Kandi Technologies Reports Third Quarter 2015 Financial Results
-Q3 EV parts sales increased 35.7% year-over-year to $49.0 million
- Q3 operating cash flow reached $11.6 million
- Q3 the JV Company sold 6,004 EV products, a 208% increase year-over-year
-Q3 EV products direct sales increased 367.2% quarter-over-quarter
JINHUA, CHINA-- (November 9, 2015) -Kandi Technologies Group, Inc.(the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the quarter ended September 30, 2015.
Third Quarter 2015 Highlights
Total revenues grew 14.3% to $50.5 million for the third quarter of 2015 from $44.2 million for the same period of 2014;
Electric Vehicle (“EV”) parts sales increased 35.7% to $49.0 million for the third quarter of 2015, compared with $36.1 million in the same period of 2014;
Kandi Electric Vehicles Group Co., Ltd. (the "JV Company"), sold 6,004 EV products, a 208% increase compared with the same period last year. Total EV product sales comprised 3,000 EV products to the Micro Public Transportation (MPT) program and 3,004 EV products through the distribution channel under its direct sales program, with the latter being a significant sequential increase of 367.2% over the 643 EV products sold through the distribution channel under the direct sales program in the second quarter.
GAAP net income for the third quarter of 2015 was $2.3 million, or approximately $0.05 per fully diluted share, compared with $13.5 million, or approximately $0.31 per fully diluted share in the same period of 2014. The decrease was mainly due to changes in stock-based compensation expenses and the fair value of the financial derivatives during the period;
Non-GAAP adjusted net income1, which excludes stock award expenses and changes in the fair value of financial derivatives, was $6.3 million, a 17.7% increase from $5.4 million in the same quarter of 2014. Non-GAAP adjusted earnings per share1was approximately $0.13 per fully diluted share for the third quarter of 2015 compared with $0.12 per fully diluted share for the same quarter of 2014;
______________________________
1Non-GAAP measures, including the Non-GAAP net income and Non-GAAP EPS are defined as the financial measures excluding the change of the fair value of financial derivatives and the effects of the stock award expense. We supply non-GAAP information because we believe it allows our investors to obtain a clearer understanding of our operations. Any non-GAAP measures should not be considered as a substitute for, and should only be read in conjunction with, measures of financial performance prepared in accordance with GAAP.
Working capital surplus was $54.2 million as of September 30, 2015;
Cash, cash equivalents and restricted cash totaled $27.4 million as of September 30, 2015.
“The third quarter performance underscores our tremendous growth in EV parts and EV sales as we became China’s top seller for EV products in September,” commented Mr. Hu Xiaoming, Chairman and Chief Executive Officer of Kandi, “During the third quarter, we obtained the approval for a vehicle purchase tax exemption for Kandi Cyclone (“K17”), while launching a successful promotion in Beijing and Shanghai. The initial market response has been extremely positive, and we believe K17 will become the Company’s key driver for growth over the next year. Meanwhile, China’s central government has extended its continuous support and confidence in developing the new energy vehicle (NEV) industry by releasing additional policies, including reducing traffic controls and purchase quotas on NEVs, encouraging government purchases, and promoting EV car-share programs. With the government’s dedication, we see unprecedented opportunities ahead of us, and we are well-positioned to benefit from the EV adoption in China by leveraging our unique growth engines: the rapid expansion of our Micro Public Transportation program and the burgeoning direct sales program through the distribution channel.”
“We are very pleased to achieve strong financial results in the third quarter of 2015,” added Mr. Wang Cheng, Chief Financial Officer of Kandi, “Both sales and gross margin were in line with our expectations. With positive operating cash flow of $11.6 million, we are fully prepared for the significant growth potential around the corner.”
