American Nano Silicon (ANNO) 10-Q 15 May 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Mar. 31, 2014	15-May-14
Document and Entity Information	'	'
Entity Registrant Name	'American Nano Silicon Technologies, Inc.	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Entity Central Index Key	'0001415917	'
Current Fiscal Year End Date	'--09-30	'
Entity Common Stock, Shares Outstanding	'	46,917,445
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Entity Incorporation, State Country Name	'California	'
Entity Incorporation, Date of Incorporation	6-Sep-96	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Sep. 30, 2013
Current assets:	'	'
Cash and cash equivalents	$309,069	$75,901
Accounts receivable, net	260,401	338,312
Inventory, net of reserve	453,991	433,811
Advance Payments	168,426	289,368
Prepaid expense and other receivables	73,232	66,042
Prepaid value-added tax	132,095	123,157
Total current assets	1,397,214	1,326,591
Property, plant and equipment, net	22,274,465	22,786,880
Other assets:	'	'
Land use rights, net	997,955	1,013,848
Total other assets	997,955	1,013,848
Total Assets	24,669,634	25,127,319
Current liabilities:	'	'
Accounts payable	91,877	187,605
Short term loans	7,443,358	5,345,800
Taxes payable	37,223	55,926
Due to related parties-current portion	3,675,806	5,500,997
Long term loans-current portion	2,305,673	2,438,187
Accrued expenses and other payables	912,982	1,042,734
Total current liabilities	14,466,919	14,571,249
Long-term liabilities	'	'
Long term loans	4,870,661	1,020,224
Due to related parties	'	1,415,868
Total Long Term Liabilities	4,870,661	2,436,092
Total liabilities	19,337,580	17,007,341
Stockholders' Equity	'	'
Common stock, $0.0001 par value, 200,000,000 shares authorized; 46,917,445 shares issued and outstanding as of March 31, 2014 and September 30, 2013, respectively	4,692	4,692
Additional paid-in-capital	14,598,480	14,474,258
Accumulated other comprehensive income	2,289,607	2,291,219
Accumulated deficit	-11,560,725	-8,650,191
Total Stockholders' Equity	5,332,054	8,119,978
Total Liabilities and Stockholders' Equity	$24,669,634	$25,127,319

CONSOLIDATED_BALANCE_SHEETS_PA

CONSOLIDATED BALANCE SHEETS PARENTHETICAL (USD $)	Mar. 31, 2014	Sep. 30, 2013
CONSOLIDATED BALANCE SHEETS PARENTHETICAL	'	'
Common stock par value	$0.00	$0.00
Common stock shares authorized	200,000,000	200,000,000
Common stock shares issued	46,917,445	46,917,445
Common stock shares outstanding	46,917,445	46,917,445

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Revenues	'	'	'	'
Revenues	$244,654	$101,092	$590,524	$134,488
Cost of Goods Sold	643,743	138,816	1,393,703	170,492
Gross Loss	-399,089	-37,724	-803,179	-36,004
Operating Expenses	'	'	'	'
Research and development expense	81,664	15,917	98,147	15,917
Selling, general and administrative	313,941	419,705	558,609	1,179,925
Total operating expense	395,605	435,622	656,756	1,195,842
Loss from operations	-794,694	-473,346	-1,459,935	-1,231,846
Other Income( Expense)	'	'	'	'
Interest expense - related party	-113,060	-29,627	-268,776	-59,117
Interest expense, net	-760,706	-398,527	-1,185,214	-636,954
Change in fair value of derivative liabilities	'	5,309	'	363,709
Other income	1,555	1,472	3,532	223,888
Total other income(expense)	-872,211	-421,373	-1,450,458	-108,474
Loss Before Income Taxes	-1,666,905	-894,719	-2,910,393	-1,340,320
Provision for Income Taxes	43	'	141	83
Net Loss	-1,666,948	-894,719	-2,910,534	-1,340,403
Other Comprehensive Loss	'	'	'	'
Foreign currency translation adjustment	-49,480	111,365	-1,612	49,531
Comprehensive Loss	($1,716,428)	($783,354)	($2,912,146)	($1,290,872)
Loss per common share	'	'	'	'
Loss per common share - Basic and diluted	($0.04)	($0.02)	($0.06)	($0.03)
Weighted average number of common shares	'	'	'	'
Weighted average number of common shares - Basic and diluted	46,917,445	39,061,840	46,917,445	39,061,840

