Annual Report for Fiscal Year Ending June 30, 2025 (Form 10-K)

Management's Discussion and Analysis of Financial Condition and Results of Operations.

Recent Developments - NYSE Delisting and Going Concern Uncertainty

On October 13, 2025, the Company received a determination notice from the NYSE stating its intent to commence proceedings to delist our common stock. Trading was suspended immediately. This event has a material impact on our financial condition and raises substantial doubt about our ability to continue as a going concern. The following discussion and analysis should be read with this critical uncertainty in mind. Further details regarding this matter and our plans are provided in the "Liquidity and Capital Resources" section of this MD&A, "Item 1A. Risk Factors," and in Notes 3 and 18 to our consolidated financial statements.

Overview

We are engaged in the research, development, production, and sale of various types of fertilizers, agricultural products and Bitcoin in the PRC and United State through our wholly owned Chinese subsidiaries, Jinong and Gufeng (including Gufeng's subsidiary Tianjuyuan), Yuxing, a VIE associated with Jinong, and our wholly owned U.S. subsidiary Antaeus. Our primary business is fertilizer products, specifically humic-acid based compound fertilizer produced by Jinong and compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizer, highly concentrated water-soluble fertilizer, and mixed organic-inorganic compound fertilizer produced by Gufeng. In addition, through Yuxing, we develop and produce various agricultural products, such as top-grade fruits, vegetables, flowers, and colored seedlings. Besides, we engaged in the mining of digital assets Bitcoin through Antaeus. For financial reporting purposes, our operations are organized into four business segments: fertilizer products (Jinong), fertilizer products (Gufeng), agricultural products (Yuxing), and Bitcoin (Antaeus).

The fertilizer business conducted by Jinong and Gufeng generated approximately 86.8% and 88.8% of our total revenues for the years ended June 30, 2025 and 2024, respectively. Yuxing generated 13.0% and 9.8% of our revenues for the years ended June 30, 2025 and 2024, respectively. Yuxing serves as a research and development base for our fertilizer products. Antaeus generated 0.2% and 1.3% of our revenues for the years ended June 30, 2025 and 2024, respectively.

Fertilizer Products

As of June 30, 2025, we had developed, produced, and sold a total of 111 different fertilizer products in use, of which 73 were developed and produced by Jinong and 38 by Gufeng.

Below is a table that shows the metric tons of fertilizer sold by Jinong and Gufeng and the revenue per ton for the periods indicated:

		Year Ended June 30,								Change 2024 to 2025
		2025				2024				Amount				%
		(Metric tons)
Jinong			39,304				33,474				5,831				17.4	%
Gufeng			74,197				105,597				(31,399	)			-29.7	%
			113,501				139,070				(25,569	)			-18.4	%

		Year Ended June 30,
		2025				2024
		(Revenue per tons)
Jinong		$	746			$	983
Gufeng			496				491

For the fiscal year ended June 30, 2025, we sold approximately 113,501 metric tons of fertilizer products, as compared to 139,070 metric tons for the fiscal year ended June 30, 2024. For the fiscal year ended June 30, 2025, Jinong sold approximately 39,304 metric tons of fertilizer products, as compared to 33,474 metric tons for the fiscal year ended June 30, 2024. For the fiscal year ended June 30, 2025, Gufeng sold approximately 74,197 metric tons of fertilizer products, as compared to 105,597 metric tons for the fiscal year ended June 30, 2024.

Our sales of fertilizer products to five provinces accounted for approximately 65.2% of our manufactured fertilizer revenue for year ended June 30, 2025. Specifically, the provinces and their respective percentage contributed to our fertilizer revenues were Hebei (26.9%), Heilongjiang (11.9%), Liaoning (9.5%), Shaanxi (8.7%), and Inner Mongolia (8.2%).

