China Pharma (CPHI) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 10, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	CHINA PHARMA HOLDINGS, INC.
Entity Central Index Key	1,106,644
Entity Trading Symbol	CPHI
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		43,579,557

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 1,124,439	$ 2,665,802
Restricted cash	1,380,509	1,088,879
Bankers acceptance notes	22,920
Trade accounts receivable, less allowance for doubtful accounts of $17,641,435 and $15,664,496, respectively	2,908,517	3,999,809
Other receivables, less allowance for doubtful accounts of $55,795 and $71,548, respectively	177,002	224,373
Advances to suppliers	2,387,356	2,003,792
Inventory	6,828,532	7,310,939
Prepaid expenses	168,115	226,357
Total Current Assets	14,997,390	17,519,951
Advances for purchases of intangible assets	35,414,977	35,498,059
Property, plant and equipment, net	24,153,087	24,967,448
Intangible assets, net	429,052	534,682
TOTAL ASSETS	74,994,506	78,520,140
Current Liabilities:
Trade accounts payable	1,890,927	3,060,374
Accrued expenses	321,005	139,830
Other payables	2,560,631	2,502,694
Advances from customers	585,041	811,232
Other payables - related parties	1,354,567	1,354,567
Current portion of construction loan facility	2,292,001	1,440,154
Banker's acceptance notes payable	1,380,509	1,088,879
Total Current Liabilities	10,384,681	10,397,730
Non-current Liabilities:
Construction loan facility	6,876,003	8,640,927
Deferred tax liability	703,044	572,349
Total Liabilities	17,963,728	19,611,006
Stockholders' Equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding
Common stock, $0.001 par value; 95,000,000 shares authorized; 43,579,557 shares and 43,579,557 shares outstanding, respectively	43,580	43,580
Additional paid-in capital	23,590,204	23,590,204
Retained earnings	19,307,138	24,757,374
Accumulated other comprehensive income	14,089,856	10,517,976
Total Stockholders' Equity	57,030,778	58,909,134
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 74,994,506	$ 78,520,140

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Condensed Consolidated Balance Sheets [Abstract]
Trade accounts receivable, less allowance for doubtful accounts	$ 17,641,435	$ 15,664,496
Other receivables, less allowance for doubtful accounts	$ 55,795	$ 71,548
Preferred stock, parvalue	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	95,000,000	95,000,000
Common stock, shares issued	43,579,557	43,579,557
Common stock, shares outstanding	43,579,557	43,579,557

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) [Abstract]
Revenue	$ 3,162,222	$ 3,125,596	$ 9,364,605	$ 10,308,320
Cost of revenue	2,740,683	2,775,628	7,576,856	8,835,436
Gross profit	421,539	349,968	1,787,749	1,472,884
Operating expenses:
Selling expenses	686,825	927,187	2,207,896	2,753,388
General and administrative expenses	348,963	294,367	1,377,640	1,394,250
Research and development expenses	27,543	99,095	75,053	289,189
Bad debt expense	229,466	(69,899)	954,518	1,005,949
Impairment of long term assets	1,184,103	644,696	2,162,083	1,467,235
Total operating expenses	2,476,900	1,895,446	6,777,190	6,910,011
Subsidy income		(2,325)		346,347
Loss from operations	(2,055,361)	(1,547,803)	(4,989,441)	(5,090,780)
Other income (expense):
Interest income	21,947	32,434	43,296	99,149
Interest expense	(130,816)	(213,740)	(411,985)	(699,932)
Net other expense	(108,869)	(181,306)	(368,689)	(600,783)
Loss before income taxes	(2,164,230)	(1,729,109)	(5,358,130)	(5,691,563)
Income tax expense	(31,198)	(20,800)	(92,106)	(65,044)
Net loss	(2,195,428)	(1,749,909)	(5,450,236)	(5,756,607)
Other comprehensive income (loss) - foreign currency translation adjustment	2,083,398	(275,928)	3,571,880	(1,949,137)
Comprehensive loss	$ (112,030)	$ (2,025,837)	$ (1,878,356)	$ (7,705,744)
Loss per share:
Basic and Diluted	$ (0.05)	$ (0.04)	$ (0.13)	$ (0.13)
Weighted average shares outstanding	43,579,557	43,579,557	43,579,557	43,579,557

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows from Operating Activities:
Net loss	$ (5,450,236)	$ (5,756,607)
Depreciation and amortization	2,447,866	2,583,066
Bad debt expense	954,518	1,005,949
Deferred income taxes	92,106	65,044
Impairment of long-term assets	2,162,083	1,467,235
Changes in assets and liabilities:
Trade accounts and other receivables	21,325	(709,257)
Advances to suppliers	(251,306)	(150,606)
Inventory	1,237,573	1,627,641
Trade accounts payable	(1,303,944)	739,551
Accrued taxes payable	1,719	(74,080)
Other payables and accrued expenses	188,557	119,085
Advances from customers	(265,092)	432,904
Prepaid expenses	69,284	71,790
Net Cash (Used in) Provided by Operating Activities	(95,547)	1,421,715
Cash Flows from Investing Activities:
Purchases of property, plant and equipment	(67,324)	(86,350)
Net Cash Used in Investing Activities	(67,324)	(86,350)
Cash Flows from Financing Activities:
Payments of construction term loan	(1,469,349)	(1,519,932)
Payments of short term debt		(2,279,899)
Net Cash Used in Financing Activities	(1,469,349)	(3,799,831)
Effect of Exchange Rate Changes on Cash	90,857	(134,255)
Net (Decrease) Increase in Cash and Cash Equivalents	(1,541,363)	(2,598,721)
Cash and Cash Equivalents at Beginning of Period	2,665,802	6,248,760
Cash and Cash Equivalents at End of Period	1,124,439	3,650,039
Supplemental Cash Flow Information:
Cash paid for income taxes
Cash paid for interest	410,509	689,773
Supplemental Noncash Investing and Financing Activities:
Accounts receivable collected with banker's acceptance notes	366,889	803,655
Inventory purchased with banker's acceptance notes	344,848	781,814
Issuance of banker's acceptance notes	$ 126,652	$ 1,490,154

