Intangible Assets and Digital Assets

3 Months Ended

Sep. 30, 2023

Intangible Assets [Abstract]

INTANGIBLE ASSETS AND DIGITAL ASSETS

NOTE 6 – INTANGIBLE ASSETS AND DIGITAL ASSETS

Intangible assets consisted of the following:

	September 30,		June 30,
	2023		2023
Land use rights, net	$	7,767,607	$	7,862,624
Technology patent, net		-		-
Customer relationships, net		-		-
Non-compete agreement		-		-
Trademarks		5,672,051		5,701,011
Total	$	13,439,658	$	13,563,635

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 $10,033,649). 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 $143,400). 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 $998,787). The intangible asset is being amortized over the grant period of 50 years.

The Land Use Rights consisted of the following:

	September 30,			June 30,
	2023			2023
Land use rights	$	11,032,436			11,088,765
Less: accumulated amortization		(3,264,829	)		(3,226,141	)
Total land use rights, net	$	7,767,607			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 humic acid. The fair value of the related intangible asset was determined to be the respective cost of RMB 5,875,068 (or $805,472) 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 of the acquired technology patent was estimated to be RMB9,200,000 (or $1,261,320) and is amortized over the remaining useful life of six years using the straight-line method. As of September 30, 2023, this technology patent is fully amortized.

The technology know-how consisted of the following:

	September 30,			June 30,
	2023			2023
Technology know-how	$	2,066,792		$	2,077,344
Less: accumulated amortization		(2,066,792	)		(2,077,344	)
Total technology know-how, net	$	-		$	-

CUSTOMER RELATIONSHIPS

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value of the acquired customer relationships was estimated to be RMB65,000,000 (or $8,911,500) and is amortized over the remaining useful life of ten years.

	September 30,			June 30,
	2023			2023
Customer relationships	$	8,911,500		$	8,957,000
Less: accumulated amortization		(8,911,500	)		(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 of the acquired non-compete agreement was estimated to be RMB1,320,000 (or $180,972) and is amortized over the remaining useful life of five years using the straight-line method.

	September 30,			June 30,
	2023			2023
Non-compete agreement	$	180,972		$	181,896
Less: accumulated amortization		(180,972	)		(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 of the acquired trademarks was estimated to be RMB41, 371,630 (or $5,672,051) and is subject to an annual impairment test.

AMORTIZATION EXPENSE

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

Twelve Months Ended on September 30,	Expense ($)
2024		286,798
2025		247,300
2026		228,983
2027		220,306
2028		220,306

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 September 30, 2023, the company held digital assets with amount of $41,564.