As of June 30, 2025, we had a total of 639 distributors covering 22 provinces, 4 autonomous regions and 4 central government-controlled municipalities in China. Jinong had 611 distributors in China. Jinong's sales are not dependent on any single distributor or any group of distributors. Jinong's top five distributors accounted for 21.4% of its fertilizer revenues for the fiscal year ended June 30, 2025. Gufeng had 28 distributors, including some large state-owned enterprises. Gufeng's top five distributors accounted for 45.4% of their revenues for the fiscal year ended June 30, 2025.

Agricultural Products

Through Yuxing, we develop, produce, and sell high-quality flowers, green vegetables and fruits to local marketplaces and various horticulture and planting companies. We also use certain of Yuxing's greenhouse facilities to conduct research and development activities for our fertilizer products. The three PRC provinces that accounted for 89.1% of our agricultural products revenue for the fiscal year ended June 30, 2025 were Shaanxi (81.9%), Beijing (4.7%), and Shanghai (2.5%).

Digital Assets Bitcoin

In March 2023, we purchased digital assets mining machines and established Antaeus Tech Inc. ("Antaeus") in the State of Texas to mine digital assets Bitcoin. Through Antaeus, we expanded our activities in the mining of digital assets Bitcoin.

Recent Developments

New products and distributors

During the three months ending June 30, 2025, Jinong discontinued 8 obsolete products and terminated 2 unqualified distributors. Meanwhile, Gufeng did not introduce any new fertilizer products or onboard new distributors.

Results of Operations

Fiscal Year ended June 30, 2025 Compared to the Year ended June 30, 2024.

FOR THE YEARS ENDED JUNE 30

		2025				2024				Change $				Change %
Sales
Jinong		$	28,803,021			$	32,954,490				(4,151,469	)			-12.6	%
Gufeng			36,549,551				52,189,666				(15,640,115	)			-30.0	%
Yuxing			9,750,553				9,416,451				334,102				3.5	%
Antaeus			181,746				1,285,181				(1,103,435	)			-85.9	%
Net sales			75,284,871				95,845,788				(20,560,917	)			-21.5	%
Cost of goods sold
Jinong			17,934,458				21,778,141				(3,843,683	)			-17.6	%
Gufeng			31,967,249				45,600,383				(13,633,134	)			-29.9	%
Yuxing			8,057,609				7,816,566				241,043				3.1	%
Antaeus			215,773				928,718				(712,945	)			-76.8	%
Cost of goods sold			58,175,089				76,123,808				(17,948,719	)			-23.6	%
Gross profit			17,109,782				19,721,980				(2,612,198	)			-13.2	%
Operating expenses
Selling expenses			7,434,325				7,790,881				(356,556	)			-4.6	%
General and administrative expenses			24,430,435				40,779,553				(16,349,119	)			-40.1	%
Change in fair value of Bitcoin			-				2,701				(2,701	)			-100	%
Total operating expenses			31,864,760				48,573,135				(16,708,376	)			-34.4	%
Loss from operations			(14,754,978	)			(28,851,155	)			14,096,178				-48.9	%
Other income (expense)
Other income (expense)			(553,312	)			132,974				(686,286	)			-516.1	%
Interest income			126,918				194,401				(67,483	)			-34.7	%
Interest expense			(470,623	)			(292,186	)			(178,437	)			61.1	%
Total other income (expense)			(897,017	)			35,189				(932,206	)			-2649.1	%
Loss before income taxes			(15,651,995	)			(28,815,966	)			13,163,971				-45.7	%
Provision for income taxes			(49,835	)			(410,651	)			360,816				-87.9	%
Net loss			(15,602,160	)			(28,405,315	)			12,803,155				-45.1	%
Other comprehensive (loss) income
Foreign currency translation (loss) gain			(1,461,004	)			399,957				(1,860,961	)			-465.3	%
Comprehensive loss		$	(17,063,164	)		$	(28,005,358	)			10,942,194				-39.1	%
Basic weighted average shares outstanding			14,897,067				13,936,757				960,311				6.9	%
Basic net loss per share		$	(1.05	)		$	(2.04	)			0.99				-48.6	%
Diluted weighted average shares outstanding			14,897,067				13,936,757				960,311				6.9	%
Diluted net loss per share		$	(1.05	)		$	(2.04	)			0.99				-48.6	%

Net Sales

Total net sales for the fiscal year ended June 30, 2025 were $75,284,871, a decrease of $20,560,917 or 21.5%, from $95,845,788 for the fiscal year ended June 30, 2024. This decrease was principally due to Gufeng's lower sales.