Organization and Significant Ac

Organization and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Organization and Significant Accounting Policies [Abstract]
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations – On December 31, 2012, China Pharma Holdings, Inc. consummated a reincorporation merger for the purpose of changing its state of incorporation from Delaware to Nevada pursuant to the terms and conditions of an Agreement and Plan of Merger dated December 27, 2012. The reincorporation merger was approved by stockholders holding the majority of the Company’s outstanding shares of common stock on December 21, 2012. The Foreign Investment Industrial Catalogue Helpson manufactures and markets generic and branded pharmaceutical products as well as biochemical products primarily to hospitals and private retailers located throughout the PRC. The Company believes Helpson’s business is not subject to any ownership restrictions prescribed under the Catalogue. Onny acquired 100% of the ownership in Helpson on May 25, 2005 by entering into an Equity Transfer Agreement with Helpson’s three former shareholders. The transaction was approved by the Commercial Bureau of Hainan Province on June 12, 2005 and Helpson received the Certificate of Approval for Establishing of Enterprises with Foreign Investment in the PRC on the same day and its business license evidencing its WFOE (Wholly Foreign Owned Enterprise) status on June 21, 2005. The Company has acquired and continues to acquire well-accepted medical formulas to add to its diverse portfolio of Western and Chinese medicines. Consolidation and Basis of Presentation Helpson’s functional currency is the Chinese Renminbi. Helpson’s revenue and expenses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating Helpson’s financial statements are included in accumulated other comprehensive income, which is a component of stockholders’ equity. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity that is party to the transaction are included in the results of operations. Accounting Estimates Cash and Cash Equivalents Restricted Cash Trade Accounts Receivable and Allowance for Doubtful Accounts – Trade accounts receivable that have been fully allowed for and determined to be uncollectible are charged against the allowance in the period the determination is made. The Company charged off uncollectable trade accounts receivable balances in the amount of $0 against the allowance for both the nine months ended September 30, 2017 and 2016, respectively. It is common practice in the pharmaceutical industry in the PRC for receivables to extend beyond one year. Customer balances outstanding for more than one year are allowed for at a greater rate when calculating the allowance for doubtful accounts. Advances to Suppliers and Advances from Customers Inventories – Valuation of Long-Lived Assets Property, Plant and Equipment Revenue Recognition Cost of Revenues Research and Development Basic and Diluted Loss per Common Share Credit Risk The Company has its cash in bank deposits primarily at state owned banks located in the PRC. Historically, deposits in PRC banks have been secured due to the state policy of protecting depositors’ interests. The PRC promulgated a new Bankruptcy Law in August 2006, effective June 1, 2007, which contains provisions for the implementation of measures for the bankruptcy of PRC banks. In the event that bankruptcy laws are enacted for banks in the PRC, the Company’s deposits may be at a higher risk of loss. Interest Rate Risk Reclassification Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” The standard allows for two transition methods - retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial adoption. The Company has not yet determined its method of transition and is evaluating the impact that this guidance will have on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments – Credit Losses (Topic 326) In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”) From time to time, the FASB or other standards setting bodies issue new accounting pronouncements. Updates to the FASB ASCs are communicated through issuance of ASUs. Unless otherwise discussed, the Company believes that the recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on its condensed consolidated financial statements upon adoption.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2017
Inventory [Abstract]
Inventory	NOTE 2 – INVENTORY Inventory consisted of the following: September 30, December 31, 2017 2016 Raw materials $ 10,873,118 $ 11,562,388 Work in process 316,510 360,550 Finished goods 1,838,017 1,530,641 13,027,645 13,453,579 Obsolescence reserve (6,199,113 ) (6,142,640 ) Total Inventory $ 6,828,532 $ 7,310,939

