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Intangible Assets | 6 Months Ended
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Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
INTANGIBLE ASSETS | NOTE 6 – INTANGIBLE ASSETS Intangible assets consisted of the following:
|  | December 31, |  |  | June 30, |
|  | 2022 |  |  | 2022 |
Land use rights, net |  | $ | 8,384,158 |  |  | $ | 8,758,704 |
Technology patent, net |  |  | - |  |  |  | - |
Customer relationships, net |  |  | - |  |  |  | - |
Non-compete agreement |  |  | - |  |  |  | - |
Trademarks |  |  | 5,994,749 |  |  |  | 6,176,784 |
Total |  | $ | 14,378,907 |  |  | $ | 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 $10,604,491). 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 $151,558). 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 $1,055,611). 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, |
|  | 2022 |  |  | 2022 |
Land use rights |  | $ | 11,660,102 |  |  |  | 12,014,170 |
Less: accumulated amortization |  |  | (3,275,944 | ) |  |  | (3,255,466 | )
Total land use rights, net |  | $ | 8,384,158 |  |  |  | 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 $851,297) 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 $1,333,080) and is amortized over the remaining useful life of six years using the straight-line method. As of December 31, 2022, this technology patent is fully amortized. The technology know-how consisted of the following:
|  | December 31, |  |  | June 30, |
|  | 2022 |  |  | 2022 |
Technology know-how |  | $ | 2,184,377 |  |  | $ | 2,250,708 |
Less: accumulated amortization |  |  | (2,184,377 | ) |  |  | (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 $9,418,500) and is amortized over the remaining useful life of ten years.
|  | December 31, |  |  | June 30, |
|  | 2022 |  |  | 2022 |
Customer relationships |  | $ | 9,418,500 |  |  | $ | 9,704,500 |
Less: accumulated amortization |  |  | (9,418,500 | ) |  |  | (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 $191,268) and is amortized over the remaining useful life of five years using the straight-line method.
|  | December 31, |  |  | June 30, |
|  | 2022 |  |  | 2022 |
Non-compete agreement |  | $ | 191,268 |  |  | $ | 197,076 |
Less: accumulated amortization |  |  | (191,268 | ) |  |  | (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 $5,994,749) and is subject to an annual impairment test. AMORTIZATION EXPENSE Estimated amortization expenses of intangible assets for the next five twelve months periods ended December 31, are as follows:
Twelve Months Ended on December 31, |  | Expense ($) |
2023 |  |  | 400,225 |
2024 |  |  | 282,563 |
2025 |  |  | 261,370 |
2026 |  |  | 234,878 |
2027 |  |  | 232,840 |

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