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net Loss	($2,910,534)	($1,340,403)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Change in fair value of derivative liabilities	'	-363,709
Depreciation and amortization	743,359	724,097
Imputed interest expense for non interest bearing related party loans	124,222	59,117
Changes in operating assets and liabilities:	'	'
Change in accounts receivable	77,602	-92,316
Change in inventory	-21,390	-87,048
Change in advances to suppliers	121,044	-220,800
Change in prepaid expense and other receivables	-7,403	-753,683
Change in accounts payable	-95,913	-98,018
Change in taxes payable	-27,994	-132,395
Change in accrued expenses and other payables	-128,114	184,999
Cash used in operating activities	-2,125,121	-2,120,159
Cash flows from investing activities:	'	'
Additions to property and equipment	-270,415	-34,360
Cash used in investing activities	-270,415	-34,360
Cash Flows From Financing Activities	'	'
Proceeds from bank note payable	'	716,265
Proceeds (repayment) of related parties loans, net	-3,245,907	141,835
Proceeds(repayment) from short term loans	2,125,023	430,555
Proceeds (repayment) of long term loans	3,751,455	911,266
Cash provided by financing activities	2,630,571	2,199,921
Effect of exchange rate changes on cash and cash equivalents	-1,867	7,107
Increase in cash and cash equivalents	233,168	52,509
Cash and Cash Equivalents - Beginning of the period	75,901	56,661
Cash and Cash Equivalents - End of the period	309,069	109,170
SUPPLEMENTAL CASH FLOW INFORMATION:	'	'
Cash paid for interest	1,299,232	504,003
Cash paid for income taxes	$141	$83

Note_1_Organization_and_Basis_

Note 1 - Organization and Basis of Presentation	6 Months Ended
	Mar. 31, 2014
Notes	'
Note 1 - Organization and Basis of Presentation	'
	Note 1 – Organization and Nature of Business
	American Nano-Silicon Technologies, Inc. (the “Company” or “ANNO”) was incorporated in the State of California on September 6, 1996. Since 2006, the Company has been primarily engaged in the business of manufacturing and distributing refined consumer chemical products through its subsidiaries, Nanchong Chunfei Nano-Silicon Technologies Co., Ltd. (“Nanchong Chunfei”), Sichuan Chunfei Refined Chemicals Co., Ltd. (“Chunfei Chemicals”), and Sichuan Hedi Veterinary Medicines Co., Ltd. (“Hedi Medicines”).
	On May 28, 2013, the Company assigned 10% of the equity in Chunfei Chemicals to each of Mr. Fachun Pu, Mr. Qiwei Zhang and Mr. Jianbo Liu, and assigned 5% of the equity in Hedi Medicines to  Mr. Fachun Pu, and the assignees paid to the Company cash equal to the registered equity amount.  At the same time, Messrs Pu, Zhang and Liu agreed to hold those equity interests solely for the benefit of the Company, to pay over to the Company any distributions or dividends they receive, to vote their interests as directed by the Company, and to resell the interests to the Company at its option for cash equal to the registered equity amount.

Note_2_Summary_of_Significant_

Note 2 - Summary of Significant Accounting Policies	6 Months Ended
	Mar. 31, 2014
Notes	'
Note 2 - Summary of Significant Accounting Policies	'
	Note 2 – Summary of Significant Accounting Policies
	Basis Of Presentation and Consolidation
	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United Stated of America (“US GAAP”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
	The unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of March 31, 2014 and the results of operations and cash flows for the six month periods ended March 31, 2014 and 2013. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and six months ended March 31, 2014 is not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending September 30, 2014. The balance sheet at September 30, 2013 has been derived from the audited financial statements at that date.
	Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended September 30, 2013 as included in our Annual Report on Form 10-K.
	Reclassifications
	Certain amounts of prior period were reclassified for presentation purposes.
	Fair Value of Financial Instruments
	The Company adopted the provisions of Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:
	Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.
	Level 2- Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.
	Level 3- Inputs are unobservable inputs which reflect the reporting entity’s own assumptions.
	The carrying amounts reported in the balance sheets for cash, taxes payable, construction security deposit, due to related parties, prepaid expenses, other receivables, advance to suppliers, short-term loan, accounts payable, advance from customers, other payables and accrued expenses approximate their fair market value based on the short-term nature of these instruments. The carrying value of the long-term debt approximates fair value based on market rates and terms currently available to the Company.
	Taxation
	Income Taxes
	The Company accounts for income tax under the provisions of ASC 740-10-25, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns. Deferred income taxes are recognized for all significant temporary differences between tax and financial statements bases of assets and liabilities. Valuation allowances will also be established against net deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.
	Uncertain Tax Positions
	During the course of business, there are certain transactions and calculations for which the ultimate tax determination is uncertain. We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes may be due. These reserves are established when we believe that certain positions might be challenged despite our belief that our tax return positions are fully supportable. We adjust these reserves in light of changing facts and circumstances, such as the outcome of a tax audit or changes in the tax law. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate.
	Value Added Tax
	Value added tax is imposed on goods sold in or imported in the PRC. Value added tax payable in the People’s Republic of China is charged on an aggregated basis at a rate of 13% or 17% (depending on the type of goods involved) on the full price collected for the goods sold or, in the case of taxable services provided, at a rate of 17% on the charges for the taxable services provided, but excluding, in respect of both goods and services, any amount paid in respect of value added tax included in the price or charges, and less any deductible value added tax already paid by the taxpayer on purchases of goods and services in the same financial year. The value added tax refundable for the Company as of March 31, 2014 and September 30, 2013 was $132,095 and $123,157, respectively.
	Earnings (Loss) Per Share
	Earnings per share are calculated in accordance with the FASB ASC 260, “Earnings per share.” Basic earnings per share are based upon the weighted average number of common shares outstanding, but excluding shares issued as compensation that have not yet vested. Diluted earnings per share are based on the assumption that all dilutive convertible shares and stock options were converted or exercised, and that all unvested shares have vested. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.
	Concentration of Credit Risk
	Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of advances to suppliers and other receivables arising from its normal business activities. The Company does not require collateral or other security to support these receivables. The company routinely assesses the financial strength of its debtors and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts.
	Foreign Currency Translation
	The Company’s principal country of operations is the PRC. The financial position and results of operations of the Company are determined using the local currency, Renminbi (“RMB”), as the functional currency. Foreign currency transactions are translated at the applicable rates of exchange in effect at the transaction dates. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. Revenues and expenses are translated at the average exchange rates in effect during the reporting period. Equity accounts are translated in the historical exchange rate when the transactions took place.
	Asset and liability accounts at March 31, 2014 and September 30, 2013 were translated at 6.1652 RMB to $1.00 and at 6.1501 RMB to $1.00, respectively, which were the exchange rates on the balance sheet dates. Equity accounts were stated at their historical rate. The average translation rates applied to the statements of income and cash flows for the six months ended March 31, 2014 and 2013 were 6.1237 RMB and 6.2826 RMB to $1.00, respectively.
	RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand.
	Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders' equity as "Accumulated Other Comprehensive Income". Gain or loss from translation adjustments is included in the statement of operations.

