GINSENG CROPS

12 Months Ended

Jun. 30, 2015

Agriculture [Abstract]

GINSENG CROPS

NOTE G - GINSENG CROPS

The Company’s business, prior to June 30, 2009, was primarily to harvest and sell fresh and dried Ginseng. The growth period takes approximately 5 to 6 years before harvest can commence and up to 8 years for improved harvest and seedling yields. The Company is changing its business model to utilize the harvested Ginseng to manufacture Ginseng juice and other Ginseng beverages. It commenced the juice operation in August 2011. The Company plants selected areas each year and tracks the costs expended each year by planting area. The Chinese government owns all the land in China.

Currently, the Company has land grants from the Chinese government for approximately 1,500 hectares of land (approximately 3,705 acres) to grow Ginseng which were awarded in April and May 2005. These grants are for 20 years and the management of the Company believes that the grants will be renewed as the grants expire in different areas. However, there are no assurances that the Chinese government will continue to renew these grants in the future. The planting of new Ginseng is dependent upon the Company’s cash flow and its ability to raise working capital. During the year ended June 30, 2014, the Forestry Bureau governing one of the farms approximating 700 hectares (1,730 acres) of land leased by Yanbian Huaxing notified the Company that this lease in no longer recognized. As a result, the Company is prevented from developing and planting ginseng in undeveloped areas of the farm.

The Company has planted approximately 287,984 square meters of land. The Company plans to plant, over the next 5 years, 100,000 square meters, representing approximately 20,000 square meters per year. The Company plans on harvesting the existing 2,664 square meters of ginseng in 2017.

An analysis of ginseng crop costs is as follows for each of the applicable periods.:

	June 30,
	2015			2014
Beginning Crop Costs	$	6,721		$	681,967
Currency Conversion Adjustment to Beginning Balance		-			-
Capitalized Costs During Year:
Wages		-			21,162
Fertilizer		-			-
Ginseng Shelf		-			-
Field clearing and cultivation		-			-
Farmer lease fee net of management fee		-			-
Depreciation		-			996
Other		-			3,399
Total Capitalized Costs		-			25,557
Less:
Impairment of ginseng crops		(6,721	)		-
Cost of crops harvested		-			(700,803	)
		(6,721	)		(700,803	)
Ending Crop Costs		-			6,721
Less: Current portion		-			-
Non-Current Portion of Crop Costs	$	-		$	6,721

The cost of harvest is calculated by reference to the planting area and the detailed costs maintained for each planting area. Based upon the square meters planted by area, a square meter cost is calculated and applied to the square meters harvested, rendering a cost of harvest.

For each financial reporting period, the Ginseng crop harvested is valued at net realizable value. If the net realizable value is lower than carrying value, an impairment charge is made for the difference.