Aoxing Pharmaceutical (AOXG) 10-Q 14 May 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Mar. 31, 2014	14-May-14
Document and Entity Information	'	'
Entity Registrant Name	'AOXING PHARMACEUTICAL COMPANY, INC.	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Entity Central Index Key	'0001060426	'
Current Fiscal Year End Date	'--06-30	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Entity Common Stock, Shares Outstanding	'	49,874,822

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Jun. 30, 2013
CURRENT ASSETS:	'	'
Cash and cash equivalents	$2,390,540	$4,007,823
Accounts receivable, net of allowance for doubtful accounts of $792,632 and $663,983, respectively	4,142,911	2,842,703
Inventories, net	1,901,070	2,621,878
Prepaid expenses and other current assets	3,334,339	2,419,790
TOTAL CURRENT ASSETS	11,768,860	11,892,194
LONG-TERM ASSETS:	'	'
Property and equipment, net of accumulated depreciation	26,524,075	26,941,778
Intangible assets, net	561,387	606,643
Investment in joint venture	262,045	292,265
TOTAL LONG-TERM ASSETS	27,347,507	27,840,686
TOTAL ASSETS	39,116,367	39,732,880
CURRENT LIABILITIES:	'	'
Short-term borrowings	5,272,208	3,312,757
Accounts payable	3,762,022	3,412,344
Loan payable - bank	21,510,609	8,467,729
Current portion of loan payable - related parties	1,354,524	2,101,998
Accrued expenses and other current liabilities	3,780,643	4,408,676
TOTAL CURRENT LIABILITIES	35,680,006	21,703,504
LONG-TERM LIABILITIES:	'	'
Loan payable - related parties	1,736,206	1,561,013
Loan payable - others	2,889,983	1,403,591
Long-term bank loans	'	10,116,027
Deferred income	366,621	365,211
TOTAL LONG-TERM LIABILITIES	4,992,810	13,445,842
Stockholder's Equity	'	'
Common stock, par value $0.001, 100,000,000 shares authorized, 49,874,822 shares issued and outstanding on March 31, 2014 and 49,814,822 shares issued and outstanding on June 30, 2013	49,875	49,815
Additional paid in capital	58,310,646	58,296,906
Accumulated deficit	-61,516,838	-55,633,998
Accumulated other comprehensive income	2,983,497	2,956,846
TOTAL SHAREHOLDERS' EQUITY OF THE COMPANY	-172,820	5,669,569
NONCONTROLLING INTEREST IN SUBSIDIARIES	-1,383,629	-1,086,035
TOTAL EQUITY	-1,556,449	4,583,534
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$39,116,367	$39,732,880

CONSOLIDATED_BALANCE_SHEETS_PA

CONSOLIDATED BALANCE SHEETS PARENTHETICAL (USD $)	Mar. 31, 2014	Jun. 30, 2013
CONSOLIDATED BALANCE SHEETS	'	'
Allowance for doubtful accounts	$792,632	$663,983
Common stock par value	$0.00	$0.00
Common stock shares authorized	100,000,000	100,000,000
Common stock shares issued	49,874,822	49,814,822
Common stock shares outstanding	49,874,822	49,814,822

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Revenue	'	'	'	'
SALES	$2,445,793	$1,885,133	$9,489,708	$7,804,664
COST OF SALES	1,425,630	708,395	5,464,000	3,064,377
GROSS PROFIT	1,020,163	1,176,738	4,025,708	4,740,287
OPERATING EXPENSES:	'	'	'	'
Research and development expense	222,654	186,972	491,370	1,406,631
General and administrative expenses	798,674	491,086	2,246,628	1,857,924
Selling expenses	559,226	2,662,948	3,436,015	4,977,821
Depreciation and amortization	157,483	136,098	477,493	448,535
Impairment on intangible assets	'	'	'	614,648
TOTAL OPERATING EXPENSES	1,738,037	3,477,104	6,651,506	9,305,559
LOSS FROM OPERATIONS	-717,874	-2,300,366	-2,625,798	-4,565,272
OTHER INCOME (EXPENSE):	'	'	'	'
Interest expense, net of interest income	-1,195,471	-790,089	-3,524,563	-2,057,883
Equity in loss of joint venture, net	-49	-29,353	-31,476	-80,829
Subsidy income	'	390,458	'	390,458
TOTAL OTHER EXPENSE	-1,195,520	-428,984	-3,556,039	-1,748,254
LOSS BEFORE INCOME TAXES	-1,913,394	-2,729,350	-6,181,837	-6,313,526
Income tax expense (credit)	'	'	'	'
NET LOSS	-1,913,394	-2,729,350	-6,181,837	-6,313,526
Net loss attributed to non-controlling interest in subsidiaries	-91,257	-133,689	-298,997	-293,881
LOSS ATTRIBUTABLE TO SHAREHOLDERS OF THE COMPANY	-1,822,137	-2,595,661	-5,882,840	-6,019,645
OTHER COMPREHENSIVE INCOME (LOSS):	'	'	'	'
Foreign currency translation adjustment	-4,340	45,306	28,055	109,056
COMPREHENSIVE LOSS	-1,826,477	-2,550,355	-5,854,785	-5,910,589
Other comprehensive income (loss) attributable to non-controlling interest	-217	2,265	1,403	5,453
COMPREHENSIVE LOSS ATTRIBUTABLE TO THE COMPANY	($1,826,260)	($2,552,620)	($5,856,188)	($5,916,042)
BASIC AND DILUTED LOSS PER COMMON SHARE	($0.04)	($0.05)	($0.12)	($0.12)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING	49,850,077	49,814,822	49,850,077	49,728,178

