mu, and 2600-hectare agriculture lands in Shiquan County, Shaanxi Province. The lease was from April 2017 and was renewable for every ten-year period up to 2066. The aggregate leasing fee was approximately RMB 13 million per annum, The Company had made 10-year advances of leasing fee per lease terms. The Company has amortized $1.9 million and $0.5 million as expenses for the three months ended December 31, 2023 and 2022, respectively.

 

Estimated amortization expenses of the lease advance payments for the next four twelve-month periods ended December 31 and thereafter are as follows:

 

Twelve months ending December 31,    
2024  $1,895,610 
2025  $1,895,610 
2026  $1,895,610 
2027  $476,837 

 

NOTE 8 – ACCRUED EXPENSES AND OTHER PAYABLES

 

Accrued expenses and other payables consisted of the following:

 

   December 31,   June 30, 
   2023   2023 
Payroll and welfare payable  $168,665   $188,222 
Accrued expenses   11,888,205    9,805,444 
Other payables   4,612,253    4,820,193 
Other levy payable   118,419    115,568 
Total  $16,787,542   $14,929,427 

 

13

 

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 RMB 25,500,000 (approximately $3,600,600). For the six months ended December 31, 2023 and 2022, Yuxing hadn’t sold any products to 900LH.com.

 

The amount due from 900LH.com to Yuxing was $0 and $27,560 as of December 31, 2023 and June 30, 2023, respectively.

 

As of December 31, 2023, and June 30, 2023, the amount due to related parties was $5,653,709 and $5,439,209, respectively.  As of December 31, 2023, and June 30, 2023, $988,400 and $964,600, respectively were amounts that Gufeng borrowed from a related party, Xi’an Techteam Science& Technology Industry (Group) Co. Ltd., a company controlled by Mr. Zhuoyu Li, Chairman and CEO of the Company, representing unsecured, non-interest-bearing loans that are due on demand.  These loans are not subject to written agreements. As of December 31, 2023, and June 30, 2023, $2,336,693 and $2,261,693, respectively were advances from Mr. Zhuoyu Li, Chairman and CEO of the Company. The advances were unsecured and non-interest-bearing. As of December 31, 2023, and June 30, 2023, $116,000 and $0, respectively were advances from Mr. Zhibiao Pan, Co-CEO of the Company. The advances were unsecured and non-interest-bearing.

 

As of December 31, 2023, and June 30, 2023, the Company’s subsidiary, Jinong, owed 900LH.com $0 and $995, respectively.

 

On July 1, 2022, Jinong signed an office lease with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provides for a two-year term effective as of July 1, 2022 with monthly rent of RMB28,000 (approximately $3,954).

 

NOTE 10 – LOAN PAYABLES

 

As of December 31, 2023, the short-term and long-term loan payables consisted of four loans which mature on dates ranging from June 5, 2024 through October 6, 2024 with interest rates ranging from 3.65% to 5.00%. The first two loans are collateralized by Tianjuyuan’s land use right and building ownership right.

 

No.  Payee  Loan period per agreement  Interest
Rate		   December 31,
2023		 
1  Beijing Bank -Pinggu Branch  June 5, 2023-June 5, 2024   4.15%   1,412,000 
2  Huaxia Bank -HuaiRou Branch  June 28, 2023-June 28, 2024   3.65%   1,412,000 
3  Pinggu New Village Bank  June 29, 2023-June 28, 2024   5.00%   988,400 
4  Industrial Bank Co. Ltd  August 19, 2022-February 18, 2024   3.98%   56,480 
5  Industrial Bank Co. Ltd  August 19, 2022-August 18, 2024   3.98%   960,160 
6  Industrial Bank Co. Ltd  October 7, 2023-October 6, 2024   3.70%   2,824,000 
   Total          $7,653,040 

 

The interest expense from loans was $141,367 and $149,983 for the six months ended December 31, 2023 and 2022, respectively.

 

14

 

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 no provision for income taxes for the three-month period ended December 31, 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

 

   December 31,   June 30, 
   2023   2023 
VAT provision  $(571,108)  $(398,499)
Income tax payable   (2,185,015)   (2,132,400)
Other levies   605,434    591,325 
Repatriation tax   29,010,535    29,010,535 
Total  $26,859,846   $27,070,961 

 

The provision for income taxes consists of the following:

 

   December 31,   December 31, 
   2023   2022 
Current tax - foreign  $(16,355)  $
            -
 
Deferred tax   
-
    
-
 
Total  $(16,355)  $
-
 

 

Significant components of deferred tax assets were as follows:

 

   December 31,   June 30, 
   2023   2023 
Deferred tax assets        
Deferred Tax Benefit   33,278,942    32,464,001 
Valuation allowance   (33,164,766)   (32,366,181)
Total deferred tax assets  $114,175    97,820 

 

15

 

Tax Rate Reconciliation

 

Our effective tax rates were approximately 0.2% and 0% for the six months ended December 31, 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 (loss) differ from the amounts computed by applying the US statutory income tax rate of 21.0% to income before income taxes for the six months ended December 31, 2023 and 2022 for the following reasons:

 

December 31, 2023

 

   China
15% - 25%		       United
States 21%		       Total     
Pretax loss  $(4,831,871)        (2,338,679)        (7,170,550)     
                        　      
Expected income tax expense (benefit)   (1,207,968)   25.0%   (491,123)   21.0%   (1,699,090)     
High-tech income benefits on Jinong   
-
    
-
    
-
    
　
    
-
      
Losses from subsidiaries in which no benefit is recognized   1,191,613    -24.7%   
-
    
　
    1,191,613      
Change in valuation allowance on deferred tax asset from US tax benefit   
-
    
-
    491,123    -21.0%   491,123      
Actual tax expense  $(16,355)   0.3%   
-
    
-
    (16,355)   0.2%

 

December 31, 2022

 

   China
15% - 25%		       United
States 21%		       Total     
Pretax loss  $(2,412,874)        (1,711,786)       $(4,124,660)     
                               
Expected income tax expense (benefit)   (603,219)   25.0%   (359,475)   21.0%   (962,693)     
High-tech income benefits on Jinong   142,607    (5.9)%   
-
    
-
    142,607      
Losses from subsidiaries in which no benefit is recognized   460,612    (19.1)%   
-
    
-
    460,612      
Change in valuation allowance on deferred tax asset from US tax benefit   
-
    0%   359,475    (21.0)%   359,475      
Actual tax expense  $
-
    0%  $
-
    0%  $
-
    0%

 

NOTE 12 – STOCKHOLDERS’ EQUITY

 

Common Stock

 

There were no shares of common stock issued during the six months ended December 31, 2023.

 

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 an amount of $658,000 payable of consulting services.

 

On January 18, 2024, the Company issued 439,107 shares of common stock to settle an amount of $887,000 payable of consulting services.

 

As of December 31, 2023, and June 30, 2023, there were 13,380,914 and 13,380,914 shares of common stock issued and outstanding, respectively.

 

16

 

Preferred Stock

 

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

 

As of December 31, 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 – CONCENTRATIONS AND LITIGATION

 

Market Concentration

 

The majority of 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

 

None of the vendors accounted over 10% of the Company’s purchase of raw materials and supplies for the six months ended December 31, 2023 and 2022.

 

No customer accounted for over 10% of the Company’s sales for the six months ended December 31, 2023 and 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 December 31, 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 14 – SEGMENT REPORTING

 

As of December 31, 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.

 

17

 

   Three Months
Ended		   Three Months
Ended		   Six Months
Ended		   Six Months
Ended		 
   December 31,
2023		   December 31,
2022		   December 31,
2023		   December 31,
2022		 
Revenues from unaffiliated customers:                
Jinong  $6,811,640   $9,842,749   $16,100,398   $21,990,751 
Gufeng   8,209,157    11,849,718    18,630,431    24,428,540 
Yuxing   2,452,187    2,846,740    4,794,903    5,717,241 
Antaeus   327,130    
-
    672,244    
-
 
Consolidated  $17,800,114   $24,539,207   $40,197,976   $52,136,532 
                     
Operating income (loss):                    
Jinong  $(360,423)  $(1,598,264)  $(505,546)  $(678,621)
Gufeng   (1,873,590)   (1,547,362)   (3,093,472)   (2,211,092)
Yuxing   (1,299,044)   200,253    (1,144,362)   384,247 
Antaeus   (63,521)   
-
    (94,017)   
-
 
Reconciling item (1)   
-
    (734,266)   
-
    (1,711,833)
Reconciling item (2)   (1,793,605)   
-
    (2,338,693)   
-
 
Consolidated  $(5,390,183)  $(3,679,639)  $(7,176,090)  $(4,217,299)
                     
Net income (loss):                    
Jinong  $(316,024)  $(1,554,778)  $(430,386)  $(570,428)
Gufeng   (1,917,160)   (1,590,123)   (3,179,583)   (2,336,623)
Yuxing   (1,298,291)   282,590    (1,144,020)   494,176 
 Antaeus   (44,923)   
-
    (61,526)   
-
 
Reconciling item (1)   
-
    31    12    47 
Reconciling item (2)   (1,793,605)   (734,266)   (2,338,693)   (1,711,832)
                     
Consolidated  $(5,370,003)  $(3,596,545)  $(7,154,196)  $(4,124,660)
                     
Depreciation and Amortization:                    
Jinong  $190,510   $191,858   $379,817   $390,103 
Gufeng   183,271    186,394    365,611    380,047 
Yuxing   186,417    184,594    371,642    454,874 
Antaeus   125,130    
-
    225,217    
-
 
Consolidated  $685,328   $562,846   $1,342,287   $1,225,024 
                     
Interest expense:                    
Jinong   30,388    25,127    55,516    25,127 
Gufeng   43,425    42,612    85,851    124,856 
Yuxing   
-
    
-
    
-
    
-
 
Antaeus   
-
    
-
    
-
    
--
 
Consolidated  $73,813   $67,739   $141,367   $149,983 
                     
Capital Expenditure:                    
Jinong  $41,081   $30,329   $41,823   $34,091 
Gufeng   
-
    (3,765)   
-
    216,105 
Yuxing   59,056    50,584    62,740    55,493 
Antaeus   
-
    
-
    1,502,600    
-
 
Consolidated  $100,137   $77,148   $1,607,164   $305,689 

 

18

 

   As of 
   December 31,   June 30, 
   2023   2023 
Identifiable assets:        
Jinong  $85,450,036   $87,862,836 
Gufeng   49,475,903    49,749,041 
Yuxing   38,237,419    38,223,482 
Antaeus   2,770,747    3,292,247 
Reconciling item (1)   9,927,731    7,387,637 
Reconciling item (2)   166,121    166,121 
Consolidated  $186,027,957   $186,681,364 

 

(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.

 

NOTE 15 – 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, 2022, Jinong signed an office lease with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provides for a two-year term effective as of July 1, 2022 with monthly rent of RMB28,000 (approximately $3,954).

 

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 $28,328 and $26,915 as rent expenses from these committed property leases for the six-month periods ended December 31, 2023 and 2022, respectively. The contingent rent expenses herein for the next five twelve-month periods ended December 31, are as follows:

 

Years ending December 31,    
2024  $56,655 
2025   56,655 
2026   56,655 
2027   56,655 
2028   56,655 

 

NOTE 16 – 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”).

 

19

 

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 VIE (Yuxing) was included in the accompanying consolidated financial statements as of December 31, 2023 and June 30, 2023:

 

   December 31,   June 30, 
   2023   2023 
ASSETS        
Current Assets        
Cash and cash equivalents  $230,479   $323,854 
Accounts receivable, net   661,761    283,221 
Inventories   23,999,498    24,288,379 
Other current assets   143,247    108,677 
Related party receivable   
-
    27,560 
           
Total Current Assets   25,034,985    25,031,691 
           
Plant, Property and Equipment, Net   5,821,031    5,887,278 
Other assets   10,025    9,784 
Intangible Assets, Net   7,371,378    7,294,729 
Total Assets  $38,237,419   $38,223,482 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current Liabilities          
Accounts payable  $12,821   $12,512 
Customer deposits   50,187    62,134 
Accrued expenses and other payables   290,365    282,968 
Amount due to related parties   40,566,777    39,346,051 
Total Current Liabilities   40,920,150    39,703,665 
Total Liabilities  $40,920,150    39,703,665 
           
Stockholders’ equity   (2,682,731)   (1,480,183)
         　 
Total Liabilities and Stockholders’ Equity  $38,237,419   $38,223,482 

 

   Three Months Ended
December 31,		 
   2023     2022 
Revenue  $(2,452,187)  $(2,846,739)
Expenses   (3,750,478)   (2,564,149)
Net income  $1,298,291   $(282,590)

 

   Six Months Ended
December 31,		 
   2023     2022 
Revenue  $4,794,904   $5,717,240 
Expenses   5,938,924    5,223,064 
Net income  $(1,144,020)  $494,176 

 

NOTE 17 – SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations after December 31, 2023 to the date these unaudited condensed consolidated financial statements were available to be issued and has determined that there were no significant subsequent events or transactions that would require recognition or disclosure in the unaudited condensed consolidated financial statements.

20

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the notes to those financial statements appearing elsewhere in this report. This discussion and analysis contain forward-looking statements that involve significant risks and uncertainties. As a result of many factors, such as the slow-down of the macro-economic environment in China and its impact on economic growth in general, the competition in the fertilizer industry and the impact of such competition on pricing, revenues and margins, the weather conditions in the areas where our customers are based, the cost of attracting and retaining highly skilled personnel, the prospects for future acquisitions, and the factors set forth elsewhere in this report, our actual results may differ materially from those anticipated in these forward-looking statements. With these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this report will in fact occur. You should not place undue reliance on the forward-looking statements contained in this report.

 

The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by U.S. federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. Further, the information about our intentions contained in this report is a statement of our intention as of the date of this report and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices, and our assumptions as of such date. We may change our intentions, at any time and without notice, based upon any changes in such factors, in our assumptions or otherwise.

 

Unless the context indicates otherwise, as used in the notes to the financial statements of the Company, 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 in the PRC (“VIE”) controlled by Jinong through 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”). Yuxing may also collectively be referred to as the “the VIE Company”, and (vi)Antaeus Tech, Inc. (“Antaeus”), a wholly-owned subsidiary of Green Nevada incorporated in the State of Delaware.

 

Unless the context otherwise requires, all references to (i) “PRC” and “China” are to the People’s Republic of China; (ii) “U.S. dollar,” “$” and “US$” are to United States dollars; and (iii) “RMB”, “Yuan” and Renminbi are to the currency of the PRC or China.

  

Overview

 

We are engaged in the research, development, production, and sale of various types of fertilizers, agricultural products and Bitcoin in the PRC and United State through our wholly owned Chinese subsidiaries, Jinong and Gufeng (including Gufeng’s subsidiary Tianjuyuan), our VIE, Yuxing and our wholly owned U.S. subsidiary Antaeus. Our primary business is fertilizer products, specifically humic-acid based compound fertilizer produced by Jinong and compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizer, highly concentrated water-soluble fertilizer, and mixed organic-inorganic compound fertilizer produced by Gufeng. In addition, through Yuxing, we develop and produce various agricultural products, such as top-grade fruits, vegetables, flowers and colored seedlings. Besides, we engaged in the mining of digital assets Bitcoin through Antaeus. For financial reporting purposes, our operations are organized into four business segments: fertilizer products (Jinong), fertilizer products (Gufeng), agricultural products (Yuxing), and Bitcoin (Antaeus).

  

The fertilizer business conducted by Jinong and Gufeng generated approximately 86.4% and 89.0% of our total revenues for the six months ended December 31, 2023 and 2022, respectively. Yuxing generated 11.9% and 11.0% of our revenues for the six months ended December 31, 2023 and 2022, respectively. Yuxing serves as a research and development base for our fertilizer products.  Antaeus generated 1.7% and 0% of our revenues for the six months ended December 31, 2023 and 2022, respectively.

 

Fertilizer Products

 

As of December 31, 2023, we had developed and produced a total of 410 different fertilizer products in use, of which 74 were developed and produced by Jinong, 336 by Gufeng.

