China Pediatric Pharmaceuticals (LHSI) 10-Q 19 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 18, 2013
Document And Entity Information	'	'
Entity Registrant Name	'CHINA PEDIATRIC PHARMACEUTICALS, INC.	'
Entity Central Index Key	'0001354071	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	44,556,104
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
ASSETS	'	'
Cash and cash equivalents	$2,163,082	$1,102,349
Accounts receivable, net of provision for doubtful accounts of $10,854,399 (December 31,2012: $7,818,798)	1,910,322	4,673,315
Other receivable (note 4)	149,298	140,760
Inventories (note 5)	81,535	472,274
Prepaid expenses (note 6)	211,950	3,270,543
Prepaid income taxes	215,257	209,637
VAT tax refundable	'	12,183
Total Current Assets	4,731,444	9,881,061
Property, plant and equipment, net (note 7)	743,359	791,405
Intangible assets, net (note 8)	1,273,099	1,447,046
Total Assets	6,747,902	12,119,512
Current Liabilities	'	'
Accounts payable	10,112	84,373
Accrued expenses and other payables (note 9)	1,018,931	408,838
Trade deposit received	7,020	6,837
VAT tax payable	47,617	'
Total Current Liabilities	1,083,680	500,048
Stockholders' Equity	'	'
Common stock, $0.001 par value, 75,000,000 share authorized, 44,556,104 shares issued and outstanding at September 30, 2013 and December 31, 2012	44,556	44,556
Additional paid in capital	14,102,507	14,102,507
Statutory reserve (note 11)	810,540	810,540
Accumulated other comprehensive income	3,434,265	3,196,765
Accumulated (deficit)	-12,727,646	-6,534,904
Total Stockholders' Equity	5,664,222	11,619,464
Total Liabilities and Stockholders' Equity	$6,747,902	$12,119,512

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]	'	'
Provision for doubtful accounts	$11,495,642	$7,818,798
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	44,556,104	44,556,104
Common stock, shares outstanding	44,556,104	44,556,104

Consolidated_Statements_of_Ope

Consolidated Statements of Operations and Comprehensive (Loss) Income (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]	'	'	'	'
Sales	$890,137	$2,177,886	$2,953,041	$15,017,870
Sales rebates	-104,162	-217,442	-349,342	-2,062,393
Sales, net of rebates	785,975	1,960,444	2,603,699	12,955,477
Cost of sales	528,211	981,490	1,653,946	7,894,782
Gross profit	257,764	978,954	949,753	5,060,695
Advertising expense	807,778	947,859	2,406,189	3,877,809
Selling, general and administrative expense	299,019	711,332	1,177,992	2,868,158
Impairment loss on accounts receivables	-686,940	2,900,192	2,792,639	4,132,574
Write-down of prepaid expense (note 6)	238	'	56,275	'
(Reversal)/Write-down of prepaid expense (note 6)	107,228	'	709,389	'
(Loss) from operations	-269,559	-3,580,429	-6,192,731	-5,817,846
Interest income	-3	'	-11	44
Other (expense)	'	-32	'	-211
Total Other (Expense) Income	-3	-32	-11	-167
(Loss) before income taxes	-269,562	-3,580,461	-6,192,742	-5,818,013
Provision for income taxes	'	'	'	'
Net (loss)	-269,562	-3,580,461	-6,192,742	-5,818,013
Foreign currency translation adjustment	57,428	-32,267	237,500	111,918
Comprehensive (loss) income	($212,134)	($3,612,728)	($5,955,242)	($5,706,095)
Net (loss) income per common share	'	'	'	'
(Loss) per share - basic and diluted	($0.01)	($0.08)	($0.14)	($0.13)
Weighted average common shares outstanding - basic and diluted	44,556,104	44,556,104	44,556,104	44,556,104

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net (loss)	($6,192,742)	($5,818,013)
Adjustments to reconcile net (loss) to net cash used in operating activities	'	'
Depreciation and amortization of property, plant and equipment and intangible assets	278,670	276,400
Provision for doubtful accounts	2,792,639	4,132,574
Write down due to impairment of advance to suppliers	709,389	'
Write off of other receivable	56,275	'
Recognition of stock based compensation expense	'	15,625
(Increase) decrease in current assets	'	'
Accounts receivable	61,533	-1,112,751
Inventory	398,637	-484,738
Prepaid expense	2,399,733	2,488,987
Increase (decrease) in current liabilities	'	'
Accounts payable	-75,619	-282,924
Accrued expenses and other payables	592,060	583,591
Value-added tax payable	59,417	-329,028
Net cash provided by (used in) operating activities	1,079,992	-530,277
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Cash advances to employees	-60,983	-681,557
Net cash (used in) investing activities	-60,983	-681,557
Effect of exchange rate changes on cash and cash equivalents	41,724	12,624
Net change in cash and cash equivalents	1,060,733	-1,199,210
Cash and cash equivalents, beginning balance	1,102,349	2,186,650
Cash and cash equivalents, ending balance	2,163,082	987,440
SUPPLEMENTAL DISCLOSURES:	'	'
Cash paid during the year for: Income tax payments	'	'
Cash paid during the year for: Interest payments	'	'

