Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Jan. 06, 2015 | Mar. 31, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | American Nano Silicon Technologies, Inc. | ||
Document Type | 10-K | ||
Document Period End Date | 30-Sep-14 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 1415917 | ||
Current Fiscal Year End Date | -21 | ||
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 | FY | ||
Entity Incorporation, State Country Name | State of California | ||
Entity Incorporation, Date of Incorporation | 6-Sep-96 | ||
Entity Public Float | $1,615,873 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Current assets: | ||
Cash and cash equivalents | $97,233 | $75,901 |
Accounts receivable, net | 577,303 | 338,312 |
Inventory, net of reserve | 397,094 | 433,811 |
Advance payments | 137,575 | 289,368 |
Prepaid expense and other receivables | 136,235 | 66,042 |
Prepaid value-added tax | 70,168 | 123,157 |
Total current assets | 1,415,608 | 1,326,591 |
Property, plant and equipment, net | 20,545,631 | 22,786,880 |
Other assets: | ||
Land use rights, net | 986,449 | 1,013,848 |
Total other assets | 986,449 | 1,013,848 |
Total Assets | 22,947,688 | 25,127,319 |
Current liabilities: | ||
Accounts payable | 234,686 | 187,605 |
Short term loans | 10,096,451 | 5,345,800 |
Taxes payable | 114,435 | 55,926 |
Due to related parties-current portion | 3,165,014 | 5,500,997 |
Long term loans-current portion | 1,508,465 | 2,438,187 |
Accrued expenses and other payables | 1,136,888 | 1,042,734 |
Total current liabilities | 16,255,939 | 14,571,249 |
Long-term liabilities | ||
Long term loans | 4,766,471 | 1,020,224 |
Due to related parties | 0 | 1,415,868 |
Total long term liabilities | 4,766,471 | 2,436,092 |
Total Liabilities | 21,022,410 | 17,007,341 |
Commitment and Contingencies | ||
Stockholders' Equity | ||
Common stock, $0.0001 par value, 200,000,000 shares authorized; 46,917,445 shares issued and outstanding as of September 30, 2014 and 2013, respectively | 4,692 | 4,692 |
Additional paid-in-capital | 14,640,456 | 14,474,258 |
Accumulated other comprehensive income | 2,297,685 | 2,291,219 |
Accumulated deficit | -15,017,555 | -8,650,191 |
Total Stockholders' Equity | 1,925,278 | 8,119,978 |
Total Liabilities and Stockholders' Equity | $22,947,688 | $25,127,319 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS PARENTHETICAL (USD $) | Sep. 30, 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_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||
Revenues | $1,763,076 | $798,390 |
Cost of Goods Sold | 3,187,251 | 2,108,917 |
Gross Loss | -1,424,175 | -1,310,527 |
Operating Expenses | ||
Research and development expense | 97,887 | 55,698 |
Selling, general and administrative | 1,175,504 | 1,368,670 |
Impairment of property, plant and equipment | 0 | 3,422,352 |
Total operating expense | 1,273,391 | 4,846,720 |
Loss from operations | -2,697,566 | -6,157,247 |
Other Income( Expense) | ||
Interest expense - related party | -433,820 | -473,194 |
Interest expense, net | -3,281,848 | -1,249,983 |
Change in fair value of derivative liabilities | 0 | 363,958 |
Other income | 46,011 | 229,346 |
Total other income(expense) | -3,669,657 | -1,129,873 |
Loss Before Income Taxes | -6,367,223 | -7,287,120 |
Provision(Credit) for Income Taxes | 141 | -115,026 |
Net Loss | -6,367,364 | -7,172,094 |
Other Comprehensive Loss | ||
Foreign currency translation adjustment | 6,466 | 236,504 |
Comprehensive Loss | ($6,360,898) | ($6,935,590) |
Income (loss) per common share - Basic and diluted | ($0.14) | ($0.18) |
Weighted average number of common shares - Basic and diluted | 46,917,445 | 39,407,719 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Common stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | (Accumulated deficit) Retained Earnings | Total |
Balance at Sep. 30, 2012 | $3,906 | $13,689,967 | $2,054,715 | ($1,478,097) | $14,270,491 |
Balance - shares at Sep. 30, 2012 | 39,061,840 | ||||
Common stock issued for loan settlement - related party | 600 | 479,400 | 480,000 | ||
Common stock issued for loan settlement-related party - shares | 6,000,000 | ||||
Net Income (Loss) | -7,172,094 | -7,172,094 | |||
Stock issued for penalty on stock purchase | 186 | -186 | |||
Stock issued for penalty on stock purchase - shares | 1,855,605 | ||||
Imputed interest expense for non interest bearing related party loans | 305,077 | 305,077 | |||
Foreign currency translation adjustments | 236,504 | 236,504 | |||
Balance at Sep. 30, 2013 | 4,692 | 14,474,258 | 2,291,219 | -8,650,191 | 8,119,978 |
Balance - shares at Sep. 30, 2013 | 46,917,445 | ||||
Net Income (Loss) | -6,367,364 | -6,367,364 | |||
Imputed interest expense for non interest bearing related party loans | 166,198 | 166,198 | |||
Foreign currency translation adjustments | 6,466 | 6,466 | |||
Balance at Sep. 30, 2014 | $4,692 | $14,640,456 | $2,297,685 | ($15,017,555) | $1,925,278 |
Balance - shares at Sep. 30, 2014 | 46,917,445 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash Flows From Operating Activities: | ||
Net Income (Loss) | ($6,367,364) | ($7,172,094) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Inventory markdown | 3,865 | 54,218 |
Provision(recovery) for Bad debt | -38,274 | 37,671 |
Change in fair value of derivative liabilities | 0 | -363,958 |
Depreciation and amortization | 1,494,180 | 1,459,405 |
Imputed interest expense for non interest bearing related party loans | 166,198 | 305,077 |
Impairment of property, plant and equipment | 0 | 3,422,352 |
Loss from disposal of property, plant and equipment | 77,307 | 0 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | -239,696 | -321,845 |
(Increase) decrease in inventory | 32,697 | -233,937 |
(Increase) decrease in advance payments | 151,967 | -256,019 |
(Increase) decrease in prepaid expense and other receivables | -32,108 | -78,735 |
(Increase) decrease in prepaid value-added tax | 53,038 | -69,850 |
Increase (decrease) in accounts payable | 47,285 | -218,309 |
Increase (decrease) in taxes payable | 58,668 | -117,386 |
Increase (decrease) in accrued expenses and other payables | 94,886 | 606,887 |
Cash used in operating activities | -4,497,351 | -2,946,523 |
Cash Flows From Investing Activities: | ||
Proceeds from sale of property, plant and equipment | 189,251 | 0 |
Additions to property and equipment | -314,411 | -1,504,616 |
Cash used in investing activities | -125,160 | -1,504,616 |
Cash Flows From Financing Activities | ||
Proceeds (repayment) of related parties loans, net | -3,756,278 | 1,670,957 |
Proceeds from short term loans, net | 5,578,258 | 2,203,873 |
Proceeds of long term loans, net | 2,824,498 | 586,100 |
Cash provided by financing activities | 4,646,478 | 4,460,930 |
Effect of exchange rate changes on cash and cash equivalents | -2,635 | 9,449 |
Increase in cash and cash equivalents | 21,332 | 19,240 |
Cash and Cash Equivalents - Beginning of the year | 75,901 | 56,661 |
Cash and Cash Equivalents - End of the year | 97,233 | 75,901 |
During the period, cash was paid for the following: | ||
Interest expense | 3,226,399 | 1,194,691 |
Income tax | 0 | 166 |
Non-cash investing and financing activities: | ||
Common stock issued for loan settlement | $0 | $480,000 |
Note_1_Organization_and_Basis_