 

21

 

Below is a table that shows the metric tons of fertilizer sold by Jinong and Gufeng and the revenue per ton for the periods indicated:

 

   Three Months Ended         
   December 31,   Change 2022 to 2023 
   2023   2022   Amount   % 
   (metric tons)         
Jinong   6,694    7,400    (706)   -9.5%
Gufeng   16,869    23,394    (6,525)   -27.9%
    23,563    30,794    (7,231)   -23.5%

 

   Three Months Ended
December 31,		 
   2023   2022 
   (revenue per tons) 
Jinong  $1,014   $1,361 
Gufeng   485    517 

 

   Six Months Ended         
   December 31,   Change 2022 to 2023 
   2023   2022   Amount   % 
   (metric tons)         
Jinong   14,748    16,785    (2,036)   -12.1%
Gufeng   37,678    47,565    (9,887)   -20.8%
    52,426    64,350    (11,923)   -18.5%

 

   Six Months Ended
December 31,		 
   2023   2022 
   (revenue per tons) 
Jinong  $1,090   $1,310 
Gufeng   493    514 

 

For the three months ended December 31, 2023, we sold approximately 23,563 tons of fertilizer products, as compared to 30,794 metric tons for the three months ended December 31, 2022. For the three months ended December 31, 2023, Jinong sold approximately 6,694 metric tons of fertilizer products, as compared to 7,400 metric tons for the three months ended December 31, 2022. For the three months ended December 31, 2023, Gufeng sold approximately 16,869 metric tons of fertilizer products, as compared to 23,394 metric tons for the three months ended December 31, 2022.

 

For the six months ended December 31, 2023, we sold approximately 52,426 metric tons of fertilizer products, as compared to 64,350 metric tons for the six months ended December 31, 2022. For the six months ended December 31, 2023, Jinong sold approximately 14,748 metric tons of fertilizer products, a decrease of 2,036 metric tons, or 12.1%, as compared to 16,785 metric tons for the six months ended December 31, 2022. For the six months ended December 31, 2023, Gufeng sold approximately 37,678 metric tons of fertilizer products, a decrease of 9,887 metric tons, or 20.8% as compared to 47,565 metric tons for the six months ended December 31, 2022.

  

22

 

Our sales of fertilizer products to customers in five provinces within China accounted for approximately 54.8% of our fertilizer revenue for the three months ended December 31, 2023. Specifically, the provinces and their respective percentage contributing to our fertilizer revenues were Hebei (22.2%), Heilongjiang (9.5%), Liaoning (8.1%), Inner Mongolia (8.0%), and Shaanxi (7.0%).

 

As of December 31, 2023, we had a total of 1,151 distributors covering 22 provinces, 4 autonomous regions and 4 central government-controlled municipalities in China. Jinong had 806 distributors in China. Jinong’s sales are not dependent on any single distributor or any group of distributors. Jinong’s top five distributors accounted for 27.3% of its fertilizer revenues for the three months ended December 31, 2023. Gufeng had 345 distributors, including some large state-owned enterprises. Gufeng’s top five distributors accounted for 76.0% of its revenues for the three months ended December 31, 2023.

 

Agricultural Products

 

Through Yuxing, we develop, produce and sell high-quality flowers, green vegetables and fruits to local marketplaces and various horticulture and planting companies. We also use certain of Yuxing’s greenhouse facilities to conduct research and development activities for our fertilizer products. The three PRC provinces and municipalities that accounted for 74.9% of our agricultural products revenue for the three months ended December 31, 2023 were Shaanxi (62.9%), Zhejiang (6.7%), and Beijing (5.3%).

 

Digital Assets Bitcoin

 

In March 2023, we established Antaeus Tech Inc. (“Antaeus”) and purchased mining machines to mine digital assets Bitcoin in the State of Texas. Through Antaeus, we expanded our activities in the mining of digital assets Bitcoin.

 

Recent Developments

 

New Products

 

During the three months ended December 31, 2023, Jinong launched one new fertilizer product but eliminated 72 unqualified distributors. During the same period, Gufeng neither launched any new fertilizer products nor added any new distributors

 

23

 

Results of Operations

 

Three Months ended December 31, 2023 Compared to the Three Months ended December 31, 2022.

 

   2023   2022   Change $   Change % 
Sales                
Jinong  $6,811,640   $9,842,749    (3,031,109)   -30.8%
Gufeng   8,209,157    11,849,719    (3,640,562)   -30.7%
Yuxing   2,452,187    2,846,739    (394,552)   -13.9%
Antaeus   327,130    -    327,130    - 
Net sales   17,800,114    24,539,207    (6,739,093)   -27.5%
                     
Cost of goods sold                    
                     
Jinong   4,982,284    7,152,122    (2,169,838)   -30.3%
Gufeng   7,198,290    10,477,612    (3,279,322)   -31.3%
Yuxing   2,042,241    2,395,056    (352,815)   -14.7%
Antaeus   248,812    -    248,812    - 
Cost of goods sold   14,471,627    20,024,790    (5,553,163)   -27.7%
Gross profit   3,328,487    4,514,417    (1,185,930)   -26.3%
Operating expenses                    
Selling expenses   1,770,860    1,658,654    112,206    6.8%
General and administrative expenses   6,947,810    6,535,402    412,409    6.3%
Total operating expenses   8,718,670    8,194,056    524,615    6.4%
Loss from operations   (5,390,183)   (3,679,639)   (1,710,545)   46.5%
Other income (expense)                    
Other income (expense)   30,926    82,071    (51,145)   -62.3%
Interest income   51,125    68,761    (17,636)   -25.6%
Interest expense   (73,813)   (67,739)   (6,074)   9.0%
Total other income (expense)   8,238    83,093    (74,856)   -90.1%
Loss before income taxes   (5,381,945)   (3,596,545)   (1,785,400)   49.6%
Provision for income taxes   (11,942)   -    (11,942)     
Net loss   (5,370,003)   (3,596,545)   (1,773,458)   49.3%
                     
Other comprehensive income (loss)                    
Foreign currency translation gain (loss)   4,705,400    6,086,889    (1,381,489)   -22.7%
Comprehensive (loss) income  $(664,603)  $2,490,344    (3,154,947)   -126.7%

 

24

 

Net Sales

 

Total net sales for the three months ended December 31, 2023 were $17,800,114, a decrease of $6,739,093 or 27.5%, from $24,539,207 for the three months ended December 31, 2022. This decrease was mainly due to the decrease for Jinong and Gufeng’s net sales.

 

For the three months ended December 31, 2023, Jinong’s net sales decreased $3,031,109, or 30.8%, to $6,811,640 from $9,842,749 for the three months ended December 31, 2022. This decrease was mainly due to Jinong’s lower sales volume in the last three months. Jinong sold approximately 6,694 metric tons of fertilizer products for the three months ended December 31, 2023, decreased 706 tons or 9.5%, as compared to 7,400 metric tons for the three months ended December 31, 2022.

 

For the three months ended December 31, 2023, Gufeng’s net sales were $8,209,157, a decrease of $3,640,562 or 30.7%, from $11,849,719 for the three months ended December 31, 2022. This decrease was mainly due to Gufeng’s lower sales volume in the last three months. Gufeng sold approximately 16,869 metric tons of fertilizer products for the three months ended December 31, 2023, decreased 6,525 tons or 27.9%, as compared to 23,394 metric tons for the three months ended December 31, 2022.

 

For the three months ended December 31, 2023, Yuxing’s net sales were $2,452,187, a decrease of $394,552 or 13.9%, from $2,846,739 for the three months ended December 31, 2022. The decrease was mainly due to the decrease in market demand during the three months ended December 31, 2023.

   

For the three months ended December 31, 2023, Antaeus’s net sales were $327,130.

 

Cost of Goods Sold

 

Total cost of goods sold for the three months ended December 31, 2023 was $14,471,627, a decrease of $5,553,163, or 27.7%, from $20,024,790 for the three months ended December 31, 2022. The decrease was mainly due lower sales.

 

Cost of goods sold by Jinong for the three months ended December 31, 2023 was $4,982,284, a decrease of $2,169,838, or 30.3%, from $7,152,122 for the three months ended December 31, 2022. The decrease in cost of goods was primarily due to lower sales in last three months ended December 31, 2023.

 

Cost of goods sold by Gufeng for the three months ended December 31, 2023 was $7,198,290, a decrease of $3,279,322, or 31.3%, from $10,477,612 for the three months ended December 31, 2022. This decrease was primarily due to the 30.7% decrease in net sales in last three months ended December 31, 2023.

 

For three months ended December 31, 2023, cost of goods sold by Yuxing was $2,042,241, a decrease of $352,815, or 14.7%, from $2,395,056 for the three months ended December 31, 2022. This decrease was primarily due to the 13.9% decrease in net sales in last three months ended December 31, 2023.

 

For the three months ended December 31, 2023, cost of goods sold by Antaeus was $248,812.

 

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Gross Profit

 

Total gross profit for the three months ended December 31, 2023 decreased by $1,185,930, or 26.3%, to $3,328,487, as compared to $4,514,417 for the three months ended December 31, 2022. Gross profit margin percentage was 18.7% and 18.4% for the three months Ended December 31, 2023 and 2022, respectively.

 

Gross profit generated by Jinong decreased by $861,271, or 32%, to $1,829,356 for the three months ended December 31, 2023 from $2,690,627 for the three months ended December 31, 2022. Gross profit margin percentage from Jinong’s sales was approximately 26.9% and 27.3% for the three months Ended December 31, 2023 and 2022, respectively.

 

For the three months ended December 31, 2023, gross profit generated by Gufeng was $1,010,867, a decrease of $361,240, or 26.3%, from $1,372,107 for the three months ended December 31, 2022. Gross profit margin percentage from Gufeng’s sales was approximately 12.3% and 11.6% for the three months ended December 31, 2023 and 2022, respectively.

 

For the three months ended December 31, 2023, gross profit generated by Yuxing was $409,946, a decrease of $41,737, or 9.2% from $451,683 for the three months ended December 31, 2022. The gross profit margin percentage was approximately 16.7% and 15.9% for the three months ended December 31, 2023 and 2022, respectively. The increase in gross profit margin percentage was mainly due to the decrease in product costs.

 

For the three months ended December 31, 2023, gross profit generated by Antaeus was $78,318. The gross profit margin was approximately 23.9% for the three months ended December 31, 2023.

 

Selling Expenses

 

Our selling expenses consisted primarily of salaries of sales personnel, advertising and promotion expenses, freight-out costs and related compensation. Selling expenses were $1,770,860, or 9.9%, of net sales for the three months ended December 31, 2023, as compared to $1,658,654, or 6.8%, of net sales for the three months ended December 31, 2022, an increase of $112,206, or 6.8%. The increase in selling expense was caused by the increase in marketing activities.

 

The selling expenses of Jinong for the three months ended December 31, 2023 were $ 1,688,422 or 24.8% of Jinong’s net sales, as compared to selling expenses of $ 1,585,197 or 16.1% of Jinong’s net sales for the three months ended December 31, 2022.

 

The selling expenses of Gufeng were $ 63,091 or 0.8% of Gufeng’s net sales for the three months ended December 31, 2023, as compared to $58,247 or 0.5% of Gufeng’s net sales for the three months ended December 31, 2022.

 

The selling expenses of Yuxing were $19,347 or 0.8% of Yuxing’s net sales for the three months ended December 31, 2023, as compared to $15,210 or 0.5% of Yuxing’s net sales for the three months ended December 31, 2022.

 

There was no selling expenses for Antaeus for the three months ended December 31, 2023.

 

General and Administrative Expenses

 

General and administrative expenses consisted primarily of related salaries, rental expenses, business development, depreciation and travel expenses incurred by our general and administrative departments and legal and professional expenses including expenses incurred and accrued for certain litigation. General and administrative expenses were $6,947,810, or 39% of net sales for the three months ended December 31, 2023, as compared to $6,535,402, or 26.6% of net sales for the three months ended December 31, 2022, an increase of $412,409, or 6.3%. The increase in general and administrative expenses was mainly due to higher general and administrative expenses for Yuxing and Antaeus.

 

Jinong’s general and administrative expenses were $501,357 for the three months ended December 31, 2023, decreased $2,202,338 or 81.5%, as compared to $2,703,695 for the three months ended December 31, 2022.

 

Gufeng’s general and administrative expenses were $2,821,366 for the three months ended December 31, 2023, decreased $39,855, or 1.4%, as compared to $2,861,221 for the three months ended December 31, 2022.

 

Yuxing’s general and administrative expenses were $1,689,643 for the three months ended December 31, 2023, increased $1,453,423, or 615.3%, as compared to $236,220 for the three months ended December 31, 2022. The increase of Yuxing’s general and administrative expenses was mainly due to the inventory impairment with amount of $1.6 million caused by the bad weather in November 2023.

 

Antaeus’s general and administrative expenses were $161,839 for the three months ended December 31, 2023.

 

Total Other Income (Expenses)

 

Total other income (expenses) consisted of income from subsidies received from the PRC government, interest income, interest expenses and bank charges. Total other expense for the three months ended December 31, 2023 was $8,238, as compared to other income of $83,093 for the three months ended December 31, 2022. The difference was mainly due to the decrease in other income with amount of $51,145, or 62.3% from $82,071 for the three months ended December 31, 2022 to $30,926 for the three months ended December 31, 2023. There was $88,491 in subsidy income for the three months ended December 31, 2022, compared to $796 subsidy income for the three months ended December 31, 2023.

 

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Income Taxes

 

Jinong is subject to a preferred tax rate of 15% because of its business being classified as a High-Tech project under the PRC Enterprise Income Tax Law (“EIT”) that became effective on January 1, 2008. Jinong incurred no income tax expenses for the three months ended December 31, 2023 and 2022.

 

Gufeng is subject to a tax rate of 25%, incurred no income tax expenses for the three months ended December 31, 2023 and 2022.

 

Yuxing incurred no income tax for the three months ended December 31, 2023 and 2022 because of being exempted from paying income tax due to its products fall into the tax exemption list set out in the EIT.

 

Antaeus is subject to a tax rate of 21% and had income tax expense of $(11,942) for the three months ended December 31, 2023.

 

Net loss

 

Net loss for the three months ended December 31, 2023 was $(5,370,003), an increase in loss of $1,773,458, or 49.3%, compared to net loss of $ (3,596,545) for the three months ended December 31, 2022. Net loss as a percentage of total net sales was approximately -30.2% and -14.7% for the three months ended December 31, 2023 and 2022, respectively.

 

Six months ended December 31, 2023 Compared to the six months ended December 31, 2022.

 

   2023   2022   Change $   Change % 
Sales                
Jinong  $16,100,398   $21,990,751    (5,890,353)   -26.8%
Gufeng   18,630,431    24,428,541    (5,798,110)   -23.7%
Yuxing   4,794,903    5,717,240    (922,337)   -16.1%
Antaeus   672,244    -    672,244    - 
Net sales   40,197,976    52,136,532    (11,938,556)   -22.9%
Cost of goods sold                    
Jinong   11,588,897    15,912,292    (4,323,395)   -27.2%
Gufeng   16,193,611    21,732,489    (5,538,878)   -25.5%
Yuxing   3,919,768    4,792,525    (872,757)   -18.2%
Antaeus   517,359    -    517,359    - 
Cost of goods sold   32,219,635    42,437,306    (10,217,671)   -24.1%
Gross profit   7,978,341    9,699,226    (1,720,885)   -17.7%
Operating expenses                    
Selling expenses   3,650,014    4,096,008    (445,994)   -10.9%
General and administrative expenses   11,504,417    9,820,517    1,683,900    17.1%
Total operating expenses   15,154,431    13,916,525    1,237,906    8.9%
Loss from operations   (7,176,090)   (4,217,299)   (2,958,791)   70.2%
Other income (expense)                    
Other income (expense)   40,709    109,861    (69,152)   -62.9%
Interest income   106,197    132,761    (26,564)   -20.0%
Interest expense   (141,367)   (149,983)   8,616    -5.7%
Total other income (expense)   5,539    92,639    (87,100)   -94.0%
Loss before income taxes   (7,170,551)   (4,124,660)   (3,045,891)   73.8%
Provision for income taxes   (16,355)   -    (16,355)   -%
Net Loss   (7,154,196)   (4,124,660)   (3,029,536)   73.4%
                     
Other comprehensive income (loss)                    
Foreign currency translation gain (loss)   3,869,023    (4,833,269)   8,702,292    -180.0%
Comprehensive loss  $(3,285,173)  $(8,957,929)   5,672,756    -63.3%

 

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Net Sales

 

Total net sales for the six months ended December 31, 2023 were $40,197,976 a decrease of $11,938,556 or 22.9%, from $52,136,532 for the six months ended December 31, 2022. This decrease was primarily due to decrease in Jinong and Gufeng’ net sales.

 

For the six months ended December 31, 2023, Jinong’s net sales decreased $5,890,353, or 26.8%, to $16,100,398

from $21,990,751 for the six months ended December 31, 2022. This decrease was mainly due to Jinong’s lower sales volume in the last six months. Jinong sold 14,748 ton of products for the six months ended December 31, 2023, comparing to 16,785 for the six months ended December 31, 2022.

