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Variable Interest Entities | 12 Months Ended
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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 |

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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent + Details
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- References No definition available. + Details
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