Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Jun. 29, 2021 | Sep. 30, 2020 | |
Document Information Line Items | |||
Entity Registrant Name | CHINA JO-JO DRUGSTORES, INC. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Common Stock, Shares Outstanding | 41,751,790 | ||
Entity Public Float | $ 26,700,000 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001413263 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Mar. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity File Number | 001-34711 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Interactive Data Current | Yes |
Consolidated Balance sheets
Consolidated Balance sheets - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 22,045,628 | $ 16,176,318 |
Restricted cash | 12,627,016 | 14,806,288 |
Financial assets available for sale | 91,472 | 157,159 |
Notes receivable | 39,392 | 57,005 |
Trade accounts receivable | 13,423,728 | 9,770,656 |
Inventories | 16,972,965 | 12,247,004 |
Other receivables, net | 5,051,960 | 5,069,442 |
Advances to suppliers | 421,963 | 1,174,800 |
Other current assets | 1,560,119 | 1,528,540 |
Total current assets | 72,234,243 | 60,987,212 |
PROPERTY AND EQUIPMENT, net | 6,549,035 | 7,633,740 |
OTHER ASSETS | ||
Long-term investment | 3,981,986 | 2,544,451 |
Farmland assets | 835,427 | 742,347 |
Long term deposits | 1,546,764 | 1,456,384 |
Other noncurrent assets | 856,391 | 1,046,763 |
Operating lease right-of-use assets | 16,778,729 | 21,711,376 |
Intangible assets, net | 3,528,056 | 3,393,960 |
Total other assets | 27,527,353 | 30,895,281 |
Total assets | 106,310,631 | 99,516,233 |
CURRENT LIABILITIES | ||
Short-term bank loan | 762,270 | 1,410,130 |
Accounts payable, trade | 29,895,830 | 21,559,494 |
Notes payable | 25,663,633 | 26,605,971 |
Other payables | 2,940,000 | 2,522,330 |
Other payables - related parties | 445,305 | 490,218 |
Customer deposits | 1,146,247 | 708,140 |
Taxes payable | 197,733 | 119,247 |
Accrued liabilities | 501,111 | 753,612 |
Long-term loan payable-current portion | 2,557,634 | 2,287,742 |
Current portion of operating lease liabilities | 788,171 | 981,090 |
Total current liabilities | 64,897,934 | 57,437,974 |
Long-term loan payable | 1,892,269 | 4,115,958 |
Long term operating lease liabilities | 15,118,083 | 19,049,575 |
Employee Deposits | 70,507 | |
Purchase option and warrants liability | 64,090 | |
Total liabilities | 81,908,286 | 80,738,104 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY | ||
Common stock; $0.001 par value; 250,000,000 shares authorized; 41,751,790 and 32,936,786 shares issued and outstanding as of March 31, 2021 and March 31, 2020 | 41,752 | 32,937 |
Preferred stock; $0.001 par value; 10,000,000 shares authorized; nil issued and outstanding as of March 31, 2021 and March 31, 2020 | ||
Additional paid-in capital | 66,516,033 | 54,209,301 |
Statutory reserves | 1,309,109 | 1,309,109 |
Accumulated deficit | (44,942,374) | (36,400,837) |
Accumulated other comprehensive income | 2,818,185 | 1,440,424 |
Total stockholders’ equity | 25,742,705 | 20,590,934 |
Noncontrolling interests | (1,340,360) | (1,812,805) |
Total equity | 24,402,345 | 18,778,129 |
Total liabilities and stockholders’ equity | $ 106,310,631 | $ 99,516,233 |
Consolidated Balance sheets (Pa
Consolidated Balance sheets (Parentheticals) - $ / shares | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 41,751,790 | 32,936,786 |
Common stock, shares outstanding | 41,751,790 | 32,936,786 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
REVENUES, NET | $ 133,134,633 | $ 117,327,689 |
COST OF GOODS SOLD | 103,890,824 | 91,801,259 |
GROSS PROFIT | 29,243,809 | 25,526,430 |
SELLING EXPENSES | 26,954,914 | 23,793,603 |
GENERAL AND ADMINISTRATIVE EXPENSES | 10,897,629 | 8,108,377 |
IMPAIRMENT OF LONG-LIVED ASSETS | 228,506 | 628,192 |
TOTAL OPERATING EXPENSES | 38,081,049 | 32,530,172 |
LOSS FROM OPERATIONS | (8,837,240) | (7,003,742) |
OTHER EXPENSE: | ||
INTEREST INCOME | 707,878 | 1,063,747 |
INTEREST EXPENSE | (455,187) | (698,518) |
OTHER | 176,519 | (204,064) |
CHANGE IN FAIR VALUE OF PURCHASE OPTION AND WARRANTS LIABILITY | 64,090 | 401,158 |
LOSS BEFORE INCOME TAXES | (8,343,940) | (6,441,419) |
PROVISION FOR INCOME TAXES | 31,638 | 16,258 |
NET LOSS | (8,375,578) | (6,457,677) |
LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | (255,716) | (644,308) |
NET LOSS ATTRIBUTABLE TO CHINA JO-JO DRUGSTORES, INC. | (8,119,862) | (5,813,369) |
OTHER COMPREHENSIVE LOSS | ||
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS | 1,377,761 | (1,068,540) |
COMPREHENSIVE LOSS | $ (6,997,817) | $ (7,526,217) |
WEIGHTED AVERAGE NUMBER OF SHARES: | ||
Basic (in Shares) | 40,780,762 | 32,816,567 |
Diluted (in Shares) | 40,780,762 | 32,816,567 |
LOSS PER SHARES: | ||
Basic (in Dollars per share) | $ (0.20) | $ (0.18) |
Diluted (in Dollars per share) | $ (0.20) | $ (0.18) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Common Stock | Additional paid-in capital | Retained Earnings Statutory reserves | Retained Earnings Accumulated deficit | Accumulated other comprehensive income/(loss) | Non-controlling interest | Total |
Balance at Mar. 31, 2019 | $ 28,937 | $ 44,905,664 | $ 1,309,109 | $ (30,587,468) | $ 2,508,964 | $ (1,194,039) | $ 16,971,167 |
Balance (in Shares) at Mar. 31, 2019 | 28,936,778 | ||||||
Stock based compensation | 34,560 | 34,560 | |||||
Stock based compensation (in Shares) | |||||||
Sale of stock and warrants | $ 4,000 | 9,269,077 | 9,273,077 | ||||
Sale of stock and warrants (in Shares) | 4,000,008 | ||||||
Net loss | (5,813,369) | (644,308) | (6,457,677) | ||||
Foreign currency translation loss | (1,068,540) | 25,542 | (1,042,998) | ||||
Balance at Mar. 31, 2020 | $ 32,937 | 54,209,301 | 1,309,109 | (36,400,837) | 1,440,424 | (1,812,805) | 18,778,129 |
Balance (in Shares) at Mar. 31, 2020 | 32,936,786 | ||||||
ECL | (421,675) | (421,675) | |||||
Balance at Apr. 1, 2020 | $ 32,937 | 54,209,301 | 1,309,109 | (36,822,512) | 1,440,424 | (1,812,805) | 18,356,454 |
Balance (in Shares) at Apr. 1, 2020 (in Shares) | 32,936,786 | ||||||
Exercise of warrants | $ 25 | 77,475 | 77,500 | ||||
Exercise of warrants (in Shares) | 25,000 | ||||||
Issuance of incentive common stocks award | $ 3,790 | 3,937,810 | 3,941,600 | ||||
Issuance of incentive common stocks award (in Shares) | 3,790,000 | ||||||
Acquisition of 10% of Jiuxin Medicine | (990,653) | 728,161 | (262,492) | ||||
Sale of stock and warrants | $ 5,000 | 9,282,100 | 9,287,100 | ||||
Sale of stock and warrants (in Shares) | 5,000,004 | ||||||
Net loss | (8,119,862) | (255,716) | (8,375,578) | ||||
Foreign currency translation loss | 1,377,761 | 1,377,761 | |||||
Balance at Mar. 31, 2021 | $ 41,752 | $ 66,516,033 | $ 1,309,109 | $ (44,942,374) | $ 2,818,185 | $ (1,340,360) | $ 24,402,345 |
Balance (in Shares) at Mar. 31, 2021 | 41,751,790 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ (8,375,578) | $ (6,457,677) |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Bad debt direct write-off and provision | (706,862) | 446,354 |
Depreciation and amortization | 1,750,890 | 2,082,817 |
Impairment of long lived assets | 228,506 | 628,192 |
Stock based compensation | 3,941,600 | 34,560 |
Change in fair value of purchase option derivative liability | (64,090) | (401,158) |
Change in operating assets: | ||
Accounts receivable, trade | (3,307,946) | (1,567,774) |
Notes receivable | 21,539 | 112,803 |
Inventories and biological assets | (3,615,017) | 979,935 |
Other receivables | 468,967 | (1,010,722) |
Advances to suppliers | 1,893,857 | 148,638 |
Long term deposit | 26,910 | 596,209 |
Other current assets | 1,004,448 | (1,278,833) |
Other noncurrent assets | 38,142 | 87,065 |
Change in operating liabilities: | ||
Accounts payable, trade | 6,380,115 | (317,755) |
Other payables and accrued liabilities | (183,111) | (967,751) |
Customer deposits | 368,690 | (22,963) |
Taxes payable | 66,648 | 115 |
Net cash used in operating activities | (62,292) | (6,907,945) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Disposal of financial assets available for sale | 75,973 | 14,356 |
Purchase of financial assets available for sale | ||
Acquisition of equipment and building | (126,766) | (656,297) |
Investment in a joint venture | (1,470,119) | (2,567,083) |
Purchases of intangible assets | (97,802) | (871,145) |
Additions to leasehold improvements | (379,611) | (756,444) |
Net cash used in investing activities | (1,998,325) | (4,836,613) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term bank loan | 738,315 | 1,435,620 |
Repayment of short-term bank loan | (1,476,630) | |
Proceeds from third parties loan | 7,178,100 | |
Repayment of third parties loan | (2,395,629) | (658,645) |
Proceeds from notes payable | 48,292,231 | 48,974,772 |
Repayment of notes payable | (51,295,776) | (46,896,917) |
Increase in financial liability | (73,832) | (7,178) |
Exercise of warrants | 77,500 | |
Proceeds from sale of stock and warrants | 9,287,100 | 9,273,077 |
Repayment of other payable-related parties | (73,426) | (285,123) |
Net cash provided by financing activities | 3,079,853 | 19,013,706 |
EFFECT OF EXCHANGE RATE ON CASH | 2,670,802 | (1,031,744) |
INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 3,690,038 | 6,237,404 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year | 30,982,606 | 24,745,202 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, end of year | 34,672,644 | 30,982,606 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 37,738 | 17,198 |
Cash paid for interest | $ 455,187 | $ 108,098 |
Description of Business and Org
Description of Business and Organization | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | China Jo-Jo Drugstores, Inc. (“Jo-Jo Drugstores” or the “Company”), was incorporated in Nevada on December 19, 2006, originally under the name “Kerrisdale Mining Corporation”. On September 24, 2009, the Company changed its name to “China Jo-Jo Drugstores, Inc.” in connection with a share exchange transaction as described below. On September 17, 2009, the Company completed a share exchange transaction with Renovation Investment (Hong Kong) Co., Ltd. (“Renovation”), whereby 7,900,000 shares of common stock were issued to the stockholders of Renovation in exchange for 100% of the capital stock of Renovation. The completion of the share exchange transaction resulted in a change of control. The share exchange transaction was accounted for as a reverse acquisition and recapitalization and, as a result, the consolidated financial statements of the Company (the legal acquirer) are, in substance, those of Renovation (the accounting acquirer), with the assets and liabilities, and revenues and expenses, of the Company being included effective from the date of the share exchange transaction. Renovation has no substantive operations of its own except for its holdings of Zhejiang Jiuxin Investment Management Co., Ltd. (“Jiuxin Management”), Zhejiang Shouantang Medical Technology Co., Ltd. (“Shouantang Technology”) and Hangzhou Jiutong Medical Technology Co., Ltd (“Jiutong Medical”), Hangzhou Jiuyi Medical Technology Co. Ltd. (“Jiuyi Technology”), its wholly-owned subsidiaries. The Company is an online and offline retailer and wholesale distributor of pharmaceutical and other healthcare products in the People’s Republic of China (“China” or the “PRC”). The Company’s offline retail business is comprised primarily of pharmacies, which are operated by Hangzhou Jiuzhou Grand Pharmacy Chain Co., Ltd. (“Jiuzhou Pharmacy”), a company that the Company controls through contractual arrangements. On March 31, 2017, Jiuxin Management established a subsidiary, Lin’An Jiuzhou Pharmacy Co., Ltd (“Lin’An Jiuzhou”) to operate drugstores in Lin’an City. On January 2021, Lin’An Jiuzhou was sold to two individuals for total proceeds of $129,586(RMB850,000). In the year ended March 31, 2021, in order to continue expanding and strengthening its local drugstore network, We acquired four single drugstores in fiscal 2021. the Company The acquired stores agreed to cease their stores ‘business and liquidate all of the stores ‘accounts after Jiuzhou Pharmacy acquired them. Jiuzhou Pharmacy then opened four new stores with their government insurance reimbursement certificates The Company’s offline retail business also includes four medical clinics through Hangzhou Jiuzhou Clinic of Integrated Traditional and Western Medicine (“Jiuzhou Clinic”) and Hangzhou Jiuzhou Medical and Public Health Service Co., Ltd. (“Jiuzhou Service”), both of which are also controlled by the Company through contractual arrangements. In May 2014, Shouantang Technology established Hangzhou Shouantang Bio-technology Co., Ltd. (“Shouantang Bio”). In May 2016, Shouantang Bio set up and held 49% of Hangzhou Kahamadi Bio-technology Co., Ltd. (“Kahamadi Bio”), a joint venture specializing in brand name development for nutritional supplements. In 2018, Jiuzhou Pharmacy invested a total of $741,540 (RMB5,100,000) in and held 51% of Zhejiang Jiuzhou Linjia Medical Investment and Management Co. Ltd (“Linjia Medical”), which has ceased its operation as of March 31, 2021. On March 29, 2019, Jiuzhou Pharmacy formed and currently holds 51% of the equity of Zhejiang AyiGe Medical Health Management Co., Ltd. (“Ayi Health”), which was intended to provide technical support such as IT and customer support to our health management business. However, as the health management business did not progress as planned, on November 19, 2020, Ayi Health was dissolved. The Company currently conducts its online retail pharmacy business through Jiuzhou Pharmacy, which holds the Company’s online pharmacy license. On September 10, 2015, Renovation set up Jiuyi Technology to provide additional technical support such as webpage development to our online pharmacy business. In November 2015, the technical support function was transferred back to Jiuzhou Pharmacy, which hosts our online pharmacy. The Company’s wholesale business is primarily conducted through Zhejiang Jiuxin Medicine Co., Ltd. (“Jiuxin Medicine”), which is licensed to distribute prescription and non-prescription pharmaceutical products throughout China. Jiuzhou Pharmacy acquired Jiuxin Medicine on August 25, 2011. On April 20, 2018, 10% of Jiuxin Medicine shares were sold to Hangzhou Kangzhou Biotech Co. Ltd. for a total proceeds of $79,625 (RMB 507,760). On January 29, 2021, The Company bought back the 10% of Jiuxin Medicine for a total price of $77,410(RMB507, 760). The Company’s herb farming business is conducted by Hangzhou Qianhong Agriculture Development Co., Ltd. (“Qianhong Agriculture”), a wholly-owned subsidiary of Jiuxin Management. Due to the complexity of the cultivation business, Qianhong Agriculture has not grown herbs in fiscal 2021. The accompanying consolidated financial statements reflect the activities of the Company and each of the following entities: Entity Name Background Ownership Renovation ● Incorporated in Hong Kong SAR on September 2, 2008 100% Jiuxin Management ● Established in the PRC on October 14, 2008 ● Deemed a wholly foreign owned enterprise (“WFOE”) under PRC law ● Registered capital of $14.5 million fully paid 100% Shouantang Technology ● Established in the PRC on July 16, 2010 by Renovation with registered capital of $20 million ● Registered capital requirement reduced by the SAIC to $11 million in July 2012 and is fully paid ● Deemed a WFOE under PRC law ● Invests and finances the working capital of Quannuo Technology 100% Qianhong Agriculture ● Established in the PRC on August 10, 2010 by Jiuxin Management ● Registered capital of RMB 10 million fully paid ● Carries out herb farming business 100% Jiuzhou Pharmacy (1) ● Established in the PRC on September 9, 2003 ● Registered capital of RMB 5 million fully paid ● Operates the “Jiuzhou Grand Pharmacy” stores in Hangzhou VIE by contractual arrangements (2) Jiuzhou Clinic (1) ● Established in the PRC as a general partnership on October 10, 2003 VIE by contractual arrangements (2) ● Operates a medical clinic adjacent to one of Jiuzhou Pharmacy’s stores Jiuzhou Service (1) ● Established in the PRC on November 2, 2005 ● Registered capital of RMB 500,000 fully paid ● Operates a medical clinic adjacent to one of Jiuzhou Pharmacy’s stores VIE by contractual arrangements (2) Jiuxin Medicine ● Established in PRC on December 31, 2003 ● Acquired by Jiuzhou Pharmacy in August 2011 ● Registered capital of RMB 10 million fully paid ● Carries out pharmaceutical distribution services VIE by contractual arrangements as a wholly-owned subsidiary of Jiuzhou Pharmacy (2) Entity Name Background Ownership Jiutong Medical ● Established in the PRC on December 20, 2011 by Renovation ● Registered capital of $2.6 million fully paid ● Currently has no operation 100% Shouantang Bio ● Established in the PRC in October, 2014 by Shouantang Technology ● 100% held by Shouantang Technology ● Registered capital of RMB 1,000,000 fully paid ● Sells nutritional supplements under its own brand name 100% Jiuyi Technology ● Established in the PRC on September 10, 2015 ● 100% held by Renovation ● Technical support to online pharmacy 100% Kahamadi Bio ● Established in the PRC in May 2016 ● 49% held by Shouantang Bio ● Registered capital of RMB 10 million ● Develop brand name for nutritional supplements 49% Linjia Medical ● Established in the PRC in September27, 2017 ● 51% held by Jiuzhou Pharmacy ● Registered capital of RMB 20 million ● Operates local clinics VIE by contractual arrangements as a controlled subsidiary of Jiuzhou Pharmacy (2) (1) Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service had been under the common control of Mr. Lei Liu and Ms. Li Qi, the three shareholders (the “Owners”) since their respective establishment dates, pursuant to agreements among the Owners to vote their interests in concert as memorialized in a voting rights agreement. Based on such voting agreement, the Company has determined that common control exists among these three companies. The Owners have operated these three companies in conjunction with one another since each company’s respective establishment date. Jiuxin Medicine is also deemed under the common control of the Owners as a subsidiary of Jiuzhou Pharmacy. (2) To comply with certain foreign ownership restrictions of pharmacy and medical clinic operators, Jiuxin Management entered into a series of contractual arrangements with Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service on August 1, 2009. These contractual arrangements are comprised of five agreements: a consulting services agreement, an operating agreement, an equity pledge agreement, a voting rights agreement and an option agreement. Because such agreements obligate Jiuxin Management to absorb all of the risks of loss from the activities of Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service, and enable the Company (through Jiuxin Management) to receive all of their expected residual returns, the Company accounts for each of the three companies (as well as subsidiaries of Jiuzhou Pharmacy) as a variable interest entity (“VIE”) under the accounting standards of the Financial Accounting Standards Board (“FASB”). Accordingly, the financial statements of Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service, as well as the subsidiaries under the control of Jiuzhou Pharmacy, Jiuxin Medicine and Shouantang Bio are consolidated into the financial statements of the Company. |
Liquidity
Liquidity | 12 Months Ended |
Mar. 31, 2021 | |
Liquidity [Abstract] | |
LIQUIDITY | Note 2 – LIQUIDITY The Company’s accounts have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”) on a going concern basis. The going concern basis assumes that assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed in the financial statements. The Company’s ability to continue as a going concern depends upon aligning its sources of funding (debt and equity) with its expenditure requirements and repayment of the short-term debts as and when they become due. The drug retail business is a highly competitive industry in the PRC. Several large drugstore chains and a variety of single stores operate in Hangzhou City and Zhejiang Province. In order to increase the Company’s competitive advantages and gain more local retail pharmacy market share, from fiscal year 2018, we opened fifty-nine new stores in Hangzhou. As a result, the Company incurred significant incremental expense related to rental, labor hiring and training, and marketing activities. As the retail pharmaceutical market becomes more competitive in recent years, a new store usually cannot make profit in its operation until a year later. In fact, the Company incurred significant expenses with limited incremental revenue in the period it opened new stores. At their openings, except for four stores, almost all of the new stores were without government insurance reimbursement certificates. In fact, it usually takes more than one year for a new store to apply for and obtain the local government insurance reimbursement certificate. As of March 31, 2021, the Company had obtained thirty-seven reimbursement certificates for stores opened in fiscal 2018 and thereafter. Historically in a mature store, more than half of the total revenue were generated from the individual customers’ government insurance program. The Company is in the process of actively applying certificates for all of its new stores. In the future, as more and more stores obtain certificates, the Company expect the income of its new stores to increase and eventually contribute positive operating cash flow. The Company’s principal sources of liquidity consist of existing cash, equity financing, and bank facilities from local banks as well as personal loans from its principal shareholders when necessary. On April 15, 2019, the Company closed a registered direct offering of 4,000,008 shares of common stock at $2.50 per share with gross proceeds of $10,000,020 from its effective shelf registration statement on Form S-3 pursuant to a Securities Purchase Agreement dated April 11, 2019 (the “2019 Securities Purchase Agreement”), by and among the Company and the investors named therein. On June 3, 2020, the Company closed a registered direct offering of 5,000,004 shares of common stock at $2.00 per share with gross proceeds of $10,000,008 from its effective shelf registration statement on Form S-3 pursuant to a Securities Purchase Agreement dated June 1, 2020 (the “2020 Securities Purchase Agreement”), by and among the Company and the investors named therein. The spread of COVID-19 has negatively impacted the local economy. In order to relieve the operation difficulty, the Government has continued its tax cut policy such as lower certain tax rate. On the other side, local banks are encouraged to provide low interest rate loans to local enterprises. The Company has a credit line agreement from a local bank as described in detail in Note 16. As of March 31, 2021, approximately $0.41 million of the aforementioned bank credit line was available for further borrowing. Additionally, Jiuzhou Pharmacy obtained a credit line of approximately $7,653,850 (RMB50,000,000) from Haihui Commercial Factoring (Tianjin) Co. Ltd. (“Haihui Commercial”) for three years beginning July 26, 2019. As of March 31, 2021, the full amount has been borrowed from Haihui Commercial. Any borrowing thereunder is guaranteed by a third-party guarantor company and secured by the Company’s assets pursuant to a collateral agreement, as well as personal guarantees of some of its principal shareholders. The Company has also obtained additional government insurance reimbursement certificates for its stores opened in the last two years. In a mature store, more than half of the revenue are generated by customers utilizing the government insurance program. With these certificates, mature stores are able to attract more customers who are eligible for the insurance program, and its sales may significantly increase in the next 12 months. Additionally, with the proceeds from the registered direct financing closed on April 15, 2019 and June 3, 2020, and the increased credit line, the Company believes it can support its operations for at least the next 12 months. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and consolidation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries and VIEs. All significant inter-company transactions and balances between the Company, its subsidiaries and VIEs are eliminated upon consolidation. Consolidation of variable interest entities In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. The Company has concluded, based on the contractual arrangements, that Jiuzhou Pharmacy (including its subsidiaries and controlled entities), Jiuzhou Clinic and Jiuzhou Service are each a VIE and that the Company’s wholly-owned subsidiary, Jiuxin Management, absorbs a majority of the risk of loss from the activities of these companies, thereby enabling the Company, through Jiuxin Management, to receive a majority of their respective expected residual returns. Control and common control are defined under the accounting standards as “an individual, enterprise, or immediate family members who hold more than 50 percent of the voting ownership interest of each entity.” Because the Owners collectively own 100% of Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service, and have agreed to vote their interests in concert since the establishment of each of these three companies as memorialized in the voting rights agreement, the Company believes that the Owners collectively have control and common control of the three companies. Accordingly, the Company believes that Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service were constructively held under common control by Jiuxin Management as of the time the Contractual Agreements were entered into, establishing Jiuxin Management as their primary beneficiary. Jiuxin Management, in turn, is owned by Renovation, which is owned by the Company. Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. The Company has significant cash deposits with suppliers in order to obtain and maintain inventory. The Company’s ability to obtain products and maintain inventory at existing and new locations is dependent upon its ability to post and maintain significant cash deposits with its suppliers. In the PRC, many vendors are unwilling to extend credit terms for product sales that require cash deposits to be made. The Company does not generally receive interest on any of its supplier deposits, and such deposits are subject to loss as a result of the creditworthiness or bankruptcy of the party who holds such funds, as well as the risk from illegal acts such as conversion, fraud, theft or dishonesty associated with the third party. If these circumstances were to arise, the Company would find it difficult or impossible, due to the unpredictability of legal proceedings in China, to recover all or a portion of the amount on deposit with its suppliers. Members of the current management team own controlling interests in the Company and are also the Owners of the VIEs in the PRC. The Company only controls the VIEs through contractual arrangements which obligate it to absorb the risk of loss and to receive the residual expected returns. As such, the controlling shareholders of the Company and the VIEs could cancel these agreements or permit them to expire at the end of the agreement terms, as a result of which the Company would not retain control of the VIEs. Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The significant estimates made in the preparation of the accompanying consolidated financial statements relate to the assessment of the carrying values of accounts receivable, related allowance for doubtful accounts, losses. Because of the use of estimates inherent in the financial reporting process, actual results could materially differ from those estimates. Fair value measurements The Company establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. The Company’s financial assets and liabilities, which include financial instruments as defined by FASB ASC 820, include cash, cash equivalents and restricted cash, financial assets available for sales, trade accounts receivable, notes receivables, other receivable, accounts payable, other payable, notes payable, long-term loan payable, employee deposits and warrants liability. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, notes receivables, and accounts payable are a reasonable approximation of fair value due to the short maturities of these instruments (Level 1). The carrying amount of notes payable approximates fair value based on borrowing rates of similar bank loan currently available to the Company (Level 2) (See Note 16). The carrying amount of Long-term loan payable approximates fair value based on borrowing rates of similar bank loan currently available to the Company (Level 2) (See Note 17). The carrying amount of the Company’s derivative instruments is recorded at fair value and is determined based on observable inputs that are corroborated by market data (Level 2) (See Note 21). The carrying amount of the financial assets available for sale is recorded at fair value and is determined based on unobservable inputs (Level 3) (See Note 4). The carrying amount of the employee deposits is recorded at fair value and is determined based on unobservable inputs (Level 3) (See Note 22). (amount in absolute value) Active Market Observable Unobservable Total Cash, cash equivalents and restricted cash $ 34,672,644 - - $ 34,672,644 Financial assets available for sale - - 91,472 91,472 Trade accounts receivable 13,423,728 - - 13,423,728 Notes receivable 39,392 - - 39,392 Other receivable 5,051,960 - - 5,051,960 Accounts payable 29,895,830 - - 29,895,830 Notes payable - 25,663,633 - 25,663,633 Other payable 2,940,000 - - 2,940,000 Long-term loan payable - 4,449,903 - 4,449,903 Total $ 86,023,554 30,113,536 91,472 $ 116,228,562 Revenue recognition Effective March 31, 2018, the Company began recognizing revenue under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective transition method. The impact of adopting the new revenue standard was not material to the Company’s consolidated financial statements. The core principle of this new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: ● Step 1: Identify the contract with the customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when the company satisfies a performance obligation In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606’s definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: ● The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct). ● The entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some sales taxes). The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate. The Company’s revenue is net of value added tax (“VAT”) collected on behalf of the PRC tax authorities with respect to the sales of merchandise. VAT collected from customers, net of VAT paid for purchases, is recorded as a liability in the accompanying consolidated balance sheets until it is paid to the relevant PRC tax authorities. Certain contract liabilities primarily represent the Company’s obligation to transfer additional goods or services to a customer for which the Company has received consideration, for example, membership points. The consideration received remains a contract liability until goods or services have been provided to the retail customer. The estimated amount based on accrued membership points was deducted from sales revenue. The following is a discussion of the Company’s revenue recognition policies by segment under the new revenue recognition accounting standard: Pharmacy retail sales The physical pharmacies sell prescription drugs, over-the-counter (“OTC”) drugs, traditional Chinese medicine, nutritional supplements, medical devices and sundry products. Revenue from sales of prescription medicine at drugstores is recognized when the prescription is filled and the customer picks up and pays for the prescription. Revenue from sales of other merchandise at drugstores is recognized at the point of sale, which is when a customer pays for and receives the merchandise. Usually the majority merchandise, such as prescription and OTC drugs, are not refundable after the customers leave the counter. Returns of other products, such as sundry products, are minimal. Sales of drugs reimbursed by the local government medical insurance agency and receivables from the agency are recognized when a customer pays for the drugs at a store. The Company based on historical experience, a reserve for potential losses from denial of reimbursement on certain unqualified drugs is made to the receivables from the government agency. Additionally, several onsite clinics adjacent to pharmacies provide limited medical services. Revenue from medical services is recognized after the service has been rendered to a customer. As revenue from medical services is minimal compared to pharmacy retail sales, it is included as part of the pharmacy retail sales. The Company deduct the membership rewards directly from the retail revenue, and present such amounts in net sales as opposed to the current reduction of operation expense classification. Membership rewards, usually membership points, are accumulated by customers based on their historical spending levels. The Company has determined that there is an additional performance obligation to those customers at the time of the initial transaction. The customers can then redeem these points against the prices of merchandises they purchase in the future. At the end of each period, unredeemed membership rewards are reflected as a contract liability. Online pharmacy sales The online pharmacy sells various health products except for prescription drugs. Revenue from online pharmacy sales is recognized when merchandise is shipped to customers. While most deliveries take one day, certain deliveries may take longer depending on a customer’s location. Any loss caused in a shipment will be reimbursed by the Company’s courier company. The Company’s sales policy allows for the return of certain merchandises without reason within seven days after a customer’s receipt of the applicable merchandise. Historically, sales returns seven days after merchandise receipts have been minimal. Wholesale Jiuxin Medicine purchases medicine in quantity and distributes products primarily to local pharmacies and medical products dealers. Revenue from sales of merchandise to non-retail customers is recognized when the merchandise is transferred to customers. Historically, sales returns have been minimal. The Company’s revenue is net of VAT collected on behalf of PRC tax authorities in respect to the sales of merchandise. VAT collected from customers, net of VAT paid for purchases, is recorded as a liability in the accompanying consolidated balance sheets until it is paid to the relevant PRC tax authorities. Disaggregation of Revenue The following table disaggregates the Company’s revenue by major source in each segment for the years ended March 31, 2021 and 2020: 2021 2020 For the year ended March 31 Retail drugstores Prescription drugs $ 27,162,968 $ 26,045,423 OTC drugs 30,524,057 31,532,248 Nutritional supplements 6,863,559 6,013,622 TCM 4,560,968 5,325,008 Sundry products 1,379,917 1,312,293 Medical devices 5,607,506 3,852,643 Total retail revenue $ 76,098,975 $ 74,081,237 Online pharmacy Prescription drugs $ 8,243,099 $ 1,447,469 OTC drugs 7,559,585 5,721,638 Nutritional supplements 956,013 742,809 TCM 295,410 266,638 Sundry products 1,967,174 2,082,601 Medical devices 3,464,638 3,280,060 Total online revenue $ 22,485,919 $ 13,541,215 Drug wholesale Prescription drugs $ 27,477,087 $ 24,857,708 OTC drugs 6,242,630 4,196,841 Nutritional supplements 151,657 205,881 TCM 218,758 314,769 Sundry products 28,377 43,854 Medical devices 431,230 86,184 Total wholesale revenue $ 34,549,739 $ 29,705,237 Total revenue $ 133,134,633 $ 117,327,689 Contract Balances Contract liabilities primarily represent the Company’s obligation to transfer additional goods or services to a customer for which the Company has received consideration, for example membership points and membership rewards. The consideration received remains a contract liability until goods or services have been provided to the retail customer. The following table provides information about receivables and contract liabilities from contracts with customers: March 31, March 31, Trade receivable(included in accounts receivable, net) $ 13,423,728 $ 9,770,656 Contract liabilities (included in accrued expenses) 1,470,217 1,106,982 Restricted cash The Company’s restricted cash consists of cash and long-term deposits in a bank as security for its notes payable. The Company has notes payable outstanding with the bank and is required to keep certain amounts on deposit that are subject to withdrawal restrictions. The notes payable are generally short term in nature due to their short maturity period of six to nine months; thus, restricted cash is classified as a current asset. The following represents a reconciliation of cash and cash equivalents in the Consolidated Condensed Balance Sheets to total cash, cash equivalents and restricted cash in the Consolidated Condensed Statements of Cash Flows as of March 31, 2021 and March 31, 2020: March 31, March 31, Cash and cash equivalents $ 22,045,628 $ 16,176,318 Restricted cash 12,627,016 14,806,288 Cash, cash equivalents and restricted cash $ 34,672,644 $ 30,982,606 Accounts receivable Accounts receivable represents the following: (1) amounts due from banks relating to retail sales that are paid or settled by the customers’ debit or credit cards, (2) amounts due from government social security bureaus and commercial health insurance programs relating to retail sales of drugs, prescription medicine, and medical services that are paid or settled by the customers’ medical insurance cards, (3) amounts due from non-bank third party payment instruments such as Alipay and certain e-commerce platforms and (4) amounts due from non-retail customers for sales of merchandise. Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts, as necessary. In the Company’s retail business, accounts receivable mainly consist of reimbursements due from the government insurance bureaus and commercial health insurance programs and are usually collected within two or three months. The Company directly writes off delinquent account balances, which it determines to be uncollectible after confirming with the appropriate bureau or program each month. Additionally, the Company also makes estimated reserves on related outstanding accounts receivable based on expected credit loss. In the Company’s online pharmacy business, accounts receivable primarily consist of amounts due from non-bank third party payment instruments such as Alipay and certain e-commerce platforms. To purchase pharmaceutical products from an e-commerce platforms such as Tmall, customers are required to submit payment to certain non-bank third party payment instruments, such as Alipay, which, in turn, reimburse the Company within seven days to a month. Except for customer returns of sold products, the receivables from these payments instruments are rarely uncollectible. In its wholesale business, the Company uses the expected credit loss method to estimate the allowance for anticipated uncollectible receivable balances. At each reporting period, the allowance balance is adjusted to reflect the amount computed as a result of the expected credit loss method. When facts subsequently become available to indicate that the allowance provided requires an adjustment, a corresponding adjustment is made to the allowance account as a change in estimate. Credit loss roll forward With the adoption of the current expected credit loss standard in 2020, the company estimates future expected losses on accounts receivable and other receivables over the remaining collection period of the instrument. The roll forward for the allowance for credit losses for the year end March 31, 2021, is as follows: For the year ended Account Other Total Allowance for credit losses as of March 31, 2020 $ 2,264,070 507,671 $ 2,771,741 Current expected credit losses opening balance impact on retained earning 189,295 232,380 421,675 Credit loss expense* 427,148 (246,587 ) 180,561 Ending allowance for credit losses $ 2,880,513 493,464 $ 3,373,977 * The amount represents the reserve made in the current year on estimated potential loss, but not includes the direct write-off of certain collectible from local government insurance agency. Advances to suppliers Advances to suppliers consist of prepayments to its vendors, such as pharmaceutical manufacturers and other distributors. Since the acquisition of Jiuxin Medicine, the Company have transferred almost all logistics services of its retail drugstores to Jiuxin Medicine. Jiuzhou Pharmacy only directly purchases certain non-medical products, such as certain nutritional supplements. As a result, almost all advances to suppliers are made by Jiuxin Medicine. Advances to suppliers for its drug wholesale business consist of prepayments to its vendors, such as pharmaceutical manufacturers and other distributors. The Company typically receive products from vendors within three to nine months after making prepayments. The Company continuously monitor delivery from, and payments to, its vendors while maintaining a provision for estimated credit losses based upon historical experience and any specific supplier issues, such as discontinuing of inventory supply, that have been identified. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first in first out (FIFO) method. The Company carries out physical inventory counts on a monthly basis at each store and warehouse location. Herbs that the Company farms are recorded at their cost, which includes direct costs such as seed selection, fertilizer, labor costs that are spent in growing herbs on the leased farmland, and indirect costs such as amortization of farmland development cost. All costs are accumulated until the time of harvest and then allocated to harvested herbs costs when the herbs are sold. The Company periodically reviews its inventory and records write-downs to inventories for shrinkage losses and damaged merchandise that are identified. The Company provides a reserve for estimated inventory obsolescence or excess quantities on hand equal to the difference, if any, between the cost of the inventory and its estimated realizable value. Farmland assets Herbs that the Company farms are recorded at their cost, which includes direct costs such as seed selection, fertilizer, and labor costs that are spent in growing herbs on the leased farmland, and indirect costs such as amortization of farmland development costs. Since April 2014, amortization of farmland development costs has been expensed instead of allocated into inventory due to unpredictable future market value of planted gingko trees. All related costs described in the above are accumulated until the time of harvest and then allocated to harvested herbs when they are sold. Property and equipment Property and equipment are stated at cost, net of accumulated depreciation or amortization. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets, taking into consideration the assets’ estimated residual value. Leasehold improvements are amortized over the shorter of lease term or remaining lease period of the underlying assets. Following are the estimated useful lives of the Company’s property and equipment: Estimated Leasehold improvements 3-10 years Motor vehicles 3-5 years Office equipment & furniture 3-5 years Buildings 35 years Maintenance, repairs and minor renewals are charged to expenses as incurred. Major additions and betterment to property and equipment are capitalized. Intangible assets Intangible assets are acquired individually or as part of a group of assets, and are initially recorded at their fair value. The cost of a group of assets acquired in a transaction is allocated to the individual assets based on their relative fair values. The estimated useful lives of the Company’s intangible assets are as follows: Estimated Land use rights 50 years Software 3 years license Infinite The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. Impairment of long lived assets The Company evaluates long lived tangible and intangible assets for impairment, whenever events or changes in circumstances indicate that the carrying value may not be recoverable from its estimated future cash flows. Recoverability is measured by comparing the assets’ net book value to the related projected undiscounted cash flows from these assets, considering a number of factors including past operating results, budgets, economic projections, market trends and product development cycles. If the net book value of the asset exceeds the related undiscounted cash flows, the asset is considered impaired, and a second test is performed to measure the amount of impairment loss. In the year ended March 31, 2020, the Company evaluated the licenses of insurance applicable drugstores acquired in the past based on their discounted positive cash value. Due to the stricter government insurance policy in fiscal year 2021, the value of these licenses has declined. As a result, The Company recorded an impairment of $628,192 as of March 31, 2020. In the year ended March 31, 2021, we evaluated the use rights of the forest land, which is currently used to cultivate Ginkgo trees. The forest rights certificate from the local village extends the life of the lease to January 31, 2060. Based on the evaluation of the forest land use rights, the Company recorded an impairment of $228,506. Notes payable During the normal course of business, the Company regularly issues bank acceptance bills as a payment method to settle outstanding accounts payables with various material suppliers. The Company records such bank acceptance bills as notes payable. Such notes payable are generally short term in nature due to their short maturity period of six to nine months. Income taxes The Company follows FASB ASC Topic 740, “Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The accounting standards clarify the accounting and disclosure requirements for uncertain tax positions and prescribe a recognition threshold and measurement attribute for recognition and measurement of a tax position taken or expected to be taken in a tax return. The accounting standards also provide guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures, and transition. No significant penalties, uncertain tax provisions or interest relating to income taxes were incurred during the periods ended March 31, 2021 and 2020. Value added tax Sales revenue represents the invoiced value of goods, net of VAT. All of the Company’s products are sold in the PRC and are subject to a VAT on the gross sales price. The VAT rates range up to 17%, depending on the type of products sold. The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing or acquiring its finished products. The Company recorded a VAT payable net of payments in the accompanying financial statements. Stock based compensation The Company follows the provisions of FASB ASC 718, “Compensation — Stock Compensation,” which establishes accounting standards for non-employee and employee stock-based awards. Under the provisions of FASB ASC 718, the fair value of stock issued is used to measure the fair value of services received as the Company believes such approach is a more reliable method of measuring the fair value of the services. For non-employee stock-based awards, fair value is measured based on the value of the Company’s common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance is complete. The fair value of the equity instrument is calculated and then recognized as compensation expense over the requisite performance period. For employee stock-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight–line basis over the requisite service period for the entire award. Advertising and promotion costs Advertising and promotion costs are expensed as incurred and amounted to $309,446 and $262,553 for the year ended March 31, 2021 and 2020, respectively. Such costs consist primarily of print and promotional materials such as flyers to local communities. Foreign currency translation The Company uses the United States dollar (“U.S. dollars” or “USD”) for financial reporting purposes. The Company’s subsidiaries and VIEs maintain their books and records in their functional currency the Renminbi (“RMB”), the currency of the PRC. In general, for consolidation purposes, the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the reporting period. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive income. The balance sheet amounts, with the exception of equity, at March 31, 2021 and 2020 were translated at 1 RMB to 0.1525 USD and at 1 RMB to 0.1410 USD, respectively. The average translation rates applied to income and cash flow statement amounts for years ended March 31, 2021 and 2020 were at 1 RMB to 0.1477 USD and at 1 RMB to 0.1436 USD, respectively. Concentrations and credit risk Certain financial instruments, which subject the Company to concentration of credit risk, consist of cash and restricted cash. The Company has cash balances at financial institutions located in Hong Kong and PRC. Balances at financial institutions in Hong Kong may, from time to time, exceed Hong Kong Deposit Protection Board’s insured limits. Since March 31, 2015, balances at financial institutions and state-owned banks within the PRC are covered by insurance up to RMB 500,000 (USD 79,600) per bank. As of March 31, 2021 and March 31, 2020, the Company had deposits totaling $34,602,819 and $30,974,714 that were covered by such limited insurance, respectively. Any balance over RMB 500,000 (USD 79,600) per bank in PRC will not be covered. To date, the Company has not experienced any losses in such accounts. For the fiscal year ended March 31, 2021, two vendors collectively accounted for 42.9% of the Company’s total purchases and two suppliers accounted |