 

For the six months ended December 31, 2023, Gufeng’s net sales were $18,630,431, a decrease of $5,798,110, or 23.7%, from $24,428,541 for the six months ended December 31, 2022. This decrease was mainly due to the decrease in Gufeng’s sales volume in the last six months. Gufeng sold 37,678 ton of products for the six months ended December 31, 2023, comparing to 47,565 for the six months ended December 31, 2022.

 

For the six months ended December 31, 2023, Yuxing’s net sales were $4,794,903, a decrease of $922,337 or 16.1%, from $5,717,240 for the six months ended December 31, 2022.

 

For the six months ended December 31, 2023, Antaeus’s net sales were $672,244.

  

Cost of Goods Sold

 

Total cost of goods sold for the six months ended December 31, 2023 was $32,219,635, a decrease of $10,217,671, or 24.1%, from $42,437,306 for the six months ended December 31, 2022. The decrease was mainly due to the decrease in Jinong’s cost of goods sold which decreased 27.2%.

 

Cost of goods sold by Jinong for the six months ended December 31, 2023 was $11,588,897, a decrease of $4,323,395, or 27.2%, from $15,912,292 for the six months ended December 31, 2022. The decrease in cost of goods was primarily due to the decrease in net sales during the last six months.

 

Cost of goods sold by Gufeng for the six months ended December 31, 2023 was $16,193,611, a decrease of $5,538,878, or 25.5%, from $21,732,489 for the six months ended December 31, 2022. This decrease was primarily due to the 23.7% decrease in net sales during the last six months. 

 

For six months ended December 31, 2023, cost of goods sold by Yuxing was $3,919,768, a decrease of $872,757, or 18.2%, from $4,792,525 for the six months ended December 31, 2022. This decrease was mainly due to the 16.1% decrease in Yuxing’s net sales during the last six months. 

 

Cost of goods sold by Antaeus for the six months ended December 31, 2023 was $517,359.

 

Gross Profit

 

Total gross profit for the six months ended December 31, 2023 decreased by $1,720,885, or 17.7%, to $7,978,341, as compared to $9,699,226 for the six months ended December 31, 2022. Gross profit margin was 19.8% and 18.6% for the six months ended December 31, 2023 and 2022, respectively.

 

Gross profit generated by Jinong decreased by $1,566,959 or 25.8%, to $4,511,500 for the six months ended December 31, 2023 from $6,078,459 for the six months ended December 31, 2022. Gross profit margin from Jinong’s sales was approximately 28.0% and 27.6% for the six months ended December 31, 2023 and 2022, respectively.

 

For the six months ended December 31, 2023, gross profit generated by Gufeng was $2,436,820, a decrease of $259,232, or 9.6%, from $2,696,052 for the six months ended December 31, 2022. Gross profit margin from Gufeng’s sales was approximately 13.1% and 11.0% for the six months ended December 31, 2023 and 2022, respectively. The increase in gross profit margin was mainly due to lower product costs.

 

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For the six months ended December 31, 2023, gross profit generated by Yuxing was $875,135, a decrease of $49,580, or 5.4% from $924,715 for the six months ended December 31, 2022. The gross profit margin was approximately 18.3% and 16.2% for the six months ended December 31, 2023 and 2022, respectively. The increase in gross profit percentage was mainly due to the decrease in product costs.

 

For the six months ended December 31, 2023, gross profit generated by Antaeus was $154,886.

  

Selling Expenses

 

Our selling expenses consisted primarily of salaries of sales personnel, advertising and promotion expenses, freight-out costs and related compensation. Selling expenses were $3,650,014, or 9.1%, of net sales for the six months ended December 31, 2023, as compared to $4,096,008, or 7.9% of net sales for the six months ended December 31, 2022, a decrease of $445,994 or 10.9%.

 

The selling expenses of Jinong for the six months ended December 31, 2023 were $3,483,862 or 21.6% of Jinong’s net sales, as compared to selling expenses of $3,937,018 or 17.9% of Jinong’s net sales for the six months ended December 31, 2022.

 

The selling expenses of Gufeng were $126,968 or 0.7% of Gufeng’s net sales for the six months ended December 31, 2023, as compared to $124,734 or 0.5% of Gufeng’s net sales for the six months ended December 31, 2022.

 

The selling expenses of Yuxing were $39,184 or 0.8% of Yuxing’s net sales for the six months ended December 31, 2023, as compared to $34,256 or 0.6% of Yuxing’s net sales for the six months ended December 31, 2022.

 

The selling expenses of Antaeus were $0 of Antaeus’s net sales for the six months ended December 31, 2023.

 

General and Administrative Expenses

 

General and administrative expenses consisted primarily of related salaries, rental expenses, business development, depreciation and travel expenses incurred by our general and administrative departments and legal and professional expenses including expenses incurred and accrued for certain litigation. General and administrative expenses were $11,504,417, or 28.6% of net sales for the six months ended December 31, 2023, as compared to $9,820,517, or 18.8% of net sales for the six months ended December 31, 2022, an increase of $1,683,900, or 17.1%.

 

Jinong’s general and administrative expenses were $1,533,184 for the six months ended December 31, 2023, decreased $1,286,878 or 45.6%, as compared to $2,820,062 for the six months ended December 31, 2022.

 

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Gufeng’s general and administrative expenses were $5,403,324 for the six months ended December 31, 2023, increased $620,915, or 13%, as compared to $4,782,409 for the six months ended December 31, 2022.

 

Yuxing’s general and administrative expenses were $1,980,314 for the six months ended December 31, 2023, increased $1,474,101, or 291.2%, as compared to $506,213 for the six months ended December 31, 2022. The increase of Yuxing’s general and administrative expenses was mainly due to the inventory impairment with amount of $1.6 million caused by the bad weather in November 2023.

 

Antaeus’s general and administrative expenses were $268,903 for the three months ended December 31, 2023.

 

Total Other Income (Expenses)

 

Total other income (expenses) consisted of income from subsidies received from the PRC government, interest income, interest expenses and bank charges. Total other income for the six months ended December 31, 2023 was $5,539, as compared to $92,639 for the six months ended December 31, 2022, a decrease in income of $87,100 or 94%. The difference was mainly due to the decrease in other income with amount of $69,152, or 62.9% from $109,861 for the six months ended December 31, 2022 to $40,709 for the six months ended December 31, 2023. There was $110,389 in subsidy income for the six months ended December 31, 2022, compared to $796 subsidy income for the six months ended December 31, 2023.

 

Income Taxes

 

Jinong is subject to a preferred tax rate of 15% as a result of its business being classified as a High-Tech project under the PRC Enterprise Income Tax Law (“EIT”) that became effective on January 1, 2008. Jinong didn’t incurr income tax expenses for the six months ended December 31, 2023 and 2022.

 

Gufeng is subject to a tax rate of 25%, has no income tax expenses for the six months ended December 31, 2023 and 2022.

 

Yuxing has no income tax for the six months ended December 31, 2023 and 2022 as a result of being exempted from paying income tax due to its products fall into the tax exemption list set out in the EIT.

 

Antaeus is subject to a tax rate of 21% and had income tax expense of $(16,355) for the six months ended December 31, 2023.

 

Net loss

 

Net loss for the six months ended December 31, 2023 was $(7,154,196), an increase of loss with amount of $3,029,536 or 73.4%, compared to $(4,124,660) for the six months ended December 31, 2022. The increase was mainly due to lower net sales and higher general and administrative expenses. Net loss as a percentage of total net sales was approximately -17.8% and -7.9% for the six months ended December 31, 2023 and 2022, respectively.

 

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Discussion of Segment Profitability Measures

 

As of December 31, 2023, we were engaged in the following businesses: the production and sale of fertilizers through Jinong and Gufeng, the production and sale of high-quality agricultural products by Yuxing and the production and sale of Bitcoin by Antaeus. For financial reporting purpose, our operations were organized into four main business segments based on locations and products: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and Antaeus (Bitcoin). Each of the segments has its own annual budget about development, production and sales.

  

Each of the four operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) makes decisions with respect to resources allocation and performance assessment upon receiving financial information, including revenue, gross margin, operating income and net income produced from the various general ledger systems; however, net income by segment is the principal benchmark to measure profit or loss adopted by the CODM.

 

For Jinong, the net loss decreased by $140,042, or 24.6%, to $(430,386) for the six months ended December 31, 2023, from $(570,428) for the six months ended December 31, 2022. The decrease in net loss was principally due to lower general and administrative expenses.

 

For Gufeng, the net loss increased by $842,960 or 36.1%, to $(3,179,583) for the six months ended December 31, 2023, from $(2,336,623) for the six months ended December 31, 2022. The increase in net loss was principally due to the lower net sales and the increase in general and administrative expenses.

 

For Yuxing, the net income decreased $1,638,196 or 331.5%, to $(1,144,020) for the six months ended December 31, 2023 from $494,176 for the six months ended December 31, 2022. The decrease was mainly due to lower net sales and the higher general and administrative expenses.

   

For Antaeus, the net loss was $(61,526) for the six months ended December 31, 2023.

 

Liquidity and Capital Resources

 

Our principal sources of liquidity include cash from operations, borrowings from local commercial banks and net proceeds of offerings of our securities.

 

As of December 31, 2023, cash and cash equivalents were $70,402,736, a decrease of $739,452, or 1.0%, from $71,142,188 as of June 30, 2023.

 

We intend to use the net proceeds from our securities offerings, as well as other working capital if required, to acquire new businesses, upgrade production lines and complete Yuxing’s new greenhouse facilities for agriculture products located on 88 acres of land in Hu County, 18 kilometers southeast of Xi’an city. We believe that we have sufficient cash on hand and positive projected cash flow from operations to support our business growth for the next twelve months to the extent we do not have further significant acquisitions or expansions. However, if events or circumstances occur and we do not meet our operating plan as expected, we may be required to seek additional capital and/or to reduce certain discretionary spending, which could have a material adverse effect on our ability to achieve our business objectives. Notwithstanding the foregoing, we may seek additional financing as necessary for expansion purposes and when we believe market conditions are most advantageous, which may include additional debt and/or equity financings. There can be no assurance that any additional financing will be available on acceptable terms, if at all. Any equity financing may result in dilution to existing stockholders and any debt financing may include restrictive covenants.

 

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The following table sets forth a summary of our cash flows for the periods indicated:

 

   Six Months Ended 
   December 31, 
   2023   2022 
Net cash used in operating activities  $(2,066,674)  $(2,803,847)
Net cash (used in) provided by investing activities   (1,607,163)   589,722 
Net cash provided by financing activities   1,382,404    19,872,445 
Effect of exchange rate change on cash and cash equivalents   1,551,981    (1,309,475)
Net (decrease) increase in cash and cash equivalents   (739,452)   16,348,845 
Cash and cash equivalents, beginning balance   71,142,188    57,770,303 
Cash and cash equivalents, ending balance  $70,402,736   $74,119,148 

 

Operating Activities

 

Net cash used in operating activities was $(2,066,674) for the six months ended December 31, 2023, a decrease of $737,173, or 26.3%, from cash used in operating activities of $(2,803,847) for the six months ended December 31, 2022. The decrease in cash used in operating activities was mainly due to an increase in accrued expenses and other payables during the six months ended December 31, 2023 as compared to the same period in 2022.

  

Investing Activities

 

Net cash used in investing activities for the six months ended December 31, 2023 was $(1,607,163), compared to cash provided by investing activities of $589,722 for the six months ended December 31, 2022. The difference of $2,196,885 was mainly due to purchase of plant, property, and equipment with amount of $1,607,163 during the six months ended December 31, 2023, comparing with $305,689 during the six months ended December 31, 2022.

 

Financing Activities

 

Net cash used in financing activities for the six months ended December 31, 2023 was $1,382,404, a decrease of $18,490,041, or 93.0% compared to $19,872,445 net cash provided by financing activities for the six months ended December 31, 2022. The decrease was mainly due to the repayment of loans with amount of $1,579,303 during the six months ended December 31, 2023.

 

As of December 31, 2023, and June 30, 2023, our loans payable was as follows:

 

   December 31,   June 30, 
   2023   2023 
Short term loans payable:  $7,653,040   $5,346,640 
Long term loans payable:   -    937,040 
Total  $7,653,040   $6,283,680 

 

Accounts Receivable

 

We had accounts receivable of $20,988,837 as of December 31, 2023, as compared to $16,455,734 as of June 30, 2023, an increase of $4,533,103, or 27.5%.

 

Allowance for doubtful accounts in accounts receivable as of December 31, 2023 was $50,107,077, a decrease of $4,601,409, or 8.4%, from $54,708,486 as of June 30, 2023. And the allowance for doubtful accounts as a percentage of accounts receivable was 70.5% as of December 31, 2023 and 76.9% as of June 30, 2023.

 

Deferred assets

 

We had deferred tax assets of $114,175 as of December 31, 2023, and $97,820 of June 30, 2023. During the six months, we assisted the distributors in certain marketing efforts and developing standard stores to expand our competitive advantage and market shares. Based on the distributor agreements, the amount owed by the distributors in certain marketing efforts and store development will be expensed over three years if the distributors are actively selling our products. If a distributor defaults, breaches, or terminates the agreement with us earlier than the contractual terms, the unamortized portion of the amount owed by the distributor is payable to us immediately.

 

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Inventories

 

We had inventories of $39,554,487 as of December 31, 2023, as compared to $46,455,131 as of June 30, 2023, a decrease of $6,900,644, or 14.9%. The decrease was primarily due to Gufeng’s inventory. As of December 31, 2023, Gufeng’s inventory was $14,948,439, compared to $21,691,450 as of June 30, 2023, a decrease of $6,743,011, or 31.1%. The company confirmed the loss of $4.0 million and $1.7 million of inventories for the six months ended December 31, 2023 and 2022, respectively.

 

Advances to Suppliers

 

We had advances to suppliers of $16,966,359 as of December 31, 2023 as compared to $14,332,715 as of June 30, 2023, representing an increase of $2,633,644, or 18.4%. Our inventory level may fluctuate from time to time, depending how quickly the raw material is consumed and replenished during the production process, and how soon the finished goods are sold. The replenishment of raw material relies on management’s estimate of numerous factors, including but not limited to, the raw materials future price, and spot price along with its volatility, as well as the seasonal demand and future price of finished fertilizer products. Such estimate may not be accurate, and the purchase decision of raw materials based on the estimate can cause excessive inventories in times of slow sales and insufficient inventories in peak times.

 

Accounts Payable

 

We had accounts payable of $1,583,655 as of December 31, 2023 as compared to $2,100,449 as of June 30, 2023, representing a decrease of $516,794, or 24.6%.

 

Customer Deposits (Unearned Revenue)

 

We had customer deposits of $5,407,480 as of December 31, 2023 as compared to $5,489,781 as of June 30, 2023, representing a decrease of $82,301, or 1.5%. The increase was mainly attributable to Jinong’ $1,243,289 unearned revenue as of December 31, 2023, compared to $1,152,204 unearned revenue as of June 30, 2023, increased $91,085, or 7.9%, caused by the advance deposits made by clients. This increase was due to seasonal fluctuation and we expect to deliver products to our customers during the next three months at which time we will recognize the revenue.

 

Off-Balance Sheet Arrangements

 

We do not have any off-balance sheet arrangements.

 

Critical Accounting Policies and Estimates

 

Management’s discussion and analysis of its financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles. Our financial statements reflect the selection and application of accounting policies which require management to make significant estimates and judgments. See Note 2 to our consolidated financial statements, “Basis of Presentation and Summary of Significant Accounting Policies.” We believe that the following paragraphs reflect the most critical accounting policies that currently affect our financial condition and results of operations:

 

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.

 

33

 

Revenue recognition

 

Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, we have no other significant obligations and collectability is reasonably assured. Payments received before all the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue.

 

Our revenue consists of invoiced value of goods, net of a value-added tax (VAT). No product return or sales discount allowance is made as products delivered and accepted by customers are normally not returnable and sales discounts are normally not granted after products are delivered.

 

Cash and cash equivalents

 

For statement of cash flows purposes, we consider all cash on hand and in banks, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.

 

Accounts receivable

 

Our policy is to maintain reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Any accounts receivable of Jinong and Gufeng that are outstanding for more than 180 days will be accounted as allowance for bad debts, and any accounts receivable of Yuxing that are outstanding for more than 90 days will be accounted as allowance for bad debts.

 

Deferred assets

 

Deferred assets represent amounts the Company advanced to the distributors in their marketing and stores development to expand our competitive advantage and market shares. Based on the distributor agreements, the amount owed by the distributors in certain marketing efforts and store development will be expensed over three years if the distributors are actively selling our products. If a distributor defaults, breaches, or terminates the agreement with us earlier than the realization of the contractual terms, the unamortized portion of the amount owed by the distributor is to be refunded to us immediately. The deferred assets had been fully amortized as of December 31, 2023.