Note 1 - Organization and Basis of Presentation | 12 Months Ended |
Sep. 30, 2014 | |
Notes | |
Note 1 - Organization and Basis of Presentation | Note 1 – ORGANIZATION AND BASIS OF PRESENTATION |
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 August 26, 2006, ANNO, through its wholly owned subsidiary American Nano Silicon Technologies, Inc., a Delaware corporation (“ANST”), acquired a 95% interest in Nanchong Chunfei, a company incorporated in the People’s Republic of China (the “PRC” or “China”). Nanchong Chunfei directly owned 90% of Chunfei Chemicals, a Chinese corporation established under the laws of PRC on January 6, 2006. Chunfei Chemicals itself owned 92% of Hedi Medicines, also a Chinese company incorporated under the law of PRC on June 27, 2002. | |
On September 6, 2011, the Company acquired all minority interests in its subsidiaries by agreeing to issue 1,650,636 shares of common stock to the minority interest holders. Thereafter, Nanchong Chunfei, Chunfei Chemicals, and Hedi Medicines became wholly owned subsidiaries of ANNO. The shares were issued to the minority interest holders on November 28, 2011. | |
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. | |
The accompanying consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America. | |
Going Concern | |
As shown in the accompanying consolidated financial statements, the Company had negative cash flows from operations for the year ended September 30, 2014 and the Company’s current liabilities exceed its current assets by $14.8 million 14800000at September 30, 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 its 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 the affiliate companies owned by the Company’s largest shareholder and President, Mr. Pu Fachun, will continue providing necessary funding for the Company’s normal operations. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. | |
Reclassifications | |
Certain amounts of prior period were reclassified for presentation purposes. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended | |
Sep. 30, 2014 | ||
Notes | ||
Note 2 - Summary of Significant Accounting Policies | Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of consolidation | ||
The consolidated financial statements represent the consolidated accounts of the Company and its subsidiaries, Nanchong Chunfei, Chunfei Chemicals and Hedi Medicines. All significant intercompany balances and transactions have been eliminated in the consolidation. | ||
Use of estimates | ||
In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, the management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Significant estimates required to be made by the management include, but are not limited to, the recoverability of long-lived assets and the valuation of inventories, valuation of warrant liabilities, the valuation of deferred tax assets, and fair value of other financial instruments. Actual results could differ from these estimates. | ||
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 the political, economic, and legal environments in the PRC, in addition to the general state of the PRC economy. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and 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. | ||
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 on what assumptions the market participants would use in pricing the asset or liability based on the best available information. | ||
The carrying amounts reported in the balance sheets for cash, accounts receivable, 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 maturity 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. The Company uses Level 3 method to measure fair value of its derivative warrant liability (see note 10). The Company did not identify any other assets or liabilities that are required to be presented on the consolidated balance sheets at fair value in accordance with ASC 820. | ||
Cash and cash equivalents | ||
Cash and cash equivalents include cash on hand and cash on deposit and all highly liquid debt instruments with an original maturity of three months or less. | ||
Accounts receivable | ||
The Company's policy is to maintain reserves for potential credit losses on accounts receivable. Provisions are made against accounts receivable to the extent which they are considered to be doubtful. Accounts receivable on the balance sheet are stated net of such provisions. These provisions are based on management’s analysis of customers’ credit history and current relationships with those customers. Based on this assessment, it has been concluded that realization losses on balances outstanding at year-end will be immaterial. | ||
Allowances for doubtful accounts receivable balances are recorded when circumstances indicate that collection is doubtful for particular accounts receivable. Management estimates such allowances based on historical evidence such as amounts that are subject to risk. | ||
Inventory | ||
Inventories consist of raw materials and packing supplies. Inventories are valued at the lower of cost or market with cost determined on a weighted average basis. Market value represents the estimated selling price in the ordinary course of business less the estimated costs necessary to complete the sale. | ||
Property, plant & equipment | ||
Property, plant and equipment are stated at cost. The cost of an asset is comprised of its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Depreciation and amortization are calculated using the straight-line method over the following useful lives: | ||
Buildings and improvements | 39 years | |
Machinery, equipment and automobiles | 5-10 years | |
Construction in progress represents direct costs of construction or acquisition and design fees incurred for the Company’s new plant and equipment. Capitalization of these costs ceases and the construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until it is completed and ready for its intended use. | ||
Expenditures for maintenance and repairs are charged to expense as incurred. Additions, renewals and betterments are capitalized. | ||
Impairment of long-lived assets | ||
In accordance with ASC 360, “Accounting for the Impairment or Disposal of Long-Lived Assets”, the Company periodically reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company recognized an impairment loss of $0 and $3,422,352 for the years ended September 30, 2014 and 2013, respectively. | ||
Advance payments | ||
Advance payments represent the payments made and recorded in advance for goods and services. Advances were also made for the purchase of the materials and equipment for the Company’s construction in progress. | ||
Revenue recognition | ||
The Company recognizes revenue under the FASB Codification Topic 605 (“ASC Topic 605”). Revenue is recognized when all the following have occurred: persuasive evidence of arrangement with customers, products are delivered, fees are fixed and determinable and collection is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as advance from customers. | ||
Shipping and handling | ||
Shipping and handling costs incurred for shipping of finished products to customers are included in selling expense and totaled $87,741 and $43,346 for the years ended September 30, 2014 and 2013, respectively. | ||