Consolidated_Statements_of_Sto

Consolidated Statements of Stockholders Equity (USD $)	Common Stock	Additional Paid-In Capital	Other Comprehensive Income	Statuory Reserves	Retained Earnings/Accumulated (deficit)	Deferred Compensation	Total
Balance, beginning at Dec. 31, 2011	$44,556	$14,102,507	$3,038,258	$810,540	$2,617,414	$15,625	$20,597,650
Balance, beginning, shares at Dec. 31, 2011	44,556,104	'	'	'	'	'	'
Foreign currency translation adjustments	'	'	158,507	'	'	'	158,507
Stock-based compensation	'	'	'	'	'	15,625	15,625
Net loss	'	'	'	'	-9,152,318	'	-9,152,318
Balance, ending at Dec. 31, 2012	44,556	14,102,507	3,196,765	810,540	-6,534,904	'	11,619,464
Balance, beginning, shares at Dec. 31, 2012	'	'	'	'	'	'	44,556,104
Foreign currency translation adjustments	'	'	237,500	'	'	'	'
Net loss	'	'	'	'	-6,192,742	'	-6,192,742
Balance, ending at Sep. 30, 2013	$44,556	$14,102,507	$3,434,265	$810,540	($12,727,646)	'	$5,664,222

Going_Concern

Going Concern	9 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Going Concern	'
	NOTE 1 - GOING CONCERN
	The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying consolidated financial statements, the Company incurred a net loss of $269,592 and $3,580,461 for the three months ended September 30, 2013 and 2012; $6,192,742 and $5,818,013 for the nine months ended September 30, 2013 and 2012. Further, the Company had accumulated deficit of $12,727,646 and $6,534,904 as at September 30, 2013 and December 31, 2012. These create an uncertainty about the Company’s ability to continue as a going concern. In this regard, the Company’s Chairman has issued a letter of undertaking that he will provide financial support to the Company (Note 14). These consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Organization