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
OPERATING ACTIVITIES:	'	'
Net loss	($5,882,840)	($6,019,645)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	744,152	841,540
Bad debts	126,595	50,798
Common stock issued for services	13,800	291,567
Equity in loss of joint venture, net	31,476	80,829
Net loss attributable to non-controlling interests	-298,997	-293,880
Inventory markdown	'	-21,518
Impairment charge on intangible assets	'	614,648
Change in accounts receivable	-1,421,042	80,058
Change in inventories	733,887	-393,404
Change in prepaid expenses and other current assets	-908,822	-1,190,140
Change in accounts payable	337,864	-339,802
Change in accrued expenses and other current liabilities	-647,034	-250,302
NET CASH USED IN OPERATING ACTIVITIES	-7,170,961	-6,549,251
INVESTING ACTIVITIES:	'	'
Acquisition of property and equipment	-172,530	-387,827
NET CASH USED IN INVESTING ACTIVITIES	-172,530	-387,827
FINANCING ACTIVITIES:	'	'
Proceeds from bank loans	13,062,804	10,309,442
Payment of bank loans	-10,196,154	-3,965,170
Short-term borrowings, net of repayment	1,954,534	'
Payment/(proceed)of other borrowings	1,486,963	-189,296
Repayment of loans to related party	-588,773	-126,885
NET CASH PROVIDED BY FINANCING ACTIVITIES	5,719,374	6,028,091
EFFECT OF EXCHANGE RATE ON CASH	6,834	20,180
DECREASE IN CASH	-1,617,283	-888,807
CASH - BEGINNING OF PERIOD	4,007,823	3,682,743
CASH - END OF PERIOD	2,390,540	2,793,936
Supplemental disclosures of cash flow information:	'	'
Cash paid for interest	3,093,765	1,926,360
Cash paid for income taxes	'	'

1_Business_Description

1 Business Description	9 Months Ended
	Mar. 31, 2014
Notes	'
1 Business Description	'
	1                 BASIS OF PRESENTATION
	The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and pursuant to the requirements for reporting on Form 10-Q. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. However, the information included in these interim financial statements reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for the fair presentation of the consolidated financial position and the consolidated results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full year. The consolidated balance sheet as of June 30, 2013 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year 2013. These interim financial statements should be read in conjunction with that report.
	For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013 filed on October 15, 2013.