Financial Assets Available For
Financial Assets Available For Sale | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
FINANCIAL ASSETS AVAILABLE FOR SALE | NOTE 4 – FINANCIAL ASSETS AVAILABLE FOR SALE As of March 31, 2021 and March 31, 2020, financial assets available for sale amounted to $91,472 (RMB 600,000) and $157,159 (RMB 1,114,500), respectively. The Company has invested in Inner Mongolia Songlu Pharmaceutical Co. (“Songlu Pharmaceutical”). As of March 31, 2021, the fair value of the investment is $91,472 (RMB600,000), which accounts for 0.5% shares of Songlu Pharmaceutical. |
Trade Accounts Receivable
Trade Accounts Receivable | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
TRADE ACCOUNTS RECEIVABLE | NOTE 5 – TRADE ACCOUNTS RECEIVABLE Trade accounts receivable consisted of the following: March 31, March 31, Accounts receivable $ 16,304,240 $ 12,034,726 Less: allowance for doubtful accounts (2,880,513 ) (2,264,070 ) Trade accounts receivable, net $ 13,423,728 $ 9,770,656 For the years ended March 31, 2021 and 2020, $118,349 and $212,338 in accounts receivable were directly written off, respectively. As of March 31, 2021, $509,109 were pledged as collateral for borrowings from financial institutions. As of March 31, 2020, $627,055 were pledged as collateral for borrowings from financial institutions. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Mar. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
OTHER CURRENT ASSETS | Note 6 – OTHER CURRENT ASSETS Other current assets consisted of the following: March 31, March 31, Prepaid rental expenses (1) $ 1,441,879 $ 1,364,975 Prepaid and other current assets 118,240 163,565 Total $ 1,560,119 $ 1,528,540 (1) The balance as of March 31, 2021 and March 31, 2020 includes short-term refundable rental security deposits. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Note 7 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following: March 31, March 31, Building $ 6,357,748 $ 5,880,627 Leasehold improvements 9,595,801 9,209,136 Farmland development cost 1,823,257 1,686,430 Office equipment and furniture 6,006,534 5,632,955 Motor vehicles 376,798 504,327 Total 24,160,138 22,913,475 Less: Accumulated depreciation (15,211,112 ) (13,059,852 ) Impairment* (2,399,991 ) (2,219,883 ) Property and equipment, net $ 6,549,035 $ 7,633,740 * The variance of impairment from from March 31, 2020 to March 31, 2021 is solely caused by exchange rate variance. Total depreciation expense for property and equipment was $1,516,257 and $1,828,514 for the year ended March 31, 2021 and 2020, respectively. There were no fixed assets impaired in the years ended March 31, 2021 and December 31, 2020. |
Long-Term Investment
Long-Term Investment | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM INVESTMENT | Note 8 – LONG-TERM INVESTMENT Long-term investment consists of the following: March 31, March 31, Kahamadi Bio (1) $ - $ 6,217 Zhetong Medical (2) 3,981,986 2,538,234 Advance to suppliers, net $ 3,981,986 $ 2,544,451 (1) It represents 49% investment in Kahamadi Bio. The investment is recorded using the equity method. Kahamadi Bio suffered loss of $6,217 in the year ended March 31, 2021. (2) It represents 39% investment in Zhejiang Zhetong Medical Co., Ltd. (“Zhetong Medical”). Zhetong Medical was established in March 2020 to target potential acquisitions or to cooperate with local pharmacies. By attracting more funds from local investors, the Company expects to continue growing its local network in the future. In the year ended March 31, 2021, Jiuzhou Pharmacy injected funds of approximately $1,443,752 into Zhetong Medical. The investment is recorded based on equity method. |
Advances to Suppliers
Advances to Suppliers | 12 Months Ended |
Mar. 31, 2021 | |
Advances To Suppliers [Abstract] | |
ADVANCES TO SUPPLIERS | Note 9 – ADVANCES TO SUPPLIERS Advances to suppliers consist of deposits, with or advances to, outside vendors for future inventory purchases. Most of the Company’s suppliers require a certain amount of money to be deposited with them as a guarantee that the Company will receive its purchase on a timely basis. This amount is refundable and bears no interest. As of March 31, 2021 and March 31, 2020, advance to suppliers consist of the following: March 31, March 31, Advance to suppliers $ 421,963 $ 2,198,863 Less: reserve for vendor non-performance on advances - (1,024,063 ) Advance to suppliers, net $ 421,963 $ 1,174,800 |
Inventory
Inventory | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORY | Note 10 – INVENTORY Inventory consisted of finished goods, valued at $16,972,965 and $12,247,004 as of March 31, 2021 and March 31, 2020, respectively. The Company constantly monitors its potential obsolete products and is allowed to return products close to their expiration date to its suppliers. Any loss on damaged items is immaterial and will be recognized immediately. As a result, no reserves were made for inventory as of March 31, 2021 and March 31, 2020. |
Farmland Assets
Farmland Assets | 12 Months Ended |
Mar. 31, 2021 | |
Farmland Assets [Abstract] | |
FARMLAND ASSETS | Note 11 – FARMLAND ASSETS Farmland assets consist of ginkgo trees planted in 2012 and expected to be harvested and sold in several years. As of March 31, 2021 and March 31, 2020, farmland assets are valued as follows: March 31, March 31, 2021 2020 Farmland assets $ 2,387,136 $ 2,177,606 Less: Impairment* (1,551,709 ) (1,435,259 ) Farmland assets, net $ 835,427 $ 742,347 * The difference between the recorded impairment loss as of December 31, 2020 and March 31, 2020 is primarily due to the exchange rate variance over years. There is no leasehold impairment expense in fiscal 2020 and 2021. |
Long Term Deposits, Landlords
Long Term Deposits, Landlords | 12 Months Ended |
Mar. 31, 2021 | |
Long Term Deposits [Abstract] | |
LONG TERM DEPOSITS, LANDLORDS | Note 12 – LONG TERM DEPOSITS, LANDLORDS As of March 31, 2021 and March 31, 2020, long term deposits amounted to $1,546,764 and $1,456,384, respectively. Long term deposits are sums deposited with, or advanced to, landlords for the purpose of securing retail store leases that the Company does not anticipate applying or being returned within the next twelve months. Most of the Company’s landlords require a minimum payment of nine months’ rent, paid up front, plus additional deposits. |
Other Noncurrent Assets
Other Noncurrent Assets | 12 Months Ended |
Mar. 31, 2021 | |
Other Noncurrent Assets [Abstract] | |
OTHER NONCURRENT ASSETS | Note 13 – OTHER NONCURRENT ASSETS Other noncurrent assets consisted of the following: March 31, March 31, Forest land use rights* $ 785,569 $ 994,558 Others 70,822 52,205 Total $ 856,391 $ 1,046,763 * The prepayment for lease of forest land use rights is made to a local government in connection with an operating land lease agreement. The land is currently used to cultivate Ginkgo trees. The forest rights certificate from the local village extends the life of the lease to January 31, 2060. In the year ended March 31, 2021, based on the evaluation of the forest land use rights, the Company recorded an impairment of $228,506. The amortization of the prepayment for the lease of land use right was approximately $52,073 and $26,975 for the years ended March 31, 2021 and 2020, respectively. The Company’s amortizations of the prepayment for lease of land use right for the next five years and thereafter are as follows: Years ending March 31, Amount 2022 $ 40,046 2023 40,046 2024 40,046 2025 40,046 2026 40,046 Thereafter 585,339 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of condensed balance sheet related to leases | Note 14 – Leases The Company leases most of its retail stores and corporate offices under operating leases, typically with initial terms of 3 to 10 years. Usually within one to three months prior to the expiration date of a lease, the Company is required to notify the lessor and has a priority to continue renting the lease property if a lessor intends to lease property. The lease itself does not have restriction or covenants. If both parties agree to continue, a new lease contract with new lease terms has to been signed by both parties. Usually the rent may increase year by year based on the lease contract. Sublease is typically not allowed. Any damage, if made by the lessee, to the property and equipment within the property has to been fixed or reimbursed by the lessee. The Company does not have any leases entered into but which have not yet commenced. The net lease cost for the year ended March 31, 2021 is $6,340,671. The Company does not have finance lease according to the definition of ASU 2016-02, Leases Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 6,340,671 Right-of-use assets obtained in exchange for lease obligations: Operating leases - Supplemental balance sheet information related to leases as of March 31, 2021 is as follows: Operating leases: Operating lease right-of-use assets $ 16,778,729 Current portion of operating lease liabilities $ 788,171 Long-term operating lease liabilities 15,118,083 Total operating lease liabilities $ 15,906,254 Weighted average remaining lease term Operating leases 2.5 Weighted average discount rate Operating leases 4.19 % The following table summarizes the maturity of lease liabilities under operating leases as of March 31, 2021: Operating For the year ending March 31, Leases 2021 $ 796,610 2021 5,397,928 2022 3,837,359 2023 2,788,609 2024 1,697,653 Thereafter 2,190,613 Total lease payments 16,708,772 Less: imputed interest (802,518 ) Total lease liabilities $ 15,906,254 |
Intangible assets
Intangible assets | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | Note 15 – INTANGIBLE ASSETS Net intangible assets consisted of the following at: March 31, March 31, License (1) $ 2,466,684 $ 2,220,512 Software (2) 1,205,857 1,083,024 Land use rights (3) 1,486,663 1,375,095 Total intangible assets 5,159,204 4,678,631 Less: accumulated amortization (964,046 ) (667,633 ) Less: impairment (4) (667,102 ) (617,038 ) Intangible assets, net $ 3,528,056 $ 3,393,960 Amortization expense of intangibles amounted to $296,414 and $254,303 for the years ended March 31, 2021 and 2020, respectively. (1) This represents the fair value of the licenses of insurance applicable drugstores acquired from a variety of drugstores such as Sanhao Pharmacy and several local stores. The licenses allow patients to pay by using insurance cards at stores. The stores are reimbursed from the Human Resource and Social Security Department of Hangzhou City. In 2014, the Company acquired Sanhao Pharmacy, a drugstore chain. In September 2017, the Company acquired several new stores for the purpose of the Municipal Social Medical Reimbursement Qualification Certificates. On January 9, 2020, the Company acquired a local drugstore chain. The acquired drugstores ceased their stores’ business and liquidate all of the stores’ accounts after Jiuzhou Pharmacy acquired them. In March 2020, the drugstore chain has dissolved and its certificates were transferred to new stores opened at the same time. In the year ended March 31, 2021, the Company acquired four single drugstores which have been liquidated after the acquisition. Jiuzhou Pharmacy then opened four new stores with the four licenses of local government medical insurance reimbursement program. (2) They are primarily the SAP ERP system, the Internet Clinic Diagnosis Terminal system and the Chronic Disease Management system. In 2017, we have installed a leading ERP system, SAP from Germany. SAP is a well-known management system used by many fortune 500 companies. It is being amortized over three years since its installation. In 2020, we have installed an internet Clinic Diagnosis System used to strengthen our ability to perform online diagnosis which may increase more customer spending and a Chronic Disease Management System used to better manage and monitor our members’ health. As of March 31, 2021, the SAP system has a net value of $766,748 (RMB5,029,372), the internet Clinic Diagnosis System has a net value of approximately $409,904 (RMB 2,688,709), the Chronic Disease Management System has a net value of approximately $17,742 (RMB116,379). (3) In July 2013, the Company purchased the land use rights of a plot of land in Lin’an, Hangzhou, intended for the establishment of an herb processing plant in the future. However, as the Company’s farming business in Lin’an has not grown, the Company does not expect completion of the plant in the near future. (4) In the year ended March 31, 2020, the Company evaluated the licenses of insurance applicable drugstores acquired in the past based on the discounted positive cash value. Due to the stricter government insurance policy in the fourth quarter of fiscal year 2020, the value of these licenses has declined. As a result, the Company recorded an impairment in the fourth quarter of fiscal 2020. In the year ended March 31, 2020, we evaluated the use rights of the forest land, which is currently used to cultivate Ginkgo trees. The forest rights certificate from the local village extends the life of the lease to January 31, 2060. Based on the evaluation of the forest land use rights, the Company recorded an impairment of $228,506. |
Notes Payable
Notes Payable | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | Note 16 – NOTES PAYABLE The Company has credit facilities with Hangzhou United Bank (“HUB”), Zhejiang Tailong Commercial Bank (“ZTCB”), Bank of Hangzhou (“BOH”), and China Merchant Bank (“CMB”) that provided working capital in the form of the following bank acceptance notes. Usually, the Company applies to issue a note, which is guaranteed by the bank, to its supplier to pay off its debt in a future date. Before the payment date, the bank will ask the Company to inject cash into the bank. On the payment date, the bank will pay the amount to whoever legally holds the note. As of at March 31, 2021 and March 31, 2020, the balances of notes payable are as follow: Origination Maturity March 31, March 31, Beneficiary (1) Endorser date date 2021 2020 Jiuzhou Pharmacy HUB 10/09/19 04/09/20 $ - $ 3,478,259 Jiuzhou Pharmacy HUB 11/06/19 05/06/20 - 164,582 Jiuzhou Pharmacy HUB 12/05/19 06/05/20 - 3,106,474 Jiuzhou Pharmacy HUB 12/31/19 06/30/20 - 2,289,308 Jiuzhou Pharmacy HUB 01/06/20 07/06/20 - 129,457 Jiuzhou Pharmacy HUB 02/19/20 08/19/20 - 5,105,096 Jiuzhou Pharmacy HUB 03/10/20 09/10/20 - 5,324,871 Jiuxin Medicine HUB 12/26/19 06/26/20 - 1,371,992 Jiuxin Medicine HUB 12/31/19 06/30/20 - 3,943,776 Jiuxin Medicine HUB 03/31/20 09/30/20 - 1,692,156 Jiuzhou Pharmacy HUB 10/10/20 04/10/21 820,847 - Jiuzhou Pharmacy HUB 11/09/20 05/09/21 5,715,776 - Jiuzhou Pharmacy HUB 12/17/20 06/17/21 1,233,353 - Jiuzhou Pharmacy HUB 12/25/20 06/25/21 990,951 - Jiuzhou Pharmacy HUB 12/30/20 06/30/21 1,300,222 - Jiuzhou Pharmacy HUB 02/05/21 08/05/21 3,075,672 - Jiuzhou Pharmacy HUB 03/12/21 09/12/21 5,437,655 - Jiuxin Medicine HUB 12/07/20 06/07/21 2,419,382 - Jiuxin Medicine HUB 12/30/20 06/30/21 4,503,905 - Jiuxin Medicine HUB 03/12/21 09/12/21 165,870 - Total $ 25,663,633 $ 25,951,673 (1) As of March 31, 2021, the Company had $25,663,633 (RMB 168,336,897) of notes payable from HUB. The Company is required to hold restricted cash in the amount of $12,501,401 (RMB 82,001,136) with HUB as collateral against these bank notes. Included in the restricted cash is a total of $6,860,430 three-year deposit (RMB 45,000,000) deposited into HUB as a collateral for current and future notes payable from HUB. As of March 31, 2020, the Company had $26,605,971 (RMB188,677,437) of notes payable from HUB. The Company is required to hold restricted cash in the amount of $14,596,179 (RMB 103,509,456) with HUB as collateral against these bank notes. Included in the restricted cash is a total of $8,763,958 three-year deposit (RMB 62,150,000) deposited into HUB as a collateral for current and future notes payable from HUB. As of March 31, 2021, the Company had a credit line of approximately $13.57 million in the aggregate from HUB. By putting up a three-year deposit of $6.86 million and the restricted cash of $5.64 million deposited in the banks, the total credit line was $26.07 million. As of March 31, 2021, the Company had approximately $25.66 million of bank notes payable and approximately $0.41 million bank credit line was still available for further borrowing. The bank notes are secured by three shops of Jiuzhou Pharmacy and guaranteed by the Company’s major shareholders. |
Loan Payable
Loan Payable | 12 Months Ended |
Mar. 31, 2021 | |
Loan Payable [Abstract] | |
Loan Payable | Note 17 – Loan Payable On August 2, 2019 and December 11, 2019, the Company borrowed $717,810 and $6,460,290 from Haihui Commercial Factoring (Tianjin) Co. Ltd. (“Haihui Commercial”), respectively. After deducting processing fee and deposits which are refundable at the end of loan period, the Company received $617,317 and $5,878,864 respectively. The Company is required to pledge accounts receivable of three drugstores to Haihui Commercial. As of March 31, 2021, the remaining loan balance is $4,449,903. The Company is scheduled to make monthly repayments, among which $2,557,634 is due within a year. The Company has an option to pay off the debts earlier than the repayment schedule upon approval from Haihui Commercial. |
Taxes
Taxes | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
TAXES | Note 18 – TAXES Income tax Income tax expense includes a provision for federal, state and foreign taxes based on the annual estimated effective tax rate applicable to the Company and its subsidiaries, adjusted for items which are considered discrete to the period. The effective tax rate based on forecasted annual results for the FYE 2021 is (1.1) %. The effective tax rates on income before income taxes for the year ended March 31, 2021 was (0.4)%. The (0.4)% rate adjustments for the year ended March 31, 2021 represent expenses that primarily include stock option expenses and legal, accounting and other expenses incurred by the Company that are not deductible for PRC income tax. The effective tax rate is based on forecasted annual results and these amounts may fluctuate significantly through the rest of the year as a result of the unpredictable impact of COVID-19 on the Company’s operating activities. The effective tax rate on income before income taxes for the year ended March 31, 2020 was (0.3) %. The (0.3) % rate adjustments for the year ended March 31, 2020 represent expenses that primarily include stock option expenses and legal, accounting and other expenses incurred by the Company that are not deductible for PRC income tax. The effective tax rate is based on forecasted annual results and these amounts may fluctuate significantly through the rest of the year as a result of the unpredictable impact of COVID-19 on its operating activities. A reconciliation of the income tax provision at the federal statutory rate and the effective rate is as follows: For the year ended 2021 2020 U.S. Statutory rates 21.0 % 21.0 % Foreign income not recognized in the U.S. (21.0 ) (21.0 ) China income taxes 25.0 25.0 Change in valuation allowance (25.0 ) (25.0 ) Non-deductible expenses-permanent difference (0.4 ) (0.3 ) Effective tax rate (0.4 )% (0.3 )% The Company has recorded $0 unrecognized benefit as of December 31, 2021. On the information currently available, the Company does not anticipate a significant increase or decrease to its unrecognized benefit within the next 12 months |
Postretirement Benefits
Postretirement Benefits | 12 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
POSTRETIREMENT BENEFITS | Note 19 – POSTRETIREMENT BENEFITS Regulations in the PRC require the Company to contribute to a defined contribution retirement plan for all permanent employees. The contribution for each employee is based on a percentage of the employee’s current compensation as required by the local government. The Company contributed $1,076,811 and $1,341,167 in employment benefits and pension for the years ended March 31, 2021 and 2020, respectively. |
Related Party Transactions and
Related Party Transactions and Arrangements | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND ARRANGEMENTS | Note 20 – RELATED PARTY TRANSACTIONS AND ARRANGEMENTS Amounts payable to related parties are summarized as follows: March 31, March 31, Due to a director and CEO (1) $ 445,305 $ 490,218 (1) Due to foreign exchange restrictions, the Company’s director and CEO, Mr. Lei Liu personally lent U.S. dollars to the Company to facilitate its payments of expenses in the United States. The Company leases a retail space from Mr. Lei Liu. The lease expires in September 2021. Rent expenses totaled $27,342 and $26,582 for the twelve months ended March 31, 2021 and 2020, respectively. The amounts owed under the lease for the twelve months ended December 31, 2021 and 2020 were not paid to Mr. Liu as of March 31, 2020. On April 28, 2018, 10% of Jiuxin Medicine was sold to Hangzhou Kangzhou Biotech Co. Ltd. for a total proceeds of approximately $75,643 (RMB507, 760). On January 29, 2021, The Company bought back the 10% of Jiuxin Medicine for a total price of $77,410(RMB507,760). Mr. Lei Liu owns 51% of Hangzhou Kangzhou Biotech Co. Ltd. |
Warrants
Warrants | 12 Months Ended |
Mar. 31, 2021 | |
Warrants Disclosure [Abstract] | |
