Amount Due to Related Parties

9 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

AMOUNT DUE TO RELATED PARTIES

NOTE 9 – AMOUNT DUE TO RELATED PARTIES

At the end of December 2015, Yuxing entered into a sales agreement with the Company’s affiliate, 900LH.com Food Co., Ltd. (“900LH.com”, previously announced as Xi’an Gem Grain Co., Ltd) pursuant to which Yuxing is to supply various vegetables to 900LH.com for its incoming seasonal sales at the holidays and year ends (the “Sales Agreement”). The contingent contracted value of the Sales Agreement is RMB25,500,000 (approximately $3,710,250). For the nine months ended March 31, 2023 and 2022, Yuxing has sold approximately 0 and $56,615 products to 900LH.com.

The amount due from 900LH.com to Yuxing was $15,452 and $13,064 as of March 31, 2023 and June 30, 2022, respectively.

As of March 31, 2023, and June 30, 2022, the amount due to related parties was $5,481,043 and $5,192,496, respectively.  As of March 31, 2023, and June 30, 2022, $1,018,500 and $1,045,100, respectively were amounts that Gufeng borrowed from a related party, Xi’an Techteam Science& Technology Industry (Group) Co. Ltd., a company controlled by Mr. Zhuoyu Li, Chairman and CEO of the Company, representing unsecured, non-interest-bearing loans that are due on demand.  These loans are not subject to written agreements. As of March 31, 2023, and June 30, 2022, $4,425,449 and $4,105,449, respectively were advances from Mr. Zhuoyu Li, Chairman and CEO of the Company. The advances were unsecured and non-interest-bearing.

As of March 31, 2023, and June 30, 2022, the Company’s subsidiary, Jinong, owed 900LH.com $7,355 and $11,431, respectively.

On July 1, 2022, Jinong signed an office lease with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. 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, 2022 with monthly rent of RMB28,000 (approximately $4,074).