2_Business_Description_and_Sig

2 Business Description and Significant Accounting Policies	9 Months Ended
	Mar. 31, 2014
Notes	'
2 Business Description and Significant Accounting Policies	'
	2                   BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES
	Aoxing Pharmaceutical Co., Inc. (“the Company” or “AoxingPharma”) is a specialty pharmaceutical company specializing in research, development, manufacturing and distribution of a variety of narcotic, pain-management, and addiction treatment pharmaceutical products.
	As of March 31, 2014, the Company had one operating subsidiary: HebeiAoxing Pharmaceutical Co., Inc. (“Hebei”), which is organized under the laws of the People’s Republic of China (“PRC”). As of March 31, 2014, the Company owned 95% of the issued and outstanding common stock of Hebei.
	Since 2002, Hebei has been engaged in developing narcotic, pain management, and addiction treatment pharmaceutical products, building its facilities and obtaining the requisite licenses from the Chinese Government. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, Hebei now has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for manufacturing narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals throughout China of its narcotic drugs and pain medicines.
	In April 2008, Hebei completed the acquisition of 100% of the registered capital of Lerentang (“LRT”). LRT was engaged in the manufacture and distribution of Chinese traditional medicines focusing on pain management related therapeutics within China. As of June 30, 2011, the manufacturing operations of LRT had been completely integrated into Hebei. Currently over 90% of the Company’s revenues derive from one herbal extraction, obtained from the acquisition of LRT, which is used to alleviate oral/dental and bone pain.
	Investment in Joint Venture (“JV”)
	On April 26, 2010, AoxingPharma and Johnson Matthey Plc (‘JM”) entered into an agreement to establish a joint venture focused on research, development, manufacturing and marketing of active pharmaceutical ingredients for narcotics and neurological drugs for the China market. The JV represents a significant opportunity for both companies to expand their business in the rapidly growing pharmaceutical market in China. Under the terms of the agreement, Macfarlan Smith Ltd, a wholly owned subsidiary of Johnson Matthey Plc, headquartered in the United Kingdom, will contribute technology expertise and capital to the JV. Hebei will contribute capital, fixed assets and related active pharmaceutical ingredients manufacturing licenses. The JVcompany is called HebeiAoxing API Pharmaceutical Company, Ltd. (“API”). Hebei Aoxing has a 51% stake in API, while Macfarlan Smith (Hong Kong) Ltd (a wholly owned subsidiary of JM) holds 49%. Each company has equal representation on the board of directors that will oversee a management team responsible for corporate strategies and operations. The JV is located on the Hebei campus in Xinle City, 200 kilometers southwest of Beijing. On March 10, 2010, the JV obtained a business license from the City Industry & Commercial Administrative Bureau. The Company accounts for its investment in the JV under the equity method of accounting.
	Use of estimates in the preparation of financial statements
	The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates reflected in the consolidated financial statements include, but are not limited to, the recoverability of the carrying amount and estimated useful lives of long-lived assets, allowance for accounts receivable, realizable values for inventories, valuation allowance of deferred tax assets, purchase price allocation of its acquisitions and share-based compensation expenses. Management makes these estimates using the best information available at the time the estimates are made; however, actual results when ultimately realized could differ significantly from those estimates.
	Impairment of long lived assets
	In accordance with the provisions of ASC Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets,” all long-lived assets such as property, plant and equipment, land use rights and intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value.  Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable.  Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.
	Fair value measurement
	The Company has adopted ASC Topic 820, Fair Value Measurement and Disclosure, which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. It does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following:
	Level 1 - Quoted prices in active markets for identical assets or liabilities.
	Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
	Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement.
	The carrying amount of cash and cash equivalents, accounts receivable, inventories, prepaid expenses and other current assets, accounts payable and accrued expenses are reasonable estimates of their fair value because of the short term nature of these items and classified within Level 1 of the fair value Hierarchy.
	As of March 31, 2014, the Company does not have any assets or liabilities that are measured on a recurring basis at fair value. The Company’s short-term borrowings, loans payable, related party notes payable and unrelated party notes payable that are considered Level 2 financial instruments measured at fair value on a non-recurring basis as of March 31, 2014.
	The Company does not have any level 3 financial instruments. The Company uses the discounted cash flow approach when determining fair values of its non-recurring fair value measurements when required. We determine the fair value of our goodwill for purposes of comparing to the carrying value on at least an annual basis. Our goodwill has been adjusted to fair value as it is deemed to be impaired.
	Recent accounting pronouncements
	The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
	In July 2013, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update or ASU No. 2013-11, "Income Taxes (Topic740):  Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry forward, a Similar Tax Loss, or a Tax Credit Carry forward Exists (a consensus of the FASB Emerging Issues Task Force)." This ASU states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry forward, a similar tax loss, or a tax credit carry forward, except in certain situations. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application are permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The adoption of this amendment is not expected to have a material impact on the Company’s consolidated financial statements.
	In April 2014, the FASB issued ASU No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" to reduce diversity in practice for reporting discontinued operations. Under the previous guidance, any component of an entity that was a reportable segment, an operating segment, a reporting unit, a subsidiary, or an asset group was eligible for discontinued operations presentation. The revised guidance only allows disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting entity's operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded disclosure in the financial statements for discontinued operations as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. The updated guidance is effective for periods beginning after December 15, 2014. The Company currently does not have operations that are reported as discontinued operations and does not expect the adoption of this guidance to have a material effect the Company’s financial position, results of operations, or cash flows.

3_Going_Concern

3 Going Concern	9 Months Ended
	Mar. 31, 2014
Notes	'
3 Going Concern	'
	3                 GOING CONCERN
	The Company incurred a net loss of $6,181,837 and had $7,170,961 negative cash flow from operations during the nine month period ended March 31, 2014. As of March 31, 2014, the Company’s current liabilities exceeded its current assets by $23,911,146. The Company had cash and cash equivalents of $2,390,540 as of March 31, 2014. The Company’s ability to continue as a going concern is dependent on many events outside of its direct control, including, among other things, the ability to obtain future funding. The Company’s inability to generate cash flows to meet its obligations due to the uncertainty of achieving operating profitability on an annual basis and raising required funding on reasonable terms, among other factors, raises substantial doubt as to the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
	Considering the high loan balance and significant negative working capital, the management of the Company believes that the large negative working capital will improve gradually through converting $3.0 million related party debt into equity by the end of 2014, equity fund raising and improving operating results in order to sustain paying higher interests and fund on-going operations.
	The management of the Company has taken a number of actions and will continue to address this situation in order to restore the Company to a sound financial position with an appropriate business strategy going forward. During the nine month period ended March 31, 2014, the Company obtained an extension of the short term borrowing of $3.2 million from SJZ Construction Investment Corporation for another 12 months. The loan was originally due on November 3, 2013 and the new due date is November 11, 2014. The Company further obtained a $3.2 million bank loan from China Merchant Bank during the period ended March 31, 2014. In addition, the Company terminated the advertising contracts with five television stations at the end of September 2013 in order to reduce costs.
	Considering that revenue for the period ended March 31, 2014 was higher than revenue during the prior year, though new products did not make significant contributions, management believes operating cash flows will turn positive in the coming years as a result of its new marketing campaign and increased brand awareness of the main products. Management believes that the increased market demand for its main product in the near future and sales from several new products based on last year marketing effort will be sufficient to offset the increased interest expenses and generate substantial positive operating cash flows. Management also believes that the Company will have continued support from related parties, and will have the ability to continue to roll over short-term debt. Lastly, the Company also started the process of securing additional funds through both debt and equity financing and adopted various cost-saving strategies.