 

Segment reporting

 

FASB ASC 280 requires use of 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 December 31, 2023, we were organized into four main business units: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and Antaeus(Bitcoin). For financial reporting purpose, our operations were organized into four main business segments based on locations and products: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and Antaeus(Bitcoin). Each of the segments has its own annual budget regarding development, production, and sales.

 

34

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Disclosures About Market Risk

 

We may be exposed to changes in financial market conditions in the normal course of business. Market risk generally represents the risk that losses may occur because of movements in interest rates and equity prices. We currently do not, in the normal course of business, use financial instruments that are subject to changes in financial market conditions.

 

Currency Fluctuations and Foreign Currency Risk

 

Substantially all our revenues and expenses are denominated in RMB. However, we use the U.S. dollar for financial reporting purposes. Conversion of RMB into foreign currencies is regulated by the People’s Bank of China through a unified floating exchange rate system. Although the PRC government has stated its intention to support the value of RMB, there can be no assurance that such exchange rate will not again become volatile or that RMB will not devalue significantly against U.S. dollar. Exchange rate fluctuations may adversely affect the value, in U.S. dollar terms, of our net assets and income derived from our operations in the PRC.

 

Our reporting currency is the U.S. dollar. Except for U.S. holding companies, all our consolidated revenues, consolidated costs and expenses, and our assets are denominated in RMB. As a result, we are exposed to foreign exchange risk as our revenues and results of operations may be affected by fluctuations in the exchange rate between the U.S. dollars and RMB. If RMB depreciates against the U.S. dollar, the value of our RMB revenues, earnings and assets as expressed in our U.S. dollar financial statements will decline. Assets and liabilities are translated at the exchange rates as of the balance sheet dates, revenues and expenses are translated at the average exchange rates, and shareholders’ equity is translated at historical exchange rates. Any resulting translation adjustments are not included in determining net income (loss) but are included in determining other comprehensive income, a component of shareholders’ equity. As of December 31, 2023, our accumulated other comprehensive loss was $23 million. We have not entered any hedging transactions to reduce our exposure to foreign exchange risk. The value of the RMB against the U.S. dollar and other currencies is affected by, among other things, changes in PRC’s political and economic conditions. Between July 1, 2023 and December 31, 2023, China’s currency increased by a cumulative 2.5% against the U.S. dollar, making Chinese exports more expensive and imports into China cheaper by that percentage. The effect on trade can be substantial. Moreover, it is possible that in the future, the PRC authorities may lift restrictions on fluctuations in the RMB exchange rate and lessen intervention in the foreign exchange market.

 

Interest Rate Risk

 

We deposit surplus funds with Chinese banks earning daily interest. We do not invest in any instruments for trading purposes. All our outstanding debt instruments carry fixed rates of interest. The amount of short-term debt outstanding as of December 31, 2023 and June 30, 2023 was $7.7 million and $5.3 million, respectively. We are exposed to interest rate risk primarily with respect to our short-term bank loans. Although the interest rates, which are based on the banks’ prime rates with respect to our short-term loans, are fixed for the terms of the loans, the terms are typically three to twelve months for short-term bank loans and interest rates are subject to change upon renewal. There was no material change in interest rates for short-term bank loans renewed during the three months ended December 31, 2023. The original loan term on average is one year, and the remaining average life of the short term-loans is approximately six months.

 

Management monitors the banks’ prime rates in conjunction with our cash requirements to determine the appropriate level of debt balances relative to other sources of funds. We have not entered any hedging transactions to reduce our exposure to interest rate risk.

 

Credit Risk

 

We have experienced higher credit risk than usual since 2020. With the impact of COVID-19 pandemic, the overdue outstanding accounts receivable increased significantly compared with the years prior to the pandemic. Our accounts receivables are typically unsecured and are mainly derived from revenues earned from customers in the PRC. Most of our customers are individuals and small and medium-sized enterprises (“SMEs”), which may not have strong cash flows or be well capitalized. They may be vulnerable to an epidemic outbreak and slowing macroeconomic conditions. Many of the SMEs that we work with cannot weather COVID-19 and the resulting economic impact, or they cannot resume business as usual after a prolonged outbreak. Numerous distributors encountered significant difficulties and/or hardships in their businesses amid the pandemic. Even through our receivables are monitored regularly by our credit managers, the bad debts expenses are higher in recent 3 years comparing with the years before 2020.

 

35

 

Inflation Risk

 

Inflationary factors such as increases in the cost of our products and overhead costs may adversely affect our operating results. Notwithstanding the measures taken by the PRC government to control inflation, China still experienced an increase in inflation and our operating cost became higher than anticipated.  The high rate of inflation had an adverse effect on our ability to maintain current levels of gross margin and selling, general and administrative expenses as a percentage of net revenues if the selling prices of our products do not increase with these increased costs.

 

Risk of epidemics, pandemics, or other outbreaks

 

The outbreak of COVID-19 has adversely affected, and in the future it or other epidemics, pandemics or outbreaks may adversely affect, our operations. This is or may be due to closures or restrictions requested or mandated by governmental authorities, disruption to supply chains and workforce, reduction of demand for our products and services, and credit losses when customers and other counterparties fail to satisfy their obligations to us. We share most of these risks with all businesses.

 

In addition, the COVID-19 outbreak has significantly increased economic and demand uncertainty. The current outbreak and continued spread of COVID-19 may cause a global recession, which would have a further adverse impact on our financial condition and operations, and this impact could exist for an extensive period.

 

The Company is continuing to monitor the situation and take appropriate actions in accordance with the recommendations and requirements of relevant authorities. The full extent of the impact of the COVID-19 pandemic on the Company’s operational and financial performance is currently uncertain and will depend on many factors outside the Company’s control, including, without limitation, the timing, extent, trajectory and duration of the pandemic, the development and availability of effective treatments and vaccines, the imposition of protective public safety measures, and the impact of the pandemic on the global economy and demand for consumer products.

 

Additional future impacts on the Company may include, but are not limited to, material adverse effects on demand for the Company’s products and services; the Company’s supply chain and sales and distribution channels; the Company’s ability to execute its strategic plans; and the Company’s profitability and cost structure. To the extent the COVID-19 pandemic adversely affects the Company’s business, results of operations, financial condition and stock price, it may also have the effect of heightening many of the other risks described above.

 

Item 4. Controls and Procedures

 

(a) Evaluation of disclosure controls and procedures

  

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”), at the conclusion of the period ended December 31, 2022 we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of the end of the period covered by this Report, our disclosure controls and procedures were effective and adequately designed to ensure that the information required to be disclosed by us in the reports we submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms and that such information was accumulated and communicated to our Chief Executive Officer and Chief Financial Officer, in a manner that allowed for timely decisions regarding required disclosure.

 

(b) Changes in internal controls

 

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during the quarter ended December 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

36

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

 

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 December 31, 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.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

There were no unregistered sales of the Company’s equity securities during the three months ended December 31, 2022, that were not otherwise disclosed in a Current Report on Form 8-K.

 

Item 3. Defaults Upon Senior Securities

 

There has been no default in the payment of principal, interest, sinking or purchase fund installment, or any other material default, with respect to any indebtedness of the Company.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

There is no other information required to be disclosed under this item which was not previously disclosed.

 

Item 6. Exhibits

 

The exhibits required by this item are set forth in the Exhibit Index attached hereto.

 

37

 

SIGNATURES

 

Pursuant to the requirements 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: February 9, 2024 By: /s/ Zhuoyu Li
  Name:   Zhuoyu Li
  Title: Chief Executive Officer
    (principal executive officer)
     
Date: February 9, 2024 By: /s/ Zhibiao Pan
  Name:  Zhibiao Pan
  Title: Co-Chief Executive Officer
    (principal executive officer)
     
Date: February 9, 2024 By: /s/ Yongcheng Yang
  Name:  Yongcheng Yang
  Title: Chief Financial Officer
    (principal financial officer and
principal accounting officer)

 

38

 

EXHIBIT INDEX

 

No.   Description
21.1*   List of Subsidiaries of the Company
31.1*   Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*   Certification of Co-Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.3*   Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1+   Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2+   Certification of Co-Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.3+   Certification of Chief Financial Officer 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 the SEC Release 33-8238, deemed being furnished and not filed.

 

39

 

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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-Q 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: February 9, 2024

 

/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-Q 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: February 9, 2024

 

/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-Q 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: February 9, 2024

 

/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 Quarterly Report of the Company on Form 10-Q for the period ended December 31, 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: February 9, 2024

 

/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 Quarterly Report of the Company on Form 10-Q for the period ended December 31, 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: February 9, 2024

 

/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 Quarterly Report of the Company on Form 10-Q for the period ended December 31, 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: February 9, 2024

 

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

 

 

v3.24.0.1
Document And Entity Information - shares
 6 Months Ended
Dec. 31, 2023
Feb. 09, 2024
Document Information Line Items    
Entity Registrant Name CHINA GREEN AGRICULTURE, INC.  
Trading Symbol CGA  
Document Type 10-Q  
Current Fiscal Year End Date --06-30  
Entity Common Stock, Shares Outstanding   13,820,021
Amendment Flag false  
Entity Central Index Key 0000857949  
Entity Current Reporting Status Yes  
Entity Filer Category Non-accelerated Filer  
Document Period End Date Dec. 31, 2023  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Document Quarterly 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 3rd 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  
Entity Interactive Data Current Yes  
Title of 12(b) Security Common Stock  
Security Exchange Name NYSE  
v3.24.0.1
Unaudited Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
Dec. 31, 2023
Jun. 30, 2023
Current Assets    
Cash and cash equivalents $ 70,402,736 $ 71,142,188
Digital assets 44,399 210,342
Accounts receivable, net 20,988,837 16,455,734
Inventories, net 39,554,487 46,455,131
Prepaid expenses and other current assets 2,457,395 2,603,489
Advances to suppliers, net 16,966,359 14,332,715
Total Current Assets 150,414,213 151,227,159
Plant, property and equipment, net 17,436,638 16,690,245
Other assets 10,025 9,784
Other non-current assets 4,268,057 5,092,721
Intangible assets, net 13,784,849 13,563,635
Deferred tax asset 114,175 97,820
Total Assets 186,027,957 186,681,364
Current Liabilities    
Accounts payable 1,583,655 2,100,449
Customer deposits 5,407,480 5,489,781
Accrued expenses and other payables 16,787,542 14,929,427
Taxes payable 26,859,846 27,070,961
Short term loans 7,653,040 5,346,640
Total Current Liabilities 63,945,272 60,376,467
Long-term Liabilities
Long-term loans 937,040
Total Liabilities 63,945,272 61,313,507
Commitments and Contingencies
Preferred Stock, $.001 par value, 20,000,000 shares authorized, 0 shares issued and outstanding as of December 31, 2023 and June 30, 2023, respectively
Common stock, $.001 par value, 115,197,165 shares authorized, 13,380,914 and 13,380,914 shares issued and outstanding as of December 31, 2023 and June 30, 2023, respectively 13,381 13,381
Additional paid-in capital 242,090,576 242,090,576
Statutory reserve 26,571,173 26,728,079
Retained earnings (123,510,975) (116,513,686)
Accumulated other comprehensive loss (23,081,470) (26,950,493)
Total Stockholders’ Equity 122,082,685 125,367,857
Total Liabilities and Stockholders’ Equity 186,027,957 186,681,364
Related Party    
Current Assets    
Amount due from related parties 27,560
Current Liabilities    
Amount due to related parties $ 5,653,709 $ 5,439,209
v3.24.0.1
Unaudited Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares
Dec. 31, 2023
Jun. 30, 2023
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 13,380,914
Common stock, shares outstanding 13,380,914 13,380,914
v3.24.0.1
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Sales        
Net sales $ 17,800,114 $ 24,539,207 $ 40,197,976 $ 52,136,532
Cost of goods sold        
Cost of goods sold 14,471,627 20,024,790 32,219,635 42,437,306
Gross profit 3,328,487 4,514,417 7,978,341 9,699,226
Operating expenses        
Selling expenses 1,770,860 1,658,654 3,650,014 4,096,008
General and administrative expenses 6,947,810 6,535,402 11,504,417 9,820,517
Total operating expenses 8,718,670 8,194,056 15,154,431 13,916,525
Loss from operations (5,390,183) (3,679,639) (7,176,090) (4,217,299)
Other income (expense)        
Other (expense) 30,926 82,071 40,709 109,861
Interest income 51,125 68,761 106,197 132,761
Interest expense (73,813) (67,739) (141,367) (149,983)
Total other (expense) 8,238 83,093 5,539 92,639
Loss before income taxes (5,381,945) (3,596,545) (7,170,551) (4,124,660)
Provision for income taxes (11,942) (16,355)
Net loss (5,370,003) (3,596,545) (7,154,196) (4,124,660)
Other comprehensive income (loss)        
Foreign currency translation gain (loss) 4,705,400 6,086,889 3,869,023 (4,833,269)
Comprehensive (loss) income $ (664,603) $ 2,490,344 $ (3,285,173) $ (8,957,929)
Basic weighted average shares outstanding (in Shares) 13,380,914 13,306,467 13,380,914 13,118,610
Basic net loss per share (in Dollars per share) $ (0.4) $ (0.27) $ (0.53) $ (0.31)
Diluted weighted average shares outstanding (in Shares) 13,380,914 13,306,467 13,380,914 13,118,610
Diluted net loss per share (in Dollars per share) $ (0.4) $ (0.27) $ (0.53) $ (0.31)
Jinong        
Sales        
Net sales $ 6,811,640 $ 9,842,749 $ 16,100,398 $ 21,990,751
Cost of goods sold        
Cost of goods sold 4,982,284 7,152,122 11,588,897 15,912,292
Gufeng        
Sales        
Net sales 8,209,157 11,849,719 18,630,431 24,428,541
Cost of goods sold        
Cost of goods sold 7,198,290 10,477,612 16,193,611 21,732,489
Yuxing        
Sales        
Net sales 2,452,187 2,846,739 4,794,903 5,717,240
Cost of goods sold        
Cost of goods sold 2,042,241 2,395,056 3,919,768 4,792,525
Antaeus        
Sales        
Net sales 327,130 672,244
Cost of goods sold        
Cost of goods sold $ 248,812 $ 517,359
v3.24.0.1
Unaudited Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($)
Common Stock
Additional Paid In Capital
Statutory Reserve
Retained Earnings
Accumulated Other Comprehensive Loss
Total
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) (4,124,660) (4,124,660)
Issuance of stock for consulting services $ 122 657,878       658,000
Issuance of stock for consulting services (in Shares) 122,305          
Issuance of stock $ 1,117 16,756,013 16,757,130
Issuance of stock (in Shares) 1,117,142          
Transfer to statutory reserve (7,625) 7,625
Other comprehensive income (loss) (4,833,269) (4,833,269)
Balance at Dec. 31, 2022 $ 13,381 242,090,576 26,863,343 (107,491,624) (18,247,711) 143,227,965
Balance (in Shares) at Dec. 31, 2022 13,380,914          
Balance at Sep. 30, 2022 $ 13,259 241,432,699 26,990,562 (104,022,298) (24,334,600) 140,079,622
Balance (in Shares) at Sep. 30, 2022 13,258,609          
Net (loss)       (3,596,545)   (3,596,545)
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     (127,219) 127,219    
Other comprehensive income (loss)         6,086,889 6,086,889
Balance at Dec. 31, 2022 $ 13,381 242,090,576 26,863,343 (107,491,624) (18,247,711) 143,227,965
Balance (in Shares) at Dec. 31, 2022 13,380,914          
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          
Net (loss) (7,154,196) (7,154,196)
Issuance of stock for consulting services          
Issuance of stock
Issuance of stock (in Shares)           0
Transfer to statutory reserve (156,906) 156,906
Other comprehensive income (loss) 3,869,023 3,869,023
Balance at Dec. 31, 2023 $ 13,381 242,090,576 26,571,173 (123,510,975) (23,081,470) 122,082,685
Balance (in Shares) at Dec. 31, 2023 13,380,914          
Balance at Sep. 30, 2023 $ 13,381 242,090,576 26,732,603 (118,302,403) (27,786,870) 122,747,287
Balance (in Shares) at Sep. 30, 2023 13,380,914          
Net (loss)       (5,370,003)   (5,370,003)
Issuance of stock          
Transfer to statutory reserve     (161,430) 161,430  
Other comprehensive income (loss)         4,705,400 4,705,400
Balance at Dec. 31, 2023 $ 13,381 $ 242,090,576 $ 26,571,173 $ (123,510,975) $ (23,081,470) $ 122,082,685
Balance (in Shares) at Dec. 31, 2023 13,380,914          
v3.24.0.1
Unaudited Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities    
Net loss $ (7,154,196) $ (4,124,660)
Adjustments to reconcile Net loss to net cash provided by (used in) operating activities    
Depreciation and amortization 1,342,287 1,225,024
Provision for losses on accounts receivable 2,653,360 1,694,887
Inventories impairment 4,017,664 1,684,703
Changes in operating assets    
Digital assets 165,942
Accounts receivable (6,702,559) (1,434,613)
Amount due from related parties 27,707 2,550
Other current assets 202,270 (9,385,507)
Inventories 3,877,331 (6,496,098)
Advances to suppliers (2,242,010) 12,684,175
Other assets 932,385 964,237
Deferred tax assets (16,355)
Changes in operating liabilities    
Accounts payable (545,901) 297,553
Customer deposits (213,643) (237,629)
Amount due to related parties (1,000) (10,969)
Tax payables (160,178) 48,130
Accrued expenses and other payables 1,750,222 1,019,323
Interest payable (734,953)
Net cash used in operating activities (2,066,674) (2,803,847)
Cash flows from investing activities    
Purchase of plant, property, and equipment (1,607,163) (305,689)
Sales of discontinued operations 895,411
Net cash (used in) provided by investing activities (1,607,163) 589,722
Cash flows from financing activities    
Proceeds from the sale of common stock 16,757,130
Proceeds from loans 2,770,707 2,865,315
Repayment of loans (1,579,303)
Advance from related party 191,000 250,000
Net cash provided by financing activities 1,382,404 19,872,445
Effect of exchange rate change on cash and cash equivalents 1,551,981 (1,309,475)
Net (decrease) increase in cash and cash equivalents (739,452) 16,348,845
Cash and cash equivalents, beginning balance 71,142,188 57,770,303
Cash and cash equivalents, ending balance 70,402,736 74,119,148
Supplement disclosure of cash flow information    
Interest expense paid 141,367 149,983
Income taxes paid $ 164,822 $ 211,167
v3.24.0.1
Organization and Description of Business
 6 Months Ended
Dec. 31, 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.

