Variable Interest Entities

12 Months Ended

Jun. 30, 2022

Variable Interest Entities [Abstract]

VARIABLE INTEREST ENTITIES

NOTE 18 – 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 most 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, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Xindeguo, Xinyulei 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 and 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 consolidated financial statements as of June 30, 2022 and June 30, 2021:

	June 30,			June 30,
	2022			2021
ASSETS
Current Assets
Cash and cash equivalents	$	385,308		$	401,278
Accounts receivable, net		710,143			589,544
Inventories		22,062,527			20,396,819
Other current assets		22,932			65,481
Related party receivable		13,064.00			42,757.00
Advances to suppliers		1,879,704			76,877
Total Current Assets		25,073,678			21,572,756
Plant, Property and Equipment, Net		6,926,023			8,198,256
Other assets		10,600			97,516
Intangible Assets, Net		8,122,036			8,647,820
Total Assets	$	40,132,337		$	38,516,348
		-
LIABILITIES AND STOCKHOLDERS’ EQUITY		-
Current Liabilities		-
Accounts payable	$	107,095		$	161,461
Customer deposits		10,016			5,374
Accrued expenses and other payables		306,116			223,944
Amount due to related parties		42,105,604			41,333,167
Total Current Liabilities		42,528,831			41,723,946
Total Liabilities	$	42,528,831			41,723,946
Stockholders’ equity		(2,396,494	)		(3,207,598	)
Total Liabilities and Stockholders’ Equity	$	40,132,337		$	38,516,348

	Years Ended June 30,
	2022		2021
Revenue	$	11,356,390	$	11,038,666
Expenses		10,633,454		10,399,353
Net income	$	722,936	$	639,313