WARRANTS | Note 21 – WARRANTS In connection with the registered direct offering closed on July 19, 2015, the Company issued to an investor a warrant to purchase up to 600,000 shares of common stock at an exercise price of $3.10 per share. The warrant became exercisable on January 19, 2016 and has expired on January 18, 2021. In connection with the offering, the Company also issued a warrant to its placement agent of this offering, pursuant to which the agent may purchase up to 6% of the aggregate number of shares of common stock sold in the offering, i.e. 72,000 shares. Such warrant has the same terms as the warrant issued to investor in the offering. The fair value of the warrants issued to purchase 672,000 shares as described above was estimated by using the binominal pricing model with the following assumptions: Common Stock Common Stock March 31, March 31, Stock price $ - $ 1.77 Exercise price $ - $ 3.10 Annual dividend yield - % - % Expected term (years) - 0.81 Risk-free interest rate - % 0.71 % Expected volatility - % 62.08 % (1) As of March 31, 2021, the warrants had been expired and had not been exercised. Upon evaluation, the warrants meet the definition of a derivative under FASB ASC 815, as the Company cannot avoid a net cash settlement under certain circumstances. Accordingly, the fair value of the warrants was classified as a liability of $64,090 as of March 31, 2020. For the year ended March 31, 2021, the Company recognized a gain of $64,090 for the investor warrant and placement agent warrant, as a result of warrants expiration, respectively. As a result, no warrant liability is carried on the consolidated balance sheets for the investor warrant and placement agent warrant, collectively, as of March 31, 2021. |
Employee Deposits
Employee Deposits | 12 Months Ended |
Mar. 31, 2021 | |
Employee Deposits Disclosure [Abstract] | |
Employee Deposits | Note 22 – Employee Deposits To encourage the operating team, which consists of doctors and nurses, to devote their efforts to run clinics, Linjia Medical allows them to put deposits in the clinic where doctors and nurses work, and take shares in any profit of the clinic. The principal amounts of these deposits are refundable in the event the doctors and nurses leave the clinic. As of March 31, 2021, we have closed all clinics under Linjia Medical and ceased its oeration. In order to properly reflect Linjia Medical’s liabilities, the Company reclassified the deposit of $0 (RMB0) and $70,507 (RMB500, 000) as financial liability as of March 31, 2021 and March 31, 2020. |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDER'S EQUITY | Note 23 – STOCKHOLDER’S EQUITY Common stock On April 15, 2019, the Company closed a registered direct offering of 4,000,008 shares of common stock at $2.50 per share with gross proceeds of $10,000,020 from its effective shelf registration statement. On June 1, 2020, an investor exercised 25,000 warrants at the price of $3.10 per share in cash. The Company issued 25,000 shares of common stock as a result. On June 3, 2020, the Company closed a registered direct offering of 5,000,004 shares of common stock at $2.00 per share with gross proceeds of $10,000,008 from its effective shelf registration statement. Stock warrants Concurrent with the registered direct offering of common stock that closed on April 15, 2019, the Company issued to several investors in a private placement warrants to purchase up to 3,000,006 shares of common stock. In connection with the offering, the Company also issued a warrant to its placement agent of this offering, pursuant to which the agent may purchase up to 6% of the aggregate number of shares of common stock sold in the offering, i.e. 240,000 shares at an exercise price of $3.125 per share. The warrant became exercisable on October 11, 2019 and will expire on April 11, 2024. Concurrent with the registered direct offering of common stock that closed on June 3, 2020, the Company issued to several investors in a private placement warrants to purchase up to 3,750,003 shares of common stock. In connection with the offering, the Company also issued warrants to its placement agent of this offering, pursuant to which the agent may purchase up to 6.5% of the aggregate number of shares of common stock sold in the offering, i.e. 300,000 shares at an exercise price of $2.57 per share. The warrant becomes exercisable on December 2, 2020 and will expire on June 2, 2025. Upon evaluation, both the warrants issued in April 2019 and June 2020 meet the definition of an equity transaction under FASBASC 815. Accordingly, the fair value of the warrants is recorded as a part of additional paid-in capital. Stock-based compensation The Company accounts for share-based payment awards granted to employees and directors by recording compensation expense based on estimated fair values. The Company estimates the fair value of share-based payment awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s consolidated statements of operations. Share-based awards are attributed to expenses using the straight-line method over the vesting period. The Company determines the value of each option award that contains a market condition using a Monte Carlo Simulation valuation model, while all other option awards are valued using the Black-Scholes valuation model as permitted under FASB ASC 718 “Compensation - Stock Compensation.” The assumptions used in calculating the fair value of share-based payment awards represent the Company’s best estimates. The Company’s estimates of the fair values of stock options granted and the resulting amounts of share-based compensation recognized may be impacted by certain variables including stock price volatility, employee stock option exercise behaviors, additional stock option modifications, estimates of forfeitures, and the related income tax impact. On March 30, 2018, the Company granted a total of 3,947,100 shares of restricted common stock to its key employees in its retail drugstores and online pharmacy under the Company’s 2010 Equity Incentive Plan, as amended (the “Plan”). The stock awards vested on the grant date. On June 28, 2018, the compensation committee of the Company canceled 225,000 shares granted to the CEO in order to conform aggregate issuances to the 675,000 share limitation set forth in the Plan. The Tax Cuts and Jobs Act of 2017 removed the 162(m) qualified performance based compensation exemption to the $1 million cap on deductions for compensation to covered executives. Section 1.3.2 was in the Plan to permit grants under the Plan to fit within that exemption. As that exemption no longer applies for grants made in 2018 or thereafter, the Plan has been amended to remove the provisions intended to comply with that exemption, including the one in Section 1.3.2 of the Plan. All $5,328,585 of such expense has been recorded as a service compensation expense in the year ended March 31, 2018. On December 31, 2020, the Company granted a total of 3,790,000 shares of restricted common stock to its key employees in its retail drugstores and online pharmacy under the Company’s 2010 Equity Incentive Plan, as amended (the “Plan”). The stock awards vested on the grant date. All $3,941,600 of such expense has been recorded as a service compensation expense in the year ended March 31, 2021. Stock option On November 18, 2014, the Company granted a total of 967,000 shares of stock options under the Plan to a group of a total of 46 grantees including directors, officers and employees. The exercise price of the stock option is $2.50. The option vests on November 18, 2017, provided that the grantees are still employed by the Company on such a date. The options will be exercisable for five years from the vesting date, or November 18, 2017 until November 17, 2022. For the years ended March 31, 2021 and 2020, none was recorded as compensation expense. As of March 31, 2021, all compensation costs related to stock option compensation arrangements granted have been recognized. Statutory reserves Statutory reserves represent restricted retained earnings. Based on their legal formation, the Company is required to set aside 10% of its net income as reported in their statutory accounts on an annual basis to the Statutory Surplus Reserve Fund (the “Reserve Fund”). Once the total amount set aside in the Reserve Fund reaches 50% of the entity’s registered capital, further appropriations become discretionary. The Reserve Fund can be used to increase the entity’s registered capital upon approval by relevant government authorities or eliminate its future losses under PRC GAAP upon a resolution by its board of directors. The Reserve Fund is not distributable to shareholders, as cash dividends or otherwise, except in the event of liquidation. Appropriations to the Reserve Fund are accounted for as a transfer from unrestricted earnings to statutory reserves. During the years ended March 31, 2021 and 2020, the Company did not make appropriations to statutory reserves. There are no legal requirements in the PRC to fund the Reserve Fund by transfer of cash to any restricted accounts, and the Company does not do so. |
Loss Per Share
Loss Per Share | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | Note 24 – LOSS PER SHARE The Company reports earnings per share in accordance with the provisions of the FASB’s related accounting standard. This standard requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution, but includes vested restricted stocks and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. The following is a reconciliation of the basic and diluted earnings per share computation: The year ended 2021 2020 Net loss attributable to controlling interest $ (8,119,862 ) $ (5,813,369 ) Weighted average shares used in basic computation 40,780,762 32,816,567 Diluted effect of stock options and warrants Weighted average shares used in diluted computation 40,780,762 32,816,567 Loss per share – Basic: Net loss before noncontrolling interest $ (0.20 ) $ (0.18 ) Add: Net loss attributable to noncontrolling interest $ - $ - Net loss attributable to controlling interest $ (0.20 ) $ (0.18 ) Loss per share – Diluted: Net income before noncontrolling interest $ (0.20 ) $ (0.18 ) Add: Net loss attributable to noncontrolling interest $ - $ - Net loss attributable to controlling interest $ (0.20 ) $ (0.18 ) For the year ended March 31, 2021, 967,000 shares underlying employee stock options and 6,750,009 shares underlying outstanding purchase options to several investors, and 540,000 shares underlying outstanding purchase option to an investment placement agent were excluded from the calculation of diluted loss per share as the options were anti-dilutive. |
Segments
Segments | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENTS | Note 25 – SEGMENTS The Company operates within four main reportable segments: retail drugstores, online pharmacy, drug wholesale and herb farming. The retail drugstores segment sells prescription and over-the-counter (“OTC”) medicines, TCM, dietary supplements, medical devices, and sundry items to retail customers. The online pharmacy sells OTC drugs, dietary supplements, medical devices and sundry items to customers through several third-party platforms such as Alibaba’s Tmall, JD.com and Amazon.com, and the Company’s own platform all over China. The drug wholesale segment includes supplying the Company’s own retail drugstores with prescription and OTC medicines, TCM, dietary supplement, medical devices and sundry items (which sales have been eliminated as intercompany transactions), and also selling them to other drug vendors and hospitals. The Company’s herb farming segment cultivates selected herbs for sales to other drug vendors. The Company is also involved in online sales and clinic services that do not meet the quantitative thresholds for reportable segments and are included in the retail drugstores segment. The segments’ accounting policies are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on profit or loss from operations before interest and income taxes not including nonrecurring gains and losses. The Company’s reportable business segments are strategic business units that offer different products and services. Each segment is managed separately because they require different operations and markets to distinct classes of customers. The following table presents summarized information by segment of the continuing operations for the year ended March 31, 2021: Retail Online Drug Herb Total Revenue $ 76,098,975 $ 22,485,919 $ 34,549,739 $ - $ 133,134,633 Cost of goods 53,093,226 20,146,730 30,650,868 - 103,890,824 Gross profit $ 23,005,749 $ 2,339,189 $ 3,898,871 $ - $ 29,243,809 Selling expenses 21,975,048 2,770,997 2,208,869 - 26,954,914 General and administrative expenses 9,088,152 288,890 1,487,303 33,284 10,897,629 Impairment of long-lived assets - - - 228,506 228,506 Loss from operations $ (8,057,451 ) $ (720,698 ) $ 202,699 $ (261,790 ) $ (8,837,240 ) Depreciation and amortization $ 1,709,049 $ - $ 41,841 $ - $ 1,750,890 Total capital expenditures $ 392,788 $ - $ - $ - $ 392,788 The following table presents summarized information by segment of the continuing operations for the year ended March 31, 2020: Retail Online Drug Herb Total Revenue $ 74,081,237 $ 13,541,215 $ 29,705,237 $ - $ 117,327,689 Cost of goods 53,244,302 12,106,510 26,450,447 - 91,801,259 Gross profit $ 20,836,935 $ 1,434,705 $ 3,254,790 $ - $ 25,526,430 Selling expenses 19,434,860 2,148,709 2,210,034 - 23,793,603 General and administrative expenses 5,505,303 243,283 2,359,791 - 8,108,377 Impairment of long-lived assets 628,192 - - - 628,192 Loss from operations $ (4,731,420 ) $ (957,287 ) $ (1,315,035 ) $ $ (7,003,742 ) Depreciation and amortization $ 2,042,951 $ - $ 39,866 $ - $ 2,082,817 Total capital expenditures $ 1,406,470 $ - $ 3,176 $ - $ 1,409,646 The Company does not have long-lived assets located outside the PRC. In accordance with the enterprise-wide disclosure requirements of FASB’s accounting standard, the Company’s net revenue from external customers through its retail drugstores by main product category for the years ended March 31, 2021 and 2020 were as follows: For the year ended March 31, 2021 2020 Prescription drugs $ 27,162,968 $ 26,045,423 OTC drugs 30,524,057 31,532,248 Nutritional supplements 6,863,559 6,013,622 TCM 4,560,968 5,325,008 Sundry products 1,379,917 1,312,293 Medical devices 5,607,506 3,852,643 Total $ 76,098,975 $ 74,081,237 The Company’s net revenue from external customers through online pharmacy by main product category is as follows: For the year ended March 31, 2021 2020 Prescription drugs $ 8,243,099 $ 1,447,469 OTC drugs 7,559,585 5,721,638 Nutritional supplements 956,013 742,809 TCM 295,410 266,638 Sundry products 1,967,174 2,082,601 Medical devices 3,464,638 3,280,060 Total $ 22,485,919 $ 13,541,215 The Company’s net revenue from external customers through wholesale by main product category is as follows: For the years ended March 31, 2021 2020 Prescription drugs $ 27,477,087 $ 24,857,708 OTC drugs 6,242,630 4,196,841 Nutritional supplements 151,657 205,881 TCM 218,758 314,769 Sundry products 28,377 43,854 Medical devices 431,230 86,184 Total $ 34,549,739 $ 29,705,237 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 26 – SUBSEQUENT EVENTS On May 14, 2021, the Company and China Jo-Jo Drugstores Holdings, Inc., an exempted company incorporated under the laws of the Cayman Islands and a wholly owned subsidiary of the Company (“CJJD Cayman”) entered into a definitive agreement and plan of merger (the “Merger Agreement”) related to a proposed merger transaction. The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, the Company will merge with and into CJJD Cayman (the “Redomicile Merger”), with CJJD Cayman surviving and changing its name to China Jo-Jo Drugstores, Inc. Following the Redomicile Merger, CJJD Cayman, together with its subsidiaries, will own and continue to conduct the Company’s business in substantially the same manner as is currently being conducted by the Company and its subsidiaries. The Redomicile Merger is subject to the Company’s shareholders’ approval at the special shareholders meeting to be held on July 19, 2021. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | Basis of presentation and consolidation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries and VIEs. All significant inter-company transactions and balances between the Company, its subsidiaries and VIEs are eliminated upon consolidation. |
Consolidation of variable interest entities | Consolidation of variable interest entities In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. The Company has concluded, based on the contractual arrangements, that Jiuzhou Pharmacy (including its subsidiaries and controlled entities), Jiuzhou Clinic and Jiuzhou Service are each a VIE and that the Company’s wholly-owned subsidiary, Jiuxin Management, absorbs a majority of the risk of loss from the activities of these companies, thereby enabling the Company, through Jiuxin Management, to receive a majority of their respective expected residual returns. Control and common control are defined under the accounting standards as “an individual, enterprise, or immediate family members who hold more than 50 percent of the voting ownership interest of each entity.” Because the Owners collectively own 100% of Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service, and have agreed to vote their interests in concert since the establishment of each of these three companies as memorialized in the voting rights agreement, the Company believes that the Owners collectively have control and common control of the three companies. Accordingly, the Company believes that Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service were constructively held under common control by Jiuxin Management as of the time the Contractual Agreements were entered into, establishing Jiuxin Management as their primary beneficiary. Jiuxin Management, in turn, is owned by Renovation, which is owned by the Company. |
Risks and Uncertainties | Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. The Company has significant cash deposits with suppliers in order to obtain and maintain inventory. The Company’s ability to obtain products and maintain inventory at existing and new locations is dependent upon its ability to post and maintain significant cash deposits with its suppliers. In the PRC, many vendors are unwilling to extend credit terms for product sales that require cash deposits to be made. The Company does not generally receive interest on any of its supplier deposits, and such deposits are subject to loss as a result of the creditworthiness or bankruptcy of the party who holds such funds, as well as the risk from illegal acts such as conversion, fraud, theft or dishonesty associated with the third party. If these circumstances were to arise, the Company would find it difficult or impossible, due to the unpredictability of legal proceedings in China, to recover all or a portion of the amount on deposit with its suppliers. Members of the current management team own controlling interests in the Company and are also the Owners of the VIEs in the PRC. The Company only controls the VIEs through contractual arrangements which obligate it to absorb the risk of loss and to receive the residual expected returns. As such, the controlling shareholders of the Company and the VIEs could cancel these agreements or permit them to expire at the end of the agreement terms, as a result of which the Company would not retain control of the VIEs. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The significant estimates made in the preparation of the accompanying consolidated financial statements relate to the assessment of the carrying values of accounts receivable, related allowance for doubtful accounts, losses. Because of the use of estimates inherent in the financial reporting process, actual results could materially differ from those estimates. |
Fair value measurements | Fair value measurements The Company establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. The Company’s financial assets and liabilities, which include financial instruments as defined by FASB ASC 820, include cash, cash equivalents and restricted cash, financial assets available for sales, trade accounts receivable, notes receivables, other receivable, accounts payable, other payable, notes payable, long-term loan payable, employee deposits and warrants liability. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, notes receivables, and accounts payable are a reasonable approximation of fair value due to the short maturities of these instruments (Level 1). The carrying amount of notes payable approximates fair value based on borrowing rates of similar bank loan currently available to the Company (Level 2) (See Note 16). The carrying amount of Long-term loan payable approximates fair value based on borrowing rates of similar bank loan currently available to the Company (Level 2) (See Note 17). The carrying amount of the Company’s derivative instruments is recorded at fair value and is determined based on observable inputs that are corroborated by market data (Level 2) (See Note 21). The carrying amount of the financial assets available for sale is recorded at fair value and is determined based on unobservable inputs (Level 3) (See Note 4). The carrying amount of the employee deposits is recorded at fair value and is determined based on unobservable inputs (Level 3) (See Note 22). (amount in absolute value) Active Market Observable Unobservable Total Cash, cash equivalents and restricted cash $ 34,672,644 - - $ 34,672,644 Financial assets available for sale - - 91,472 91,472 Trade accounts receivable 13,423,728 - - 13,423,728 Notes receivable 39,392 - - 39,392 Other receivable 5,051,960 - - 5,051,960 Accounts payable 29,895,830 - - 29,895,830 Notes payable - 25,663,633 - 25,663,633 Other payable 2,940,000 - - 2,940,000 Long-term loan payable - 4,449,903 - 4,449,903 Total $ 86,023,554 30,113,536 91,472 $ 116,228,562 |