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 Company had value added tax recoverable of $70,168 and $123,157 as of September 30, 2014 and 2013, respectively. | ||
Earnings (Loss) per share | ||
Earnings per share are calculated in accordance with the ASC 260, “Earnings per Share.” Basic net 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 net 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. | ||
Statement of cash flows | ||
In accordance with ASC 230, cash flows from the Company’s operations are calculated based upon the local currencies. 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. | ||
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. | ||
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 of amounts from RMB into US dollar has been made at the following exchange rates for the respective years: | ||
30-Sep-14 | ||
Balance sheet | RMB 6.1534 to US$1.00 | |
Statement of operations and comprehensive loss | RMB 6.1400 to US$1.00 | |
30-Sep-13 | ||
Balance sheet | RMB 6.1501 to US$1.00 | |
Statement of operations and comprehensive loss | RMB 6.2383 to US$1.00 | |
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". Gains and losses resulting from foreign currency translations are included in Comprehensive Income (Loss). |
Note_3_Inventory
Note 3 - Inventory | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Notes | |||||||||
Note 3 - Inventory | Note 3 – INVENTORY | ||||||||
The inventory consists of the following: | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 125,338 | $ | 128,669 | |||||
Packing supplies | 70,126 | 40,393 | |||||||
Work-in-process | 75,199 | 60,032 | |||||||
Finished goods | 126,431 | 204,717 | |||||||
Total | $ | 397,094 | $ | 433,811 | |||||
The Company recorded inventory markdown allowance of $3,865 and $54,218 for the year ended September 30, 2014 and 2013 respectively. |
Note_4_Property_Plant_and_Equi
Note 4 - Property, Plant and Equipment | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Notes | |||||||||
Note 4 - Property, Plant and Equipment | Note 4–PROPERTY, PLANT AND EQUIPMENT | ||||||||
The property, plant and equipment consisted of the following: | |||||||||
September 30, | September 30, | ||||||||
2014 | 2013 | ||||||||
Machinery & Equipment | $ | 9,854,564 | $ | 9,255,914 | |||||
Plant & Buildings | 16,217,990 | 16,226,794 | |||||||
Sub total | 26,072,554 | 25,482,708 | |||||||
Less: Accumulated Depreciation | (5,616,396 | ) | (4,255,928 | ) | |||||
Add: Construction in Process | 89,473 | 1,560,100 | |||||||
Property, Plant and Equipment | $ | 20,545,631 | $ | 22,786,880 | |||||
Depreciation expense for the years ended September 30, 2014 and 2013 was $1,467,271 and $1,432,921, respectively. |
Note_5_Related_Party_Transacti
Note 5 - Related Party Transactions | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Notes | |||||||||
Note 5 - Related Party Transactions | NOTE 5 - RELATED PARTY TRANSACTIONS | ||||||||
The Company periodically borrows money from its shareholders and other related parties to finance the operations. The details of loans from shareholders and related parties are as follows: | |||||||||
September 30, | September 30, | ||||||||
2014 | 2013 | ||||||||
Short term: | |||||||||
Short term loan from Sichuan Chunfei Real Estate | $ | 1,212,670 | $ | 856,163 | |||||
Short term loan from Sichuan Chunfei Daily Chemical | 755,759 | 364,723 | |||||||
Short term loan from Mr. Pu Fachun | 1,133,694 | 1,649,040 | |||||||
Short-term loan to Sichuan Lamate Technology Co. Ltd. | - | 2,614,811 | |||||||
Short term loan from Sichuan Shubei Feed Co. Ltd. | 62,891 | 16,260 | |||||||
$ | 3,165,014 | $ | 5,500,997 | ||||||
Long term: | |||||||||
Loan From Mr. Pu Fachun | - | 1,415,868 | |||||||
$ | - | $ | 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 Lamate Technology Co., Ltd. is owned by Mr. Zhang Qiwei, a member of the Company’s Board of Directors. | |||||||||
The long term loan from Mr. Pu Fachun is non interest bearing and due on December 31, 2014. | |||||||||
The Company recorded imputed interest at 6% per annum and recorded $166,198 and $305,077 for non-interest bearing related party loans for the years ended September 30, 2014 and 2013, respectively. | |||||||||
Interest expense for interest-bearing related party loans was $267,622 and $168,117 for the years ended September 30, 2014 and 2013, respectively. | |||||||||
The following table summary related party loans with interest and non interest: | |||||||||
Non | Bearing | ||||||||
interest | interest from | ||||||||
bearing | 0.9%-4% per month | ||||||||
Short term loan | $ | 1,239,249 | $ | 1,925,765 | |||||
Long term loan | - | - | |||||||
$ | 1,239,249 | $ | 1,925,765 | ||||||
Note_6_Land_Use_Right
Note 6 - Land Use Right | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Notes | |||||||||||||
Note 6 - Land Use Right | NOTE 6 - LAND USE RIGHT | ||||||||||||
All land in the People’s Republic of China is government owned and cannot be sold to any individual or company. However, the government grants the user a “land use right” (the Right) to use the land. The Company has the Right to use the land on which its facilities are located for 50 years and amortizes the Right on a straight-line basis over the period of 50 years. As of September 30, 2014 and 2013, intangible assets consisted of the following: | |||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Land use rights | $ | 1,201,539 | $ | 1,202,191 | |||||||||
Less: accumulated amortization | (215,090 | ) | (188,343 | ) | |||||||||
$ | 986,449 | $ | 1,013,848 | ||||||||||
The amortization expense for the years ended September 30, 2014 and 2013 was $26,909 and $26,485, respectively. |
Note_7_Short_Term_and_Longterm
Note 7 - Short Term and Long-term Loans | 12 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Notes | ||||||||||
Note 7 - Short Term and Long-term Loans | NOTE 7 – SHORT TERM AND LONG-TERM LOANS | |||||||||
The short term and long-term loans include the following: | ||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||
a) Loan payable to Nanchong City Bureau of Finance due on demand, fixed interest rate of 0.465% per month | $ | 650,047 | $ | 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 March 7, 2015 and July 23, 2015, at a fixed interest rate of 6.9%, guaranteed by a third party | 1,625,118 | - | ||||||||
d) Loan payable to Nanchong Commercial Bank due on July 1, 2014, at fixed interest rate of 6.6% per annum, guaranteed by third parties. The loan was paid in full on July 1, 2014. | - | 813,000 | ||||||||
e) Loan payable to Bank of Communications due on July 1, 2014, at floating interest rate, Guaranteed by third parties, Mr. Fu Fachun, Zhang Xuchu and Feng Ting, Hedi Medicines. The loan was paid in full on July 1, 2014 | - | 813,000 | ||||||||
f) Loan payable to Bank of Communications due on July 23, 2015, at a interest rate of 7.8% per annum and guaranteed by a third party and Mr. Pu, Chairman and CEO of the Company | 812,559 | - | ||||||||
g) Individual loans from unrelated parties, which are due on demand and bearing a weighted average interest rate of 3.56% per month | 7,008,727 | 2,256,400 | ||||||||
Total Short Term Loans | $ | 10,096,451 | $ | 5,345,800 | ||||||