4_Inventories_Net

4 Inventories, Net	9 Months Ended
	Mar. 31, 2014
Notes	'
4 Inventories, Net	'
	4                  INVENTORIES, NET
	Inventories consist of the following:
		March 31,		June 30,
		2014		2013
	Work in process	$	372,098	$	1,041,267
	Raw materials		543,542		509,209
	Finished goods		985,430		1,071,402
		$	1,901,070	$	2,621,878
	The provisions for obsolete inventory as of March 31, 2014 and June 30, 2013 were $387,611 and $386,120, respectively.

5_Equitymethod_Investment_in_J

5 Equity-method Investment in Joint Venture	9 Months Ended
	Mar. 31, 2014
Notes	'
5 Equity-method Investment in Joint Venture	'
	5              EQUITY-METHOD INVESTMENT IN JOINT VENTURE
	The Company accounts for its investment in API (see Note 2), under the equity method of accounting.
	Summarized financial information for our investment in API assuming a 100% ownership interest is as follows:
			For Nine Months		For the Year
			Ended		Ended
			31-Mar-14		30-Jun-13
	Current assets	$	7,306	$	8,964
	Noncurrent assets		830,116		844,268
	Current liabilities		382,434	$	338,761
	Noncurrent liabilities		-		-
	Equity		454,988	$	514,471
	Revenue		-		-
	General and administrative expenses		-61,718	$	-224,989
	Net loss	$	-61,718	$	-224,989

6_Accrued_Expenses_and_Other_C

6 Accrued Expenses and Other Current Liabilities	9 Months Ended
	Mar. 31, 2014
Notes	'
6 Accrued Expenses and Other Current Liabilities	'
	6              ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
	Accrued expenses and taxes consist of the following:
		March 31,		June 30,
		2014			2013
	Accrued salaries and benefits	$	805,321		$	867,961
	Accrued interest		1,066,285			698,320
	Accrued taxes		194,436			255,275
	Deposit payable		631,065			429,610
	Due to employees		46,696			46,516
	Advance from customers		344,856			516,183
	Other accounts payable		669,023			711,486
	Other accrued expenses and current liabilities		22,961			883,325
		$	3,780,643		$	4,408,676

7_Loan_Payable_Bank

7 Loan Payable - Bank	9 Months Ended
	Mar. 31, 2014
Notes	'
7 Loan Payable - Bank	'
	7              LOAN PAYABLE – BANK
	Loan payable – bank consist of the following loans collateralized by assets of the company:
		March 31,		June 30,
		2014			2013
	Bank Note in the amount of 30 million RMB with Bank of Communications of China bearing an annual floating rate of 7.872%, set to be 20% higher than the interest rate of the China Peoples Bank rate, initially made on April 29, 2011 and renewed again on April 18, 2013 for one year maturing on April 17, 2014	$	4,866,654		$	4,847,936
	Bank Note in the amount of 20 million RMB with Postal Savings Bank bearing an 7.8%interest per annum, made on June 18, 2013 for one year maturing on June 17, 2014		3,244,436			3,231,958
	Bank Note in the amount of 20 million RMB with China Merchant Bank bearing an annual floating rate of 7.8%, initially made on  December 27, 2013 for one year maturing on December 26, 2014	$	3,244,436		$	-
	Bank Note in the amount of 42.6 million RMB with Beijing International Trust Co., Ltd bearing an 18.0% interest per annum, made on September 24, 2012 for two year maturing on September 23, 2014		6,910,647			387,835
	Bank Note in the amount of 20 million RMB with Beijing International Trust Co., Ltd bearing an 16.5% interest per annum, made on December 20, 2012 and will mature on September 21, 2014		3,244,436			-
		$	21,510,609		$	8,467,729

8_Loan_Payable_Related_Parties

8 Loan Payable - Related Parties	9 Months Ended
	Mar. 31, 2014
Notes	'
8 Loan Payable - Related Parties	'
	8            LOAN PAYABLE – RELATED PARTIES
	Loan payable – related parties consists of loans from shareholders, officers, and other related parties, bearing interest at an average rate of 17.00% and 15.88% per annum as of March 31, 2014 and June 30, 2013 respectively. Loans will mature as follows:
		March 31,		June 30,
		2014		2013
	Within one year		$  1,354,524	$  2,101,998
	1 – 2 years		-	1,561,013
	2 – 3 years		1,736,206	-
	Total		3,090,730	3,663,011
	Less current portion		-1,354,524	-2,101,998
	Loan payable-related parties, non-current		$  1,736,206	$  1,561,013

9_Loan_Payable_Other

9 Loan Payable - Other	9 Months Ended
	Mar. 31, 2014
Notes	'
9 Loan Payable - Other	'
	9              LOAN PAYABLE – OTHER
	Loan payable – other consist of loans from unrelated third-parties, bearing interest at an average rate of 10.85% and 17.86% per annum as of March 31, 2014 and June 30, 2013 respectively. Loans will mature as following:
		March 31,		June 30,
		2014		2013
	Within one year		$               -		$               -
	1 – 2 years		-		1,403,591
	2 – 3 years		2,889,983		-
	Total		2,889,983		1,403,591
	Less current portion		-		-
	Loan payable-other, non-current		$2,889,983		$1,403,591

10_Issuance_of_Common_Stock

10 Issuance of Common Stock	9 Months Ended
	Mar. 31, 2014
Notes	'
10 Issuance of Common Stock	'
	10           Issuance of Common Stock
	No new shares were issued by the Company during the period ended March 31, 2014.

