Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 9-May-14 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'SKBI | ' |
Entity Common Stock, Shares Outstanding | ' | 7,604,800 |
Entity Registrant Name | 'SKYSTAR BIO-PHARMACEUTICAL CO | ' |
Entity Central Index Key | '0001076939 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS(USD ($)) | Mar. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS: | ' | ' |
Cash | $6,848,905 | $8,142,296 |
Accounts receivable, net of allowance for doubtful accounts of $960,578 (Unaudited) and $602,243 as of March 31, 2014 and December 31, 2013, respectively | 12,663,549 | 11,009,498 |
Inventories | 25,265,783 | 25,903,586 |
Deposits, prepaid expenses and other receivables | 1,608,405 | 2,134,163 |
Prepayments to suppliers | 40,541,475 | 41,061,144 |
Loans receivable | 1,046,835 | 0 |
Deferred tax assets | 403,372 | 364,425 |
Total current assets | 88,378,324 | 88,615,112 |
PROPERTY, PLANT AND EQUIPMENT, NET | 30,417,653 | 28,269,155 |
CONSTRUCTION-IN-PROGRESS | 6,470,772 | 9,284,947 |
OTHER ASSETS: | ' | ' |
Long-term prepayments | 4,592,751 | 4,633,614 |
Long-term prepayments for acquisitions | 0 | 183,344 |
Intangible assets, net | 5,130,454 | 5,237,255 |
Total other assets | 9,723,205 | 10,054,213 |
Total assets | 134,989,954 | 136,223,427 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 4,615,614 | 3,303,531 |
Other payable and accrued expenses | 6,551,419 | 6,467,605 |
Short-term loans | 5,680,500 | 10,640,500 |
Deposits from customers | 1,991,907 | 1,877,211 |
Taxes payable | 2,852,844 | 1,315,486 |
Due to related parties | 1,962,238 | 1,361,548 |
Total current liabilities | 23,654,522 | 24,965,881 |
OTHER LIABILITIES: | ' | ' |
Deferred government grant | 795,270 | 802,130 |
Purchase option liability | 78,960 | 62,440 |
Total other liabilities | 874,230 | 864,570 |
Total liabilities | 24,528,752 | 25,830,451 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
SHAREHOLDERS' EQUITY | ' | ' |
Preferred stock, $0.001 par value, 50,000,000 shares authorized, No Series “A†shares authorized. 48,000,000 Series “B†shares authorized. No Series “B†shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 40,000,000 shares authorized, 7,604,800 shares issued and outstanding as of March 31, 2014 (Unaudited) and December 31, 2013 | 7,605 | 7,605 |
Paid-in capital | 37,690,867 | 37,631,142 |
Statutory reserves | 5,952,692 | 5,952,692 |
Retained earnings | 55,965,604 | 54,990,154 |
Accumulated other comprehensive income | 10,844,434 | 11,811,383 |
Total shareholders’ equity | 110,461,202 | 110,392,976 |
Total liabilities and shareholders’ equity | $134,989,954 | $136,223,427 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Allowance for doubtful accounts | $960,578 | $602,243 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 7,604,800 | 7,604,800 |
Common stock, shares outstanding | 7,604,800 | 7,604,800 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized | 0 | 0 |
Series B Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized | 48,000,000 | 48,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
REVENUE, net | $6,832,588 | $5,530,741 |
COST OF REVENUE | 4,009,403 | 2,930,886 |
GROSS PROFIT | 2,823,185 | 2,599,855 |
OPERATING EXPENSES: | ' | ' |
Research and development costs | 4,213 | 461 |
Selling expenses | 370,208 | 317,836 |
General and administrative expenses | 1,276,417 | 1,211,273 |
Total operating expenses | 1,650,838 | 1,529,570 |
INCOME FROM OPERATIONS | 1,172,347 | 1,070,285 |
OTHER INCOME (EXPENSE): | ' | ' |
Other income (expense), net | 154,919 | -187 |
Interest income | 170,665 | 148,845 |
Interest expense | -75,934 | -189,392 |
Change in fair value of purchase option liability | -16,520 | 4,466 |
Total other income (expense), net | 233,130 | -36,268 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,405,477 | 1,034,017 |
PROVISION FOR INCOME TAXES | 430,027 | 321,284 |
NET INCOME | 975,450 | 712,733 |
OTHER COMPREHENSIVE INCOME: | ' | ' |
Foreign currency translation adjustment | -966,949 | 550,883 |
COMPREHENSIVE INCOME | $8,501 | $1,263,616 |
EARNINGS PER SHARE: | ' | ' |
Basic (in dollars per share) | $0.13 | $0.09 |
Diluted (in dollars per share) | $0.13 | $0.09 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES: | ' | ' |
Basic (in shares) | 7,676,268 | 7,613,712 |
Diluted (in shares) | 7,700,734 | 7,613,712 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(USD ($)) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $975,450 | $712,733 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Depreciation | 400,291 | 313,561 |
Amortization | 62,477 | 60,872 |
Provision for doubtful accounts | 366,218 | 351,534 |
Share based compensation | 59,725 | 4,340 |
Change in fair value of purchase option liability | 16,520 | -4,466 |
Deferred tax assets | -42,380 | 0 |
Change in operating assets and liabilities | ' | ' |
Accounts receivable | -2,127,566 | -1,725,889 |
Inventories | 419,398 | -557,269 |
Deposits, prepaid expenses and other receivables | 513,005 | 292,476 |
Prepayments to suppliers | 169,771 | -9,696,136 |
Accounts payable | 1,350,410 | 1,023,288 |
Other payables and accrued expenses | 135,167 | -339,030 |
Deferred government grants | 0 | -159,320 |
Deposits from customers | 131,733 | 28,061 |
Taxes payable | 1,560,250 | -288,655 |
Due to related parties | 606,813 | 201,325 |
Net cash provided by (used in) operating activities | 4,597,282 | -9,782,575 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Refund of long-term prepayments | 184,387 | 0 |
Loans to third parties | -1,054,704 | 0 |
Payments on construction-in-progress | -53,195 | 0 |
Net cash used in investing activities | -923,512 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from short-term loans | 0 | 4,779,600 |
Repayment of short-term loans | -4,905,600 | -2,389,800 |
Net cash (used in) provided by financing activities | -4,905,600 | 2,389,800 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | -61,561 | 50,421 |
DECREASE IN CASH | -1,293,391 | -7,342,354 |
CASH, beginning of period | 8,142,296 | 11,321,848 |
CASH, end of period | 6,848,905 | 3,979,494 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ' | ' |
Cash paid for income tax | 0 | 0 |
Cash paid for interest | 129,129 | 181,426 |
Non-cash investing activities | ' | ' |
Construction-in-progress transferred to property, plant and equipment | $2,787,566 | $0 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Paid-in Capital [Member] | Retained earnings Statutory reserves [Member] | Retained earnings Unrestricted [Member] | Accumulated other comprehensive income [Member] |
BALANCE at Dec. 31, 2013 | $110,392,976 | $7,605 | $37,631,142 | $5,952,692 | $54,990,154 | $11,811,383 |
BALANCE (in shares) at Dec. 31, 2013 | ' | 7,604,800 | ' | ' | ' | ' |
Foreign currency translation | -966,949 | 0 | 0 | 0 | 0 | -966,949 |
Share based compensation | 59,725 | 0 | 59,725 | 0 | 0 | 0 |
Net income | 975,450 | 0 | 0 | 0 | 975,450 | 0 |
BALANCE at Mar. 31, 2014 | $110,461,202 | $7,605 | $37,690,867 | $5,952,692 | $55,965,604 | $10,844,434 |
BALANCE (in shares) at Mar. 31, 2014 | ' | 7,604,800 | ' | ' | ' | ' |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
Note 1 - ORGANIZATION | |
Organization and description of business | |
Skystar Bio-Pharmaceutical Company (“Skystar” or the “Company”) was incorporated in Nevada on September 24, 1998. Since its acquisition on November 7, 2005 of Skystar Bio-Pharmaceutical (Cayman) Holdings Co., Ltd. (“Skystar Cayman”), a Cayman Islands company, the Company has been engaged in the research, development, production, marketing, and sales of veterinary healthcare and medical care products. | |
All current operations of the Company are in the People’s Republic of China (“China” or the “PRC”). | |
All of the Company’s operations are carried out by its subsidiaries in China and Xi’an Tianxing Bio-Pharmaceutical Co., Limited (“Xi’an Tianxing”), a PRC joint stock company that the Company controls through contractual arrangements originally between Skystar Cayman and Xi’an Tianxing. On March 10, 2008, the Company entered into a series of agreements transferring all of the rights and obligations of Skystar Cayman under the contractual arrangements to Sida Biotechnology (Xi’an) Co., Ltd. (“Sida”), a PRC company. Sida is the wholly owned subsidiary of Fortunate Time International Limited (“Fortunate Time”), a Hong Kong company and wholly owned subsidiary of Skystar Cayman. Xi’an Tianxing also has a wholly owned subsidiary, Shanghai Siqiang Biotechnological Co., Ltd. (“Shanghai Siqiang”), a PRC company. | |
On September 18, 2009, Skystar Bio-Pharmaceutical Inc. (“Skystar California”) was incorporated in California and became a wholly owned subsidiary of Skystar. On December 20, 2010, Skystar California was dissolved. | |
On April 21, 2010, Kunshan Sikeda Biotechnology Co., Ltd. (“Kunshan Sikeda”) was incorporated in Kunshan, Jiangsu Province, China with a registered capital of $81,150 (RMB 500,000), of which Xi’an Tianxing and Sida each contributed $40,575 (RMB 250,000). Kunshan Sikeda is jointly owned by Xi’an Tianxing and Sida. On July 31, 2013, Kunshan Sikeda was dissolved. | |
On May 7, 2010, Fortunate Time formed Skystar Biotechnology (Kunshan) Co., Limited (“Skystar Kunshan”) in Kunshan, Jiangsu Province, China with a registered capital of $15,000,000, of which $2,250,000 was paid by Fortunate Time in cash. On March 26, 2014, the Company received the government approval of extension for payment of the remaining registered capital of $12,750,000 by May 6, 2015. Skystar Kunshan was formed in connection with an acquisition of assets to meet part of the registered capital requirements, and was intended to be a micro-organism manufacturing facility for the Company once the acquisition was complete. The asset acquisition was completed in September 2011. | |
On August 11, 2010, Sida became the parent company of Skystar Biotechnology (Jingzhou) Co., Limited (“Skystar Jingzhou”), a company established in Jingzhou, Hubei Province, China on February 5, 2010, with registered capital of approximately $4.2 million (RMB 26,000,000) paid by Sida. | |
On March 15, 2011, Xi’an Tianxing formed Xi’an Sikaida Bio-products Co., Ltd. (“Xi’an Sikaida”) with a registered capital of approximately $1,623,000 (RMB 10,000,000 ) paid by Xi’an Tianxing. | |
Hereinafter, Skystar, Skystar Cayman, Fortunate Time, Sida, Xi’an Tianxing, Skystar Kunshan, Skystar Jingzhou, Shanghai Siqiang, and Xi’an Sikaida are sometimes collectively referred to as the “Company”. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Significant Accounting Policies [Text Block] | ' | |||||||||||||
Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
Basis of Presentation | ||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”) applicable to interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made. The accompanying results of operations are not necessarily indicative of the operating results that may be expected for the entire year ending December 31, 2014. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes thereto of the Company, which are included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013 filed with the Securities and Exchange Commission (“SEC”). | ||||||||||||||
Principles of consolidation | ||||||||||||||
The accompanying condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries, and its variable interest entities (“VIEs”). All significant inter-company transactions and balances between the Company, its subsidiaries, and its VIEs have been eliminated in consolidation. | ||||||||||||||
The Company has evaluated the relationship with Xi’an Tianxing and Xi’an Tianxing’s wholly owned subsidiaries, Xi’an Sikaida and Shanghai Siqiang. As a result of the contractual arrangements which obligate Sida to absorb all of the risk of loss from Xi’an Tianxing’s activities and enable Sida to receive all of its expected residual returns, the Company is the primary beneficiary of these VIEs and thus it accounts for Xi’an Tianxing, Xi’an Sikaida and Shanghai Siqiang as VIEs under the Financial Accounting Standards Board’s (“FASB”) interpretation on consolidation of variable interest entities. Accordingly, the Company consolidates the results, assets, and liabilities of Xi’an Tianxing, Xi’an Sikaida and Shanghai Siqiang. | ||||||||||||||
Use of estimates | ||||||||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time to complete the underlying transactions. Actual results may differ from these estimates in amounts that may be material to the consolidated financial statements and accompanying notes. Significant estimates and assumptions made by the Company are used for, but not limited to the allowance for doubtful accounts, useful lives of property, plant and equipment and intangible assets, assumptions used in assessing impairment for long-lived assets and the fair value for derivative instruments. | ||||||||||||||
Foreign currency translation | ||||||||||||||
The Company uses the United States dollar (“U.S. dollar”) for financial reporting purposes and the Chinese Renminbi (“RMB”) as its functional currency. The Company’s subsidiaries and VIEs maintain their books and records in their functional currency, being the primary currency of the economic environment in which their operations are conducted. | ||||||||||||||
The Company translates the subsidiaries’ and VIEs’ assets and liabilities into U.S. dollars using the applicable exchange rates prevailing at the balance sheet dates, and the statements of comprehensive income and cash flows are translated at average exchange rates during the reporting period. As a result, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the subsidiaries’ and VIEs’ financial statements are recorded as accumulated other comprehensive income. | ||||||||||||||
The quotation of the exchange rates does not imply free convertibility of RMB to other foreign currencies. All foreign exchange transactions continue to take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rate quoted by the People’s Bank of China. | ||||||||||||||
Approval of foreign currency payments by the People’s Bank of China or other institutions requires submitting a payment application form together with invoices, shipping documents, and signed contracts. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. | ||||||||||||||
Fair values of financial instruments | ||||||||||||||
ASC Topic 820, Fair Value Measurement and Disclosures , defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy, which requires classification based on observable and unobservable inputs when measuring fair value. Certain current assets and current liabilities are financial instruments. Management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and, if applicable, their current interest rates are equivalent to interest rates currently available. The three levels of valuation hierarchy are defined as follows: | ||||||||||||||
¨ | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||
¨ | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. | |||||||||||||
¨ | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. | |||||||||||||
The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2014 and December 31, 2013: | ||||||||||||||
Carrying | Fair Value Measurement at | |||||||||||||
Value at | March 31, 2014 | |||||||||||||
March 31, | ||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | |||||||||||
Purchase option liability | $ | 78,960 | $ | — | $ | 78,960 | $ | — | ||||||
Carrying | Fair Value Measurement at | |||||||||||||
Value at | December 31, 2013 | |||||||||||||
December 31, | ||||||||||||||
2013 | Level 1 | Level 2 | Level 3 | |||||||||||
Purchase option liability | $ | 62,440 | $ | — | $ | 62,440 | $ | — | ||||||
Below is the reconciliation for the purchase option liability changes from January 1, 2014 to March 31, 2014: | ||||||||||||||
Balance, January 1, 2014 | $ | 62,440 | ||||||||||||
Change in fair value | 16,520 | |||||||||||||
Balance, March 31, 2014 | $ | 78,960 | ||||||||||||
Revenue recognition | ||||||||||||||
Revenue of the Company is primarily derived from the sales of veterinary healthcare and medical care products in China. Sales are recognized when the following four revenue criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed or determinable, and collectability is reasonably assured. Sales are presented net of value added tax (“VAT”). No estimated allowance for sales returns is reflected in these consolidated financial statements as sales returns historically have been insignificant. | ||||||||||||||
There are two types of sales upon which revenue is recognized: | ||||||||||||||
a. | Credit sales: revenue is recognized when the products have been delivered to the customers. | |||||||||||||
b. | Full payment before delivery: Cash received is recorded as “deposits from customers” and revenue is recognized when the products have been delivered to the customers. | |||||||||||||
Cash | ||||||||||||||
Cash includes currency on hand and demand deposits with banks with an original maturity of three months or less. | ||||||||||||||
Accounts receivable | ||||||||||||||
Accounts receivable are stated at cost, net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses, if any, resulting from the failure of customers to make required payments. The Company reviews the accounts receivable on a periodic basis and makes allowances where there is doubt as to the collectibility of individual balances. In evaluating the collectibility of individual receivable balances, the Company considers many factors, including the age of the balance, the customer’s payment history, its current credit-worthiness and current economic trends. | ||||||||||||||
Inventories | ||||||||||||||
Inventories are stated at the lower of cost as determined on a weighted-average basis, or market. Inventories include purchases and related costs incurred in bringing the inventories to their present location and condition. Management reviews inventories for obsolescence and cost in excess of net realizable value and records a write-down against the inventory and additional cost of goods sold when the carrying value exceeds net realizable value. | ||||||||||||||
Property, plant and equipment | ||||||||||||||
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Expenditures for maintenance and repairs that do not improve or extend the useful lives of the assets are charged to operations as incurred, while renewals and betterments are capitalized. Gains and losses on disposals are included in the results of operations. Estimated useful lives of the assets are as follows: | ||||||||||||||
Estimated useful life | ||||||||||||||
Buildings and improvements | Shorter of lease | |||||||||||||
term or 10-40 years | ||||||||||||||
Machinery and equipment | 5-10 years | |||||||||||||
Office equipment and furniture | 3-10 years | |||||||||||||
Vehicles | 5-10 years | |||||||||||||
Management assesses the carrying value of property, plant and equipment annually or more often when factors indicating impairment are present, and reduces the carrying value of such assets by the amount of the impairment. The Company determines the existence of such impairment by measuring the expected future cash flows (undiscounted) and comparing such amount to the net asset carrying value. An impairment loss, if it exists, is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. Based on its review, management believes that, as of March 31, 2014 and December 31, 2013, there was no impairment of its property, plant and equipment. | ||||||||||||||
Construction-in-progress | ||||||||||||||
Construction-in-progress includes direct costs of construction of factory buildings. Interest incurred during the period of construction, if significant, is capitalized. All other interest is expensed as incurred. Construction-in-progress is not depreciated until such time as the asset is completed and put into service. | ||||||||||||||
Intangible assets | ||||||||||||||
Land use rights — Land use rights represent the amounts paid to acquire a long-term interest to utilize the land underlying the Company’s facilities. This type of arrangement is common for the use of land in the PRC. Land use rights are amortized on the straight-line method over the contractual lease terms. The land use right granted to the Company’s Huxian facility was for 50 years. The land use right granted to the Company’s Jingzhou facility was 30 years. The land use right granted to the Company’s Kunshan facility was for 41 years. | ||||||||||||||
Technological know-how — Purchased technological know-how includes confidential formulas, manufacturing processes, and technical and procedural manuals, and is amortized using the straight-line method over an estimated useful life of between five to eleven years that reflects the period over which such confidential formulas, manufacturing processes, and technical and procedural manuals are kept confidential by the Company as agreed between the Company and the selling parties. | ||||||||||||||