Organization	9 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Organization	'
	NOTE 2 – ORGANIZATION
	China Pediatric Pharmaceuticals, Inc. ("the Company") was incorporated on April 20, 2005 in the state of Nevada.  The Company was originally incorporated under the name Belford Enterprises, Inc. and changed its name to Lid Hair Studios International Inc. on August 15, 2005.  Asia-Pharm Holding Inc. ("Asia-Pharm") was incorporated in British Virgin Islands on June 20, 2008.  China Children Pharmaceuticals Co. Limited ("China Children") a wholly owned subsidiary of Asia-Pharm Holdings Inc. was formed on June 27, 2008 under the laws of Hong Kong.  Xi'an Coova Children Pharmaceuticals Co., Ltd. ("Xi'an Coova" or "WOFE") is a "wholly owned foreign enterprise" incorporated in People's Republic of China ("PRC").  Xi'an Coova is a wholly owned subsidiary of China Children.
	On September 30, 2009 the Company completed its merger with China Children; a Hong Kong based pharmaceutical manufacturer company in accordance with the Share Exchange Agreement.  The Share Exchange Transaction is being accounted for as a reverse acquisition.  In accordance with the Accounting and Financial Reporting Interpretations and Guidance prepared by the staff of the U.S. Securities and Exchange Commission, the Company (the legal acquirer) is considered the accounting acquiree and China Children (the legal acquiree) is considered the accounting acquirer for accounting purposes.  Subsequent to the Share Exchange Transaction, the financial statements of the combined entity will in substance be those of China Children.  The assets, liabilities and historical operations prior to the share exchange transaction will be those of China Children.  Subsequent to the date of Share Exchange Transaction, China Children is deemed to be a continuation of the business of the Company.  Therefore post-exchange financial statements will include the combined balance sheet of the Company and China Children, the historical operations of China Children and the operations of the Company and China Children from the closing date of the Share Exchange Transaction forward.
	On August 4, 2008, an Entrustment Management Agreement was entered into between Xi'an Coova and Shaanxi Jiali Pharmaceuticals Co., Ltd. ("Shaanxi Jiali") to which China Children exercises control over the operations and business of Shaanxi Jiali through Xi'an Coova.  Pursuant to the Entrustment Management Agreement, China Children shall receive all net profits and assume all operational losses of Shaanxi Jiali through Xi'an Coova.
	Xi'an Coova entered into a Management Entrustment Agreement with Shaanxi Jiali and the shareholders of Shaanxi Jiali (the "Management Entrustment Agreement"), in which Shaanxi Jiali and its shareholders agreed to transfer control, or entrust, the operations and management of its business to Xi'an Coova.  Under the agreement, Xi'an Coova manages the operations and assets of Shaanxi Jiali, controls all of the cash flows of Shaanxi Jiali through a bank account controlled by Xi'an Coova, is entitled to 100% of earnings before tax of Shaanxi Jiali, a management fee, and is obligated to pay all payables and loan payments of Shaanxi Jiali.  In addition, under the terms of the Management Entrustment Agreement, Xi'an Coova has been granted certain rights which include, in part, the right to appoint and terminate members of Shaanxi Jiali's Board of Directors, hire management and administrative personnel and control decisions relating to entering and performing customer contracts and other instruments.  We anticipate that Shaanxi Jiali will continue to be the contracting party under its customer contracts, bank loans and certain other instruments unless Xi'an Coova exercises its option.  The agreement does not terminate unless the business of Shaanxi Jiali is terminated or Xi'an Coova exercises its option to acquire all of the assets or equity of Shaanxi Jiali under the terms of the Exclusive Option Agreement.
	The contractual arrangements completed in August 4, 2008 provide Xi'an Coova with controlling interest in Shaanxi Jiali as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation”, Section 10-15, “Variable Interest Entities”, which requires the Company to consolidate the financial statements of Shaanxi Jiali. The Company, as an entity that consolidates a Variable Interest Entity is called the primary beneficiary of the VIE. Accordingly, the Company is the primary beneficiary of Shaanxi Jiali.
	The outstanding stock of the Company prior to the Share Exchange Transaction was accounted for at their net book value and no goodwill was recognized.
	The Company, through its subsidiary, and exclusive contractual arrangement with Shaanxi Jiali, is engaged in the business of manufacturing and marketing over-the-counter ("OTC") and prescription pharmaceutical products for the Chinese marketplace as treatment for a variety of diseases and conditions.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'
	NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of Presentation
	The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America.  The Company's functional currency is the Chinese Yuan (“Renminbi”, “RMB”); however the accompanying consolidated financial statements have been translated and presented in United States Dollars (“$”).
	Principles of Consolidation
	The consolidated financial statements include the accounts of the China Pediatric Pharmaceuticals, Inc., its wholly owned subsidiaries, China Children Pharmaceuticals Co. Limited, and Xi'an Coova Children Pharmaceuticals Co., Ltd. as well as Shaanxi Jiali Pharmaceuticals Co., Ltd., a variable interest entity (“VIE”) for which the Company is the primary beneficiary.  All inter-company accounts and transactions have been eliminated in consolidation.
	Unaudited Interim Financial Information
	These unaudited interim consolidated financial statements have been prepared in accordance with GAAP for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that permit reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been made. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2013.
	The consolidated balance sheets and certain comparative information as of December 31, 2012 are derived from the audited consolidated financial statements and related notes for the year ended December 31, 2012 (“2012 Annual Financial Statements”), included in the Company’s 2012 Annual Report on Form 10-K. These unaudited interim consolidated financial statements should be read in conjunction with the 2012 Annual Financial Statements.
	Use of Estimates
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
	Accounts Receivable
	Management periodically reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate potential credit losses on accounts receivable. The Company grants 90 days payment terms to all credit sales customers.
	Provision for doubtful accounts is estimated as follows: i) 50% on accounts that are outstanding between 91 and 180 days, ii) 75% on accounts that are outstanding between 181 to 365 days, and iii) 100% on accounts that are outstanding for over 365 days.
	Segment Reporting
	ASC 280-10-50, “Disclosure about Segments of an Enterprise and Related information” requires us of the “management approach” model for segment reporting.  The management approach model is based on the way a Company’s management organizes segments within the company for making operating decisions and assessing performance.  Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.  The Company operates in one segment during the three and nine months ended September 30, 2013 and 2012.
	Recent Accounting Pronouncements
	In February 2013, the FASB issued ASU No. 2013-02, which amends the authoritative accounting guidance under ASC Topic 220 “Comprehensive Income.” The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under generally accepted accounting principles in the United States of America (“GAAP”) to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The amendments in this update are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition.
	On March 4, 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830) Parent’s Accounting for the Cumulative Translation Adjustment upon De-recognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU 2013-05”). ASU 2013-05 updates accounting guidance related to the application of consolidation guidance and foreign currency matters. This guidance resolves the diversity in practice about what guidance applies to the release of the cumulative translation adjustment into net income. This guidance is effective for interim and annual periods beginning after December 15, 2013. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition.
	In July of 2013 the Financial Accounting Standards Board, or FASB issued Accounting Standards Update, or ASU, No. 2013-11, Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward exists. This guidance 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 carry-forward, except to the extent that carry-forwards are not available to settle any additional income taxes that would result from disallowance of a tax position. The unrecognized tax benefit should be presented as a liability. This guidance is applicable for fiscal years and interim periods beginning after December 15, 2013. The Company is evaluating the potential impact of adopting this standard on its consolidated financial statements.
	As of September 30, 2013, there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s financial statements.

