Variable Interest Entities

9 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

VARIABLE INTEREST ENTITIES

NOTE 17 – 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 and January 1, 2017, the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and into a series of contractual agreements to qualify as VIEs with the shareholders of the sales VIE Companies.

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

On November 30, 2017, the Company, through its wholly-owned subsidiary Jinong, exited the VIE agreements with the shareholders of Zhenbai.

On June 2, 2021, the Company, through its wholly-owned subsidiary Jinong, exited the VIE agreements with the shareholders of Xinjiang and Xiangrong.

On December 1, 2021, the Company, through its wholly-owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Lishijie.

On December 31, 2021, the Company, through its wholly-owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Fengnong.

On March 31, 2022, the Company, through its wholly-owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Jinyangguang.

On March 31, 2022, the Company, through its wholly-owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Wangtian.

As a result of these contractual arrangements, with Yuxing and the sales VIE Companies the Company is entitled to substantially all the economic benefits of Yuxing and the VIE Companies. The following financial statement amounts and balances of the VIEs were included in the accompanying unaudited condensed consolidated financial statements as of March 31, 2022 and June 30, 2021:

	March 31,		June 30,
	2022		2021
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	253,566
Accounts receivable, net				35,360,138
Inventories				6,681,758
Other current assets				477,693
Advances to suppliers				277,563
Total Current Assets				43,050,718
Plant, Property and Equipment, Net				138,662
Other assets
Intangible Assets, Net				673,213
Total Assets	$		$	43,862,593
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable				14,736,412
Customer deposits				167,059
Accrued expenses and other payables				9,162,742
Total Current Liabilities	$		$	24,066,213
Total Liabilities	$		$	24,066,213
Stockholders’ equity				19,796,380
Total Liabilities and Stockholders’ Equity	$		$	43,862,593

	Three Months Ended March 31,
	2022		2021
Revenue	$	-	$	21,811,360
Expenses				20,613,304
Net income (loss)	$		$	1,198,056

	Nine Months Ended March 31,
	2022		2021
Revenue	$	-	$	46,615,150
Expenses				46,846,543
Net income	$		$	(231,393	)