Intangible Assets

6 Months Ended

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