Restricted Net Assets

12 Months Ended

Jun. 30, 2024

Restricted Net Assets [Abstract]

RESTRICTED NET ASSETS

NOTE 17 – RESTRICTED NET ASSETS

The Company’s operations are primarily conducted through its PRC subsidiaries, which can only pay dividends out of their retained earnings determined in accordance with the accounting standards and regulations in the PRC and after it has met the PRC requirements for appropriation to statutory reserves. In addition, the Company’s businesses and assets are primarily denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. These currency exchange control procedures imposed by the PRC government authorities may restrict the ability of the Company’s PRC subsidiaries to transfer their net assets to the Parent Company through loans, advances or cash dividends.

The Company’s PRC subsidiaries net assets as of June 30, 2024 and 2023 exceeded 25% of the Company’s consolidated net assets. Accordingly, condensed Parent Company financial statements have been prepared in accordance with Rule 5-04 and Rule 12-04 of SEC Regulation S-X, and they are as follows.

Parent Company Financial Statements

PARENT COMPANY FINANCIAL INFORMATION OF CHINA GREEN AGRICULTURE, INC.

Condensed Balance Sheets

	As of June 30,
	2024			2023
Assets
Current assets:
Cash and cash equivalents	$	2,721		$	49,598
Other current assets		169,071			169,071
Total current assets		171,791			218,668
Long-term equity investment		114,953,290			139,569,715
Total long-term assets		114,953,290			139,569,715
Total assets	$	115,125,082		$	139,788,383
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	214,520		$	214,520
Amount due to related parties		4,520,449			4,445,449
Other payables and accrued expenses		10,290,932			9,760,556
Total current liabilities		15,025,901			14,420,526
Shareholders’ equity
Common stock, $.001 par value, 115,197,165 shares authorized, 14,793,538 and 13,380,914 shares issued and outstanding as of June 30, 2024 and June 30, 2023, respectively		14,794			13,381
Additional paid-in capital		244,825,844			242,090,576
Accumulated other comprehensive loss		(26,550,536	)		(26,950,493	)
Retained earnings		(118,190,922	)		(89,785,607	)
Total shareholders’ equity		100,099,180			125,367,857
Total liabilities and shareholders’ equity	$	115,125,082		$	139,788,383

Condensed Statements of Operations

	Year ended June 30,
	2024			2023
Revenue	$	-		$	-
General and administrative expenses		3,854,944			3,173,034
Interest income		12			1,076
Equity investment in subsidiaries		(24,550,383	)		(10,110,028	)
Net loss	$	(28,405,3153	)	$	(13,281,985	)

Condensed Statements of Cash Flows

	Year Ended June 30,
	2024			2023
Net cash used in operating activities	$	(399,789	)	$	(17,100,265	)
Net cash (used in) provided by investing activities		(1,502,600	)		2,001,000
Net cash provided by financing activities		191,000			17,097,130
Cash and cash equivalents, beginning balance		2,050,350			52,484
Cash and cash equivalents, ending balance	$	338,961		$	2,050,350

Notes to Condensed Parent Company Financial Information

As of June 30, 2024, and 2023, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except as separately disclosed in the Consolidated Financial Statements, if any. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.