For the fiscal year ended June 30, 2025, Jinong's net sales decreased by $4,151,469, or 12.6%, to $28,803,021 from $32,954,490 for the fiscal year ended June 30, 2024. This decrease was mainly due to the reduction in unit price during the last fiscal year. Jinong sold 39,304 tons of product during the fiscal year 2025, an increase of 5,831 tons or 17.4% comparing with 33,474 tons in fiscal year 2024. However, the revenue per ton was only $746, a decrease of $237 or 24.1% compared to $983 for the fiscal year ended June 30, 2024.

For the fiscal year ended June 30, 2025, Gufeng's net sales were $36,549,551, a decrease of $15,640,115, or 30.0% from $52,189,666, for the fiscal year ended June 30, 2024. The decline in net sales was primarily due to reduced sales volume for Gufeng during the last fiscal year. Gufeng sold 74,197 tons of product during the fiscal year 2025, a decrease of 31,399 tons or 29.7% compared to 105,597 tons for fiscal year 2024.

For the fiscal year ended June 30, 2025, Yuxing's net sales were $9,750,553, an increase of $334,102, or 3.5%, from $9,416,451 for the fiscal year ended June 30, 2024. The increase was mainly attributable to the increase in market demand during the fiscal year 2025.

For the fiscal year ended June 30,2025, Antaeus's net sales were $181,746, a decrease of $1,103,435, or 85.9%, from $1,285,181 for the fiscal year ended June 30, 2024. The decrease stemmed from the Company's strategic shift.

Cost of Goods Sold

The total cost of goods sold for the fiscal year ended June 30, 2025 was $58,175,089, a decrease of $17,948,719, or 23.6%, from $76,123,808 for the fiscal year ended June 30, 2024. This decrease was primarily due to lower net sales.

Cost of goods sold by Jinong for the fiscal year ended June 30, 2025 was $17,934,458, a decrease of $3,843,683, or 17.6%, from $21,778,141, for the fiscal year ended June 30, 2024. The decrease in cost of goods was mainly due to the 12.6% decrease in Jinong's net sales during the fiscal year 2025.

Cost of goods sold by Gufeng for the fiscal year ended June 30, 2025 was $31,967,249, a decrease of $13,633,134, or 29.9%, from $45,600,383, for the fiscal year ended June 30, 2024. The decrease in cost of goods was mainly due to the 30.0% decrease in Gufeng's net sales during the fiscal year 2025.

For year ended June 30, 2025, the cost of goods sold by Yuxing was $8,057,609, an increase of $241,043, or 3.1%, from $7,816,566 for the fiscal year ended June 30, 2024. This increase was mainly due to the 3.5% increase in Yuxing's net sales during the fiscal year 2025.

For year ended June 30,2025, the cost of goods sold by Antaeus was $215,773, a decrease of $712,945, or 76.8%, from $928,718 for the fiscal year ended June 30, 2024. This decrease was mainly due to the 85.9% decrease in Antaeus's net sales during the fiscal year 2025.

Gross Profit

Total gross profit for the fiscal year ended June 30, 2025 decreased by $2,612,198 to $17,109,782, as compared to $19,721,980 for the fiscal year ended June 30, 2024. Gross profit margin was 22.7% and 20.6% for the fiscal years ended June 30, 2025 and 2024, respectively.

Gross profit generated by Jinong decreased by $307,786, or 2.8%, to $10,868,563 for the fiscal year ended June 30, 2025 from $11,176,349 for the fiscal year ended June 30, 2024. Gross profit margin from Jinong's sales was approximately 37.7% and 33.9% for the fiscal years ended June 30, 2025 and 2024, respectively. The increase in gross profit percentage was mainly due to lower product cost.