Note_3_Going_Concern

Note 3 - Going Concern	6 Months Ended
	Mar. 31, 2014
Notes	'
Note 3 - Going Concern	'
	Note 3 – Going Concern
	As shown in the accompanying financial statements, the Company’s current liabilities exceed its current assets by $13.1 million as of March 31, 2014. The Company suspended manufacturing operations in May 2011 as part of an effort to relocate the production facilities. The Company resumed limited production on January 2, 2012. The current cash and inventory level will not be sufficient to support the Company’s resumption of its normal operations and repayments of the loans. In addition, the Company has suffered negative cash flows for the past two years. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The Company will need additional funds to meet its operating and financing obligations until sufficient cash flows are generated from anticipated production to sustain operations and to fund future development and financing obligations. We expect, but provide no assurance, that affiliate companies owned by the Company’s largest shareholder and president, Mr. Pu Fachun, will continue to provide necessary funding for the Company’s normal operations. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
	13,100,000

Note_4_Inventory

Note 4 - Inventory	6 Months Ended
	Mar. 31, 2014
Notes	'
Note 4 - Inventory	'
	Note 4 – Inventory
	The inventory as of March 31, 2014 and September 30, 2013 consisted of the following:
		31-Mar-14				September 30,
						2013
	Raw materials	$	100,092	$	128,669
	Packing supplies		42,375		40,393
	Work in process		143,705		60,032
	Finished goods		167,819		204,717
	Total	$	453,991	$	433,811

Note_5_Related_Party_Transacti

Note 5 - Related Party Transactions	6 Months Ended
	Mar. 31, 2014
Notes	'
Note 5 - Related Party Transactions	'
	Note 5 – Related Party Transactions
	The Company periodically borrows money from its shareholders to finance the operations.  The details of loans from related parties are as follows:
		31-Mar-14		September 30,
				2013
	Short term:
	Chunfei Real Estate	$	903,364	$	856,163
	Sichuan Chunfei Daily Chemical		466,817		364,723
	Sichuan Shubei Feed Co.Ltd.		62,771		16,260
	Sichuan Lanmate Technology Co. Ltd.		-		2,614,811
	Jian Zhou, a shareholder		32,440		-
	Pu Fachun		2,210,414		1,649,040
	Total	$	3,675,806	$	5,500,997
	Long term:
	Pu Fachun	$	-	$	1,415,868
	Total	$	-	$	1,415,868
	Sichuan Chunfei Daily Chemicals Co. Ltd (“Daily Chemical”) and Sichuan Chunfei Real Estate (“Chunfei Real Estate”) are owned by Mr. Pu Fachun. Sichuan Shubei Feed Co.Ltd. is owned by Mr. Pu Xidi, son of Mr. Pu Fachun. Sichuan Lanmate Technology Co., Ltd. is owned by Mr. Zhang Qiwei, a member of the Company’s Board of Directors.
	The Company recorded imputed interest at 6% per annum and recorded $42,551 and $124,222 for non-interest bearing related party loans for the three and six months ended March 31, 2014 respectively.
	The Company recorded imputed interest of $29,627 and $59,117 for non interest bearing related party loans for the three months and six months ended March 31, 2013.

