Property, Plant and Equipment, net

9 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, net

13. Property, Plant and Equipment, net

As of March 31, 2022 and June 30, 2021, property, plant and equipment consisted of the following:

Fixed Assets	March 31, 2022			June 30, 2021
Office and equipment	$	820,149		$	820,149
Motor vehicles		421,277			166,079
Land		2,554,767			1,922,376
Building		197,609			—
Leasehold Improvement		478,904			365,620
Total		4,472,706			3,274,224
Less: accumulated depreciation		(682,243	)		(524,884	)
Property, Plant and Equipment, net	$	3,790,462		$	2,749,340

For the periods ended March 31, 2022 and June 30, 2021, depreciation expenses amounted to $157,359 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 March 31, 2022 and June 30, 2021.

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

March 31, 2022