Variable Interest Entities

6 Months Ended

Dec. 31, 2016

Variable Interest Entities [Abstract]

VARIABLE INTEREST ENTITIES

NOTE 16 - 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.

On June 30, 2016, the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and also into a series of contractual agreements to qualify as VIEs with the shareholders of the VIE Companies.

Jinong, the VIE Companies, and the shareholders of the VIE Companies also entered into a series of contractual agreements for the VIE Companies to qualify as VIEs (the “VIE Agreements”).

As a result of these contractual arrangements, with Yuxing and the VIE Companies the Company is entitled to substantially all of the economic benefits of Yuxing and the VIE Companies. The following financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements as of December 31, 2016 and June 30, 2016:

	December 31,		June 30,
	2016		2016
ASSETS
Current Assets
Cash and cash equivalents	$	1,030,482	$	1,017,841
Accounts receivable, net		9,596,532		7,050,201
Inventories		23,999,754		26,370,202
Other current assets		1,709,991		1,875,912
Advances to suppliers		2,119,048		4,900,524
Total Current Assets		38,455,807		41,214,680
Plant, Property and Equipment, Net		12,292,713		13,377,817
Other assets		216,136		334,264
Intangible Assets, Net		12,017,863		12,913,776
Goodwill		3,021,632		3,158,179
Total Assets	$	66,004,151	$	70,998,716
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	4,308,607	$	3,840,052
Customer deposits		1,803,140		3,486,150
Accrued expenses and other payables		3,304,318		5,580,642
Amount due to related parties		39,722,237		43,478,158
Total Current Liabilities		49,560,557		56,385,002
Stockholders' equity		16,443,594		14,613,714
Total Liabilities and Stockholders' Equity	$	66,004,151	$	70,998,716

	Three months ended December 31,				Six months ended December 31,
	2016		2015		2016		2015
Revenue	$	10,852,779	$	2,083,765	$	25,500,167	$	3,325,400
Expenses		9,954,543		1,570,665		22,967,005		2,406,015
Net income (loss)	$	898,236	$	513,100	$	2,533,162	$	919,385