 

Our current corporate structure is set forth in the following diagram:

 

 

  

Yuxing may also collectively be referred to as “the VIE Company”.
v3.24.0.1
Basis of Presentation and Summary of Significant Accounting Policies
 6 Months Ended
Dec. 31, 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”).

 

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.

 

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 December 31, 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 December 31, 2023 and June 30, 2023 were $67,909,293 and $69,091,838, respectively. There is no insurance securing these deposits in China. In addition, the Company also had $2,493,443 and $2,050,350 in cash in three banks in the United States as of December 31, 2023 and June 30, 2023, 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 December 31, 2023, the Company held Bitcoin as digital assets with amount of $44,399 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 December 31, 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 adequacy of these reserves at each year-end. Accounts considered uncollectible are provisioned for /written off based upon management’s assessment. As of December 31, 2023, and June 30, 2023, the Company had accounts receivable of $20,988,837 and $16,455,734, net of allowance for doubtful accounts of $50,107,077 and $54,708,486, respectively. The company recorded bad debt expense in the amount of $2.7 and $1.7 for the six months ended December 31, 2023 and 2022, respectively. The Company adopts no policy to accept product returns after 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 December 31, 2023, and 2022, the Company had no reserve for obsolete goods. The company confirmed the loss of $4.0 million and $1.7 million of inventories for the six months ended December 31, 2023 and 2022, respectively.

  

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 December 31, 2023 and 2022, respectively. 

 

Customer deposits

 

Payments received before all the relevant criteria for revenue recognition are satisfied are recorded as customer deposits. When all revenue recognition criteria are met, the customer deposits are recognized as revenue. As of December 31, 2023, and June 30, 2023, the Company had customer deposits of $5,407,480 and $5,489,781, respectively.

 

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:

 

   Three Months Ended 
   December 31, 
   2023   2022 
Net loss for Basic Earnings Per Share  $(5,370,003)  $(3,596,545)
Basic Weighted Average Number of Shares   13,380,914    13,306,467 
Net loss Per Share – Basic  $(0.40)  $(0.27)
Net loss for Diluted Earnings Per Share  $(5,370,003)  $(3,596,545)
Diluted Weighted Average Number of Shares   13,380,914    13,306,467 
Net loss Per Share – Diluted  $(0.40)  $(0.27)

  

   Six Months Ended 
   December 31, 
   2023   2022 
Net loss for Basic Earnings Per Share  $(7,154,196)  $(4,124,660)
Basic Weighted Average Number of Shares   13,380,914    13,118,610 
Net loss Per Share – Basic  $(0.53)  $(0.31)
Net loss for Diluted Earnings Per Share  $(7,154,196)  $(4,124,660)
Diluted Weighted Average Number of Shares   13,380,914    13,118,610 
Net loss Per Share – Diluted  $(0.53)  $(0.31)

 

Recent accounting pronouncements

 

The Company has evaluated all recently issued accounting pronouncements and does not believe any such pronouncements currently have, and does not expect such pronouncements to have, a material impact on the Condensed Consolidated Financial Statements on a prospective basis.
v3.24.0.1
Going Cercern
 6 Months Ended
Dec. 31, 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 during the reporting period from July 1, 2023 through December 31, 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.
v3.24.0.1
Inventories
 6 Months Ended
Dec. 31, 2023
Inventories [Abstract]  
INVENTORIES

NOTE 4 – INVENTORIES

 

Inventories consisted of the following:

 

   December 31,   June 30, 
   2023   2023 
Raw materials  $5,511,077   $11,617,989 
Supplies and packing materials  $427,724   $410,904 
Work in progress  $174,903   $172,248 
Finished goods  $33,440,783   $34,253,990 
Total  $39,554,487   $46,455,131 

 

The company confirmed the loss of $4.0 million and $1.7 million of inventories for the six months ended December 31, 2023 and 2022, respectively.
v3.24.0.1
Property, Plant and Equipment
 6 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT

NOTE 5 – PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment consisted of the following:

 

   December 31,   June 30, 
   2023   2023 
Building and improvements  $37,989,727   $37,065,465 
Auto   2,784,202    2,716,931 
Machinery and equipment   19,139,320    18,608,254 
Others   1,502,600    
-
 
Total property, plant and equipment   61,415,850    58,390,650 
Less: accumulated depreciation   (43,979,211)   (41,700,404)
Total  $17,436,639   $16,690,246 

 

For the six months ended December 31, 2023, total depreciation expense was $1,250,325, increased $140,409, or 12.7%, from $1,109,917 for the six months ended December 31, 2022.
v3.24.0.1
Intangible Assets and Digital Assets
 6 Months Ended
Dec. 31, 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:

 

   December 31,   June 30, 
   2023   2023 
Land use rights, net  $7,943,175   $7,862,624 
Technology patent, net   
-
    
-
 
Customer relationships, net   
-
    
-
 
Non-compete agreement   
-
    
-
 
Trademarks   5,841,674    5,701,011 
Total  $13,784,849   $13,563,635 

 

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 $10,333,707). 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 $147,688). 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 $1,028,656). The intangible asset is being amortized over the grant period of 50 years.

 

The Land Use Rights consisted of the following:

 

   December 31,   June 30, 
   2023   2023 
Land use rights  $11,362,363    11,088,765 
Less: accumulated amortization   (3,419,188)   (3,226,141)
Total land use rights, net  $7,943,175    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 humic acid. The fair value of the related intangible asset was determined to be the respective cost of RMB 5,875,068 (or $829,560) and is being amortized over the patent period of 10 years using the straight-line method. This technology patent has been fully amortized.

 

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value of the acquired technology patent was estimated to be RMB9,200,000 (or $1,299,040) and is amortized over the remaining useful life of six years using the straight-line method. As of December 31, 2023, this technology patent is fully amortized.

 

The technology know-how consisted of the following:

 

   December 31,   June 30, 
   2023   2023 
Technology know-how  $2,128,600   $2,077,344 
Less: accumulated amortization   (2,128,600)   (2,077,344)
Total technology know-how, net  $
-
   $
-
 

 

CUSTOMER RELATIONSHIPS

 

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value of the acquired customer relationships was estimated to be RMB65,000,000 (or $9,178,000) and is amortized over the remaining useful life of ten years.

 

   December 31,   June 30, 
   2023   2023 
Customer relationships  $9,178,000   $8,957,000 
Less: accumulated amortization   (9,178,000)   (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 of the acquired non-compete agreement was estimated to be RMB1,320,000 (or $186,384) and is amortized over the remaining useful life of five years using the straight-line method.

 

   December 31,   June 30, 
   2023   2023 
Non-compete agreement  $186,384   $181,896 
Less: accumulated amortization   (186,384)   (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 of the acquired trademarks was estimated to be RMB41,371,630 (or $5,841,674) and is subject to an annual impairment test.

 

   December 31,   June 30, 
   2023   2023 
Trademarks  $5,894,528   $5,752,592 
Less: accumulated amortization   (52,854)   (51,581)
Total trademarks, net  $5,841,674   $5,701,011 

 

AMORTIZATION EXPENSE

 

Estimated amortization expenses of intangible assets for the next five twelve months periods ended December 31, are as follows:

 

Twelve Months Ended on December 31,  Expense
($)		 
2024   275,348 
2025   254,696 
2026   228,880 
2027   226,894 
2028   226,894 

 

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 December 31, 2023, the company held digital assets with amount of $44,399.
v3.24.0.1
Other Non-Current Assets
 6 Months Ended
Dec. 31, 2023
Other Non-Current Assets [Abstract]  
OTHER NON-CURRENT ASSETS

NOTE 7 – OTHER NON-CURRENT ASSETS

 

Other non-current assets mainly include advance payments related to leasing land for use by the Company. As of December 31, 2023, the balance of other non-current assets was $4,268,057, which was the lease fee advances for agriculture lands that the Company engaged in Shiquan County from 2025 to 2027.

 

In March 2017, Jinong entered into a lease agreement for approximately 3,400 mu, and 2600-hectare agriculture lands in Shiquan County, Shaanxi Province. The lease was from April 2017 and was renewable for every ten-year period up to 2066. The aggregate leasing fee was approximately RMB 13 million per annum, The Company had made 10-year advances of leasing fee per lease terms. The Company has amortized $1.9 million and $0.5 million as expenses for the three months ended December 31, 2023 and 2022, respectively.

 

Estimated amortization expenses of the lease advance payments for the next four twelve-month periods ended December 31 and thereafter are as follows:

 

Twelve months ending December 31,    
2024  $1,895,610 
2025  $1,895,610 
2026  $1,895,610 
2027  $476,837 
v3.24.0.1
Accrued Expenses and Other Payables
 6 Months Ended
Dec. 31, 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:

 

   December 31,   June 30, 
   2023   2023 
Payroll and welfare payable  $168,665   $188,222 
Accrued expenses   11,888,205    9,805,444 
Other payables   4,612,253    4,820,193 
Other levy payable   118,419    115,568 
Total  $16,787,542   $14,929,427 
v3.24.0.1
Amount Due to Related Parties
 6 Months Ended
Dec. 31, 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 RMB 25,500,000 (approximately $3,600,600). For the six months ended December 31, 2023 and 2022, Yuxing hadn’t sold any products to 900LH.com.

 

The amount due from 900LH.com to Yuxing was $0 and $27,560 as of December 31, 2023 and June 30, 2023, respectively.

 

As of December 31, 2023, and June 30, 2023, the amount due to related parties was $5,653,709 and $5,439,209, respectively.  As of December 31, 2023, and June 30, 2023, $988,400 and $964,600, respectively were amounts that Gufeng borrowed from a related party, Xi’an Techteam Science& Technology Industry (Group) Co. Ltd., a company controlled by Mr. Zhuoyu Li, Chairman and CEO of the Company, representing unsecured, non-interest-bearing loans that are due on demand.  These loans are not subject to written agreements. As of December 31, 2023, and June 30, 2023, $2,336,693 and $2,261,693, respectively were advances from Mr. Zhuoyu Li, Chairman and CEO of the Company. The advances were unsecured and non-interest-bearing. As of December 31, 2023, and June 30, 2023, $116,000 and $0, respectively were advances from Mr. Zhibiao Pan, Co-CEO of the Company. The advances were unsecured and non-interest-bearing.

 

As of December 31, 2023, and June 30, 2023, the Company’s subsidiary, Jinong, owed 900LH.com $0 and $995, respectively.

 

On July 1, 2022, Jinong signed an office lease with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provides for a two-year term effective as of July 1, 2022 with monthly rent of RMB28,000 (approximately $3,954).
v3.24.0.1
Loan Payables
 6 Months Ended
Dec. 31, 2023
Loan Payables [Abstract]  
LOAN PAYABLES

NOTE 10 – LOAN PAYABLES

 

As of December 31, 2023, the short-term and long-term loan payables consisted of four loans which mature on dates ranging from June 5, 2024 through October 6, 2024 with interest rates ranging from 3.65% to 5.00%. The first two loans are collateralized by Tianjuyuan’s land use right and building ownership right.

 

No.  Payee  Loan period per agreement  Interest
Rate		   December 31,
2023		 
1  Beijing Bank -Pinggu Branch  June 5, 2023-June 5, 2024   4.15%   1,412,000 
2  Huaxia Bank -HuaiRou Branch  June 28, 2023-June 28, 2024   3.65%   1,412,000 
3  Pinggu New Village Bank  June 29, 2023-June 28, 2024   5.00%   988,400 
4  Industrial Bank Co. Ltd  August 19, 2022-February 18, 2024   3.98%   56,480 
5  Industrial Bank Co. Ltd  August 19, 2022-August 18, 2024   3.98%   960,160 
6  Industrial Bank Co. Ltd  October 7, 2023-October 6, 2024   3.70%   2,824,000 
   Total          $7,653,040 

 

The interest expense from loans was $141,367 and $149,983 for the six months ended December 31, 2023 and 2022, respectively.
v3.24.0.1
Taxes Payable
 6 Months Ended
Dec. 31, 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 no provision for income taxes for the three-month period ended December 31, 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

 

   December 31,   June 30, 
   2023   2023 
VAT provision  $(571,108)  $(398,499)
Income tax payable   (2,185,015)   (2,132,400)
Other levies   605,434    591,325 
Repatriation tax   29,010,535    29,010,535 
Total  $26,859,846   $27,070,961 

 

The provision for income taxes consists of the following:

 

   December 31,   December 31, 
   2023   2022 
Current tax - foreign  $(16,355)  $
            -
 
Deferred tax   
-
    
-
 
Total  $(16,355)  $
-
 

 

Significant components of deferred tax assets were as follows:

 

   December 31,   June 30, 
   2023   2023 
Deferred tax assets        
Deferred Tax Benefit   33,278,942    32,464,001 
Valuation allowance   (33,164,766)   (32,366,181)
Total deferred tax assets  $114,175    97,820 

 

Tax Rate Reconciliation

 

Our effective tax rates were approximately 0.2% and 0% for the six months ended December 31, 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 (loss) differ from the amounts computed by applying the US statutory income tax rate of 21.0% to income before income taxes for the six months ended December 31, 2023 and 2022 for the following reasons:

 

December 31, 2023

 

   China
15% - 25%		       United
States 21%		       Total     
Pretax loss  $(4,831,871)        (2,338,679)        (7,170,550)     
                        　      
Expected income tax expense (benefit)   (1,207,968)   25.0%   (491,123)   21.0%   (1,699,090)     
High-tech income benefits on Jinong   
-
    
-
    
-
    
　
    
-
      
Losses from subsidiaries in which no benefit is recognized   1,191,613    -24.7%   
-
    
　
    1,191,613      
Change in valuation allowance on deferred tax asset from US tax benefit   
-
    
-
    491,123    -21.0%   491,123      
Actual tax expense  $(16,355)   0.3%   
-
    
-
    (16,355)   0.2%

 

December 31, 2022

 

   China
15% - 25%		       United
States 21%		       Total     
Pretax loss  $(2,412,874)        (1,711,786)       $(4,124,660)     
                               
Expected income tax expense (benefit)   (603,219)   25.0%   (359,475)   21.0%   (962,693)     
High-tech income benefits on Jinong   142,607    (5.9)%   
-
    
-
    142,607      
Losses from subsidiaries in which no benefit is recognized   460,612    (19.1)%   
-
    
-
    460,612      
Change in valuation allowance on deferred tax asset from US tax benefit   
-
    0%   359,475    (21.0)%   359,475      
Actual tax expense  $
-
    0%  $
-
    0%  $
-
    0%
v3.24.0.1
Stockholders’ Equity
 6 Months Ended
Dec. 31, 2023
Stockholders’ Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 12 – STOCKHOLDERS’ EQUITY

 

Common Stock

 

There were no shares of common stock issued during the six months ended December 31, 2023.

