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LEASES | 3 Months Ended
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Sep. 30, 2022
Leases |
LEASES | NOTE 11 - LEASES Effective July 1, 2019, the Company adopted the new lease accounting standard using the optional transition method, which allowed it to continue to apply the guidance under the lease standard in effect at the time in the comparative periods presented. In addition, the Company elected the package of practical expedients, which allowed it to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company has also elected the practical expedient, allowing it to not separate the lease and non-lease components for all classes of underlying assets. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities of $3,587,788 and $450,123, respectively, as of July 1, 2019 with no impact on accumulated deficit. Financial position for reporting periods beginning on or after July 1, 2019, are presented under the new guidance, while prior-period amounts are not adjusted and continue to be reported in accordance with previous guidance. The Company leases offices space under non-cancelable operating leases, with terms ranging from one to six years. In addition, the Zhisheng VIEs and Guangyuan entered into several farmland lease contracts with farmer cooperatives to lease farmland in order to plant and grow organic vegetables, fruit, and Chinese yew trees, fast-growing bamboo willows and scenic greening trees. The lease terms vary from 3 years to 24 years. The Company considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of ROU assets and lease liabilities. Lease expenses for lease payment are recognized on a straight-line basis over the lease term. Leases with initial terms of 12 months or less are not recorded on the balance sheet. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing rate. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The table below presents the operating lease related assets and liabilities recorded on the balance sheets. SCHEDULE OF OPERATING LEASE RELATED ASSETS AND LIABILITIES
|  | September 30, 2022 |  |  | June 30, 2022 |
ROU lease assets |  | $ | 1,749,663 |  |  | $ | 2,088,149 |
Operating lease liabilities – current |  |  | 586,553 |  |  |  | 959,909 |
Operating lease liabilities – non-current |  |  | 873,173 |  |  |  | 1,025,967 |
Total operating lease liabilities |  | $ | 1,459,726 |  |  | $ | 1,985,876 |
The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of September 30, 2022 and June 30, 2022: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES
|  | September 30, 2022 |  |  | June 30, 2022 |
Remaining lease term and discount rate: |  |  |  |  |  |  |  |
Weighted average remaining lease term (years) |  |  | 6.00 |  |  |  | 6.88 |
Weighted average discount rate |  |  | 5.53 | % |  |  | 5.30 | %
Rent expenses totaled US$214,440 and US$230,548 for the three months ended September 30, 2022 and 2021, respectively. During the year ended June 30, 2022, the management performed evaluation on the impairment of ROU lease assets, and impairment loss for the ROU lease assets of US$2,268,344 was recorded for the year ended June 30, 2022. Due to the continuous impact from the COVID-19 pandemic, the Company’s Zhisheng VIEs, has not been able to grow and cultivate green agricultural produce on its leased farmland, and based on the management estimation, these farmlands are unlikely to generate enough future profit and cashflow. Therefore, the Company decided to record full impairment of leased farmland during the year ended June 30, 2022. The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2022: SCHEDULE OF MATURITIES OF LEASE LIABILITIES
Remainder of 2023 |  | $ | 544,171 |
2024 |  |  | 555,548 |
2025 |  |  | 170,225 |
2026 |  |  | 21,089 |
2027 |  |  | 21,089 |
Thereafter |  |  | 428,803 |
Total lease payments |  |  | 1,740,925 |
Less: imputed interest |  |  | (281,199 | )
Present value of lease liabilities |  | $ | 1,459,726 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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