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Intangible Assets | 3 Months Ended
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Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
INTANGIBLE ASSETS | NOTE 6 – INTANGIBLE ASSETS Intangible assets consisted of the following:
|  | September 30, |  |  | June 30, |
|  | 2022 |  |  | 2022 |
Land use rights, net |  | $ | 8,168,530 |  |  | $ | 8,758,704 |
Technology patent, net |  |  | - |  |  |  | - |
Customer relationships, net |  |  | - |  |  |  | - |
Non-compete agreement |  |  | - |  |  |  | - |
Trademarks |  |  | 5,800,302 |  |  |  | 6,176,784 |
Total |  | $ | 13,968,832 |  |  | $ | 14,935,488 |
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 $10,260,522). 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 $146,642). 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 $1,021,371). The intangible asset is being amortized over the grant period of 50 years. The Land Use Rights consisted of the following:
|  | September 30, |  |  | June 30, |
|  | 2022 |  |  | 2022 |
Land use rights |  | $ | 11,281,893 |  |  |  | 12,014,170 |
Less: accumulated amortization |  |  | (3,113,363 | ) |  |  | (3,255,466 | )
Total land use rights, net |  | $ | 8,168,530 |  |  |  | 8,758,704 |
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 $823,685) 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 $1,289,840) and is amortized over the remaining useful life of six years using the straight-line method. As of September 30, 2022, this technology patent is fully amortized. The technology know-how consisted of the following:
|  | September 30, |  |  | June 30, |
|  | 2022 |  |  | 2022 |
Technology know-how |  | $ | 2,113,525 |  |  | $ | 2,250,708 |
Less: accumulated amortization |  |  | (2,113,525 | ) |  |  | (2,250,708 | )
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 $9,113,000) and is amortized over the remaining useful life of ten years.
|  | September 30, |  |  | June 30, |
|  | 2022 |  |  | 2022 |
Customer relationships |  | $ | 9,113,000 |  |  | $ | 9,704,500 |
Less: accumulated amortization |  |  | (9,113,000 | ) |  |  | (9,704,500 | )
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 $185,064) and is amortized over the remaining useful life of five years using the straight-line method.
|  | September 30, |  |  | June 30, |
|  | 2022 |  |  | 2022 |
Non-compete agreement |  | $ | 185,064 |  |  | $ | 197,076 |
Less: accumulated amortization |  |  | (185,064 | ) |  |  | (197,076 | )
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 $5,800,303) and is subject to an annual impairment test. AMORTIZATION EXPENSE Estimated amortization expenses of intangible assets for the next five twelve months periods ended September 30, are as follows:
Twelve Months Ended on September 30, |  | Expense ($) |
2023 |  |  | 419,632 |
2024 |  |  | 293,283 |
2025 |  |  | 252,892 |
2026 |  |  | 234,160 |
2027 |  |  | 225,288 |

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