a) Individual loans from unrelated parties, bearing a weighted average interest rate of 2.79% per month | 1,462,094 | 3,358,411 | ||||||||
b) Individual loans from various investors, bearing interest of 12% per annum and due on July 1, 2015, as extended (See note 11) | 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 | 4,712,842 | - | ||||||||
Less: current portion of long term loans | -1,508,465 | -2,438,187 | ||||||||
Total Long Term Loans | $ | 4,766,471 | $ | 1,020,224 | ||||||
The Company pledged its land use right and its building and equipment to a third party to secure the bank loans The Company recorded interest expense of $3,281,848 and $1,250,266 for the years ended September 30, 2014 and 2013, respectively. | ||||||||||
Note_8_Income_Taxes
Note 8 - Income Taxes | 12 Months Ended | ||||||||
Sep. 30, 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, which mandates a corporate income tax rate of 25%. Hedi Medicine has been taxed at a flat rate of 260 RMB per quarter since calendar year 2012. | |||||||||
The following table reconciles the U.S. statutory rates to the Company's effective tax rate for the years ended September 30, 2014 and 2013: | |||||||||
For the years ended September 30 | |||||||||
2014 | 2013 | ||||||||
US statutory income tax rate | 35 | % | 35 | % | |||||
Non-taxable item in US | 0 | % | -2 | % | |||||
Change in valuation allowance - US | -35 | % | -33 | % | |||||
China income tax statutory rate | 25 | % | 25 | % | |||||
Change in valuation allowance - China | -25 | % | -25 | % | |||||
Prior period tax adjustment | 0 | % | -1.6 | % | |||||
Effective rate | 0 | % | -1.6 | % | |||||
As of September 30, 2014 net operating loss carry forwards for United States and China income tax purposes amounted to $2.5 million$2,500,000 and $16.5 million$16,500,000, respectively, which may be available to reduce future years' taxable income. These carry forwards will expire, if not utilized, beginning in 2028 through 2034 for U.S tax purposes and 2019 through 2020 for China income tax purposes. Management believes that the realization in the U.S. of the benefits arising from these losses appear to be uncertain due to the Company's business operations being primarily conducted in China and foreign income not recognized in the United States for United States income tax purposes. It is also uncertain that it is more likely that not that the China business operation will have income taxable in China. Accordingly, the Company has provided a 100% valuation allowance as of September 30, 2014 and 2013, respectively for the temporary difference related to the loss carry-forwards. | |||||||||
The following table reconciles the changes of deferred tax asset for the years ended September 30, 2014 and 2013: | |||||||||
September 30, | September 30, | ||||||||
2014 | 2013 | ||||||||
United States: | |||||||||
Deferred tax asset from loss carry-forward-Beginning | $ | 855,292 | $ | 836,543 | |||||
Addition: loss carry-forward | 17,567 | 18,749 | |||||||
Valuation allowance-Beginning | (855,292 | ) | (836,543 | ) | |||||
Addition: Valuation allowance | (17,567 | ) | (18,749 | ) | |||||
Deferred tax asset-net | $ | - | $ | - | |||||
China: | |||||||||
Deferred tax asset from loss carry-forward-Beginning | $ | 2,084,623 | $ | 185,246 | |||||
Addition: loss carry-forward | 1,579,258 | 1,899,377 | |||||||
Valuation allowance-Beginning | (2,084,623 | ) | (185,246 | ) | |||||
Addition: Valuation allowance | (1,579,258 | ) | (1,899,377 | ) | |||||
Deferred tax asset-net | $ | - | $ | - | |||||
The Company’s open tax years for its U.S. 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_Concentration_of_Risks
Note 9 - Concentration of Risks | 12 Months Ended |
Sep. 30, 2014 | |
Notes | |
Note 9 - Concentration of Risks | NOTE 9 – CONCENTRATION OF RISKS |
For the year ended September 30, 2013, two customers accounted for 64.8% and 13.4% of total sales. | |
For the year ended September 30, 2014, two customers accounted for 61% and 16.8% of total sales. | |
None of the customers mentioned above is a related party to the Company. |
Note_10_Warrant_Liabilities
Note 10 - Warrant Liabilities | 12 Months Ended | ||||
Sep. 30, 2014 | |||||
Notes | |||||
Note 10 - Warrant Liabilities | NOTE 10 – WARRANT LIABILITIES | ||||
In March and June 2010, the Company issued 4,200,000 shares of common stock and Warrants to purchase 4,000,000 shares of Common Stock (Series B Warrants) to three accredited institutional funds and an accredited investor for $2,000,000. | |||||
The Company concluded that the Series B Warrants should be treated as derivative liabilities because the warrants are entitled to a price adjustment provision to allow the exercise price to be reduced in the event the Company issues or sells any additional shares of common stock at a price per share less than the then-applicable exercise price or without consideration, which is typically referred to as a “down-round protection” or “anti-dilution” provision. The Company uses Level 3 inputs to measure fair value of its warrant liability. | |||||
The Company's warrant liability accounts were as follows: | |||||
Opening balance | $ | 363,958 | |||
Issued in the year ended September 30, 2013 | - | ||||
Change in warrant liabilities | -363,958 | ||||
Exercised in the year ended September 30, 2013 | - | ||||
Closing balance, September 30, 2013 | $ | - | |||
As of September 30, 2013, 4,000,000 warrants have expired and none were exercised. |
Note_11_Stockholders_Equity
Note 11 - Stockholders' Equity | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Notes | |||||||||
Note 11 - Stockholders' Equity | NOTE 11 – STOCKHOLDERS’ EQUITY | ||||||||
On September 18, 2013, the Company issued six million 6000000shares of common stock to Mr.Pu Fachun, CEO of the Company, at a price of approximately $0.08 per share. The shares were issued in satisfaction of loans from Mr. Pu Fachun. | |||||||||
On September 13, 2013 the Company issued 1,855,605 shares of common stock to the investors in the private placement of securities completed in March and June of 2010. The shares were issued in satisfaction of the Company’s obligation under the second paragraph of Section 6.14 of the Securities Purchase Agreement dated March 19, 2010, which obligation accrued as a result of the Company’s failure to realize $5 million in net post-tax income (as defined in that agreement) for the fiscal year ended September 30, 2011. No fair value is used because the issuance of stock is treated as reallocation of proceeds on the common stock issued on private placement. | |||||||||
In connection with the arrangement to cause the shares to be issued, the investors agreed that the maturity date of the $100,000 loan (See note 7) that they made to the Company on May 1, 2011 was extended to July 1, 2015, with interest accruing in the interim at a rate of 12% per annum, payable quarterly. | |||||||||
A: Earnings Per Share | |||||||||
The following is a reconciliation of the basic and diluted earnings (loss) per share computations for the years ended September 30, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Net income (loss) for basic and diluted earnings (loss) per share | $ | -6,367,364 | $ | -7,172,094 | |||||
