Variable Interest Entities

6 Months Ended

Dec. 31, 2021

Accounting Policies [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 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.

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.

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 unaudited condensed consolidated financial statements as of December 31, 2021 and June 30, 2021:

	December 31,		June 30,
	2021		2021
ASSETS
Current Assets
Cash and cash equivalents	$	517,040	$	253,566
Accounts receivable, net		13,135,956		35,360,138
Inventories		4,241,273		6,681,758
Other current assets		58,459		477,693
Advances to suppliers		147,188		277,563
Total Current Assets		18,099,916		43,050,718
Plant, Property and Equipment, Net		36,015		138,662
Other assets
Intangible Assets, Net		321,889		673,213
Total Assets	$	18,457,820	$	43,862,593
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable		4,419,182		14,736,412
Customer deposits		-		167,059
Accrued expenses and other payables		6,018,966		9,162,742
Total Current Liabilities	$	10,438,148	$	24,066,213
Total Liabilities	$	10,438,148	$	24,066,213
Stockholders’ equity		8,019,672		19,796,380
Total Liabilities and Stockholders’ Equity	$	18,457,820	$	43,862,593

	Three Months Ended December 31,
	2021			2020
Revenue	$	3,467,454		$	11,003,073
Expenses		8,670,467			12,538,159
Net income (loss)	$	(5,203,013	)	$	(1,535,086	)

	Six Months Ended December 31,
	2021			2020
Revenue	$	5,068,014		$	24,803,790
Expenses		10,166,655			26,233,239
Net income	$	(5,098,641	)	$	(1,429,449	)