 

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 an amount of $658,000 payable of consulting services.

 

On January 18, 2024, the Company issued 439,107 shares of common stock to settle an amount of $887,000 payable of consulting services.

 

As of December 31, 2023, and June 30, 2023, there were 13,380,914 and 13,380,914 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 December 31, 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.
v3.24.0.1
Concentrations and Litigation
 6 Months Ended
Dec. 31, 2023
Concentrations and Litigation [Abstract]  
CONCENTRATIONS AND LITIGATION

NOTE 13 – CONCENTRATIONS AND LITIGATION

 

Market Concentration

 

The majority of 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

 

None of the vendors accounted over 10% of the Company’s purchase of raw materials and supplies for the six months ended December 31, 2023 and 2022.

 

No customer accounted for over 10% of the Company’s sales for the six months ended December 31, 2023 and 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 December 31, 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.
v3.24.0.1
Segment Reporting
 6 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 14 – SEGMENT REPORTING

 

As of December 31, 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.

 

   Three Months
Ended		   Three Months
Ended		   Six Months
Ended		   Six Months
Ended		 
   December 31,
2023		   December 31,
2022		   December 31,
2023		   December 31,
2022		 
Revenues from unaffiliated customers:                
Jinong  $6,811,640   $9,842,749   $16,100,398   $21,990,751 
Gufeng   8,209,157    11,849,718    18,630,431    24,428,540 
Yuxing   2,452,187    2,846,740    4,794,903    5,717,241 
Antaeus   327,130    
-
    672,244    
-
 
Consolidated  $17,800,114   $24,539,207   $40,197,976   $52,136,532 
                     
Operating income (loss):                    
Jinong  $(360,423)  $(1,598,264)  $(505,546)  $(678,621)
Gufeng   (1,873,590)   (1,547,362)   (3,093,472)   (2,211,092)
Yuxing   (1,299,044)   200,253    (1,144,362)   384,247 
Antaeus   (63,521)   
-
    (94,017)   
-
 
Reconciling item (1)   
-
    (734,266)   
-
    (1,711,833)
Reconciling item (2)   (1,793,605)   
-
    (2,338,693)   
-
 
Consolidated  $(5,390,183)  $(3,679,639)  $(7,176,090)  $(4,217,299)
                     
Net income (loss):                    
Jinong  $(316,024)  $(1,554,778)  $(430,386)  $(570,428)
Gufeng   (1,917,160)   (1,590,123)   (3,179,583)   (2,336,623)
Yuxing   (1,298,291)   282,590    (1,144,020)   494,176 
 Antaeus   (44,923)   
-
    (61,526)   
-
 
Reconciling item (1)   
-
    31    12    47 
Reconciling item (2)   (1,793,605)   (734,266)   (2,338,693)   (1,711,832)
                     
Consolidated  $(5,370,003)  $(3,596,545)  $(7,154,196)  $(4,124,660)
                     
Depreciation and Amortization:                    
Jinong  $190,510   $191,858   $379,817   $390,103 
Gufeng   183,271    186,394    365,611    380,047 
Yuxing   186,417    184,594    371,642    454,874 
Antaeus   125,130    
-
    225,217    
-
 
Consolidated  $685,328   $562,846   $1,342,287   $1,225,024 
                     
Interest expense:                    
Jinong   30,388    25,127    55,516    25,127 
Gufeng   43,425    42,612    85,851    124,856 
Yuxing   
-
    
-
    
-
    
-
 
Antaeus   
-
    
-
    
-
    
--
 
Consolidated  $73,813   $67,739   $141,367   $149,983 
                     
Capital Expenditure:                    
Jinong  $41,081   $30,329   $41,823   $34,091 
Gufeng   
-
    (3,765)   
-
    216,105 
Yuxing   59,056    50,584    62,740    55,493 
Antaeus   
-
    
-
    1,502,600    
-
 
Consolidated  $100,137   $77,148   $1,607,164   $305,689 

 

   As of 
   December 31,   June 30, 
   2023   2023 
Identifiable assets:        
Jinong  $85,450,036   $87,862,836 
Gufeng   49,475,903    49,749,041 
Yuxing   38,237,419    38,223,482 
Antaeus   2,770,747    3,292,247 
Reconciling item (1)   9,927,731    7,387,637 
Reconciling item (2)   166,121    166,121 
Consolidated  $186,027,957   $186,681,364 

 

(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.
v3.24.0.1
Commitments and Contingencies
 6 Months Ended
Dec. 31, 2023
Commitments and Contingencies [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 15 – 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, 2022, Jinong signed an office lease with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provides for a two-year term effective as of July 1, 2022 with monthly rent of RMB28,000 (approximately $3,954).

 

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 $28,328 and $26,915 as rent expenses from these committed property leases for the six-month periods ended December 31, 2023 and 2022, respectively. The contingent rent expenses herein for the next five twelve-month periods ended December 31, are as follows:

 

Years ending December 31,    
2024  $56,655 
2025   56,655 
2026   56,655 
2027   56,655 
2028   56,655 
v3.24.0.1
Variable Interest Entities
 6 Months Ended
Dec. 31, 2023
Variable Interest Entities [Abstract]  
VARIABLE INTEREST ENTITIES

NOTE 16 – VARIABLE INTEREST ENTITIES

 

In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack 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 VIE (Yuxing) was included in the accompanying consolidated financial statements as of December 31, 2023 and June 30, 2023:

 

   December 31,   June 30, 
   2023   2023 
ASSETS        
Current Assets        
Cash and cash equivalents  $230,479   $323,854 
Accounts receivable, net   661,761    283,221 
Inventories   23,999,498    24,288,379 
Other current assets   143,247    108,677 
Related party receivable   
-
    27,560 
           
Total Current Assets   25,034,985    25,031,691 
           
Plant, Property and Equipment, Net   5,821,031    5,887,278 
Other assets   10,025    9,784 
Intangible Assets, Net   7,371,378    7,294,729 
Total Assets  $38,237,419   $38,223,482 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current Liabilities          
Accounts payable  $12,821   $12,512 
Customer deposits   50,187    62,134 
Accrued expenses and other payables   290,365    282,968 
Amount due to related parties   40,566,777    39,346,051 
Total Current Liabilities   40,920,150    39,703,665 
Total Liabilities  $40,920,150    39,703,665 
           
Stockholders’ equity   (2,682,731)   (1,480,183)
         　 
Total Liabilities and Stockholders’ Equity  $38,237,419   $38,223,482 

 

   Three Months Ended
December 31,		 
   2023     2022 
Revenue  $(2,452,187)  $(2,846,739)
Expenses   (3,750,478)   (2,564,149)
Net income  $1,298,291   $(282,590)

 

   Six Months Ended
December 31,		 
   2023     2022 
Revenue  $4,794,904   $5,717,240 
Expenses   5,938,924    5,223,064 
Net income  $(1,144,020)  $494,176 
v3.24.0.1
Subsequent Events
 6 Months Ended
Dec. 31, 2023
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 17 – SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations after December 31, 2023 to the date these unaudited condensed consolidated financial statements were available to be issued and has determined that there were no significant subsequent events or transactions that would require recognition or disclosure in the unaudited condensed consolidated financial statements.
v3.24.0.1
Accounting Policies, by Policy (Policies)
 6 Months Ended
Dec. 31, 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”).

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.
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 December 31, 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 December 31, 2023 and June 30, 2023 were $67,909,293 and $69,091,838, respectively. There is no insurance securing these deposits in China. In addition, the Company also had $2,493,443 and $2,050,350 in cash in three banks in the United States as of December 31, 2023 and June 30, 2023, 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 December 31, 2023, the Company held Bitcoin as digital assets with amount of $44,399 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 December 31, 2023, the Company determined that there were no impairments of its digital assets.
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 adequacy of these reserves at each year-end. Accounts considered uncollectible are provisioned for /written off based upon management’s assessment. As of December 31, 2023, and June 30, 2023, the Company had accounts receivable of $20,988,837 and $16,455,734, net of allowance for doubtful accounts of $50,107,077 and $54,708,486, respectively. The company recorded bad debt expense in the amount of $2.7 and $1.7 for the six months ended December 31, 2023 and 2022, respectively. The Company adopts no policy to accept product returns after 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 December 31, 2023, and 2022, the Company had no reserve for obsolete goods. The company confirmed the loss of $4.0 million and $1.7 million of inventories for the six months ended December 31, 2023 and 2022, respectively.
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 December 31, 2023 and 2022, respectively. 
Customer deposits

Customer deposits

Payments received before all the relevant criteria for revenue recognition are satisfied are recorded as customer deposits. When all revenue recognition criteria are met, the customer deposits are recognized as revenue. As of December 31, 2023, and June 30, 2023, the Company had customer deposits of $5,407,480 and $5,489,781, respectively.

 
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:

   Three Months Ended 
   December 31, 
   2023   2022 
Net loss for Basic Earnings Per Share  $(5,370,003)  $(3,596,545)
Basic Weighted Average Number of Shares   13,380,914    13,306,467 
Net loss Per Share – Basic  $(0.40)  $(0.27)
Net loss for Diluted Earnings Per Share  $(5,370,003)  $(3,596,545)
Diluted Weighted Average Number of Shares   13,380,914    13,306,467 
Net loss Per Share – Diluted  $(0.40)  $(0.27)
   Six Months Ended 
   December 31, 
   2023   2022 
Net loss for Basic Earnings Per Share  $(7,154,196)  $(4,124,660)
Basic Weighted Average Number of Shares   13,380,914    13,118,610 
Net loss Per Share – Basic  $(0.53)  $(0.31)
Net loss for Diluted Earnings Per Share  $(7,154,196)  $(4,124,660)
Diluted Weighted Average Number of Shares   13,380,914    13,118,610 
Net loss Per Share – Diluted  $(0.53)  $(0.31)
Recent accounting pronouncements

Recent accounting pronouncements

The Company has evaluated all recently issued accounting pronouncements and does not believe any such pronouncements currently have, and does not expect such pronouncements to have, a material impact on the Condensed Consolidated Financial Statements on a prospective basis.
v3.24.0.1
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Dec. 31, 2023
Basis of Presentation and Summary of Significant Accounting Policies [Abstract]  
Schedule of Basic and Diluted Earnings Per Share The components of basic and diluted earnings per share consist of the following:
   Three Months Ended 
   December 31, 
   2023   2022 
Net loss for Basic Earnings Per Share  $(5,370,003)  $(3,596,545)
Basic Weighted Average Number of Shares   13,380,914    13,306,467 
Net loss Per Share – Basic  $(0.40)  $(0.27)
Net loss for Diluted Earnings Per Share  $(5,370,003)  $(3,596,545)
Diluted Weighted Average Number of Shares   13,380,914    13,306,467 
Net loss Per Share – Diluted  $(0.40)  $(0.27)
   Six Months Ended 
   December 31, 
   2023   2022 
Net loss for Basic Earnings Per Share  $(7,154,196)  $(4,124,660)
Basic Weighted Average Number of Shares   13,380,914    13,118,610 
Net loss Per Share – Basic  $(0.53)  $(0.31)
Net loss for Diluted Earnings Per Share  $(7,154,196)  $(4,124,660)
Diluted Weighted Average Number of Shares   13,380,914    13,118,610 
Net loss Per Share – Diluted  $(0.53)  $(0.31)
v3.24.0.1
Inventories (Tables)
 6 Months Ended
Dec. 31, 2023
Schedule of Inventories [Abstract]  
Schedule of Inventories Inventories consisted of the following:
   December 31,   June 30, 
   2023   2023 
Raw materials  $5,511,077   $11,617,989 
Supplies and packing materials  $427,724   $410,904 
Work in progress  $174,903   $172,248 
Finished goods  $33,440,783   $34,253,990 
Total  $39,554,487   $46,455,131 
v3.24.0.1
Property, Plant and Equipment (Tables)
 6 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment Property, plant and equipment consisted of the following:
   December 31,   June 30, 
   2023   2023 
Building and improvements  $37,989,727   $37,065,465 
Auto   2,784,202    2,716,931 
Machinery and equipment   19,139,320    18,608,254 
Others   1,502,600    
-
 
Total property, plant and equipment   61,415,850    58,390,650 
Less: accumulated depreciation   (43,979,211)   (41,700,404)
Total  $17,436,639   $16,690,246 
v3.24.0.1
Intangible Assets and Digital Assets (Tables)
 6 Months Ended
Dec. 31, 2023
Intangible Assets and Digital Assets [Abstract]  
Schedule of Intangible Assets Intangible assets consisted of the following:
   December 31,   June 30, 
   2023   2023 
Land use rights, net  $7,943,175   $7,862,624 
Technology patent, net   
-
    
-
 
Customer relationships, net   
-
    
-
 
Non-compete agreement   
-
    
-
 
Trademarks   5,841,674    5,701,011 
Total  $13,784,849   $13,563,635 
The Land Use Rights consisted of the following:
   December 31,   June 30, 
   2023   2023 
Land use rights  $11,362,363    11,088,765 
Less: accumulated amortization   (3,419,188)   (3,226,141)
Total land use rights, net  $7,943,175    7,862,624 
The technology know-how consisted of the following:
   December 31,   June 30, 
   2023   2023 
Technology know-how  $2,128,600   $2,077,344 
Less: accumulated amortization   (2,128,600)   (2,077,344)
Total technology know-how, net  $
-
   $
-
 
   December 31,   June 30, 
   2023   2023 
Customer relationships  $9,178,000   $8,957,000 
Less: accumulated amortization   (9,178,000)   (8,957,000)
Total customer relationships, net  $
-
   $
-
 
   December 31,   June 30, 
   2023   2023 
Non-compete agreement  $186,384   $181,896 
Less: accumulated amortization   (186,384)   (181,896)
Total non-compete agreement, net  $
-
   $
-
 
   December 31,   June 30, 
   2023   2023 
Trademarks  $5,894,528   $5,752,592 
Less: accumulated amortization   (52,854)   (51,581)
Total trademarks, net  $5,841,674   $5,701,011 

 
Schedule of Estimated Amortization Expenses of Intangible Assets Estimated amortization expenses of intangible assets for the next five twelve months periods ended December 31, are as follows:
Twelve Months Ended on December 31,  Expense
($)		 
2024   275,348 
2025   254,696 
2026   228,880 
2027   226,894 
2028   226,894 
v3.24.0.1
Other Non-Current Assets (Tables)
 6 Months Ended
Dec. 31, 2023
Other Non-Current Assets [Abstract]  
Schedule of estimated amortization expenses of lease advance payments Estimated amortization expenses of the lease advance payments for the next four twelve-month periods ended December 31 and thereafter are as follows:
Twelve months ending December 31,    
2024  $1,895,610 
2025  $1,895,610 
2026  $1,895,610 
2027  $476,837 
v3.24.0.1
Accrued Expenses and Other Payables (Tables)
 6 Months Ended
Dec. 31, 2023
Accrued Expenses and Other Payables Table [Abstract]  
Schedule of Accrued Expenses and Other Payables Accrued expenses and other payables consisted of the following:
   December 31,   June 30, 
   2023   2023 
Payroll and welfare payable  $168,665   $188,222 
Accrued expenses   11,888,205    9,805,444 
Other payables   4,612,253    4,820,193 
Other levy payable   118,419    115,568 
Total  $16,787,542   $14,929,427 
v3.24.0.1
Loan Payables (Tables)
 6 Months Ended
Dec. 31, 2023
Loan Payables [Abstract]  
Schedule of Loan Payables As of December 31, 2023, the short-term and long-term loan payables consisted of four loans which mature on dates ranging from June 5, 2024 through October 6, 2024 with interest rates ranging from 3.65% to 5.00%. The first two loans are collateralized by Tianjuyuan’s land use right and building ownership right.
No.  Payee  Loan period per agreement  Interest
Rate		   December 31,
2023		 
1  Beijing Bank -Pinggu Branch  June 5, 2023-June 5, 2024   4.15%   1,412,000 
2  Huaxia Bank -HuaiRou Branch  June 28, 2023-June 28, 2024   3.65%   1,412,000 
3  Pinggu New Village Bank  June 29, 2023-June 28, 2024   5.00%   988,400 
4  Industrial Bank Co. Ltd  August 19, 2022-February 18, 2024   3.98%   56,480 
5  Industrial Bank Co. Ltd  August 19, 2022-August 18, 2024   3.98%   960,160 
6  Industrial Bank Co. Ltd  October 7, 2023-October 6, 2024   3.70%   2,824,000 
   Total          $7,653,040 
v3.24.0.1
Taxes Payable (Tables)
 6 Months Ended
Dec. 31, 2023
Taxes Payable [Abstract]  
Schedule of Income Taxes and Related Payable Income Taxes and Related Payables
   December 31,   June 30, 
   2023   2023 
VAT provision  $(571,108)  $(398,499)
Income tax payable   (2,185,015)   (2,132,400)
Other levies   605,434    591,325 
Repatriation tax   29,010,535    29,010,535 
Total  $26,859,846   $27,070,961 
Schedule of Provision for Income Taxes The provision for income taxes consists of the following:
   December 31,   December 31, 
   2023   2022 
Current tax - foreign  $(16,355)  $
            -
 