Impairment of intangible assets —Intangible assets are evaluated at least annually for impairment if events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Based on the existence of one or more indicators of impairment, the Company measures any impairment of long-lived assets by comparing the asset's estimated fair value with its carrying value, based on cash flow methodology. Based on its review, the Company believes that, as of March 31, 2014 and December 31, 2013, there was no impairment of its intangible assets. | ||||||||||||||
Comprehensive income | ||||||||||||||
Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive income is comprised of the foreign currency translation adjustments. | ||||||||||||||
Shipping and handling costs | ||||||||||||||
Shipping and handling costs related to costs of goods sold are included in selling expenses, and totaled $192,048 and $203,849 for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||
Advertising costs | ||||||||||||||
Advertising costs are charged to selling expenses as incurred. Advertising costs were insignificant for both the quarters ended March 31, 2014 and 2013, respectively. | ||||||||||||||
Research and development costs | ||||||||||||||
Research and development costs are charged to expense as incurred and include salaries, professional fees, and technical support fees related to such efforts. | ||||||||||||||
Income taxes | ||||||||||||||
The Company accounts for income taxes using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion or all of a deferred tax asset will not be realized. | ||||||||||||||
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. As of March 31, 2014 and December 31, 2013, there are no unrecognized tax benefits, and the Company does not expect a significant change in tax benefits in the next 12 months. Penalties and interest levied by taxing authorities, if any, are classified as income tax expense in the year incurred. No significant penalties or interest relating to income taxes have been incurred during the three months ended March 31, 2014 and 2013. | ||||||||||||||
According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational or other errors made by the taxpayer or the withholding agent. The statute of limitations extends to five years under special circumstances. In the case of transfer pricing issues, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. Accordingly, the income tax returns of the Company’s PRC operating subsidiaries for the years ended December 31, 2008 through 2013 are open to examination by the PRC state and local tax authorities. | ||||||||||||||
Government grants | ||||||||||||||
The Company’s subsidiaries in China receive government subsidies from local Chinese government agencies in accordance with relevant Chinese government policies. In general, the Company presents the government subsidies received as part of other income unless the subsidies received are earmarked to compensate for a specific expense, which have been accounted for by offsetting the specific expense, such as research and development expense or interest expenses. Unearned government subsidies received are deferred for recognition until the criteria for such recognition could be met. | ||||||||||||||
For research and development expenses, the Company matches and offsets the government grants with the expenses of the research and development activities as specified in the grant approval document in the corresponding period when such expenses are incurred. | ||||||||||||||
No government grants were offset against the finance costs for the three months ended March 31, 2014 and 2013. | ||||||||||||||
Government grants of $154,902 and $nil were received and recognized as other income during the three months ended March 31, 2014 and 2013. | ||||||||||||||
Stock-based compensation | ||||||||||||||
The Company records and reports stock-based compensation by measuring the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which services are received. Stock compensation for stock granted to non-employees is determined as the fair value of the consideration received or the fair value of equity instruments issued, whichever is more reliably measured. | ||||||||||||||
Earnings per share | ||||||||||||||
Basic earnings per share is based upon the weighted-average number of common shares outstanding. Diluted earnings per share is based on the assumption that all dilutive convertible shares, including convertible preferred shares, warrants and stock options were converted or exercised. Further, the method requires that stock dividends or stock splits be accounted for retroactively if the stock dividends or stock splits occur during the period or after the end of the period but before the release of the financial statements, by considering it outstanding for the entirety of each period presented. Diluted earnings per share is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. | ||||||||||||||
Related parties | ||||||||||||||
Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of such principal owners and management, and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. | ||||||||||||||
Operating segments | ||||||||||||||
While the chief operating decision-makers monitor the revenue streams of the various products lines, operations are managed and financial performance is evaluated on a Company-wide basis. Product lines are aggregated into one as operating results for all product lines are similar. Accordingly, all of the major product lines (micro-organism, veterinary medicine, feed additives and vaccines) are considered by management to be aggregated in one reportable operating segment. | ||||||||||||||
As the Company primarily generates its revenues from customers in the PRC, no geographical segments are presented. | ||||||||||||||
Reclassification | ||||||||||||||
Certain amounts included in the 2013 consolidated statements of comprehensive income has been reclassified to conform to the 2014 financial statement presentation as follows; | ||||||||||||||
The Company has separately presented interest income of $148,845 on the face of consolidated statements of comprehensive income for the period ended March 31, 2013, instead of presenting it net of interest expenses. | ||||||||||||||
As a result of such reclassification, interest expense, net for the three months ended March 31, 2014, has changed from $40,547 to $189,392. | ||||||||||||||
The change in due to related parties of $201,325 was classified into cash flows from financing activities in the Company’s condensed consolidated statements of cash flows for the three months ended March 31, 2013. The Company has reclassified this amount as component of cash flows to operating activities. | ||||||||||||||
As a result of such reclassification, net cash provided by financing activities for the three months ended March 31, 2013 has changed from $2,591,125 to $2,389,800 and net cash used in operating activities has changed from $9,983,900 to $9,782,575. | ||||||||||||||
Recently issued accounting pronouncements | ||||||||||||||
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-05, Foreign Currency Matters, (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (ASU 2013-05), to resolve a diversity in accounting for the cumulative translation adjustment of foreign currency upon derecognition of a foreign subsidiary or group of assets. ASU 2013-05 requires the parent to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Further, ASU 2013-05 clarified that the parent should apply the guidance in subtopic 810-10 if there is a sale of an investment in a foreign entity, including both (1) events that result in the loss of a controlling financial interest in a foreign entity and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. The Company adopted ASU 2013-05 prospectively in its first quarter of fiscal 2014, and it did not have a significant impact on its consolidated results of operations and financial condition. | ||||||||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740) (ASU 2013-11). The amendments in this update provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. These amendments provide that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The Company adopted ASU 2013-11 effective January 1, 2014 and it did not have a significant impact on its consolidated results of operations and financial condition. | ||||||||||||||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. | ||||||||||||||
CONCENTRATIONS_AND_CREDIT_RISK
CONCENTRATIONS AND CREDIT RISK | 3 Months Ended |
Mar. 31, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Concentration Risk Disclosure [Text Block] | ' |
Note 3 - CONCENTRATIONS AND CREDIT RISK | |
The Company’s operations are all carried out in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. | |
Financial instruments which subject the Company to concentration of credit risk consist of cash and accounts receivable, prepayments to suppliers and others. Balances at financial institutions or state-owned banks within the PRC are not covered by insurance. The Company has not experienced any losses in such accounts. The Company provides unsecured credit terms for sales to customers and places unsecured prepayments for purchase to suppliers. As a result, there are credit risks with the accounts receivable and prepayments to suppliers . | |
For the three months ended March 31, 2014 and 2013, all of the Company’s sales occurred in the PRC. No major customers accounted for more than 10% of the Company’s total revenues. All accounts receivable at March 31, 2014 and December 31, 2013 are from customers located in the PRC. | |
The Company’s six largest vendors accounted for approximately 71% and 72% of the Company’s total purchases, respectively, for the three months ended March 31, 2014 and 2013, respectively. No other vendors accounted for more than 10% of the Company’s total purchases. As of March 31, 2014 and December 31, 2013, prepayments of $32,801,071 and $32,094,767 were made to the six largest vendors, respectively, for raw materials and packing materials purchases. | |
The Company had one product that accounted for 32% and 16% of the Company’s total revenues for the three months ended March 31, 2014 and 2013, respectively. No other products accounted for more than 10% of the Company’s total sales. | |
ACCOUNTS_RECEIVABLE_NET
ACCOUNTS RECEIVABLE, NET | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accounts Receivable Disclosure [Abstract] | ' | |||||||
Accounts Receivable Disclosure [Text Block] | ' | |||||||
Note 4 - ACCOUNTS RECEIVABLE, NET | ||||||||
Accounts receivable consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accounts receivable | $ | 13,624,127 | $ | 11,611,741 | ||||
Allowance for doubtful accounts | -960,578 | -602,243 | ||||||
Accounts receivable, net | $ | 12,663,549 | $ | 11,009,498 | ||||
The following table presents the movement of the allowance for doubtful accounts: | ||||||||
Balance, January 1, 2014 | $ | 602,243 | ||||||
Addition | 366,218 | |||||||
Recovery | — | |||||||
Translation adjustment | -7,883 | |||||||
Balance, March 31, 2014 | $ | 960,578 | ||||||
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
Note 5 – INVENTORIES | ||||||||
Inventories consist of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 21,970,441 | 23,001,461 | |||||
Packing materials | 350,799 | 396,067 | ||||||
Work-in-process | 152,884 | 23,140 | ||||||
Finished goods | 2,717,505 | 2,409,083 | ||||||
Other | 74,154 | 73,835 | ||||||
Total | $ | 25,265,783 | 25,903,586 | |||||
No write-down of inventories was recorded for the three months ended March 31, 2014 and 2013. | ||||||||
DEPOSITS_PREPAID_EXPENSES_AND_
DEPOSITS, PREPAID EXPENSES AND OTHER RECEIVABLES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Deposits and Prepaid Expenses Disclosure [Abstract] | ' | |||||||
Deposits and Prepaid Expenses Disclosure [Text Block] | ' | |||||||
Note 6 - DEPOSITS, PREPAID EXPENSES AND OTHER RECEIVABLES | ||||||||
Deposits, prepaid expenses and other receivables are comprised of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Other prepayments | $ | 365,055 | $ | 478,144 | ||||
Deposits placed with guarantors (note 13) | 486,900 | 491,100 | ||||||
Interest receivable (notes 7 and 12) | 168,718 | 497,844 | ||||||
Other receivables | 587,732 | 667,075 | ||||||
Total | $ | 1,608,405 | $ | 2,134,163 | ||||
PREPAYMENTS_TO_SUPPLIERS
PREPAYMENTS TO SUPPLIERS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Prepayments For Raw Materials Purchasing [Abstract] | ' | |||||||
Prepayments For Raw Materials Purchasing [Text Block] | ' | |||||||
Note 7 – PREPAYMENTS TO SUPPLIERS | ||||||||
Prepayments to suppliers are comprised of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Prepayments for raw materials | $ | 39,438,992 | $ | 39,937,944 | ||||
Prepayments for packaging materials | 1,102,483 | 1,123,200 | ||||||
Total | $ | 40,541,475 | $ | 41,061,144 | ||||
As part of the Company’s strategy to reduce inventory costs, the Company maintains a balance for prepayments to suppliers in order to secure favorable pricing for raw materials. As inventory is received throughout the period, this balance will fluctuate with the business operations. | ||||||||
Starting from January 1, 2013, the Company began to charge two major suppliers interest at an annual rate of 2.0% on the unused prepayments for raw materials. Starting from January 1, 2014, in addition to these two major suppliers, the Company began to charge another supplier interest at an annual rate of 2.0% on the unused prepayments for raw materials. As of March 31, 2014 and December 31, 2013, prepayments to these suppliers were $32,199,192 and $31,953,084, respectively. For the three months ended March 31, 2014 and 2013, $162,205 and $118,182, respectively, of interest income was recognized on these prepayments. The unpaid interest balance of $160,995 and $497,844 as of March 31, 2014 and December 31, 2013, respectively, was included in “Deposits, Prepaid Expenses and Other Receivables” (note 6). | ||||||||
PROPERTY_PLANT_AND_EQUIPMENT_N
PROPERTY, PLANT AND EQUIPMENT, NET | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment, Net [Text Block] | ' | |||||||
Note 8 - PROPERTY, PLANT AND EQUIPMENT, NET | ||||||||
Property, plant and equipment consist of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Buildings and improvements | $ | 28,033,999 | $ | 27,703,872 | ||||
Machinery and equipment | 8,261,929 | 6,093,533 | ||||||
Office equipment and furniture | 334,800 | 337,688 | ||||||
Vehicles | 606,755 | 611,989 | ||||||
Total | 37,237,483 | 34,747,082 | ||||||
Less: accumulated depreciation | -6,819,830 | -6,477,927 | ||||||
Plant and equipment, net | $ | 30,417,653 | $ | 28,269,155 | ||||
Depreciation expense was $400,291 and $313,561 for the three months ended March 31, 2014 and 2013, respectively. | ||||||||
As of March 31, 2014 and December 31, 2013, property, plant and equipment with a carrying amount of $3,191,746 and $19,969,335, respectively, were pledged against the Company’s short-term and long-term loans. | ||||||||
CONSTRUCTIONINPROGRESS
CONSTRUCTION-IN-PROGRESS | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Construction In Progress Disclosure [Abstract] | ' | ||||||||||||
Construction In Progress Disclosure [Text Block] | ' | ||||||||||||
Note 9 - CONSTRUCTION-IN-PROGRESS | |||||||||||||
Construction-in-progress (“CIP”) relates to facilities being built in Xi’an, Jingzhou and Kunshan. | |||||||||||||
Xi’an facility | |||||||||||||
Xi’an Tianxing has a vaccine facility and animal laboratory being built in Huxian, Xi’an. | |||||||||||||
In 2011, the Company started two projects at the vaccine facility to modify air filtration, water treatment, and other facility changes based on recommendations by outside experts hired by the Company to advise on the Good Manufacturing Practices (“GMP”) qualification process for the vaccine facility. In September 2012, the China’s Ministry of Agriculture (“MOA”) physically inspected this facility and deemed the facility GMP compliant. Following physical inspection, the MOA’s inspection team recommended that the Office of the Working Committee proceed with Stage 2 of its GMP certification process. On December 26, 2013, the MOA granted the GMP certificate for this new facility which is valid for five years, and the facility started to launch trial production in the quarter ended March 31, 2014. Vaccine facility of $2,462,966 was transferred to property, plant and equipment during the three months ended March 31, 2014. The facility is currently in the process of applying for individual product permits from the government. The Company expects to complete the application and launch the normal production in the second half of 2014. | |||||||||||||
In 2011, the Company started a facility improvement project in the amount of approximately $324,600 for the Huxian Animal Laboratory. The facility is a supporting project to the Huxian vaccine facility. The project was completed and passed GMP inspection in December 2013. The cost of the animal laboratory of $324,600 was transferred to property, plant and equipment during the three months ended March 31, 2014. The Company expects this facility to become operational once the Huxian vaccine facility launches its manufacturing in the second half of 2014. | |||||||||||||
Jingzhou facility | |||||||||||||
In 2011, the Company started a facility improvement project to expand the veterinary medicine production capacity at the Jingzhou facility. The project includes plant construction and water supply and drainage and has an estimated total cost of $1,704,150, of which $1,203,130 had been incurred as of March 31, 2014. Due to the revision in the project blueprint to comply with GMP requirements, the project was temporarily halted. The Company expects the project will be resumed in the second quarter of 2014 and be completed by the end of the fourth quarter of 2014. | |||||||||||||
Kunshan facility | |||||||||||||
In 2011, the Company started a supporting project at the Kunshan micro-organism facility that includes the construction and installation of plumbing, sewer, electrical, HVAC, fire protection and alarm system, drainage, office, lab, road construction, parking, and landscaping. As of December 31, 2013, the construction and installation of these facilities were completed, inspected and accepted. However, the construction-in-progress of $5,267,642 has not been transferred to property, plant and equipment as the Kunshan micro-organism facility was not operational at this point. During the third quarter of 2013, the Company contracted with an unrelated third party to purchase machinery and equipment at a total consideration of approximately $7,303,500, of which $3,482,958 was paid and was included in “Long-term prepayments” (note 10) as of March 31, 2014. The Company expects the purchase and installation of this equipment will be completed by the end of the third quarter of 2014. | |||||||||||||
No depreciation is provided for construction-in-progress until such time as the assets are completed and placed into service. | |||||||||||||
The construction projects the Company was in the progress of completing are as follows: | |||||||||||||
Total in CIP | |||||||||||||
as of | |||||||||||||
Project | March 31, | Estimated Cost to | Estimated | Estimated | |||||||||
2014 | Complete | Total Cost | Completion Date | ||||||||||
Jingzhou veterinary medication facility | $ | 1,203,130 | $ | 501,020 | $ | 1,704,150 | Fourth quarter of 2014 | ||||||
Kunshan micro-organism facility | 5,267,642 | 7,241,039 | 12,508,681 | Construction - completed, Installation of machinery and equipment – Third quarter of 2014 | |||||||||
Total | $ | 6,470,772 | $ | 7,742,059 | $ | 14,212,831 | |||||||
As of March 31, 2014 and December 31, 2013, the Company had construction in progress amounting to $6,470,772 and $9,284,947, respectively. Interest expense of $53,195 and $nil has been capitalized for construction in progress for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||
LONGTERM_PREPAYMENTS
LONG-TERM PREPAYMENTS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Long Term Prepayments Disclosure [Abstract] | ' | |||||||
Long Term Prepayments Disclosure [Text Block] | ' | |||||||
Note 10 - LONG-TERM PREPAYMENTS | ||||||||
Long-term prepayments consist of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Deposits for equipment purchase and land use rights | $ | 3,836,884 | $ | 3,871,228 | ||||
Construction deposits | 386,224 | 366,688 | ||||||
Prepayments for R&D project | 363,552 | 389,556 | ||||||
Deposits for other | 6,091 | 6,142 | ||||||
Long-term prepayments | $ | 4,592,751 | $ | 4,633,614 | ||||
Long-term prepayments for acquisitions | $ | - | $ | 183,344 | ||||
As of March 31, 2014 and December 31, 2013, deposits for potential acquisitions totaled $Nil and $183,344, respectively, all of which was held by an unrelated third party engaged to facilitate potential acquisition projects. | ||||||||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Intangible Assets Disclosure [Text Block] | ' | |||||||
Note 11 – INTANGIBLE ASSETS | ||||||||
Intangible assets consist of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Land use rights | $ | 4,909,577 | $ | 4,951,927 | ||||
Technological know-how | 2,596,800 | 2,619,200 | ||||||
