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BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY (Tables)

12 Months Ended

Jun. 30, 2022

BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY

Summary of fair values of the identifiable assets and liabilities

​

​	​	​	​	​	​	​
​		RMB			U.S. Dollars
Cash		¥	471,843	​	$	70,448
Trade accounts receivable, net		​	831,049	​		124,079
Other receivables, net		​	144,285	​		21,542
Contract costs, net		​	75,250	​		11,235
Prepaid expenses		​	91,132	​		13,606
Property and equipment, net		​	118,130	​		17,637
Intercompany receivables*		​	6,850,000	​		1,022,736
Intangible assets- customer relationship		​	7,000,000	​		1,045,131
Goodwill		​	6,996,895	​		1,044,668
Trade accounts payable		​	(1,032,078)	​		(154,094)
Other payables		​	(1,273,182)	​		(190,092)
Other payable- related parties		​	(479,959)	​		(71,660)
Deferred revenue		​	(39,786)	​		(5,940)
Accrued payroll and employees’ welfare		​	(1,629,519)	​		(243,295)
Taxes payable		​	(64,253)	​		(9,593)
Deferred tax liability		​	(1,050,000)	​		(156,768)
Total	​	¥	17,009,807	​	$	2,539,640
​		​	​	​		​
Cash considerations		​	—	​	​	—
Deemed equity consideration to acquire 8% equity interest in FGS	​	​	1,689,807	​	​	252,296
Fair value of previously held equity interest		​	30,530,000	​		4,558,266
Non-controlling interest		​	34,790,000	​		5,194,303
Capital contribution receivable due from non-controlling Interest		​	(50,000,000)	​		(7,465,225)
Total		¥	17,009,807	​	$	2,539,640

*Intercompany receivables from Nanjing Recon and BHD are eliminated upon consolidation.

Schedule of fair value of goodwill acquired and carrying value, customer relationship and its estimated useful lives

The identifiable goodwill acquired and the carrying value as of June 30, 2022 is as follows:

​

​	​	​	​	​	​	​
​		Fair Value
​		RMB			U.S. Dollars
Goodwill	​	¥	6,996,895	​	$	1,044,668
Less: impairment	​	​	(2,266,893)	​		(338,457)
The carrying value of goodwill as of June 30,2022	​	​	4,730,002	​		706,211

​

The fair value of identified intangible assets, which is customer relationship, and its estimated useful lives is as follows:

​	​	​	​	​	​	​	​	​
​		​	​	​	​	​		Average
​	​	​	​	​	​	​	​	Useful Life
​	​	Fair Value					​	(in Years)
​		RMB			U.S. Dollars			​
Intangible assets - customer relationship		¥	7,000,000	​	$	1,045,132		10
Less: accumulated amortization	​	​	(1,050,000)	​	​	(156,770)	​	​
Total intangible assets, net as of June 30,2022	​	¥	5,950,000	​	$	888,362	​	​

X

- Definition

Tabular disclosure of the characteristics, including initial carrying value, residual amount, weighted average useful life, of finite-lived intangible assets acquired during the period by major class. A major class is composed of intangible assets that can be grouped together because they are similar, either by nature or by their use in the operations of the company.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 1
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- Definition

Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts.

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-Name Accounting Standards Codification
-Topic 805
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