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Variable Interest Entities

3 Months Ended

Sep. 30, 2023

Variable Interest Entities [Abstract]

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 September 30, 2023 and June 30, 2023:

	September 30,			June 30,
	2023			2023

ASSETS
Current Assets
Cash and cash equivalents	$	278,236		$	323,854
Accounts receivable, net		622,237			283,221
Inventories		24,388,477			24,288,379
Other current assets		121,753			108,677
Related party receivable		-			27,560

Total Current Assets		25,410,703			25,031,691

Plant, Property and Equipment, Net		5,727,384			5,887,278
Other assets		9,734			9,784
Intangible Assets, Net		7,207,505			7,294,729
Total Assets	$	38,355,326		$	38,223,482

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	58,898		$	12,512
Customer deposits		18,126			62,134
Accrued expenses and other payables		281,690			282,968
Amount due to related parties		39,316,184			39,346,051
Total Current Liabilities		39,674,898			39,703,665
Total Liabilities	$	39,674,898			39,703,665

Stockholders’ equity		(1,319,572	)		(1,480,183	)

Total Liabilities and Stockholders’ Equity	$	38,355,326		$	38,223,482

	Three Months Ended September 30,
	2023		2022
Revenue	$	2,342,717	$	2,870,501
Expenses		2,188,446		2,658,915
Net income	$	154,271	$	211,586