Restricted Net Assets

12 Months Ended

Jun. 30, 2023

Restricted Net Assets [Abstract]

RESTRICTED NET ASSETS

NOTE 18 – RESTRICTED NET ASSETS

The Company’s operations are primarily conducted through its PRC subsidiaries, which can only pay dividends out of their retained earnings determined in accordance with the accounting standards and regulations in the PRC and after it has met the PRC requirements for appropriation to statutory reserves. In addition, the Company’s businesses and assets are primarily denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. These currency exchange control procedures imposed by the PRC government authorities may restrict the ability of the Company’s PRC subsidiaries to transfer their net assets to the Parent Company through loans, advances or cash dividends.

The Company’s PRC subsidiaries net assets as of June 30, 2023 and 2022 exceeded 25% of the Company’s consolidated net assets. Accordingly, condensed Parent Company financial statements have been prepared in accordance with Rule 5-04 and Rule 12-04 of SEC Regulation S-X, and they are as follows.

Parent Company Financial Statements

PARENT COMPANY FINANCIAL INFORMATION OF CHINA GREEN AGRICULTURE, INC.

Condensed Balance Sheets

	As of June 30,
	2023			2022
ASSETS
Current Assets:
Cash and cash equivalents	$	49,598		$	52,485
Other current assets		169,071			169,071
Total Current Assets		218,668			221,555
Long-term equity investment		139,569,715			146,457,664
Total long-term assets		139,569,715			146,457,664
Total Assets	$	139,788,383		$	146,679,219
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	214,520		$	214,520
Amount due to related parties		4,445,449			4,105,449
Other payables and accrued expenses		9,760,556			7,588,486
Total Current Liabilities		14,420,526			11,908,455
Stockholders’ Equity
Common stock, $.001 par value, 115,197,165 shares authorized, 13,380,914 and 12,141,467 shares issued and outstanding as of June 30, 2023 and June 30, 2022, respectively		13,381			12,141
Additional paid in capital		242,090,576			224,676,686
Accumulated other comprehensive loss		(26,950,493	)		(13,414,442	)
Retained earnings		(89,785,607	)		(76,503,621	)
Total Stockholders’ Equity		125,367,857			134,770,764
Total Liabilities and Stockholders’ Equity	$	139,788,383		$	146,679,219

Condensed Statements of Operations

	Year ended June 30,
	2023			2022
Revenue	$	-		$	-
General and administrative expenses		3,173,034			679,326
Interest income		1,076			4,513
Provision for tax		-			(1,291,828	)
Equity investment in subsidiaries		(10,110,028	)		(98,981,348	)
Net income	$	(13,281,986	)	$	(98,364,333	)

Condensed Statements of Cash Flows

	Year Ended June 30,
	2023			2022
Net cash used in operating activities	$	(17,100,265	)	$	(54,476,955	)
Net cash provided by investing activities		2,001,000			-
Net cash provided by financing activities		17,097,130			54,454,275
Cash and cash equivalents, beginning balance		52,484			75,165
Cash and cash equivalents, ending balance	$	2,050,350		$	52,484

Notes to Condensed Parent Company Financial Information

As of June 30, 2023, and 2022, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except as separately disclosed in the Consolidated Financial Statements, if any. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.