Property, Plant and Equipment, net

3 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, net

14. Property, Plant and Equipment, net

As of September 30, 2021 and June 30, 2021, property, plant and equipment consisted of the following:

Fixed Assets	September 30, 2021			June 30, 2021
Office and equipment	$	820,149		$	820,149
Motor vehicles		165,579			166,079
Land		2,554,767			1,922,376
Building		197,609			—
Leasehold Improvement		365,620			365,620
Total		4,103,725			3,274,224
Less: accumulated depreciation		(566,523	)		(524,884	)
Property, Plant and Equipment, net	$	3,537,202		$	2,749,340

For the periods ended September 30, 2021 and June 30, 2021, depreciation expenses amounted to $41,639 and $105,982, respectively.

The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the periods ended September 30, 2021 and June 30, 2021.

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

September 30, 2021