Variable Interest Entities

6 Months Ended

Dec. 31, 2023

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 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, 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 VIE (Yuxing) was included in the accompanying consolidated financial statements as of December 31, 2023 and June 30, 2023:

	December 31,			June 30,
	2023			2023
ASSETS
Current Assets
Cash and cash equivalents	$	230,479		$	323,854
Accounts receivable, net		661,761			283,221
Inventories		23,999,498			24,288,379
Other current assets		143,247			108,677
Related party receivable		-			27,560
Total Current Assets		25,034,985			25,031,691
Plant, Property and Equipment, Net		5,821,031			5,887,278
Other assets		10,025			9,784
Intangible Assets, Net		7,371,378			7,294,729
Total Assets	$	38,237,419		$	38,223,482
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	12,821		$	12,512
Customer deposits		50,187			62,134
Accrued expenses and other payables		290,365			282,968
Amount due to related parties		40,566,777			39,346,051
Total Current Liabilities		40,920,150			39,703,665
Total Liabilities	$	40,920,150			39,703,665
Stockholders’ equity		(2,682,731	)		(1,480,183	)
Total Liabilities and Stockholders’ Equity	$	38,237,419		$	38,223,482

	Three Months Ended December 31,
	2023			2022
Revenue	$	(2,452,187	)	$	(2,846,739	)
Expenses		(3,750,478	)		(2,564,149	)
Net income	$	1,298,291		$	(282,590	)

	Six Months Ended December 31,
	2023			2022
Revenue	$	4,794,904		$	5,717,240
Expenses		5,938,924			5,223,064
Net income	$	(1,144,020	)	$	494,176