For the fiscal year ended June 30, 2025, gross profit generated by Gufeng was $4,582,302, a decrease of $2,006,981, or 30.5%, from $6,589,283 for the fiscal year ended June 30, 2024. Gross profit margin from Gufeng's sales was approximately 12.5% and 12.6% for the fiscal years ended June 30, 2025 and 2024, respectively.

For the fiscal year ended June 30, 2025, gross profit generated by Yuxing was $1,692,944, a decrease of $93,059, or 5.8% from $1,599,885 for the fiscal year ended June 30, 2024. The gross profit margin was approximately 17.4% and 17.0% for the fiscal years ended June 30, 2025 and 2024, respectively.

For the fiscal year ended June 30,2025, gross profit generated by Antaeus was $(34,027), a decrease of $390,490, or 109.5%, from $356,463 for the fiscal year ended June 30, 2024.The gross profit margin was approximately -18.7% and 27.7% for the fiscal year ended June 30,2025 and 2024, respectively.

Selling Expenses

Our selling expenses consisted primarily of salaries of sales personnel, advertising, and promotion expenses, freight-out costs, and related compensation. Selling expenses were $7,434,325, or 9.9%, of net sales for the fiscal year ended June 30, 2025, as compared to $7,790,881, or 8.1%, of net sales, for the fiscal year ended June 30, 2024, a decrease of $356,556, or 4.6%. The selling expenses of Jinong for the fiscal year ended June 30, 2025 were $7,007,021 or 24.3% of Jinong's net sales, as compared to selling expenses of $7,404,487 or 22.5% of Jinong's net sales for the fiscal year ended June 30, 2024, a decrease of $397,466, or 5.4%. The selling expenses of Yuxing were $84,817, or 0.9% of Yuxing's net sales for the fiscal year ended June 30, 2025, as compared to $102,059, or 1.1% of Yuxing's net sales for the fiscal year ended June 30, 2024. The selling expenses of Gufeng were $342,487, or 0.9% of Gufeng's net sales for the fiscal year ended June 30, 2025, as compared to $284,335, or 0.5% of Gufeng's net sales for the fiscal year ended June 30, 2024.

General and Administrative Expenses

General and administrative expenses consist primarily of related salaries, rental expenses, business development, depreciation, and travel expenses incurred by our general and administrative departments and legal and professional expenses, including expenses incurred and accrued for certain litigation. General and administrative expenses were $24,430,435, or 32.5% of net sales for the fiscal year ended June 30, 2025, as compared to $40,779,553, or 42.5%, of net sales for the fiscal year ended June 30, 2024, a decrease of $16,349,119, or 40.1%. The decrease in general and administrative expenses was mainly due to lower bad debts expense.

Total Other Income (Expenses)

Total other income consisted of income from subsidies received from the PRC government, interest income, interest expenses, and bank charges. The total other expense for the fiscal year ended June 30, 2025 was $897,017, as compared to the total other income of $35,189 for the fiscal year ended June 30, 2024, a decrease of $932,206, or 2649.1%. The decrease in total other income mainly resulted from higher non-operating expense and higher bank charge in fiscal year 2025.

Income Taxes

Jinong is subject to a preferred tax rate of 15% because of its business being classified as a High-Tech project under the PRC Enterprise Income Tax Law ("EIT") that became effective on January 1, 2008. Jinong has no income tax expense for the fiscal year ended June 30, 2025 and 2024.

Gufeng is subject to a tax rate of 25% and has no income tax expense for the fiscal year ended June 30, 2025 and 2024.

Yuxing has no income tax for the years ended June 30, 2025 and 2024 because it is exempted from paying income tax due to its products falling into the tax exemption list set out in the EIT.