Note_6_Short_Term_Loans

Note 6 - Short Term Loans	6 Months Ended
	Mar. 31, 2014
Notes	'
Note 6 - Short Term Loans	'
	Note 6 – Short Term Loans
	The short term loans as of March 31, 2014 and September 30, 2013 consisted of the following:
		31-Mar-14		September 30,
				2013
	a) Loan payable to Nanchong City Bureau of Finance due on demand at fixed interest rate of 0.465% per month	$	648,800	$	650,400
	b) Loan payable to Nanchong Commercial Bank due on January 24, 2014, which was paid in full in January 2014, at fixed interest rate of 6.6% per annum, guaranteed by a third party		-		813,000
	c) Loan payable to Nanchong Commercial Bank due on  July 1, 2014 and March 7, 2015, at fixed interest rate of 6.6% and 6.9% per annum, guaranteed by a third party		1,622,000		813,000
	d) Loan payable to Nanchong Bank of Communications due on July 1, 2014, at floating interest rate, guaranteed by third parties, Mr. Pu Fachun, Zhang Xuchu and Feng Ting, Hedi Medicines		811,000		813,000
	e) Individual loans from unrelated parties, which are due on demand and bearing interests from 0% to 72% per annum		4,361,558		2,256,400
	Total Short Term Loans	$	7,443,358	$	5,345,800
	The Company pledged its land use right and its building and equipment to a third party to secure the bank loans.

Note_7_Long_Term_Loans

Note 7 - Long Term Loans	6 Months Ended
	Mar. 31, 2014
Notes	'
Note 7 - Long Term Loans	'
	Note 7 – Long Term Loans
	The long term loans as of March 31, 2014 and September 30, 2013 consisted of the following:
		March 31,		September 30,
		2014		2013
	a) Individual loans from unrelated parties at monthly interest rate of 0%-6%	$	2,372,534	$	3,358,411
	b) Individual loans from various investors, bearing interest of 12% per annum and due on July 1, 2015, as extended		100,000		100,000
	c) Loan payable to Jialing Rural Credit Cooperative Union due on December 19, 2015 at a interest rate of 10.764% per annum, secured by Chunfei Chemical’s real property and Chunfei Real Estate’s real property		4,703,800		-
	Less: current portion of long term loans		-2,305,673		-2,438,187
	Total Long Term Loans	$	4,870,661	$	1,020,224

Note_8_Income_Taxes

Note 8 - Income Taxes	6 Months Ended
	Mar. 31, 2014
Notes	'
Note 8 - Income Taxes	'
	Note 8 – Income Taxes
	The Company’s subsidiaries are governed by the Income Tax Law of the People’s Republic of China.  Their income is taxed at the 25% statutory rate. Hedi Medicine has been taxed at a flat rate of 260 RMB per quarter since calendar 2012.
	The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for the six months ended March 31, 2014 and 2013:
		Six Month Ended March 31,
		2014			2013
	US statutory income tax rate		35	%		35	%
	Non-taxable item in US		0	%		-6.9	%
	Change in valuation allowance - US		-35	%		-28.1	%
	China income tax statutory statutory rate		25	%		25	%
	Change in valuation allowance - China		-25	%		-25	%
	Effective rate		-			-
	As of March 31, 2014, net operating loss carry forwards for United States and China income tax purposes amounted to $2.5 million and $13.1 million, which may be available to reduce future years' taxable income. These carry forwards will expire, if not utilized, beginning in 2028 through 2033 for U.S tax purpose and 2017 to 2018 for China income tax purposes. Management believes that the realization of the benefits arising from the losses recognized in the US is uncertain due to the Company's business operations being primarily conducted in China and foreign income not being recognized in the United States for federal income tax purposes. It is also uncertain that the China business operations will generate taxable income in the future. Accordingly, the Company has provided a 100% valuation allowance as of the balance sheet dates, for the temporary differences related to the loss carry-forwards.
	The following table reconciles the changes in deferred tax asset for the six months ended March 31, 2014 and 2013:
	$2,500,000
	$13,100,000
		March 31,			March 31,
		2014			2013
	United States:
	Deferred tax asset-beginning	$	855,293		$	658,622
	Addition: loss carry-forward		10,651			185,631
	Valuation allowance-beginning		(855,293	)		(658,622	)
	Addition: valuation allowance		(10,651	)		(185,631	)
	Deferred tax asset net	$	-		$	-
	China:
	Deferred tax asset-beginning	$	2,084,623		$	185,246
	Addition: loss carry-forward		719,990			91,494
	Valuation allowance-beginning		(2,084,623	)		(185,246	)
	Addition: valuation allowance		(719,990	)		(91,494	)
	Deferred tax asset net	$	-		$	-
	The Company’s open tax years for its federal and state income tax returns are for the tax years after 2010. These tax returns are subject to examination by the tax authorities.