Total | 7,506,377 | 7,571,127 | ||||||
Less: accumulated amortization | -2,375,923 | -2,333,872 | ||||||
Intangible assets, net | $ | 5,130,454 | $ | 5,237,255 | ||||
For the three months ended March 31, 2014 and 2013, the amortization expense for intangibles amounted to $62,477 and $60,872, respectively. | ||||||||
Amortization expense expected for the next five years and thereafter is as follows: | ||||||||
Years ending December 31, | Amount | |||||||
2014 | $ | 186,032 | ||||||
2015 | 248,042 | |||||||
2016 | 248,042 | |||||||
2017 | 248,042 | |||||||
2018 | 248,042 | |||||||
Thereafter | 3,952,254 | |||||||
Total | $ | 5,130,454 | ||||||
As of March 31, 2014 and December 31, 2013, land use rights with a carrying amount of $1,136,461 and $1,529,960, respectively, were pledged against the Company’s short-term loans. | ||||||||
LOANS_RECEIVABLE
LOANS RECEIVABLE | 3 Months Ended |
Mar. 31, 2014 | |
Receivables [Abstract] | ' |
Loans Receivable Disclosure [Text Block] | ' |
Note 12 – LOANS RECEIVABLE | |
On January 2, 2014, the Company entered a loan agreement with Shaanxi Feilong Logistics Co., Ltd., (“Feilong”), the Company’s major logistics provider, to lend up to $1,298,400 (RMB 8,000,000) to Feilong. This loan agreement expires on May 31, 2014 with an annual interest rate of 6%. During the three months ended March 31, 2014, Feilong borrowed a total amount of $1,046,835 (RMB 6,450,000) from the Company. Interest income earned on this unsecured loan amounted to $7,781 for the three months ended March 31, 2014. The unpaid interest balance of $7,723 as of March 31, 2014 was included in “Deposits, Prepaid Expenses and Other Receivables” (note 6). | |
SHORTTERM_LOANS
SHORT-TERM LOANS | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||
Short-term Debt [Text Block] | ' | ||||||||||||||||||
Note 13 – SHORT-TERM LOANS | |||||||||||||||||||
On January 16, 2013, the Company obtained a one year loan with Industrial Bank Co. Ltd. Xi’an branch for $4,869,000 (RMB 30,000,000) at an annual interest rate of 6.6%. This loan was secured by the Company’s land use rights and manufacturing plant located in Huxian County. This loan was also personally guaranteed by the Company’s Chairman and CEO and his wife. On January 15, 2014, the loan was fully repaid. | |||||||||||||||||||
On April 16, 2013, the Company obtained a one year loan from May 27, 2013 to May 26, 2014 with Postal Savings Bank of China Xi’an Branch for $3,246,000 (RMB 20,000,000) at an annual interest rate determined by using the People's Bank of China floating benchmark lending rate over the same period plus 20% of that rate, which was 7.2% at March 31, 2014. This loan is guaranteed by Xi’an Investment and Financing Guarantee Co., Ltd. For this guarantee, the Company is required to pay $58,158 (RMB 360,000) of fees to Xi’an Investment and Financing Guarantee Co., Ltd. and 10% of the loan or $324,600 (RMB 2,000,000) is required to be kept by Xi’an Investment and Financing Guarantee Co., Ltd. to serve as collateral until the loan is repaid. This loan is secured by the Company’s office buildings located in Xi’an, Shaanxi Province and the manufacturing equipment in Huxian County. The Company’s Chairman and CEO, his wife, and two other company’s managers have provided personal guarantees to Xi’an Investment and Financing Guarantee Co., Ltd. for the repayment of the loan. | |||||||||||||||||||
On June 13, 2013, the Company obtained a one year loan from June 20, 2013 to June 19, 2014 with Industrial and Commercial Bank of China (ICBC) Songzi Branch for $811,500 (RMB 5,000,000) at an annual interest rate determined by using the People's Bank of China floating benchmark lending rate over the same period plus 30% of that rate, which was 7.8% at March 31, 2014. The Company is originally required to keep 10% of the loan or $81,150 (RMB 500,000) with the bank as collateral. During the fourth quarter of 2013, the collateral was waived. This loan is secured by the Company’s buildings and land use rights in Jingzhou, Hubei Province. | |||||||||||||||||||
On September 10, 2013, the Company entered into a loan agreement with its Chairman and CEO. Under the agreement, the Chairman and CEO obtained a one year personal bank loan from September 12, 2013 to September 11, 2014 with Bank of Beijing of $1,623,000 (RMB 10,000,000) and lent the entire loan proceeds to the Company. The interest and repayment terms of the loan from the Chairman and CEO are identical to those of the personal bank loan. The annual interest rate is determined by using the prime rate over the same period plus 30% of that rate, which was 7.8% at the date that the loan was issued. The Company agrees to bear all the costs and expenses associated with the personal bank loan. The personal bank loan is guaranteed by Xi’an Investment and Financing Guarantee Co., Ltd. For this guarantee, the CEO is required to (i) pay $29,434 (RMB 180,000) of fees to Xi’an Investment and Financing Guarantee Co., Ltd. This cost has been paid and recorded as an expense of the Company using the effective interest method for the three months ended March 31, 2014; and (ii) place 10% of the loan or $162,300 (RMB 1,000,000) at Xi’an Investment and Financing Guarantee Co., Ltd. to serve as collateral until the loan is repaid. The Company had placed such a deposit with Xi’an Investment and Financing Guarantee Co., Ltd. as of March 31, 2014. The personal bank loan is also secured by the Chairman and CEO’s real estate properties and the Company’s office buildings and machineries located in Xi’an. | |||||||||||||||||||
On April 14, 2014, the Company entered into a six-month Banker’s Acceptance agreement with Chang’an Bank for $7,790,400 (RMB 48,000,000) at a six-month interest rate of 3%. The Banker’s Acceptance was issued on April 21, 2014 and secured by pledged deposits placed with Chang’an Bank of $3,895,200 (RMB 24,000,000), and the Company’s land use rights and manufacturing plant located in Huxian County with a carrying value of $16,811,260 as of March 31, 2014. This Banker’s Acceptance was also personally guaranteed by the Company’s Chairman and CEO and his wife. The fee to cash the Banker’s Acceptance is 0.05% of the face value of this Banker’s Acceptance or $3,895 (RMB 24,000). Pursuant to this Bank’s Acceptance, loans of $7,790,400 (RMB 48,000,000) were drawn down as of April 21, 2014. | |||||||||||||||||||
Outstanding short-term loans consisted of the following: | |||||||||||||||||||
March 31, 2014 | December 31, 2013 | Interest | |||||||||||||||||
Bank | Amt RMB | Amt USD | Amt RMB | Amt USD | Due Date | Rate | |||||||||||||
Industrial Bank Co. Ltd. Xi’an Branch | - | $ | - | 30,000,000 | $ | 4,911,000 | 1/15/14 | 6.6 | % | ||||||||||
Postal Savings Bank of China Xi’an Branch | 20,000,000 | 3,246,000 | 20,000,000 | 3,274,000 | 5/26/14 | -2 | |||||||||||||
ICBC Songzi Branch | 5,000,000 | 811,500 | 5,000,000 | 818,500 | 6/19/14 | -1 | |||||||||||||
Related-party Individual – Chairman and CEO | 10,000,000 | 1,623,000 | 10,000,000 | 1,637,000 | 9/11/14 | 7.8 | % | ||||||||||||
Total | 35,000,000 | $ | 5,680,500 | 65,000,000 | $ | 10,640,500 | |||||||||||||
-1 | People's Bank of China floating benchmark lending rate over the same period plus 30%, which was 7.8% at March 31, 2014. | ||||||||||||||||||
-2 | People's Bank of China floating benchmark lending rate over the same period plus 20%, which was 7.2% at March 31, 2014. | ||||||||||||||||||
Interest expense incurred and associated with the short-term loans amounted to $129,129 and $189,392 for the three months ended March 31, 2014 and 2013, respectively, $53,195 and $nil of which has been capitalized as part of construction-in-progress in 2014 and 2013, respectively. | |||||||||||||||||||
DEFERRED_GOVERNMENT_GRANT
DEFERRED GOVERNMENT GRANT | 3 Months Ended |
Mar. 31, 2014 | |
Deferred Government Grant Disclosure [Abstract] | ' |
Deferred Government Grant Disclosure [Text Block] | ' |
Note 14 - DEFERRED GOVERNMENT GRANT | |
The subsidies for Good Manufacturing Practice projects were granted by Shaanxi provincial government and Xi’an municipal government which may require the subsidies to be repaid. As of March 31, 2014 and December 31, 2013, the subsidies were RMB 2,500,000, equivalent to $405,750 and $409,250, respectively. | |
The subsidies granted by Xi’an City Science and Technology Bureau and Xi’an City High-Tech Industrial Development Zone are required to be used exclusively for the fish disease multi associated anti-idiotypic monoclonal antibody vaccine project during the development period from January 2012 through December 2014. As of March 31, 2014 and December 31, 2013, 70% of the subsidies or RMB 4,200,000, equivalent to $681,660 and $687,540, respectively had been received and RMB 3,000,000 equivalent to $486,900 and $491,100 has been expensed on this project and were accounted for as an offset against deferred government grant as of March 31, 2014 and December 31, 2013, respectively. | |
The interest subsidies granted by Xi’an municipal government were required to be used exclusively for the chicken coccidia vaccine project in the third quarter of 2013. As of March 31, 2014 and December 31, 2013, the subsidies of RMB 1,200,000, equivalent to $194,760 and $196,440 had been received and nil has been expensed on this project. | |
CAPITAL_TRANSACTIONS
CAPITAL TRANSACTIONS | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||
Note 15 - CAPITAL TRANSACTIONS | |||||||||||
Stock-based compensation | |||||||||||
On March 31, 2012, the Company entered into an agreement with a non-executive director to grant him an aggregate 28,000 shares of restricted common stock each year under the Company’s 2010 Stock Incentive Plan, vested in four equal quarterly installments of 7,000 shares. The closing price per share of the stock on the next business day of each of the grant date in 2012 and 2013 was $2.95 and $1.73 respectively. The Board of Directors approved his agreement with the Company on March 10, 2014. As of March 31, 2014 and December 31, 2013, 56,000 shares and 49,000 shares, respectively, were vested and to be issued to this non-executive director. | |||||||||||
On May 26, 2009, the Company agreed to issue 5,556 shares of common stock to a director at the beginning of each term of his directorship, which runs from May 26, 2013 to May 25, 2014. In accordance with the agreement between the Company and this director, this director must continue to serve as a member of the Board until his successor is duly elected and qualified in order to receive the shares. The closing price per share of the stock on the next business day of each of the grant date in 2012 and 2013 was $2.39 and $1.20 respectively. As of March 31, 2014 and December 31, 2013, 11,112 shares were vested and to be issued to this non-executive director. | |||||||||||
On July 29, 2011, the Company entered into a one-year employment agreement with its CFO effective July 29, 2011. Under the agreement, he is entitled to receive an aggregate 8,000 shares of common stock, 4,000 shares of which shall be issuable on the 6 month anniversary and the remaining 4,000 shares of which shall be issuable on the 12 month anniversary. The closing price per share on the grant date was $4.20. On July 29, 2012, the Company entered into another one-year employment agreement with the CFO effective July 29, 2012. Under the agreement, he is entitled to receive an aggregate 8,000 shares of common stock, vested in four equal quarterly installments of 2,000 shares. The closing price per share of the stock on the next business day of the grant date was $2.17. On July 29, 2013, the Company entered into another one-year employment agreement with the CFO effective July 29, 2013. Under the agreement, he is entitled to receive an aggregate 8,000 shares of common stock, vested in four equal quarterly installments of 2,000 shares. The closing price per share of the stock on the next business day of the grant date in 2013 and 2012 was $1.37 and $2.17 respectively. The Board of Directors ratified and approved the CFO’s employment agreement with the Company on March 10, 2014. As of March 31, 2014 and December 31, 2013, 12,000 shares and 10,000 shares were vested and to be issued to this executive, respectively. | |||||||||||
The Company entered into a five-year employment agreement with its Chief Executive Officer on May 5, 2008. After the agreement was expired on December 31, 2013, the Company renewed the employment agreement with its Chief Executive Officer for another five year period effective January 1, 2014. Under the agreement, he is entitled to receive an aggregate 50,000 shares of common stock , vested in four equal quarterly installments of 12,500 shares. The closing price per share of the stock on the next business day of each of the grant date in 2014 was $3.59. The Board of Directors ratified and approved the CEO’s employment agreement with the Company on March 10, 2014. As of March 31, 2014, 12,500 shares were vested and to be issued to this executive. | |||||||||||
The Company recorded $59,725 and $4,340 share based compensation for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||
Equity Compensation Plan | |||||||||||
On December 8, 2009, the Company’s board of directors approved a stock incentive plan for officers, directors, employees and consultants entitled the “Skystar Bio-Pharmaceutical Company 2010 Stock Incentive Plan” (the “2010 Plan”). The maximum number of shares that may be issued under the 2010 Plan is 700,000 shares of common stock. The 2010 Plan was approved by the Company’s stockholders on December 31, 2009, and awards may be granted thereunder until December 7, 2019. On May 4, 2012, the Board approved common stock grants in the total amount of 442,881 shares to the Company’s employees and members of the Board of Directors, all of which grants were made pursuant to the terms and provisions of the Plan. As of March 31, 2014 and December 31, 2013, there are 247,119 shares of the Company’s common stock remaining available for future issuance under the Plan. As of March 31, 2014 and December 31, 2013, there are 91,612 shares and 70,112 shares, respectively, vested pending to be issued. | |||||||||||
A summary of changes in the Company’s non-vested shares for the year follows: | |||||||||||
Non-vested Shares | |||||||||||
Non-vested at January 1, 2013 | 6,000 | ||||||||||
Granted | 69,556 | ||||||||||
Vested | -62,556 | ||||||||||
Forfeited | - | ||||||||||
Non-vested at December 31, 2013 | 13,000 | ||||||||||
Granted | 50,000 | ||||||||||
Vested | -21,500 | ||||||||||
Forfeited | - | ||||||||||
Non-vested at March 31, 2014 | 41,500 | ||||||||||
As of March 31, 2014, there was $138,198 of total unrecognized compensation cost related to non-vested shares granted. The total fair value of shares vested during the three months ended March 31, 2014 and 2013 was $59,725 and $4,340, respectively, based on the closing price of the Company’s common stock on the next business day of the grant date. | |||||||||||
Purchase Options | |||||||||||
In connection with the 2009 equity offering, the Company granted 140,000 common stock purchase options to five designees of the Underwriters with a vesting date of June 30, 2010. The options are exercisable from June 30, 2010 to June 30, 2014, and each option is exercisable for one share of the Company’s common stock at an exercise price at $8.11 per share. All options were provided for services performed. As of March 31, 2014 and December 31, 2013, 140,000 common stock purchase options remained outstanding. | |||||||||||
Outstanding purchase options do not trade in an active securities market, and as such, the Company estimates the fair value of these purchase options using the Black-Scholes Option Pricing Model (“Black-Scholes Model”) using the following assumptions: | |||||||||||
Purchase Options | |||||||||||
March 31, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
Stock price | $ | 6.56 | $ | 3.51 | |||||||
Exercise price | $ | 8.11 | $ | 8.11 | |||||||
Annual dividend yield | - | - | |||||||||
Expected term (years) | 0.25 | 0.5 | |||||||||
Risk-free interest rate | 0.05 | % | 0.1 | % | |||||||
Expected volatility | 80 | % | 125 | % | |||||||
Option value | $ | 0.56 | $ | 0.45 | |||||||
Expected volatility is based on historical volatility. Historical volatility was computed using daily pricing observations for recent periods that correspond to the term of the warrants. The Company believes this method produces an estimate that is representative of future volatility over the expected term of these warrants and purchase options. The Company has no reason to believe future volatility over the expected remaining life of these purchase options is likely to differ materially from historical volatility. The expected life is based on the remaining term of the purchase options. The risk-free interest rate is based on U.S. Treasury securities according to the remaining term of the purchase options. | |||||||||||
As required by the FASB’s accounting standards, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Depending on the nature and the terms of the transaction, the fair values of the warrant/purchase option liability were modeled using a series of techniques, including closed-form analytic formula, such as the Black-Scholes Model, which does not entail material subjectivity because the methodology employed does not necessitate significant judgment, and the pricing inputs are observed from actively quoted markets. | |||||||||||
The fair value of the 140,000 purchase options outstanding as of March 31, 2014 and December 31, 2013 was determined using the Black-Scholes Model, utilizing level 2 inputs, and the change was recorded in earnings. The Company recognized a loss of $16,520 and a gain of $4,466 from the change in fair value of derivative liability for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||
Following is an activity summary of the Company’s outstanding purchase options: | |||||||||||
Number of | Weighted – | Weighted- | |||||||||
purchase | average | average | |||||||||
options | exercise price | remaining | |||||||||
contractual term | |||||||||||
(Year) | |||||||||||
Outstanding at January 1, 2014 | 140,000 | $ | 8.11 | 0.5 | |||||||
Granted | - | - | |||||||||
Forfeited | - | - | |||||||||
Exercised | - | - | |||||||||
Outstanding at March 31, 2014 | 140,000 | $ | 8.11 | 0.25 | |||||||
Exercisable at March 31, 2014 | 140,000 | $ | 8.11 | 0.25 | |||||||
STATUTORY_RESERVES
STATUTORY RESERVES | 3 Months Ended |
Mar. 31, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
Note 16 - STATUTORY RESERVES | |
Statutory reserves represent restricted retained earnings. Based on the legal formation of the entities, all PRC entities are required to set aside 10% of net income as reported in their statutory accounts on an annual basis to the statutory surplus reserve fund. Once the total statutory surplus reserve reaches 50% of the entity’s registered capital, further appropriations are discretionary. The statutory surplus reserve can be used to increase the entity’s registered capital (upon approval by relevant government authorities) and eliminate its future losses under PRC regulatory requirements (upon a resolution by the board of directors). The statutory surplus reserve is not distributable to shareholders except in the event of liquidation. | |
Appropriations to the above statutory reserves are accounted for as a transfer from unrestricted earnings to statutory reserves. There are no legal requirements in the PRC to fund these statutory reserves by the transfer of cash to any restricted accounts, and as such, the Company has not transferred any cash to these accounts. These reserves are not distributable as cash dividends. | |
TAXES
TAXES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Taxes Disclosure [Abstract] | ' | |||||||
Income Tax Disclosure [Text Block] | ' | |||||||
Note 17 – TAXES | ||||||||
Provision for income taxes consisted of the following: | ||||||||
Three months ended March 31, | ||||||||
PRC income taxes | 2014 | 2013 | ||||||
Current | $ | 472,407 | $ | 321,284 | ||||
Deferred | -42,380 | - | ||||||
Total | $ | 430,027 | $ | 321,284 | ||||
Skystar is subject to United States federal income tax. Skystar Cayman is a tax-exempt company incorporated in the Cayman Islands. Fortune Time did not have any assessable profits arising in or derived from Hong Kong for the three months ended March 31, 2014 and 2013, and accordingly no provision for Hong Kong profits tax was made in these periods. | ||||||||
The Company’s subsidiaries and VIEs are subject to the PRC’s Enterprise Income Tax. Pursuant to the PRC Income Tax Laws, Enterprise Income Tax is generally imposed at a statutory rate of 25%. Xi’an Tianxing has been approved as a new technology enterprise, and under PRC Income Tax Laws is entitled to a preferential tax rate of 15%. | ||||||||
The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for the three months ended March 31, 2014 and 2013: | ||||||||
Three Months ended March 31, | ||||||||
2014 | 2013 | |||||||
U.S. statutory rate | 34 | % | 34 | % | ||||
Foreign income not recognized in the U.S. | -34 | -34 | ||||||