Weighted average shares used in basic and diluted computation | 46,917,445 | 39,407,719 | |||||||
Earnings (loss) per share: Basic and diluted | $ | -0.14 | $ | -0.18 | |||||
B. Option exercise | |||||||||
As of September 30, 2014 and 2013, there are no options outstanding. |
Note_12_Commitments
Note 12 - Commitments | 12 Months Ended |
Sep. 30, 2014 | |
Notes | |
Note 12 - Commitments | NOTE 12– COMMITMENTS AND CONTINGENCIES |
Employment Agreements | |
As of May 1, 2008, the Company entered into indefinite employment agreements with Pu Fachun and Zhang Changlong. The agreements provide for an annual salary of $10,000 to Mr. Pu and an annual salary of $7,500 to Mr. Zhang. | |
The agreements provides that the officers’ compensation will be reviewed by the Board of Directors not less frequently than annually, and may be adjusted upward at any time in the sole discretion of the Board of Directors. The officers will be eligible for bonus compensation to be awarded at such times and in such amounts as determined by the board in its sole discretion. The term of each agreement commenced on the effective date of May 1, 2008 and will continue until an event of termination under the agreement, including the following (i) the disability of the officer, (ii) upon the death of any officer, or (ii) upon thirty days’ written notice from either party. | |
Remuneration of Directors | |
The Board of Directors has agreed that it will compensate Mr. Robert Fanella upon commencement of his service and on each anniversary of his commencement date, with $10,000 cash plus $40,000 in the form of restricted shares of the Company’s common stock, calculated on the average closing price per share for the five (5) trading days preceding and including the date stock is issued. The Board will also compensate each of Mr. He Ping, Mr. Lü Shuming, and Mr. Liu Dechun upon commencement of his service and on each anniversary of his commencement date, with $5,000 in cash. | |
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_13_Subsequent_Event
Note 13 - Subsequent Event | 12 Months Ended |
Sep. 30, 2014 | |
Notes | |
Note 13 - Subsequent Event | NOTE 13 –SUBSEQUENT EVENT |
The Company has evaluated subsequent events for purposes of recognition or disclosure through the date these financial statements were issued. |
Note_1_Organization_and_Basis_1
Note 1 - Organization and Basis of Presentation: Going Concern (Policies) | 12 Months Ended |
Sep. 30, 2014 | |
Policies | |
Going Concern | Going Concern |
As shown in the accompanying consolidated financial statements, the Company had negative cash flows from operations for the year ended September 30, 2014 and the Company’s current liabilities exceed its current assets by $14.8 million 14800000at September 30, 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 its 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 the affiliate companies owned by the Company’s largest shareholder and President, Mr. Pu Fachun, will continue providing necessary funding for the Company’s normal operations. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies: Principles of Consolidation (Policies) | 12 Months Ended |
Sep. 30, 2014 | |
Policies | |
Principles of Consolidation | Principles of consolidation |
The consolidated financial statements represent the consolidated accounts of the Company and its subsidiaries, Nanchong Chunfei, Chunfei Chemicals and Hedi Medicines. All significant intercompany balances and transactions have been eliminated in the consolidation. |
Note_2_Summary_of_Significant_2
Note 2 - Summary of Significant Accounting Policies: Use of Estimates (Policies) | 12 Months Ended |
Sep. 30, 2014 | |
Policies | |
Use of Estimates | Use of estimates |
In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, the management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Significant estimates required to be made by the management include, but are not limited to, the recoverability of long-lived assets and the valuation of inventories, valuation of warrant liabilities, the valuation of deferred tax assets, and fair value of other financial instruments. Actual results could differ from these estimates. |
Note_2_Summary_of_Significant_3
Note 2 - Summary of Significant Accounting Policies: Risks and Uncertainties (Policies) | 12 Months Ended |
Sep. 30, 2014 | |
Policies | |
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 the political, economic, and legal environments in the PRC, in addition to the general state of the PRC economy. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and 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_2_Summary_of_Significant_4
Note 2 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 12 Months Ended |
Sep. 30, 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 on what assumptions the market participants would use in pricing the asset or liability based on the best available information. | |
The carrying amounts reported in the balance sheets for cash, accounts receivable, 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 maturity 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. The Company uses Level 3 method to measure fair value of its derivative warrant liability (see note 10). The Company did not identify any other assets or liabilities that are required to be presented on the consolidated balance sheets at fair value in accordance with ASC 820. |
Note_2_Summary_of_Significant_5
Note 2 - Summary of Significant Accounting Policies: Cash (Policies) | 12 Months Ended |
Sep. 30, 2014 | |
Policies | |
Cash | Cash and cash equivalents |
Cash and cash equivalents include cash on hand and cash on deposit and all highly liquid debt instruments with an original maturity of three months or less. |
Note_2_Summary_of_Significant_6
Note 2 - Summary of Significant Accounting Policies: Accounts Receivable (Policies) | 12 Months Ended |
Sep. 30, 2014 | |
Policies | |
Accounts Receivable | Accounts receivable |
The Company's policy is to maintain reserves for potential credit losses on accounts receivable. Provisions are made against accounts receivable to the extent which they are considered to be doubtful. Accounts receivable on the balance sheet are stated net of such provisions. These provisions are based on management’s analysis of customers’ credit history and current relationships with those customers. Based on this assessment, it has been concluded that realization losses on balances outstanding at year-end will be immaterial. | |
Allowances for doubtful accounts receivable balances are recorded when circumstances indicate that collection is doubtful for particular accounts receivable. Management estimates such allowances based on historical evidence such as amounts that are subject to risk. |
Note_2_Summary_of_Significant_7
Note 2 - Summary of Significant Accounting Policies: Inventory (Policies) | 12 Months Ended |
Sep. 30, 2014 | |
Policies | |
Inventory | Inventory |
Inventories consist of raw materials and packing supplies. Inventories are valued at the lower of cost or market with cost determined on a weighted average basis. Market value represents the estimated selling price in the ordinary course of business less the estimated costs necessary to complete the sale. |
Note_2_Summary_of_Significant_8