Note_9_Earnings_loss_Per_Share

Note 9 - Earnings (loss) Per Share	6 Months Ended
	Mar. 31, 2014
Notes	'
Note 9 - Earnings (loss) Per Share	'
	Note 9 – Earnings (Loss) Per Share
	The Company presents earnings (loss) per share on a basic and diluted basis. Basic earnings (loss) per share has been computed by dividing net earnings by the weighted average number of shares outstanding. Diluted earnings (loss) per share has been computed by dividing net earnings by the weighted average number of shares outstanding including the dilutive effect of equity securities. For the three and six months ended March 31, 2014, the weighted average number of shares calculated for diluted EPS excludes the potential common stock that would be exercised under the warrants granted to investors because of their anti-dilutive effect.
	The following is a reconciliation of the basic and diluted earnings (loss) per share computation for the three months ended March 31, 2014 and 2013:
	Three Months Ended March 31,
		2014			2013
	Net loss	$	(1,666,948	)	$	(894,719	)
	Weighted average common shares (denominator for basic loss per share)		46,917,445			39,061,840
	Effect of dilutive securities: Warrants		-			-
	Weighted average common shares (denominator for diluted loss per share)		46,917,445			39,061,840
	Basic and diluted loss per share	$	(0.04	)	$	(0.02	)
	The following is a reconciliation of the basic and diluted earnings (loss) per share computation for the six months ended March 31, 2014 and 2013:
	Six Months Ended March 31,
		2014			2013
	Net loss	$	(2,910,534	)	$	(1,340,403	)
	Weighted average common shares (denominator for basic loss per share)		46,917,445			39,061,840
	Effect of dilutive securities: Warrants		-			-
	Weighted average common shares (denominator for diluted loss per share)		46,917,445			39,061,840
	Basic and diluted loss per share	$	(0.06	)	$	(0.03	)

Note_10_Risk_Factors

Note 10 - Risk Factors	6 Months Ended
	Mar. 31, 2014
Notes	'
Note 10 - Risk Factors	'
	Note 10 – Risk Factors
	Concentrations
	For the six months ended March 31, 2014, two customers accounted for 72.9% and 10% of total sales.  For the three months ended March 31, 2014, one customer accounted for 80.3% of total sales.
	We generated very limited sales and made very limited purchases in the three and six months ended March 31, 2013. Therefore we did not rely on any particular customer or vendor for the period.
	None of the vendors and customers mentioned above is a related party to the Company.
	Operations in the PRC
	The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and the legal environments in the PRC as well as by the general state of the PRC’s economy. The Company’s business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

Note_11_Commitment_and_Conting

Note 11 - Commitment and Contingencies	6 Months Ended
	Mar. 31, 2014
Notes	'
Note 11 - Commitment and Contingencies	'
	Note 11 – Commitment and Contingencies
	LITIGATION
	During the 2013 fiscal year, Jian Zhou, a shareholder, commenced a legal action against American Nano Silicon Technologies, Inc.  Mr. Zhou alleges that he is entitled to 857,142 shares of American Nano common stock in connection with the acquisition of Nanchong Chunfei by American Nano in 2007.  In response to the allegation, American Nano has asserted that all of the shares to which Mr. Zhou was entitled were issued to him. The trial court has dismissed Mr. Zhou’s claim, and he has appealed the dismissal to the court of appeals.

Note_12_Subsequent_Event

Note 12 - Subsequent Event	6 Months Ended
	Mar. 31, 2014
Notes	'
Note 12 - Subsequent Event	'
	NOTE 12 –SUBSEQUENT EVENTS
	The Company has evaluated subsequent events for purposes of recognition or disclosure through the date these financial statements were issued, and has determined that there was no material event that occurred subsequent to March 31, 2014.

Note_2_Summary_of_Significant_1

Note 2 - Summary of Significant Accounting Policies: Basis of Accounting (Policies)	6 Months Ended
	Mar. 31, 2014
Policies	'
Basis of Accounting	'
	Basis Of Presentation and Consolidation
	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United Stated of America (“US GAAP”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
	The unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of March 31, 2014 and the results of operations and cash flows for the six month periods ended March 31, 2014 and 2013. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and six months ended March 31, 2014 is not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending September 30, 2014. The balance sheet at September 30, 2013 has been derived from the audited financial statements at that date.
	Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended September 30, 2013 as included in our Annual Report on Form 10-K.

Note_2_Summary_of_Significant_2

Note 2 - Summary of Significant Accounting Policies: Reclassifications (Policies)	6 Months Ended
	Mar. 31, 2014
Policies	'
Reclassifications	'
	Reclassifications
	Certain amounts of prior period were reclassified for presentation purposes.

Note_2_Summary_of_Significant_3

Note 2 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)	6 Months Ended
	Mar. 31, 2014
Policies	'
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	The Company adopted the provisions of Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:
	Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.
	Level 2- Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.
	Level 3- Inputs are unobservable inputs which reflect the reporting entity’s own assumptions.
	The carrying amounts reported in the balance sheets for cash, taxes payable, construction security deposit, due to related parties, prepaid expenses, other receivables, advance to suppliers, short-term loan, accounts payable, advance from customers, other payables and accrued expenses approximate their fair market value based on the short-term nature of these instruments. The carrying value of the long-term debt approximates fair value based on market rates and terms currently available to the Company.

Note_2_Summary_of_Significant_4

Note 2 - Summary of Significant Accounting Policies: Income Taxes (Policies)	6 Months Ended
	Mar. 31, 2014
Policies	'
Income Taxes	'
	Income Taxes
	The Company accounts for income tax under the provisions of ASC 740-10-25, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns. Deferred income taxes are recognized for all significant temporary differences between tax and financial statements bases of assets and liabilities. Valuation allowances will also be established against net deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.