China income tax rate | 25 | 25 | ||||||
China income tax exemption | -10 | -10 | ||||||
Other items (1) | 15.6 | 16.1 | ||||||
Total provision for income taxes | 30.6 | % | 31.1 | % | ||||
-1 | Other items are primarily for operating expenses (income) incurred by Skystar that are not deductible (taxable) in the PRC, expenses incurred by other subsidiaries that are not deductible on the consolidated level, the difference of taxable income under US GAAP rather than Chinese GAAP, and the difference of Enterprise Income Tax imposed at a statutory rate of 25% rather than preferential tax rate of 15% on the income from the subsidiaries other than Xi’an Tianxing, which resulted in an increase in the effective tax rate of 15.6% and 16.1% for the three months ended March 31, 2014 and 2013, respectively. | |||||||
Other items consisted of the following: | ||||||||
Three Months ended March 31, | ||||||||
2014 | 2013 | |||||||
Income taxed at Chinese statutory rate of 25% | 1.3 | % | 1 | % | ||||
Valuation allowance on tax loss | 8.3 | 9.9 | ||||||
Share based compensation | 0.6 | 0.1 | ||||||
Non-deductible operating expenses | 5.4 | 5.1 | ||||||
Total other items | 15.6 | % | 16.1 | % | ||||
Taxes payable consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Income taxes | $ | 1,126,025 | $ | 662,811 | ||||
Value added taxes | 1,526,475 | 576,603 | ||||||
Other taxes | 200,344 | 76,072 | ||||||
Total | $ | 2,852,844 | $ | 1,315,486 | ||||
As of March 31, 2014 and December 31, 2013, the estimated net operating loss carry forwards of Skystar for U.S. income tax purposes amounted to $5,069,380 and $4,917,108, which may be available to reduce future years’ taxable income. These carry forwards will expire, if not utilized, beginning in 2025 and through 2033. As of March 31, 2014 and December 31, 2013, the estimated net operating loss carry forwards of Skystar for PRC income tax purposes amounted to $5,039,534 and $4,572,233, which may be available to reduce future years’ taxable income. These carry forwards will expire, if not utilized, through 2018. Management believes that the realization of the arising from this loss appears to be uncertain due to the Company’s limited operating history and continuing losses for U.S. and PRC income tax purposes. Accordingly, the Company has provided a 100% valuation allowance at March 31, 2014 and December 31, 2013. As of March 31, 2014 and December 31, 2013, the valuation allowance on the tax loss of Skystar was $1,723,589 and $1,671,817, respectively, and that of PRC subsidiaries was $1,259,883 and $1,142,813, respectively. The Company’s management reviews this valuation allowance periodically and makes adjustments as necessary. As of March 31, 2014, the Company had deferred tax assets amounting to $403,372, in respect of accrued expenses of $163,227 and an allowance on doubtful accounts of $240,145. As of December 31, 2013, the Company had deferred tax assets amounting to $364,425, in respect of accrued expenses of $213,865 and an allowance on doubtful accounts of $150,560. | ||||||||
The Company did not provide for deferred income taxes and foreign withholding taxes on the cumulative undistributed earnings of foreign subsidiaries as of March 31, 2014 and December 31, 2013 of approximately $52.9 million and $50.9 million, respectively. The cumulative undistributed earnings of foreign subsidiaries were included in consolidated retained earnings and will continue to be indefinitely reinvested in international operations. Accordingly, no provision has been made for U.S. deferred taxes or applicable withholding taxes, related to future repatriation of these earnings, nor is it practicable to estimate the amount of income taxes that would have to be provided if management concluded that such earnings will be remitted in the future. | ||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Share [Text Block] | ' | |||||||
Note 18 - EARNINGS PER SHARE | ||||||||
The following is the calculation of earnings per share: | ||||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
Net income | $ | 975,450 | $ | 712,733 | ||||
Weighted average shares used in basic computation | 7,676,268 | 7,613,712 | ||||||
Effect of dilutive potential non-vested common shares | 24,466 | - | ||||||
Weighted average shares used in diluted computation | 7,700,734 | 7,613,712 | ||||||
Earnings per share: | ||||||||
Basic | $ | 0.13 | $ | 0.09 | ||||
Diluted | $ | 0.13 | $ | 0.09 | ||||
For the three months ended March 31, 2014, the outstanding 140,000 options were excluded from the diluted earnings per share calculation as they are anti-dilutive as the average stock price was less than the exercise prices of the options. | ||||||||
For the three months ended March 31, 2013, the outstanding 140,000 options and 4,000 non-vested shares were excluded from the diluted earnings per share calculation as they are anti-dilutive. | ||||||||
RELATED_PARTY_TRANSACTIONS_AND
RELATED PARTY TRANSACTIONS AND ARRANGEMENTS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Related Party Transactions Disclosure [Text Block] | ' | |||||||
Note 19 - RELATED PARTY TRANSACTIONS AND ARRANGEMENTS | ||||||||
Amounts payable to related parties are summarized as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Amounts due to related parties | ||||||||
Weibing Lu – CEO (1) | $ | 1,155,155 | $ | 857,012 | ||||
Bing Mei – CFO (3) | 92,209 | 41,283 | ||||||
Scott Cramer – non-executive director and shareholder (2) | 530,349 | 300,203 | ||||||
Directors, shareholders and other related parties (4) | 184,525 | 163,050 | ||||||
Total | $ | 1,962,238 | $ | 1,361,548 | ||||
-1 | As of March 31, 2014 and December 31, 2013, the Company had unpaid reimbursement, compensation, and advances for business expenses due to Weibing Lu valued at $1,155,155 and $857,012, respectively. | |||||||
-2 | As of March 31, 2014 and December 31, 2013, the Company had unpaid reimbursement and compensation due to Scott Cramer valued at $530,349 and $300,203, respectively. On March 10, 2014, the Board of Directors, including all of the independent members of the Board, reviewed and approved the terms of Mr. Cramer’s Consulting Services Agreement with the Company pursuant to which the Company would continue employing him as its US representative in consideration of (i) a quarterly cash fee of $7,500, (ii) 7,000 restricted shares of the Company’s common stock issuable on a quarterly basis pursuant to the Company’s 2010 Stock Incentive Plan (note 15), and (iii) reimbursement of out of pocket expenses. In addition, Mr. Cramer agreed to pay certain invoices of the Company to its vendors (and the Company agreed to reimburse Mr. Cramer) in the form of a no interest bearing loan in the aggregate amount of approximately $250,000. | |||||||
-3 | As of March 31, 2014 and December 31, 2013, the Company had unpaid reimbursement and compensation due to Bing Mei valued at $92,209 and $41,283, respectively. | |||||||
-4 | The amounts due to directors, shareholders and other related parties at March 31, 2014 and December 31, 2013 include unpaid reimbursement and advances to other related parties for business expenses. | |||||||
Also refer to Notes 13, 15 and 20 for other related party transactions and arrangements. | ||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||||||||
Note 20 - COMMITMENTS AND CONTINGENCIES | |||||||||||
(a) Lease commitments | |||||||||||
The Company recognizes lease expense on the straight-line basis over the term of the lease. | |||||||||||
The Company entered into a tenancy agreement for the lease of factory premises of Xi’an Tianxing in Sanqiao for a period of ten years from October 1, 2004 to December 31, 2014. The annual rent for the factory premises is subject to a 10% increase every two years starting October 1, 2009. As of March 31, 2014, the annual rent for the factory premises was approximately $22,780 (RMB 140,360). | |||||||||||
The Company leased office space in Xi’an from Mr. Weibing Lu, the Company’s Chairman and CEO, for a period of five years from January 1, 2007 to December 31, 2011. In January 2012, the Company renewed the lease with Mr. Lu for another 5 years from January 1, 2012 to December 31, 2016 at a rent of approximately $29,214 (RMB 180,000) per year. | |||||||||||
The Company also entered into a tenancy agreement with Mr. Weibing Lu for the lease of Shanghai Siqiang’s office in Shanghai for a period of ten years from August 1, 2007 to August 1, 2017 with an annual rent of approximately $23,371 (RMB 144,000). | |||||||||||
The Company entered into a one year tenancy agreement for an office lease in Kunshan, Jiangsu Province from October 15, 2012 to April 14, 2013 with a six-month rent of approximately $1,689 (RMB 10,405). On April 15, 2013, the Company entered into an another one-year tenancy agreement for this office from April 15, 2013 to April 14, 2014 with a one-year rent of approximately $3,820 (RMB 23,536). On April 17, 2014, the Company entered into an another one-year tenancy agreement for this office from April 15, 2014 to April 14, 2015 with a one-year rent of approximately $3,820 (RMB 23,536). | |||||||||||
The Company entered into a tenancy agreement for the lease of warehouse premises in Xi’an for a period of three years from July 20, 2011 to July 19, 2014 with an annual rent of approximately $38,141 (RMB 235,000) subject to a 10% increase every two years starting July 20, 2013. As of March 31, 2014, the annual rent for the warehouse premises was approximately $41,955 (RMB 258,500). | |||||||||||
The Company entered into a tenancy agreement for the lease of a sales office in Jingzhou, Hubei Province for a period of five years from April 18, 2012 to April 17, 2017 with an annual rent of approximately $8,764 (RMB 54,000) for the first three years subject to increase during last two years. | |||||||||||
The minimum future lease payments for the next five years and thereafter are as follows: | |||||||||||
Period | Unrelated third | Related parties | Total | ||||||||
parties | |||||||||||
Year ending December 31, 2014 | $ | 25,761 | $ | 46,742 | $ | 72,503 | |||||
Year ending December 31, 2015 | 8,764 | 52,585 | 61,349 | ||||||||
Year ending December 31, 2016 | 8,764 | 52,585 | 61,349 | ||||||||
Year ending December 31, 2017 and thereafter | 2,191 | 13,633 | 15,824 | ||||||||
Total | $ | 45,480 | $ | 165,545 | $ | 211,025 | |||||
Rental expense to unrelated third parties for the three months ended March 31, 2014 and 2013 amounted to $18,921 and $15,271, respectively. Rental expense to related parties for the three months ended March 31, 2014 and 2013 amounted to $13,245 and $12,905, respectively. | |||||||||||
(b) Legal proceedings | |||||||||||
From time to time, the Company is involved in legal matters arising in the ordinary course of business. Management currently is not aware of any legal matters or pending litigation that would have a significant effect on the Company’s condensed consolidated financial statements as of March 31, 2014. | |||||||||||
In May 2007, Andrew Chien filed suit against the Company, R. Scott Cramer, Steve Lowe, David Wassung and Weibing Lu in United States District Court for the District of Connecticut, alleging causes of action for violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. On July 17, 2008, in a decision that is now published, the court granted defendants’ motion to dismiss and subsequently dismissed the lawsuit, entering judgment on behalf of the defendants. Chien appealed the dismissal. Defendants filed a post judgment motion for sanctions against Chien. On February 5, 2009, the court found the action filed by Chien to have been frivolous, and to have constituted a “substantial” violation of Rule 11, and imposed monetary sanctions on both Chien and his former attorney. Chien appealed the award of sanctions. All appeals, including the one referenced below concerning Chien’s second lawsuit, were subsequently consolidated. The Court of Appeals issued a Mandate upholding the decision granting defendant’s motion to dismiss and found that the District Court did not “abuse its discretion” in issuing sanctions against Chien in light of the circumstances and facts on record. This Mandate was entered on or about November 8, 2010. | |||||||||||
Andrew Chien, proceeding pro se (i.e., he represented himself without an attorney), filed his second lawsuit against the Company, R. Scott Cramer, Steve Lowe, David Wassung and Weibing Lu in Connecticut Superior Court (which was removed to U.S. District Court) alleging causes of action similar to those alleged in his federal complaint described above as well as state law causes of action. The court held that all claims asserted against the defendants were barred and failed to state a claim on a multiplicity of grounds, including on the basis of res judicata. Defendants filed a second Motion for Sanctions under Rule 11 and the PSLRA, which was granted. Chien appealed the dismissal. The Court of Appeals for the Second Circuit consolidated all of Chien’s appeals from both of his lawsuits. On November 8, 2010, the Court of Appeals affirmed the dismissals and the awards of sanctions. On January 22, 2011, Chien filed a petition with the Supreme Court of the United States, appealing the lower court’s ruling. The Supreme Court denied review of the petition. | |||||||||||
Andrew Chien, again proceeding pro se, commenced his third lawsuit against the Company, Scott Cramer, Steve Lowe, David Wassung, Weibing Lu (and also Weinberg & Company, P.A., Moore Stephens Wirth Frazer & Torbet, LLP, Frazer Frost, LLP, Crowe Horwath LLP, Richardson & Patel LLP, Kevin K. Leung, Harvey Kesner, and Jody M. Borrelli) alleging the same facts and circumstances as set forth in the above two matters, although adding the aforementioned accountants and lawyers as defendants to the claims. The matter commenced on August 8, 2011, and shortly thereafter was removed to U.S. District Court. On October 5, 2011, the court dismissed the entire action as to all defendants. As in the two previous lawsuits, sanctions were issued against Chien. Moreover, the District Court issued an order prohibiting Chien from filing any more lawsuits against the defedentants without prior approval from the court. Chien appealed the Court’s ruling to the United States Court of Appeals for the Second Circuit, where all defendants have filed motions to dismiss. | |||||||||||
The United States Court of Appeals for the Second Circuit recently affirmed the judgments and orders of the United States District Court and dismissed all of Mr. Chien’s pending appeals. | |||||||||||
Although the Second Circuit declined to issue sanctions against Chien, it expressly warned Chien “that the continued filing of duplicative, vexatious, or frivolous appeals regarding issues already resolved by this Court may result in the imposition of sanctions, including a leave-to-file sanction requiring Chien to obtain permission from this Court prior to filing further submissions in this Court.” The Supreme Court of the United States denied Chien’s petition for writs of certiorari. | |||||||||||
(c) R&D project | |||||||||||
In 2008, Xi’an Tianxing contracted with Northwestern Agricultural Technology University to work jointly on an R&D project concerning the application of nano-technology in the prevention of major milk cow disease. The total projected budget for this project is approximately $649,200 (RMB 4,000,000), which is to be paid according to completed stages of the project. The project reached trial stage in September 2009. As of March 31, 2014, the Company has incurred approximately $568,050 (RMB 3,500,000) of cumulative expenses relating to this project. | |||||||||||
In 2009, Xi’an Tianxing contracted with the Fourth Military Medical University to jointly work on an R&D project on fish diseases linked immunosorbent detection kit and fish diseases multi-linked monoclonal antibody therapeutic agents. The contracted amount for this project is approximated $973,800 (RMB 6,000,000). As of March 31, 2014, the Company has incurred approximately $843,960 (RMB 5,200,000) of cumulative expenses relating to this project. | |||||||||||
During the first quarter of 2011, Xi’an Tianxing contracted with the Fourth Military Medical University to jointly work on an R&D project to develop new treatment and diagnosis method for Mycoplasmal pneumonia of swine. The project term is from January 2011 through September 2013. The cost to the Company for the initial phase is approximately $324,600 (RMB 2,000,000). As of March 31, 2014, the project was extended for clinical trials and the Company has incurred approximately $243,450 (RMB 1,500,000). The project is expected to be completed by the end of 2015. | |||||||||||
During the fourth quarter of 2012, Xi’an Tianxing launched eight in-house R&D projects as set forth in the following table. As of March 31, 2014, the Company incurred all the budget expenses and these projects were still under development. | |||||||||||
During the second quarter of 2013, Xi’an Tianxing launched an R&D project to develop monoclonal antibody vaccine to prevent common fish skin disease. The cost to the Company for this project is approximately $568,050 (RMB 3,500,000). As of March 31, 2014, the Company has incurred $486,900 (RMB 3,000,000) and this project is still under development. | |||||||||||
During the third quarter of 2013, Xi’an Tianxing launched an R&D project to develop livestock and avian disease multi-joint yolk antibody therapeutic agents and contracted with Lantian County Chicken Farm to test the effect of its developed agents. The project is expected to be completed by the end of 2014. The total projected budget for this project is approximately $714,120 (RMB 4,400,000). As of March 31, 2014, the Company has incurred $324,600 (RMB 2,000,000) and this project is still under development. | |||||||||||
In addition, the Company also launched various R&D projects on veterinary products formula adjustment, pet drug development, fermentation engineering design and development, GMP inspection trial production tests and lab tests. As of March 31, 2014, $1,665,948 (RMB 10,264,620) has been incurred related to these projects and lab tests. | |||||||||||
R&D projects are summarized as follows: | |||||||||||
Project | Amount | Amount | Total amount | ||||||||
incurred as | expected to be | of | |||||||||
of 03/31/2014 | incurred | project | |||||||||
Project with Northwestern Agricultural Technology University | |||||||||||
Application of nano-technology in the prevention of major milk cow disease | $ | 568,050 | $ | 81,150 | $ | 649,200 | |||||
Project with the Fourth Military Medical University | |||||||||||
Fish diseases linked immunosorbent detection kit and fish diseases Multi-linked monoclonal antibody therapeutic agents | 843,960 | 129,840 | 973,800 | ||||||||
New treatment and diagnosis method for Mycoplasmal pneumonia of swine | 243,450 | 81,150 | 324,600 | ||||||||
In-house R&D projects during 2012: | |||||||||||
Oral liquid products R&D and field trials | 162,300 | - | 162,300 | ||||||||
Powder for injection products R&D and field trials | 162,300 | - | 162,300 | ||||||||
Vitamin E injection product development | 81,150 | - | 81,150 | ||||||||
Anthelmintic product development | 81,150 | - | 81,150 | ||||||||
Three disease grams product development | 81,150 | - | 81,150 | ||||||||
Premixes class product development | 81,150 | - | 81,150 | ||||||||
Bulk powder products development | 81,150 | - | 81,150 | ||||||||
Livestock and fish diseases immunoassay kit development | 405,750 | - | 405,750 | ||||||||
In-house R&D projects during 2013: | |||||||||||
Fish monoclonal antibody vaccine | 486,900 | 81,150 | 568,050 | ||||||||
Livestock and avian disease multi-joint yolk antibody therapeutic agents | 324,600 | 389,520 | 714,120 | ||||||||
Other projects for veterinary products formula adjustment, pet drug development, fermentation engineering design and development, GMP inspection trial production tests and other lab tests | 1,665,948 | 16,230 | 1,682,178 | ||||||||
Total | $ | 5,269,008 | $ | 779,040 | $ | 6,048,048 | |||||
All payments made for R&D projects have been expensed as incurred. | |||||||||||
(d) Registered capital commitment: | |||||||||||
Skystar Kunshan’s remaining registered capital of $12,750,000 was originally required to be invested by May 7, 2012. On March 26, 2014, the Company received the approval of extension for payment of the remaining registered capital to May 6, 2015. | |||||||||||
(e) Capital commitment | |||||||||||
The Company’s commitments for capital expenditure as of March 31, 2014 are as follows: | |||||||||||
Contracted but not accrued for: | |||||||||||
Purchase of machinery and construction (Note 9) | $ | 4,321,562 | |||||||||
SEGEMENT_INFORMATION
SEGEMENT INFORMATION | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||
Note 21 – SEGEMENT INFORMATION | ||||||||
The Company currently engages in one business segment, the research, development, production, marketing and sales of veterinary healthcare and medical care products. The Company’s revenues and cost of revenues by product line were as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Revenues | ||||||||
