Variable Interest Entities

3 Months Ended

Sep. 30, 2019

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 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 September 30, 2019 and June 30, 2019:

	September 30,		June 30,
	2019		2019
ASSETS
Current Assets
Cash and cash equivalents	$	889,411	$	818,312
Accounts receivable, net		34,488,345		29,933,837
Inventories		19,863,016		19,944,011
Other current assets		961,931		475,001
Related party receivable		79,380		(1,031	)
Advances to suppliers		673,998		3,606,384
Total Current Assets		56,956,081		54,776,514
Plant, Property and Equipment, Net		9,122,482		9,753,039
Other assets		216,902		218,549
Intangible Assets, Net		9,627,167		10,212,668
Goodwill		3,080,957		3,208,779
Total Assets	$	79,003,589	$	78,169,549
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable		15,764,216		17,250,276
Customer deposits		62,548		256,489
Accrued expenses and other payables		6,779,449		6,243,753
Amount due to related parties		41,178,737		42,680,723
Total Current Liabilities	$	63,784,950	$	66,431,241
Long-term Loan		0		0
Total Liabilities	$	63,784,950	$	66,431,241
Stockholders' equity		15,218,639		11,738,308
Total Liabilities and Stockholders' Equity		79,003,589	$	78,169,549

	Three Months Ended September 30,
	2019		2018
Revenue	$	15,443,538	$	17,985,020
Expenses		11,420,496		15,371,814
Net income	$	4,023,042	$	2,613,206