Note_2_Summary_of_Significant_5

Note 2 - Summary of Significant Accounting Policies: Uncertain Tax Positions (Policies)	6 Months Ended
	Mar. 31, 2014
Policies	'
Uncertain Tax Positions	'
	Uncertain Tax Positions
	During the course of business, there are certain transactions and calculations for which the ultimate tax determination is uncertain. We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes may be due. These reserves are established when we believe that certain positions might be challenged despite our belief that our tax return positions are fully supportable. We adjust these reserves in light of changing facts and circumstances, such as the outcome of a tax audit or changes in the tax law. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate.

Note_2_Summary_of_Significant_6

Note 2 - Summary of Significant Accounting Policies: Value Added Tax (Policies)	6 Months Ended
	Mar. 31, 2014
Policies	'
Value Added Tax	'
	Value Added Tax
	Value added tax is imposed on goods sold in or imported in the PRC. Value added tax payable in the People’s Republic of China is charged on an aggregated basis at a rate of 13% or 17% (depending on the type of goods involved) on the full price collected for the goods sold or, in the case of taxable services provided, at a rate of 17% on the charges for the taxable services provided, but excluding, in respect of both goods and services, any amount paid in respect of value added tax included in the price or charges, and less any deductible value added tax already paid by the taxpayer on purchases of goods and services in the same financial year. The value added tax refundable for the Company as of March 31, 2014 and September 30, 2013 was $132,095 and $123,157, respectively.

Note_2_Summary_of_Significant_7

Note 2 - Summary of Significant Accounting Policies: Earnings (loss) Per Share (Policies)	6 Months Ended
	Mar. 31, 2014
Policies	'
Earnings (loss) Per Share	'
	Earnings (Loss) Per Share
	Earnings per share are calculated in accordance with the FASB ASC 260, “Earnings per share.” Basic earnings per share are based upon the weighted average number of common shares outstanding, but excluding shares issued as compensation that have not yet vested. Diluted earnings per share are based on the assumption that all dilutive convertible shares and stock options were converted or exercised, and that all unvested shares have vested. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Note_2_Summary_of_Significant_8

Note 2 - Summary of Significant Accounting Policies: Concentration of Credit Risk (Policies)	6 Months Ended
	Mar. 31, 2014
Policies	'
Concentration of Credit Risk	'
	Concentration of Credit Risk
	Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of advances to suppliers and other receivables arising from its normal business activities. The Company does not require collateral or other security to support these receivables. The company routinely assesses the financial strength of its debtors and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts.

Note_2_Summary_of_Significant_9

Note 2 - Summary of Significant Accounting Policies: Foreign Currency Translation (Policies)	6 Months Ended
	Mar. 31, 2014
Policies	'
Foreign Currency Translation	'
	Foreign Currency Translation
	The Company’s principal country of operations is the PRC. The financial position and results of operations of the Company are determined using the local currency, Renminbi (“RMB”), as the functional currency. Foreign currency transactions are translated at the applicable rates of exchange in effect at the transaction dates. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. Revenues and expenses are translated at the average exchange rates in effect during the reporting period. Equity accounts are translated in the historical exchange rate when the transactions took place.
	Asset and liability accounts at March 31, 2014 and September 30, 2013 were translated at 6.1652 RMB to $1.00 and at 6.1501 RMB to $1.00, respectively, which were the exchange rates on the balance sheet dates. Equity accounts were stated at their historical rate. The average translation rates applied to the statements of income and cash flows for the six months ended March 31, 2014 and 2013 were 6.1237 RMB and 6.2826 RMB to $1.00, respectively.
	RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand.
	Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders' equity as "Accumulated Other Comprehensive Income". Gain or loss from translation adjustments is included in the statement of operations.

Note_4_Inventory_Schedule_of_I

Note 4 - Inventory: Schedule of Inventory, Current (Tables)	6 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Inventory, Current	'
		31-Mar-14				September 30,
						2013
	Raw materials	$	100,092	$	128,669
	Packing supplies		42,375		40,393
	Work in process		143,705		60,032
	Finished goods		167,819		204,717
	Total	$	453,991	$	433,811

Note_5_Related_Party_Transacti1

Note 5 - Related Party Transactions: Schedule of Related Party Transactions (Tables)	6 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Related Party Transactions	'
		31-Mar-14		September 30,
				2013
	Short term:
	Chunfei Real Estate	$	903,364	$	856,163
	Sichuan Chunfei Daily Chemical		466,817		364,723
	Sichuan Shubei Feed Co.Ltd.		62,771		16,260
	Sichuan Lanmate Technology Co. Ltd.		-		2,614,811
	Jian Zhou, a shareholder		32,440		-
	Pu Fachun		2,210,414		1,649,040
	Total	$	3,675,806	$	5,500,997
	Long term:
	Pu Fachun	$	-	$	1,415,868
	Total	$	-	$	1,415,868