Micro-organism | $ | 1,521,165 | $ | 1,667,182 | ||||
Veterinary Medications | 4,844,968 | 3,446,717 | ||||||
Feed Additives | 330,537 | 286,288 | ||||||
Vaccines | 135,918 | 130,554 | ||||||
Total Revenues | $ | 6,832,588 | $ | 5,530,741 | ||||
Cost of Revenues | ||||||||
Micro-organism | $ | 683,784 | $ | 587,417 | ||||
Veterinary Medications | 3,033,027 | 2,105,516 | ||||||
Feed Additives | 220,148 | 214,637 | ||||||
Vaccines | 72,444 | 23,316 | ||||||
Total Cost of Revenues | 4,009,403 | 2,930,886 | ||||||
Gross Profit | $ | 2,823,185 | $ | 2,599,855 | ||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | |||||||||||||
Basis of Presentation | ||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”) applicable to interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made. The accompanying results of operations are not necessarily indicative of the operating results that may be expected for the entire year ending December 31, 2014. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes thereto of the Company, which are included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013 filed with the Securities and Exchange Commission (“SEC”). | ||||||||||||||
Consolidation, Policy [Policy Text Block] | ' | |||||||||||||
Principles of consolidation | ||||||||||||||
The accompanying condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries, and its variable interest entities (“VIEs”). All significant inter-company transactions and balances between the Company, its subsidiaries, and its VIEs have been eliminated in consolidation. | ||||||||||||||
The Company has evaluated the relationship with Xi’an Tianxing and Xi’an Tianxing’s wholly owned subsidiaries, Xi’an Sikaida and Shanghai Siqiang. As a result of the contractual arrangements which obligate Sida to absorb all of the risk of loss from Xi’an Tianxing’s activities and enable Sida to receive all of its expected residual returns, the Company is the primary beneficiary of these VIEs and thus it accounts for Xi’an Tianxing, Xi’an Sikaida and Shanghai Siqiang as VIEs under the Financial Accounting Standards Board’s (“FASB”) interpretation on consolidation of variable interest entities. Accordingly, the Company consolidates the results, assets, and liabilities of Xi’an Tianxing, Xi’an Sikaida and Shanghai Siqiang. | ||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | |||||||||||||
Use of estimates | ||||||||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time to complete the underlying transactions. Actual results may differ from these estimates in amounts that may be material to the consolidated financial statements and accompanying notes. Significant estimates and assumptions made by the Company are used for, but not limited to the allowance for doubtful accounts, useful lives of property, plant and equipment and intangible assets, assumptions used in assessing impairment for long-lived assets and the fair value for derivative instruments. | ||||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | |||||||||||||
Foreign currency translation | ||||||||||||||
The Company uses the United States dollar (“U.S. dollar”) for financial reporting purposes and the Chinese Renminbi (“RMB”) as its functional currency. The Company’s subsidiaries and VIEs maintain their books and records in their functional currency, being the primary currency of the economic environment in which their operations are conducted. | ||||||||||||||
The Company translates the subsidiaries’ and VIEs’ assets and liabilities into U.S. dollars using the applicable exchange rates prevailing at the balance sheet dates, and the statements of comprehensive income and cash flows are translated at average exchange rates during the reporting period. As a result, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the subsidiaries’ and VIEs’ financial statements are recorded as accumulated other comprehensive income. | ||||||||||||||
The quotation of the exchange rates does not imply free convertibility of RMB to other foreign currencies. All foreign exchange transactions continue to take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rate quoted by the People’s Bank of China. | ||||||||||||||
Approval of foreign currency payments by the People’s Bank of China or other institutions requires submitting a payment application form together with invoices, shipping documents, and signed contracts. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. | ||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | |||||||||||||
Fair values of financial instruments | ||||||||||||||
ASC Topic 820, Fair Value Measurement and Disclosures , defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy, which requires classification based on observable and unobservable inputs when measuring fair value. Certain current assets and current liabilities are financial instruments. Management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and, if applicable, their current interest rates are equivalent to interest rates currently available. The three levels of valuation hierarchy are defined as follows: | ||||||||||||||
¨ | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||
¨ | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. | |||||||||||||
¨ | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. | |||||||||||||
The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2014 and December 31, 2013: | ||||||||||||||
Carrying | Fair Value Measurement at | |||||||||||||
Value at | March 31, 2014 | |||||||||||||
March 31, | ||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | |||||||||||
Purchase option liability | $ | 78,960 | $ | — | $ | 78,960 | $ | — | ||||||
Carrying | Fair Value Measurement at | |||||||||||||
Value at | December 31, 2013 | |||||||||||||
December 31, | ||||||||||||||
2013 | Level 1 | Level 2 | Level 3 | |||||||||||
Purchase option liability | $ | 62,440 | $ | — | $ | 62,440 | $ | — | ||||||
Below is the reconciliation for the purchase option liability changes from January 1, 2014 to March 31, 2014: | ||||||||||||||
Balance, January 1, 2014 | $ | 62,440 | ||||||||||||
Change in fair value | 16,520 | |||||||||||||
Balance, March 31, 2014 | $ | 78,960 | ||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||||||||||||
Revenue recognition | ||||||||||||||
Revenue of the Company is primarily derived from the sales of veterinary healthcare and medical care products in China. Sales are recognized when the following four revenue criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed or determinable, and collectability is reasonably assured. Sales are presented net of value added tax (“VAT”). No estimated allowance for sales returns is reflected in these consolidated financial statements as sales returns historically have been insignificant. | ||||||||||||||
There are two types of sales upon which revenue is recognized: | ||||||||||||||
a. | Credit sales: revenue is recognized when the products have been delivered to the customers. | |||||||||||||
b. | Full payment before delivery: Cash received is recorded as “deposits from customers” and revenue is recognized when the products have been delivered to the customers. | |||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |||||||||||||
Cash | ||||||||||||||
Cash includes currency on hand and demand deposits with banks with an original maturity of three months or less. | ||||||||||||||
Receivables, Policy [Policy Text Block] | ' | |||||||||||||
Accounts receivable | ||||||||||||||
Accounts receivable are stated at cost, net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses, if any, resulting from the failure of customers to make required payments. The Company reviews the accounts receivable on a periodic basis and makes allowances where there is doubt as to the collectibility of individual balances. In evaluating the collectibility of individual receivable balances, the Company considers many factors, including the age of the balance, the customer’s payment history, its current credit-worthiness and current economic trends. | ||||||||||||||
Inventory, Policy [Policy Text Block] | ' | |||||||||||||
Inventories | ||||||||||||||
Inventories are stated at the lower of cost as determined on a weighted-average basis, or market. Inventories include purchases and related costs incurred in bringing the inventories to their present location and condition. Management reviews inventories for obsolescence and cost in excess of net realizable value and records a write-down against the inventory and additional cost of goods sold when the carrying value exceeds net realizable value. | ||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||||||||||||
Property, plant and equipment | ||||||||||||||
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Expenditures for maintenance and repairs that do not improve or extend the useful lives of the assets are charged to operations as incurred, while renewals and betterments are capitalized. Gains and losses on disposals are included in the results of operations. Estimated useful lives of the assets are as follows: | ||||||||||||||
Estimated useful life | ||||||||||||||
Buildings and improvements | Shorter of lease | |||||||||||||
term or 10-40 years | ||||||||||||||
Machinery and equipment | 5-10 years | |||||||||||||
Office equipment and furniture | 3-10 years | |||||||||||||
Vehicles | 5-10 years | |||||||||||||
Management assesses the carrying value of property, plant and equipment annually or more often when factors indicating impairment are present, and reduces the carrying value of such assets by the amount of the impairment. The Company determines the existence of such impairment by measuring the expected future cash flows (undiscounted) and comparing such amount to the net asset carrying value. An impairment loss, if it exists, is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. Based on its review, management believes that, as of March 31, 2014 and December 31, 2013, there was no impairment of its property, plant and equipment. | ||||||||||||||
Construction In Progress Policy [Policy Text Block] | ' | |||||||||||||
Construction-in-progress | ||||||||||||||
Construction-in-progress includes direct costs of construction of factory buildings. Interest incurred during the period of construction, if significant, is capitalized. All other interest is expensed as incurred. Construction-in-progress is not depreciated until such time as the asset is completed and put into service. | ||||||||||||||
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | ' | |||||||||||||
Intangible assets | ||||||||||||||
Land use rights — Land use rights represent the amounts paid to acquire a long-term interest to utilize the land underlying the Company’s facilities. This type of arrangement is common for the use of land in the PRC. Land use rights are amortized on the straight-line method over the contractual lease terms. The land use right granted to the Company’s Huxian facility was for 50 years. The land use right granted to the Company’s Jingzhou facility was 30 years. The land use right granted to the Company’s Kunshan facility was for 41 years. | ||||||||||||||
Technological know-how — Purchased technological know-how includes confidential formulas, manufacturing processes, and technical and procedural manuals, and is amortized using the straight-line method over an estimated useful life of between five to eleven years that reflects the period over which such confidential formulas, manufacturing processes, and technical and procedural manuals are kept confidential by the Company as agreed between the Company and the selling parties. | ||||||||||||||
Impairment of intangible assets —Intangible assets are evaluated at least annually for impairment if events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Based on the existence of one or more indicators of impairment, the Company measures any impairment of long-lived assets by comparing the asset's estimated fair value with its carrying value, based on cash flow methodology. Based on its review, the Company believes that, as of March 31, 2014 and December 31, 2013, there was no impairment of its intangible assets. | ||||||||||||||
Comprehensive Income, Policy [Policy Text Block] | ' | |||||||||||||
Comprehensive income | ||||||||||||||
Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive income is comprised of the foreign currency translation adjustments. | ||||||||||||||
Shipping and Handling Cost, Policy [Policy Text Block] | ' | |||||||||||||
Shipping and handling costs | ||||||||||||||
Shipping and handling costs related to costs of goods sold are included in selling expenses, and totaled $192,048 and $203,849 for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||
Advertising Costs, Policy [Policy Text Block] | ' | |||||||||||||
Advertising costs | ||||||||||||||
Advertising costs are charged to selling expenses as incurred. Advertising costs were insignificant for both the quarters ended March 31, 2014 and 2013, respectively. | ||||||||||||||
Research and Development Expense, Policy [Policy Text Block] | ' | |||||||||||||
Research and development costs | ||||||||||||||
Research and development costs are charged to expense as incurred and include salaries, professional fees, and technical support fees related to such efforts. | ||||||||||||||
Income Tax, Policy [Policy Text Block] | ' | |||||||||||||
Income taxes | ||||||||||||||
The Company accounts for income taxes using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion or all of a deferred tax asset will not be realized. | ||||||||||||||
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. As of March 31, 2014 and December 31, 2013, there are no unrecognized tax benefits, and the Company does not expect a significant change in tax benefits in the next 12 months. Penalties and interest levied by taxing authorities, if any, are classified as income tax expense in the year incurred. No significant penalties or interest relating to income taxes have been incurred during the three months ended March 31, 2014 and 2013. | ||||||||||||||
According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational or other errors made by the taxpayer or the withholding agent. The statute of limitations extends to five years under special circumstances. In the case of transfer pricing issues, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. Accordingly, the income tax returns of the Company’s PRC operating subsidiaries for the years ended December 31, 2008 through 2013 are open to examination by the PRC state and local tax authorities. | ||||||||||||||
Government Grants [Policy Text Block] | ' | |||||||||||||
Government grants | ||||||||||||||
The Company’s subsidiaries in China receive government subsidies from local Chinese government agencies in accordance with relevant Chinese government policies. In general, the Company presents the government subsidies received as part of other income unless the subsidies received are earmarked to compensate for a specific expense, which have been accounted for by offsetting the specific expense, such as research and development expense or interest expenses. Unearned government subsidies received are deferred for recognition until the criteria for such recognition could be met. | ||||||||||||||
For research and development expenses, the Company matches and offsets the government grants with the expenses of the research and development activities as specified in the grant approval document in the corresponding period when such expenses are incurred. | ||||||||||||||
No government grants were offset against the finance costs for the three months ended March 31, 2014 and 2013. | ||||||||||||||
Government grants of $154,902 and $nil were received and recognized as other income during the three months ended March 31, 2014 and 2013. | ||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |||||||||||||
Stock-based compensation | ||||||||||||||
The Company records and reports stock-based compensation by measuring the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which services are received. Stock compensation for stock granted to non-employees is determined as the fair value of the consideration received or the fair value of equity instruments issued, whichever is more reliably measured. | ||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||||||||||||
Earnings per share | ||||||||||||||
Basic earnings per share is based upon the weighted-average number of common shares outstanding. Diluted earnings per share is based on the assumption that all dilutive convertible shares, including convertible preferred shares, warrants and stock options were converted or exercised. Further, the method requires that stock dividends or stock splits be accounted for retroactively if the stock dividends or stock splits occur during the period or after the end of the period but before the release of the financial statements, by considering it outstanding for the entirety of each period presented. Diluted earnings per share is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. | ||||||||||||||
Related Party [Policy Text Block] | ' | |||||||||||||
Related parties | ||||||||||||||
Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of such principal owners and management, and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. | ||||||||||||||
Operating Segments [Policy Text Block] | ' | |||||||||||||
Operating segments | ||||||||||||||
While the chief operating decision-makers monitor the revenue streams of the various products lines, operations are managed and financial performance is evaluated on a Company-wide basis. Product lines are aggregated into one as operating results for all product lines are similar. Accordingly, all of the major product lines (micro-organism, veterinary medicine, feed additives and vaccines) are considered by management to be aggregated in one reportable operating segment. | ||||||||||||||
As the Company primarily generates its revenues from customers in the PRC, no geographical segments are presented. | ||||||||||||||
Reclassification, Policy [Policy Text Block] | ' | |||||||||||||
Reclassification | ||||||||||||||
Certain amounts included in the 2013 consolidated statements of comprehensive income has been reclassified to conform to the 2014 financial statement presentation as follows; | ||||||||||||||
The Company has separately presented interest income of $148,845 on the face of consolidated statements of comprehensive income for the period ended March 31, 2013, instead of presenting it net of interest expenses. | ||||||||||||||
As a result of such reclassification, interest expense, net for the three months ended March 31, 2014, has changed from $40,547 to $189,392. | ||||||||||||||
The change in due to related parties of $201,325 was classified into cash flows from financing activities in the Company’s condensed consolidated statements of cash flows for the three months ended March 31, 2013. The Company has reclassified this amount as component of cash flows to operating activities. | ||||||||||||||
As a result of such reclassification, net cash provided by financing activities for the three months ended March 31, 2013 has changed from $2,591,125 to $2,389,800 and net cash used in operating activities has changed from $9,983,900 to $9,782,575. | ||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||||||||||
Recently issued accounting pronouncements | ||||||||||||||
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-05, Foreign Currency Matters, (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (ASU 2013-05), to resolve a diversity in accounting for the cumulative translation adjustment of foreign currency upon derecognition of a foreign subsidiary or group of assets. ASU 2013-05 requires the parent to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Further, ASU 2013-05 clarified that the parent should apply the guidance in subtopic 810-10 if there is a sale of an investment in a foreign entity, including both (1) events that result in the loss of a controlling financial interest in a foreign entity and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. The Company adopted ASU 2013-05 prospectively in its first quarter of fiscal 2014, and it did not have a significant impact on its consolidated results of operations and financial condition. | ||||||||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740) (ASU 2013-11). The amendments in this update provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. These amendments provide that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The Company adopted ASU 2013-11 effective January 1, 2014 and it did not have a significant impact on its consolidated results of operations and financial condition. | ||||||||||||||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. | ||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | |||||||||||||
The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2014 and December 31, 2013: | ||||||||||||||
Carrying | Fair Value Measurement at | |||||||||||||
Value at | March 31, 2014 | |||||||||||||
March 31, | ||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | |||||||||||