Antaeus is subject to a tax rate of 21% and has income tax expense of $(49,835) and $(410,651) for the fiscal year ended June 30, 2025 and 2024, respectively.

Net loss

Net loss for the fiscal year ended June 30, 2025 was $(15,602,160), a decrease of loss with amount of $12,803,155, or 45.1%, compared to $(28,405,315), for the fiscal year ended June 30, 2024. The decrease was mainly due to lower General and administrative expenses. Net loss as a percentage of total net sales was approximately -20.7% and -29.6% for the fiscal years ended June 30, 2025 and 2024, respectively.

Discussion of Segment Profitability Measures

As of June 30, 2025, we were engaged in the following businesses: the production and sale of fertilizers through Jinong and Gufeng, the production and sale of high-quality agricultural products by Yuxing and the production and sale of Bitcoin by Antaeus. For financial reporting purposes, our operations were organized into four main business segments based on locations and products: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and Antaeus (Bitcoin). Each of the segments has its own annual budget for development, production, and sales.

Each of the four operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker ("CODM") makes decisions with respect to resources allocation and performance assessment upon receiving financial information, including revenue, gross margin, operating income, and net income produced from the various general ledger systems; however, net income by segment is the principal benchmark to measure profit or loss adopted by the CODM.

For Jinong, net loss increased by $5,627,748 or 188.6% to $(8,611,147) for the year ended June 30, 2025, from $(2,983,399) for the fiscal year ended June 30, 2024. The difference was due to higher general and administrative expenses.

For Gufeng, net loss decreased by $15,756,585 or 82.0% to $(3,462,990) for the year ended June 30, 2025 from $(19,219,575) for year ended June 30, 2024. The difference was primarily due to the decrease in general and administrative expenses.

For Yuxing, net loss decreased 174.9%, by $1,403,770, to net income of $601,195 for the year ended June 30, 2025 from $(802,575) for year ended June 30, 2024. The decrease in net loss was mainly due to lower general and administrative expenses.

For Antaeus, the net loss decreased by $1,357,357 or 87.9% to $(187,474) for the year ended June 30, 2025 from $(1,544,831) for year ended June 30, 2024.

Liquidity and Capital Resources

The Company has historically funded operations through cash flows from operations and financing activities. On October 13, 2025, the NYSE Regulation commenced delisting proceedings for the Company's common stock (ENFY) and trading was suspended. Management is currently evaluating options to mitigate the potential negative effects of the delisting on liquidity and access to capital, including the potential need for additional financing and the possibility of debt covenant waivers. There can be no assurance that any plan will be implemented or successful. See Notes 18 and 3 for additional context.

Our principal sources of liquidity include cash from operations, borrowings from local commercial banks and net proceeds of offerings of our securities.

As of June 30, 2025, cash and cash equivalents were $52,519,418, a decrease of $6,253,169, or 10.6%, from $58,772,587 as of June 30, 2024.

We intend to use the net proceeds from our securities offerings, as well as other working capital if required, to acquire new businesses, upgrade production lines and complete Yuxing's new greenhouse facilities for agriculture products located on 88 acres of land in Hu County, 18 kilometers southeast of Xi'an city. We believe that we have sufficient cash on hand and positive projected cash flow from operations to support our business growth for the next twelve months to the extent we do not have further significant acquisitions or expansions. However, if events or circumstances occur and we do not meet our operating plan as expected, we may be required to seek additional capital and/or to reduce certain discretionary spending, which could have a material adverse effect on our ability to achieve our business objectives. Notwithstanding the foregoing, we may seek additional financing as necessary for expansion purposes and when we believe market conditions are most advantageous, which may include additional debt and/or equity financing. There can be no assurance that any additional financing will be available on acceptable terms, if at all. Any equity financing may result in dilution to existing stockholders, and any debt financing may include restrictive covenants.