Third Quarter 2015 Financial Results:
Net Revenues and Gross Profit
| | | 3Q15 | | | 2Q15 | | | 2Q14 | | | Q-o-Q% | | | Y-o-Y% | |
Net Revenues
(US$mln) | $ | 50.53 | | $ | 47.96 | | $ | 44.21 | | | 5.3% | | | 14.3% | |
Gross Profit
(US$mln) | $ | 7.12 | | $ | 6.49 | | $ | 5.51 | | | 9.6% | | | 29.2% | |
| Gross Margin | | 14.1% | | | 13.5% | | | 12.5% | | | - | | | - | |
Net revenues increased 5.3% sequentially from the second quarter of 2015 due to the sales growth of EV products from the JV Company. Gross margin increased 0.6% sequentially as a result of the cost control from battery packing production. Gross margin increased 1.6% year-over-year due to the margin improvement from EV parts, which was mainly contributed by effective cost control and the scaled production. Gross margin growth was partially offset by the sales decrease in off-road vehicles and EV products sales, with the latter being completely transferred to the JV Company this year per the Joint Venture Agreement.
Operating Income (Loss)
| | | 3Q15 | | | 2Q15 | | | 3Q14 | | | Q-o-Q% | | | Y-o-Y% | |
Operating Expenses
(US$mln) | $ | 9.56 | | $ | 4.49 | | $ | 2.90 | | | 112.8% | | | 229.6% | |
Operating Income
(Loss) (US$mln) | | ($2.44 | ) | $ | 2.00 | | $ | 2.61 | | | -222.1% | | | -193.6% | |
| Operating Margin | | -4.8% | | | 4.2% | | | 5.9% | | | - | | | - | |
Total operating expenses were $9.6 million, compared with $4.5 million in the second quarter of 2015, and $2.9 million in the third quarter of 2014. The significant increase in total operating expenses was mainly due to the $7.0 million expenses for stock award compensation and $0.5 million in legal expenses in the third quarter of 2015.
GAAP Net Income
| | | 3Q15 | | | 2Q15 | | | 3Q14 | | | Q-o-Q% | | | Y-o-Y% | |
Net Income
(US$mln) | $ | 2.34 | | $ | 5.43 | | $ | 13.53 | | | -56.8% | | | -82.7% | |
| Earnings per Weighted Average Common Share | $ | 0.05 | | $ | 0.12 | | $ | 0.31 | | | - | | | - | |
| Earnings per Weighted Average Diluted Share | $ | 0.05 | | $ | 0.12 | | $ | 0.31 | | | - | | | - | |
Non-GAAP Net Income
| | | 3Q15 | | | 2Q15 | | | 3Q14 | | | Q-o-Q% | | | Y-o-Y% | |
| GAAP net income from continuing operations | $ | 2.34 | | $ | 5.43 | | $ | 13.53 | | | -56.8% | | | -82.7% | |
| Stock award expenses | $ | 7.03 | | $ | 3.48 | | $ | 2.02 | | | 101.9% | | | 247.1% | |
| Change of the fair value of financial derivatives | $ | 3.05 | | $ | 4.00 | | $ | 10.19 | | | -23.8% | | | -70.1% | |
| Non-GAAP net income (loss) from continuing operations | $ | 6.32 | | $ | 4.90 | | $ | 5.37 | | | 28.9% | | | 17.7% | |
Net income was $2.3 million, compared with $5.4 million in the second quarter of 2015, and $13.5 million in the third quarter of 2014. The decrease in net income was mainly due to the $7.0 million expenses for the stock award compensation in the third quarter of 2015. Non-GAAP net income was $6.3 million, a 28.6% increase from $4.9 million in the second quarter of 2015 and 16.7% increase from $5.4 million in the third quarter of 2014. The increase in non-GAAP net income was in line with the revenue growth and the margin improvements.
JV Company Financial Results
In the third quarter, the JV Company sold 6,004 EV products, a 208% increase compared with the same period last year. Total EV product sales comprised 3,000 EV products to the Micro Public Transportation program and 3,004 EV products through the distribution channel under the direct sales program, with the latter being a significant sequential increase over the 643 EV products sold through the distribution channel under the direct sales program in the second quarter.