Deferred tax   
-
    
-
 
Total  $(16,355)  $
-
 
Schedule of Deferred Tax Assets Significant components of deferred tax assets were as follows:
   December 31,   June 30, 
   2023   2023 
Deferred tax assets        
Deferred Tax Benefit   33,278,942    32,464,001 
Valuation allowance   (33,164,766)   (32,366,181)
Total deferred tax assets  $114,175    97,820 

 
Schedule of Effective Income Tax Rate Reconciliation Actual income tax benefit reported in the consolidated statements of operations and comprehensive income (loss) differ from the amounts computed by applying the US statutory income tax rate of 21.0% to income before income taxes for the six months ended December 31, 2023 and 2022 for the following reasons:
   China
15% - 25%		       United
States 21%		       Total     
Pretax loss  $(4,831,871)        (2,338,679)        (7,170,550)     
                        　      
Expected income tax expense (benefit)   (1,207,968)   25.0%   (491,123)   21.0%   (1,699,090)     
High-tech income benefits on Jinong   
-
    
-
    
-
    
　
    
-
      
Losses from subsidiaries in which no benefit is recognized   1,191,613    -24.7%   
-
    
　
    1,191,613      
Change in valuation allowance on deferred tax asset from US tax benefit   
-
    
-
    491,123    -21.0%   491,123      
Actual tax expense  $(16,355)   0.3%   
-
    
-
    (16,355)   0.2%
   China
15% - 25%		       United
States 21%		       Total     
Pretax loss  $(2,412,874)        (1,711,786)       $(4,124,660)     
                               
Expected income tax expense (benefit)   (603,219)   25.0%   (359,475)   21.0%   (962,693)     
High-tech income benefits on Jinong   142,607    (5.9)%   
-
    
-
    142,607      
Losses from subsidiaries in which no benefit is recognized   460,612    (19.1)%   
-
    
-
    460,612      
Change in valuation allowance on deferred tax asset from US tax benefit   
-
    0%   359,475    (21.0)%   359,475      
Actual tax expense  $
-
    0%  $
-
    0%  $
-
    0%
v3.24.0.1
Segment Reporting (Tables)
 6 Months Ended
Dec. 31, 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.
   Three Months
Ended		   Three Months
Ended		   Six Months
Ended		   Six Months
Ended		 
   December 31,
2023		   December 31,
2022		   December 31,
2023		   December 31,
2022		 
Revenues from unaffiliated customers:                
Jinong  $6,811,640   $9,842,749   $16,100,398   $21,990,751 
Gufeng   8,209,157    11,849,718    18,630,431    24,428,540 
Yuxing   2,452,187    2,846,740    4,794,903    5,717,241 
Antaeus   327,130    
-
    672,244    
-
 
Consolidated  $17,800,114   $24,539,207   $40,197,976   $52,136,532 
                     
Operating income (loss):                    
Jinong  $(360,423)  $(1,598,264)  $(505,546)  $(678,621)
Gufeng   (1,873,590)   (1,547,362)   (3,093,472)   (2,211,092)
Yuxing   (1,299,044)   200,253    (1,144,362)   384,247 
Antaeus   (63,521)   
-
    (94,017)   
-
 
Reconciling item (1)   
-
    (734,266)   
-
    (1,711,833)
Reconciling item (2)   (1,793,605)   
-
    (2,338,693)   
-
 
Consolidated  $(5,390,183)  $(3,679,639)  $(7,176,090)  $(4,217,299)
                     
Net income (loss):                    
Jinong  $(316,024)  $(1,554,778)  $(430,386)  $(570,428)
Gufeng   (1,917,160)   (1,590,123)   (3,179,583)   (2,336,623)
Yuxing   (1,298,291)   282,590    (1,144,020)   494,176 
 Antaeus   (44,923)   
-
    (61,526)   
-
 
Reconciling item (1)   
-
    31    12    47 
Reconciling item (2)   (1,793,605)   (734,266)   (2,338,693)   (1,711,832)
                     
Consolidated  $(5,370,003)  $(3,596,545)  $(7,154,196)  $(4,124,660)
                     
Depreciation and Amortization:                    
Jinong  $190,510   $191,858   $379,817   $390,103 
Gufeng   183,271    186,394    365,611    380,047 
Yuxing   186,417    184,594    371,642    454,874 
Antaeus   125,130    
-
    225,217    
-
 
Consolidated  $685,328   $562,846   $1,342,287   $1,225,024 
                     
Interest expense:                    
Jinong   30,388    25,127    55,516    25,127 
Gufeng   43,425    42,612    85,851    124,856 
Yuxing   
-
    
-
    
-
    
-
 
Antaeus   
-
    
-
    
-
    
--
 
Consolidated  $73,813   $67,739   $141,367   $149,983 
                     
Capital Expenditure:                    
Jinong  $41,081   $30,329   $41,823   $34,091 
Gufeng   
-
    (3,765)   
-
    216,105 
Yuxing   59,056    50,584    62,740    55,493 
Antaeus   
-
    
-
    1,502,600    
-
 
Consolidated  $100,137   $77,148   $1,607,164   $305,689 

 

   As of 
   December 31,   June 30, 
   2023   2023 
Identifiable assets:        
Jinong  $85,450,036   $87,862,836 
Gufeng   49,475,903    49,749,041 
Yuxing   38,237,419    38,223,482 
Antaeus   2,770,747    3,292,247 
Reconciling item (1)   9,927,731    7,387,637 
Reconciling item (2)   166,121    166,121 
Consolidated  $186,027,957   $186,681,364 
(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.
v3.24.0.1
Commitments and Contingencies (Tables)
 6 Months Ended
Dec. 31, 2023
Commitments and Contingencies [Abstract]  
Schedule of Contingent Rent Expenses Accordingly, the Company recorded an aggregate of $28,328 and $26,915 as rent expenses from these committed property leases for the six-month periods ended December 31, 2023 and 2022, respectively. The contingent rent expenses herein for the next five twelve-month periods ended December 31, are as follows:
Years ending December 31,    
2024  $56,655 
2025   56,655 
2026   56,655 
2027   56,655 
2028   56,655 
v3.24.0.1
Variable Interest Entities (Tables)
 6 Months Ended
Dec. 31, 2023
Variable Interest Entities [Abstract]  
Schedule of VIEs Consolidated Financial Statements The following financial statement amounts and balances of the VIE (Yuxing) was included in the accompanying consolidated financial statements as of December 31, 2023 and June 30, 2023:
   December 31,   June 30, 
   2023   2023 
ASSETS        
Current Assets        
Cash and cash equivalents  $230,479   $323,854 
Accounts receivable, net   661,761    283,221 
Inventories   23,999,498    24,288,379 
Other current assets   143,247    108,677 
Related party receivable   
-
    27,560 
           
Total Current Assets   25,034,985    25,031,691 
           
Plant, Property and Equipment, Net   5,821,031    5,887,278 
Other assets   10,025    9,784 
Intangible Assets, Net   7,371,378    7,294,729 
Total Assets  $38,237,419   $38,223,482 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current Liabilities          
Accounts payable  $12,821   $12,512 
Customer deposits   50,187    62,134 
Accrued expenses and other payables   290,365    282,968 
Amount due to related parties   40,566,777    39,346,051 
Total Current Liabilities   40,920,150    39,703,665 
Total Liabilities  $40,920,150    39,703,665 
           
