Commitments and Contingencies

9 Months Ended

Mar. 31, 2017

Commitments and Contingencies [Abstract]

NOTE 14 - COMMITMENTS AND CONTINGENCIES

On March 27, 2017, Jinong entered into lease agreement for 1550 mu (approximately 255 acres) paddy field, 1860 mu (approximately 306 acres) cultivated dry field, and approximately 2660 hectares uplands with the local authority at Shiquan County, Shaanxi Province, for a term of 50 years, from April 1, 2017 to March 31, 2066. The leasing fees for every ten-year period are approximately $3,338 per mu for paddy field, $1,451 per mu for cultivated dry field, $4,360 per hectare for uplands. Such ten-year fees become due prior to the beginning of every ten-year period. Jinong had paid half of the first ten-year period’s leasing fee, with an amount of RMB 67.1 million (approximately $9.7 million) by April 1, 2017, and the second half of the ten-year fee will be due by May 15, 2017.

On June 29, 2016, Jinong signed an office lease with Kingtone Information. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provides for a two-year term effective as of July 1, 2016 with monthly rent of $3,552 (RMB24,480).

In January 2008, Jintai signed a ten-year land lease with Xi’an Jinong Hi-tech Agriculture Demonstration Zone for a monthly rent of $754 (RMB5,200).

In February 2004, Tianjuyuan signed a fifty-year lease with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District, at a monthly rent of $429 (RMB2,958).

Accordingly, the Company recorded an aggregate of $42,626 and $16,896 as rent expenses for the nine months ended March 31, 2017 and 2016, respectively.

Lease expenses for the next five twelve month periods ending March 31, are as follows:

Twelve Months ending March 31,
2018	$	2,004,990
2019		2,004,990
2020		2,004,990
2021		2,004,990
2022		2,004,990