The condensed financial income statement is as below:
| | | 3Q15 | | | 2Q15 | | | 3Q14 | | | Q-o-Q% | | | Y-o-Y% | |
| Net Revenues (US$mln) | $ | 98.45 | | $ | 68.95 | | $ | 46.85 | | | 42.8% | | | 110.1% | |
| Gross Profit (US$mln) | $ | 13.33 | | $ | 10.65 | | $ | 7.03 | | | 25.1% | | | 89.7% | |
| Gross Margin | | 13.5% | | | 15.4% | | | 15.0% | | | - | | | - | |
| Net Income | $ | 1.61 | | $ | 1.59 | | $ | 4.40 | | | 1.6% | | | -63.4% | |
| % of Net revenue | | 1.6% | | | 2.3% | | | 9.4% | | | - | | | - | |
Gross margin in the third quarter of 2015 was 13.5%, compared with gross margin of 15.4% in the second quarter of 2015 and 15.0% in the same period of 2014. The sequential decrease was the result of the lower selling price to a strategic partner in the third quarter of 2015.
We accounted for our investments in the JV Company under the equity method of accounting as we have a 50% ownership interest in the JV Company. As a result, we recorded 50% of the JV Company’s profit for $0.8 million for the third quarter of 2015. After eliminating intra-entity profits and losses, our share of the after tax profit of the JV Company was $1.2 million for the three months ended September 30, 2015.
Outlook
For the fourth quarter 2015, Kandi expects net revenues to be in the range of $54.0 million to $56.0 million with gross margin in the range of 13.5% to 14.5% .
The Company also expects the JV Company to deliver 8,000 to 10,000 EV products in the fourth quarter and a total of 20,000-22,000 EV products in the full year of 2015.
This outlook reflects Kandi's current view, which is subject to change.
Third Quarter 2015 Conference Call Details
The Company has scheduled a conference call and live webcast to discuss the financial results at 8:00 AM (U.S. EST) on November 9, 2015 (9:00 PM Beijing time on November 9, 2015). Mr. Hu Xiaoming, Chief Executive Officer and Mr. Wang Cheng (Henry), Chief Financial Officer, will deliver prepared remarks, followed by a question and answer session.
The dial-in details for the conference call are as follows:
- Toll-free dial-in number: +1 877-407-3982
- International dial-in number: +1 201-493-6780
- Conference ID: 13623086
- Webcast and replay: http://public.viavid.com/index.php?id=116814
The live audio webcast of the call can also be accessed by visiting Kandi's Investor Relations website athttp://ir.kandivehicle.com. An archive of the webcast will be available on the Company's website following the live call.
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua, Zhejiang Province, is engaged in the research and development, manufacturing and sales of various vehicle products. Kandi has established itself as one of China's leading manufacturers of pure electric vehicle ("EV") products (through its joint venture), EV parts and off-road vehicles. More information can be viewed at the Company's corporate website athttp://www.kandivehicle.com. The Company routinely posts important information on its website.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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Company Contact:
Ms. Kewa Luo
Kandi Technologies Group, Inc.