Note_6_Short_Term_Loans_Schedu

Note 6 - Short Term Loans: Schedule of Debt (Tables)	6 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Debt	'
		31-Mar-14		September 30,
				2013
	a) Loan payable to Nanchong City Bureau of Finance due on demand at fixed interest rate of 0.465% per month	$	648,800	$	650,400
	b) Loan payable to Nanchong Commercial Bank due on January 24, 2014, which was paid in full in January 2014, at fixed interest rate of 6.6% per annum, guaranteed by a third party		-		813,000
	c) Loan payable to Nanchong Commercial Bank due on  July 1, 2014 and March 7, 2015, at fixed interest rate of 6.6% and 6.9% per annum, guaranteed by a third party		1,622,000		813,000
	d) Loan payable to Nanchong Bank of Communications due on July 1, 2014, at floating interest rate, guaranteed by third parties, Mr. Pu Fachun, Zhang Xuchu and Feng Ting, Hedi Medicines		811,000		813,000
	e) Individual loans from unrelated parties, which are due on demand and bearing interests from 0% to 72% per annum		4,361,558		2,256,400
	Total Short Term Loans	$	7,443,358	$	5,345,800

Note_7_Long_Term_Loans_Schedul

Note 7 - Long Term Loans: Schedule of Long Term Loans (Tables)	6 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Long Term Loans	'
		March 31,		September 30,
		2014		2013
	a) Individual loans from unrelated parties at monthly interest rate of 0%-6%	$	2,372,534	$	3,358,411
	b) Individual loans from various investors, bearing interest of 12% per annum and due on July 1, 2015, as extended		100,000		100,000
	c) Loan payable to Jialing Rural Credit Cooperative Union due on December 19, 2015 at a interest rate of 10.764% per annum, secured by Chunfei Chemical’s real property and Chunfei Real Estate’s real property		4,703,800		-
	Less: current portion of long term loans		-2,305,673		-2,438,187
	Total Long Term Loans	$	4,870,661	$	1,020,224

Note_8_Income_Taxes_Schedule_o

Note 8 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)	6 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Effective Income Tax Rate Reconciliation	'
		Six Month Ended March 31,
		2014			2013
	US statutory income tax rate		35	%		35	%
	Non-taxable item in US		0	%		-6.9	%
	Change in valuation allowance - US		-35	%		-28.1	%
	China income tax statutory statutory rate		25	%		25	%
	Change in valuation allowance - China		-25	%		-25	%
	Effective rate		-			-

Note_8_Income_Taxes_Schedule_o1

Note 8 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)	6 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Deferred Tax Assets and Liabilities	'
		March 31,			March 31,
		2014			2013
	United States:
	Deferred tax asset-beginning	$	855,293		$	658,622
	Addition: loss carry-forward		10,651			185,631
	Valuation allowance-beginning		(855,293	)		(658,622	)
	Addition: valuation allowance		(10,651	)		(185,631	)
	Deferred tax asset net	$	-		$	-
	China:
	Deferred tax asset-beginning	$	2,084,623		$	185,246
	Addition: loss carry-forward		719,990			91,494
	Valuation allowance-beginning		(2,084,623	)		(185,246	)
	Addition: valuation allowance		(719,990	)		(91,494	)
	Deferred tax asset net	$	-		$	-

Note_9_Earnings_loss_Per_Share1

Note 9 - Earnings (loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)	6 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Earnings Per Share, Basic and Diluted	'
	Three Months Ended March 31,
		2014			2013
	Net loss	$	(1,666,948	)	$	(894,719	)
	Weighted average common shares (denominator for basic loss per share)		46,917,445			39,061,840
	Effect of dilutive securities: Warrants		-			-
	Weighted average common shares (denominator for diluted loss per share)		46,917,445			39,061,840
	Basic and diluted loss per share	$	(0.04	)	$	(0.02	)
	The following is a reconciliation of the basic and diluted earnings (loss) per share computation for the six months ended March 31, 2014 and 2013:
	Six Months Ended March 31,
		2014			2013
	Net loss	$	(2,910,534	)	$	(1,340,403	)
	Weighted average common shares (denominator for basic loss per share)		46,917,445			39,061,840
	Effect of dilutive securities: Warrants		-			-
	Weighted average common shares (denominator for diluted loss per share)		46,917,445			39,061,840
	Basic and diluted loss per share	$	(0.06	)	$	(0.03	)

Note_1_Organization_and_Basis_1

Note 1 - Organization and Basis of Presentation (Details)	6 Months Ended
	Mar. 31, 2014
Details	'
Entity Incorporation, State Country Name	'California
Entity Incorporation, Date of Incorporation	6-Sep-96

Recovered_Sheet1

Note 2 - Summary of Significant Accounting Policies: Value Added Tax (Details) (USD $)	Mar. 31, 2014	Sep. 30, 2013
Details	'	'
Prepaid value-added tax	$132,095	$123,157

Recovered_Sheet2

Note 2 - Summary of Significant Accounting Policies: Foreign Currency Translation (Details)	Mar. 31, 2014	Sep. 30, 2013	Mar. 31, 2014	Mar. 31, 2013
			StatementsOfIncomeAndCashFlowMember	StatementsOfIncomeAndCashFlowMember
Foreign Currency Translation	6.1652	6.1501	6.1237	6.2826

Note_3_Going_Concern_Details

Note 3 - Going Concern (Details) (USD $)	6 Months Ended
	Mar. 31, 2014
Details	'
Working capital deficiency	$13,100,000