Other_Receivables

Other Receivables	9 Months Ended
	Sep. 30, 2013
Receivables [Abstract]	'
Other Receivables	'
	NOTE 4 - OTHER RECEIVABLES
	Other receivables mainly consist of cash advances to employees.  As of September 30, 2013 and December 31, 2012, other receivables were $149,298 and $140,760, respectively. During the three and nine months ended September 30, 2013, $56,275 was written off. No amounts were written off during the three and nine months ended September 30, 2012.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Inventories	'
	NOTE 5 - INVENTORIES
	As at September 30, 2013 and December 31, 2012, inventories consist of the following:
		9/30/13		12/31/12
	Raw materials	$	69,272	$	218,019
	Finished goods		12,263		594,998
	Provision for obsolescence		—		(340,743	)
	Total	$	81,535	$	472,274

Prepaid_Expenses

Prepaid Expenses	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Prepaid Expenses	'
	NOTE 6 - PREPAID EXPENSES
	Prepaid expenses
	Prepaid expenses as at September 30, 2013 and December 31, 2012 represent the following components:
	a. Advance payments to OEM manufacturers for goods purchased: the Company is normally required by its vendors to pay 40% of the consigned processing contract in advance and these payments are recorded as "prepaid expenses" accordingly. They are reclassified to "Inventory-finished goods" when purchases are completed, and then charged to COGS as revenue is recognized.
	b. Advance payments to suppliers for raw materials and packing materials: the Company is normally required to pay 30% down payment in accordance with the terms of the purchasing agreements in advance, and these payments are recorded as "prepaid expenses". They are reclassified to "Inventory-raw materials" when the procurement of materials are completed and then included in the "production cost" when these raw materials are utilized to produce finished goods, which will finally be charged to COGS at the time when revenue is recognized.
	c. Advance payments to advertising companies for promotion: the Company’s advertising contracts are normally for up to twelve months. Payment terms require the Company to make two to four payments during the first several months of contractual period. These payments are recorded as "prepaid expense" when made and charged against "Selling and Distribution expenses" when advertisement first takes place.
		Payee	Nature	9/30/13		12/31/12
	Advance advertising payments	Advertising companies (c)	Advance payments to advertising companies for promotion	$	—	$	1,862,537
	Advance payment to suppliers	Suppliers (a), (b)	Advance payments to OEM manufactures for goods purchased and suppliers for raw Materials and packing materials		211,950		1,408,006
	Total			$	211,950	$	3,270,543
	During the three and nine months ended September 30, 2013, the Company recognized an impairment loss of $107,228 and $709,389, respectively on advances to certain suppliers. No impairment loss was recognized during the three and nine months ended September 30, 2012.

Property_Plant_and_Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2013
Property, Plant and Equipment [Abstract]	'
Property, Plant and Equipment	'
	NOTE 7 - PROPERTY, PLANT AND EQUIPMENT
	As of September 30, 2013 and December 31, 2012, Property, Plant and Equipment consist of the following:
		9/30/13			12/31/12
	Buildings	$	585,863		$	570,568
	Plant and equipment		1,129,292			1,099,809
	Transportation equipment		7,370			7,179
	Office equipment		56,554			55,077
	Total		1,779,079			1,732,633
	Accumulated depreciation		(1,035,720	)		(941,228	)
		$	743,359		$	791,405
	Depreciation expense for the three months ended September 30, 2013 and 2012 were $22,500 and $22,902, respectively; for the nine months ended September 30, 2013 and 2012 were $68,443 and $69,524 respectively.