11_Taxes

11 Taxes	9 Months Ended
	Mar. 31, 2014
Notes	'
11 Taxes	'
	11           TAXES
	The Company’s Chinese subsidiaries are governed by the Income Tax Law of the People’s Republic of China concerning private-run enterprises, which are generally subject to tax at a statutory rate of 25% on income reported in the statutory financial statements after appropriate tax adjustments.
	The reconciliation of income tax at the U.S. statutory rate to the Company’s effective tax rate is as follows:
		For nine months ended March 31,
		2014		2013
	Tax at U.S. Statutory rate	$	-2,163,643	$	-1,254,462
	Tax rate difference between China and U.S.		634,777		-358,609
	Change in Valuation Allowance		1,528,866		1,613,071
	Effective tax rate	$	-	$	-
	The provisions of income taxes (credit) are summarized as follows:
		For nine months ended March 31,
		2014			2013
	Current	$	-		$	-
	Deferred - U.S.		-68,510			-152,571
	Deferred - China		-1,460,356			-1,460,500
	Valuation allowance - U.S.		68,510			152,571
	Valuation allowance - China.		1,460,356			1,460,500
	Total	$	-		$	-
	The deferred tax assets are substantially related to loss carry forwards for the past 5 years under Chinese tax law. The Company determined a full valuation allowance was necessary as of March 31, 2014 and June 30, 2013.

12_Concentrations

12 Concentrations	9 Months Ended
	Mar. 31, 2014
Notes	'
12 Concentrations	'
	12           CONCENTRATIONS
	Sales to three major customers were 6%, 6% and 5% of total sales for the three months ended March 31, 2014.  Sales to three major customers accounted for 49%, 25% and 10% of total sales for the three months ended March 31, 2013. The decrease in concentration in major customers was due to a change of sales strategy from distribution channel to direct sales. As of March 31, 2014, three major customers accounted for 6%, 4% and 3% of Company’s accounts receivable balance. As of March 31, 2013, two major customers accounted for 13% and 4% of the Company’s accounts receivable balance.
	Sales of two major products represented approximately 91% and 3% of total sales for the three months ended March 31, 2014 and March 31, 2013.

13_Subsequent_Events

13 Subsequent Events	9 Months Ended
	Mar. 31, 2014
Notes	'
13 Subsequent Events	'
	13           SUBSEQUENT EVENTS
	In accordance with ASC 855, “Subsequent Events”, the Company has evaluated subsequent events that have occurred through the date of issuance of these financial statements and has determined that there was no material event that occurred after the date of the balance sheets included in this report.

2_Business_Description_and_Sig1

2 Business Description and Significant Accounting Policies: Investment in Joint Venture ("JV") (Policies)	9 Months Ended
	Mar. 31, 2014
Policies	'
Investment in Joint Venture ("JV")	'
	Investment in Joint Venture (“JV”)
	On April 26, 2010, AoxingPharma and Johnson Matthey Plc (‘JM”) entered into an agreement to establish a joint venture focused on research, development, manufacturing and marketing of active pharmaceutical ingredients for narcotics and neurological drugs for the China market. The JV represents a significant opportunity for both companies to expand their business in the rapidly growing pharmaceutical market in China. Under the terms of the agreement, Macfarlan Smith Ltd, a wholly owned subsidiary of Johnson Matthey Plc, headquartered in the United Kingdom, will contribute technology expertise and capital to the JV. Hebei will contribute capital, fixed assets and related active pharmaceutical ingredients manufacturing licenses. The JVcompany is called HebeiAoxing API Pharmaceutical Company, Ltd. (“API”). Hebei Aoxing has a 51% stake in API, while Macfarlan Smith (Hong Kong) Ltd (a wholly owned subsidiary of JM) holds 49%. Each company has equal representation on the board of directors that will oversee a management team responsible for corporate strategies and operations. The JV is located on the Hebei campus in Xinle City, 200 kilometers southwest of Beijing. On March 10, 2010, the JV obtained a business license from the City Industry & Commercial Administrative Bureau. The Company accounts for its investment in the JV under the equity method of accounting.

2_Business_Description_and_Sig2

2 Business Description and Significant Accounting Policies: Use of Estimates in The Preparation of Financial Statements (Policies)	9 Months Ended
	Mar. 31, 2014
Policies	'
Use of Estimates in The Preparation of Financial Statements	'
	Use of estimates in the preparation of financial statements
	The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates reflected in the consolidated financial statements include, but are not limited to, the recoverability of the carrying amount and estimated useful lives of long-lived assets, allowance for accounts receivable, realizable values for inventories, valuation allowance of deferred tax assets, purchase price allocation of its acquisitions and share-based compensation expenses. Management makes these estimates using the best information available at the time the estimates are made; however, actual results when ultimately realized could differ significantly from those estimates.

