Variable Interest Entities

12 Months Ended

Jun. 30, 2020

Accounting Policies [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 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 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 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, 2020 and June 30, 2019:

	June 30,		June 30,
	2020		2019
ASSETS
Current Assets
Cash and cash equivalents	$	712,301	$	818,312
Accounts receivable, net		33,727,918		29,933,837
Inventories		22,995,075		19,944,011
Other current assets		593,942		475,001
Related party receivable		66		(1,031	)
Advances to suppliers		520,901		3,606,384
Total Current Assets		58,550,203		54,776,514
Plant, Property and Equipment, Net		8,513,395		9,753,039
Other assets		59,575		218,549
Intangible Assets, Net		9,391,626		10,212,668
Goodwill		2,510,745		3,208,779
Total Assets	$	79,025,544	$	78,169,549
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	16,416,828	$	17,250,276
Customer deposits		86,430		256,489
Accrued expenses and other payables		6,996,544		6,243,753
Amount due to related parties		41,549,931		42,680,723
Total Current Liabilities		65,049,733		66,431,241
Total Liabilities	$	65,049,733		66,431,241
Stockholders’ equity		13,975,811		11,738,308
Total Liabilities and Stockholders’ Equity	$	79,025,544	$	78,169,549

	Years Ended June 30,
	2020		2019
Revenue	$	72,617,872	$	81,541,077
Expenses		70,038,413		84,247,714
Net income	$	2,579,459	$	(2,706,637	)