Variable Interest Entities

12 Months Ended

Jun. 30, 2021

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.

On June 2, 2021, the Company, through its wholly-owned subsidiary Jinong, exited the VIE agreements with the shareholders of Xinjiang and Xiangrong.

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, 2021 and June 30, 2020:

	June 30,		June 30,
	2021		2020
ASSETS
Current Assets
Cash and cash equivalents	$	253,566	$	310,448
Accounts receivable, net		35,360,138		26,708,511
Inventories		6,681,758		5,457,860
Other current assets		477,693		409,754
Related party receivable		-		-
Advances to suppliers		277,563		392,282
Total Current Assets		43,050,718		33,278,855
Plant, Property and Equipment, Net		138,662		143,278
Other assets
Intangible Assets, Net		673,213		1,014,295
Goodwill		-		1,071,994
Total Assets	$	43,862,593	$	35,508,422
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	14,736,412	$	15,870,778
Customer deposits		167,059		70,729
Accrued expenses and other payables		9,162,742		6,416,032
Amount due to related parties		-		-
Total Current Liabilities		24,066,213		22,357,539
Total Liabilities	$	24,066,213		22,357,539
Stockholders’ equity		19,796,380		13,150,883
Total Liabilities and Stockholders’ Equity	$	43,862,593	$	35,508,422

	Years Ended June 30,
	2021		2020
Revenue	$	50,125,905	$	43,575,375
Expenses		45,496,242		44,930,619
Net income	$	4,629,663	$	(1,355,244	)