XML 25 R14.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
PROPERTY AND EQUIPMENT, NET
9 Months Ended
Mar. 31, 2024
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET

NOTE 8 - PROPERTY AND EQUIPMENT, NET

 

Property and equipment, net consisted of the following:

 

   March 31, 2024   June 30, 2023 
         
Buildings  $6,222,269   $1,064,656 
Machinery and equipment   3,166,302    1,132,064 
Motor vehicles   182,374    195,183 
Office equipment   139,785    142,288 
Fixture and furniture   102,577    - 
Construction in progress   33,240    - 
Farmland leasehold improvements   -    2,898,328 
Subtotal   9,846,547    5,432,519 
Less: accumulated depreciation and amortization   (3,532,298)   (3,437,327)
Less: accumulated impairment for property and equipment   (89,869)   (749,299)
Total property and equipment, net   6,224,380    1,245,893 
Less: property and equipment, net, held for discontinued operations   -    (32,777)
Property and equipment, net held for continuing operations  $6,224,380   $1,213,116 

 

Depreciation and amortization expense charged to the continuing operations was US$355,676 and US$5,022 for the nine months ended March 31, 2024 and 2023, respectively. Depreciation and amortization expense charged to the continuing operations was US$112,487 and US$4,737 for the three months ended March 31, 2024 and 2023, respectively.

 

Depreciation and amortization expense charged to the discontinued operations was US$2,403 and US$180,317 for the nine months ended March 31, 2024 and 2023, respectively. Depreciation and amortization expense charged to the discontinued operations was US$ nil and US$15,931 for the three months ended March 31, 2024 and 2023, respectively.

 

The management performed evaluation on the impairment of property and equipment periodically. Due to the continuous impact from the COVID-19 pandemic, the Company’s Zhisheng VIEs, have not been able to grow and cultivate green agricultural produce on the leased farmlands, and based on the management estimation, these farmlands are unlikely to generate enough future profit and cashflow, hence, the Company decided to record full impairment of such leased farmland. Therefore, farmland leasehold improvements relating to these farmlands were also fully impaired. No impairment loss on property and equipment from the continuing operations and discontinued operations for the nine and three months ended March 31, 2024 and 2023, respectively.

 

 

The Company pledged certain property and equipment for the Company’s bank loans and its related party’s personal loan (see Note 12 and Note 13).

 

Farmland leasehold improvements, net consisted of following:

 

   March 31, 2024   June 30, 2023 
         
Blueberry farmland leasehold improvements  $     -   $2,226,624 
Yew tree planting base reconstruction   -    249,464 
Greenhouse renovation   -    422,240 
Subtotal   -    2,898,328 
Less: accumulated amortization   -    (2,238,484)
Less: impairment for farmland leasehold improvements   -    (659,844)
Total farmland leasehold improvements, net  $-   $-