Purchase option liability | $ | 78,960 | $ | — | $ | 78,960 | $ | — | ||||||
Carrying | Fair Value Measurement at | |||||||||||||
Value at | December 31, 2013 | |||||||||||||
December 31, | ||||||||||||||
2013 | Level 1 | Level 2 | Level 3 | |||||||||||
Purchase option liability | $ | 62,440 | $ | — | $ | 62,440 | $ | — | ||||||
Schedule Of Reconciliation For Warrant Or Purchase Option Liabilities [Table Text Block] | ' | |||||||||||||
Below is the reconciliation for the purchase option liability changes from January 1, 2014 to March 31, 2014: | ||||||||||||||
Balance, January 1, 2014 | $ | 62,440 | ||||||||||||
Change in fair value | 16,520 | |||||||||||||
Balance, March 31, 2014 | $ | 78,960 | ||||||||||||
Schedule Of Estimated Useful Lives Of Assets [Table Text Block] | ' | |||||||||||||
Estimated useful lives of the assets are as follows: | ||||||||||||||
Estimated useful life | ||||||||||||||
Buildings and improvements | Shorter of lease | |||||||||||||
term or 10-40 years | ||||||||||||||
Machinery and equipment | 5-10 years | |||||||||||||
Office equipment and furniture | 3-10 years | |||||||||||||
Vehicles | 5-10 years | |||||||||||||
ACCOUNTS_RECEIVABLE_NET_Tables
ACCOUNTS RECEIVABLE, NET (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accounts Receivable Disclosure [Abstract] | ' | |||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||
Accounts receivable consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accounts receivable | $ | 13,624,127 | $ | 11,611,741 | ||||
Allowance for doubtful accounts | -960,578 | -602,243 | ||||||
Accounts receivable, net | $ | 12,663,549 | $ | 11,009,498 | ||||
Schedule Of Movement In Allowance For Doubtful Accounts [Table Text Block] | ' | |||||||
The following table presents the movement of the allowance for doubtful accounts: | ||||||||
Balance, January 1, 2014 | $ | 602,243 | ||||||
Addition | 366,218 | |||||||
Recovery | — | |||||||
Translation adjustment | -7,883 | |||||||
Balance, March 31, 2014 | $ | 960,578 | ||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories consist of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 21,970,441 | 23,001,461 | |||||
Packing materials | 350,799 | 396,067 | ||||||
Work-in-process | 152,884 | 23,140 | ||||||
Finished goods | 2,717,505 | 2,409,083 | ||||||
Other | 74,154 | 73,835 | ||||||
Total | $ | 25,265,783 | 25,903,586 | |||||
DEPOSITS_PREPAID_EXPENSES_AND_1
DEPOSITS, PREPAID EXPENSES AND OTHER RECEIVABLES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Deposits and Prepaid Expenses Disclosure [Abstract] | ' | |||||||
Schedule Of Deposits and Prepaid Expenses [Table Text Block] | ' | |||||||
Deposits, prepaid expenses and other receivables are comprised of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Other prepayments | $ | 365,055 | $ | 478,144 | ||||
Deposits placed with guarantors (note 13) | 486,900 | 491,100 | ||||||
Interest receivable (notes 7 and 12) | 168,718 | 497,844 | ||||||
Other receivables | 587,732 | 667,075 | ||||||
Total | $ | 1,608,405 | $ | 2,134,163 | ||||
PREPAYMENTS_TO_SUPPLIERS_Table
PREPAYMENTS TO SUPPLIERS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Prepayments For Raw Materials Purchasing [Abstract] | ' | |||||||
Prepayments For Raw Materials Purchasing [Table Text Block] | ' | |||||||
Prepayments to suppliers are comprised of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Prepayments for raw materials | $ | 39,438,992 | $ | 39,937,944 | ||||
Prepayments for packaging materials | 1,102,483 | 1,123,200 | ||||||
Total | $ | 40,541,475 | $ | 41,061,144 | ||||
PROPERTY_PLANT_AND_EQUIPMENT_N1
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
Property, plant and equipment consist of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Buildings and improvements | $ | 28,033,999 | $ | 27,703,872 | ||||
Machinery and equipment | 8,261,929 | 6,093,533 | ||||||
Office equipment and furniture | 334,800 | 337,688 | ||||||
Vehicles | 606,755 | 611,989 | ||||||
Total | 37,237,483 | 34,747,082 | ||||||
Less: accumulated depreciation | -6,819,830 | -6,477,927 | ||||||
Plant and equipment, net | $ | 30,417,653 | $ | 28,269,155 | ||||
CONSTRUCTIONINPROGRESS_Tables
CONSTRUCTION-IN-PROGRESS (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Construction In Progress Disclosure [Abstract] | ' | ||||||||||||
Schedule Of Construction In Progress [Table Text Block] | ' | ||||||||||||
The construction projects the Company was in the progress of completing are as follows: | |||||||||||||
Total in CIP | |||||||||||||
as of | |||||||||||||
Project | March 31, | Estimated Cost to | Estimated | Estimated | |||||||||
2014 | Complete | Total Cost | Completion Date | ||||||||||
Jingzhou veterinary medication facility | $ | 1,203,130 | $ | 501,020 | $ | 1,704,150 | Fourth quarter of 2014 | ||||||
Kunshan micro-organism facility | 5,267,642 | 7,241,039 | 12,508,681 | Construction - completed, Installation of machinery and equipment – Third quarter of 2014 | |||||||||
Total | $ | 6,470,772 | $ | 7,742,059 | $ | 14,212,831 | |||||||
LONGTERM_PREPAYMENTS_Tables
LONG-TERM PREPAYMENTS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Long Term Prepayments Disclosure [Abstract] | ' | |||||||
Schedule Of Long Term Prepayments [Table Text Block] | ' | |||||||
Long-term prepayments consist of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Deposits for equipment purchase and land use rights | $ | 3,836,884 | $ | 3,871,228 | ||||
Construction deposits | 386,224 | 366,688 | ||||||
Prepayments for R&D project | 363,552 | 389,556 | ||||||
Deposits for other | 6,091 | 6,142 | ||||||
Long-term prepayments | $ | 4,592,751 | $ | 4,633,614 | ||||
Long-term prepayments for acquisitions | $ | - | $ | 183,344 | ||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | |||||||
Intangible assets consist of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Land use rights | $ | 4,909,577 | $ | 4,951,927 | ||||
Technological know-how | 2,596,800 | 2,619,200 | ||||||
Total | 7,506,377 | 7,571,127 | ||||||
Less: accumulated amortization | -2,375,923 | -2,333,872 | ||||||
Intangible assets, net | $ | 5,130,454 | $ | 5,237,255 | ||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||
Amortization expense expected for the next five years and thereafter is as follows: | ||||||||
Years ending December 31, | Amount | |||||||
2014 | $ | 186,032 | ||||||
2015 | 248,042 | |||||||
2016 | 248,042 | |||||||
2017 | 248,042 | |||||||
2018 | 248,042 | |||||||
Thereafter | 3,952,254 | |||||||
Total | $ | 5,130,454 | ||||||
SHORTTERM_LOANS_Tables
SHORT-TERM LOANS (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||
Schedule Of Outstanding Short-Term Loans [Table Text Block] | ' | ||||||||||||||||||
Outstanding short-term loans consisted of the following: | |||||||||||||||||||
March 31, 2014 | December 31, 2013 | Interest | |||||||||||||||||
Bank | Amt RMB | Amt USD | Amt RMB | Amt USD | Due Date | Rate | |||||||||||||
Industrial Bank Co. Ltd. Xi’an Branch | - | $ | - | 30,000,000 | $ | 4,911,000 | 1/15/14 | 6.6 | % | ||||||||||
Postal Savings Bank of China Xi’an Branch | 20,000,000 | 3,246,000 | 20,000,000 | 3,274,000 | 5/26/14 | -2 | |||||||||||||
ICBC Songzi Branch | 5,000,000 | 811,500 | 5,000,000 | 818,500 | 6/19/14 | -1 | |||||||||||||
Related-party Individual – Chairman and CEO | 10,000,000 | 1,623,000 | 10,000,000 | 1,637,000 | 9/11/14 | 7.8 | % | ||||||||||||
Total | 35,000,000 | $ | 5,680,500 | 65,000,000 | $ | 10,640,500 | |||||||||||||
-1 | People's Bank of China floating benchmark lending rate over the same period plus 30%, which was 7.8% at March 31, 2014. | ||||||||||||||||||
-2 | People's Bank of China floating benchmark lending rate over the same period plus 20%, which was 7.2% at March 31, 2014. | ||||||||||||||||||
CAPITAL_TRANSACTIONS_Tables
CAPITAL TRANSACTIONS (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | ' | ||||||||||
A summary of changes in the Company’s non-vested shares for the year follows: | |||||||||||
Non-vested Shares | |||||||||||
Non-vested at January 1, 2013 | 6,000 | ||||||||||
Granted | 69,556 | ||||||||||
Vested | -62,556 | ||||||||||
Forfeited | - | ||||||||||
Non-vested at December 31, 2013 | 13,000 | ||||||||||
Granted | 50,000 | ||||||||||
Vested | -21,500 | ||||||||||
Forfeited | - | ||||||||||
Non-vested at March 31, 2014 | 41,500 | ||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | ' | ||||||||||
Outstanding purchase options do not trade in an active securities market, and as such, the Company estimates the fair value of these purchase options using the Black-Scholes Option Pricing Model (“Black-Scholes Model”) using the following assumptions: | |||||||||||
Purchase Options | |||||||||||
March 31, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
Stock price | $ | 6.56 | $ | 3.51 | |||||||
Exercise price | $ | 8.11 | $ | 8.11 | |||||||
Annual dividend yield | - | - | |||||||||
Expected term (years) | 0.25 | 0.5 | |||||||||
Risk-free interest rate | 0.05 | % | 0.1 | % | |||||||
Expected volatility | 80 | % | 125 | % | |||||||
Option value | $ | 0.56 | $ | 0.45 | |||||||
Schedule Of Share Based Compensation Warrants and Purchase Options Activity [Table Text Block] | ' | ||||||||||
Following is an activity summary of the Company’s outstanding purchase options: | |||||||||||
Number of | Weighted – | Weighted- | |||||||||
purchase | average | average | |||||||||
options | exercise price | remaining | |||||||||
contractual term | |||||||||||
(Year) | |||||||||||
Outstanding at January 1, 2014 | 140,000 | $ | 8.11 | 0.5 | |||||||
Granted | - | - | |||||||||
Forfeited | - | - | |||||||||
Exercised | - | - | |||||||||
Outstanding at March 31, 2014 | 140,000 | $ | 8.11 | 0.25 | |||||||
Exercisable at March 31, 2014 | 140,000 | $ | 8.11 | 0.25 | |||||||
TAXES_Tables
TAXES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Taxes Disclosure [Abstract] | ' | |||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | |||||||
Provision for income taxes consisted of the following: | ||||||||
Three months ended March 31, | ||||||||
PRC income taxes | 2014 | 2013 | ||||||
Current | $ | 472,407 | $ | 321,284 | ||||
Deferred | -42,380 | - | ||||||
Total | $ | 430,027 | $ | 321,284 | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||
The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for the three months ended March 31, 2014 and 2013: | ||||||||
Three Months ended March 31, | ||||||||
2014 | 2013 | |||||||
U.S. statutory rate | 34 | % | 34 | % | ||||
Foreign income not recognized in the U.S. | -34 | -34 | ||||||
China income tax rate | 25 | 25 | ||||||
China income tax exemption | -10 | -10 | ||||||
Other items (1) | 15.6 | 16.1 | ||||||
Total provision for income taxes | 30.6 | % | 31.1 | % | ||||
-1 | Other items are primarily for operating expenses (income) incurred by Skystar that are not deductible (taxable) in the PRC, expenses incurred by other subsidiaries that are not deductible on the consolidated level, the difference of taxable income under US GAAP rather than Chinese GAAP, and the difference of Enterprise Income Tax imposed at a statutory rate of 25% rather than preferential tax rate of 15% on the income from the subsidiaries other than Xi’an Tianxing, which resulted in an increase in the effective tax rate of 15.6% and 16.1% for the three months ended March 31, 2014 and 2013, respectively. | |||||||
Income Tax Rate Reconciliation Other Adjustments [Table Text Block] | ' | |||||||
Other items consisted of the following: | ||||||||
Three Months ended March 31, | ||||||||
2014 | 2013 | |||||||
Income taxed at Chinese statutory rate of 25% | 1.3 | % | 1 | % | ||||
Valuation allowance on tax loss | 8.3 | 9.9 | ||||||
Share based compensation | 0.6 | 0.1 | ||||||
Non-deductible operating expenses | 5.4 | 5.1 | ||||||
Total other items | 15.6 | % | 16.1 | % | ||||
Schedule Of Taxes Payable [Table Text Block] | ' | |||||||
Taxes payable consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Income taxes | $ | 1,126,025 | $ | 662,811 | ||||
Value added taxes | 1,526,475 | 576,603 | ||||||
Other taxes | 200,344 | 76,072 | ||||||
Total | $ | 2,852,844 | $ | 1,315,486 | ||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||
The following is the calculation of earnings per share: | ||||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
Net income | $ | 975,450 | $ | 712,733 | ||||
Weighted average shares used in basic computation | 7,676,268 | 7,613,712 | ||||||
Effect of dilutive potential non-vested common shares | 24,466 | - | ||||||
Weighted average shares used in diluted computation | 7,700,734 | 7,613,712 | ||||||
Earnings per share: | ||||||||
Basic | $ | 0.13 | $ | 0.09 | ||||
Diluted | $ | 0.13 | $ | 0.09 | ||||
RELATED_PARTY_TRANSACTIONS_AND1
RELATED PARTY TRANSACTIONS AND ARRANGEMENTS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Schedule of Related Party Transactions [Table Text Block] | ' | |||||||
Amounts payable to related parties are summarized as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Amounts due to related parties | ||||||||
Weibing Lu – CEO (1) | $ | 1,155,155 | $ | 857,012 | ||||
Bing Mei – CFO (3) | 92,209 | 41,283 | ||||||
Scott Cramer – non-executive director and shareholder (2) | 530,349 | 300,203 | ||||||
Directors, shareholders and other related parties (4) | 184,525 | 163,050 | ||||||
Total | $ | 1,962,238 | $ | 1,361,548 | ||||
-1 | As of March 31, 2014 and December 31, 2013, the Company had unpaid reimbursement, compensation, and advances for business expenses due to Weibing Lu valued at $1,155,155 and $857,012, respectively. | |||||||
-2 | As of March 31, 2014 and December 31, 2013, the Company had unpaid reimbursement and compensation due to Scott Cramer valued at $530,349 and $300,203, respectively. On March 10, 2014, the Board of Directors, including all of the independent members of the Board, reviewed and approved the terms of Mr. Cramer’s Consulting Services Agreement with the Company pursuant to which the Company would continue employing him as its US representative in consideration of (i) a quarterly cash fee of $7,500, (ii) 7,000 restricted shares of the Company’s common stock issuable on a quarterly basis pursuant to the Company’s 2010 Stock Incentive Plan (note 15), and (iii) reimbursement of out of pocket expenses. In addition, Mr. Cramer agreed to pay certain invoices of the Company to its vendors (and the Company agreed to reimburse Mr. Cramer) in the form of a no interest bearing loan in the aggregate amount of approximately $250,000. | |||||||
-3 | As of March 31, 2014 and December 31, 2013, the Company had unpaid reimbursement and compensation due to Bing Mei valued at $92,209 and $41,283, respectively. | |||||||
-4 | The amounts due to directors, shareholders and other related parties at March 31, 2014 and December 31, 2013 include unpaid reimbursement and advances to other related parties for business expenses. | |||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||||||||
The minimum future lease payments for the next five years and thereafter are as follows: | |||||||||||
Period | Unrelated third | Related parties | Total | ||||||||
parties | |||||||||||
Year ending December 31, 2014 | $ | 25,761 | $ | 46,742 | $ | 72,503 | |||||
Year ending December 31, 2015 | 8,764 | 52,585 | 61,349 | ||||||||
Year ending December 31, 2016 | 8,764 | 52,585 | 61,349 | ||||||||
Year ending December 31, 2017 and thereafter | 2,191 | 13,633 | 15,824 | ||||||||
Total | $ | 45,480 | $ | 165,545 | $ | 211,025 | |||||
Schedule Of Research and Development Project Costs [Table Text Block] | ' | ||||||||||
R&D projects are summarized as follows: | |||||||||||
Project | Amount | Amount | Total amount | ||||||||
incurred as | expected to be | of | |||||||||
of 03/31/2014 | incurred | project | |||||||||
Project with Northwestern Agricultural Technology University | |||||||||||
Application of nano-technology in the prevention of major milk cow disease | $ | 568,050 | $ | 81,150 | $ | 649,200 | |||||
Project with the Fourth Military Medical University | |||||||||||
Fish diseases linked immunosorbent detection kit and fish diseases Multi-linked monoclonal antibody therapeutic agents | 843,960 | 129,840 | 973,800 | ||||||||
New treatment and diagnosis method for Mycoplasmal pneumonia of swine | 243,450 | 81,150 | 324,600 | ||||||||
In-house R&D projects during 2012: | |||||||||||
Oral liquid products R&D and field trials | 162,300 | - | 162,300 | ||||||||
Powder for injection products R&D and field trials | 162,300 | - | 162,300 | ||||||||
Vitamin E injection product development | 81,150 | - | 81,150 | ||||||||
Anthelmintic product development | 81,150 | - | 81,150 | ||||||||
Three disease grams product development | 81,150 | - | 81,150 | ||||||||
Premixes class product development | 81,150 | - | 81,150 | ||||||||
Bulk powder products development | 81,150 | - | 81,150 | ||||||||
Livestock and fish diseases immunoassay kit development | 405,750 | - | 405,750 | ||||||||
In-house R&D projects during 2013: | |||||||||||
Fish monoclonal antibody vaccine | 486,900 | 81,150 | 568,050 | ||||||||
Livestock and avian disease multi-joint yolk antibody therapeutic agents | 324,600 | 389,520 | 714,120 | ||||||||
Other projects for veterinary products formula adjustment, pet drug development, fermentation engineering design and development, GMP inspection trial production tests and other lab tests | 1,665,948 | 16,230 | 1,682,178 | ||||||||
Total | $ | 5,269,008 | $ | 779,040 | $ | 6,048,048 | |||||
Long-term Purchase Commitment [Table Text Block] | ' | ||||||||||
The Company’s commitments for capital expenditure as of March 31, 2014 are as follows: | |||||||||||
Contracted but not accrued for: | |||||||||||
Purchase of machinery and construction (Note 9) | $ | 4,321,562 | |||||||||
SEGEMENT_INFORMATION_Tables
SEGEMENT INFORMATION (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||
The Company’s revenues and cost of revenues by product line were as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Revenues | ||||||||
Micro-organism | $ | 1,521,165 | $ | 1,667,182 | ||||
Veterinary Medications | 4,844,968 | 3,446,717 | ||||||
Feed Additives | 330,537 | 286,288 | ||||||
Vaccines | 135,918 | 130,554 | ||||||
Total Revenues | $ | 6,832,588 | $ | 5,530,741 | ||||
Cost of Revenues | ||||||||
Micro-organism | $ | 683,784 | $ | 587,417 | ||||
Veterinary Medications | 3,033,027 | 2,105,516 | ||||||
Feed Additives | 220,148 | 214,637 | ||||||
Vaccines | 72,444 | 23,316 | ||||||
Total Cost of Revenues | 4,009,403 | 2,930,886 | ||||||
Gross Profit | $ | 2,823,185 | $ | 2,599,855 | ||||
ORGANIZATION_Details_Textual
ORGANIZATION (Details Textual) | Apr. 21, 2010 | Apr. 21, 2010 | Apr. 21, 2010 | Apr. 21, 2010 | 7-May-10 | Mar. 15, 2011 | Mar. 15, 2011 | Feb. 05, 2010 | Feb. 05, 2010 |
Xian Tianxing [Member] | Xian Tianxing [Member] | Kunshan Sikeda Biotechnology Co Ltd [Member] | Kunshan Sikeda Biotechnology Co Ltd [Member] | Skystar Biotechnology (Kunshan) Co., Limited [Member] | Xian Sikaida Bio-products Co., Ltd. [Member] | Xian Sikaida Bio-products Co., Ltd. [Member] | Skystar Biotechnology (Jingzhou) Co., Limited [Member] | Skystar Biotechnology (Jingzhou) Co., Limited [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | |
Organization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital | $40,575 | 250,000 | $81,150 | 500,000 | $15,000,000 | $1,623,000 | 10,000,000 | $4,200,000 | 26,000,000 |
Capital Required to be Well Capitalized | ' | ' | ' | ' | 12,750,000 | ' | ' | ' | ' |
Capital Contribution In Cash | ' | ' | ' | ' | $2,250,000 | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Purchase option liability | $78,960 | $62,440 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Purchase option liability | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Purchase option liability | 78,960 | 62,440 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Purchase option liability | $0 | $0 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Purchase Option Liability [Line Items] | ' |
Balance, January 1, 2014 | $62,440 |
Change in fair value | 16,520 |
Balance, March 31, 2014 | $78,960 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 3 Months Ended |
Mar. 31, 2014 | |
Building and Building Improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Life | '10 years |
Building and Building Improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Life | '40 years |
Machinery and Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Life | '5 years |
Machinery and Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Life | '10 years |
Office equipment and furniture [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Life | '3 years |
Office equipment and furniture [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Life | '10 years |
Vehicles [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Life | '5 years |
Vehicles [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Life | '10 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Significant Accounting Policies [Line Items] | ' | ' |
Shipping, Handling and Transportation Costs | $192,048 | $203,849 |
Interest Income, Other | 170,665 | 148,845 |
Other Nonoperating Income (Expense) | 154,919 | -187 |