Revenue recognition | Revenue recognition Effective March 31, 2018, the Company began recognizing revenue under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective transition method. The impact of adopting the new revenue standard was not material to the Company’s consolidated financial statements. The core principle of this new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: ● Step 1: Identify the contract with the customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when the company satisfies a performance obligation In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606’s definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: ● The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct). ● The entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some sales taxes). The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate. The Company’s revenue is net of value added tax (“VAT”) collected on behalf of the PRC tax authorities with respect to the sales of merchandise. VAT collected from customers, net of VAT paid for purchases, is recorded as a liability in the accompanying consolidated balance sheets until it is paid to the relevant PRC tax authorities. Certain contract liabilities primarily represent the Company’s obligation to transfer additional goods or services to a customer for which the Company has received consideration, for example, membership points. The consideration received remains a contract liability until goods or services have been provided to the retail customer. The estimated amount based on accrued membership points was deducted from sales revenue. The following is a discussion of the Company’s revenue recognition policies by segment under the new revenue recognition accounting standard: Pharmacy retail sales The physical pharmacies sell prescription drugs, over-the-counter (“OTC”) drugs, traditional Chinese medicine, nutritional supplements, medical devices and sundry products. Revenue from sales of prescription medicine at drugstores is recognized when the prescription is filled and the customer picks up and pays for the prescription. Revenue from sales of other merchandise at drugstores is recognized at the point of sale, which is when a customer pays for and receives the merchandise. Usually the majority merchandise, such as prescription and OTC drugs, are not refundable after the customers leave the counter. Returns of other products, such as sundry products, are minimal. Sales of drugs reimbursed by the local government medical insurance agency and receivables from the agency are recognized when a customer pays for the drugs at a store. The Company based on historical experience, a reserve for potential losses from denial of reimbursement on certain unqualified drugs is made to the receivables from the government agency. Additionally, several onsite clinics adjacent to pharmacies provide limited medical services. Revenue from medical services is recognized after the service has been rendered to a customer. As revenue from medical services is minimal compared to pharmacy retail sales, it is included as part of the pharmacy retail sales. The Company deduct the membership rewards directly from the retail revenue, and present such amounts in net sales as opposed to the current reduction of operation expense classification. Membership rewards, usually membership points, are accumulated by customers based on their historical spending levels. The Company has determined that there is an additional performance obligation to those customers at the time of the initial transaction. The customers can then redeem these points against the prices of merchandises they purchase in the future. At the end of each period, unredeemed membership rewards are reflected as a contract liability. Online pharmacy sales The online pharmacy sells various health products except for prescription drugs. Revenue from online pharmacy sales is recognized when merchandise is shipped to customers. While most deliveries take one day, certain deliveries may take longer depending on a customer’s location. Any loss caused in a shipment will be reimbursed by the Company’s courier company. The Company’s sales policy allows for the return of certain merchandises without reason within seven days after a customer’s receipt of the applicable merchandise. Historically, sales returns seven days after merchandise receipts have been minimal. Wholesale Jiuxin Medicine purchases medicine in quantity and distributes products primarily to local pharmacies and medical products dealers. Revenue from sales of merchandise to non-retail customers is recognized when the merchandise is transferred to customers. Historically, sales returns have been minimal. The Company’s revenue is net of VAT collected on behalf of PRC tax authorities in respect to the sales of merchandise. VAT collected from customers, net of VAT paid for purchases, is recorded as a liability in the accompanying consolidated balance sheets until it is paid to the relevant PRC tax authorities. Disaggregation of Revenue The following table disaggregates the Company’s revenue by major source in each segment for the years ended March 31, 2021 and 2020: 2021 2020 For the year ended March 31 Retail drugstores Prescription drugs $ 27,162,968 $ 26,045,423 OTC drugs 30,524,057 31,532,248 Nutritional supplements 6,863,559 6,013,622 TCM 4,560,968 5,325,008 Sundry products 1,379,917 1,312,293 Medical devices 5,607,506 3,852,643 Total retail revenue $ 76,098,975 $ 74,081,237 Online pharmacy Prescription drugs $ 8,243,099 $ 1,447,469 OTC drugs 7,559,585 5,721,638 Nutritional supplements 956,013 742,809 TCM 295,410 266,638 Sundry products 1,967,174 2,082,601 Medical devices 3,464,638 3,280,060 Total online revenue $ 22,485,919 $ 13,541,215 Drug wholesale Prescription drugs $ 27,477,087 $ 24,857,708 OTC drugs 6,242,630 4,196,841 Nutritional supplements 151,657 205,881 TCM 218,758 314,769 Sundry products 28,377 43,854 Medical devices 431,230 86,184 Total wholesale revenue $ 34,549,739 $ 29,705,237 Total revenue $ 133,134,633 $ 117,327,689 Contract Balances Contract liabilities primarily represent the Company’s obligation to transfer additional goods or services to a customer for which the Company has received consideration, for example membership points and membership rewards. The consideration received remains a contract liability until goods or services have been provided to the retail customer. The following table provides information about receivables and contract liabilities from contracts with customers: March 31, March 31, Trade receivable(included in accounts receivable, net) $ 13,423,728 $ 9,770,656 Contract liabilities (included in accrued expenses) 1,470,217 1,106,982 |
Restricted cash | Restricted cash The Company’s restricted cash consists of cash and long-term deposits in a bank as security for its notes payable. The Company has notes payable outstanding with the bank and is required to keep certain amounts on deposit that are subject to withdrawal restrictions. The notes payable are generally short term in nature due to their short maturity period of six to nine months; thus, restricted cash is classified as a current asset. The following represents a reconciliation of cash and cash equivalents in the Consolidated Condensed Balance Sheets to total cash, cash equivalents and restricted cash in the Consolidated Condensed Statements of Cash Flows as of March 31, 2021 and March 31, 2020: March 31, March 31, Cash and cash equivalents $ 22,045,628 $ 16,176,318 Restricted cash 12,627,016 14,806,288 Cash, cash equivalents and restricted cash $ 34,672,644 $ 30,982,606 |
Accounts receivable | Accounts receivable Accounts receivable represents the following: (1) amounts due from banks relating to retail sales that are paid or settled by the customers’ debit or credit cards, (2) amounts due from government social security bureaus and commercial health insurance programs relating to retail sales of drugs, prescription medicine, and medical services that are paid or settled by the customers’ medical insurance cards, (3) amounts due from non-bank third party payment instruments such as Alipay and certain e-commerce platforms and (4) amounts due from non-retail customers for sales of merchandise. Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts, as necessary. In the Company’s retail business, accounts receivable mainly consist of reimbursements due from the government insurance bureaus and commercial health insurance programs and are usually collected within two or three months. The Company directly writes off delinquent account balances, which it determines to be uncollectible after confirming with the appropriate bureau or program each month. Additionally, the Company also makes estimated reserves on related outstanding accounts receivable based on expected credit loss. In the Company’s online pharmacy business, accounts receivable primarily consist of amounts due from non-bank third party payment instruments such as Alipay and certain e-commerce platforms. To purchase pharmaceutical products from an e-commerce platforms such as Tmall, customers are required to submit payment to certain non-bank third party payment instruments, such as Alipay, which, in turn, reimburse the Company within seven days to a month. Except for customer returns of sold products, the receivables from these payments instruments are rarely uncollectible. In its wholesale business, the Company uses the expected credit loss method to estimate the allowance for anticipated uncollectible receivable balances. At each reporting period, the allowance balance is adjusted to reflect the amount computed as a result of the expected credit loss method. When facts subsequently become available to indicate that the allowance provided requires an adjustment, a corresponding adjustment is made to the allowance account as a change in estimate. |
Credit loss roll forward | Credit loss roll forward With the adoption of the current expected credit loss standard in 2020, the company estimates future expected losses on accounts receivable and other receivables over the remaining collection period of the instrument. The roll forward for the allowance for credit losses for the year end March 31, 2021, is as follows: For the year ended Account Other Total Allowance for credit losses as of March 31, 2020 $ 2,264,070 507,671 $ 2,771,741 Current expected credit losses opening balance impact on retained earning 189,295 232,380 421,675 Credit loss expense* 427,148 (246,587 ) 180,561 Ending allowance for credit losses $ 2,880,513 493,464 $ 3,373,977 |
Advances to suppliers | Advances to suppliers Advances to suppliers consist of prepayments to its vendors, such as pharmaceutical manufacturers and other distributors. Since the acquisition of Jiuxin Medicine, the Company have transferred almost all logistics services of its retail drugstores to Jiuxin Medicine. Jiuzhou Pharmacy only directly purchases certain non-medical products, such as certain nutritional supplements. As a result, almost all advances to suppliers are made by Jiuxin Medicine. Advances to suppliers for its drug wholesale business consist of prepayments to its vendors, such as pharmaceutical manufacturers and other distributors. The Company typically receive products from vendors within three to nine months after making prepayments. The Company continuously monitor delivery from, and payments to, its vendors while maintaining a provision for estimated credit losses based upon historical experience and any specific supplier issues, such as discontinuing of inventory supply, that have been identified. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first in first out (FIFO) method. The Company carries out physical inventory counts on a monthly basis at each store and warehouse location. Herbs that the Company farms are recorded at their cost, which includes direct costs such as seed selection, fertilizer, labor costs that are spent in growing herbs on the leased farmland, and indirect costs such as amortization of farmland development cost. All costs are accumulated until the time of harvest and then allocated to harvested herbs costs when the herbs are sold. The Company periodically reviews its inventory and records write-downs to inventories for shrinkage losses and damaged merchandise that are identified. The Company provides a reserve for estimated inventory obsolescence or excess quantities on hand equal to the difference, if any, between the cost of the inventory and its estimated realizable value. |
Farmland assets | Farmland assets Herbs that the Company farms are recorded at their cost, which includes direct costs such as seed selection, fertilizer, and labor costs that are spent in growing herbs on the leased farmland, and indirect costs such as amortization of farmland development costs. Since April 2014, amortization of farmland development costs has been expensed instead of allocated into inventory due to unpredictable future market value of planted gingko trees. All related costs described in the above are accumulated until the time of harvest and then allocated to harvested herbs when they are sold. |
Property and equipment | Property and equipment Property and equipment are stated at cost, net of accumulated depreciation or amortization. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets, taking into consideration the assets’ estimated residual value. Leasehold improvements are amortized over the shorter of lease term or remaining lease period of the underlying assets. Following are the estimated useful lives of the Company’s property and equipment: Estimated Leasehold improvements 3-10 years Motor vehicles 3-5 years Office equipment & furniture 3-5 years Buildings 35 years Maintenance, repairs and minor renewals are charged to expenses as incurred. Major additions and betterment to property and equipment are capitalized. |
Intangible assets | Intangible assets Intangible assets are acquired individually or as part of a group of assets, and are initially recorded at their fair value. The cost of a group of assets acquired in a transaction is allocated to the individual assets based on their relative fair values. The estimated useful lives of the Company’s intangible assets are as follows: Estimated Land use rights 50 years Software 3 years license Infinite The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired |
Impairment of long lived assets | Impairment of long lived assets The Company evaluates long lived tangible and intangible assets for impairment, whenever events or changes in circumstances indicate that the carrying value may not be recoverable from its estimated future cash flows. Recoverability is measured by comparing the assets’ net book value to the related projected undiscounted cash flows from these assets, considering a number of factors including past operating results, budgets, economic projections, market trends and product development cycles. If the net book value of the asset exceeds the related undiscounted cash flows, the asset is considered impaired, and a second test is performed to measure the amount of impairment loss. In the year ended March 31, 2020, the Company evaluated the licenses of insurance applicable drugstores acquired in the past based on their discounted positive cash value. Due to the stricter government insurance policy in fiscal year 2021, the value of these licenses has declined. As a result, The Company recorded an impairment of $628,192 as of March 31, 2020. In the year ended March 31, 2021, we evaluated the use rights of the forest land, which is currently used to cultivate Ginkgo trees. The forest rights certificate from the local village extends the life of the lease to January 31, 2060. Based on the evaluation of the forest land use rights, the Company recorded an impairment of $228,506 |
Notes payable | Notes payable During the normal course of business, the Company regularly issues bank acceptance bills as a payment method to settle outstanding accounts payables with various material suppliers. The Company records such bank acceptance bills as notes payable. Such notes payable are generally short term in nature due to their short maturity period of six to nine months. |
Income taxes | Income taxes The Company follows FASB ASC Topic 740, “Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The accounting standards clarify the accounting and disclosure requirements for uncertain tax positions and prescribe a recognition threshold and measurement attribute for recognition and measurement of a tax position taken or expected to be taken in a tax return. The accounting standards also provide guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures, and transition. No significant penalties, uncertain tax provisions or interest relating to income taxes were incurred during the periods ended March 31, 2021 and 2020. |
Value added tax | Value added tax Sales revenue represents the invoiced value of goods, net of VAT. All of the Company’s products are sold in the PRC and are subject to a VAT on the gross sales price. The VAT rates range up to 17%, depending on the type of products sold. The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing or acquiring its finished products. The Company recorded a VAT payable net of payments in the accompanying financial statements. |
Stock based compensation | Stock based compensation The Company follows the provisions of FASB ASC 718, “Compensation — Stock Compensation,” which establishes accounting standards for non-employee and employee stock-based awards. Under the provisions of FASB ASC 718, the fair value of stock issued is used to measure the fair value of services received as the Company believes such approach is a more reliable method of measuring the fair value of the services. For non-employee stock-based awards, fair value is measured based on the value of the Company’s common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance is complete. The fair value of the equity instrument is calculated and then recognized as compensation expense over the requisite performance period. For employee stock-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight–line basis over the requisite service period for the entire award. |
Advertising and promotion costs | Advertising and promotion costs Advertising and promotion costs are expensed as incurred and amounted to $309,446 and $262,553 for the year ended March 31, 2021 and 2020, respectively. Such costs consist primarily of print and promotional materials such as flyers to local communities. |
Foreign currency translation | Foreign currency translation The Company uses the United States dollar (“U.S. dollars” or “USD”) for financial reporting purposes. The Company’s subsidiaries and VIEs maintain their books and records in their functional currency the Renminbi (“RMB”), the currency of the PRC. In general, for consolidation purposes, the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the reporting period. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive income. The balance sheet amounts, with the exception of equity, at March 31, 2021 and 2020 were translated at 1 RMB to 0.1525 USD and at 1 RMB to 0.1410 USD, respectively. The average translation rates applied to income and cash flow statement amounts for years ended March 31, 2021 and 2020 were at 1 RMB to 0.1477 USD and at 1 RMB to 0.1436 USD, respectively. |
Concentrations and credit risk | Concentrations and credit risk Certain financial instruments, which subject the Company to concentration of credit risk, consist of cash and restricted cash. The Company has cash balances at financial institutions located in Hong Kong and PRC. Balances at financial institutions in Hong Kong may, from time to time, exceed Hong Kong Deposit Protection Board’s insured limits. Since March 31, 2015, balances at financial institutions and state-owned banks within the PRC are covered by insurance up to RMB 500,000 (USD 79,600) per bank. As of March 31, 2021 and March 31, 2020, the Company had deposits totaling $34,602,819 and $30,974,714 that were covered by such limited insurance, respectively. Any balance over RMB 500,000 (USD 79,600) per bank in PRC will not be covered. To date, the Company has not experienced any losses in such accounts. For the fiscal year ended March 31, 2021, two vendors collectively accounted for 42.9% of the Company’s total purchases and two suppliers accounted for more than 10% of total advances to suppliers. For the fiscal year ended March 31, 2020, two vendors collectively accounted for 50.4% of the Company’s total purchases and two suppliers accounted for more than 10% of total advances to suppliers. For the fiscal year ended March 31, 2021, no customer accounted for more than 10% of the Company’s total sales and more than 10% of total accounts receivable. For the fiscal year ended March 31, 2020, no customer accounted for more than 10% of the Company’s total sales or more than 10% of total accounts receivable. |
Leases | Leases In February 2016, the FASB issued ASU 2016-02, Leases The Company adopted this new accounting standard on April 1, 2019 on a modified retrospective basis and applied the new standard to all leases through a cumulative-effect adjustment to beginning retained earnings. As a result, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which includes, among other things, the ability to carry forward the existing lease classification. On April 1, 2019, the Company recorded an after-tax transition adjustment to increase retained earnings by approximately $422,354. The new standard had a material impact on the unaudited condensed consolidated balance sheet, but did not materially impact the Company’s consolidated operating results and had no impact on the Company’s cash flows. The following is a discussion of the Company’s lease policy under the new lease accounting standard: The Company determines if an arrangement contains a lease at the inception of a contract. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments. As the interest rate implicit in the Company’s leases is not readily determinable, the Company utilizes its incremental borrowing rate, determined by class of underlying asset, to discount the lease payments. The operating lease right-of-use assets also include lease payments made before commencement and exclude lease incentives. The Company leases premises for retail drugstores, and offices under non-cancellable operating leases. Operating lease payments are expensed over the term of lease using straight line method. A majority of the Company’s retail drugstore leases have a 3 to 10 year term. Usually within one to three months prior to the expiration date of a lease, the Company is required to notify the lessor and has a priority to continue renting the lease property if a lessor intends to lease property. The lease itself does not have restriction or covenants. If both parties agree to continue, a new lease contract with new lease terms has to been signed by both parties. Usually, the rent may increase year by year based on the lease contract. Sublease is typically not allowed. Any damage, if made by the lessee, to the property and equipment within the property has to been fixed or reimbursed by the lessee. The Company does not have any leases entered into that have not yet commenced. The Company has historically been able to renew a majority of its drugstores’ leases. The weighted average remaining lease term is 2.5 years and the weighted average discount rate is 4.19%. Under the terms of its lease agreements, the Company has no legal or contractual asset retirement obligations at the end of the leases. Due to the spread of COVID-19, the Company was able to renegotiate with certain landlords and was able to lower its rent payment. However, the reduction in rent is immaterial. If any reduction is successfully implemented, as the amount is immaterial, the Company simply adjusts rent expense as reduced payments are made. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting pronouncements adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” providing financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The FASB has voted to defer the effective date for public companies that are smaller reporting companies to fiscal years beginning after December 15, 2022. All entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this new accounting standard on April 1, 2020. The Company adopted the credit loss impairment model on a modified retrospective basis and recorded a $421,675 million cumulative effect adjustment to reduce retained earnings as of the adoption date. The adoption of this standard did not have a material impact on the Company’s consolidated operating results, cash flows or financial condition. In August 2018, the FASB issued ASU 2018-13 Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds, and modifies certain disclosure requirements for fair value measurements under ASC 820. This ASU is to be applied on a prospective basis for certain modified or new disclosure requirements, and all other amendments in the standard are to be applied on a retrospective basis. The new standard is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. ASU 2018-13 has no impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which removes Step 2 from the goodwill impairment test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. Public business entity that is a U.S. Securities and Exchange Commission filer should adopt the amendments in this ASU for its annual or any interim goodwill impairment test in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted ASU 2017-04 on January 1, 2020. The adoption of the ASU 2017-04 did not have a material impact on the Company’s consolidated financial statements. Accounting pronouncements not yet effective to adopt In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company does not expect that the requirements of ASU 2019-12 will have a material impact on its consolidated financial statements. |
Description of Business and O_2