2_Business_Description_and_Sig3

2 Business Description and Significant Accounting Policies: Impairment of Long Lived Assets (Policies)	9 Months Ended
	Mar. 31, 2014
Policies	'
Impairment of Long Lived Assets	'
	Impairment of long lived assets
	In accordance with the provisions of ASC Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets,” all long-lived assets such as property, plant and equipment, land use rights and intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value.  Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable.  Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.

2_Business_Description_and_Sig4

2 Business Description and Significant Accounting Policies: Fair Value Measurement (Policies)	9 Months Ended
	Mar. 31, 2014
Policies	'
Fair Value Measurement	'
	Fair value measurement
	The Company has adopted ASC Topic 820, Fair Value Measurement and Disclosure, which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. It does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following:
	Level 1 - Quoted prices in active markets for identical assets or liabilities.
	Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
	Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement.
	The carrying amount of cash and cash equivalents, accounts receivable, inventories, prepaid expenses and other current assets, accounts payable and accrued expenses are reasonable estimates of their fair value because of the short term nature of these items and classified within Level 1 of the fair value Hierarchy.
	As of March 31, 2014, the Company does not have any assets or liabilities that are measured on a recurring basis at fair value. The Company’s short-term borrowings, loans payable, related party notes payable and unrelated party notes payable that are considered Level 2 financial instruments measured at fair value on a non-recurring basis as of March 31, 2014.
	The Company does not have any level 3 financial instruments. The Company uses the discounted cash flow approach when determining fair values of its non-recurring fair value measurements when required. We determine the fair value of our goodwill for purposes of comparing to the carrying value on at least an annual basis. Our goodwill has been adjusted to fair value as it is deemed to be impaired.

2_Business_Description_and_Sig5

2 Business Description and Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	9 Months Ended
	Mar. 31, 2014
Policies	'
Recent Accounting Pronouncements	'
	Recent accounting pronouncements
	The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
	In July 2013, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update or ASU No. 2013-11, "Income Taxes (Topic740):  Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry forward, a Similar Tax Loss, or a Tax Credit Carry forward Exists (a consensus of the FASB Emerging Issues Task Force)." This ASU states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry forward, a similar tax loss, or a tax credit carry forward, except in certain situations. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application are permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The adoption of this amendment is not expected to have a material impact on the Company’s consolidated financial statements.
	In April 2014, the FASB issued ASU No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" to reduce diversity in practice for reporting discontinued operations. Under the previous guidance, any component of an entity that was a reportable segment, an operating segment, a reporting unit, a subsidiary, or an asset group was eligible for discontinued operations presentation. The revised guidance only allows disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting entity's operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded disclosure in the financial statements for discontinued operations as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. The updated guidance is effective for periods beginning after December 15, 2014. The Company currently does not have operations that are reported as discontinued operations and does not expect the adoption of this guidance to have a material effect the Company’s financial position, results of operations, or cash flows.

4_Inventories_Net_Schedule_of_

4 Inventories, Net: Schedule of Inventory, Current (Tables)	9 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Inventory, Current	'
		March 31,		June 30,
		2014		2013
	Work in process	$	372,098	$	1,041,267
	Raw materials		543,542		509,209
	Finished goods		985,430		1,071,402
		$	1,901,070	$	2,621,878

5_Equitymethod_Investment_in_J1

5 Equity-method Investment in Joint Venture: Equity Method Investments (Tables)	9 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Equity Method Investments	'
			For Nine Months		For the Year
			Ended		Ended
			31-Mar-14		30-Jun-13
	Current assets	$	7,306	$	8,964
	Noncurrent assets		830,116		844,268
	Current liabilities		382,434	$	338,761
	Noncurrent liabilities		-		-
	Equity		454,988	$	514,471
	Revenue		-		-
	General and administrative expenses		-61,718	$	-224,989
	Net loss	$	-61,718	$	-224,989

6_Accrued_Expenses_and_Other_C1

6 Accrued Expenses and Other Current Liabilities: Schedule of Accounts Payable and Accrued Liabilities (Tables)	9 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Accounts Payable and Accrued Liabilities	'
		March 31,		June 30,
		2014			2013
	Accrued salaries and benefits	$	805,321		$	867,961
	Accrued interest		1,066,285			698,320
	Accrued taxes		194,436			255,275
	Deposit payable		631,065			429,610
	Due to employees		46,696			46,516
	Advance from customers		344,856			516,183
	Other accounts payable		669,023			711,486
	Other accrued expenses and current liabilities		22,961			883,325
		$	3,780,643		$	4,408,676

