Variable Interest Entities

3 Months Ended

Sep. 30, 2024

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 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 VIE (Yuxing) was included in the accompanying consolidated financial statements as of September 30, 2024 and June 30, 2024:

	September 30,			June 30,
	2024			2024
ASSETS
Current assets
Cash and cash equivalents	$	305,858		$	668,213
Accounts receivable, net		505,608			451,599
Inventories		26,054,842			24,739,437
Inter co trans		4,987,150			2,062,500
Other current assets		158,648			98,636
Total current assets		32,012,106			28,020,385
Non-current assets
Plant, property and equipment, net		5,493,731			5,437,909
Intangible assets, net		7,282,301			7,077,589
Total non-current assets		12,776,032			12,515,498
Total assets	$	44,788,138		$	40,535,883
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	12,938		$	12,485
Customer deposits		-			19,609
Accrued expenses and other payables		209,154			201,229
Amount due to related parties		41,705,610			40,511,642
Short-term loan		498,715			206,250
Total current liabilities		42,426,417			40,951,215
Non-current liabilities
Long-term loan		4,488,435			1,856,250
Total non-current liabilities		4,488,435			1,856,250
Total liabilities	$	46,914,852		$	42,807,465
Stockholders’ equity		(2,126,714	)		(2,271,582	)
Total Liabilities and stockholders’ equity	$	44,788,138		$	40,535,883

	Three Months Ended September 30,
	2024		2023
Revenue	$	2,340,443	$	2,342,717
Expenses		2,117,621		2,188,446
Net income	$	222,822	$	154,271