Variable Interest Entities

12 Months Ended

Jun. 30, 2024

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 were included in the accompanying consolidated financial statements as of June 30, 2024 and June 30, 2023:

	June 30,			June 30,
	2024			2023
ASSETS
Current assets
Cash and cash equivalents	$	668,213		$	323,854
Accounts receivable, net		451,599			283,221
Inventories		24,739,437			24,288,379
Inter co trans		2,062,500			-
Other current assets		98,636			136,237
Total current assets		28,020,385			25,031,691
Non-current assets
Plant, property and equipment, net		5,437,909			5,887,278
Intangible assets, net		7,077,589			7,294,729
Other non-current assets		-			9,784
Total non-current assets		12,515,498			13,191,791
Total assets	$	40,535,883		$	38,223,482
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	12,485		$	12,512
Customer deposits		19,609			62,134
Accrued expenses and other payables		201,229			282,968
Amount due to related parties		40,511,642			39,346,051
Short-term loan		206,250			-
Total current liabilities		40,951,215			39,703,665
Non-current liabilities
Long-term loan		1,856,250			-
Total non-current liabilities		1,856,250			-
Total liabilities	$	42,807,465		$	39,703,665
Shareholders’ equity		(2,271,582	)		(1,480,183	)
Total liabilities and shareholders’ equity	$	40,535,883		$	38,223,482

	Years Ended June 30,
	2024			2023
Revenue	$	9,416,450		$	9,654,168
Expenses		10,219,025			8,890,656
Net (loss) income	$	(802,575	)	$	763,512