Phone: 1-212-551-3610
Email: IR@kandigroup.com
IR Contact:
The Piacente Group
Phone: 1-212-481-2050
Email: kandi@tpg-ir.com
- Tables Below -
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
| | | September 30, | | | December 31, | |
| | | 2015 | | | 2014 | |
Current assets | | | | | | |
Cash and cash equivalents | $ | 11,691,023 | | $ | 26,379,460 | |
Restricted cash | | 15,689,228 | | | 13,000,731 | |
Accounts receivable | | 33,912,043 | | | 15,736,805 | |
Inventories (net of provision for slow moving inventory of 304,677 and 315,584 as of September 30, 2015 and December 31, 2014, respectively) | | 31,652,659 | | | 15,403,840 | |
Notes receivable | | 18,785,582 | | | 9,060,441 | |
Other receivables | | 488,621 | | | 238,567 | |
Prepayments and prepaid expense | | 240,609 | | | 120,761 | |
Due from employees | | 41,128 | | | 34,475 | |
Advances to suppliers | | 457,782 | | | 6,901,505 | |
Amount due from JV Company, net | | 76,814,162 | | | 51,450,612 | |
TOTAL CURRENT ASSETS | | 189,772,837 | | | 138,327,197 | |
LONG-TERM ASSETS | | | | | | |
Plant and equipment, net | | 21,788,066 | | | 26,215,356 | |
Land use rights, net | | 14,826,253 | | | 15,649,152 | |
Construction in progress | | 56,525,652 | | | 58,510,051 | |
Long Term Investment | | 1,490,477 | | | - | |
Investment in JV Company | | 82,273,884 | | | 83,309,095 | |
Goodwill | | 322,591 | | | 322,591 | |
Intangible assets | | 515,830 | | | 577,401 | |
Other long term assets | | 156,892 | | | 162,509 | |
TOTAL Long-Term Assets | | 177,899,645 | | | 184,746,155 | |
TOTAL ASSETS | $ | 367,672,482 | | $ | 323,073,352 | |
CURRENT LIABILITIES | | | | | | |
Accounts payables | $ | 87,854,246 | | $ | 45,772,481 | |
Other payables and accrued expenses | | 3,362,729 | | | 5,101,740 | |
Short-term loans | | 37,340,362 | | | 35,589,502 | |
Customer deposits | | 111,314 | | | 2,630,723 | |
Notes payable | | 3,137,846 | | | 5,702,121 | |
Income tax payable | | 2,803,621 | | | 1,835,685 | |
Due to employees | | 12,862 | | | 15,787 | |
Deferred taxes liabilities | | 256,049 | | | 230,864 | |
Financial derivate - liability | | 540,299 | | | 2,245,610 | |
Deferred income | | 34,954 | | | - | |
Total Current Liabilities | | 135,454,282 | | | 99,124,513 | |
LONG-TERM LIABILITIES | | | | | | |
Deferred taxes liabilities | | 402,934 | | | 2,266,725 | |
Financial derivate - liability | | - | | | 10,097,275 | |
Total Long-Term Liabilities | | 402,934 | | | 12,364,000 | |
| | | | | | |
TOTAL LIABILITIES | | 135,857,216 | | | 111,488,513 | |
| | | | | | |
STOCKHOLDER'S EQUITY | | | | | | |
Common stock, $0.001 par value; 100,000,000 shares authorized; 46,964,855 and 46,274,855 shares issued and outstanding at September 30,2015 and December 31,2014, respectively | | 46,965 | | | 46,275 | |
Additional paid-in capital | | 202,744,428 | | | 190,258,037 | |
Retained earnings (the restricted portion is $4,172,324 and $4,172,324 at September 30,2015 and December 31,2014, respectively) | | 30,290,776 | | | 16,390,424 | |
| | | | | | |
Accumulated other comprehensive income(loss) | | (1,266,903) | | | 4,890,103 | |
TOTAL STOCKHOLDERS'EQUITY | | 231,815,266 | | | 211,584,839 | |
| | | | | | |
TOTAL LIABILITIES ANDSTOCKHOLDERS' EQUITY | $ | 367,672,482 | | $ | 323,073,352 | |
KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | | | September 30, | | | September 30, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | | | | | | | | | | |