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	NOTE 3 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: September 30, December 31, 2017 2016 Permit of land use $ 430,388 $ 405,645 Building 9,994,281 9,419,700 Plant, machinery and equipment 27,814,173 26,151,029 Motor vehicle 328,673 309,777 Office equipment 195,886 182,718 Total 38,763,401 36,468,869 Less: accumulated depreciation (14,610,314 ) (11,501,421 ) Property, Plant and Equipment, net $ 24,153,087 $ 24,967,448 Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: Asset Life - years Permit of land use 40 - 70 Building 20 - 49 Plant, machinery and equipment 5 - 10 Motor vehicle 5 - 10 Office equipment 3-5 Depreciation relating to office equipment was included in general and administrative expenses, while all other depreciation was included in cost of revenue. For the three months ended June 30, 2017 and 2016, depreciation expense was $779,856 and $789,150, respectively. For the six months ended June 30, 2017 and 2016, depreciation expense was $2,314,928 and $ 2,383,457, respectively.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2017
Intangible Assets [Abstract]
INTANGIBLE ASSETS	NOTE 4 - INTANGIBLE ASSETS Intangible assets represent the cost of medical formulas approved for production by the China Food and Drug Administration (“CFDA”). The Company did not obtain CFDA production approval for any medical formula during the six months ended June 30, 2017 and 2016 and no costs were reclassified from advances to intangible assets during the six months ended June 30, 2017 and 2016, respectively. Approved medical formulas are amortized from the date CFDA approval is obtained over their individually identifiable estimated useful life, which range from ten to thirteen years. It is at least reasonably possible that a change in the estimated useful lives of the medical formulas could occur in the near term due to changes in the demand for the drugs and medicines produced from these medical formulas. Amortization expense relating to intangible assets was $39,630 and $65,643, respectively for the three months ended September 30, 2017 and 2016 and $132,938 and $199,609 for the nine months ended September 30, 2016 and 2015, respectively, and was included in the general and administrative expenses. Medical formulas typically do not have a residual value at the end of their amortization period. The Company evaluates each approved medical formula for impairment at the date of CFDA approval, when indications of impairment are present and at the date of each financial statement. The Company’s evaluation is based on an estimated undiscounted net cash flow model, considering currently available market data for the related drug and the Company’s estimated market share. If the carrying value of the medical formula exceeds the estimated future net cash flows, an impairment loss is recognized for the excess of the carrying value over the fair value of the medical formula, which is determined by the estimated discounted future net cash flows. No impairment loss was recognized during the nine months ended September 30, 2017 and 2016. Intangible assets consisted solely of CFDA approved medical formulas as follows: September 30, December 31, 2017 2016 Gross carrying amount $ 5,158,323 $ 4,861,766 Accumulated amortization (4,729,271 ) (4,327,084 ) Net carrying amount $ 429,052 $ 534,682

Advances for Purchases of Intan

Advances for Purchases of Intangible Assets	9 Months Ended
	Sep. 30, 2017
Advances for Purchases of Intangible Assets [Abstract]
ADVANCES FOR PURCHASES OF INTANGIBLE ASSETS	NOTE 5 – ADVANCES FOR PURCHASES OF INTANGIBLE ASSETS In order to expand the number of medicines the Company manufactured and marketed, it has entered into contracts with independent laboratories and others for the purchase of medical formulas. Although CFDA approval had not been obtained for these medical formulas at the dates of the respective contracts, the objective of the contracts is for the Company to purchase CFDA-approved medical formulas once the CFDA approval process is completed. The Company received the titles to two patents that relate to medical formulas currently in the CFDA approval process for the year end December 31, 2013. These patents have not expired. Prior to entering into contracts with the Company, laboratories typically are required to complete all research and development to determine the content of the medical formula and the method to produce the generic medicine. The application to the CFDA for production approval must be made by the production facility that will produce the related product. As a result, a contract typically provides that the Company buys the medical formula from the laboratory and the laboratory is required to assist the Company in applying for and obtaining the production approval from the CFDA. A typical CFDA approval process for the production of a generic medical product involves a number of steps that generally require three to five years to complete. If the medical formula is purchased at the point when the generic medical product receives the CFDA’s approval for a clinical study, which is very typical for the Company, the clinical study that follows will usually take from one and a half to three years to complete. After completing the clinical study, the results are submitted to the CFDA and a production approval application is filed with the CFDA. In most cases, it will take between eight to eighteen months to prepare and submit the production approval application and obtain CFDA approval. Upon approving the generic medical product, the CFDA issues a production certificate and the Company can commence the production and sales of the generic medical product. As a result of this process, CFDA approval is expected to be received in approximately two to five years from the date the Company signs the medical formula contracts. Under the terms of the contracts, the laboratories are required to assist the Company in obtaining production approval for the medical formulas from the CFDA. Management monitors the status of each medical formula on a regular basis in order to assess whether the laboratories are performing adequately under the contracts. If a medical product is not approved by the CFDA, as evidenced by their issuance of a denial letter, or if the laboratory breaches the contract, the laboratory is required under the contract to provide a refund to the Company of the full amount of the payments made to the laboratory for that formula, or the Company can require the application of those payments to another medical formula with the same laboratory. As a result of the refund right, the Company is ultimately purchasing an approved medical product. Accordingly, payments made prior to the issuance of production approval by the CFDA are recorded as advances for purchases of intangible assets. During the nine months ended September 30, 2017, the Company reviewed the contracts relating to advances made for purchases of intangible assets with independent laboratories and determined that the advances made by the Company for three formulas to two of the independent laboratories were impaired. In the same period in 2016, the company recognized an impairment loss for the advances made to three laboratories for one formula. The Company recognized impairment losses in the amount of $1,184,103 and 644,696 for the three months ended September 30, 2017 and 2016, respectively. Impairment loss was $2,162,083 and $1,467,235 for the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, the Company was obligated to pay laboratories and others approximately $2,800,000 upon the completion of various phases of contracts to obtain CFDA production approval of medical formulas.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 6 – RELATED PARTY TRANSACTIONS A member of the Company’s board of directors had previously advanced the Company an aggregate amount of $1,354,567 as of September 30, 2017 and December 31, 2016 which are recorded as Other payables – related parties on the accompanying consolidated balance sheets. The advances bear interest at a rate of 1.0% per year. Total interest expense for the three months ended September 30, 2017 and 2016 was $3,386 and $3,386. Total interest expense for the nine months ended September 30, 2017 and 2016 was $10,159 and $10,159, respectively.

