Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 23, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | Deyu Agriculture Corp. | ||
Entity Central Index Key | 1467746 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Trading Symbol | DEYU | ||
Entity Common Stock, Shares Outstanding | 11,044,328 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $1,071,828 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current Assets | ||
Cash and cash equivalents | $1,012,743 | $979,282 |
Restricted cash | 0 | 16,519 |
Accounts receivable, net | 21,536,525 | 32,326,897 |
Inventory | 9,815,931 | 15,318,224 |
Advance to supplier | 732,976 | 4,363,298 |
Prepaid expenses | 939,429 | 1,161,302 |
Other current assets | 254,817 | 159,948 |
Total Current Assets | 34,292,421 | 54,325,470 |
Property, plant, and equipment, net | 17,020,127 | 19,251,051 |
Construction-in-progress | 353,963 | 0 |
Long-term Investment | 58,666 | 60,129 |
Intangible assets, net | 7,459,320 | 7,827,809 |
Total Assets | 59,184,497 | 81,464,459 |
Current Liabilities | ||
Short-term loan | 7,268,801 | 7,464,856 |
Accounts payable | 4,355,395 | 8,538,544 |
Advance from customers | 1,972,193 | 1,990,479 |
Accrued expenses | 1,406,519 | 1,002,885 |
Tax payable | 107,228 | 73,790 |
Preferred stock dividends payable | 212,094 | 247,614 |
Due to related parties | 13,958 | 14,306 |
Other current liabilities | 293,456 | 282,179 |
Total Current Liabilities | 15,629,644 | 19,614,653 |
Equity | ||
Series A convertible preferred stock, $.001 par value, 10,000,000 shares authorized, 1,894,992 and 2,182,628 shares outstanding, respectively | 1,895 | 2,183 |
Common stock, $.001 par value; 75,000,000 shares authorized, 11,044,328 and 10,618,266 shares outstanding, respectively | 11,044 | 10,618 |
Additional paid-in capital | 21,670,346 | 21,225,146 |
Other comprehensive income | 6,515,733 | 7,897,730 |
Retained earnings | 15,325,116 | 32,681,588 |
Total Stockholders' Equity | 43,524,134 | 61,817,265 |
Noncontrolling Interests | 30,719 | 32,541 |
Total Equity | 43,554,853 | 61,849,806 |
Total Liabilities and Equity | $59,184,497 | $81,464,459 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Series A convertible preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Series A convertible preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Series A convertible preferred stock, shares outstanding | 1,894,992 | 2,182,628 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares outstanding | 11,044,328 | 10,618,266 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Net revenue | ||
Normal inventory | $106,256,045 | $246,350,104 |
Damaged corn | 3,421,175 | 0 |
Total Net Revenue | 109,677,220 | 246,350,104 |
Cost of goods sold | ||
Normal inventory | -99,085,690 | -227,250,013 |
Damaged corn | -9,328,942 | 0 |
Total Cost of Goods Sold | -108,414,632 | -227,250,013 |
Loss on inventory valuation reserve | 0 | -4,478,174 |
Gross Profit (loss) | 1,262,588 | 14,621,917 |
Selling expenses | -9,600,879 | -17,447,531 |
General and administrative expenses | -7,468,660 | -13,195,537 |
Loss on impairment of assets | 0 | -7,346,776 |
Total Operating Expenses | -17,069,539 | -37,989,844 |
Operating income (loss) | -15,806,951 | -23,367,927 |
Interest income | 6,263 | 35,193 |
Interest expense | -783,560 | -790,438 |
Non-operating income (loss) | 146,623 | -403,885 |
Total Other Expenses | -630,674 | -1,159,130 |
Income (loss) before income taxes | -16,437,625 | -24,527,057 |
Income taxes | -501,262 | -604,450 |
Income (loss) before extraordinary items | -16,938,887 | -25,131,507 |
Extraordinary loss (after taxes) | 0 | -1,212,430 |
Net income (loss) | -16,938,887 | -26,343,937 |
Net income (loss) attributable to noncontrolling interest | 1,039 | 4,160 |
Net income (loss) attributable to Deyu Agriculture Corp. | -16,937,848 | -26,339,777 |
Preferred stock dividends | -418,624 | -478,769 |
Net income (loss) available to common stockholders | -17,356,472 | -26,818,546 |
Foreign currency translation gain (loss) | -1,382,780 | 2,150,517 |
Comprehensive income (loss) | -18,739,252 | -24,668,029 |
Other comprehensive income (loss) attributable to noncontrolling interests | 783 | 9,420 |
Comprehensive income (loss) attributable to Deyu Agriculture Corp. | ($18,738,469) | ($24,658,609) |
Net income (loss) attributable to common stockholders per share - basic (in dollars per share) | ($1.58) | ($2.52) |
