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Concentrations and Litigation
9 Months Ended
Mar. 31, 2020
Risks and Uncertainties [Abstract]  
CONCENTRATIONS AND LITIGATION

NOTE 13 – CONCENTRATIONS AND LITIGATION

 

Market Concentration

 

All the Company's revenue-generating operations are conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC's economy.

 

The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other things, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by, among other things, changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation.

 

Vendor and Customer Concentration

 

None of the vendors accounted over 10% of the Company's purchase of raw materials and supplies for the nine months ended March 31, 2020.

 

There were three vendors, from which the Company purchased 14.2%, 13.7% and 11.8% of its raw materials for fertilizer manufacturing during the year ended March 31, 2019. Total purchase from these three vendors was amounted to $58,658,521 as March 31, 2019. 

 

There were two customers, from which the Company sold 10.6% and 10.4% of its products during the year ended March 31, 2020. Total sales from these two customers was amounted to $33,957,707 as March 31, 2020. 

 

No customer accounted for over 10% of the Company's sales for the Nine Months Ended March 31, 2019.

 

Litigation

 

On October 9, 2019, a lawsuit was filed against the Company and certain of our officers in the United States District Court for the District of Nevada (the "Nevada Federal Court") by Plaintiff Glenn Little. The complaint alleges breach of fiduciary duty and shareholder oppression. The Company believes the action is without merit and vigorously opposed it.

 

On December 31, 2019, the lawsuit was dismissed.