Banker's Acceptance Notes Payab

Banker's Acceptance Notes Payable	9 Months Ended
	Sep. 30, 2017
Banker's Acceptance Notes Payable [Abstract]
BANKER'S ACCEPTANCE NOTES PAYABLE	NOTE 7 – BANKER’S ACCEPTANCE NOTES PAYABLE In April 2016, the Company entered into a Banker’s Acceptance Note Agreement with a bank. Pursuant to the terms of the agreement, the Company can issue banker’s acceptance notes to any third party as payment of amounts owing to that third party. The Company is required to deposit with the bank an amount equal to the amounts represented by the banker’s acceptance notes issued to the third parties. The amount of these deposited balances is shown as “Restricted cash” on the accompanying balance sheets as of September 30, 2017 and December 31, 2016. The maximum amount that the Company can issue under this agreement is limited to the lesser of RMB30,000,000 (approximately $4.5 million) or the amount of cash available to deposit against the banker’s acceptance notes. In addition, the agreement calls for the payment of fees equal to 0.05% of the note amount to the bank. At September 30, 2017 and December 31 2016, the Company had outstanding banker’s acceptance notes in the amount of $1,380,509 and $1,088,879, respectively.

Construction Loan Facility

Construction Loan Facility	9 Months Ended
	Sep. 30, 2017
Construction Loan Facility [Abstract]
CONSTRUCTION LOAN FACILITY	NOTE 8 – CONSTRUCTION LOAN FACILITY The Company obtained a construction loan facility in the amount of RMB 80,000,000 (approximately $13 million) from a construction loan facility dated June 21, 2013. The loan facility is for an eight-year term, which commenced on July 11, 2013, the initial draw-down date. The proceeds of the loan were used for and are collateralized by the construction of the Company’s new production facility and the included production line equipment and machinery. At June 30, 2017, the loan bears weighted interest at 5.73%, based upon 110% of the PRC government’s eight-year term rate effective on the actual draw-down date, subject to annual adjustments based on 110% of the floating rate for the same type of loan on the anniversary from the draw-down date and its subsequent anniversary dates. On July 10, 2015 the interest rate was adjusted to 5.94% and on July 10, 2016 the rate was further adjusted to 5.39%. The loan required interest only payments for the first two years. Beginning July 11, 2015, the balance of the principal is due in at least two (2) annual installments with the first annual payment being due within the six-month period after July 10, 2015 and the second annual payment being due July 10, 2016 and each following year over the next five years through July 11, 2022 on the identical terms as described above for 2015. During the nine months ended September 30, 2017, the Company made principal payments in the amount of approximately $1,469,000 (RMB10,000,000). As of September 30, 2017, the Company had no additional amounts available to it under this facility. Principal payments required for the next five years as of September 30, 2017 are as follows: Twelve Months Ending September 30, Amount 2018 2,292,001 2019 2,292,001 2020 2,292,001 2021 2,292,001 $ 9,168,004 Fair Value of Construction Loan Facility