Stockholders’ equity   (2,682,731)   (1,480,183)
         　 
Total Liabilities and Stockholders’ Equity  $38,237,419   $38,223,482 
   Three Months Ended
December 31,		 
   2023     2022 
Revenue  $(2,452,187)  $(2,846,739)
Expenses   (3,750,478)   (2,564,149)
Net income  $1,298,291   $(282,590)
   Six Months Ended
December 31,		 
   2023     2022 
Revenue  $4,794,904   $5,717,240 
Expenses   5,938,924    5,223,064 
Net income  $(1,144,020)  $494,176 
v3.24.0.1
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($)
 6 Months Ended 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Jun. 30, 2023
Jun. 16, 2013
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]        
Aggregate cash in accounts and on hand $ 67,909,293   $ 69,091,838  
Digital assets 44,399      
Accounts receivable 20,988,837   16,455,734  
Net of allowance for doubtful accounts 50,107,077   54,708,486  
Debt expense 2.7 $ 1.7    
Inventories 4,000,000 $ 1,700,000    
Customer deposits 5,407,480   5,489,781  
Yuxing [Member]        
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]        
Percentage of ownership       100.00%
Jinong [Member]        
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]        
Percentage of ownership       100.00%
United States Bank [Member]        
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]        
Deposits in banks $ 2,493,443   $ 2,050,350  
v3.24.0.1
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Basic and Diluted Earnings Per Share - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Schedule of Basic and Diluted Earnings Per Share [Abstract]        
Net loss for Basic Earnings Per Share $ (5,370,003) $ (3,596,545) $ (7,154,196) $ (4,124,660)
Basic Weighted Average Number of Shares 13,380,914 13,306,467 13,380,914 13,118,610
Net loss Per Share – Basic $ (0.4) $ (0.27) $ (0.53) $ (0.31)
Net loss for Diluted Earnings Per Share $ (5,370,003) $ (3,596,545) $ (7,154,196) $ (4,124,660)
Diluted Weighted Average Number of Shares 13,380,914 13,306,467 13,380,914 13,118,610
Net loss Per Share – Diluted $ (0.4) $ (0.27) $ (0.53) $ (0.31)
v3.24.0.1
Inventories (Details) - USD ($)
$ in Millions
 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Inventories [Abstract]    
Loss of inventories $ 4.0 $ 1.7
v3.24.0.1
Inventories (Details) - Schedule of Inventories - USD ($)
Dec. 31, 2023
Jun. 30, 2023
Schedule of Inventories [Abstract]    
Raw materials $ 5,511,077 $ 11,617,989
Supplies and packing materials 427,724 410,904
Work in progress 174,903 172,248
Finished goods 33,440,783 34,253,990
Total $ 39,554,487 $ 46,455,131
v3.24.0.1
Property, Plant and Equipment (Details) - USD ($)
 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Abstract]    
Depreciation expense $ 1,250,325  
Depreciation expense increased $ 140,409  
Depreciation expense percentage   12.70%
Depreciation   $ 1,109,917
v3.24.0.1
Property, Plant and Equipment (Details) - Schedule of Property, Plant and Equipment - USD ($)
Dec. 30, 2023
Jun. 30, 2023
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment $ 61,415,850 $ 58,390,650
Less: accumulated depreciation (43,979,211) (41,700,404)
Total 17,436,639 16,690,246
Building Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment 37,989,727 37,065,465
Auto [Member]    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment 2,784,202 2,716,931
Machinery and Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment 19,139,320 18,608,254
Others [Member]    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment $ 1,502,600
v3.24.0.1
Intangible Assets and Digital Assets (Details)
 1 Months Ended
Jul. 02, 2010
USD ($)
Sep. 25, 2009
USD ($)
Sep. 25, 2009
CNY (¥)
Dec. 31, 2023
USD ($)
Jun. 30, 2023
USD ($)
Apr. 02, 2023
ft²
Jul. 02, 2010
CNY (¥)
Sep. 25, 2009
m²
Sep. 25, 2009
ft²
Aug. 13, 2003
Aug. 13, 2003
USD ($)
Aug. 13, 2003
m²
Aug. 13, 2003
ft²
Aug. 13, 2003
CNY (¥)
Aug. 16, 2001
USD ($)
Aug. 16, 2001
CNY (¥)
Intangible Assets [Line Items]                                
Area of land           4,348   353,000 3,800,000     42,726 459,898      
Fair value of the related intangible asset   $ 10,333,707 ¥ 73,184,895                          
Amortization period of intangible assets   50 years 50 years                          
Digital assets       $ 44,399 $ 210,342                      
Land Use Rights [Member]                                
Intangible Assets [Line Items]                                
Amortization period of intangible assets                   50 years         50 years 50 years
Fair value of intangible assets                     $ 147,688     ¥ 1,045,950 $ 1,028,656 ¥ 7,285,099
Technology Patent [Member]                                
Intangible Assets [Line Items]                                
Amortization period of intangible assets                             10 years 10 years
Fair value of intangible assets $ 1,299,040           ¥ 9,200,000               $ 829,560 ¥ 5,875,068
Customer Relationships [Member]                                
Intangible Assets [Line Items]                                
Fair value of intangible assets 9,178,000           65,000,000                  
Non-Compete Agreement [Member]                                
Intangible Assets [Line Items]                                
Fair value of intangible assets $ 186,384           1,320,000                  
Land Use Rights [Member]                                
Intangible Assets [Line Items]                                
Amortized remaining useful life 5 years                              
Trademarks [Member]                                
Intangible Assets [Line Items]                                
Fair value of intangible assets $ 5,841,674           ¥ 41,371,630                  
v3.24.0.1
Intangible Assets and Digital Assets (Details) - Schedule of Intangible Assets - USD ($)
Dec. 31, 2023
Jun. 30, 2023
Indefinite-Lived Intangible Assets [Line Items]    
Total $ 13,784,849 $ 13,563,635
Land Use Rights [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Total 7,943,175 7,862,624
Intangible assets gross 11,362,363 11,088,765
Less: accumulated amortization (3,419,188) (3,226,141)
Technology patent [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Total
Intangible assets gross 2,128,600 2,077,344
Less: accumulated amortization (2,128,600) (2,077,344)
Customer Relationships [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Total
Intangible assets gross 9,178,000 8,957,000
Less: accumulated amortization (9,178,000) (8,957,000)
Noncompete Agreements [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Total
Intangible assets gross 186,384 181,896
Less: accumulated amortization (186,384) (181,896)
Trademarks [Member]    
Indefinite-Lived Intangible Assets [Line Items]    
Total 5,841,674 5,701,011
Intangible assets gross 5,894,528 5,752,592
Less: accumulated amortization $ (52,854) $ (51,581)
v3.24.0.1
Intangible Assets and Digital Assets (Details) - Schedule of Estimated Amortization Expenses of Intangible Assets
Dec. 31, 2023
USD ($)
Schedule of Estimated Amortization Expenses of Intangible Assets [Abstract]  
2024 $ 275,348
2025 254,696
2026 228,880
2027 226,894
2028 $ 226,894
v3.24.0.1
Other Non-Current Assets (Details)
¥ in Millions
 6 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2023
CNY (¥)
Dec. 31, 2022
USD ($)
Jun. 30, 2023
USD ($)
Other Non-Current Assets [Line Items]        
Other non-current assets $ 4,268,057     $ 5,092,721
Lease term 10 years      
Jinong [Member]        
Other Non-Current Assets [Line Items]        
Lease agreement, description In March 2017, Jinong entered into a lease agreement for approximately 3,400 mu, and 2600-hectare agriculture lands in Shiquan County, Shaanxi Province. The lease was from April 2017 and was renewable for every ten-year period up to 2066. In March 2017, Jinong entered into a lease agreement for approximately 3,400 mu, and 2600-hectare agriculture lands in Shiquan County, Shaanxi Province. The lease was from April 2017 and was renewable for every ten-year period up to 2066.    
Lease fee (in Yuan Renminbi) | ¥   ¥ 13    
Amortized expense $ 1,900,000   $ 500,000  
v3.24.0.1
Other Non-Current Assets (Details) - Schedule of Estimated Amortization Expenses of Lease Advance Payments
Dec. 31, 2023
USD ($)
Schedule of Estimated Amortization Expenses of Lease Advance Payments [Abstract]  
2024 $ 1,895,610
2025 1,895,610
2026 1,895,610
2027 $ 476,837
v3.24.0.1
Accrued Expenses and Other Payables (Details) - Schedule of Accrued Expenses and Other Payables - USD ($)
Dec. 31, 2023
Jun. 30, 2023
Schedule of Accrued Expenses and Other Payables [Abstract]    
Payroll and welfare payable $ 168,665 $ 188,222
Accrued expenses 11,888,205 9,805,444
Other payables 4,612,253 4,820,193
Other levy payable 118,419 115,568
Total $ 16,787,542 $ 14,929,427
v3.24.0.1
Amount Due to Related Parties (Details)
 1 Months Ended 6 Months Ended
Jul. 01, 2022
USD ($)
m²
ft²
Jul. 01, 2022
CNY (¥)
m²
ft²
Dec. 31, 2015
USD ($)
Dec. 31, 2015
CNY (¥)
Dec. 31, 2023
USD ($)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
Apr. 02, 2023
ft²
Sep. 25, 2009
m²
Sep. 25, 2009
ft²
Aug. 13, 2003
m²
Aug. 13, 2003
ft²
Amount Due to Related Parties [Line Items]                        
Amount due to related parties         $ 5,653,709 $ 5,439,209            
Borrowed from related party         191,000   $ 250,000          
Area of land (in Square Feet)               4,348 353,000 3,800,000 42,726 459,898
Sales Agreement [Member]                        
Amount Due to Related Parties [Line Items]                        
Contingent contracted value amount     $ 3,600,600 ¥ 25,500,000                
Kingtone Information Technology Co., Ltd. [Member]                        
Amount Due to Related Parties [Line Items]                        
Ground rent (in Square Meters) | m² 612 612                    
Area of land (in Square Feet) | ft² 6,588 6,588                    
Monthly rental payment $ 3,954 ¥ 28,000                    
Yuxing [Member]                        
Amount Due to Related Parties [Line Items]                        
Amount due         0 27,560            
Gufeng [Member]                        
Amount Due to Related Parties [Line Items]                        
Borrowed from related party         988,400 964,600            
Mr. Zhuoyu Li [Member]                        
Amount Due to Related Parties [Line Items]                        
Advances amount         2,336,693 2,261,693            
Mr. Zhibiao Pan [Member]                        
Amount Due to Related Parties [Line Items]                        
Advances amount         116,000 0            
Jinong [Member]                        
Amount Due to Related Parties [Line Items]                        
Amount due         $ 0 $ 995            
v3.24.0.1
Loan Payables (Details) - USD ($)
 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Loan Payables [Line Items]    
Interest expense from loans $ 141,367 $ 149,983
Loan Payable [Member] | Minimum [Member]    
Loan Payables [Line Items]    
Loans payable, interest rate 3.65%  
Loan Payable [Member] | Maximum [Member]    
Loan Payables [Line Items]    
Loans payable, interest rate 5.00%  
v3.24.0.1
Loan Payables (Details) - Schedule of Loan Payables
 6 Months Ended
Dec. 31, 2023
USD ($)
Loan Payables (Details) - Schedule of Loan Payables [Line Items]  
Loans payable $ 7,653,040
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%
Loans payable $ 1,412,000
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%
Loans payable $ 1,412,000
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%
Loans payable $ 988,400
Industrial Bank Co. Ltd [Member]  
Loan Payables (Details) - Schedule of Loan Payables [Line Items]  
Loan period per agreement, Start and End August 19, 2022-February 18, 2024
Loans payable, interest rate 3.98%
Loans payable $ 56,480
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%
Loans payable $ 960,160
Industrial Bank Co. Ltd [Member]  
Loan Payables (Details) - Schedule of Loan Payables [Line Items]  
Loan period per agreement, Start and End October 7, 2023-October 6, 2024
Loans payable, interest rate 3.70%
Loans payable $ 2,824,000
v3.24.0.1
Taxes Payable (Details)
 6 Months Ended
Mar. 20, 2019
Apr. 04, 2018
Apr. 28, 2017
Jan. 01, 2008
Dec. 31, 2023
Dec. 31, 2022
Taxes Payable [Line Items]            
Income tax rate percentage       15.00% 21.00% 21.00%
Periodic tax reduction, description         The two-year tax exemption and three-year 50% tax reduction tax holiday for production-oriented FIEs was eliminated.  
Value added tax         9.00%  
Value added tax, 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.  
PRC [Member]            
Taxes Payable [Line Items]            
Income tax rate percentage 9.00% 10.00% 11.00%   0.20% 0.00%
Minimum [Member]            
Taxes Payable [Line Items]            
Income tax rate percentage       25.00%    
Minimum [Member] | PRC [Member]            
Taxes Payable [Line Items]            
Income tax rate percentage 1.00% 1.00% 2.00%      
Maximum [Member]            
Taxes Payable [Line Items]            
Income tax rate percentage       33.00%    
Maximum [Member] | PRC [Member]            
Taxes Payable [Line Items]            
Income tax rate percentage 10.00% 11.00% 13.00%      
v3.24.0.1
Taxes Payable (Details) - Schedule of Income Taxes and Related Payable - USD ($)
Dec. 31, 2023
Jun. 30, 2023
Schedule of Income Taxes and Related Payables [Abstract]    
VAT provision $ (571,108) $ (398,499)
Income tax payable (2,185,015) (2,132,400)
Other levies 605,434 591,325
Repatriation tax 29,010,535 29,010,535
Total $ 26,859,846 $ 27,070,961
v3.24.0.1
Taxes Payable (Details) - Schedule of Provision for Income Taxes - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Schedule of Provision for Income Taxes [Abstract]        
Current tax - foreign     $ (16,355)
Deferred tax    
Total $ (11,942) $ (16,355)
v3.24.0.1
Taxes Payable (Details) - Schedule of Deferred Tax Assets - USD ($)
Dec. 31, 2023
Jun. 30, 2023
Deferred tax assets    
Deferred Tax Benefit $ 33,278,942 $ 32,464,001
Valuation allowance (33,164,766) (32,366,181)
Total deferred tax assets $ 114,175 $ 97,820
v3.24.0.1
Taxes Payable (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($)
 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Schedule of Effective Income Tax Rate Reconciliation [Line Items]    
Pretax loss $ (7,170,550) $ (4,124,660)
Expected income tax expense (benefit) (1,699,090) (962,693)
High-tech income benefits on Jinong 142,607
Losses from subsidiaries in which no benefit is recognized 1,191,613 460,612
Change in valuation allowance on deferred tax asset from US tax benefit 491,123 359,475
Actual tax expense $ (16,355)
Actual tax expense, Percentage 0.20% 0.00%
China 15% - 25% [Member]    
Schedule of Effective Income Tax Rate Reconciliation [Line Items]    
Pretax loss $ (4,831,871) $ (2,412,874)
Expected income tax expense (benefit) $ (1,207,968) $ (603,219)
Expected income tax expense (benefit), Percentage 25.00% 25.00%
High-tech income benefits on Jinong $ 142,607
High-tech income benefits on Jinong, Percentage (5.90%)
Losses from subsidiaries in which no benefit is recognized $ 1,191,613 $ 460,612
Losses from subsidiaries in which no benefit is recognized, Percentage (24.70%) (19.10%)
Change in valuation allowance on deferred tax asset from US tax benefit
Change in valuation allowance on deferred tax asset from US tax benefit, Percentage 0.00%
Actual tax expense $ (16,355)
Actual tax expense, Percentage 0.30% 0.00%
United States 21% [Member]    
Schedule of Effective Income Tax Rate Reconciliation [Line Items]    
Pretax loss $ (2,338,679) $ (1,711,786)
Expected income tax expense (benefit) $ (491,123) $ (359,475)
Expected income tax expense (benefit), Percentage 21.00% 21.00%
High-tech income benefits on Jinong
High-tech income benefits on Jinong, Percentage
Losses from subsidiaries in which no benefit is recognized
Losses from subsidiaries in which no benefit is recognized, Percentage
Change in valuation allowance on deferred tax asset from US tax benefit $ 491,123 $ 359,475
Change in valuation allowance on deferred tax asset from US tax benefit, Percentage (21.00%) (21.00%)
Actual tax expense
Actual tax expense, Percentage 0.00%
v3.24.0.1
Stockholders’ Equity (Details) - USD ($)
 1 Months Ended 6 Months Ended
Jan. 18, 2024
Nov. 25, 2022
Dec. 31, 2023
Jun. 30, 2023
Feb. 02, 2022
Stockholders Equity [Line Items]          
Number of share issued     0    
Issuance shares         1,117,142
Ownership cost (in Dollars)         $ 16,757,130
Common stock, shares issued   122,305 13,380,914 13,380,914  
Fair value stock (in Dollars)   $ 658,000      
Consulting services (in Dollars) $ 887,000        
Common stock, shares outstanding     13,380,914 13,380,914  
Preferred stock, shares authorized     20,000,000 20,000,000  
Preferred stock, par value (in Dollars per share)     $ 0.001 $ 0.001  
Preferred stock, shares issued     0 0  
Preferred stock, shares outstanding     0 0  
Preferred Stock [Member]          
Stockholders Equity [Line Items]          
Preferred stock, share     20,000,000    
Subsequent Event [Member]          
Stockholders Equity [Line Items]          
Common stock, shares issued 439,107        
v3.24.0.1
Concentrations and Litigation (Details) - Revenue, Product and Service Benchmark [Member] - Supplier Concentration Risk [Member]
 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Customer [Member]    
Concentrations and Litigation [Line Items]    
Customer concentration, percentage 10.00% 10.00%
Vendors [Member]    
Concentrations and Litigation [Line Items]    
Customer concentration, percentage 10.00% 10.00%
v3.24.0.1
Segment Reporting (Details)
 6 Months Ended
Dec. 31, 2023
Segments
Segment Reporting [Abstract]  
Number of business segments 4
Number of operating segments 4
v3.24.0.1
Segment Reporting (Details) - Schedule of Segment Reporting Information - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Jun. 30, 2023
Revenues from unaffiliated customers:          
Revenues from unaffiliated customers $ 17,800,114 $ 24,539,207 $ 40,197,976 $ 52,136,532  
Operating income (loss):          
Operating income (loss) (5,390,183) (3,679,639) (7,176,090) (4,217,299)  
Net income (loss):          
Net income (loss) (5,370,003) (3,596,545) (7,154,196) (4,124,660)  
Depreciation and Amortization:          
Depreciation and Amortization 685,328 562,846 1,342,287 1,225,024  
Interest expense:          
Interest expense 73,813 67,739 141,367 149,983  
Capital Expenditure:          
Capital Expenditure 100,137 77,148 1,607,164 305,689  
Identifiable assets:          
Identifiable assets 186,027,957   186,027,957   $ 186,681,364
Jinong [Member]          
Revenues from unaffiliated customers:          
Revenues from unaffiliated customers 6,811,640 9,842,749 16,100,398 21,990,751  
Operating income (loss):          
Operating income (loss) (360,423) (1,598,264) (505,546) (678,621)  
Net income (loss):          
Net income (loss) (316,024) (1,554,778) (430,386) (570,428)  
Depreciation and Amortization:          
Depreciation and Amortization 190,510 191,858 379,817 390,103  
Interest expense:          
Interest expense 30,388 25,127 55,516 25,127  
Capital Expenditure:          
Capital Expenditure 41,081 30,329 41,823 34,091  
Identifiable assets:          
Identifiable assets 85,450,036   85,450,036   87,862,836
Gufeng [Member]          
Revenues from unaffiliated customers:          
Revenues from unaffiliated customers 8,209,157 11,849,718 18,630,431 24,428,540  
Operating income (loss):          
Operating income (loss) (1,873,590) (1,547,362) (3,093,472) (2,211,092)  
Net income (loss):          
Net income (loss) (1,917,160) (1,590,123) (3,179,583) (2,336,623)  
Depreciation and Amortization:          
Depreciation and Amortization 183,271 186,394 365,611 380,047  
Interest expense:          
Interest expense 43,425 42,612 85,851 124,856  
Capital Expenditure:          
Capital Expenditure (3,765) 216,105  
Identifiable assets:          
Identifiable assets 49,475,903   49,475,903   49,749,041
Yuxing [Member]          
Revenues from unaffiliated customers:          
Revenues from unaffiliated customers 2,452,187 2,846,740 4,794,903 5,717,241  
Operating income (loss):          
Operating income (loss) (1,299,044) 200,253 (1,144,362) 384,247  
Net income (loss):          
Net income (loss) (1,298,291) 282,590 (1,144,020) 494,176  
Depreciation and Amortization:          
Depreciation and Amortization 186,417 184,594 371,642 454,874  
Interest expense:          
Interest expense  
Capital Expenditure:          
Capital Expenditure 59,056 50,584 62,740 55,493  
Identifiable assets:          
Identifiable assets 38,237,419   38,237,419   38,223,482
Antaeus [Member]          
Revenues from unaffiliated customers:          
Revenues from unaffiliated customers 327,130 672,244  
Operating income (loss):          
Operating income (loss) (63,521) (94,017)  
Net income (loss):          
Net income (loss) (44,923) (61,526)  
Depreciation and Amortization:          
Depreciation and Amortization 125,130 225,217  
Interest expense:          
Interest expense  
Capital Expenditure:          
Capital Expenditure 1,502,600  
Identifiable assets:          
Identifiable assets 2,770,747   2,770,747   3,292,247
Reconciling item 1 [Member]          
Operating income (loss):          
Operating income (loss) [1] (734,266) (1,711,833)  
Net income (loss):          
Net income (loss) [1] 31 12 47  
Identifiable assets:          
Identifiable assets [1] 9,927,731   9,927,731   7,387,637
Reconciling item 2 [Member]          
Operating income (loss):          
Operating income (loss) [2] (1,793,605) (2,338,693)  
Net income (loss):          
Net income (loss) [2] (1,793,605) $ (734,266) (2,338,693) $ (1,711,832)  
Identifiable assets:          
Identifiable assets [2] $ 166,121   $ 166,121   $ 166,121
[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.
v3.24.0.1
Commitments and Contingencies (Details)
 6 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Apr. 02, 2023
m²
ft²
Jul. 01, 2022
USD ($)
m²
ft²
Jul. 01, 2022
CNY (¥)
m²
ft²
Sep. 25, 2009
m²
Sep. 25, 2009
ft²
Aug. 13, 2003
m²
Aug. 13, 2003
ft²
Commitments and Contingencies [Line Items]                  
Pursuant to rented (in Square Meters)     404            
Pursuant to lease in square feet (in Square Feet)     4,348     353,000 3,800,000 42,726 459,898
Rent expenses | $ $ 28,328 $ 26,915              
Jinong [Member]                  
Commitments and Contingencies [Line Items]                  
Pursuant to rented (in Square Meters)       612 612        
Kingtone Information [Member]                  
Commitments and Contingencies [Line Items]                  
Pursuant to lease in square feet (in Square Feet) | ft²       6,588 6,588        
Monthly rent       $ 3,954 ¥ 28,000        
v3.24.0.1
Commitments and Contingencies (Details) - Schedule of Contingent Rent Expenses
Dec. 31, 2023
USD ($)
Schedule of Payments for Lease Expenses [Abstract]  
2024 $ 56,655
2025 56,655
2026 56,655
2027 56,655
2028 $ 56,655
v3.24.0.1
Variable Interest Entities (Details) - Schedule of VIEs Consolidated Financial Statements - VIE (Yuxing) [Member] - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Jun. 30, 2023
Current Assets          
Cash and cash equivalents $ 230,479   $ 230,479   $ 323,854
Accounts receivable, net 661,761   661,761   283,221
Inventories 23,999,498   23,999,498   24,288,379
Other current assets 143,247   143,247   108,677
Related party receivable     27,560
Total Current Assets 25,034,985   25,034,985   25,031,691
Plant, Property and Equipment, Net 5,821,031   5,821,031   5,887,278
Other assets 10,025   10,025   9,784
Intangible Assets, Net 7,371,378   7,371,378   7,294,729
Total Assets 38,237,419   38,237,419   38,223,482
Current Liabilities          
Accounts payable 12,821   12,821   12,512
Customer deposits 50,187   50,187   62,134
Accrued expenses and other payables 290,365   290,365   282,968
Amount due to related parties 40,566,777   40,566,777   39,346,051
Total Current Liabilities 40,920,150   40,920,150   39,703,665
Total Liabilities 40,920,150   40,920,150   39,703,665
Stockholders’ equity (2,682,731)   (2,682,731)   (1,480,183)
Total Liabilities and Stockholders’ Equity 38,237,419   38,237,419   $ 38,223,482
Revenue (2,452,187) $ (2,846,739) 4,794,904 $ 5,717,240  
Expenses (3,750,478) (2,564,149) 5,938,924 5,223,064  
Net income $ 1,298,291 $ (282,590) $ (1,144,020) $ 494,176  
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