Note 2 - Summary of Significant Accounting Policies: Property, Plant & Equipment (Policies) | 12 Months Ended | |
Sep. 30, 2014 | ||
Policies | ||
Property, Plant & Equipment | Property, plant & equipment | |
Property, plant and equipment are stated at cost. The cost of an asset is comprised of its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Depreciation and amortization are calculated using the straight-line method over the following useful lives: | ||
Buildings and improvements | 39 years | |
Machinery, equipment and automobiles | 5-10 years | |
Construction in progress represents direct costs of construction or acquisition and design fees incurred for the Company’s new plant and equipment. Capitalization of these costs ceases and the construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until it is completed and ready for its intended use. | ||
Expenditures for maintenance and repairs are charged to expense as incurred. Additions, renewals and betterments are capitalized. |
Note_2_Summary_of_Significant_9
Note 2 - Summary of Significant Accounting Policies: Impairment of Long-lived Assets (Policies) | 12 Months Ended |
Sep. 30, 2014 | |
Policies | |
Impairment of Long-lived Assets | Impairment of long-lived assets |
In accordance with ASC 360, “Accounting for the Impairment or Disposal of Long-Lived Assets”, the Company periodically reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company recognized an impairment loss of $0 and $3,422,352 for the years ended September 30, 2014 and 2013, respectively. |
Recovered_Sheet1
Note 2 - Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 12 Months Ended |
Sep. 30, 2014 | |
Policies | |
Revenue Recognition | Revenue recognition |
The Company recognizes revenue under the FASB Codification Topic 605 (“ASC Topic 605”). Revenue is recognized when all the following have occurred: persuasive evidence of arrangement with customers, products are delivered, fees are fixed and determinable and collection is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as advance from customers. | |
Recovered_Sheet2
Note 2 - Summary of Significant Accounting Policies: Shipping and Handling (Policies) | 12 Months Ended |
Sep. 30, 2014 | |
Policies | |
Shipping and Handling | Shipping and handling |
Shipping and handling costs incurred for shipping of finished products to customers are included in selling expense and totaled $87,741 and $43,346 for the years ended September 30, 2014 and 2013, respectively. |
Recovered_Sheet3
Note 2 - Summary of Significant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Sep. 30, 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. |
Recovered_Sheet4
Note 2 - Summary of Significant Accounting Policies: Uncertain Tax Positions (Policies) | 12 Months Ended |
Sep. 30, 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. |
Recovered_Sheet5
Note 2 - Summary of Significant Accounting Policies: Earnings (loss) Per Share (Policies) | 12 Months Ended |
Sep. 30, 2014 | |
Policies | |
Earnings (loss) Per Share | Earnings (Loss) per share |
Earnings per share are calculated in accordance with the ASC 260, “Earnings per Share.” Basic net 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 net 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. |
Recovered_Sheet6
Note 2 - Summary of Significant Accounting Policies: Concentration of Credit Risk (Policies) | 12 Months Ended |
Sep. 30, 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. |
Recovered_Sheet7
Note 2 - Summary of Significant Accounting Policies: Foreign Currency Translation (Policies) | 12 Months Ended | |
Sep. 30, 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. | ||
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 of amounts from RMB into US dollar has been made at the following exchange rates for the respective years: | ||
30-Sep-14 | ||
Balance sheet | RMB 6.1534 to US$1.00 | |
Statement of operations and comprehensive loss | RMB 6.1400 to US$1.00 | |
30-Sep-13 | ||
Balance sheet | RMB 6.1501 to US$1.00 | |
Statement of operations and comprehensive loss | RMB 6.2383 to US$1.00 | |
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". Gains and losses resulting from foreign currency translations are included in Comprehensive Income (Loss). |
Recovered_Sheet8
Note 2 - Summary of Significant Accounting Policies: Property, Plant & Equipment: Property Plant and Equipment Useful Life Textblock (Tables) | 12 Months Ended | |
Sep. 30, 2014 | ||
Tables/Schedules | ||
Property Plant and Equipment Useful Life Textblock | ||
Buildings and improvements | 39 years | |
Machinery, equipment and automobiles | 5-10 years |
Note_3_Inventory_Schedule_of_I
Note 3 - Inventory: Schedule of Inventory, Current (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | |||||||||
Schedule of Inventory, Current | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 125,338 | $ | 128,669 | |||||
Packing supplies | 70,126 | 40,393 | |||||||
Work-in-process | 75,199 | 60,032 | |||||||
Finished goods | 126,431 | 204,717 | |||||||
Total | $ | 397,094 | $ | 433,811 |
Note_4_Property_Plant_and_Equi1
Note 4 - Property, Plant and Equipment: Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | |||||||||
Property, Plant and Equipment | |||||||||
September 30, | September 30, | ||||||||
2014 | 2013 | ||||||||
Machinery & Equipment | $ | 9,854,564 | $ | 9,255,914 | |||||
Plant & Buildings | 16,217,990 | 16,226,794 | |||||||
Sub total | 26,072,554 | 25,482,708 | |||||||
Less: Accumulated Depreciation | (5,616,396 | ) | (4,255,928 | ) | |||||
Add: Construction in Process | 89,473 | 1,560,100 | |||||||
Property, Plant and Equipment | $ | 20,545,631 | $ | 22,786,880 |
Note_5_Related_Party_Transacti1
Note 5 - Related Party Transactions: Schedule of Related Party Transactions (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | |||||||||
Schedule of Related Party Transactions | |||||||||
September 30, | September 30, | ||||||||
2014 | 2013 | ||||||||
Short term: | |||||||||
Short term loan from Sichuan Chunfei Real Estate | $ | 1,212,670 | $ | 856,163 | |||||
Short term loan from Sichuan Chunfei Daily Chemical | 755,759 | 364,723 | |||||||
Short term loan from Mr. Pu Fachun | 1,133,694 | 1,649,040 | |||||||
Short-term loan to Sichuan Lamate Technology Co. Ltd. | - | 2,614,811 | |||||||
Short term loan from Sichuan Shubei Feed Co. Ltd. | 62,891 | 16,260 | |||||||
$ | 3,165,014 | $ | 5,500,997 | ||||||
Long term: | |||||||||
Loan From Mr. Pu Fachun | - | 1,415,868 | |||||||
$ | - | $ | 1,415,868 |
Note_5_Related_Party_Transacti2
Note 5 - Related Party Transactions: Schedule of Related Party Loans with Interest and Non Interest (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | |||||||||
Schedule of Related Party Loans with Interest and Non Interest | |||||||||
Non | Bearing | ||||||||
interest | interest from | ||||||||
bearing | 0.9%-4% per month | ||||||||
Short term loan | $ | 1,239,249 | $ | 1,925,765 | |||||
Long term loan | - | - | |||||||
$ | 1,239,249 | $ | 1,925,765 | ||||||
Note_6_Land_Use_Right_Schedule
Note 6 - Land Use Right: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Tables/Schedules | |||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | |||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Land use rights | $ | 1,201,539 | $ | 1,202,191 | |||||||||