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Taxes [Abstract]
INCOME TAXES	NOTE 9 - INCOME TAXES Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in income in the period that includes the enactment date. Undistributed earnings of Helpson, the Company’s foreign subsidiary, since its acquisition, amounted to approximately $26.3 million as of September 30, 2017. Those earnings, as well as the investment in Helpson of approximately $23.3 million, are considered to be indefinitely reinvested and, accordingly, no U.S. federal or state income taxes have been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to U.S. federal and state income taxes (net of an adjustment for foreign tax credits) and withholding taxes payable to the PRC. Determination of the amount of unrecognized deferred U.S. income tax liability is not practical because of the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits may be available to reduce a portion of the U.S. tax liability. Liabilities are established for uncertain tax positions expected to be taken in income tax return when such positions are judged to meet the “more-likely-than-not” threshold based on the technical merits of the positions. Estimated interest and penalties related to uncertain tax positions are included as a component of other expenses. Through September 30, 2017, the Company has not identified any uncertain tax positions that it has taken. U.S. income tax returns for the years ended December 31, 2013 through December 31, 2016 and the Chinese income tax return for the year ended December 31, 2016 are open for possible examination. On March 16, 2007, the National People’s Congress of China passed the Enterprise Income Tax Law (EIT Law) and on December 6, 2007, the State Council of China issued the Implementation Regulations for the EIT Law which took effect on January 1, 2008. The EIT Law and Implementation Regulations Rules impose a unified EIT of 25% on all domestic-invested enterprises and Foreign Invested Entities, or FIEs, unless they qualify under certain limited exceptions. The Company is located in a special region, which had a 15% corporate income tax rate before the new EIT Law. The new EIT Law abolished the preferential corporate income tax rate in the special region. The Company transitioned to the new 25% tax rate over a five year period which began on January 1, 2008. During 2010, the Company applied for and received a favorable tax rate of 15% for fiscal 2011 through 2013 due to its status in the PRC as a high technology enterprise. In 2013, the Company again applied for and received the same favorable tax rate for 2014 to 2016. The recent net losses put the Company in an unfavorable position for the potential renewal of “National High-Tech Enterprise” status for 2017. After evaluating the feasibility of the renewal in 2016, the Company has decided not to renew this status. Under the current tax law in the PRC, the Company is and will be subject to the following enterprise income tax rates: Year Enterprise Income Tax Rate 2015 15% 2016 15% Thereafter 25% The provision for income taxes consisted of the following: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Current $ - $ - $ - $ - Deferred 31,198 20,800 92,106 65,044 Total income tax expense $ 31,198 $ 20,800 $ 92,106 $ 65,044 As of September 30, 2017, the Company had net operating loss carryforwards for PRC tax purposes of approximately $56.7 million which are available to offset any future taxable income through 2022. These carryforwards begin to expire in 2018. The Company also has net operating losses for United States federal income tax purposes of approximately $4.8 million which are available to offset future taxable income, if any, through 2037. In assessing the realizability of deferred tax assets, Management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible or tax loss carry forwards are utilized. Management considers projected future taxable income and tax planning strategies in making this assessment. Based upon an assessment of the level of historical taxable income and projections for future taxable income over the periods on which the deferred tax assets are deductible or can be utilized, Management believes it is not likely for the Company to realize all benefits of the deferred tax assets as of September 30, 2017 and December 31, 2016. Therefore, the Company provided for a valuation allowance against its deferred tax assets of $24,267,042 and $21,452,802 as of September 30, 2017 and December 31, 2016, respectively. The Company also incurred various other taxes, comprised primarily of business taxes, value-added taxes, urban construction taxes, education surcharges and others. Any unpaid amounts are reflected on the balance sheets as accrued taxes payable.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Fair Value Measurements [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 10 – FAIR VALUE MEASUREMENTS Fair value is defined 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. To measure fair value, a hierarchy has been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data. Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The Company uses fair value to measure the value of the banker’s acceptance notes it holds. The banker’s acceptance notes are recorded at cost which approximates fair value. As of December 31, 2016, the Company had no banker’s acceptance notes to be recorded at fair value. The Company held the following assets and liabilities recorded at fair value as of September 30, 2017: Fair Value Measurements at Reporting Date Using Description September 30, 2017 Level 1 Level 2 Level 3 Banker’s acceptances $ 22,920 $ - $ 22,920 $ - Total $ 22,920 $ - $ 22,920 $ -

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Stockholders' Equity [Abstract]
STOCKHOLDERS' EQUITY	NOTE 11 - STOCKHOLDERS’ EQUITY The Company is authorized to issue 95,000,000 shares of common stock, $0.001 par value, and 5,000,000 shares of preferred stock, $0.001 par value. The preferred stock may be issued in series with such designations, preferences, stated values, rights, qualifications or limitations as determined solely by the Company’s Board. Employee Stock Options 2010 Incentive Plan On November 12, 2010, the Company’s Board of Directors adopted the Company’s 2010 Incentive Plan (the “Plan”), which was then approved by stockholders on December 22, 2010. The Plan gave the Company the ability to grant stock options, restricted stock, stock appreciation rights and performance units to its employees, directors and consultants, or those who will become employees, directors and consultants of the Company and/or its subsidiaries. The Plan currently allows for equity awards of up to 4,000,000 shares of common stock. Through September 30, 2017, there were 175,000 shares of restricted stock granted and outstanding under the Plan. No options were outstanding as of September 30, 2017 under the Plan. There were no securities issued from the Plan during each of the nine months ended September 30, 2017 and 2016. The Company recognized no compensation expense related to the awards of common shares and the grants and modifications of stock options during each of the nine months ended September 30, 2017 and 2016. The fair value of each option award is estimated on the date of grant using the Black-Scholes Option Pricing Model. Expected volatility is based on the historical volatility of the Company’s common stock prices. The Company uses historical data to estimate employee termination rates. The expected term of options granted is determined by the simplified method, which is one-half of the original contractual term. The simplified method is used due to the lack of historical share option exercise data to provide a reasonable basis upon which to estimate expected term. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. As of September 30, 2017, there was no remaining unrecognized compensation expense related to stock options or restricted stock grants.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12 – COMMITMENTS AND CONTINGENCIES Economic environment In addition, all of the Company's revenue is denominated in the PRC's currency of Renminbi (RMB), which must be converted into other currencies before remittance out of the PRC. Both the conversion of RMB into foreign currencies and the remittance of foreign currencies abroad require approval of the PRC government.

