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VARIABLE INTEREST ENTITIES | 12 Months Ended
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Jun. 30, 2013
Variable Interest Entities [Abstract] |
Variable Interest Entities [Text Block] |
NOTE 16 VARIABLE INTEREST ENTITIES 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 and to meet foreign ownership limitations established by the People Republic of China, effective June 16, 2013. The VIE Agreements are as follows: Entrusted Management Agreement Pursuant to the terms of a certain Entrusted Management Agreement dated June 16, 2013 among Yuxing, Jinong and the shareholder of Yuxing (the “Entrusted Management Agreement”), Yuxing and its shareholder agreed to entrust the operations and management of its business to Jinong. According to the Entrusted Management Agreement, Jinong possesses the full and exclusive right to manage Yuxing’s operations, assets and personnel, has the right to control all of Yuxing's cash flows through an entrusted bank account, is entitled to Yuxing's net profits as a management fee, is obligated to pay all of Yuxing’s payables and loan payments, and bears all losses of Yuxing. The Entrusted Management Agreement will remain in effect until (i) the parties mutually agree to terminate the agreement; (ii) the dissolution of Yuxing or (iii) Jinong acquires all of the assets or equity of Yuxing (as more fully described below under “Exclusive Option Agreement”). Exclusive Product Supply Agreement Pursuant to the terms of a certain Exclusive Product Supply Agreement dated June 16, 2013 between Yuxing and Jinong (“the Exclusive Product Supply Agreement”), Jinong is the exclusive product provider to Yuxing. Yuxing agreed to pay Jinong all fees payable for products supply prior to making any payments under the Entrusted Management Agreement. Any payment from Yuxing to Jinong must comply with applicable Chinese laws. The Exclusive Product Supply Agreement shall remain in effect until (i) the parties mutually agree to terminate the agreement; (ii) the dissolution of Yuxing or (iii) Jinong acquires Yuxing (as more fully described below under “Exclusive Option Agreement”). Shareholder’s Voting Proxy Agreement Pursuant to the terms of a certain Shareholder’s Voting Proxy Agreement dated June 16, 2013 among Jinong and the shareholder of Yuxing (the “Shareholder’s Voting Proxy Agreement”), the shareholder of Yuxing irrevocably appointed Jinong as their proxy to exercise on such shareholder’s behalf all of her voting rights as shareholder pursuant to PRC law and the Articles of Association of Yuxing, including the appointment and election of directors of Yuxing. Jinong agreed that it shall maintain a board of directors the composition of which will be the members of the board of directors of Green Nevada, except those directors that are employed solely for the purpose of satisfying listing or financing requirements of Green Nevada, if any. The Shareholder’s Voting Proxy Agreement will remain in effect until Jinong acquires all of the assets or equity of Yuxing. Exclusive Option Agreement Pursuant to the terms of a certain Exclusive Option Agreement dated June 16, 2013 among Jinong, Yuxing and the shareholder of Yuxing (the “Exclusive Option Agreement”), the shareholder of Yuxing granted Jinong an irrevocable and exclusive purchase option (the “Option”) to acquire Yuxing’s equity interests and/or remaining assets, but only to the extent that the acquisition does not violate limitations imposed by PRC law on such transactions. The Option is exercisable at any time at Jinong’s discretion so long as such exercise and subsequent acquisition of Yuxing does not violate PRC law. The consideration for the exercise of the Option is to be determined by the parties and memorialized in the future by definitive agreements setting forth the kind and value of such consideration. To the extent Yuxing shareholder receive any of such consideration, the Option requires them to transfer (and not retain) the same to Yuxing or Jinong. The Exclusive Option Agreement may be terminated by mutual agreement or by 30 days written notice by Jinong. Equity Pledge Agreement Pursuant to the terms of a certain Equity Pledge Agreement dated June 16, 2013 among Jinong and the shareholder of Yuxing (the “Pledge Agreement”), the shareholder of Yuxing pledged all of her equity interests in Yuxing, including the proceeds thereof, to guarantee all of Jinong's rights and benefits under the Entrusted Management Agreement, the Exclusive Product Supply Agreement, the Shareholder’ Voting Proxy Agreement and the Exclusive Option Agreement. Prior to termination of the Pledge Agreement, the pledged equity interests cannot be transferred without Jinong's prior written consent. The Pledge Agreement may be terminated only upon the written agreement of the parties. As a result of these contractual arrangements, Green Nevada is able to exercise control over Yuxing and was entitled to substantially all of the economic benefits of Yuxing through its subsidiary, Jinong. Therefore, Green Nevada consolidates Yuxing in accordance with ASC 810-10 (“Consolidation of Variable Interest Entities”) since the date of the VIE Agreements. The following financial statement amounts and balances of the VIE were included in the accompanying consolidated financial statements as of and for the years ended June 30:
|  | June 30, |
|  | 2013 |  | 2012 |
ASSETS |  |  |  |  |  |  |
Current Assets |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 42,975 |  | $ | 160,698 |
Accounts receivable, net |  |  | 209,194 |  |  | 129,528 |
Inventories |  |  | 15,478,654 |  |  | 9,610,047 |
Other current assets |  |  | 7,061 |  |  | 33,235 |
Advances to suppliers |  |  | 101,555 |  |  | 72,861 |
Total Current Assets |  |  | 15,839,439 |  |  | 10,006,369 |
Plant, Property and Equipment, Net |  |  | 16,180,551 |  |  | 15,968,779 |
Construction In Progress |  |  | 68,414 |  |  | . |
Intangible Assets, Net |  |  | 10,933,482 |  |  | 10,935,579 |
Total Assets |  | $ | 43,021,886 |  | $ | 36,910,727 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |
Current Liabilities |  |  |  |  |  |  |
Accounts payable |  | $ | 533,773 |  | $ | 2,521,538 |
Accrued expenses and other payables |  |  | 8,673 |  |  | 6,362 |
Amount due to related parties |  |  | 42,466,210 |  |  | 34,900,582 |
Total Current Liabilities |  |  | 43,008,656 |  |  | 37,428,482 |
Stockholders' equity (deficit) |  |  | 13,230 |  |  | (517,755) |
Total Liabilities and Stockholders' Equity |  | $ | 43,021,886 |  | $ | 36,910,727 |
|  | Years Ended June 30, |
|  | 2013 |  | 2012 |
Revenue |  | $ | 3,397,520 |  | $ | 2,082,520 |
Expenses |  |  | 2,863,798 |  |  | 2,253,516 |
Net income (loss) |  | $ | 533,722 |  | $ | (170,996) |

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