| REVENUES, NET | $ | 50,528,545 | | $ | 44,206,992 | | $ | 142,273 ,091 | | $ | 117,338,351 | |
| | | | | | | | | | | | | |
| COST OF GOODS SOLD | | 43,411,8 39 | | | 38,698 ,452 | | | 122,294 ,189 | | | 99,748, 314 | |
| | | | | | | | | | | | | |
| GROSS PROFIT | | 7,116,706 | | | 5,508 ,540 | | | 19,978, 902 | | | 17,590, 037 | |
| | | | | | | | | | | | | |
| OPERATING EXPENSES: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Research and development | | 785,450 | | | 391,097 | | | 1,928,091 | | | 2,535,0 27 | |
| | | | | | | | | | | | | |
| Selling and marketing | | 122,873 | | | 432,365 | | | 312,284 | | | 939,516 | |
| | | | | | | | | | | | | |
| General and administrative | | 8,649,541 | | | 2,076,749 | | | 16,275,202 | | | 11,720,693 | |
| | | | | | | | | | | | | |
| Total Operating Expenses | | 9,557,864 | | | 2,900,211 | | | 18,515,577 | | | 15,195,236 | |
| | | | | | | | | | | | | |
| INCOME (LOSS) FROM OPERATIONS | | (2,441,158 | ) | | 2,608,329 | | | 1,463,325 | | | 2,394,801 | |
| | | | | | | | | | | | | |
| OTHER INCOME(EXPENSE): | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Interest income | | 1,140,756 | | | 220,91 1 | | | 2,454,0 79 | | | 1,453,0 47 | |
| | | | | | | | | | | | | |
| Interest (expense) | | (534,987 | ) | | (932,030 | ) | | (1,730,898 | ) | | (2,850,341 | ) |
| | | | | | | | | | | | | |
| Change in fair value of financial instruments | | 3,049,242 | | | 10,187,277 | | | 11,802,586 | | | 6,814,675 | |
| | | | | | | | | | | | | |
| Government grants | | (724 | ) | | 63,584 | | | 92,139 | | | 217,284 | |
| | | | | | | | | | | | | |
| Share of profit (loss) in associated companies | | - | | | 38,702 | | | - | | | (54,290 | ) |
| | | | | | | | | | | | | |
| Share of profit after tax of JV | | 1,179,605 | | | 2,038,388 | | | 1,900,128 | | | 3,757,218 | |
| | | | | | | | | | | | | |
| Other income, net | | 988,224 | | | 21,814 | | | 1,094,278 | | | 141,641 | |
| | | | | | | | | | | | | |
| Total other income (expense), net | | 5,822,116 | | | 11,638,646 | | | 15,612,312 | | | 9,479,234 | |
| | | | | | | | | | | | | |
| INCOME(LOSS) BEFORE INCOME TAXES | | 3,380,958 | | | 14,246,975 | | | 17,075,637 | | | 11,874,035 | |
| | | | | | | | | | | | | |
| INCOME TAX EXPENSE | | (1,037,763 | ) | | (713,273 | ) | | (3,175,287 | ) | | (1,269,408 | ) |
| | | | | | | | | | | | | |
| NET INCOME | | 2,343,195 | | | 13,533,702 | | | 13,900,350 | | | 10,604,627 | |
| | | | | | | | | | | | | |
| OTHER COMPREHENSIVE INCOME | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Foreign currency translation | | (7,098,249 | ) | | (109,112 | ) | | (6,157,006 | ) | | (2,037,704 | ) |
| | | | | | | | | | | | | |
| COMPREHENSIVE INCOME(LOSS) | $ | (4,755,054 | ) | $ | 13,424,590 | | $ | 7,743,344 | | $ | 8,566,923 | |
| | | | | | | | | | | | | |
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | | 46,959,638 | | | 43,214,455 | | | 46,670,533 | | | 41,327,666 | |
| | | | | | | | | | | | | |
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | | 46,959,638 | | | 43,530,185 | | | 46,945,277 | | | 41,462,490 | |
| | | | | | | | | | | | | |
| NET INCOME PER SHARE, BASIC | $ | 0.05 | | $ | 0.31 | | $ | 0.30 | | $ | 0.26 | |
| | | | | | | | | | | | | |
| NET INCOME PER SHARE, DILUTED | $ | 0.05 | | $ | 0.31 | | $ | 0.30 | | $ | 0.26 | |
KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2015 | | | 2014 | |
| | | | | | | |