Intangible_Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible Assets	'
	NOTE 8 - INTANGIBLE ASSETS
	The Company has four proprietary technologies: propriety technology for antioxidant technique, proprietary technology for “liren” capsule, patent-Chinese medicine and production method for skin and gynecology disease and patent: Chinese medicine and production method for tracheitis.  Propriety technology for antioxidant technique was contributed by a shareholder in exchange for shares of the Company’s common stock.  Proprietary technology for “liren” capsule was purchased from third party at the price agreed by the Company and the third party.  Two patents were purchase from the shareholders at the prices determined by an independent appraiser.  These proprietary technologies were acquired for the future use of the Company.  We capitalized them as intangible assets as acquired. Land use rights will expire in 2056 and 2058.  The components of finite-lived intangible assets are as follows:
		9/30/13			12/31/12
	Land use right	$	347,731		$	338,652
	Proprietary technologies		2,890,835			2,815,363
	Total		3,238,566			3,154,015
	Accumulated amortization		(1,965,467	)		(1,706,969	)
		$	1,273,099		$	1,447,046
	Amortization expense for the three months ended September 30, 2013 and 2012 were $70,076 and $68,875, respectively; for the nine months ended September 30, 2013 and 2012 were $210,227 and $206,878, respectively.
	The estimated future amortization expenses related to intangible asset as of September 30, 2013 are as follows:
	Years ending December 31,
	2013 (3 months)	$	70,913
	2014		283,652
	2015		283,652
	2016		283,652
	2017		283,652
	Thereafter		67,578
	Total	$	1,273,099

Accrued_Expenses_and_Other_Pay

Accrued Expenses and Other Payables	9 Months Ended
	Sep. 30, 2013
Payables and Accruals [Abstract]	'
Accrued Expenses and Other Payables	'
	NOTE 9 – ACCRUED EXPENSES AND OTHER PAYABLES
	Included in accrued expenses and other payables were $522,469 (December 31, 2012: $Nil) in TV advertising expenses under two contracts payable and accrued sales commission and salesmen expenses totaling $384,632 (December 31, 2012: $310,550) at September 30, 2013.

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	NOTE 10 - INCOME TAXES
	The Company was incorporated in the United States of America (“USA”) and has operations in one tax jurisdiction, i.e. the PRC. The Company generated substantially all of its net income from its operations in the PRC for the three and nine months ended September 30, 2013 and 2012, and has recorded income tax provision for the periods. Deferred tax asset which may arise as a result of net operating losses and temporary differences has been offset by a valuation allowance due to the uncertainty surrounding their realization.
	Uncertain Tax Positions
	Interest associated with unrecognized tax benefits are classified as income tax, and penalties are classified in selling, general and administrative expenses in the statements of operations.
	For the three and nine months ended September 30, 2013 and 2012, the Company had no unrecognized tax benefits and related interest and penalties expenses.  Currently, the Company is not undergoing examination by major tax jurisdictions. However, the Company is subject to examination by major tax jurisdictions for all prior years.

Share_Capital

Share Capital	9 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
Share Capital	'
	NOTE 11 - SHARE CAPITAL
	Common Shares
	The total authorized capital is 75,000,000 common shares with a par value of $0.001 per share. On December 19, 2011, the Company declared a 7 to 2 forward stock split, effective February 29, 2012. The number of shares, income (loss) per share presented elsewhere in these consolidated financial statements has been adjusted to reflect the result of the stock split.
	The Company did not issue any common stock during the nine months ended September 30, 2013 and the year ended December 31, 2012. As at September 30, 2013 and December 31, 2012, total issued and outstanding common stock was 44,556,104.

Statutory_Reserve

Statutory Reserve	9 Months Ended
	Sep. 30, 2013
Insurance [Abstract]	'
Statutory Reserve	'
	NOTE 12 - STATUTORY RESERVE
	In accordance with the laws and regulations of the PRC, a wholly-owned Foreign Invested Enterprises income, after the payment of the PRC income taxes, shall be allocated to the statutory surplus reserves and statutory public welfare fund.  Prior to January 1, 2006 the proportion of allocation for reserve was 10 percent of the profit after tax to the surplus reserve fund and additional 5-10 percent to the public affair fund.  The public welfare fund reserve was limited to 50 percent of the registered capital.  Effective January 1, 2006, there is now only one fund requirement.  The reserve is 10 percent of income after tax, not to exceed 50 percent of registered capital.
	Statutory Reserve funds are restricted for set off against losses, expansion of production and operation or increase in register capital of the respective company.  Statutory public welfare fund is restricted to the capital expenditures for the collective welfare of employees.  These reserves are not transferable to the Company in the form of cash dividends, loans or advances.  These reserves are therefore not available for distribution except in liquidation.  As at September 30, 2013 and December 31, 2012, the Company had allocated $810,540 to these non-distributable reserve funds.