Description of Business and Organization (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Condensed Financial Statements [Table Text Block] | Entity Name Background Ownership Renovation ● Incorporated in Hong Kong SAR on September 2, 2008 100% Jiuxin Management ● Established in the PRC on October 14, 2008 ● Deemed a wholly foreign owned enterprise (“WFOE”) under PRC law ● Registered capital of $14.5 million fully paid 100% Shouantang Technology ● Established in the PRC on July 16, 2010 by Renovation with registered capital of $20 million ● Registered capital requirement reduced by the SAIC to $11 million in July 2012 and is fully paid ● Deemed a WFOE under PRC law ● Invests and finances the working capital of Quannuo Technology 100% Qianhong Agriculture ● Established in the PRC on August 10, 2010 by Jiuxin Management ● Registered capital of RMB 10 million fully paid ● Carries out herb farming business 100% Jiuzhou Pharmacy (1) ● Established in the PRC on September 9, 2003 ● Registered capital of RMB 5 million fully paid ● Operates the “Jiuzhou Grand Pharmacy” stores in Hangzhou VIE by contractual arrangements (2) Jiuzhou Clinic (1) ● Established in the PRC as a general partnership on October 10, 2003 VIE by contractual arrangements (2) ● Operates a medical clinic adjacent to one of Jiuzhou Pharmacy’s stores Jiuzhou Service (1) ● Established in the PRC on November 2, 2005 ● Registered capital of RMB 500,000 fully paid ● Operates a medical clinic adjacent to one of Jiuzhou Pharmacy’s stores VIE by contractual arrangements (2) Jiuxin Medicine ● Established in PRC on December 31, 2003 ● Acquired by Jiuzhou Pharmacy in August 2011 ● Registered capital of RMB 10 million fully paid ● Carries out pharmaceutical distribution services VIE by contractual arrangements as a wholly-owned subsidiary of Jiuzhou Pharmacy (2) Entity Name Background Ownership Jiutong Medical ● Established in the PRC on December 20, 2011 by Renovation ● Registered capital of $2.6 million fully paid ● Currently has no operation 100% Shouantang Bio ● Established in the PRC in October, 2014 by Shouantang Technology ● 100% held by Shouantang Technology ● Registered capital of RMB 1,000,000 fully paid ● Sells nutritional supplements under its own brand name 100% Jiuyi Technology ● Established in the PRC on September 10, 2015 ● 100% held by Renovation ● Technical support to online pharmacy 100% Kahamadi Bio ● Established in the PRC in May 2016 ● 49% held by Shouantang Bio ● Registered capital of RMB 10 million ● Develop brand name for nutritional supplements 49% Linjia Medical ● Established in the PRC in September27, 2017 ● 51% held by Jiuzhou Pharmacy ● Registered capital of RMB 20 million ● Operates local clinics VIE by contractual arrangements as a controlled subsidiary of Jiuzhou Pharmacy (2) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Fair Value Measurements, Nonrecurring [Table Text Block] | (amount in absolute value) Active Market Observable Unobservable Total Cash, cash equivalents and restricted cash $ 34,672,644 - - $ 34,672,644 Financial assets available for sale - - 91,472 91,472 Trade accounts receivable 13,423,728 - - 13,423,728 Notes receivable 39,392 - - 39,392 Other receivable 5,051,960 - - 5,051,960 Accounts payable 29,895,830 - - 29,895,830 Notes payable - 25,663,633 - 25,663,633 Other payable 2,940,000 - - 2,940,000 Long-term loan payable - 4,449,903 - 4,449,903 Total $ 86,023,554 30,113,536 91,472 $ 116,228,562 |
Disaggregation of Revenue [Table Text Block] | 2021 2020 For the year ended March 31 Retail drugstores Prescription drugs $ 27,162,968 $ 26,045,423 OTC drugs 30,524,057 31,532,248 Nutritional supplements 6,863,559 6,013,622 TCM 4,560,968 5,325,008 Sundry products 1,379,917 1,312,293 Medical devices 5,607,506 3,852,643 Total retail revenue $ 76,098,975 $ 74,081,237 Online pharmacy Prescription drugs $ 8,243,099 $ 1,447,469 OTC drugs 7,559,585 5,721,638 Nutritional supplements 956,013 742,809 TCM 295,410 266,638 Sundry products 1,967,174 2,082,601 Medical devices 3,464,638 3,280,060 Total online revenue $ 22,485,919 $ 13,541,215 Drug wholesale Prescription drugs $ 27,477,087 $ 24,857,708 OTC drugs 6,242,630 4,196,841 Nutritional supplements 151,657 205,881 TCM 218,758 314,769 Sundry products 28,377 43,854 Medical devices 431,230 86,184 Total wholesale revenue $ 34,549,739 $ 29,705,237 Total revenue $ 133,134,633 $ 117,327,689 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | March 31, March 31, Trade receivable(included in accounts receivable, net) $ 13,423,728 $ 9,770,656 Contract liabilities (included in accrued expenses) 1,470,217 1,106,982 |
Restrictions on Cash and Cash Equivalents [Table Text Block] | March 31, March 31, Cash and cash equivalents $ 22,045,628 $ 16,176,318 Restricted cash 12,627,016 14,806,288 Cash, cash equivalents and restricted cash $ 34,672,644 $ 30,982,606 |
Schedule of estimates future expected losses on accounts receivable and other receivables | For the year ended Account Other Total Allowance for credit losses as of March 31, 2020 $ 2,264,070 507,671 $ 2,771,741 Current expected credit losses opening balance impact on retained earning 189,295 232,380 421,675 Credit loss expense* 427,148 (246,587 ) 180,561 Ending allowance for credit losses $ 2,880,513 493,464 $ 3,373,977 * The amount represents the reserve made in the current year on estimated potential loss, but not includes the direct write-off of certain collectible from local government insurance agency. |
Schedule of estimated useful lives of property and equipment | Estimated Leasehold improvements 3-10 years Motor vehicles 3-5 years Office equipment & furniture 3-5 years Buildings 35 years |
Schedule of estimated useful lives of intangible assets | Estimated Land use rights 50 years Software 3 years license Infinite |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | March 31, March 31, Accounts receivable $ 16,304,240 $ 12,034,726 Less: allowance for doubtful accounts (2,880,513 ) (2,264,070 ) Trade accounts receivable, net $ 13,423,728 $ 9,770,656 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | March 31, March 31, Prepaid rental expenses (1) $ 1,441,879 $ 1,364,975 Prepaid and other current assets 118,240 163,565 Total $ 1,560,119 $ 1,528,540 (1) The balance as of March 31, 2021 and March 31, 2020 includes short-term refundable rental security deposits. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | March 31, March 31, Building $ 6,357,748 $ 5,880,627 Leasehold improvements 9,595,801 9,209,136 Farmland development cost 1,823,257 1,686,430 Office equipment and furniture 6,006,534 5,632,955 Motor vehicles 376,798 504,327 Total 24,160,138 22,913,475 Less: Accumulated depreciation (15,211,112 ) (13,059,852 ) Impairment* (2,399,991 ) (2,219,883 ) Property and equipment, net $ 6,549,035 $ 7,633,740 * The variance of impairment from from March 31, 2020 to March 31, 2021 is solely caused by exchange rate variance. |
Long-Term Investment (Tables)
Long-Term Investment (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | March 31, March 31, Kahamadi Bio (1) $ - $ 6,217 Zhetong Medical (2) 3,981,986 2,538,234 Advance to suppliers, net $ 3,981,986 $ 2,544,451 (1) It represents 49% investment in Kahamadi Bio. The investment is recorded using the equity method. Kahamadi Bio suffered loss of $6,217 in the year ended March 31, 2021. (2) It represents 39% investment in Zhejiang Zhetong Medical Co., Ltd. (“Zhetong Medical”). Zhetong Medical was established in March 2020 to target potential acquisitions or to cooperate with local pharmacies. By attracting more funds from local investors, the Company expects to continue growing its local network in the future. In the year ended March 31, 2021, Jiuzhou Pharmacy injected funds of approximately $1,443,752 into Zhetong Medical. The investment is recorded based on equity method. |
Advances to Suppliers (Tables)
Advances to Suppliers (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Advances To Suppliers [Abstract] | |
Schedule of advance to suppliers | March 31, March 31, Advance to suppliers $ 421,963 $ 2,198,863 Less: reserve for vendor non-performance on advances - (1,024,063 ) Advance to suppliers, net $ 421,963 $ 1,174,800 |
Farmland Assets (Tables)
Farmland Assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Farmland Assets [Abstract] | |
Schedule of farmland assets | March 31, March 31, 2021 2020 Farmland assets $ 2,387,136 $ 2,177,606 Less: Impairment* (1,551,709 ) (1,435,259 ) Farmland assets, net $ 835,427 $ 742,347 * The difference between the recorded impairment loss as of December 31, 2020 and March 31, 2020 is primarily due to the exchange rate variance over years. There is no leasehold impairment expense in fiscal 2020 and 2021. |
Other Noncurrent Assets (Tables
Other Noncurrent Assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Other Noncurrent Assets [Abstract] | |
Schedule of Other Assets, Noncurrent [Table Text Block] | March 31, March 31, Forest land use rights* $ 785,569 $ 994,558 Others 70,822 52,205 Total $ 856,391 $ 1,046,763 * The prepayment for lease of forest land use rights is made to a local government in connection with an operating land lease agreement. The land is currently used to cultivate Ginkgo trees. The forest rights certificate from the local village extends the life of the lease to January 31, 2060. In the year ended March 31, 2021, based on the evaluation of the forest land use rights, the Company recorded an impairment of $228,506. |
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Table Text Block] | Years ending March 31, Amount 2022 $ 40,046 2023 40,046 2024 40,046 2025 40,046 2026 40,046 Thereafter 585,339 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of cash flow information related to leases | Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 6,340,671 Right-of-use assets obtained in exchange for lease obligations: Operating leases - |
Schedule of condensed balance sheet related to leases | Operating leases: Operating lease right-of-use assets $ 16,778,729 Current portion of operating lease liabilities $ 788,171 Long-term operating lease liabilities 15,118,083 Total operating lease liabilities $ 15,906,254 Weighted average remaining lease term Operating leases 2.5 Weighted average discount rate Operating leases 4.19 % |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Operating For the year ending March 31, Leases 2021 $ 796,610 2021 5,397,928 2022 3,837,359 2023 2,788,609 2024 1,697,653 Thereafter 2,190,613 Total lease payments 16,708,772 Less: imputed interest (802,518 ) Total lease liabilities $ 15,906,254 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | March 31, March 31, License (1) $ 2,466,684 $ 2,220,512 Software (2) 1,205,857 1,083,024 Land use rights (3) 1,486,663 1,375,095 Total intangible assets 5,159,204 4,678,631 Less: accumulated amortization (964,046 ) (667,633 ) Less: impairment (4) (667,102 ) (617,038 ) Intangible assets, net $ 3,528,056 $ 3,393,960 (1) This represents the fair value of the licenses of insurance applicable drugstores acquired from a variety of drugstores such as Sanhao Pharmacy and several local stores. The licenses allow patients to pay by using insurance cards at stores. The stores are reimbursed from the Human Resource and Social Security Department of Hangzhou City. In 2014, the Company acquired Sanhao Pharmacy, a drugstore chain. In September 2017, the Company acquired several new stores for the purpose of the Municipal Social Medical Reimbursement Qualification Certificates. On January 9, 2020, the Company acquired a local drugstore chain. The acquired drugstores ceased their stores’ business and liquidate all of the stores’ accounts after Jiuzhou Pharmacy acquired them. In March 2020, the drugstore chain has dissolved and its certificates were transferred to new stores opened at the same time. In the year ended March 31, 2021, the Company acquired four single drugstores which have been liquidated after the acquisition. Jiuzhou Pharmacy then opened four new stores with the four licenses of local government medical insurance reimbursement program. (2) They are primarily the SAP ERP system, the Internet Clinic Diagnosis Terminal system and the Chronic Disease Management system. In 2017, we have installed a leading ERP system, SAP from Germany. SAP is a well-known management system used by many fortune 500 companies. It is being amortized over three years since its installation. In 2020, we have installed an internet Clinic Diagnosis System used to strengthen our ability to perform online diagnosis which may increase more customer spending and a Chronic Disease Management System used to better manage and monitor our members’ health. As of March 31, 2021, the SAP system has a net value of $766,748 (RMB5,029,372), the internet Clinic Diagnosis System has a net value of approximately $409,904 (RMB 2,688,709), the Chronic Disease Management System has a net value of approximately $17,742 (RMB116,379). (3) In July 2013, the Company purchased the land use rights of a plot of land in Lin’an, Hangzhou, intended for the establishment of an herb processing plant in the future. However, as the Company’s farming business in Lin’an has not grown, the Company does not expect completion of the plant in the near future. (4) In the year ended March 31, 2020, the Company evaluated the licenses of insurance applicable drugstores acquired in the past based on the discounted positive cash value. Due to the stricter government insurance policy in the fourth quarter of fiscal year 2020, the value of these licenses has declined. As a result, the Company recorded an impairment in the fourth quarter of fiscal 2020. In the year ended March 31, 2020, we evaluated the use rights of the forest land, which is currently used to cultivate Ginkgo trees. The forest rights certificate from the local village extends the life of the lease to January 31, 2060. Based on the evaluation of the forest land use rights, the Company recorded an impairment of $228,506. |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | Origination Maturity March 31, March 31, Beneficiary (1) Endorser date date 2021 2020 Jiuzhou Pharmacy HUB 10/09/19 04/09/20 $ - $ 3,478,259 Jiuzhou Pharmacy HUB 11/06/19 05/06/20 - 164,582 Jiuzhou Pharmacy HUB 12/05/19 06/05/20 - 3,106,474 Jiuzhou Pharmacy HUB 12/31/19 06/30/20 - 2,289,308 Jiuzhou Pharmacy HUB 01/06/20 07/06/20 - 129,457 Jiuzhou Pharmacy HUB 02/19/20 08/19/20 - 5,105,096 Jiuzhou Pharmacy HUB 03/10/20 09/10/20 - 5,324,871 Jiuxin Medicine HUB 12/26/19 06/26/20 - 1,371,992 Jiuxin Medicine HUB 12/31/19 06/30/20 - 3,943,776 Jiuxin Medicine HUB 03/31/20 09/30/20 - 1,692,156 Jiuzhou Pharmacy HUB 10/10/20 04/10/21 820,847 - Jiuzhou Pharmacy HUB 11/09/20 05/09/21 5,715,776 - Jiuzhou Pharmacy HUB 12/17/20 06/17/21 1,233,353 - Jiuzhou Pharmacy HUB 12/25/20 06/25/21 990,951 - Jiuzhou Pharmacy HUB 12/30/20 06/30/21 1,300,222 - Jiuzhou Pharmacy HUB 02/05/21 08/05/21 3,075,672 - Jiuzhou Pharmacy HUB 03/12/21 09/12/21 5,437,655 - Jiuxin Medicine HUB 12/07/20 06/07/21 2,419,382 - Jiuxin Medicine HUB 12/30/20 06/30/21 4,503,905 - Jiuxin Medicine HUB 03/12/21 09/12/21 165,870 - Total $ 25,663,633 $ 25,951,673 (1) As of March 31, 2021, the Company had $25,663,633 (RMB 168,336,897) of notes payable from HUB. The Company is required to hold restricted cash in the amount of $12,501,401 (RMB 82,001,136) with HUB as collateral against these bank notes. Included in the restricted cash is a total of $6,860,430 three-year deposit (RMB 45,000,000) deposited into HUB as a collateral for current and future notes payable from HUB. As of March 31, 2020, the Company had $26,605,971 (RMB188,677,437) of notes payable from HUB. The Company is required to hold restricted cash in the amount of $14,596,179 (RMB 103,509,456) with HUB as collateral against these bank notes. Included in the restricted cash is a total of $8,763,958 three-year deposit (RMB 62,150,000) deposited into HUB as a collateral for current and future notes payable from HUB. |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the year ended 2021 2020 U.S. Statutory rates 21.0 % 21.0 % Foreign income not recognized in the U.S. (21.0 ) (21.0 ) China income taxes 25.0 25.0 Change in valuation allowance (25.0 ) (25.0 ) Non-deductible expenses-permanent difference (0.4 ) (0.3 ) Effective tax rate (0.4 )% (0.3 )% |
Related Party Transactions an_2
Related Party Transactions and Arrangements (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | March 31, March 31, Due to a director and CEO (1) $ 445,305 $ 490,218 (1) Due to foreign exchange restrictions, the Company’s director and CEO, Mr. Lei Liu personally lent U.S. dollars to the Company to facilitate its payments of expenses in the United States. |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Warrants Disclosure [Abstract] | |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Common Stock Common Stock March 31, March 31, Stock price $ - $ 1.77 Exercise price $ - $ 3.10 Annual dividend yield - % - % Expected term (years) - 0.81 Risk-free interest rate - % 0.71 % Expected volatility - % 62.08 % (1) As of March 31, 2021, the warrants had been expired and had not been exercised. |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The year ended 2021 2020 Net loss attributable to controlling interest $ (8,119,862 ) $ (5,813,369 ) Weighted average shares used in basic computation 40,780,762 32,816,567 Diluted effect of stock options and warrants Weighted average shares used in diluted computation 40,780,762 32,816,567 Loss per share – Basic: Net loss before noncontrolling interest $ (0.20 ) $ (0.18 ) Add: Net loss attributable to noncontrolling interest $ - $ - Net loss attributable to controlling interest $ (0.20 ) $ (0.18 ) Loss per share – Diluted: Net income before noncontrolling interest $ (0.20 ) $ (0.18 ) Add: Net loss attributable to noncontrolling interest $ - $ - Net loss attributable to controlling interest $ (0.20 ) $ (0.18 ) |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Retail Online Drug Herb Total Revenue $ 76,098,975 $ 22,485,919 $ 34,549,739 $ - $ 133,134,633 Cost of goods 53,093,226 20,146,730 30,650,868 - 103,890,824 Gross profit $ 23,005,749 $ 2,339,189 $ 3,898,871 $ - $ 29,243,809 Selling expenses 21,975,048 2,770,997 2,208,869 - 26,954,914 General and administrative expenses 9,088,152 288,890 1,487,303 33,284 10,897,629 Impairment of long-lived assets - - - 228,506 228,506 Loss from operations $ (8,057,451 ) $ (720,698 ) $ 202,699 $ (261,790 ) $ (8,837,240 ) Depreciation and amortization $ 1,709,049 $ - $ 41,841 $ - $ 1,750,890 Total capital expenditures $ 392,788 $ - $ - $ - $ 392,788 Retail Online Drug Herb Total Revenue $ 74,081,237 $ 13,541,215 $ 29,705,237 $ - $ 117,327,689 Cost of goods 53,244,302 12,106,510 26,450,447 - 91,801,259 Gross profit $ 20,836,935 $ 1,434,705 $ 3,254,790 $ - $ 25,526,430 Selling expenses 19,434,860 2,148,709 2,210,034 - 23,793,603 General and administrative expenses 5,505,303 243,283 2,359,791 - 8,108,377 Impairment of long-lived assets 628,192 - - - 628,192 Loss from operations $ (4,731,420 ) $ (957,287 ) $ (1,315,035 ) $ $ (7,003,742 ) Depreciation and amortization $ 2,042,951 $ - $ 39,866 $ - $ 2,082,817 Total capital expenditures $ 1,406,470 $ - $ 3,176 $ - $ 1,409,646 |
Revenue from External Customers by Products and Services [Table Text Block] | For the year ended March 31, 2021 2020 Prescription drugs $ 27,162,968 $ 26,045,423 OTC drugs 30,524,057 31,532,248 Nutritional supplements 6,863,559 6,013,622 TCM 4,560,968 5,325,008 Sundry products 1,379,917 1,312,293 Medical devices 5,607,506 3,852,643 Total $ 76,098,975 $ 74,081,237 For the year ended March 31, 2021 2020 Prescription drugs $ 8,243,099 $ 1,447,469 OTC drugs 7,559,585 5,721,638 Nutritional supplements 956,013 742,809 TCM 295,410 266,638 Sundry products 1,967,174 2,082,601 Medical devices 3,464,638 3,280,060 Total $ 22,485,919 $ 13,541,215 For the years ended March 31, 2021 2020 Prescription drugs $ 27,477,087 $ 24,857,708 OTC drugs 6,242,630 4,196,841 Nutritional supplements 151,657 205,881 TCM 218,758 314,769 Sundry products 28,377 43,854 Medical devices 431,230 86,184 Total $ 34,549,739 $ 29,705,237 |
Description of Business and O_3
Description of Business and Organization (Details) | Jan. 29, 2021USD ($) | Jan. 29, 2021CNY (¥) | Jan. 31, 2021USD ($) | Jan. 31, 2021CNY (¥) | Sep. 17, 2009shares | Mar. 31, 2021 | Jan. 09, 2020$ / shares | Mar. 29, 2019 | Apr. 20, 2018USD ($) | Apr. 20, 2018CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | May 31, 2016 |
Description of Business and Organization (Details) [Line Items] | |||||||||||||
Date of incorporation | Dec. 19, 2006 | ||||||||||||
Total proceeds | $ 129,586 | ¥ 850,000 | |||||||||||
Local drugstores price per share (in Dollars per share) | $ / shares | $ 2,021 | ||||||||||||
Renovation Investment [Member] | |||||||||||||
Description of Business and Organization (Details) [Line Items] | |||||||||||||
Issuance of equity consideration, shares | shares (in Shares) | shares | 7,900,000 | ||||||||||||
Percentage of capital stock in exchange transaction | 100.00% | ||||||||||||
Shouantang Bio [Member] | |||||||||||||
Description of Business and Organization (Details) [Line Items] | |||||||||||||
Percentage of capital stock in exchange transaction | 49.00% | ||||||||||||
Jiuzhou Pharmacy [Member] | |||||||||||||
Description of Business and Organization (Details) [Line Items] | |||||||||||||
Percentage of capital stock in exchange transaction | 51.00% | 51.00% | 51.00% | ||||||||||
Total amount of investment | $ 741,540 | ¥ 5,100,000 | |||||||||||
Jiuxin Medicine [Member] | |||||||||||||
Description of Business and Organization (Details) [Line Items] | |||||||||||||
Percentage of capital stock in exchange transaction | 10.00% | 10.00% | 10.00% | 10.00% | |||||||||
Issuance of equity consideration | $ 79,625 | ¥ 507,760 | |||||||||||
Medicine price | $ 77,410 | ¥ 507,760 |
Description of Business and O_4
Description of Business and Organization (Details) - Schedule of consolidated financial statements activities | 12 Months Ended | |
Mar. 31, 2021 | ||
Renovation [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Background | Incorporated in Hong Kong SAR on September 2, 2008 | |
Ownership | 100% | |
Jiuxin Management [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Background | Established in the PRC on October 14, 2008 Deemed a wholly foreign owned enterprise ("WFOE") under PRC law Registered capital of $14.5 million fully paid | |
Ownership | 100% | |
Shouantang Technology [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Background | Established in the PRC on July 16, 2010 by Renovation with registered capital of $20 million Registered capital requirement reduced by the SAIC to $11 million in July 2012 and is fully paid Deemed a WFOE under PRC law Invests and finances the working capital of Quannuo Technology | |
Ownership | 100% | |
Qianhong Agriculture [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Background | Established in the PRC on August 10, 2010 by Jiuxin Management Registered capital of RMB 10 million fully paid Carries out herb farming business | |
Ownership | 100% | |
Jiuzhou Pharmacy [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Background | Established in the PRC on September 9, 2003 Registered capital of RMB 5 million fully paid Operates the "Jiuzhou Grand Pharmacy" stores in Hangzhou | [1] |
Ownership | VIE by contractual arrangements (2) | [1],[2] |
Jiuzhou Clinic [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Background | Established in the PRC as a general partnership on October 10, 2003 | [1] |
Ownership | VIE by contractual arrangements (2) | [1],[2] |
Linjia Medical [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Background | Established in the PRC in September27, 2017 51% held by Jiuzhou Pharmacy Registered capital of RMB 20 million Operates local clinics | |
Ownership | VIE by contractual arrangements as a controlled subsidiary of Jiuzhou Pharmacy (2) | [2] |
Operation | Operates a medical clinic adjacent to one of Jiuzhou Pharmacy's stores | [1] |
Jiuzhou Service [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Background | Established in the PRC on November 2, 2005 Registered capital of RMB 500,000 fully paid Operates a medical clinic adjacent to one of Jiuzhou Pharmacy's stores | [1] |
Ownership | VIE by contractual arrangements (2) | [1],[2] |
Jiuxin Medicine [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Background | Established in PRC on December 31, 2003 Acquired by Jiuzhou Pharmacy in August 2011 Registered capital of RMB 10 million fully paid Carries out pharmaceutical distribution services | [1] |
Ownership | VIE by contractual arrangements as a wholly | [1],[2] |
Jiutong Medical [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Background | Established in the PRC on December 20, 2011 by Renovation Registered capital of $2.6 million fully paid Currently has no operation | |