| CASH FLOWS FROMOPERATING ACTIVITIES: | | | | | | |
| Net income | $ | 13,900,350 | | $ | 10,604,627 | |
| Adjustments to reconcile net income to net cash provided by operating activities | | | | | | |
| Depreciation and amortization | | 4,388,902 | | | 4,157,606 | |
| Assets Impairments | | - | | | | |
| Deferred taxes | | (1,854,863 | ) | | 808,725 | |
| Change in fair value of financial instruments | | (11,802,586 | ) | | (6,814,675 | ) |
| Loss (income) in investment in associated companies | | - | | | 54,290 | |
| Share of loss after tax of JV Company | | (1,900,128 | ) | | (3,757,218 | ) |
| Stock Compensation cost | | 12,486,881 | | | - | |
| | | | | | | |
| Changes in operating assets andliabilities, net of effects ofacquisition: | | | | | | |
| (Increase) Decrease In: | | | | | | |
| Accounts receivable | | (19,286,512 | ) | | 17,190,113 | |
| Inventories | | (17,289,849 | ) | | (5,480,008 | ) |
| Other receivables | | (298,976 | ) | | 105,092 | |
| Due from employee | | (10,535 | ) | | 413,441 | |
| Prepayments and prepaid expenses | | 6,265,899 | | | (49,927,475 | ) |
| Amount due from JV Company | | (27,964,497 | ) | | (49,177,160 | ) |
| | | | | | | |
| Increase (Decrease) In: | | | | | | |
| Accounts payable | | 44,980,746 | | | 32,911,627 | |
| Other payables and accrued liabilities | | (1,302,135 | ) | | 2,441,464 | |
| Customer deposits | | (2,502,087 | ) | | 108,031 | |
| Income Tax payable | | 1,062,643 | | | (36,060 | ) |
| Net cash (used in ) provided byoperating activities | $ | (1,126,747 | ) | $ | (46,397,580 | ) |
| | | | | | | |
| CASH FLOWS FROMINVESTING ACTIVITIES: | | | | | | |
| (Purchases)/Disposal of plant and equipment, net | | (408,850 | ) | | (813,246 | ) |
| Purchases of land use rights | | - | | | (1,667,986 | ) |
| Purchases of construction in progress | | (39,054 | ) | | (39,283 | ) |
| Disposal of associated company | | - | | | (96,268 | ) |
| Issuance of notes receivable | | (72,040,444 | ) | | (21,698,986 | ) |
| Repayment of notes receivable | | 61,697,894 | | | 29,344,951 | |
| Long Term Investment | | (1,535,651 | ) | | - | |
| Net cash provided by (used in)investing activities | $ | (12,326,105 | ) | $ | 5,029,182 | |
| CASH FLOWS FROMFINANCING ACTIVITIES: | | | | | | |
| Restricted cash | | (3,232,950 | ) | | (13,006,018 | ) |
| Proceeds from short-term bank loans | | 30,583,709 | | | 28,616,816 | |
| Repayments of short-term bank loans | | (27,512,406 | ) | | (39,998,504 | ) |
| Proceeds from notes payable | | 9,860,498 | | | 13,007,644 | |
| Repayment of notes payable | | (12,299,436 | ) | | (16,584,746 | ) |
| Option exercise‚stock awards & other financing | | - | | | 6,429,622 | |
| Warrant exercise | | - | | | 22,447,914 | |
| Common stock issued for acquisition, net of cost of capital | | - | | | 78,155,627 | |
| Net cash (used in) provided byfinancing activities | $ | (2,600,585 | ) | $ | 79,068,355 | |
| | | | | | | |
| NET INCREASE IN CASH ANDCASH EQUIVALENTS | | (16,053,437 | ) | | 37,699,957 | |
| Effect of exchange rate changes on cash | | 1,365,000 | | | (961,614 | ) |
| Cash and cash equivalents at beginning of year | | 26,379,460 | | | 12,762,369 | |
| | | | | | | |
| CASH AND CASHEQUIVALENTS AT END OF PERIOD | | 11,691,023 | | | 49,500,712 | |
| | | | | | | |
| SUPPLEMENTARY CASHFLOW INFORMATION | | | | | | |
| Income taxes paid | | 1,794,115 | | | 1,305,468 | |
| Interest paid | | 1,718,257 | | | 1,748,140 | |
