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Intangible Assets | 6 Months Ended
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Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
INTANGIBLE ASSETS | NOTE 6 – INTANGIBLE ASSETS Intangible assets consisted of the following:
|  | December 31, |  |  | June 30, |
|  | 2020 |  |  | 2020 |
Land use rights, net |  | $ | 9,447,307 |  |  | $ | 8,850,905 |
Technology patent, net |  |  | 2,006 |  |  |  | 2,069 |
Customer relationships, net |  |  | 832,443 |  |  |  | 908,933 |
Non-compete agreement |  |  | 144,713 |  |  |  | 230,669 |
Trademarks |  |  | 6,227,100 |  |  |  | 5,759,049 |
Total |  | $ | 16,653,569 |  |  | $ | 15,751,625 |
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 $11,197,289). 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 $160,030). 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 $1,114,620). 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, |
|  | 2020 |  |  | 2020 |
Land use rights |  | $ | 12,471,938 |  |  |  | 11,534,506 |
Less: accumulated amortization |  |  | (3,024,631 | ) |  |  | (2,683,601 | )
Total land use rights, net |  | $ | 9,447,307 |  |  |  | 8,850,905 |
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 $898,885) 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 $1,407,600) and is amortized over the remaining useful life of six years using the straight-line method. As of June 30, 2020, this technology patent is fully amortized. The technology know-how consisted of the following:
|  | December 31, |  |  | June 30, |
|  | 2020 |  |  | 2020 |
Technology know-how |  | $ | 2,311,022 |  |  | $ | 2,137,317 |
Less: accumulated amortization |  |  | (2,309,016 | ) |  |  | (2,135,248 | )
Total technology know-how, net |  | $ | 2,006 |  |  | $ | 2,069 |
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 $9,945,000) and is amortized over the remaining useful life of ten years. On June 30, 2016 and January 1, 2017, the Company acquired the sales VIE Companies. The fair value of the acquired customer relationships was estimated to be RMB16,472,179 (or $2,520,243) and is amortized over the remaining useful life of seven to ten years.
|  | December 31, |  |  | June 30, |
|  | 2020 |  |  | 2020 |
Customer relationships |  | $ | 12,198,629 |  |  | $ | 11,281,739 |
Less: accumulated amortization |  |  | (11,366,186 | ) |  |  | (10,372,806 | )
Total customer relationships, net |  | $ | 832,443 |  |  | $ | 908,933 |
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 $201,960) and is amortized over the remaining useful life of five years using the straight-line method. On June 30, 2016 and January 1, 2017, the Company acquired the sales VIE Companies. The fair value of the acquired non-compete agreements was estimated to be RMB6,150,683 (or $941,054) and is amortized over the remaining useful life of five years using the straight-line method.
|  | December 31, |  |  | June 30, |
|  | 2020 |  |  | 2020 |
Non-compete agreement |  | $ | 1,249,007 |  |  | $ | 1,155,127 |
Less: accumulated amortization |  |  | (1,104,294 | ) |  |  | (924,458 | )
Total non-compete agreement, net |  | $ | 144,713 |  |  | $ | 230,669 |
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 RMB40,700,000 (or $6,227,100) and is subject to an annual impairment test. AMORTIZATION EXPENSE Estimated amortization expenses of intangible assets for the next five twelve months periods ended December 31, are as follows:
Twelve Months Ended on December 31, |  | Expense ($) |
2021 |  |  | 768,524 |
2022 |  |  | 594,402 |
2023 |  |  | 519,970 |
2024 |  |  | 381,232 |
2025 |  |  | 355,516 |

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