Note_4_Inventory_Schedule_of_I1

Note 4 - Inventory: Schedule of Inventory, Current (Details) (USD $)	Mar. 31, 2014	Sep. 30, 2013
Details	'	'
Inventory, Raw Materials, Gross	$100,092	$128,669
Packing Supplies	42,375	40,393
Inventory, Work in Process, Gross	143,705	60,032
Inventory, Finished Goods, Gross	167,819	204,717
Inventory, net of reserve	$453,991	$433,811

Note_5_Related_Party_Transacti2

Note 5 - Related Party Transactions: Schedule of Related Party Transactions (Details) (USD $)	Mar. 31, 2014	Sep. 30, 2013
Due to related parties-current portion	$3,675,806	$5,500,997
Due to related parties	'	1,415,868
Chunfei Real Estate	'	'
Due to related parties-current portion	903,364	856,163
Sichuan Chunfei Daily Chemical	'	'
Due to related parties-current portion	466,817	364,723
Sichuan Shubei Feed Co Ltd	'	'
Due to related parties-current portion	62,771	16,260
Sichuan Lanmate Technology	'	'
Due to related parties-current portion	'	2,614,811
Jian Zhou	'	'
Due to related parties-current portion	32,440	'
Pu Fachun	'	'
Due to related parties-current portion	2,210,414	1,649,040
Due to related parties	'	$1,415,868

Note_5_Related_Party_Transacti3

Note 5 - Related Party Transactions (Details) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Details	'	'	'	'
Imputed interest expense for non interest bearing related party loans	$42,551	$29,627	$124,222	$59,117

Note_6_Short_Term_Loans_Schedu1

Note 6 - Short Term Loans: Schedule of Debt (Details) (USD $)	Mar. 31, 2014	Sep. 30, 2013
Short term loans	$7,443,358	$5,345,800
Nanchong City Bureau	'	'
Short term loans	648,800	650,400
Nanchong Commercial Bank Note 1	'	'
Short term loans	'	813,000
Nanchong Commercial Bank Note 2	'	'
Short term loans	1,622,000	813,000
Nanchong Bank of Communications	'	'
Short term loans	811,000	813,000
Individual Loan Unrelated Party	'	'
Short term loans	$4,361,558	$2,256,400

Note_7_Long_Term_Loans_Schedul1

Note 7 - Long Term Loans: Schedule of Long Term Loans (Details) (USD $)	Mar. 31, 2014	Sep. 30, 2013
Long term loans	$4,870,661	$1,020,224
Long term loans-current portion	-2,305,673	-2,438,187
Individual Loan Unrelated Party	'	'
Long term loans	2,372,534	3,358,411
Individual Loan Various Unrelated Investors	'	'
Long term loans	100,000	100,000
Jialing Rural Credit Cooperative Union	'	'
Long term loans	$4,703,800	'

Note_8_Income_Taxes_Schedule_o2

Note 8 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details)	6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
UnitedStates	'	'
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%	35.00%
Non-taxable item	0.00%	-6.90%
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent	-35.00%	-28.10%
China	'	'
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	25.00%	25.00%
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent	-25.00%	-25.00%

Note_8_Income_Taxes_Details

Note 8 - Income Taxes (Details) (USD $)	Mar. 31, 2014
UnitedStates	'
Unrecognized Tax Benefits Resulting in Net Operating Loss Carryforward	$2,500,000
China	'
Unrecognized Tax Benefits Resulting in Net Operating Loss Carryforward	$13,100,000

Note_8_Income_Taxes_Schedule_o3

Note 8 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)	6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
UnitedStates	'	'
Deferred Tax Assets, Net, Current	$855,293	$658,622
Deferred Tax Assets, Operating Loss Carryforwards	10,651	185,631
Deferred Tax Assets, Valuation Allowance, Current	-855,293	-658,622
Valuation Allowance, Deferred Tax Asset, Change in Amount	-10,651	-185,631
China	'	'
Deferred Tax Assets, Net, Current	2,084,623	185,246
Deferred Tax Assets, Operating Loss Carryforwards	719,990	91,494
Deferred Tax Assets, Valuation Allowance, Current	-2,084,623	-185,246
Valuation Allowance, Deferred Tax Asset, Change in Amount	($719,990)	($91,494)

Note_9_Earnings_loss_Per_Share2

Note 9 - Earnings (loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Details	'	'	'	'
Net Loss	($1,666,948)	($894,719)	($2,910,534)	($1,340,403)
Weighted Average Number of Shares Outstanding, Basic	46,917,445	39,061,840	46,917,445	39,061,840
Weighted Average Number of Shares Outstanding, Diluted	46,917,445	39,061,840	46,917,445	39,061,840
Loss per common share - Basic and diluted	($0.04)	($0.02)	($0.06)	($0.03)

Note_10_Risk_Factors_Details

Note 10 - Risk Factors (Details)	3 Months Ended	6 Months Ended
	Mar. 31, 2014	Mar. 31, 2014
Details	'	'
Concentration Risk, Customer	'one customer accounted for 80.3% of total sales	'two customers accounted for 72.9% and 10% of total sales