Concentration_and_Credit_Risks

Concentration and Credit Risks	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Concentration and Credit Risks	'
	NOTE 13 - CONCENTRATION AND CREDIT RISK
	There was no customer that accounted for more than 10% of accounts receivable at September 30, 2013 and December 31, 2012. As of September 30, 2013, two vendors, each accounted for more than 10%, and individually accounted for 30%, and 25% of accounts payable totaling 55%. As of December 31, 2012, three vendors, each accounted for more than 10%, and individually accounted for 35%, 29% and 19% of accounts payable, totaling 83%.
	Three customers, each accounted for more than 10%, and individually accounted for 35%, 29% and 27% of total sales for the three months ended September 30, 2013, totaling 91%. No customer accounted for more than 10% total sales for the three months ended September 30, 2012. Four vendors, each accounted for more than 10%, and individually accounted for 21%, 19%, 18% and 12% of total purchase during the three months ended September 30, 2013, totaling 70%. Four vendors, each accounted for more than 10%, and individually accounted for 25%, 23%, 21% and 17% of total purchase for the three months ended September 30, 2012, totaling 86%
	Four customers, each accounted for more than 10%, and individually accounted for 15% 14% 13% and 11% of total sales for the nine months ended September 30, 2013, totaling 53%. No customer accounted for more than 10% total sales for the nine months ended September 30, 2012. Five vendors each accounted for more than 10%, and individually accounted for 19%, 17%, 15%, 14%, and 10% of total purchase during the nine months ended September 30, 2013, totaling 75%. Three vendors, each accounted for more than 10%, and individually accounted for 23%, 22% and 21% of total purchase for the nine months ended September 30, 2012, totaling 66%.

Commitment

Commitment	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitment	'
	NOTE 14 – COMMITMENT
	The Company is committed to pay $1.1 million for advertising through December 2013.

Chairman_Financial_Undertaking

Chairman Financial Undertaking	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
Chairman Financial Undertaking	'
	NOTE 15 – CHAIRMAN FINANCIAL UNDERTAKING
	On November 15, 2013, the Chairman issued an undertaking that the Chairman will give his every endeavor and effort to obtain necessary and adequate funding to meet the Company’s financial obligations as when required. There are no assurances that the Chairman will be successful in this endeavor.

Subsequent_Event

Subsequent Event	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
Subsequent Event	'
	NOTE 16 - SUBSEQUENT EVENT
	The Company has evaluated subsequent events for potential recognition and disclosure. No significant events occurred subsequent to the September 30, 2013, to the date these consolidated financial statements are filed with the Securities Exchange Commissions that would have a material impact on the Company’s consolidated financial statements.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Basis of Presentation	'
	Basis of Presentation
	The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America.  The Company's functional currency is the Chinese Yuan (“Renminbi”, “RMB”); however the accompanying consolidated financial statements have been translated and presented in United States Dollars (“$”).
Principles of Consolidation	'
	Principles of Consolidation
	The consolidated financial statements include the accounts of the China Pediatric Pharmaceuticals, Inc., its wholly owned subsidiaries, China Children Pharmaceuticals Co. Limited, and Xi'an Coova Children Pharmaceuticals Co., Ltd. as well as Shaanxi Jiali Pharmaceuticals Co., Ltd., a variable interest entity (“VIE”) for which the Company is the primary beneficiary.  All inter-company accounts and transactions have been eliminated in consolidation.
Unaudited Interim Financial Information	'
	Unaudited Interim Financial Information
	These unaudited interim consolidated financial statements have been prepared in accordance with GAAP for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that permit reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been made. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2013.
	The consolidated balance sheets and certain comparative information as of December 31, 2012 are derived from the audited consolidated financial statements and related notes for the year ended December 31, 2012 (“2012 Annual Financial Statements”), included in the Company’s 2012 Annual Report on Form 10-K. These unaudited interim consolidated financial statements should be read in conjunction with the 2012 Annual Financial Statements.
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
Accounts Receivable	'
	Accounts Receivable
	Management periodically reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate potential credit losses on accounts receivable. The Company grants 90 days payment terms to all credit sales customers.
	Provision for doubtful accounts is estimated as follows: i) 50% on accounts that are outstanding between 91 and 180 days, ii) 75% on accounts that are outstanding between 181 to 365 days, and iii) 100% on accounts that are outstanding for over 365 days.
Segment Reporting	'
	Segment Reporting
	ASC 280-10-50, “Disclosure about Segments of an Enterprise and Related information” requires us of the “management approach” model for segment reporting.  The management approach model is based on the way a Company’s management organizes segments within the company for making operating decisions and assessing performance.  Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.  The Company operates in one segment during the three and nine months ended September 30, 2013 and 2012.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	In February 2013, the FASB issued ASU No. 2013-02, which amends the authoritative accounting guidance under ASC Topic 220 “Comprehensive Income.” The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under generally accepted accounting principles in the United States of America (“GAAP”) to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The amendments in this update are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition.
	On March 4, 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830) Parent’s Accounting for the Cumulative Translation Adjustment upon De-recognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU 2013-05”). ASU 2013-05 updates accounting guidance related to the application of consolidation guidance and foreign currency matters. This guidance resolves the diversity in practice about what guidance applies to the release of the cumulative translation adjustment into net income. This guidance is effective for interim and annual periods beginning after December 15, 2013. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition.
	In July of 2013 the Financial Accounting Standards Board, or FASB issued Accounting Standards Update, or ASU, No. 2013-11, Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward exists. This guidance 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 carry-forward, except to the extent that carry-forwards are not available to settle any additional income taxes that would result from disallowance of a tax position. The unrecognized tax benefit should be presented as a liability. This guidance is applicable for fiscal years and interim periods beginning after December 15, 2013. The Company is evaluating the potential impact of adopting this standard on its consolidated financial statements.
	As of September 30, 2013, there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s financial statements.