Net income (loss) attributable to common stockholders per share - diluted (in dollars per share) | ($1.58) | ($2.52) |
Weighted average number of common shares outstanding - basic (in shares) | 10,974,596 | 10,625,170 |
Weighted average number of common shares outstanding - diluted (in shares) | 10,974,596 | 10,625,170 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Series A Preferred Stock [Member] | Other Comprehensive Income (Loss) [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2012 | $86,458,393 | $2,040 | $5,737,793 | $10,658 | $20,781,439 | $59,500,134 | $426,329 |
Balance (in shares) at Dec. 31, 2012 | 2,039,970 | 10,658,266 | |||||
Covertible preferred stocks issued for payment of preferred stock dividends | 456,506 | 143 | 0 | 0 | 456,363 | 0 | 0 |
Covertible preferred stocks issued for payment of preferred stock dividends (in shares) | 142,658 | 0 | |||||
Share-based compensation | 44,504 | 0 | 0 | 0 | 44,504 | 0 | 0 |
Net changes in foreign currency translation adjustment | 2,150,517 | 0 | 2,159,937 | 0 | 0 | 0 | -9,420 |
Subsidiary capital withdraw by noncontrolling interest at the liquidation of Hebei Yugu | -469,147 | 0 | 0 | 0 | 0 | 0 | -469,147 |
Loss assumed by Noncontrollinginterets at the liquidation of Hebei Yugu | 88,939 | 0 | 0 | 0 | 0 | 0 | 88,939 |
Common stocks retired for service contract termination | -57,200 | 0 | 0 | -40 | -57,160 | 0 | 0 |
Common stocks retired for service contract termination (in shares) | 0 | -40,000 | |||||
Net earnings for the year ended | -26,822,706 | 0 | 0 | 0 | 0 | -26,818,546 | -4,160 |
Balance at Dec. 31, 2013 | 61,849,806 | 2,183 | 7,897,730 | 10,618 | 21,225,146 | 32,681,588 | 32,541 |
Balance (in shares) at Dec. 31, 2013 | 2,182,628 | 10,618,266 | |||||
Conversion of convertible preferred stocks to common stocks | 0 | -426 | 0 | 426 | 0 | 0 | 0 |
Conversion of convertible preferred stocks to common stocks (in shares) | -426,062 | 426,062 | |||||
Covertible preferred stocks issued for payment of preferred stock dividends | 442,963 | 138 | 0 | 0 | 442,825 | 0 | 0 |
Covertible preferred stocks issued for payment of preferred stock dividends (in shares) | 138,426 | 0 | |||||
Share-based compensation | 2,375 | 0 | 0 | 0 | 2,375 | 0 | 0 |
Net changes in foreign currency translation adjustment | -1,382,780 | 0 | -1,381,997 | 0 | 0 | 0 | -783 |
Net earnings for the year ended | -17,357,511 | 0 | 0 | 0 | 0 | -17,356,472 | -1,039 |
Balance at Dec. 31, 2014 | $43,554,853 | $1,895 | $6,515,733 | $11,044 | $21,670,346 | $15,325,116 | $30,719 |
Balance (in shares) at Dec. 31, 2014 | 1,894,992 | 11,044,328 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) available to common stockholders | ($17,356,472) | ($26,818,546) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation & amortization | 2,174,049 | 2,366,220 |
Loss on impairment of asset valuation | 0 | 7,346,776 |
Extraordinary loss | 0 | 1,212,430 |
Provision for Inventory valuation | 0 | 4,478,174 |
Bad debt expenses | 1,238,755 | 1,925,357 |
Write-off of allowance for doubtful accounts | -834,917 | 0 |
Share-based compensation | 2,375 | 44,504 |
Preferred stock dividends accrued | 418,624 | 478,769 |
Common stocks issued for services | 0 | -57,200 |
Noncontrolling interests | -1,039 | -4,160 |
Decrease (increase) in current assets: | ||
Accounts receivable | 9,694,132 | 1,649,532 |
Related-parties trade receivable | 43,660 | 358,771 |
Inventories | 5,165,207 | 11,182,382 |
Advance to suppliers | 3,548,568 | 1,931,601 |
Prepaid expense and other current assets | 22,796 | -244,860 |
Increase (decrease) in liabilities: | ||
Accounts payable | -4,002,968 | 1,841,803 |
Advance from customers | 30,332 | -319,381 |
Accrued expense and other liabilities | 477,625 | -1,631,079 |
Net cash provided by operating activities | 620,727 | 5,741,093 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of machinery and equipment | -220,429 | -518,165 |
Construction and remodeling of factory and warehouses | -356,410 | |
Net cash used in investing activities | -576,839 | -518,165 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net proceeds (repayment) of short-term loans from related parties | 0 | -9,053,440 |
Net repayment from short-term loans from bank and others | -14,606 | -1,024,757 |
Cash released from restriction for credit line of bank loans | 16,228 | 809,997 |
