Variable Interest Entities

12 Months Ended

Jun. 30, 2019

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 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 also 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.

As a result of these contractual arrangements, with Yuxing and the sales 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 June 30, 2019 and June 30, 2018:

	June 30,			June 30,
	2019			2018
ASSETS
Current Assets
Cash and cash equivalents	$	818,312		$	982,312
Accounts receivable, net		29,933,837			38,295,505
Inventories		19,944,011			21,133,970
Other current assets		475,001			988,051
Related party receivable		(1,031	)		(359,005	)
Advances to suppliers		3,606,384			848,458
Total Current Assets		54,776,514			61,889,291
Plant, Property and Equipment, Net		9,753,039			11,206,667
Other assets		218,549			226,654
Intangible Assets, Net		10,212,668			11,348,180
Goodwill		3,208,779			3,319,732
Total Assets	$	78,169,549		$	87,990,524
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	17,250,276		$	25,584,614
Customer deposits		256,489			841,694
Accrued expenses and other payables		6,243,753			3,896,340
Amount due to related parties		42,680,723			43,339,286
Total Current Liabilities		66,431,241			73,661,934
Total Liabilities	$	66,431,241			73,661,934
Stockholders' equity		11,738,308			14,328,590
Total Liabilities and Stockholders' Equity	$	78,169,549		$	87,990,524

	Years Ended June 30,
	2019			2018
Revenue	$	81,541,077		$	77,351,284
Expenses		84,247,714			80,535,970
Net income	$	(2,706,637	)	$	(3,184,686	)