VARIABLE INTEREST ENTITIES

6 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity Disclosure [Text Block]

NOTE 14 VARIABLE INTEREST ENTITIES

In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which a company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes.

Green Nevada through one of its subsidiaries, Jinong, entered into a series of agreements (the “VIE Agreements”) with Yuxing for it to qualify as a VIE, effective June 16, 2013.

The Company has concluded, based on the contractual arrangements, that Yuxing is a VIE and that the Company’s wholly-owned subsidiary, Jinong, absorbs a majority of the risk of loss from the activities of Yuxing, thereby enabling the Company, through Jinong, to receive a majority of Yuxing expected residual returns.

As a result of the VIE Agreements, Green Nevada is able to exercise control over Yuxing and was entitled to substantially all of the economic benefits of Yuxing through its subsidiary, Jinong. Therefore, Green Nevada consolidates Yuxing in accordance with ASC 810-10 (“Consolidation of Variable Interest Entities”) since the date of the VIE Agreements.

The following financial statement amounts and balances of the VIE were included in the accompanying consolidated financial statements as of December 31, 2015 and June 30, 2015:

	December 31		June 30,
	2015		2015
ASSETS
Current Assets
Cash and cash equivalents	$	180,970	$	79,867
Accounts receivable, net		192,716		72,748
Inventories		18,365,531		18,138,137
Other current assets		29,739		48,845
Advances to suppliers		3,116,861		61,739
Total Current Assets		21,885,817		18,401,336
Plant, Property and Equipment, Net		14,220,333		15,692,975
Construction In Progress		64,838		68,921
Intangible Assets, Net		9,842,881		10,582,657
Total Assets	$	46,013,869	$	44,745,889
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	273,112	$	159,730
Accrued expenses and other payables		30,091		222,871
Amount due to related parties		43,991,316		43,488,198
Total Current Liabilities		44,294,519		43,870,799
Stockholders' equity		1,719,350		875,090
Total Liabilities and Stockholders' Equity	$	46,013,869	$	44,745,889

	Three months ended December 31,				Six months ended December 31,
	2015		2014		2015		2014
Revenue	$	2,083,765	$	1,079,674	$	3,325,400	$	1,931,225
Expenses		1,570,665		923,763		2,406,015		1,413,275
Net income (loss)	$	513,100	$	155,911	$	919,385	$	517,950