Concentrations

Concentrations	9 Months Ended
	Sep. 30, 2017
Concentrations [Abstract]
CONCENTRATIONS	NOTE 13 – CONCENTRATIONS For the nine months ended September 30, 2017, no customer accounted for more than 10% of sales and two customers accounted for 47% and 14% of accounts receivable, respectively. Four suppliers accounted for 21.1%, 17.4%, 15.3% and 14.7% of raw material purchases. For the nine months ended September 30, 2016, no customer accounted for more than 10% of sales and one supplier accounted for 21.7% of raw material purchases. At September 30, 2016, three customers accounted for 28.3%, 11.3% and 11% of accounts receivable, respectively.

Organization and Significant 19

Organization and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Organization and Significant Accounting Policies [Abstract]
Organization and Nature of Operations	Organization and Nature of Operations – On December 31, 2012, China Pharma Holdings, Inc. consummated a reincorporation merger for the purpose of changing its state of incorporation from Delaware to Nevada pursuant to the terms and conditions of an Agreement and Plan of Merger dated December 27, 2012. The reincorporation merger was approved by stockholders holding the majority of the Company’s outstanding shares of common stock on December 21, 2012. The Foreign Investment Industrial Catalogue Helpson manufactures and markets generic and branded pharmaceutical products as well as biochemical products primarily to hospitals and private retailers located throughout the PRC. The Company believes Helpson’s business is not subject to any ownership restrictions prescribed under the Catalogue. Onny acquired 100% of the ownership in Helpson on May 25, 2005 by entering into an Equity Transfer Agreement with Helpson’s three former shareholders. The transaction was approved by the Commercial Bureau of Hainan Province on June 12, 2005 and Helpson received the Certificate of Approval for Establishing of Enterprises with Foreign Investment in the PRC on the same day and its business license evidencing its WFOE (Wholly Foreign Owned Enterprise) status on June 21, 2005. The Company has acquired and continues to acquire well-accepted medical formulas to add to its diverse portfolio of Western and Chinese medicines.
Consolidation and Basis of Presentation	Consolidation and Basis of Presentation Helpson’s functional currency is the Chinese Renminbi. Helpson’s revenue and expenses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating Helpson’s financial statements are included in accumulated other comprehensive income, which is a component of stockholders’ equity. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity that is party to the transaction are included in the results of operations.
Accounting Estimates	Accounting Estimates
Cash and Cash Equivalents	Cash and Cash Equivalents
Restricted Cash	Restricted Cash
Trade Accounts Receivable and Allowance for Doubtful Accounts	Trade Accounts Receivable and Allowance for Doubtful Accounts – Trade accounts receivable that have been fully allowed for and determined to be uncollectible are charged against the allowance in the period the determination is made. The Company charged off uncollectable trade accounts receivable balances in the amount of $0 against the allowance for both the nine months ended September 30, 2017 and 2016, respectively. It is common practice in the pharmaceutical industry in the PRC for receivables to extend beyond one year. Customer balances outstanding for more than one year are allowed for at a greater rate when calculating the allowance for doubtful accounts.
Advances to Suppliers and Advances from Customers	Advances to Suppliers and Advances from Customers
Inventories	Inventories –
Valuation of Long-Lived Assets	Valuation of Long-Lived Assets
Property, Plant and Equipment	Property, Plant and Equipment
Revenue Recognition	Revenue Recognition
Cost of Revenues	Cost of Revenues
Research and Development	Research and Development
Basic and Diluted Loss per Common Share	Basic and Diluted Loss per Common Share
Credit Risk	Credit Risk The Company has its cash in bank deposits primarily at state owned banks located in the PRC. Historically, deposits in PRC banks have been secured due to the state policy of protecting depositors’ interests. The PRC promulgated a new Bankruptcy Law in August 2006, effective June 1, 2007, which contains provisions for the implementation of measures for the bankruptcy of PRC banks. In the event that bankruptcy laws are enacted for banks in the PRC, the Company’s deposits may be at a higher risk of loss.
Interest Rate Risk	Interest Rate Risk
Reclassification	Reclassification
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” The standard allows for two transition methods - retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial adoption. The Company has not yet determined its method of transition and is evaluating the impact that this guidance will have on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments – Credit Losses (Topic 326) In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”) From time to time, the FASB or other standards setting bodies issue new accounting pronouncements. Updates to the FASB ASCs are communicated through issuance of ASUs. Unless otherwise discussed, the Company believes that the recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on its condensed consolidated financial statements upon adoption.

Inventory(Table)

Inventory(Table)	9 Months Ended
	Sep. 30, 2017
Inventory [Abstract]
Schedule of inventory	September 30, December 31, 2017 2016 Raw materials $ 10,873,118 $ 11,562,388 Work in process 316,510 360,550 Finished goods 1,838,017 1,530,641 13,027,645 13,453,579 Obsolescence reserve (6,199,113 ) (6,142,640 ) Total Inventory $ 6,828,532 $ 7,310,939

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Schedule of Property, plant and equipment	September 30, December 31, 2017 2016 Permit of land use $ 430,388 $ 405,645 Building 9,994,281 9,419,700 Plant, machinery and equipment 27,814,173 26,151,029 Motor vehicle 328,673 309,777 Office equipment 195,886 182,718 Total 38,763,401 36,468,869 Less: accumulated depreciation (14,610,314 ) (11,501,421 ) Property, Plant and Equipment, net $ 24,153,087 $ 24,967,448
Scedule of depreciation is computed on straight-line basis over estimated useful lives of assets	Asset Life - years Permit of land use 40 - 70 Building 20 - 49 Plant, machinery and equipment 5 - 10 Motor vehicle 5 - 10 Office equipment 3-5