Inventories_Tables

Inventories (Tables)	9 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Inventories	'
		9/30/13		12/31/12
	Raw materials	$	69,272	$	218,019
	Finished goods		12,263		594,998
	Provision for obsolescence		—		(340,743	)
	Total	$	81,535	$	472,274

Prepaid_Expenses_Tables

Prepaid Expenses (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Prepaid Expenses	'
		Payee	Nature	9/30/13		12/31/12
	Advance advertising payments	Advertising companies (c)	Advance payments to advertising companies for promotion	$	—	$	1,862,537
	Advance payment to suppliers	Suppliers (a), (b)	Advance payments to OEM manufactures for goods purchased and suppliers for raw Materials and packing materials		211,950		1,408,006
	Total			$	211,950	$	3,270,543

Property_Plant_and_Equipment_T

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2013
Property, Plant and Equipment [Abstract]	'
Property, Plant and Equipment	'
		9/30/13			12/31/12
	Buildings	$	585,863		$	570,568
	Plant and equipment		1,129,292			1,099,809
	Transportation equipment		7,370			7,179
	Office equipment		56,554			55,077
	Total		1,779,079			1,732,633
	Accumulated depreciation		(1,035,720	)		(941,228	)
		$	743,359		$	791,405

Intangible_Assets_Tables

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible Assets	'
		9/30/13			12/31/12
	Land use right	$	347,731		$	338,652
	Proprietary technologies		2,890,835			2,815,363
	Total		3,238,566			3,154,015
	Accumulated amortization		(1,965,467	)		(1,706,969	)
		$	1,273,099		$	1,447,046
Amortization Expense	'
	Years ending December 31,
	2013 (3 months)	$	70,913
	2014		283,652
	2015		283,652
	2016		283,652
	2017		283,652
	Thereafter		67,578
	Total	$	1,273,099

Going_Concern_Details_Narrativ

Going Concern (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'	'	'	'	'
Net Loss	($269,592)	($3,580,461)	($6,192,742)	($5,818,013)	'
Accumulated Deficit	($12,727,646)	'	($12,727,646)	'	($6,534,904)

Other_Receivables_Details_Narr

Other Receivables (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Other Receivables, Net, Current [Abstract]	'	'
Other Receivables	$149,298	$140,760
Write off of other receivable	$56,275	'

Inventories_Inventories_Detail

Inventories - Inventories (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Inventory Disclosure [Abstract]	'	'
Raw materials	$69,272	$218,019
Finished goods	12,263	594,998
Provision for obsolescence	'	-340,743
Total	$81,535	$472,274

Prepaid_Expenses_Prepaid_Expen

Prepaid Expenses - Prepaid Expenses (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Prepaid Expense, Current [Abstract]	'	'	'
Advance advertising payments	'	'	$1,862,537
Advance payment to suppliers	211,950	211,950	1,408,006
Total	211,950	211,950	3,270,543
Prepaid in Advance for materials	'	'	30.00%
Write down due to impairment of advance to suppliers	$107,228	$709,389	'