The following table sets forth a summary of our cash flow for the periods indicated:

		Year Ended June 30,
		2025				2024
Net cash used in operating activities		$	(2,561,222	)		$	(9,872,781	)
Net cash used in investing activities			(5,754,622	)			(6,102,903	)
Net cash provided by financing activities			3,185,474				3,274,064
Effect of exchange rate change on cash and cash equivalents			(1,122,799	)			332,020
Net decrease in cash and cash equivalents			(6,253,169	)			(12,369,600	)
Cash and cash equivalents, beginning balance			58,772,587				71,142,188
Cash and cash equivalents, ending balance		$	52,519,418			$	58,772,587

Operating Activities

Net cash used in operating activities was $2,561,222 for the fiscal year ended June 30, 2025, a decrease of $7,311,559 or 74.1% from cash used in operating activities of $9,872,781 for the fiscal year ended June 30, 2024. The decrease was mainly due to lower net loss for fiscal year 2025 and lower account receivables for the fiscal year ended June 30, 2025.

Investing Activities

Net cash used for investing activities for the fiscal year ended June 30, 2025 was $5,754,622, a decrease of $348,281, or 5.7%, from cash provided by investing activities of $6,102,903 for the fiscal year ended June 30, 2024. This decrease was mainly attributed to lower purchasing of plant, property, and equipment.

Financing Activities

Net cash provided by financing activities for the fiscal year ended June 30, 2025 was $3,185,474, a decrease of $88,590, or 2.7% from cash provided by financing activities of $3,274,064 for the fiscal year ended June 30, 2024.

As of June 30, our loans payable was as follows:

		2025				2024
Short term loans payable:			4,720,934				7,466,250
Long term loans payable:		$	7,889,627			$	1,856,250
Total		$	12,610,561			$	9,322,500

Accounts Receivable

We had accounts receivable of $19,345,061 as of June 30, 2025, as compared to $16,493,068 as of June 30, 2024, an increase of $2,851,993 or 17.3%. The principal reason for the increase is due to the increase in Jinong's accounts receivable. As of June 30, 2025, Jinong had accounts receivable of $13,322,203, an increase of $1,547,909, or 13.1%, compared to $11,774,294 as of June 30, 2024. As of June 30, 2025, allowance for doubtful accounts in accounts receivable for the fiscal year ended June 30, 2025 was $30,266,093, an increase of $7,524,397 or 33.1% from $22,741,696 as of June 30, 2024. And the allowance for doubtful accounts as a percentage of accounts receivable was 61.0% as of June 30, 2025 and 58.0% as of June 30, 2024.

Deferred assets

We had no deferred assets as of June 30, 2025 and 2024. During the twelve months, we assisted the distributors in certain marketing efforts and developing standard stores to expand our competitive advantage and market share. Based on the distributor agreements, the amount owed by the distributors in certain marketing efforts and store development will be expensed over three years if the distributors are actively selling our products. If a distributor defaults, breaches, or terminates the agreement with us earlier than the contractual terms, the unamortized portion of the amount owed by the distributor is payable to us immediately. The deferred assets had been fully amortized as of June 30, 2025.

Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires the Company to use the assets and liability method of accounting for income taxes. Under the assets and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forward. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all, a deferred tax asset will not be realized.

ASC 740-10, Accounting for Uncertainty in Income Taxes defines uncertainty in income taxes and the evaluation of a tax position is a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met.

Inventories

We had inventories of $36,975,287 as of June 30, 2025, compared to $37,826,456 as of June 30, 2024, a decrease of $851,169, or 2.3%. The principal reason for the decrease is due to the decrease in Gufeng's inventory. As of June 30, 2025, Gufeng's inventory was $9,458,569, compared to $11,225,115 as of June 30, 2024, a decrease of $1,766,546, or 15.7%.

Advances to Suppliers

We had advances to suppliers of $12,367,419 as of June 30, 2025, comparing to $12,110,034 as of June 30, 2024, representing an increase of $257,385, or 2.1%. Our inventory level may fluctuate from time to time, depending how fast the raw material is consumed and replenished during the production process, and how fast the finished goods are sold. The replenishment of raw material relies on the management's estimate of numerous factors, including but not limited to, the future price of raw material, and spot price along with their volatility, as well as the seasonal demand and future price of finished fertilizer products. Such an estimate may not be accurate, and the purchase decision of raw materials based on the estimate can cause excessive inventories in slow sales and insufficient inventories in peak times.