Less: accumulated amortization | (215,090 | ) | (188,343 | ) | |||||||||
$ | 986,449 | $ | 1,013,848 | ||||||||||
Note_7_Short_Term_and_Longterm1
Note 7 - Short Term and Long-term Loans: Schedule Of Debt (Tables) | 12 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Tables/Schedules | ||||||||||
Schedule Of Debt | ||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||
a) Loan payable to Nanchong City Bureau of Finance due on demand, fixed interest rate of 0.465% per month | $ | 650,047 | $ | 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 March 7, 2015 and July 23, 2015, at a fixed interest rate of 6.9%, guaranteed by a third party | 1,625,118 | - | ||||||||
d) Loan payable to Nanchong Commercial Bank due on July 1, 2014, at fixed interest rate of 6.6% per annum, guaranteed by third parties. The loan was paid in full on July 1, 2014. | - | 813,000 | ||||||||
e) Loan payable to Bank of Communications due on July 1, 2014, at floating interest rate, Guaranteed by third parties, Mr. Fu Fachun, Zhang Xuchu and Feng Ting, Hedi Medicines. The loan was paid in full on July 1, 2014 | - | 813,000 | ||||||||
f) Loan payable to Bank of Communications due on July 23, 2015, at a interest rate of 7.8% per annum and guaranteed by a third party and Mr. Pu, Chairman and CEO of the Company | 812,559 | - | ||||||||
g) Individual loans from unrelated parties, which are due on demand and bearing a weighted average interest rate of 3.56% per month | 7,008,727 | 2,256,400 | ||||||||
Total Short Term Loans | $ | 10,096,451 | $ | 5,345,800 | ||||||
a) Individual loans from unrelated parties, bearing a weighted average interest rate of 2.79% per month | 1,462,094 | 3,358,411 | ||||||||
b) Individual loans from various investors, bearing interest of 12% per annum and due on July 1, 2015, as extended (See note 11) | 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 | 4,712,842 | - | ||||||||
Less: current portion of long term loans | -1,508,465 | -2,438,187 | ||||||||
Total Long Term Loans | $ | 4,766,471 | $ | 1,020,224 | ||||||
Note_8_Income_Taxes_Schedule_o
Note 8 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | |||||||||
Schedule of Effective Income Tax Rate Reconciliation | |||||||||
For the years ended September 30 | |||||||||
2014 | 2013 | ||||||||
US statutory income tax rate | 35 | % | 35 | % | |||||
Non-taxable item in US | 0 | % | -2 | % | |||||
Change in valuation allowance - US | -35 | % | -33 | % | |||||
China income tax statutory rate | 25 | % | 25 | % | |||||
Change in valuation allowance - China | -25 | % | -25 | % | |||||
Prior period tax adjustment | 0 | % | -1.6 | % | |||||
Effective rate | 0 | % | -1.6 | % |
Note_8_Income_Taxes_Schedule_o1
Note 8 - Income Taxes: Schedule of changes in deferred tax asset (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | |||||||||
Schedule of changes in deferred tax asset | |||||||||
September 30, | September 30, | ||||||||
2014 | 2013 | ||||||||
United States: | |||||||||
Deferred tax asset from loss carry-forward-Beginning | $ | 855,292 | $ | 836,543 | |||||
Addition: loss carry-forward | 17,567 | 18,749 | |||||||
Valuation allowance-Beginning | (855,292 | ) | (836,543 | ) | |||||
Addition: Valuation allowance | (17,567 | ) | (18,749 | ) | |||||
Deferred tax asset-net | $ | - | $ | - | |||||
China: | |||||||||
Deferred tax asset from loss carry-forward-Beginning | $ | 2,084,623 | $ | 185,246 | |||||
Addition: loss carry-forward | 1,579,258 | 1,899,377 | |||||||
Valuation allowance-Beginning | (2,084,623 | ) | (185,246 | ) | |||||
Addition: Valuation allowance | (1,579,258 | ) | (1,899,377 | ) | |||||
Deferred tax asset-net | $ | - | $ | - |
Note_10_Warrant_Liabilities_Sc
Note 10 - Warrant Liabilities: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables) | 12 Months Ended | ||||
Sep. 30, 2014 | |||||
Tables/Schedules | |||||
Schedule of Stockholders' Equity Note, Warrants or Rights | |||||
Opening balance | $ | 363,958 | |||
Issued in the year ended September 30, 2013 | - | ||||
Change in warrant liabilities | -363,958 | ||||
Exercised in the year ended September 30, 2013 | - | ||||
Closing balance, September 30, 2013 | $ | - |
Note_11_Stockholders_Equity_Sc
Note 11 - Stockholders' Equity: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | |||||||||
2014 | 2013 | ||||||||
Net income (loss) for basic and diluted earnings (loss) per share | $ | -6,367,364 | $ | -7,172,094 | |||||
Weighted average shares used in basic and diluted computation | 46,917,445 | 39,407,719 | |||||||
Earnings (loss) per share: Basic and diluted | $ | -0.14 | $ | -0.18 | |||||
Note_1_Organization_and_Basis_2
Note 1 - Organization and Basis of Presentation (Details) | 12 Months Ended |
Sep. 30, 2014 | |
Details | |
Entity Incorporation, State Country Name | State of California |
Entity Incorporation, Date of Incorporation | 6-Sep-96 |
Note_1_Organization_and_Basis_3
Note 1 - Organization and Basis of Presentation: Going Concern (Details) (USD $) | Sep. 30, 2014 |
Details | |
Working capital deficiency | $14,800,000 |
Recovered_Sheet9
Note 2 - Summary of Significant Accounting Policies: Property, Plant & Equipment: Property Plant and Equipment Useful Life Textblock (Details) | 12 Months Ended |
Sep. 30, 2014 | |
Building and Building Improvements | |
Property, Plant and Equipment, Useful Life | 39 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment, Useful Life | 10 years |
Recovered_Sheet10
Note 2 - Summary of Significant Accounting Policies: Impairment of Long-lived Assets (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Details | ||
Impairment of property, plant and equipment | $0 | $3,422,352 |
Recovered_Sheet11
Note 2 - Summary of Significant Accounting Policies: Shipping and Handling (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Details | ||
Shipping, Handling and Transportation Costs | $87,741 | $43,346 |
Recovered_Sheet12
Note 2 - Summary of Significant Accounting Policies (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Details | ||
Value Added Tax Receivable | $70,168 | $123,157 |
Note_3_Inventory_Schedule_of_I1
Note 3 - Inventory: Schedule of Inventory, Current (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Details | ||
Inventory, Raw Materials, Gross | $125,338 | $128,669 |
Inventory Packing Supplies | 70,126 | 40,393 |
Inventory, Work in Process, Gross | 75,199 | 60,032 |
Inventory, Finished Goods, Gross | 126,431 | 204,717 |
Inventory, net of reserve | $397,094 | $433,811 |
Note_3_Inventory_Details
Note 3 - Inventory (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Details | ||
Inventory Markdown Allowance | $3,865 | $54,218 |
Note_4_Property_Plant_and_Equi2
Note 4 - Property, Plant and Equipment: Property, Plant and Equipment (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Property, plant and equipment, net | $20,545,631 | $22,786,880 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -5,616,396 | -4,255,928 |
Equipment | ||
Property, plant and equipment, net | 9,854,564 | 9,255,914 |
Building | ||
Property, plant and equipment, net | 16,217,990 | 16,226,794 |
Building and Building Improvements | ||
Property, plant and equipment, net | 26,072,554 | 25,482,708 |
Construction in Progress | ||