Property_Plant_and_Equipment_P

Property, Plant and Equipment - Property, Plant and Equipment (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Notes to Financial Statements	'	'
Buildings	$585,863	$570,568
Plant and equipment	1,129,292	1,099,809
Transportation equipment	7,370	7,179
Office equipment	56,554	55,077
Total	1,779,079	1,732,633
Accumulated depreciation	-1,035,720	-941,228
Property, plant & equipment, net	$743,359	$791,405

Property_Plant_and_Equipment_D

Property, Plant and Equipment (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Notes to Financial Statements	'	'	'	'
Depreciation Expense	$22,500	$22,902	$68,443	$69,524

Intangible_Assets_Intangible_A

Intangible Assets - Intangible Assets (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Intangibles, Gross	$3,238,566	$3,145,091
Accumulated amortization	-1,965,467	-1,706,969
Total	1,273,099	1,447,046
Land Use Right	'	'
Intangibles, Gross	347,731	338,652
Proprietary technologies	'	'
Intangibles, Gross	$2,890,835	$2,815,363

Intangible_Assets_Amortization

Intangible Assets - Amortization Expense (Details) (USD $)	Sep. 30, 2013
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]	'
2013(3 months)	$70,913
2014	283,652
2015	283,652
2016	283,652
2017	283,652
Thereafter	67,578
Total	$1,273,099

Intangible_Assets_Details_Narr

Intangible Assets (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]	'	'	'	'
Amortization Expense	$70,076	$68,875	$210,227	$206,878

Accrued_Expenses_and_Other_Pay1

Accrued Expenses and Other Payables (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Payables and Accruals [Abstract]	'	'
Accrued Expenses and other payables	$522,469	'
Accrued sales commission	$384,632	$310,550

Share_Capital_Details

Share Capital (Details) (USD $)	1 Months Ended
	Feb. 29, 2012	Sep. 30, 2013	Dec. 31, 2012
Notes to Financial Statements	'	'	'
Stock split	'7:2	'	'
Common stock, par value	'	$0.00	$0.00
Common stock, shares authorized	'	75,000,000	75,000,000
Common stock, shares issued	'	44,556,104	44,556,104

Statutory_Reserve_Details

Statutory Reserve (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statutory Reserve Details	'	'
Non-distributable reserve funds	$810,540	$810,540	[1]
[1]	Prior to January 1, 2006 the proportion of allocation for reserve was 10 percent of the profit after tax to the surplus reserve fund and additional 5-10 percent to the public affair fund.The public welfare fund reserve was limited to 50 percent of the registered capital.Effective January 1, 2006, there is now only one fund requirement.The reserve is 10 percent of income after tax, not to exceed 50 percent of registered capital.

Concentration_and_Credit_Risks1

Concentration and Credit Risks (Details Narrative)	3 Months Ended		9 Months Ended			12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013		Sep. 30, 2012	Dec. 31, 2012
Customer Percentage of Accounts Receivable	'	'	10.00%	[1]	'	10.00%
Number of Accounts Payable	'	'	'2		'	'3
Accounts Payable Percentage	'	'	55.00%		'	83.00%
Number of Customers	'3	'0	'4		'0	'
Sales Percentage	91.00%	'	53.00%		'	10.00%	[1]
Number of Vendors	'4	'4	'5		'6	'
Vendor Percentage	70.00%	86.00%	75.00%		66.00%	'
Vendor 1	'	'	'		'	'
Accounts Payable Percentage	'	'	30.00%		'	35.00%
Vendor Percentage	21.00%	25.00%	19.00%		23.00%	'
Vendor 2	'	'	'		'	'
Accounts Payable Percentage	'	'	25.00%		'	29.00%
Vendor Percentage	19.00%	23.00%	17.00%		22.00%	'
Vendor 3	'	'	'		'	'
Accounts Payable Percentage	'	'	'		'	19.00%
Vendor Percentage	18.00%	21.00%	15.00%		21.00%	'
Vendor 4	'	'	'		'	'
Vendor Percentage	12.00%	17.00%	14.00%		'	'
Vendor 5	'	'	'		'	'
Vendor Percentage	'	'	10.00%		'	'
Customer 1	'	'	'		'	'
Sales Percentage	35.00%	'	15.00%		'	'
Customer 2	'	'	'		'	'
Sales Percentage	29.00%	'	14.00%		'	'
Customer 3	'	'	'		'	'
Sales Percentage	27.00%	'	13.00%		'	'
Customer 4	'	'	'		'	'
Sales Percentage	'	'	11.00%		'	'
[1]	There was no customer that accounted for more than 10%