Ownership | 100% | |
Shouantang Bio [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Background | Established in the PRC in October, 2014 by Shouantang Technology 100% held by Shouantang Technology Registered capital of RMB 1,000,000 fully paid Sells nutritional supplements under its own brand name | |
Ownership | 100% | |
Jiuyi Technology [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Background | Established in the PRC on September 10, 2015 100% held by Renovation Technical support to online pharmacy | |
Ownership | 100% | |
Kahamadi Bio [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Background | Established in the PRC in May 2016 49% held by Shouantang Bio Registered capital of RMB 10 million Develop brand name for nutritional supplements | |
Ownership | 49% | |
[1] | Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service had been under the common control of Mr. Lei Liu and Ms. Li Qi, the three shareholders (the “Owners”) since their respective establishment dates, pursuant to agreements among the Owners to vote their interests in concert as memorialized in a voting rights agreement. Based on such voting agreement, the Company has determined that common control exists among these three companies. The Owners have operated these three companies in conjunction with one another since each company’s respective establishment date. Jiuxin Medicine is also deemed under the common control of the Owners as a subsidiary of Jiuzhou Pharmacy. | |
[2] | To comply with certain foreign ownership restrictions of pharmacy and medical clinic operators, Jiuxin Management entered into a series of contractual arrangements with Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service on August 1, 2009. These contractual arrangements are comprised of five agreements: a consulting services agreement, an operating agreement, an equity pledge agreement, a voting rights agreement and an option agreement. Because such agreements obligate Jiuxin Management to absorb all of the risks of loss from the activities of Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service, and enable the Company (through Jiuxin Management) to receive all of their expected residual returns, the Company accounts for each of the three companies (as well as subsidiaries of Jiuzhou Pharmacy) as a variable interest entity (“VIE”) under the accounting standards of the Financial Accounting Standards Board (“FASB”). Accordingly, the financial statements of Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service, as well as the subsidiaries under the control of Jiuzhou Pharmacy, Jiuxin Medicine and Shouantang Bio are consolidated into the financial statements of the Company. |
Liquidity (Details)
Liquidity (Details) | Jun. 03, 2020USD ($)$ / sharesshares | Apr. 15, 2019USD ($)$ / sharesshares | Mar. 31, 2021USD ($) | Mar. 31, 2021CNY (¥) |
Liquidity (Details) [Line Items] | ||||
Bank credit line from two local banks | $ 26,070,000 | |||
Two Credit Line Agreements [Member] | ||||
Liquidity (Details) [Line Items] | ||||
Bank credit line from two local banks | 410,000 | |||
Private Placement [Member] | ||||
Liquidity (Details) [Line Items] | ||||
Purchase of agreement of common stock shares (in Shares) | shares | 5,000,004 | 4,000,008 | ||
Common stock price, per share (in Dollars per share) | $ / shares | $ 2 | $ 2.50 | ||
Gross proceeds form private placement | $ 10,000,008 | $ 10,000,020 | ||
Jiuzhou Pharmacy [Member] | Two Credit Line Agreements [Member] | ||||
Liquidity (Details) [Line Items] | ||||
Bank credit line from two local banks | $ 7,653,850 | ¥ 50,000,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Apr. 01, 2019USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Voting ownership interest | 50.00% | ||||
Ownership percentage | 100.00% | ||||
Impairment charges (in Dollars) | $ 228,506 | $ 628,192 | |||
VAT percentage | 17.00% | ||||
Advertising and promotion costs (in Dollars) | $ 309,446 | 262,553 | |||
Foreign currency translation, description | The balance sheet amounts, with the exception of equity, at March 31, 2021 and 2020 were translated at 1 RMB to 0.1525 USD and at 1 RMB to 0.1410 USD, respectively. The average translation rates applied to income and cash flow statement amounts for years ended March 31, 2021 and 2020 were at 1 RMB to 0.1477 USD and at 1 RMB to 0.1436 USD, respectively. | ||||
Insurance covered by own bank | $ 79,600 | ||||
Deposits (in Dollars) | $ 34,602,819 | $ 30,974,714 | |||
Bank uncovered amount | $ 79,600 | ||||
Retained earnings (in Dollars) | $ 421,675 | $ 422,354 | |||
Weighted average remaining lease term | 2 years 6 months | ||||
Weighted average discount rate | 4.19% | ||||
Cost of Goods, Total [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Number of vendors | 2 | 2 | |||
Concentration risk, percentage | 42.90% | 50.40% | |||
Advances to Suppliers [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Number of vendors | 2 | 2 | |||
Concentrations risk, percentage | 10.00% | 10.00% | |||
Sales Revenue [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Concentration risk, percentage | 10.00% | 10.00% | |||
Accounts Receivable [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Concentration risk, percentage | 10.00% | 10.00% | |||
Minimum [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Notes payable maturity period | 6 months | ||||
Expiration date | 1 year | ||||
Minimum [Member] | Real site [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Term of agreement for operating leases | 3 years | ||||
Minimum [Member] | Short-term Debt [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Notes payable maturity period | 6 months | ||||
Maximum [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Notes payable maturity period | 9 months | ||||
Expiration date | 3 years | ||||
Maximum [Member] | Real site [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Term of agreement for operating leases | 10 years | ||||
Maximum [Member] | Short-term Debt [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Notes payable maturity period | 9 months | ||||
RMB [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Insurance covered by own bank | ¥ | ¥ 500,000 | ||||
Bank uncovered amount | ¥ | ¥ 500,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of fair values of derivative instruments | Mar. 31, 2021USD ($) |
Summary of Significant Accounting Policies (Details) - Schedule of fair values of derivative instruments [Line Items] | |
Cash, cash equivalents and restricted cash | $ 34,672,644 |
Financial assets available for sale | 91,472 |
Trade accounts receivable | 13,423,728 |
Notes receivable | 39,392 |
Other receivable | 5,051,960 |
Accounts payable | 29,895,830 |
Notes payable | 25,663,633 |
Other payable | 2,940,000 |
Long-term loan payable | 4,449,903 |
Total | 116,228,562 |
Active Market for Identical Assets (Level 1) [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of fair values of derivative instruments [Line Items] | |
Cash, cash equivalents and restricted cash | 34,672,644 |
Financial assets available for sale | |
Trade accounts receivable | 13,423,728 |
Notes receivable | 39,392 |
Other receivable | 5,051,960 |
Accounts payable | 29,895,830 |
Notes payable | |
Other payable | 2,940,000 |
Long-term loan payable | |
Total | 86,023,554 |
Observable Inputs (Level 2) [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of fair values of derivative instruments [Line Items] | |
Cash, cash equivalents and restricted cash | |
Financial assets available for sale | |
Trade accounts receivable | |
Notes receivable | |
Other receivable | |
Accounts payable | |
Notes payable | 25,663,633 |
Other payable | |
Long-term loan payable | 4,449,903 |
Total | 30,113,536 |
Unobservable Inputs (Level 3) [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of fair values of derivative instruments [Line Items] | |
Cash, cash equivalents and restricted cash | |
Financial assets available for sale | 91,472 |
Trade accounts receivable | |
Notes receivable | |
Other receivable | |
Accounts payable | |
Notes payable | |
Other payable | |
Long-term loan payable | |
Total | $ 91,472 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of revenue by major source in each segment - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Retail drugstores | ||
Total revenue | $ 133,134,633 | $ 117,327,689 |
Retail drugstores [Member] | ||
Retail drugstores | ||
Total revenue | 76,098,975 | 74,081,237 |
Online Pharmacy [Member] | ||
Retail drugstores | ||
Total revenue | 22,485,919 | 13,541,215 |
Drug Wholesale [Member] | ||
Retail drugstores | ||
Total revenue | 34,549,739 | 29,705,237 |
Prescription Drugs [Member] | Retail drugstores [Member] | ||
Retail drugstores | ||
Total revenue | 27,162,968 | 26,045,423 |
Prescription Drugs [Member] | Online Pharmacy [Member] | ||
Retail drugstores | ||
Total revenue | 8,243,099 | 1,447,469 |
Prescription Drugs [Member] | Drug Wholesale [Member] | ||
Retail drugstores | ||
Total revenue | 27,477,087 | 24,857,708 |
OTC Drugs [Member] | Retail drugstores [Member] | ||
Retail drugstores | ||
Total revenue | 30,524,057 | 31,532,248 |
OTC Drugs [Member] | Online Pharmacy [Member] | ||
Retail drugstores | ||
Total revenue | 7,559,585 | 5,721,638 |
OTC Drugs [Member] | Drug Wholesale [Member] | ||
Retail drugstores | ||
Total revenue | 6,242,630 | 4,196,841 |
Nutritional Supplements [Member] | Retail drugstores [Member] | ||
Retail drugstores | ||
Total revenue | 6,863,559 | 6,013,622 |
Nutritional Supplements [Member] | Online Pharmacy [Member] | ||
Retail drugstores | ||
Total revenue | 956,013 | 742,809 |
Nutritional Supplements [Member] | Drug Wholesale [Member] | ||
Retail drugstores | ||
Total revenue | 151,657 | 205,881 |
TCM [Member] | Retail drugstores [Member] | ||
Retail drugstores | ||
Total revenue | 4,560,968 | 5,325,008 |
TCM [Member] | Online Pharmacy [Member] | ||
Retail drugstores | ||
Total revenue | 295,410 | 266,638 |
TCM [Member] | Drug Wholesale [Member] | ||
Retail drugstores | ||
Total revenue | 218,758 | 314,769 |
Sundry Products [Member] | Retail drugstores [Member] | ||
Retail drugstores | ||
Total revenue | 1,379,917 | 1,312,293 |
Sundry Products [Member] | Online Pharmacy [Member] | ||
Retail drugstores | ||
Total revenue | 1,967,174 | 2,082,601 |
Sundry Products [Member] | Drug Wholesale [Member] | ||
Retail drugstores | ||
Total revenue | 28,377 | 43,854 |
Medical Devices [Member] | Retail drugstores [Member] | ||
Retail drugstores | ||
Total revenue | 5,607,506 | 3,852,643 |
Medical Devices [Member] | Online Pharmacy [Member] | ||
Retail drugstores | ||
Total revenue | 3,464,638 | 3,280,060 |
Medical Devices [Member] | Drug Wholesale [Member] | ||
Retail drugstores | ||
Total revenue | $ 431,230 | $ 86,184 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of receivables and contract liabilities from contracts with customers - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of receivables and contract liabilities from contracts with customers [Abstract] | ||
Trade receivable(included in accounts receivable, net) | $ 13,423,728 | $ 9,770,656 |
Contract liabilities (included in accrued expenses) | $ 1,470,217 | $ 1,106,982 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of cash equivalents and restricted cash - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Schedule of cash equivalents and restricted cash [Abstract] | |||
Cash and cash equivalents | $ 22,045,628 | $ 16,176,318 | |
Restricted cash | 12,627,016 | 14,806,288 | |
Cash, cash equivalents and restricted cash | $ 34,672,644 | $ 30,982,606 | $ 24,745,202 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of estimates future expected losses on accounts receivable and other receivables | 12 Months Ended | |
Mar. 31, 2021USD ($) | ||
Summary of Significant Accounting Policies (Details) - Schedule of estimates future expected losses on accounts receivable and other receivables [Line Items] | ||
Allowance for credit losses as of March 31, 2020 | $ 2,771,741 | |
Current expected credit losses opening balance impact on retained earning | 421,675 | |
Credit loss expense | 180,561 | [1] |
Ending allowance for credit losses | 3,373,977 | |
Accounts Receivable [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of estimates future expected losses on accounts receivable and other receivables [Line Items] | ||
Allowance for credit losses as of March 31, 2020 | 2,264,070 | |
Current expected credit losses opening balance impact on retained earning | 189,295 | |
Credit loss expense | 427,148 | [1] |
Ending allowance for credit losses | 2,880,513 | |
Other Receivables [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of estimates future expected losses on accounts receivable and other receivables [Line Items] | ||
Allowance for credit losses as of March 31, 2020 | 507,671 | |
Current expected credit losses opening balance impact on retained earning | 232,380 | |
Credit loss expense | (246,587) | [1] |
Ending allowance for credit losses | $ 493,464 | |
[1] | The amount represents the reserve made in the current year on estimated potential loss, but not includes the direct write-off of certain collectible from local government insurance agency. |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property and equipment | 12 Months Ended |
Mar. 31, 2021 | |
Buildings [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Estimated useful lives of property and equipment | 35 years |
Minimum [Member] | Leasehold improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Minimum [Member] | Motor vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Minimum [Member] | Office equipment & furniture [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Maximum [Member] | Leasehold improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Estimated useful lives of property and equipment | 10 years |
Maximum [Member] | Motor vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Estimated useful lives of property and equipment | 5 years |
Maximum [Member] | Office equipment & furniture [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Estimated useful lives of property and equipment | 5 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets | 12 Months Ended |
Mar. 31, 2021 | |
Land use rights [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets [Line Items] | |
Estimated useful life of intangible assets | 50 years |
Software [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets [Line Items] | |
Estimated useful life of intangible assets | 3 years |
License [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets [Line Items] | |
Estimated useful life of intangible assets, description | Infinite |
Financial Assets Available Fo_2
Financial Assets Available For Sale (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Financial Assets Available For Sale (Details) [Line Items] | ||
Financial assets available for sale | $ 91,472 | $ 157,159 |
Percentage of shares | 51.00% | |
Songlu Pharmaceutical [Member] | ||
Financial Assets Available For Sale (Details) [Line Items] | ||
Invested total amount | $ 91,472 | |
Percentage of shares | 0.50% | |
RMB [Member] | ||
Financial Assets Available For Sale (Details) [Line Items] | ||
Financial assets available for sale | $ 600,000 | $ 1,114,500 |
RMB [Member] | Songlu Pharmaceutical [Member] | ||
Financial Assets Available For Sale (Details) [Line Items] | ||
Invested total amount | $ 600,000 |
Trade Accounts Receivable (Deta
Trade Accounts Receivable (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Receivables [Abstract] | ||
Accounts receivable written off | $ 118,349 | $ 212,338 |
Trade accounts receivable pledged as collateral for borrowings | $ 509,109 | $ 627,055 |
Trade Accounts Receivable (De_2
Trade Accounts Receivable (Details) - Schedule of trade accounts receivable - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of trade accounts receivable [Abstract] | ||
Accounts receivable | $ 16,304,240 | $ 12,034,726 |
Less: allowance for doubtful accounts | (2,880,513) | (2,264,070) |
Trade accounts receivable, net | $ 13,423,728 | $ 9,770,656 |
Other Current Assets (Details)
Other Current Assets (Details) - Schedule of other current assets - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of other current assets [Abstract] | |||
Prepaid rental expenses (1) | [1] | $ 1,441,879 | $ 1,364,975 |
Prepaid and other current assets | 118,240 | 163,565 | |
Total | $ 1,560,119 | $ 1,528,540 | |
[1] | The balance as of March 31, 2021 and March 31, 2020 includes short-term refundable rental security deposits. |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Total depreciation expense | $ 1,516,257 | $ 1,828,514 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Total | $ 24,160,138 | $ 22,913,475 | |
Less: Accumulated depreciation | (15,211,112) | (13,059,852) | |
Impairment | [1] | (2,399,991) | (2,219,883) |
Property and equipment, net | 6,549,035 | 7,633,740 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 6,357,748 | 5,880,627 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 9,595,801 | 9,209,136 | |
Farmland Development Cost [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 1,823,257 | 1,686,430 | |
Office Equipment and Furniture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 6,006,534 | 5,632,955 | |
Motor Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 376,798 | $ 504,327 | |
[1] | The variance of impairment from from March 31, 2020 to March 31, 2021 is solely caused by exchange rate variance. |
Long-Term Investment (Details)
Long-Term Investment (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Kahamadi Bio [Member] | ||
Long-Term Investment (Details) [Line Items] | ||
Investment percentage | 49.00% | |
Suffered loss | $ 6,217 | |
Zhetong Medical [Member] | ||
Long-Term Investment (Details) [Line Items] | ||
Investment percentage | 39.00% | |
Jiuzhou Pharmacy [Member] | ||
Long-Term Investment (Details) [Line Items] | ||
Injected funds | $ 1,443,752 |
Long-Term Investment (Details)
Long-Term Investment (Details) - Schedule of long-term investment - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | |||
Advance to suppliers, net | $ 3,981,986 | $ 2,544,451 | |
Kahamadi Bio [Member] | |||
Debt Instrument [Line Items] | |||
Advance to suppliers, net | [1] | 6,217 | |
Zhetong Medical [Member] | |||
Debt Instrument [Line Items] | |||
Advance to suppliers, net | [2] | $ 3,981,986 | $ 2,538,234 |
[1] | It represents 49% investment in Kahamadi Bio. The investment is recorded using the equity method. Kahamadi Bio suffered loss of $6,217 in the year ended March 31, 2021. | ||
[2] | It represents 39% investment in Zhejiang Zhetong Medical Co., Ltd. (“Zhetong Medical”). Zhetong Medical was established in March 2020 to target potential acquisitions or to cooperate with local pharmacies. By attracting more funds from local investors, the Company expects to continue growing its local network in the future. In the year ended March 31, 2021, Jiuzhou Pharmacy injected funds of approximately $1,443,752 into Zhetong Medical. The investment is recorded based on equity method. |
Advances to Suppliers (Details)
Advances to Suppliers (Details) - Schedule of advance to suppliers - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of advance to suppliers [Abstract] | ||
Advance to suppliers | $ 421,963 | $ 2,198,863 |
Less: reserve for vendor non-performance on advances | (1,024,063) | |
Advance to suppliers, net | $ 421,963 | $ 1,174,800 |
Inventory (Details)
Inventory (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 16,972,965 | $ 12,247,004 |
Farmland Assets (Details) - Sch
Farmland Assets (Details) - Schedule of farmland assets - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of farmland assets [Abstract] | |||
Farmland assets | $ 2,387,136 | $ 2,177,606 | |
Less: Impairment | [1] | (1,551,709) | (1,435,259) |
Farmland assets, net | $ 835,427 | $ 742,347 | |
[1] | The difference between the recorded impairment loss as of December 31, 2020 and March 31, 2020 is primarily due to the exchange rate variance over years. There is no leasehold impairment expense in fiscal 2020 and 2021. |
Long Term Deposits, Landlords (
Long Term Deposits, Landlords (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Long Term Deposits [Abstract] | ||
Long term deposits | $ 1,546,764 | $ 1,456,384 |
Other Noncurrent Assets (Detail
Other Noncurrent Assets (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Noncurrent Assets [Abstract] | ||
Description of lease prepayment life | extends the life of the lease to January 31, 2060. | |
Forest land use rights Impairment | $ 228,506 | |
Amortization of prepayment for lease of land use right | $ 52,073 | $ 26,975 |
Other Noncurrent Assets (Deta_2
Other Noncurrent Assets (Details) - Schedule of other noncurrent assets - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of other noncurrent assets [Abstract] | |||
Forest land use rights | [1] | $ 785,569 | $ 994,558 |
Others | 70,822 | 52,205 | |
Total | $ 856,391 | $ 1,046,763 | |
[1] | The prepayment for lease of forest land use rights is made to a local government in connection with an operating land lease agreement. The land is currently used to cultivate Ginkgo trees. The forest rights certificate from the local village extends the life of the lease to January 31, 2060. In the year ended March 31, 2021, based on the evaluation of the forest land use rights, the Company recorded an impairment of $228,506. |
Other Noncurrent Assets (Deta_3
Other Noncurrent Assets (Details) - Schedule of amortizations of the prepayment for lease of land use right | Mar. 31, 2021USD ($) |
Schedule of amortizations of the prepayment for lease of land use right [Abstract] | |
2022 | $ 40,046 |
2023 | 40,046 |
2024 | 40,046 |
2025 | 40,046 |
2026 | 40,046 |
Thereafter | $ 585,339 |
Leases (Details)
Leases (Details) | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Leases (Details) [Line Items] | |
Operating lease cost (in Dollars) | $ 6,340,671 |
Minimum [Member] | |
Leases (Details) [Line Items] | |
Operating lease initial terms | 3 years |
Maximum [Member] | |
Leases (Details) [Line Items] | |
Operating lease initial terms | 10 years |
Leases (Details) - Schedule of
Leases (Details) - Schedule of cash flow information related to leases | Mar. 31, 2021USD ($) |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows paid for operating leases | $ 6,340,671 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of condensed balance sheet related to leases - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Operating leases: | ||
Operating lease right-of-use assets | $ 16,778,729 | $ 21,711,376 |
Current portion of operating lease liabilities | 788,171 | 981,090 |
Long-term operating lease liabilities | 15,118,083 | $ 19,049,575 |
Total operating lease liabilities | $ 15,906,254 | |
Weighted average remaining lease term | ||
Operating leases | 2 years 6 months | |
Weighted average discount rate | ||
Operating leases | 4.19% |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of lease liabilities under operating leases | Mar. 31, 2021USD ($) |
Schedule of lease liabilities under operating leases [Abstract] | |
2021 | $ 796,610 |
2021 | 5,397,928 |
2022 | 3,837,359 |
2023 | 2,788,609 |
2024 | 1,697,653 |
Thereafter | 2,190,613 |
Total lease payments | 16,708,772 |
Less: imputed interest | (802,518) |
Total lease liabilities | $ 15,906,254 |
Intangible assets (Details)
Intangible assets (Details) | 12 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021CNY (¥) | |
Intangible assets (Details) [Line Items] | |||
Amortization expense | $ 296,414 | $ 254,303 | |
Lease terms, description | The forest rights certificate from the local village extends the life of the lease to January 31, 2060. | ||
SAP system [Member] | |||
Intangible assets (Details) [Line Items] | |||
Intangible assets, net | $ 766,748 | ¥ 5,029,372 | |
Internet Clinic Diagnosis System [Member] | |||
Intangible assets (Details) [Line Items] | |||
Intangible assets, net | 409,904 | 2,688,709 | |
Chronic Disease Management System [Member] | |||