Property, plant and equipment, net | $89,473 | $1,560,100 |
Note_4_Property_Plant_and_Equi3
Note 4 - Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Details | ||
Depreciation | $1,467,271 | $1,432,921 |
Note_5_Related_Party_Transacti3
Note 5 - Related Party Transactions: Schedule of Related Party Transactions (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Due to related parties-current portion | $3,165,014 | $5,500,997 |
Due to related parties | 0 | 1,415,868 |
Short term loan from Chunfei Real Estate | ||
Due to related parties-current portion | 1,212,670 | 856,163 |
Short term loan from Chunfei Daily Chemical | ||
Due to related parties-current portion | 755,759 | 364,723 |
Short term loan from Pu Fachun | ||
Due to related parties-current portion | 1,133,694 | 1,649,040 |
Short term loan from Lamate Technology Co Ltd | ||
Due to related parties-current portion | 2,614,811 | |
Short term loan from Shubei Feed Co Ltd | ||
Due to related parties-current portion | 62,891 | 16,260 |
Loan From Pu Fachun | ||
Due to related parties | $1,415,868 |
Note_5_Related_Party_Transacti4
Note 5 - Related Party Transactions (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Details | ||
Imputed interest expense for non interest bearing related party loans | $166,198 | $305,077 |
ImputedInterestExpenseForInterestBearingRelatedPartyLoans | $267,622 | $168,117 |
Note_5_Related_Party_Transacti5
Note 5 - Related Party Transactions: Schedule of Related Party Loans with Interest and Non Interest (Details) (USD $) | Sep. 30, 2014 |
Details | |
Non Interest Bearing Short Term Loans | $1,239,249 |
Interest Bearing Short Term Loans | 1,925,765 |
Total Non Interest Bearing Loans | 1,239,249 |
Total Interest Bearing Loans | $1,925,765 |
Note_6_Land_Use_Right_Schedule1
Note 6 - Land Use Right: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Details | ||
Finite-Lived Intangible Assets, Gross | $1,201,539 | $1,202,191 |
Finite-Lived Intangible Assets, Accumulated Amortization | -215,090 | -188,343 |
Land use rights, net | $986,449 | $1,013,848 |
Note_6_Land_Use_Right_Details
Note 6 - Land Use Right (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Details | ||
Amortization of Intangible Assets | $26,909 | $26,485 |
Note_7_Short_Term_and_Longterm2
Note 7 - Short Term and Long-term Loans: Schedule Of Debt (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Short term loans | $10,096,451 | $5,345,800 |
Long term loans | 4,766,471 | 1,020,224 |
Long term loans-current portion | -1,508,465 | -2,438,187 |
Short Term Loan A | ||
Short term loans | 650,047 | 650,400 |
Short Term Loan B | ||
Short term loans | 813,000 | |
Short Term Loan C | ||
Short term loans | 1,625,118 | |
Short Term Loan D | ||
Short term loans | 813,000 | |
Short Term Loan E | ||
Short term loans | 813,000 | |
Short Term Loan F | ||
Short term loans | 812,559 | |
Short Term Loan G | ||
Short term loans | 7,008,727 | 2,256,400 |
Long Term Loan A | ||
Long term loans | 1,462,094 | 3,358,411 |
Long Term Loan B | ||
Long term loans | 100,000 | 100,000 |
Long Term Loan C | ||
Long term loans | $4,712,842 |
Note_7_Short_Term_and_Longterm3
Note 7 - Short Term and Long-term Loans (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Details | ||
Interest Expense, Other | $3,281,848 | $1,250,266 |
Note_8_Income_Taxes_Schedule_o2
Note 8 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Details | ||
US statutory income tax rate | 35.00% | 35.00% |
Non-taxable item in US | 0.00% | -2.00% |
Change in valuation allowance - US | -35.00% | -33.00% |
China income tax statutory rate | 25.00% | 25.00% |
Change in valuation allowance - China | -25.00% | -25.00% |
Prior period tax adjustment | 0.00% | -1.60% |
Effective rate | 0.00% | -1.60% |
Note_8_Income_Taxes_Details
Note 8 - Income Taxes (Details) (USD $) | Sep. 30, 2014 |
Operating Loss Carry forwards Valuation Allowance | 100.00% |
UNITED STATES | |
Operating Loss Carryforwards | 2,500,000 |
CHINA | |
Operating Loss Carryforwards | 16,500,000 |
Note_8_Income_Taxes_Schedule_o3
Note 8 - Income Taxes: Schedule of changes in deferred tax asset (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
UNITED STATES | ||
Deferred Tax Assets, Net, Current | $855,292 | $836,543 |
Deferred Tax Assets, Operating Loss Carryforwards | 17,567 | 18,749 |
Deferred Tax Assets, Valuation Allowance, Current | -855,292 | -836,543 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | -17,567 | -18,749 |
CHINA | ||
Deferred Tax Assets, Net, Current | 2,084,623 | 185,246 |
Deferred Tax Assets, Operating Loss Carryforwards | 1,579,258 | 1,899,377 |
Deferred Tax Assets, Valuation Allowance, Current | -2,084,623 | -185,246 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | ($1,579,258) | ($1,899,377) |
Note_9_Concentration_of_Risks_
Note 9 - Concentration of Risks (Details) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Details | ||
Concentration Risk, Customer | two customers accounted for 61% and 16.8% of total sales | two customers accounted for 64.8% and 13.4% of total sales |
Note_10_Warrant_Liabilities_De
Note 10 - Warrant Liabilities (Details) (USD $) | 4 Months Ended | ||
Jun. 30, 2010 | Sep. 30, 2014 | Sep. 30, 2013 | |
Details | |||
Common stock shares issued | 4,200,000 | 46,917,445 | 46,917,445 |
Warrants exercised | $4,000,000 | ||
Proceeds from Issuance of Common Stock | $2,000,000 | ||
Warrants Expired | 4,000,000 |
Note_10_Warrant_Liabilities_Sc1
Note 10 - Warrant Liabilities: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Details | ||
Derivative Liability, Noncurrent | $363,958 | |
Change in warrant liabilities | ($363,958) |
Note_11_Stockholders_Equity_De
Note 11 - Stockholders' Equity (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2010 |
Common stock shares issued | 46,917,445 | 46,917,445 | 4,200,000 |
Issuance 1 | |||
Common stock shares issued | 6,000,000 | ||
Shares Issued, Price Per Share | 0.08 | ||
Issuance 2 | |||
Common stock shares issued | 1,855,605 |
Note_11_Stockholders_Equity_Sc1
Note 11 - Stockholders' Equity: Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Details | ||
Net Income Loss Attributable To American Nano Silicon Technologies Inc | ($6,367,364) | ($7,172,094) |
Weighted average number of common shares - Basic and diluted | 46,917,445 | 39,407,719 |
Income (loss) per common share - Basic and diluted | ($0.14) | ($0.18) |
Note_12_Commitments_Details
Note 12 - Commitments (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | ||
Director cash compensation - Fanella | $10,000 | [1] |
Director cash compensation | 5,000 | [2] |
Mr. Pu | ||
Salaries, Wages and Officers' Compensation | 10,000 | |
Mr. Zhang | ||
Salaries, Wages and Officers' Compensation | $7,500 | |
[1] | The Board of Directors has agreed that it will compensate Mr. Robert Fanella upon commencement of his service and on each anniversary of his commencement date, with $10,000 cash plus $40,000 in the form of restricted shares of the Company's common stock, calculated on the average closing price per share for the five (5) trading days preceding and including the date stock is issued | |
[2] | The Board will also compensate Mr. He Ping, Mr. LC< Shuming, and Mr. Liu Dechun upon commencement of his service and on each anniversary of his commencement date, with $5,000 in cash. |