Increase (Decrease) in Due to Related Parties, Total | ' | 201,325 |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations, Total | -4,905,600 | 2,389,800 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations, Total | 4,597,282 | -9,782,575 |
Percentage Of Income Tax Examination Minimum Likelihood Of Tax Benefits Being Realized Upon Settlement | 50.00% | ' |
Government Grants [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Other Nonoperating Income (Expense) | 154,902 | 0 |
Scenario, Previously Reported [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Other Nonoperating Income (Expense) | 40,547 | ' |
Interest Expense | 189,392 | ' |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations, Total | ' | 2,591,125 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations, Total | ' | $9,983,900 |
Land Use Right [Member] | Huxian Facility [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '50 years | ' |
Land Use Right [Member] | Jingzhou Facility [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '30 years | ' |
Land Use Right [Member] | Kunshan Facility [Member] | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '41 years | ' |
CONCENTRATIONS_AND_CREDIT_RISK1
CONCENTRATIONS AND CREDIT RISK (Details Textual) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | Product Concentration Risk [Member] | Product Concentration Risk [Member] | |||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | 71.00% | 72.00% | 32.00% | 16.00% |
Due To Related Parties, Current | $1,962,238 | $1,361,548 | ' | ' | $32,801,071 | $32,094,767 |
ACCOUNTS_RECEIVABLE_NET_Detail
ACCOUNTS RECEIVABLE, NET (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of Financing Receivable [Line Items] | ' | ' |
Accounts receivable | $13,624,127 | $11,611,741 |
Allowance for doubtful accounts | -960,578 | -602,243 |
Accounts receivable, net | $12,663,549 | $11,009,498 |
ACCOUNTS_RECEIVABLE_NET_Detail1
ACCOUNTS RECEIVABLE, NET (Details 1) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Schedule of Financing Receivable [Line Items] | ' |
Balance, January 1, 2014 | $602,243 |
Addition | 366,218 |
Recovery | 0 |
Translation adjustment | -7,883 |
Balance, March 31, 2014 | $960,578 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Inventory [Line Items] | ' | ' |
Raw materials | $21,970,441 | $23,001,461 |
Packing materials | 350,799 | 396,067 |
Work-in-process | 152,884 | 23,140 |
Finished goods | 2,717,505 | 2,409,083 |
Other | 74,154 | 73,835 |
Total | $25,265,783 | $25,903,586 |
DEPOSITS_PREPAID_EXPENSES_AND_2
DEPOSITS, PREPAID EXPENSES AND OTHER RECEIVABLES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Deposits and Prepaid Expenses [Line Items] | ' | ' |
Other prepayments | $365,055 | $478,144 |
Deposits placed with guarantors (note 13) | 486,900 | 491,100 |
Interest receivable (notes 7 and 12) | 168,718 | 497,844 |
Other receivables | 587,732 | 667,075 |
Total | $1,608,405 | $2,134,163 |
PREPAYMENTS_TO_SUPPLIERS_Detai
PREPAYMENTS TO SUPPLIERS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Payments To Suppliers [Line Items] | ' | ' |
Prepayments for raw materials | $39,438,992 | $39,937,944 |
Prepayments for packaging materials | 1,102,483 | 1,123,200 |
Total | $40,541,475 | $41,061,144 |
PREPAYMENTS_TO_SUPPLIERS_Detai1
PREPAYMENTS TO SUPPLIERS (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Payments To Suppliers [Line Items] | ' | ' | ' |
Unpaid interest income on prepayments to suppliers | $162,205 | $118,182 | ' |
Payments to Suppliers | 32,199,192 | ' | 31,953,084 |
Interest Rate Charged Annually On Prepayment On Raw Material | 2.00% | ' | 2.00% |
Unpaid Balance To Supplier | $160,995 | ' | $497,844 |
PROPERTY_PLANT_AND_EQUIPMENT_N2
PROPERTY, PLANT AND EQUIPMENT, NET (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Buildings and improvements | $28,033,999 | $27,703,872 |
Machinery and equipment | 8,261,929 | 6,093,533 |
Office equipment and furniture | 334,800 | 337,688 |
Vehicles | 606,755 | 611,989 |
Total | 37,237,483 | 34,747,082 |
Less: accumulated depreciation | -6,819,830 | -6,477,927 |
Plant and equipment, net | $30,417,653 | $28,269,155 |
PROPERTY_PLANT_AND_EQUIPMENT_N3
PROPERTY, PLANT AND EQUIPMENT, NET (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation | $400,291 | $313,561 | ' |
Property, Plant and Equipment Pledged Against Loan | $3,191,746 | ' | $19,969,335 |
CONSTRUCTIONINPROGRESS_Details
CONSTRUCTION-IN-PROGRESS (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Construction In Progress [Line Items] | ' | ' |
Total in CIP as of March 31,2014 | $6,470,772 | $9,284,947 |
Estimate Cost to Complete | 7,742,059 | ' |
Estimated Total Cost | 14,212,831 | ' |
Jingzhou Veterinary Medication Facility [Member] | ' | ' |
Construction In Progress [Line Items] | ' | ' |
Total in CIP as of March 31,2014 | 1,203,130 | ' |
Estimate Cost to Complete | 501,020 | ' |
Estimated Total Cost | 1,704,150 | ' |
Estimated Completion Date | 'Fourth quarter of 2014 | ' |
Kunshan Micro Organism Facility [Member] | ' | ' |
Construction In Progress [Line Items] | ' | ' |
Total in CIP as of March 31,2014 | 5,267,642 | 5,267,642 |
Estimate Cost to Complete | 7,241,039 | ' |
Estimated Total Cost | $12,508,681 | ' |
Estimated Completion Date | 'Construction - completed, Installation of machinery and equipment – Third quarter of 2014 | ' |
CONSTRUCTIONINPROGRESS_Details1
CONSTRUCTION-IN-PROGRESS (Details Textual) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2011 | Mar. 31, 2014 | Dec. 31, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | |
Huxian Vaccine Facility [Member] | Huxian Animal Laboratory [Member] | Huxian Animal Laboratory [Member] | Jingzhou Facility [Member] | Jingzhou Facility [Member] | Kunshan Micro Organism Facility [Member] | Kunshan Micro Organism Facility [Member] | ||||
Construction In Progress [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total in cost in progress | $6,470,772 | ' | $9,284,947 | ' | ' | $324,600 | $1,203,130 | $1,704,150 | $5,267,642 | $5,267,642 |
Payments to Acquire Machinery and Equipment | ' | ' | ' | 2,462,966 | 324,600 | ' | ' | ' | 3,482,958 | ' |
Purchase Price of Machinery And Equipment | ' | ' | ' | ' | ' | ' | ' | ' | 7,303,500 | ' |
Interest Costs Capitalized | $53,195 | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
LONGTERM_PREPAYMENTS_Details
LONG-TERM PREPAYMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Long Tem Prepayments [Line Items] | ' | ' |
Deposits for equipment purchase and land use rights | $3,836,884 | $3,871,228 |
Construction deposits | 386,224 | 366,688 |
Prepayments for R&D project | 363,552 | 389,556 |
Deposits for other | 6,091 | 6,142 |
Long-term prepayments | 4,592,751 | 4,633,614 |
Long-term prepayments for acquisitions | $0 | $183,344 |
LONGTERM_PREPAYMENTS_Details_T
LONG-TERM PREPAYMENTS (Details Textual) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Long Tem Prepayments [Line Items] | ' | ' |
Long-term prepayments for acquisitions | $0 | $183,344 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total | $7,506,377 | $7,571,127 |
Less: accumulated amortization | -2,375,923 | -2,333,872 |
Intangible assets, net | 5,130,454 | 5,237,255 |
Land Use Rights [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total | 4,909,577 | 4,951,927 |
Technical Know How [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total | $2,596,800 | $2,619,200 |
INTANGIBLE_ASSETS_Details_1
INTANGIBLE ASSETS (Details 1) (USD $) | Dec. 31, 2013 |
Intangible Assets Future Amortization Expense [Line Items] | ' |
2014 | $186,032 |
2015 | 248,042 |
2016 | 248,042 |
2017 | 248,042 |
2018 | 248,042 |
Thereafter | 3,952,254 |
Total | $5,130,454 |
INTANGIBLE_ASSETS_Details_Text
INTANGIBLE ASSETS (Details Textual) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Use Rights [Member] | Use Rights [Member] | |||
Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization | $62,477 | $60,872 | ' | ' |
Real Estate and Accumulated Depreciation, Carrying Amount of Land | ' | ' | $1,136,461 | $1,529,960 |
LOANS_RECEIVABLE_Details_Textu
LOANS RECEIVABLE (Details Textual) | 3 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2014 | Jan. 02, 2014 | Jan. 02, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
USD ($) | CNY | USD ($) | CNY | USD ($) | Prepaid Expenses and Other Current Assets [Member] | |
USD ($) | ||||||
Loans Receivables [Line Items] | ' | ' | ' | ' | ' | ' |
Notes Receivable Stated Interest Rate | ' | ' | 6.00% | 6.00% | ' | ' |
Notes, Loans and Financing Receivable, Net, Current | $1,046,835 | 6,450,000 | $1,298,400 | 8,000,000 | $0 | ' |
Interest and Fee Income, Loans and Leases, Total | 7,781 | ' | ' | ' | ' | ' |
Interest Payable | ' | ' | ' | ' | ' | $7,723 |
SHORTTERM_LOANS_Details
SHORT-TERM LOANS (Details) | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 16, 2013 | Apr. 16, 2013 | Apr. 14, 2014 | Apr. 14, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 16, 2013 | Jan. 16, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | ||||||||
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Changan Bank [Member] | Changan Bank [Member] | Industrial Bank Co Ltd Xian Branch [Member] | Industrial Bank Co Ltd Xian Branch [Member] | Industrial Bank Co Ltd Xian Branch [Member] | Industrial Bank Co Ltd Xian Branch [Member] | Industrial Bank Co Ltd Xian Branch [Member] | Industrial Bank Co Ltd Xian Branch [Member] | Postal Savings Bank of China Xi'an Branch [Member] | Postal Savings Bank of China Xi'an Branch [Member] | Postal Savings Bank of China Xi'an Branch [Member] | Postal Savings Bank of China Xi'an Branch [Member] | Icbc Songzi Branch Two [Member] | Icbc Songzi Branch Two [Member] | Icbc Songzi Branch Two [Member] | Icbc Songzi Branch Two [Member] | Related-party Individual - Chairman and CEO [Member] | Related-party Individual - Chairman and CEO [Member] | Related-party Individual - Chairman and CEO [Member] | Related-party Individual - Chairman and CEO [Member] | |||||||||
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | |||||||||||||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Bank Loans | $5,680,500 | 35,000,000 | $10,640,500 | 65,000,000 | $324,600 | 2,000,000 | $7,790,400 | 48,000,000 | $0 | 0 | $4,911,000 | 30,000,000 | $4,869,000 | 30,000,000 | $3,246,000 | [1] | 20,000,000 | [1] | $3,274,000 | [1] | 20,000,000 | [1] | $811,500 | [2] | 5,000,000 | [2] | $818,500 | [2] | 5,000,000 | [2] | $1,623,000 | 10,000,000 | $1,637,000 | 10,000,000 |
Due Date | ' | ' | ' | ' | ' | ' | ' | ' | 15-Jan-14 | 15-Jan-14 | ' | ' | ' | ' | 26-May-14 | [1] | 26-May-14 | [1] | ' | ' | 19-Jun-14 | [2] | 19-Jun-14 | [2] | ' | ' | 11-Sep-14 | 11-Sep-14 | ' | ' | ||||
Interest Rate | ' | ' | ' | ' | ' | ' | 3.00% | 3.00% | 6.60% | 6.60% | ' | ' | 6.60% | 6.60% | ' | ' | ' | ' | ' | ' | ' | ' | 7.80% | 7.80% | ' | ' | ||||||||
[1] | People's Bank of China floating benchmark lending rate over the same period plus 20%, which was 7.2% at March 31, 2014. | |||||||||||||||||||||||||||||||||
[2] | People's Bank of China floating benchmark lending rate over the same period plus 30%, which was 7.8% at March 31, 2014. |
SHORTTERM_LOANS_Details_Textua
SHORT-TERM LOANS (Details Textual) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 16, 2013 | Apr. 16, 2013 | Apr. 21, 2014 | Apr. 21, 2014 | Apr. 14, 2014 | Apr. 14, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 21, 2014 | Apr. 21, 2014 | Apr. 14, 2014 | Apr. 14, 2014 | Mar. 31, 2014 | Jun. 13, 2013 | Jun. 13, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 14, 2014 | Apr. 14, 2014 | Jun. 13, 2013 | Jun. 13, 2013 | Mar. 31, 2014 | Jan. 16, 2013 | Jan. 16, 2013 | Apr. 16, 2013 | Apr. 16, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 16, 2013 | Apr. 16, 2013 | Mar. 31, 2014 | Sep. 10, 2013 | Sep. 10, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 16, 2013 | Jan. 16, 2013 | |
USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | CNY | Bankers Acceptance [Member] | Bankers Acceptance [Member] | Bankers Acceptance [Member] | Bankers Acceptance [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Construction in Progress [Member] | Industrial and Commercial Bank Of China Songzi Branch [Member] | Industrial and Commercial Bank Of China Songzi Branch [Member] | Industrial and Commercial Bank Of China Songzi Branch [Member] | Industrial and Commercial Bank Of China Songzi Branch [Member] | Industrial and Commercial Bank Of China Songzi Branch [Member] | Changan Bank [Member] | Changan Bank [Member] | Industrial and Commercial Bank Of China [Member] | Industrial and Commercial Bank Of China [Member] | Industrial and Commercial Bank Of China [Member] | Industrial and Commercial Bank Of China [Member] | Industrial and Commercial Bank Of China [Member] | Xian Taixin Investment Guarantee Co Ltd [Member] | Xian Taixin Investment Guarantee Co Ltd [Member] | Xian Taixin Investment Guarantee Co Ltd [Member] | Xian Taixin Investment Guarantee Co Ltd [Member] | Postal Savings Bank Of China Xi [Member] | Postal Savings Bank Of China Xi [Member] | Postal Savings Bank Of China Xi [Member] | Bank Of Beijing [Member] | Bank Of Beijing [Member] | Bank Of Beijing [Member] | Bank Of Beijing [Member] | Industrial Bank Co Ltd Xian Branch [Member] | Industrial Bank Co Ltd Xian Branch [Member] | Industrial Bank Co Ltd Xian Branch [Member] | Industrial Bank Co Ltd Xian Branch [Member] | Industrial Bank Co Ltd Xian Branch [Member] | Industrial Bank Co Ltd Xian Branch [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Chairman And CEO [Member] | Chairman And CEO [Member] | Chairman And CEO [Member] | Chairman And CEO [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | |||||||||||
USD ($) | CNY | USD ($) | CNY | ||||||||||||||||||||||||||||||||||||||||||||
Short Term And Long Term [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank Loans | $5,680,500 | 65,000,000 | ' | 35,000,000 | $10,640,500 | $324,600 | 2,000,000 | ' | ' | ' | ' | ' | ' | $7,790,400 | 48,000,000 | $7,790,400 | 48,000,000 | ' | $811,500 | 5,000,000 | ' | ' | ' | $7,790,400 | 48,000,000 | $811,500 | 5,000,000 | ' | $4,869,000 | 30,000,000 | $324,600 | 2,000,000 | $58,158 | 360,000 | $3,246,000 | 20,000,000 | ' | ' | ' | ' | ' | $0 | 0 | $4,911,000 | 30,000,000 | $4,869,000 | 30,000,000 |
Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 3.00% | ' | ' | ' | 7.80% | ' | ' | 3.00% | 3.00% | 30.00% | 30.00% | 7.80% | 6.60% | 6.60% | ' | ' | 10.00% | 10.00% | 20.00% | 20.00% | 7.20% | 7.80% | 7.80% | ' | ' | 6.60% | 6.60% | ' | ' | 6.60% | 6.60% |
Cash paid for interest | 129,129 | 189,392 | 181,426 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,195 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fee Paid For Loan Guarantee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81,150 | 500,000 | ' | 81,150 | 500,000 | ' | ' | ' | ' | ' | ' | ' | 58,158 | 360,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Description of Variable Rate Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'People's Bank of China floating benchmark lending rate over the same period plus 30% of that rate | 'People's Bank of China floating benchmark lending rate over the same period plus 30% of that rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'People's Bank of China floating benchmark lending rate over the same period plus 20% of that rate | 'People's Bank of China floating benchmark lending rate over the same period plus 20% of that rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Collateral Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 162,300 | 1,000,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'This loan is secured by the Companys buildings and land use rights in Jingzhou, Hubei Province. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10% of the loan or $324,600 (RMB 2,000,000) is required to be kept by Xian Investment and Financing Guarantee Co., Ltd. to serve as collateral until the loan is repaid. This loan is secured by the Companys office buildings located in Xian | '10% of the loan or $324,600 (RMB 2,000,000) is required to be kept by Xian Investment and Financing Guarantee Co., Ltd. to serve as collateral until the loan is repaid. This loan is secured by the Companys office buildings located in Xian | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term Bank Loans and Notes Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,623,000 | 10,000,000 | 162,300 | 1,000,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate Terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'People's Bank of China floating benchmark lending rate over the same period plus 30% of that rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'period plus 30% of that rate, which was 7.8% at the date that the loan was issued. | 'period plus 30% of that rate, which was 7.8% at the date that the loan was issued. | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Issuance Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,434 | 180,000 | ' | ' | ' | ' | ' | ' |
Percentage Of Loan Served As Collateral Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' |
Pledged Assets, Not Separately Reported, Real Estate | 16,811,260 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Fee Amount | ' | ' | ' | ' | ' | ' | ' | 3,895 | 24,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Expense, Short-term Borrowings, Total | 129,129 | ' | 189,392 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Bank Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,790,400 | 48,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Costs Capitalized | 53,195 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposit Assets, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,895,200 | 24,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Fee Percentage | ' | ' | ' | ' | ' | ' | ' | 0.05% | 0.05% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DEFERRED_GOVERNMENT_GRANT_Deta
DEFERRED GOVERNMENT GRANT (Details Textual) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Xian Municipal Government [Member] | Xian Municipal Government [Member] | Xian Municipal Government [Member] | Xian Municipal Government [Member] | Xian City Science and Technology Bureau [Member] | Xian City Science and Technology Bureau [Member] | Xian City Science and Technology Bureau [Member] | |
USD ($) | CNY | USD ($) | USD ($) | USD ($) | CNY | USD ($) | |
Deferred Government Grant [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Proceeds From Government Subsidies | $405,750 | 2,500,000 | $409,250 | ' | ' | ' | ' |
Repayments Of Government Subsidies | 681,660 | 4,200,000 | 687,540 | ' | ' | ' | ' |
Percentage Repayment Of Government Subsidies | 70.00% | 70.00% | ' | ' | ' | ' | ' |
Proceeds From Demand Payment | ' | ' | ' | ' | 486,900 | 3,000,000 | 491,100 |
Proceeds from Interest Received | $194,760 | 1,200,000 | ' | $196,440 | ' | ' | ' |
CAPITAL_TRANSACTIONS_Details
CAPITAL TRANSACTIONS (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Nonvested shares [Line Items] | ' | ' |
Non-vested at January 1, 2013 | 13,000 | 6,000 |
Granted | 50,000 | 69,556 |
Vested | -21,500 | -62,556 |
Forfeited | 0 | 0 |
Non-vested at Ending | 41,500 | 13,000 |
CAPITAL_TRANSACTIONS_Details_1
CAPITAL TRANSACTIONS (Details 1) (Purchase Options [Member], USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Purchase Options [Member] | ' | ' |
Purchase Options [Line Items] | ' | ' |
Stock price | $6.56 | $3.51 |
Exercise price | $8.11 | $8.11 |
Annual dividend yield | 0.00% | 0.00% |
Expected term (years) | '3 months | '6 months |
Risk-free interest rate | 0.05% | 0.10% |
Expected volatility | 80.00% | 125.00% |
Option value | $0.56 | $0.45 |
CAPITAL_TRANSACTIONS_Details_2
CAPITAL TRANSACTIONS (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Purchase Options [Line Items] | ' | ' |
Number of options purchase, Outstanding, beginning balance | 140,000 | ' |
Granted, Number of warrants/purchase options | 0 | ' |
Forfeited, Number of warrants/purchase options | 0 | ' |
Exercised, Number of warrants/purchase options | 0 | ' |
Number of options purchase, Outstanding, ending balance | 140,000 | 140,000 |
Exercisable at March 31, 2014, Number of warrants/purchase options | 140,000 | ' |
Outstanding, Weighted - average exercise price, beginning balance | $8.11 | ' |
Weighted Average Exercise Price Of Warrants And Purchase Options Granted Number | $0 | ' |
Forfeited, Weighted - average exercise price | $0 | ' |
Weighted Average Exercise Price Of Warrants And Purchase Options Exercised Number | $0 | ' |
Outstanding, Weighted - average exercise price, ending balance | $8.11 | $8.11 |
Exercisable at March 31, 2014, Weighted - average exercise price | $8.11 | ' |
Weighted- average remaining contractual term, outstanding (Year) | '3 months | '6 months |
Exercisable at March 31, 2014, Weighted - average remaining contractual term (Year) | '3 months | ' |
CAPITAL_TRANSACTIONS_Details_T