7_Loan_Payable_Bank_Schedule_o

7 Loan Payable - Bank: Schedule of Long-term Debt Instruments (Tables)	9 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Long-term Debt Instruments	'
		March 31,		June 30,
		2014			2013
	Bank Note in the amount of 30 million RMB with Bank of Communications of China bearing an annual floating rate of 7.872%, set to be 20% higher than the interest rate of the China Peoples Bank rate, initially made on April 29, 2011 and renewed again on April 18, 2013 for one year maturing on April 17, 2014	$	4,866,654		$	4,847,936
	Bank Note in the amount of 20 million RMB with Postal Savings Bank bearing an 7.8%interest per annum, made on June 18, 2013 for one year maturing on June 17, 2014		3,244,436			3,231,958
	Bank Note in the amount of 20 million RMB with China Merchant Bank bearing an annual floating rate of 7.8%, initially made on  December 27, 2013 for one year maturing on December 26, 2014	$	3,244,436		$	-
	Bank Note in the amount of 42.6 million RMB with Beijing International Trust Co., Ltd bearing an 18.0% interest per annum, made on September 24, 2012 for two year maturing on September 23, 2014		6,910,647			387,835
	Bank Note in the amount of 20 million RMB with Beijing International Trust Co., Ltd bearing an 16.5% interest per annum, made on December 20, 2012 and will mature on September 21, 2014		3,244,436			-
		$	21,510,609		$	8,467,729

8_Loan_Payable_Related_Parties1

8 Loan Payable - Related Parties: Schedule of Related Party Transactions (Tables)	9 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Related Party Transactions	'
		March 31,		June 30,
		2014		2013
	Within one year		$  1,354,524	$  2,101,998
	1 – 2 years		-	1,561,013
	2 – 3 years		1,736,206	-
	Total		3,090,730	3,663,011
	Less current portion		-1,354,524	-2,101,998
	Loan payable-related parties, non-current		$  1,736,206	$  1,561,013

9_Loan_Payable_Other_Schedule_

9 Loan Payable - Other: Schedule of Debt - Other (Tables)	9 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Debt - Other	'
		March 31,		June 30,
		2014		2013
	Within one year		$               -		$               -
	1 – 2 years		-		1,403,591
	2 – 3 years		2,889,983		-
	Total		2,889,983		1,403,591
	Less current portion		-		-
	Loan payable-other, non-current		$2,889,983		$1,403,591

11_Taxes_Schedule_of_Effective

11 Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)	9 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Effective Income Tax Rate Reconciliation	'
		For nine months ended March 31,
		2014		2013
	Tax at U.S. Statutory rate	$	-2,163,643	$	-1,254,462
	Tax rate difference between China and U.S.		634,777		-358,609
	Change in Valuation Allowance		1,528,866		1,613,071
	Effective tax rate	$	-	$	-

11_Taxes_Schedule_of_Component

11 Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables)	9 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Components of Income Tax Expense (Benefit)	'
		For nine months ended March 31,
		2014		2013
	Current	$	-	$	-
	Deferred - U.S.		-68,510		-152,571
	Deferred - China		-1,460,356		-1,460,500
	Valuation allowance - U.S.		68,510		152,571
	Valuation allowance - China.		1,460,356		1,460,500
	Total	$	-	$	-

2_Business_Description_and_Sig6

2 Business Description and Significant Accounting Policies (Details)	9 Months Ended
	Mar. 31, 2014
Details	'
Noncontrolling Interest, Ownership Percentage by Parent	95.00%
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest	100.00%
Concentration Risk, Percentage	90.00%

3_Going_Concern_Details

3 Going Concern (Details) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2013	Jun. 30, 2012
Details	'	'	'	'	'	'
NET LOSS	$1,913,394	$2,729,350	$6,181,837	$6,313,526	'	'
NET CASH USED IN OPERATING ACTIVITIES	'	'	7,170,961	6,549,251	'	'
Working Capital Deficit	23,911,146	'	23,911,146	'	'	'
Cash and cash equivalents	$2,390,540	$2,793,936	$2,390,540	$2,793,936	$4,007,823	$3,682,743

4_Inventories_Net_Schedule_of_1

4 Inventories, Net: Schedule of Inventory, Current (Details) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Details	'	'
Inventory, Work in Process, Gross	$372,098	$1,041,267
Inventory, Raw Materials, Gross	543,542	509,209
Inventory, Finished Goods, Gross	985,430	1,071,402
Inventories, net	$1,901,070	$2,621,878

4_Inventories_Net_Details

4 Inventories, Net (Details) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Details	'	'
Inventory Valuation Reserves	$387,611	$386,120

5_Equitymethod_Investment_in_J2

5 Equity-method Investment in Joint Venture: Equity Method Investments (Details) (USD $)	9 Months Ended	12 Months Ended
	Mar. 31, 2014	Jun. 30, 2013
Details	'	'
Equity Method Investment, Summarized Financial Information, Current Assets	$7,306	$8,964
Equity Method Investment, Summarized Financial Information, Noncurrent Assets	830,116	844,268
Equity Method Investment, Summarized Financial Information, Current Liabilities	382,434	338,761
Equity Method Investment Summarized Financial Information, Equity	454,988	514,471
Equity Method Investment, Summarized Financial Information, Cost of Sales	-61,718	-224,989
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss)	($61,718)	($224,989)

