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Intangible Assets | 6 Months Ended
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Dec. 31, 2016
Intangible Assets [Abstract] |
INTANGIBLE ASSETS | NOTE 5 - INTANGIBLE ASSETS Intangible assets consisted of the following:
|  | December 31, |  |  | June 30, |
|  | 2016 |  |  | 2016 |
Land use rights, net |  | $ | 9,816,682 |  |  | $ | 10,381,215 |
Technology patent, net |  |  | 4,053 |  |  |  | 4,462 |
Customer relationships, net |  |  | 5,515,101 |  |  |  | 6,403,343 |
Non-compete agreement |  |  | 797,090 |  |  |  | 925,678 |
Trademarks |  |  | 5,860,515 |  |  |  | 6,125,350 |
Total |  | $ | 21,993,441 |  |  | $ | 23,840,048 |
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 $10,538,113). 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 $150,609). 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 $1,049,003). 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, |
|  | 2016 |  |  | 2016 |
Land use rights |  | $ | 11,737,725 |  |  | $ | 12,268,150 |
Less: accumulated amortization |  |  | (1,921,043 | ) |  |  | (1,886,935 | )
Total land use rights, net |  | $ | 9,816,682 |  |  | $ | 10,381,215 |
TECHNOLOGY PATENT On August 16, 2001, Jinong was issued a technology patent related to a proprietary formula used in the production of humid acid. The fair value of the related intangible asset was determined to be the respective cost of RMB 5,875,068 (or $845,969) and is being amortized over the patent period of 10 years using the straight line method. This technology patent has been fully amortized. On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value on the acquired technology patent was estimated to be RMB9,200,000 (or $1,324,736) and is amortized over the remaining useful life of six years using the straight line method. The technology know-how consisted of the following:
|  | December 31, |  |  | June 30, |
|  | 2016 |  |  | 2016 |
Technology know-how |  | $ | 2,174,973 |  |  | $ | 2,273,260 |
Less: accumulated amortization |  |  | (2,170,920 | ) |  |  | (2,268,798 | )
Total technology know-how, net |  | $ | 4,053 |  |  | $ | 4,462 |
CUSTOMER RELATIONSHIP On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value on the acquired customer relationships was estimated to be RMB65,000,000 (or $9,360,000) and is amortized over the remaining useful life of ten years. On June 30, 2016, the Company acquired the VIE Companies. The fair value on the acquired customer relationships was estimated to be RMB16,442,531 (or $2,367,609) and is amortized over the remaining useful life of seven to ten years.
|  | December 31, |  |  | June 30, |
|  | 2016 |  |  | 2016 |
Customer relationships |  | $ | 11,727,154 |  |  | $ | 12,257,100 |
Less: accumulated amortization |  |  | (6,212,053 | ) |  |  | (5,853,757 | )
Total customer relationships, net |  | $ | 5,515,101 |  |  | $ | 6,403,343 |
NON-COMPETE AGREEMENT On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value on the acquired non-compete agreement was estimated to be RMB1,320,000 (or $190,080) and is amortized over the remaining useful life of five years using the straight line method. On June 30, 2016, the Company acquired the VIE Companies. The fair value on the acquired non-compete agreements were estimated to be RMB6,150,683 (or $885,698) and is amortized over the remaining useful life of five years using the straight line method.
|  | December 31, |  |  | June 30, |
|  | 2016 |  |  | 2016 |
Non-compete agreement |  | $ | 1,075,726 |  |  | $ | 1,124,338 |
Less: accumulated amortization |  |  | (278,636 | ) |  |  | (198,660 | )
Total non-compete agreement, net |  | $ | 797,090 |  |  | $ | 925,678 |
TRADEMARKS On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired trademarks was estimated to be RMB40,700,000 (or $5,860,515) and is subject to an annual impairment test. AMORTIZATION EXPENSE Estimated amortization expenses of intangible assets for the next five twelve months periods ended December 31, 2016, are as follows:
Years Ending December 31, |  | Expense ($) |
2017 |  |  | 1,635,094 |
2018 |  |  | 1,635,094 |
2019 |  |  | 1,635,094 |
2020 |  |  | 1,635,094 |
2021 |  |  | 1,078,551 |

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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