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BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY (Tables)

12 Months Ended

Jun. 30, 2023

BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY

Summary of fair values of the identifiable assets and liabilities

​

​	​	​	​	​	​	​
​		RMB			US Dollars
Cash		¥	471,843	​	$	65,070
Accounts receivable, net		​	831,049	​		114,607
Other receivables, net		​	144,285	​		19,898
Contract costs, net		​	75,250	​		10,377
Prepaid expenses		​	91,132	​		12,568
Property and equipment, net		​	118,130	​		16,291
Intercompany receivables*		​	6,850,000	​		944,658
Intangible assets- customer relationship		​	7,000,000	​		965,344
Goodwill		​	6,996,895	​		964,916
Accounts payable		​	(1,032,078)	​		(142,330)
Other payables		​	(1,273,182)	​		(175,580)
Other payable- related parties		​	(479,959)	​		(66,189)
Deferred revenue		​	(39,786)	​		(5,487)
Accrued payroll and employees’ welfare		​	(1,629,519)	​		(224,721)
Taxes payable		​	(64,253)	​		(8,861)
Deferred tax liability		​	(1,050,000)	​		(144,801)
Total	​	¥	17,009,807	​	$	2,345,760
​		​	​	​		​
Cash considerations		​	—	​	​	—
Deemed equity consideration to acquire 8% equity interest in FGS	​	​	1,689,807	​	​	233,035
Fair value of previously held equity interest		​	30,530,000	​		4,210,280
Non-controlling interest		​	34,790,000	​		4,797,760
Capital contribution receivable due from non-controlling Interest		​	(50,000,000)	​		(6,895,315)
Total		¥	17,009,807	​	$	2,345,760

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

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

The identifiable goodwill acquired and the carrying value consisted of the following:

​

​	​	​	​	​	​	​	​	​	​
​		June 30,			June 30,			June 30,
​	​	2022		​	2023		​	2023
​		RMB		​	RMB			US Dollars
Goodwill	​	¥	6,996,895	​	¥	6,996,895	​	$	964,916
Less: impairment for goodwill	​	​	(2,266,893)	​	​	(6,996,895)	​		(964,916)
Goodwill, net	​	¥	4,730,002	​	¥	—	​	$	—

​

The fair value of identified intangible assets, which is customer relationship, and its estimated useful lives as of June 30, 2023 is as follows:

​	​	​	​	​	​	​	​	​
​		​	​	​	​	​		Average
​	​	​	​	​	​	​	​	Useful Life
​	​	Fair Value					​	(in Years)
​		RMB			US Dollars			​
Intangible assets - customer relationship		¥	7,000,000	​	$	965,344		10
Less: accumulated amortization	​	​	(1,750,000)	​	​	(241,336)	​	​
Less: impairment	​	​	(5,250,000)	​	​	(724,008)	​	​
Intangible assets - customer relationship, net	​	¥	—	​	$	—	​	​

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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482665/350-30-50-1

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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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479328/805-10-50-3

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-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
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