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Intangible Assets [Abstract]
Schedule of intangible assets	September 30, December 31, 2017 2016 Gross carrying amount $ 5,158,323 $ 4,861,766 Accumulated amortization (4,729,271 ) (4,327,084 ) Net carrying amount $ 429,052 $ 534,682

Construction Loan Facility (Tab

Construction Loan Facility (Tables)	9 Months Ended
	Sep. 30, 2017
Construction Loan Facility [Abstract]
Schedule of principal payments	Twelve Months Ending September 30, Amount 2018 2,292,001 2019 2,292,001 2020 2,292,001 2021 2,292,001 $ 9,168,004

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2017
Income Taxes [Abstract]
Schedule of enterprise income tax rates	Year Enterprise Income Tax Rate 2015 15% 2016 15% Thereafter 25%
Schedule of provision for income taxes	Three Months Ended Nine Months Ended 2017 2016 2017 2016 Current $ - $ - $ - $ - Deferred 31,198 20,800 92,106 65,044 Total income tax expense $ 31,198 $ 20,800 $ 92,106 $ 65,044

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Measurements [Abstract]
Schedule of assets and liabilities recorded at fair value	Fair Value Measurements at Reporting Date Using Description September 30, 2017 Level 1 Level 2 Level 3 Banker’s acceptances $ 22,920 $ - $ 22,920 $ - Total $ 22,920 $ - $ 22,920 $ -

Organization and Significant 26

Organization and Significant Accounting Policies (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Organization and Significant Accounting Policies (Textual)
Bad debt expense	$ 229,466	$ (69,899)	$ 954,518	$ 1,005,949
Trade accounts receivable			0	0
Impairment of long term assets	$ 1,184,103	$ 644,696	$ 2,162,083	$ 1,467,235
Nevada corporation [Member]
Organization and Significant Accounting Policies (Textual)
Equity method investment, ownership percentage	100.00%		100.00%
British Virgin Islands corporation [Member]
Organization and Significant Accounting Policies (Textual)
Equity method investment, ownership percentage	100.00%		100.00%

Inventory (Details)

Inventory (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Inventory [Abstract]
Raw materials	$ 10,873,118	$ 11,562,388
Work in process	316,510	360,550
Finished goods	1,838,017	1,530,641
Inventory, Gross	13,027,645	13,453,579
Obsolescence reserve	(6,199,113)	(6,142,640)
Total Inventory	$ 6,828,532	$ 7,310,939

Property, Plant and Equipment28

Property, Plant and Equipment (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Permit of land use	$ 430,388	$ 405,645
Building	9,994,281	9,419,700
Plant, machinery and equipment	27,814,173	26,151,029
Motor vehicle	328,673	309,777
Office equipment	195,886	182,718
Total	38,763,401	36,468,869
Less: accumulated depreciation	(14,610,314)	(11,501,421)
Property, Plant and Equipment, net	$ 24,153,087	$ 24,967,448

Property, Plant and Equipment29

Property, Plant and Equipment (Details 1)	9 Months Ended
	Sep. 30, 2017
Maximum [Member] | Permit of land use [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	70 years
Maximum [Member] | Building [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	49 years
Maximum [Member] | Plant, machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years
Maximum [Member] | Motor vehicle [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years
Maximum [Member] | Office equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Minimum [Member] | Permit of land use [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	40 years
Minimum [Member] | Building [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	20 years
Minimum [Member] | Plant, machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Minimum [Member] | Motor vehicle [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Minimum [Member] | Office equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years

Property, Plant and Equipment30

Property, Plant and Equipment (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment (Textual)
Depreciation expense	$ 779,856	$ 789,150	$ 2,314,928	$ 2,383,457

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Intangible assets consisted solely of CFDA approved medical formulas as follows:
Gross carrying amount	$ 5,158,323	$ 4,861,766
Accumulated amortization	(4,729,271)	(4,327,084)
Net carrying amount	$ 429,052	$ 534,682

Intangible Assets (Details Text

Intangible Assets (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Intangible Assets (Textual)
Amortization expense relating to intangible assets	$ 39,630	$ 65,643	$ 132,938	$ 199,609

Advances for Purchases of Int33

Advances for Purchases of Intangible Assets (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Advances for Purchases of Intangible Assets (Textual)
Impairment of long term assets	$ 1,184,103	$ 644,696	$ 2,162,083	$ 1,467,235
Laboratories and others			$ 2,800,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Related Party Transactions (Textual)
Due to related parties, aggregate amount	$ 1,354,567		$ 1,354,567		$ 1,354,567
Interest rate	1.00%		1.00%
Interest expense, recognized	$ 3,386	$ 3,386	$ 10,159	$ 10,159

Banker's Acceptance Notes Pay35

Banker's Acceptance Notes Payable (Details)	1 Months Ended
	Apr. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2016USD ($)	Apr. 30, 2016CNY (¥)
Banker's Acceptance Notes Payable (Textual)
Maximum amount of agreement	$ 4,500,000			¥ 30,000,000
Agreement payments fees, descriptions	In addition, the agreement calls for the payment of fees equal to 0.05% of the note amount to the bank
Banker's acceptance notes payable outstanding banker's		$ 1,380,509	$ 1,088,879