6_Accrued_Expenses_and_Other_C2

6 Accrued Expenses and Other Current Liabilities: Schedule of Accounts Payable and Accrued Liabilities (Details) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Details	'	'
Accrued Salaries, Current	$805,321	$867,961
Accrued interest	1,066,285	698,320
Accrued Income Taxes, Current	194,436	255,275
Deposit Liability, Current	631,065	429,610
Other Employee Related Liabilities, Current	46,696	46,516
Customer Advances, Current	344,856	516,183
Accounts Payable, Other, Current	669,023	711,486
Other Accrued Liabilities, Current	22,961	883,325
Accrued expenses and other current liabilities	$3,780,643	$4,408,676

7_Loan_Payable_Bank_Schedule_o1

7 Loan Payable - Bank: Schedule of Long-term Debt Instruments (Details) (USD $)	Mar. 31, 2014		Jun. 30, 2013
Loans Payable To Bank Current	$21,510,609		$8,467,729
Bank of Communications of China	'		'
Loans Payable To Bank Current	4,866,654	[1]	4,847,936	[1]
Postal Savings Bank	'		'
Loans Payable To Bank Current	3,244,436	[2]	3,231,958	[2]
Beijing International Trust Co Ltd	'		'
Loans Payable To Bank Current	3,244,436	[3]	'
Loans Payable to Bank Current, Loan 2	6,910,647	[4]	387,835	[4]
Loans Payable to Bank Current, Loan 3	$3,244,436	[5]	'
[1]	Bank Note in the amount of 30 million RMB with Bank of Communications of China bearing an annual floating rate of 7.872%, set to be 20% higher than the interest rate of the China People Bank rate, initially made on April 29, 2011 and renewed again on April 18, 2013 for one year maturing on April 17, 2014
[2]	Bank Note in the amount of 20 million RMB with Postal Savings Bank bearing an 7.8% interest per annum, made on June 18, 2013 for one year maturing on June 17, 2014
[3]	Bank Note in the amount of 1.2 million RMB with Beijing International Trust Co., Ltd bearing an 18.0% interest per annum, made on September 24, 2012 for one year maturing on December 20, 2013
[4]	Bank Note in the amount of 42.6 million RMB with Beijing International Trust Co., Ltd bearing 18.0% interest per annum, made on September 24, 2012 for two year maturing on September 23, 2014
[5]	Bank Note in the amount of 20 million RMB with Beijing International Trust Co., Ltd bearing 16.5% interest per annum, made on December 20, 2012 for maturing on September 21, 2014

8_Loan_Payable_Related_Parties2

8 Loan Payable - Related Parties (Details)	Mar. 31, 2014	Jun. 30, 2013
Details	'	'
Accounts Payable Related Parties Interest Bearing Interest Rate	17.00%	15.88%

8_Loan_Payable_Related_Parties3

8 Loan Payable - Related Parties: Schedule of Related Party Transactions (Details) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Due to Related Parties	$3,090,730	$3,663,011
Current portion of loan payable - related parties	-1,354,524	-2,101,998
Loan payable - related parties	1,736,206	1,561,013
Within One Year	'	'
Due to Related Parties	1,354,524	2,101,998
1-2 Years	'	'
Due to Related Parties	'	1,561,013
2-3 Years	'	'
Due to Related Parties	$1,736,206	'

9_Loan_Payable_Other_Details

9 Loan Payable - Other (Details)	Mar. 31, 2014	Jun. 30, 2013
Details	'	'
Accounts Payable, Interest-bearing, Interest Rate	10.85%	17.86%

9_Loan_Payable_Other_Schedule_1

9 Loan Payable - Other: Schedule of Debt - Other (Details) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Other Loans Payable	$2,889,983	$1,403,591
Loan payable - others	2,889,983	1,403,591
1-2 Years	'	'
Other Loans Payable	'	1,403,591
2-3 Years	'	'
Other Loans Payable	$2,889,983	'

11_Taxes_Schedule_of_Effective1

11 Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $)	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Details	'	'
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	($2,163,643)	($1,254,462)
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount	634,777	-358,609
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	$1,528,866	$1,613,071

11_Taxes_Schedule_of_Component1

11 Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $)	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Details	'	'
Deferred Federal Income Tax Expense (Benefit)	($68,510)	($152,571)
Deferred Foreign Income Tax Expense (Benefit)	-1,460,356	-1,460,500
Deferred Taxes, Business Combination, Valuation Allowance, Available to Reduce Income Tax Expense	68,510	152,571
Deferred Taxes Business Combination Valuation Allowance Available To Reduce Income Tax Expense China	$1,460,356	$1,460,500

12_Concentrations_Details

12 Concentrations (Details)	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Details	'	'	'	'
Concentration Risk, Customer	'three major customers were 6%, 6% and 5% of total sales	'three major customers accounted for 49%, 25% and 10% of total sales	'	'
Concentration Risk, Other Risk	'	'	'three major customers accounted for 6%, 4% and 3% of Company’s accounts receivable balance	'two major customers accounted for 13% and 4% of the Company’s accounts receivable balance
Concentration Risk, Product	'two major products represented approximately 91% and 3% of total sales	'two major products represented approximately 91% and 3% of total sales	'	'