Intangible assets (Details) [Line Items] | |||
Intangible assets, net | 17,742 | ¥ 116,379 | |
Forest Land Use Rights [Member] | |||
Intangible assets (Details) [Line Items] | |||
Intangible assets, net | $ 228,506 |
Intangible assets (Details) - S
Intangible assets (Details) - Schedule of net intangible assets - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets | $ 5,159,204 | $ 4,678,631 | |
Less: accumulated amortization | (964,046) | (667,633) | |
Less: impairment | [1] | (667,102) | (617,038) |
Intangible assets, net | 3,528,056 | 3,393,960 | |
License [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets | [2] | 2,466,684 | 2,220,512 |
Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets | [3] | 1,205,857 | 1,083,024 |
Land use rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets | [4] | $ 1,486,663 | $ 1,375,095 |
[1] | In the year ended March 31, 2020, the Company evaluated the licenses of insurance applicable drugstores acquired in the past based on the discounted positive cash value. Due to the stricter government insurance policy in the fourth quarter of fiscal year 2020, the value of these licenses has declined. As a result, the Company recorded an impairment in the fourth quarter of fiscal 2020. In the year ended March 31, 2020, we evaluated the use rights of the forest land, which is currently used to cultivate Ginkgo trees. The forest rights certificate from the local village extends the life of the lease to January 31, 2060. Based on the evaluation of the forest land use rights, the Company recorded an impairment of $228,506. | ||
[2] | This represents the fair value of the licenses of insurance applicable drugstores acquired from a variety of drugstores such as Sanhao Pharmacy and several local stores. The licenses allow patients to pay by using insurance cards at stores. The stores are reimbursed from the Human Resource and Social Security Department of Hangzhou City. In 2014, the Company acquired Sanhao Pharmacy, a drugstore chain. In September 2017, the Company acquired several new stores for the purpose of the Municipal Social Medical Reimbursement Qualification Certificates. On January 9, 2020, the Company acquired a local drugstore chain. The acquired drugstores ceased their stores’ business and liquidate all of the stores’ accounts after Jiuzhou Pharmacy acquired them. In March 2020, the drugstore chain has dissolved and its certificates were transferred to new stores opened at the same time. In the year ended March 31, 2021, the Company acquired four single drugstores which have been liquidated after the acquisition. Jiuzhou Pharmacy then opened four new stores with the four licenses of local government medical insurance reimbursement program. | ||
[3] | They are primarily the SAP ERP system, the Internet Clinic Diagnosis Terminal system and the Chronic Disease Management system. In 2017, we have installed a leading ERP system, SAP from Germany. SAP is a well-known management system used by many fortune 500 companies. It is being amortized over three years since its installation. In 2020, we have installed an internet Clinic Diagnosis System used to strengthen our ability to perform online diagnosis which may increase more customer spending and a Chronic Disease Management System used to better manage and monitor our members’ health. As of March 31, 2021, the SAP system has a net value of $766,748 (RMB5,029,372), the internet Clinic Diagnosis System has a net value of approximately $409,904 (RMB 2,688,709), the Chronic Disease Management System has a net value of approximately $17,742 (RMB116,379). | ||
[4] | In July 2013, the Company purchased the land use rights of a plot of land in Lin’an, Hangzhou, intended for the establishment of an herb processing plant in the future. However, as the Company’s farming business in Lin’an has not grown, the Company does not expect completion of the plant in the near future. |
Notes Payable (Details)
Notes Payable (Details) | 12 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021CNY (¥) | Mar. 31, 2020CNY (¥) | |
Notes Payable (Details) [Line Items] | ||||
Restricted cash | $ 5,640,000 | |||
Bank credit line facilities available for borrowing | 410,000 | |||
Deposit amount | 6,860,000 | |||
Line of credit total | 26,070,000 | |||
Hangzhou United Bank [Member] | ||||
Notes Payable (Details) [Line Items] | ||||
Notes payable | 25,660,000 | |||
Bank credit line facilities available for borrowing | 13,570,000 | |||
Notes Payable to Banks [Member] | Hangzhou United Bank [Member] | ||||
Notes Payable (Details) [Line Items] | ||||
Notes payable | 25,663,633 | $ 26,605,971 | ¥ 168,336,897 | ¥ 188,677,437 |
Restricted cash | 12,501,401 | 14,596,179 | 82,001,136 | 103,509,456 |
Notes Payable to Banks [Member] | Hangzhou United Bank One [Member] | ||||
Notes Payable (Details) [Line Items] | ||||
Restricted cash | $ 6,860,430 | $ 8,763,958 | ¥ 45,000,000 | ¥ 62,150,000 |
Term of deposit | 3 years | 3 years |
Notes Payable (Details) - Sched
Notes Payable (Details) - Schedule of credit facilities with banks - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Short-term Debt [Line Items] | |||
Notes payable | [1] | $ 25,663,633 | $ 25,951,673 |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 10/09/19 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Apr. 9, 2020 | |
Notes payable | [1] | 3,478,259 | |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 11/06/19 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | May 6, 2020 | |
Notes payable | [1] | 164,582 | |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 12/05/19 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Jun. 5, 2020 | |
Notes payable | [1] | 3,106,474 | |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 12/31/19 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Jun. 30, 2020 | |
Notes payable | [1] | 2,289,308 | |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 01/06/20 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Jul. 6, 2020 | |
Notes payable | [1] | 129,457 | |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 02/19/20 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Aug. 19, 2020 | |
Notes payable | [1] | 5,105,096 | |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 03/10/20 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Sep. 10, 2020 | |
Notes payable | [1] | 5,324,871 | |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 10/10/20 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Apr. 10, 2021 | |
Notes payable | [1] | $ 820,847 | |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 11/09/20 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | May 9, 2021 | |
Notes payable | [1] | $ 5,715,776 | |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 12/17/20 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Jun. 17, 2021 | |
Notes payable | [1] | $ 1,233,353 | |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 12/25/20 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Jun. 25, 2021 | |
Notes payable | [1] | $ 990,951 | |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 12/30/20 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Jun. 30, 2021 | |
Notes payable | [1] | $ 1,300,222 | |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 02/05/21 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Aug. 5, 2021 | |
Notes payable | [1] | $ 3,075,672 | |
Jiuzhou Pharmacy [Member] | Hangzhou United Bank [Member] | 03/12/21 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Sep. 12, 2021 | |
Notes payable | [1] | $ 5,437,655 | |
Jiuxin Medicine [Member] | Hangzhou United Bank [Member] | 12/26/19 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Jun. 26, 2020 | |
Notes payable | [1] | 1,371,992 | |
Jiuxin Medicine [Member] | Hangzhou United Bank [Member] | 12/31/19 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Jun. 30, 2020 | |
Notes payable | [1] | 3,943,776 | |
Jiuxin Medicine [Member] | Hangzhou United Bank [Member] | 03/31/20 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Sep. 30, 2020 | |
Notes payable | [1] | 1,692,156 | |
Jiuxin Medicine [Member] | Hangzhou United Bank [Member] | 12/07/20 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Jun. 7, 2021 | |
Notes payable | [1] | $ 2,419,382 | |
Jiuxin Medicine [Member] | Hangzhou United Bank [Member] | 12/30/20 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Jun. 30, 2021 | |
Notes payable | [1] | $ 4,503,905 | |
Jiuxin Medicine [Member] | Hangzhou United Bank [Member] | 03/12/21 [Member] | |||
Short-term Debt [Line Items] | |||
Maturity date | [1] | Sep. 12, 2021 | |
Notes payable | [1] | $ 165,870 | |
[1] | As of March 31, 2021, the Company had $25,663,633 (RMB 168,336,897) of notes payable from HUB. The Company is required to hold restricted cash in the amount of $12,501,401 (RMB 82,001,136) with HUB as collateral against these bank notes. Included in the restricted cash is a total of $6,860,430 three-year deposit (RMB 45,000,000) deposited into HUB as a collateral for current and future notes payable from HUB. As of March 31, 2020, the Company had $26,605,971 (RMB188,677,437) of notes payable from HUB. The Company is required to hold restricted cash in the amount of $14,596,179 (RMB 103,509,456) with HUB as collateral against these bank notes. Included in the restricted cash is a total of $8,763,958 three-year deposit (RMB 62,150,000) deposited into HUB as a collateral for current and future notes payable from HUB. |
Loan Payable (Details)
Loan Payable (Details) - USD ($) | Dec. 11, 2019 | Aug. 02, 2019 | Mar. 31, 2021 | Mar. 31, 2020 |
Loan Payable [Abstract] | ||||
Remaining Loan Balance | $ 4,449,903 | |||
Monthly repayment due | $ 2,557,634 | $ 2,287,742 | ||
Loans payable, description | the Company borrowed $717,810 and $6,460,290 from Haihui Commercial Factoring (Tianjin) Co. Ltd. (“Haihui Commercial”), respectively. After deducting processing fee and deposits which are refundable at the end of loan period, the Company received $617,317 and $5,878,864 respectively. | the Company borrowed $717,810 and $6,460,290 from Haihui Commercial Factoring (Tianjin) Co. Ltd. (“Haihui Commercial”), respectively. After deducting processing fee and deposits which are refundable at the end of loan period, the Company received $617,317 and $5,878,864 respectively. |
Taxes (Details)
Taxes (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate based on forecasted | (1.10%) | ||
Effective tax rate | (0.40%) | (0.30%) | |
Adjustment rate | (0.40%) | (0.30%) | |
Unrecognized tax benefits (in Dollars) | $ 0 |
Taxes (Details) - Schedule of r
Taxes (Details) - Schedule of reconciliation of the income tax provision at the federal statutory rate and the effective rate is | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of reconciliation of the income tax provision at the federal statutory rate and the effective rate is [Abstract] | ||
U.S. Statutory rates | 21.00% | 21.00% |
Foreign income not recognized in the U.S. | (21.00%) | (21.00%) |
China income taxes | 25.00% | 25.00% |
Change in valuation allowance | (25.00%) | (25.00%) |
Non-deductible expenses-permanent difference | (0.40%) | (0.30%) |
Effective tax rate | (0.40%) | (0.30%) |
Postretirement Benefits (Detail
Postretirement Benefits (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Employment benefits and pension contribution | $ 1,076,811 | $ 1,341,167 |
Related Party Transactions an_3
Related Party Transactions and Arrangements (Details) | 1 Months Ended | 12 Months Ended | |||
Apr. 28, 2018USD ($) | Apr. 28, 2018CNY (¥) | Mar. 31, 2021USD ($) | Mar. 31, 2021CNY (¥) | Mar. 31, 2020USD ($) | |
Related Party Transactions and Arrangements (Details) [Line Items] | |||||
Ownership percentage | 51.00% | 51.00% | |||
Chief Executive Officer [Member] | |||||
Related Party Transactions and Arrangements (Details) [Line Items] | |||||
Rent expenses | $ 27,342 | $ 26,582 | |||
Hangzhou Kangzhou Biotech [Member] | |||||
Related Party Transactions and Arrangements (Details) [Line Items] | |||||
Sale of percentage | 10.00% | 10.00% | |||
Total proceed | $ 75,643 | ||||
Jiuxin Medicine [Member] | |||||
Related Party Transactions and Arrangements (Details) [Line Items] | |||||
Sale of percentage | 10.00% | 10.00% | |||
Total price | $ 77,410 | ||||
RMB [Member] | Hangzhou Kangzhou Biotech [Member] | |||||
Related Party Transactions and Arrangements (Details) [Line Items] | |||||
Total proceed | ¥ | ¥ 507,760 | ¥ 507,760 |
Related Party Transactions an_4
Related Party Transactions and Arrangements (Details) - Schedule of amounts payable to related parties - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 | |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Due to a director and CEO : | [1] | $ 445,305 | $ 490,218 |
[1] | Due to foreign exchange restrictions, the Company’s director and CEO, Mr. Lei Liu personally lent U.S. dollars to the Company to facilitate its payments of expenses in the United States. |
Warrants (Details)
Warrants (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 19, 2015 | Mar. 31, 2021 | Jun. 01, 2020 | Mar. 31, 2020 | |
Warrants (Details) [Line Items] | ||||
Purchase of warrants investors | 672,000 | |||
Stock purchase price per share (in Dollars per share) | $ 3.10 | |||
Fair value of warrants (in Dollars) | $ 64,090 | |||
Gain (loss) on warrants (in Dollars) | $ 64,090 | |||
Warrant [Member] | ||||
Warrants (Details) [Line Items] | ||||
Purchase of warrants investors | 600,000 | |||
Stock purchase price per share (in Dollars per share) | $ 3.10 | |||
Warrants exercisable date | Jan. 19, 2016 | |||
Maturity date | Jan. 18, 2021 | |||
Percentage of stock sold in offering | 6.00% | |||
Issuance of warrants to placement agent | 72,000 |
Warrants (Details) - Schedule o
Warrants (Details) - Schedule of estimated fair value of warrants using the binominal pricing model - $ / shares | 12 Months Ended | ||
Mar. 31, 2021 | [1] | Mar. 31, 2020 | |
Schedule of estimated fair value of warrants using the binominal pricing model [Abstract] | |||
Stock price (in Dollars per share) | $ 1.77 | ||
Exercise price (in Dollars per share) | $ 3.10 | ||
Annual dividend yield | |||
Expected term (years) | 295 days | ||
Risk-free interest rate | 0.71% | ||
Expected volatility | 62.08% | ||
[1] | As of March 31, 2021, the warrants had been expired and had not been exercised. |
Employee Deposits (Details)
Employee Deposits (Details) | Mar. 31, 2021USD ($) | Mar. 31, 2021CNY (¥) | Mar. 31, 2020USD ($) | Mar. 31, 2020CNY (¥) |
Employee Deposits (Details) [Line Items] | ||||
Reclassifies deposits financial liability | $ | $ 0 | $ 70,507 | ||
RMB [Member] | ||||
Employee Deposits (Details) [Line Items] | ||||
Reclassifies deposits financial liability | ¥ | ¥ 0 | ¥ 500,000 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) | Jun. 03, 2020USD ($)$ / sharesshares | Dec. 31, 2020shares | Apr. 15, 2019USD ($)$ / sharesshares | Jun. 28, 2018shares | Mar. 30, 2018shares | Nov. 18, 2014$ / sharesshares | Mar. 31, 2021USD ($)shares | Mar. 31, 2018USD ($) | Jun. 01, 2020$ / sharesshares | Mar. 31, 2020shares |
Stockholder's Equity (Details) [Line Items] | ||||||||||
Exercise of warrants | 25,000 | |||||||||
Warrants per share (in Dollars per share) | $ / shares | $ 3.10 | |||||||||
Issued of common stock | 41,751,790 | 25,000 | 32,936,786 | |||||||
Compensation committee cancelled shares | 225,000 | |||||||||
Restricted common stock granted | 3,790,000 | |||||||||
Service compensation expense (in Dollars) | $ | $ 3,941,600 | |||||||||
Statutory accounts percentage | 10.00% | |||||||||
Reserve fund percentage | 50.00% | |||||||||
Stock Compensation Plan Three [Member] | ||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||
Number of granted shares | 3,947,100 | |||||||||
Share based compensation expense (in Dollars) | $ | $ 5,328,585 | |||||||||
Employee Stock Option [Member] | ||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||
Exercise price of stock option (in Dollars per share) | $ / shares | $ 2.50 | |||||||||
Number of granted shares | 967,000 | |||||||||
Number of directors, officers and employees in a group | 46 | |||||||||
Period for options exercisable from the vesting date | 5 years | |||||||||
Maturity date | Nov. 17, 2022 | |||||||||
Common Stock [Member] | ||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||
Warrants to purchase | 300,000 | 240,000 | ||||||||
Exercise price of stock option (in Dollars per share) | $ / shares | $ 3.125 | |||||||||
Warrant [Member] | ||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||
Exercise price of stock option (in Dollars per share) | $ / shares | $ 2.57 | |||||||||
Investor [Member] | Common Stock [Member] | ||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||
Warrants to purchase | 5,000,004 | 4,000,008 | ||||||||
Common stock, par value (in Dollars per share) | $ / shares | $ 2 | $ 2.50 | ||||||||
Proceeds from private placement (in Dollars) | $ | $ 10,000,008 | $ 10,000,020 | ||||||||
Investor [Member] | Warrant [Member] | ||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||
Warrants to purchase | 3,750,003 | 3,000,006 | ||||||||
Aggregate purchase of number of shares | 6.50% | 6.00% | ||||||||
Chief Executive Officer [Member] | ||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||
Aggregate issuances shares | 675,000 | |||||||||
Performance based compensation exemption, description | The Tax Cuts and Jobs Act of 2017 removed the 162(m) qualified performance based compensation exemption to the $1 million cap on deductions for compensation to covered executives. |
Loss Per Share (Details)
Loss Per Share (Details) | 12 Months Ended |
Mar. 31, 2021shares | |
Loss Per Share (Details) [Line Items] | |
Antidilutive securities excluded from calculation of diluted earnings per share | 967,000 |
Private Placement [Member] | |
Loss Per Share (Details) [Line Items] | |
Antidilutive securities excluded from calculation of diluted earnings per share | 6,750,009 |
Investor [Member] | |
Loss Per Share (Details) [Line Items] | |
Antidilutive securities excluded from calculation of diluted earnings per share | 540,000 |
Loss Per Share (Details) - Sche
Loss Per Share (Details) - Schedule of basic and diluted earnings per share - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of basic and diluted earnings per share [Abstract] | ||
Net loss attributable to controlling interest (in Dollars) | $ (8,119,862) | $ (5,813,369) |
Weighted average shares used in basic computation (in Shares) | 40,780,762 | 32,816,567 |
Diluted effect of stock options and warrants (in Shares) | ||
Weighted average shares used in diluted computation (in Shares) | 40,780,762 | 32,816,567 |
Loss per share – Basic: | ||
Net loss before noncontrolling interest | $ (0.20) | $ (0.18) |
Add: Net loss attributable to noncontrolling interest | ||
Net loss attributable to controlling interest | (0.20) | (0.18) |
Loss per share – Diluted: | ||
Net income before noncontrolling interest | (0.20) | (0.18) |
Add: Net loss attributable to noncontrolling interest | ||
Net loss attributable to controlling interest | $ (0.20) | $ (0.18) |
Segments (Details)
Segments (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Segments (Details) - Schedule o
Segments (Details) - Schedule of segment of the continuing operations - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 133,134,633 | $ 117,327,689 |
Cost of goods | 103,890,824 | 91,801,259 |
Gross profit | 29,243,809 | 25,526,430 |
Selling expenses | 26,954,914 | 23,793,603 |
General and administrative expenses | 10,897,629 | 8,108,377 |
Impairment of long-lived assets | 228,506 | 628,192 |
Loss from operations | (8,837,240) | (7,003,742) |
Depreciation and amortization | 1,750,890 | 2,082,817 |
Total capital expenditures | 392,788 | 1,409,646 |
Retail drugstores [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 76,098,975 | 74,081,237 |
Cost of goods | 53,093,226 | 53,244,302 |
Gross profit | 23,005,749 | 20,836,935 |
Selling expenses | 21,975,048 | 19,434,860 |
General and administrative expenses | 9,088,152 | 5,505,303 |
Impairment of long-lived assets | 628,192 | |
Loss from operations | (8,057,451) | (4,731,420) |
Depreciation and amortization | 1,709,049 | 2,042,951 |
Total capital expenditures | 392,788 | 1,406,470 |
Online Pharmacy [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 22,485,919 | 13,541,215 |
Cost of goods | 20,146,730 | 12,106,510 |
Gross profit | 2,339,189 | 1,434,705 |
Selling expenses | 2,770,997 | 2,148,709 |
General and administrative expenses | 288,890 | 243,283 |
Impairment of long-lived assets | ||
Loss from operations | (720,698) | (957,287) |
Depreciation and amortization | ||
Total capital expenditures | ||
Drug Wholesale [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 34,549,739 | 29,705,237 |
Cost of goods | 30,650,868 | 26,450,447 |
Gross profit | 3,898,871 | 3,254,790 |
Selling expenses | 2,208,869 | 2,210,034 |
General and administrative expenses | 1,487,303 | 2,359,791 |
Impairment of long-lived assets | ||
Loss from operations | 202,699 | (1,315,035) |
Depreciation and amortization | 41,841 | 39,866 |
Total capital expenditures | 3,176 | |
Herbs Farming [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | ||
Cost of goods | ||
Gross profit | ||
Selling expenses | ||
General and administrative expenses | 33,284 | |
Impairment of long-lived assets | 228,506 | |
Loss from operations | (261,790) | |
Depreciation and amortization | ||
Total capital expenditures |
Segments (Details) - Schedule_2
Segments (Details) - Schedule of net revenue from external customers through its retail drugstores by main products - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Retail drugstores [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | $ 76,098,975 | $ 74,081,237 |
Online Pharmacy [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 22,485,919 | 13,541,215 |
Wholesale [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 34,549,739 | 29,705,237 |
Prescription Drugs [Member] | Retail drugstores [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 27,162,968 | 26,045,423 |
Prescription Drugs [Member] | Online Pharmacy [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 8,243,099 | 1,447,469 |
Prescription Drugs [Member] | Wholesale [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 27,477,087 | 24,857,708 |
OTC Drugs [Member] | Retail drugstores [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 30,524,057 | 31,532,248 |
OTC Drugs [Member] | Online Pharmacy [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 7,559,585 | 5,721,638 |
OTC Drugs [Member] | Wholesale [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 6,242,630 | 4,196,841 |
Nutritional Supplements [Member] | Retail drugstores [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 6,863,559 | 6,013,622 |
Nutritional Supplements [Member] | Online Pharmacy [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 956,013 | 742,809 |
Nutritional Supplements [Member] | Wholesale [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 151,657 | 205,881 |
TCM [Member] | Retail drugstores [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 4,560,968 | 5,325,008 |
TCM [Member] | Online Pharmacy [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 295,410 | 266,638 |
TCM [Member] | Wholesale [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 218,758 | 314,769 |
Sundry Products [Member] | Retail drugstores [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 1,379,917 | 1,312,293 |
Sundry Products [Member] | Online Pharmacy [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 1,967,174 | 2,082,601 |
Sundry Products [Member] | Wholesale [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 28,377 | 43,854 |
Medical Devices [Member] | Retail drugstores [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 5,607,506 | 3,852,643 |
Medical Devices [Member] | Online Pharmacy [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | 3,464,638 | 3,280,060 |
Medical Devices [Member] | Wholesale [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue from external customers | $ 431,230 | $ 86,184 |