CAPITAL TRANSACTIONS (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2010 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 08, 2009 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | 4-May-12 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | 26-May-09 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 29, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Compensation Plan 2010 [Member] | Equity Compensation Plan 2010 [Member] | Equity Compensation Plan 2010 [Member] | Equity Compensation Plan 2010 [Member] | Equity Compensation Plan 2010 [Member] | Non Executive Director [Member] | Non Executive Director [Member] | Non Executive Director [Member] | Non Executive Director [Member] | Non Executive Director [Member] | Director [Member] | Director [Member] | Director [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | Chief Executive Officer [Member] | |||||
Equity Compensation Plan 2010 [Member] | Equity Compensation Plan 2010 [Member] | Equity Compensation Plan 2010 [Member] | Equity Compensation Plan 2010 [Member] | |||||||||||||||||||||
Capital Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,000 | ' | ' | 5,556 | ' | ' | 8,000 | ' | ' | ' | ' |
Fair Market Value Per Common Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.95 | ' | $1.73 | ' | ' | ' | $4.20 | ' | ' | ' | ' |
Closing Market Price Per Common Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.20 | $2.39 | $2.17 | $3.59 | $1.37 | $2.17 | ' |
Share Based Compensation Number Of Share Issuable In Twelve Months Anniversary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' |
Share Based Compensation Number Of Share Issuable In Six Months Anniversary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' |
Common Stock Purchase Options Exercise Price | ' | ' | ' | $8.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Purchase Options Outstanding | 140,000 | ' | 140,000 | 140,000 | ' | ' | ' | 247,119 | 247,119 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 442,881 | 11,112 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | 56,000 | ' | 49,000 | ' | ' | ' | ' | 2,000 | 12,000 | 10,000 | ' | ' |
Unrecognized Compensation Cost | ' | ' | ' | ' | ' | ' | ' | $138,198 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of purchase option liability | -16,520 | 4,466 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | 140,000 | 140,000 | ' | 59,725 | ' | 4,340 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award, Number Of Shares Expected to Vest | 12,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,500 |
Share-based Compensation, Total | $59,725 | $4,340 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Vested In Period | 21,500 | ' | 62,556 | ' | ' | ' | ' | 91,612 | 70,112 | ' | ' | ' | ' | 7,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000 | ' | ' | ' | ' |
STATUTORY_RESERVES_Details_Tex
STATUTORY RESERVES (Details Textual) | Mar. 31, 2014 |
Statutory Reserves [Line Items] | ' |
Percentage Of Net Income To Be Set Aside On Annual Basis To Statutory Surplus Reserve Fund | 10.00% |
Maximum Percentage Of Statutory Surplus Reserve Over Entity's Registered Capital | 50.00% |
TAXES_Details
TAXES (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Disclosure [Line Items] | ' | ' |
Current | $472,407 | $321,284 |
Deferred | -42,380 | 0 |
Total | $430,027 | $321,284 |
TAXES_Details_1
TAXES (Details 1) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | |||
Income Tax Disclosure [Line Items] | ' | ' | ||
U.S. statutory rate | 34.00% | 34.00% | ||
Foreign income not recognized in the U.S. | -34.00% | -34.00% | ||
China income tax rate | 25.00% | 25.00% | ||
China income tax exemption | -10.00% | -10.00% | ||
Other items (1) | 15.60% | [1] | 16.10% | [1] |
Total provision for income taxes | 30.60% | 31.10% | ||
[1] | Other items are primarily for operating expenses (income) incurred by Skystar that are not deductible (taxable) in the PRC, expenses incurred by other subsidiaries that are not deductible on the consolidated level, the difference of taxable income under US GAAP rather than Chinese GAAP, and the difference of Enterprise Income Tax imposed at a statutory rate of 25% rather than preferential tax rate of 15% on the income from the subsidiaries other than Xiban Tianxing, which resulted in an increase in the effective tax rate of 15.6% and 16.1% for the three months ended March 31, 2014 and 2013, respectively. |
TAXES_Details_2
TAXES (Details 2) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | |||
Income Tax Disclosure [Line Items] | ' | ' | ||
Income taxed at Chinese statutory rate of 25% | 1.30% | 1.00% | ||
Valuation allowance on tax loss | 8.30% | 9.90% | ||
Share based compensation | 0.60% | 0.10% | ||
Non-deductible operating expenses | 5.40% | 5.10% | ||
Total other items | 15.60% | [1] | 16.10% | [1] |
[1] | Other items are primarily for operating expenses (income) incurred by Skystar that are not deductible (taxable) in the PRC, expenses incurred by other subsidiaries that are not deductible on the consolidated level, the difference of taxable income under US GAAP rather than Chinese GAAP, and the difference of Enterprise Income Tax imposed at a statutory rate of 25% rather than preferential tax rate of 15% on the income from the subsidiaries other than Xiban Tianxing, which resulted in an increase in the effective tax rate of 15.6% and 16.1% for the three months ended March 31, 2014 and 2013, respectively. |
TAXES_Details_3
TAXES (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Line Items] | ' | ' |
Income taxes | $1,126,025 | $662,811 |
Value added taxes | 1,526,475 | 576,603 |
Other taxes | 200,344 | 76,072 |
Total | $2,852,844 | $1,315,486 |
TAXES_Details_Textual
TAXES (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Foreign Income Tax Statutory Rate | 25.00% | ' | ' |
Foreign Preferential Tax Rate | 15.00% | ' | ' |
Effective Income Tax Rate Reconciliation, Nondeductible Expense | 15.60% | 16.10% | ' |
Operating Loss Carryforwards, Valuation Allowance | $1,723,589 | ' | $1,671,817 |
Undistributed Earnings Of Foreign Subsidiaries | 52,900,000 | ' | 50,900,000 |
Deferred Tax Assets, Net | 403,372 | ' | 364,425 |
Accrued Liabilities, Current | 163,227 | ' | 213,865 |
Allowance for Doubtful Accounts Receivable | 240,145 | ' | 150,560 |
U S Income Tax [Member] | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Operating Loss Carryforwards | 5,069,380 | ' | 4,917,108 |
P R C Income Tax [Member] | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Operating Loss Carryforwards | 5,039,534 | ' | 4,572,233 |
Operating Loss Carryforwards, Valuation Allowance | $1,259,883 | ' | $1,142,813 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Line Items] | ' | ' |
Net income | $975,450 | $712,733 |
Weighted average shares used in basic computation | 7,676,268 | 7,613,712 |
Effect of dilutive potential non-vested common shares | 24,466 | 0 |
Weighted average shares used in diluted computation | 7,700,734 | 7,613,712 |
Earnings per share: | ' | ' |
Basic (in dollars per share) | $0.13 | $0.09 |
Diluted (in dollars per share) | $0.13 | $0.09 |
EARNINGS_PER_SHARE_Details_Tex
EARNINGS PER SHARE (Details Textual) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Employee Stock Option [Member] | ' | ' |
Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 140,000 | 140,000 |
Non Vested Shares [Member] | ' | ' |
Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 4,000 |
RELATED_PARTY_TRANSACTIONS_AND2
RELATED PARTY TRANSACTIONS AND ARRANGEMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Related Party Transaction [Line Items] | ' | ' | ||
Amounts due to related parties | $1,962,238 | $1,361,548 | ||
Weibing Lu - Ceo [Member] | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ||
Amounts due to related parties | 1,155,155 | [1] | 857,012 | [1] |
Scott Cramer - Non-Executive Director And Shareholder [Member] | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ||
Amounts due to related parties | 530,349 | [2] | 300,203 | [2] |
Officer, Shareholder And Other Related Party [Member] | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ||
Amounts due to related parties | 184,525 | [3] | 163,050 | [3] |
Bing Mei Cfo [Member] | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ||
Amounts due to related parties | $92,209 | [4] | $41,283 | [4] |
[1] | As of March 31, 2014 and December 31, 2013, the Company had unpaid reimbursement, compensation, and advances for business expenses due to Weibing Lu valued at $1,155,155 and $857,012, respectively. | |||
[2] | As of March 31, 2014 and December 31, 2013, the Company had unpaid reimbursement and compensation due to Scott Cramer valued at $530,349 and $300,203, respectively. On March 10, 2014, the Board of Directors, including all of the independent members of the Board, reviewed and approved the terms of Mr. Cramerbs Consulting Services Agreement with the Company pursuant to which the Company would continue employing him as its US representative in consideration of (i) a quarterly cash fee of $7,500, (ii) 7,000 restricted shares of the Companybs common stock issuable on a quarterly basis pursuant to the Companybs 2010 Stock Incentive Plan (note 15), and (iii) reimbursement of out of pocket expenses. In addition, Mr. Cramer agreed to pay certain invoices of the Company to its vendors (and the Company agreed to reimburse Mr. Cramer) in the form of a no interest bearing loan in the aggregate amount of approximately $250,000. | |||
[3] | The amounts due to directors, shareholders and other related parties at March 31, 2014 and December 31, 2013 include unpaid reimbursement and advances to other related parties for business expenses. | |||
[4] | As of March 31, 2014 and December 31, 2013, the Company had unpaid reimbursement and compensation due to Bing Mei valued at $92,209 and $41,283, respectively. |
RELATED_PARTY_TRANSACTIONS_AND3
RELATED PARTY TRANSACTIONS AND ARRANGEMENTS (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 50,000 | 69,556 |
Scott Cramer Non Executive Director and Shareholder [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to Related Parties, Total | 530,349 | 300,203 |
Weibing Lu - Ceo [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to Related Parties, Total | 1,155,155 | 857,012 |
Bing Mei Cfo [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to Related Parties, Total | 92,209 | 41,283 |
US Representative [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Professional Fees | 7,500 | ' |
Reimbursement Payable | 250,000 | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 7,000 | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Mar. 31, 2014 |
Future Minimum Payments [Line Items] | ' |
Year ending December 31, 2014 | $72,503 |
Year ending December 31, 2015 | 61,349 |
Year ending December 31, 2016 | 61,349 |
Year ending December 31, 2017 and thereafter | 15,824 |
Total | 211,025 |
Unrelated third parties [Member] | ' |
Future Minimum Payments [Line Items] | ' |
Year ending December 31, 2014 | 25,761 |
Year ending December 31, 2015 | 8,764 |
Year ending December 31, 2016 | 8,764 |
Year ending December 31, 2017 and thereafter | 2,191 |
Total | 45,480 |
Related parties [Member] | ' |
Future Minimum Payments [Line Items] | ' |
Year ending December 31, 2014 | 46,742 |
Year ending December 31, 2015 | 52,585 |
Year ending December 31, 2016 | 52,585 |
Year ending December 31, 2017 and thereafter | 13,633 |
Total | $165,545 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 1) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2009 | Dec. 31, 2009 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
USD ($) | Project With Northwestern Agricultural Technology University [Member] | Project With Northwestern Agricultural Technology University [Member] | Project With Fourth Military Medical University One [Member] | Project With Fourth Military Medical University One [Member] | Project With Fourth Military Medical University One [Member] | Project With Fourth Military Medical University One [Member] | Project With Fourth Military Medical University Two [Member] | Project With Fourth Military Medical University Two [Member] | Project With Fourth Military Medical University Two [Member] | Project With Fourth Military Medical University Two [Member] | Project With Fourth Military Medical University Three [Member] | Project With Fourth Military Medical University Three [Member] | Project With Fourth Military Medical University Three [Member] | Project With Fourth Military Medical University Three [Member] | In House R And D Project One [Member] | In House R And D Project Two [Member] | In House Rand D Project Three [Member] | In House R And D Project Four [Member] | In House R and D Project Five [Member] | In House R and D Project Six [Member] | In House R and D Project Seven [Member] | In House R and D Project Eight [Member] | In House R and D Project Nine [Member] | In House R and D Project Ten [Member] | In House R and D Project Eleven [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount incurred as of 3/31/2014 | $5,269,008 | $568,050 | 3,500,000 | $843,960 | 5,200,000 | ' | ' | $243,450 | 1,500,000 | ' | ' | $486,900 | 3,000,000 | ' | ' | $162,300 | $162,300 | $81,150 | $81,150 | $81,150 | $81,150 | $81,150 | $405,750 | $486,900 | $324,600 | $1,665,948 |
Amount expected to be incurred | 779,040 | 81,150 | ' | 129,840 | ' | 973,800 | 6,000,000 | 81,150 | ' | 324,600 | 2,000,000 | ' | ' | 568,050 | 3,500,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 81,150 | 389,520 | 16,230 |
Total amount of project | $6,048,048 | $649,200 | ' | $973,800 | ' | ' | ' | $324,600 | ' | ' | ' | ' | ' | ' | ' | $162,300 | $162,300 | $81,150 | $81,150 | $81,150 | $81,150 | $81,150 | $405,750 | $568,050 | $714,120 | $1,682,178 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details 2) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Contracted but not accrued for: | ' |
Purchase of machinery and construction (Note 9) | $4,321,562 |
COMMITMENTS_AND_CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Details Textual) | Mar. 31, 2014 | 7-May-12 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2009 | Dec. 31, 2009 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2008 | Dec. 31, 2008 | Apr. 15, 2013 | Apr. 18, 2012 | Apr. 18, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 01, 2007 | Jan. 01, 2007 | Jan. 31, 2012 | Jan. 31, 2012 | Mar. 31, 2014 | Apr. 17, 2014 | Apr. 15, 2013 | Oct. 15, 2012 | Oct. 15, 2012 | Apr. 15, 2012 | Apr. 15, 2012 | Apr. 17, 2012 | Apr. 17, 2012 | Jul. 20, 2011 | Jul. 20, 2011 | Jul. 20, 2011 | Mar. 31, 2014 | Mar. 31, 2014 |
USD ($) | Skystar Biotechnology (Kunshan) Co., Limited [Member] | Related Parties [Member] | Related Parties [Member] | Unrelated Third Parties [Member] | Unrelated Third Parties [Member] | Project With Northwestern Agricultural Technology University [Member] | Project With Northwestern Agricultural Technology University [Member] | Project With Fourth Military Medical University One [Member] | Project With Fourth Military Medical University One [Member] | Project With Fourth Military Medical University One [Member] | Project With Fourth Military Medical University One [Member] | Project With Fourth Military Medical University Two [Member] | Project With Fourth Military Medical University Two [Member] | Project With Fourth Military Medical University Two [Member] | Project With Fourth Military Medical University Two [Member] | Veterinary Products Formula Adjustment Pet Drug Development and Fermentation Engineering Design and Development Project [Member] | Veterinary Products Formula Adjustment Pet Drug Development and Fermentation Engineering Design and Development Project [Member] | Project With Fourth Military Medical University [Member] | Project With Fourth Military Medical University [Member] | Jingzhou [Member] | Jingzhou [Member] | Jingzhou [Member] | Lantian County Chicken Farm [Member] | Lantian County Chicken Farm [Member] | Project With Fourth Military Medical University Three [Member] | Project With Fourth Military Medical University Three [Member] | Project With Fourth Military Medical University Three [Member] | Project With Fourth Military Medical University Three [Member] | Sanqiao Factory Premises [Member] | Sanqiao Factory Premises [Member] | Shanghai Siqiangs Office Space [Member] | Shanghai Siqiangs Office Space [Member] | Shanghai Siqiangs Office Space [Member] | Shanghai Siqiangs Office Space [Member] | Shanghai Siqiangs Office Space [Member] | Kunshan Office [Member] | Kunshan Office [Member] | Kunshan Office [Member] | Kunshan Office [Member] | Kunshan Office [Member] | Kunshan Office [Member] | Kunshan Office [Member] | Kunshan Office [Member] | Kunshan Office [Member] | Xian Warehouse Premises [Member] | Xian Warehouse Premises [Member] | Xian Warehouse Premises [Member] | Xian Warehouse Premises [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Mr Weibing Lu [Member] | Mr Weibing Lu [Member] | Mr Weibing Lu [Member] | Mr Weibing Lu [Member] | Mr Weibing Lu [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | ||||||
USD ($) | CNY | USD ($) | CNY | ||||||||||||||||||||||||||||||||||||||||||||||
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of Lessee Leasing Arrangements, Operating Leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Company entered into a tenancy agreement for the lease of a sales office in Jingzhou, Hubei Province for a period of five years from April 18, 2012 to April 17, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | 'Company entered into a tenancy agreement for the lease of factory premises of Xian Tianxing in Sanqiao for a period of ten years from October 1, 2004 to December 31, 2014. The annual rent for the factory premises is subject to a 10% increase every two years starting October 1, 2009 | 'Company entered into a tenancy agreement for the lease of factory premises of Xian Tianxing in Sanqiao for a period of ten years from October 1, 2004 to December 31, 2014. The annual rent for the factory premises is subject to a 10% increase every two years starting October 1, 2009 | ' | ' | ' | ' | 'Company also entered into a tenancy agreement with Mr. Weibing Lu for the lease of Shanghai Siqiangs office in Shanghai for a period of ten years from August 1, 2007 to August 1, 2017 | 'Company entered into an another one-year tenancy agreement for this office from April 15, 2014 to April 14, 2015 | 'Company entered into an another one-year tenancy agreement for this office from April 15, 2013 to April 14, 2014 | 'Company entered into a one year tenancy agreement for an office lease in Kunshan, Jiangsu Province from October 15, 2012 to April 14, 2013 | 'Company entered into a one year tenancy agreement for an office lease in Kunshan, Jiangsu Province from October 15, 2012 to April 14, 2013 | ' | ' | ' | ' | ' | 'Company entered into a tenancy agreement for the lease of warehouse premises in Xian for a period of three years from July 20, 2011 to July 19, 2014 | 'Company entered into a tenancy agreement for the lease of warehouse premises in Xian for a period of three years from July 20, 2011 to July 19, 2014 | 'subject to a 10% increase every two years starting July 20, 2013 | 'subject to a 10% increase every two years starting July 20, 2013 |
Lease Expiration Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17-Apr-17 | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-14 | 31-Dec-14 | ' | ' | ' | ' | 1-Aug-17 | 14-Apr-15 | 14-Apr-14 | 14-Apr-13 | 14-Apr-13 | ' | ' | ' | ' | 19-Jul-14 | ' | ' | ' | ' |
Operating Leases, Rent Expense | ' | ' | $13,245 | $12,905 | $18,921 | $15,271 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,764 | 54,000 | ' | ' | ' | ' | ' | ' | $22,780 | 140,360 | $23,371 | 144,000 | $29,214 | 180,000 | ' | ' | ' | $1,689 | 10,405 | $3,820 | 23,536 | $3,820 | 23,536 | ' | $38,141 | 235,000 | $41,955 | 258,500 |
Clinical Research Stage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 324,600 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME BEFORE PROVISION FOR INCOME TAXES | 5,269,008 | ' | ' | ' | ' | ' | 568,050 | 3,500,000 | 843,960 | 5,200,000 | ' | ' | 243,450 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 486,900 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount expected to be incurred | 779,040 | ' | ' | ' | ' | ' | 81,150 | ' | 129,840 | ' | 973,800 | 6,000,000 | 81,150 | ' | 324,600 | 2,000,000 | 1,665,948 | 10,264,620 | 649,200 | 4,000,000 | ' | ' | ' | 714,120 | 4,400,000 | ' | ' | 568,050 | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Obligation Capital | ' | $12,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGEMENT_INFORMATION_Details
SEGEMENT INFORMATION (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Revenues | ' | ' |
Total Revenues | $6,832,588 | $5,530,741 |
Cost of Revenues | ' | ' |
Total Cost of Revenues | 4,009,403 | 2,930,886 |
Gross Profit | 2,823,185 | 2,599,855 |
Veterinary Medications [Member] | ' | ' |
Revenues | ' | ' |
Total Revenues | 4,844,968 | 3,446,717 |
Cost of Revenues | ' | ' |
Total Cost of Revenues | 3,033,027 | 2,105,516 |
Micro-organism [Member] | ' | ' |
Revenues | ' | ' |
Total Revenues | 1,521,165 | 1,667,182 |
Cost of Revenues | ' | ' |
Total Cost of Revenues | 683,784 | 587,417 |
Feed Additives [Member] | ' | ' |
Revenues | ' | ' |
Total Revenues | 330,537 | 286,288 |
Cost of Revenues | ' | ' |
Total Cost of Revenues | 220,148 | 214,637 |
Vaccines [Member] | ' | ' |
Revenues | ' | ' |
Total Revenues | 135,918 | 130,554 |
Cost of Revenues | ' | ' |
Total Cost of Revenues | $72,444 | $23,316 |