Variable Interest Entities

6 Months Ended

Dec. 31, 2022

Variable Interest Entities [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 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, the Company is entitled to substantially all the economic benefits of Yuxing. The following financial statement amounts and balances of the VIE (Yuxing) was included in the accompanying consolidated financial statements as of December 31, 2022 and June 30, 2022:

	December 31,			June 30,
	2022			2022
ASSETS
Current Assets
Cash and cash equivalents	$	207,892		$	385,308
Accounts receivable, net		700,588			710,143
Inventories		24,298,292			22,062,527
Other current assets		167,774			22,932
Related party receivable		10,100			13,064.00
Advances to suppliers		110,141			1,879,704
Total Current Assets		25,494,787			25,073,678
Plant, Property and Equipment, Net		6,424,016			6,926,023
Other assets		10,288			10,600
Intangible Assets, Net		7,776,627			8,122,036
		-
Total Assets	$	39,705,718		$	40,132,337
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	104,808		$	107,095
Customer deposits		2,963			10,016
Accrued expenses and other payables		297,014			306,116
Amount due to related parties		41,126,985			42,105,604
Total Current Liabilities		41,531,770			42,528,831
Total Liabilities	$	41,531,770			42,528,831
Stockholders’ equity		(1,826,052	)		(2,396,494	)
Total Liabilities and Stockholders’ Equity	$	39,705,718		$	40,132,337

	Three Months Ended December 31,
	2022		2021
Revenue	$	2,846,739	$	2,819,203
Expenses		2,564,149		2,584,138
Net income	$	282,590	$	235,065

	Six Months Ended December 31,
	2022		2021
Revenue	$	5,717,240	$	5,708,097
Expenses		5,223,064		5,311,093
Net income	$	494,176	$	397,004