Construction Loan Facility (Det

Construction Loan Facility (Details)	Sep. 30, 2017USD ($)
Construction Loan Facility [Abstract]
2,018	$ 2,292,001
2,019	2,292,001
2,020	2,292,001
2,021	2,292,001
Total principal payments	$ 9,168,004

Construction Loan Facility (D37

Construction Loan Facility (Details Textual)	9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2017CNY (¥)	Jun. 21, 2013USD ($)	Jun. 21, 2013CNY (¥)
Construction Loan Facility (Textual)
Construction loan amount			$ 13,000,000	¥ 80,000,000
Description of loan interest rates	The loan facility is for an eight-year term, which commenced on July 11, 2013, the initial draw-down date. The proceeds of the loan were used for and are collateralized by the construction of the Company's new production facility and the included production line equipment and machinery. At June 30, 2017, the loan bears weighted interest at 5.73%, based upon 110% of the PRC government's eight-year term rate effective on the actual draw-down date, subject to annual adjustments based on 110% of the floating rate for the same type of loan on the anniversary from the draw-down date and its subsequent anniversary dates. On July 10, 2015 the interest rate was adjusted to 5.94% and on July 10, 2016 the rate was further adjusted to 5.39%. The loan required interest only payments for the first two years. Beginning July 11, 2015, the balance of the principal is due in at least two (2) annual installments with the first annual payment being due within the six-month period after July 10, 2015 and the second annual payment being due July 10, 2016 and each following year over the next five years through July 11, 2022 on the identical terms as described above for 2015.
Principal amount	$ 1,469,000	¥ 10,000,000

Income Taxes (Details)

Income Taxes (Details)	Sep. 30, 2017
Income Taxes [Abstract]
2,015	15.00%
2,016	15.00%
Thereafter	25.00%

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Taxes [Abstract]
Current
Deferred	31,198	20,800	92,106	65,044
Total income tax expense	$ 31,198	$ 20,800	$ 92,106	$ 65,044

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Income Taxes (Textual)
Undistributed earnings foreign subsidiary,acquisition	$ 26,300,000
Reinvested earnings	23,300,000
Net operating loss carryforwards for PRC tax	$ 56,700,000
Description of income tax rates	The Company is located in a special region, which had a 15% corporate income tax rate before the new EIT Law. The new EIT Law abolished the preferential corporate income tax rate in the special region. The Company transitioned to the new 25% tax rate over a five year period which began on January 1, 2008. During 2010, the Company applied for and received a favorable tax rate of 15% for fiscal 2011 through 2013 due to its status in the PRC as a high technology enterprise. In 2013, the Company again applied for and received the same favorable tax rate for 2014 to 2016.
Operating loss, expiration date	Dec. 31, 2022
Net operating losses for United States federal income tax	$ 4,800,000
Valuation allowance for deferred tax assets	$ 24,267,042	$ 21,452,802

Fair Value Measurements (Detail

Fair Value Measurements (Details)	Sep. 30, 2017USD ($)
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Banker's acceptances	$ 22,920
Total	22,920
Fair Value Measurements at Reporting Date Using Level 1 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Banker's acceptances
Total
Fair Value Measurements at Reporting Date Using Level 2 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Banker's acceptances	22,920
Total	22,920
Fair Value Measurements at Reporting Date Using Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Banker's acceptances
Total

Stockholders' Equity (Details)

Stockholders' Equity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Stockholders' Equity (Textual)
Common stock, shares authorized	95,000,000	95,000,000
Common stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, par value	$ 0.001	$ 0.001
2010 Incentive Plan [Member]
Stockholders' Equity (Textual)
Common stock issued for equity awards	4,000,000
Restricted stock granted and outstanding	175,000

Concentrations (Details)

Concentrations (Details)	9 Months Ended
	Sep. 30, 2017CustomerSuppliers	Sep. 30, 2016Customer
Sales [Member]
Concentrations (Textual)
Concentrations risk, percentage	10.00%	10.00%
Number of customers	0	0
Accounts Receivable [Member]
Concentrations (Textual)
Number of customers	2	3
Accounts Receivable [Member] | Customer One [Member]
Concentrations (Textual)
Concentrations risk, percentage	47.00%	28.30%
Accounts Receivable [Member] | Customer Two [Member]
Concentrations (Textual)
Concentrations risk, percentage	14.00%	11.30%
Accounts Receivable [Member] | Customer Three [Member]
Concentrations (Textual)
Concentrations risk, percentage		11.00%
Raw Material Purchases [Member]
Concentrations (Textual)
Number of suppliers | Suppliers	4
Raw Material Purchases [Member] | Customer One [Member]
Concentrations (Textual)
Concentrations risk, percentage	21.10%
Raw Material Purchases [Member] | Customer Two [Member]
Concentrations (Textual)
Concentrations risk, percentage	17.40%
Raw Material Purchases [Member] | Customer Three [Member]
Concentrations (Textual)
Concentrations risk, percentage	15.30%
Raw Material Purchases [Member] | Customer Four [Member]
Concentrations (Textual)
Concentrations risk, percentage	14.70%