Intangible Assets and Digital Assets

12 Months Ended

Jun. 30, 2023

Intangible Assets and Digital Assets [Abstract]

INTANGIBLE ASSETS AND DIGITAL ASSETS

NOTE 6 – INTANGIBLE ASSETS AND DIGITAL ASSETS

Intangible assets consisted of the following:

	June 30,		June 30,
	2023		2022
Land use rights, net	$	7,862,624	$	8,758,704
Technology patent, net		-		-
Customer relationships, net		-		-
Non-compete agreement		-		-
Trademarks		5,701,011		6,176,784
Total	$	13,563,635	$	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 $10,084,895). 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 $144,132). 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 $1,003,887). The intangible asset is being amortized over the grant period of 50 years.

The Land Use Rights consisted of the following:

	June 30, 2022			Foreign Currency Adjustment			Amortization/ Subtraction		June 30, 2023
Land use rights	$	12,014,170			(925,405	)		-		11,088,765
Less: accumulated amortization		(3,255,466	)					29,325		(3,226,141	)
Total land use rights, net	$	8,758,704			(925,405	)		29,325		7,862,624

TECHNOLOGY PATENT

On August 16, 2001, Jinong was issued a technology patent related to a proprietary formula used in the production of humid acid. The fair value of the related intangible asset was determined to be the respective cost of RMB5,875,068 (or $809,584) 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 on the acquired technology patent was estimated to be RMB9,200,000 (or $1,267,760) and is amortized over the remaining useful life of six years using the straight-line method. As of June 30, 2023, this technology patent is fully amortized.

The technology know-how consisted of the following:

	June 30,			Foreign Currency			June 30,
	2022			Adjustment			2023
Technology know-how	$	2,250,708			(173,363	)	$	2,077,344
Less: accumulated amortization		(2,250,708	)		173,363			(2,077,344	)
Total technology know-how, net	$	-			-		$	-

CUSTOMER RELATIONSHIP

On July 2, 2010, the Company acquired Gufeng and its wholly owned subsidiary Tianjuyuan. The fair value on the acquired customer relationships was estimated to be RMB65,000,000 (or $8,957,000) and is amortized over the remaining useful life of ten years. As of June 30, 2023, this customer relationship is fully amortized.

	June 30,			Foreign Currency			June 30,
	2022			Adjustment			2023
Customer relationships	$	9,704,500			(747,500	)	$	8,957,000
Less: accumulated amortization		(9,704,500	)		747,500			(8,957,000	)
Total customer relationships, net	$	-			-		$	-

NON-COMPETE AGREEMENT

On July 2, 2010, the Company acquired Gufeng and its wholly owned subsidiary Tianjuyuan. The fair value on the acquired non-compete agreement was estimated to be RMB1,320,000 (or $181,896) and is amortized over the remaining useful life of five years using the straight-line method. As of June 30, 2023, this non-compete agreement is fully amortized.

	June 30,			Foreign Currency			June 30,
	2022			Adjustment			2023
Non-compete agreement	$	197,076			(15,180	)	$	181,896
Less: accumulated amortization		(197,076	)		15,180			(181,896	)
Total non-compete agreement, net	$	-			-		$	-

TRADEMARKS

On July 2, 2010, the Company acquired Gufeng and its wholly owned subsidiary Tianjuyuan. The preliminary fair value on the acquired trademarks and brand names was estimated to be RMB41,371,630 (or $5,701,011) and is subject to an annual impairment test.

	June 30,			Foreign Currency			June 30,
	2022			Adjustment			2023
Trademarks	$	6,232,670			(480,078	)	$	5,752,592
Less: accumulated amortization		(55,886	)		4,305			(51,581	)
Total trademarks, net	$	6,176,784			(475,773	)	$	5,701,011

AMORTIZATION EXPENSE

Estimated amortization expenses of intangible assets for the next five twelve months periods ended June 30, are as follows:

Years Ending June 30,	Expense ($)
2024		307,807
2025		248,563
2026		236,935
2027		221,431
2028		221,431

DIGITAL ASSETS

On March 13, 2023, the Company established Antaeus Tech Inc. (“Antaeus”) in the State of Delaware. In April 2023, Antaeus started to purchase digital assets mining machines and to mine bitcoin in West Texas. As of June 30, 2023, the company held digital assets with amount of $210,342.