Variable Interest Entities

9 Months Ended

Mar. 31, 2023

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 most 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, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Xindeguo, Xinyulei 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.

On March 31, 2022, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Jinyangguang and Wangtian.

As a result of these contractual arrangements, the Company is entitled to substantially all the economic benefits of Yuxing. The following financial statement amounts and balances of the VIE (Yuxing) was included in the accompanying consolidated financial statements as of March 31, 2023 and June 30, 2022:

	March 31,			June 30,
	2023			2022
ASSETS
Current Assets
Cash and cash equivalents	$	440,497		$	385,308
Accounts receivable, net		254,627			710,143
Inventories		25,342,105			22,062,527
Other current assets		140,211			22,932
Related party receivable		15,452			13,064.00
Advances to suppliers		110,597			1,879,704
Total Current Assets		26,303,489			25,073,678
Plant, Property and Equipment, Net		6,310,951			6,926,023
Other assets		10,331			10,600
Intangible Assets, Net		7,755,586			8,122,036
		-
Total Assets	$	40,380,357		$	40,132,337
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	105,242		$	107,095
Customer deposits		23,821			10,016
Accrued expenses and other payables		298,609			306,116
Amount due to related parties		41,661,033			42,105,604
Total Current Liabilities		42,088,705			42,528,831
Total Liabilities	$	42,088,705			42,528,831
Stockholders’ equity		(1,708,348	)		(2,396,494	)
Total Liabilities and Stockholders’ Equity	$	40,380,357		$	40,132,337

	Three Months Ended March 31,
	2023		2022
Revenue	$	2,198,139	$	2,548,383
Expenses		2,070,867		2,343,895
Net income	$	127,272	$	204,488

	Nine Months Ended March 31,
	2023		2022
Revenue	$	7,915,379	$	8,256,480
Expenses		7,293,931		7,654,988
Net income	$	621,448	$	601,492