Accounts Payable

We had accounts payable of $1,736,031 as of June 30, 2025 as compared to $1,685,725 as of June 30, 2024, representing an increase of $50,307, or 3.0%.

Unearned Revenue (Customer Deposit)

We had unearned revenue of $4,526,024 as of June 30, 2025, comparing to $4,937,207 as of June 30, 2024, representing a decrease of $411,183, or 8.3%. The decrease was mainly due to Gufeng. Gufeng has $2,388,515 unearned revenue as of June 30, 2025, comparing to $4,391,668 unearned revenue as of June 30, 2024, representing a decrease of $2,003,153, or 45.6%. We expect to deliver products to our customers during the next three months at which time we will recognize the revenue.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Critical Accounting Policies and Estimates

Management's discussion and analysis of its financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles. Our financial statements reflect the selection and application of accounting policies which require management to make significant estimates and judgments. See Note 2 to our consolidated financial statements, "Basis of Presentation and Summary of Significant Accounting Policies." We believe that the following paragraphs reflect the most critical accounting policies that currently affect our financial condition and results of operations:

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results and outcomes may differ from management's estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment.

Going Concern Evaluation

The evaluation of our ability to continue as a going concern is a critical accounting estimate due to the significant judgment required in assessing the impact of current and future events on our operations. As described in Note 3 to the consolidated financial statements, our recurring operating losses, negative cash flows from operations, and the recent determination by the NYSE to delist our common stock raise substantial doubt about our ability to continue as a going concern.

In making our assessment, we must make significant estimates regarding the feasibility and potential success of our mitigation plans, including the outcome of a potential appeal of the NYSE's decision and our capacity to obtain alternative financing. The consolidated financial statements have been prepared assuming we will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty. If we are unable to continue as a going concern, we may be unable to realize our assets and discharge our liabilities in the normal course of business, which could have a material adverse effect on our financial position.

Revenue recognition

Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determined, the delivery is completed, we have no other significant obligations and collectability is reasonably assured. Payments received before all the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue.

Our revenue consists of invoiced value of goods, net of a value-added tax (VAT). No product return or sales discount allowance is made as products delivered and accepted by customers are normally not returnable and sales discounts are normally not granted after products are delivered.

Cash and cash equivalents

For statements of cash flows purposes, we consider all cash on hand and in banks, certificates of deposit and other highly liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.

Accounts receivable

Our policy is to maintain reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentration, customer credit worthiness, current economic trends, and changes in customer payment patterns to evaluate the adequacy of these reserves. Any accounts receivable of Jinong and Gufeng that are outstanding for more than 180 days will be accounted as an allowance for bad debts, and any accounts receivable of Yuxing that are outstanding for more than 90 days will be accounted as an allowance for bad debts.

Assets held for sale

There were no assets held for sale as of June 30, 2025.

Deferred assets

Deferred assets represent amounts the Company advanced to the distributors in their marketing and stores development to expand our competitive advantage and market shares. Based on the distributor agreements, the amount owed by the distributors in certain marketing efforts and store development will be expensed over three years if the distributors are actively selling our products. If a distributor defaults, breaches, or terminates the agreement with us earlier than the realization of the contractual terms, the unamortized portion of the amount owed by the distributor is to be refunded to us immediately. The deferred assets had been fully amortized as of June 30, 2025.

Segment reporting

FASB ASC 280 requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other way management disaggregates a company.

As of June 30, 2025, we were organized into four main business units: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and Antaeus (Bitcoin). For financial reporting purposes, our operations were organized into four main business segments based on locations and products: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and Antaeus (Bitcoin). Each of the segments has its own annual budget regarding development, production, and sales.