Net cash provided by (used in) financing activities | 1,622 | -9,268,200 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | -12,049 | 87,275 |
NET (DECREASE) INCREASE IN CASH & CASH EQUIVALENTS | 33,461 | -3,957,997 |
CASH & CASH EQUIVALENTS, BEGINNING BALANCE | 979,282 | 4,937,279 |
CASH & CASH EQUIVALENTS, ENDING BALANCE | 1,012,743 | 979,282 |
SUPPLEMENTAL DISCLOSURES: | ||
Income tax paid | 468,715 | 841,593 |
Interest paid | 424,789 | 743,653 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Construction completed and transferred to property, plant, and equipment | 0 | 767,494 |
Construction transferred to land use rights | $0 | $1,045,640 |
NATURE_OF_BUSINESS_AND_BASIS_O
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1. NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION | ||||||||||||
Deyu Agriculture Corp. (the “Company”), formerly known as Eco Building International, Inc., was incorporated under the laws of the State of Nevada on December 23, 2008. We completed the acquisition of City Zone Holdings Limited (“City Zone”), an agricultural products distributor in the Shanxi Province of the People’s Republic of China (the “PRC”) engaged in procuring, processing, marketing, and distributing various grain and corn products, by means of a share exchange effective April 27, 2010. As a result of the share exchange, City Zone became our wholly-owned subsidiary. We currently conduct our business primarily through operating PRC subsidiaries, including JinzhongDeyu Agriculture Trading Co., Ltd. (“JinzhongDeyu”), JinzhongYuliang Agriculture Trading Co., Ltd. (“JinzhongYuliang”), JinzhongYongcheng Agriculture Trading Co., Ltd. (“JinzhongYongcheng”), Shanxi Taizihu Food Co., Ltd. (“Taizihu”), Shanxi Huichun Bean Products Co., Ltd. (“Huichun” and together with Taizihu, the “Taizihu Group”) and Detian Yu Biotechnology (Beijing) Co., Ltd. (“Detian Yu”) and Detian Yu’s subsidiaries. | |||||||||||||
On May 11, 2010, our Board of Directors adopted a resolution to change our name to "Deyu Agriculture Corp." and FINRA declared the name change effective on June 2, 2010. | |||||||||||||
Reverse Acquisition | |||||||||||||
On April 27, 2010, we entered into a Share Exchange Agreement (“Share Exchange”) pursuant to which we issued 8,736,932 shares of our common stock, par value $ 0.001 per share, to Expert Venture Limited (“Expert Venture”), a company organized under the laws of the British Virgin Islands, and the other shareholders of City Zone (the “City Zone Shareholders”). As a result of the Share Exchange, City Zone became our wholly-owned subsidiary and City Zone Shareholders acquired a majority of our issued and outstanding shares of common stock. | |||||||||||||
As a result, the Share Exchange has been accounted for as a reverse acquisition using the purchase method of accounting, whereby City Zone is deemed to be the accounting acquirer (the legal acquiree) and we are to be the accounting acquiree (legal acquirer). The financial statements before the date of the Share Exchange are those of City Zone with our results being consolidated from the date of the Share Exchange. The equity section and earnings per share have been retroactively restated to reflect the reverse acquisition and no goodwill has been recorded. | |||||||||||||
City Zone was incorporated in the British Virgin Islands (“BVI”) on July 27, 2009 under the BVI Business Companies Act of 2004. In November 2009, pursuant to the restructuring plan set out below, City Zone became the holding company of a group of companies comprising Most Smart International Limited ("Most Smart"), Redsun Technology (Shenzhen) Co. Limited (“Shenzhen Redsun”), Shenzhen JiRuHai Technology Co., Ltd. ("Shenzhen JiRuHai"), Detian Yu, JinzhongDeyu, JinzhongYongcheng and JinzhongYuliang. | |||||||||||||
Restructuring | |||||||||||||
In November 2009, pursuant to a restructuring plan intended to ensure compliance with PRC rules and regulations, City Zone, through a series of acquisitions and wholly-owned subsidiaries, acquired 100% of the equity interests in JinzhongDeyu, JinzhongYuliang, and JinzhongYongcheng. The former shareholders and key management of JinzhongDeyu, JinzhongYongcheng, and JinzhongYuliang became the ultimate controlling parties and key management of City Zone. This restructuring has been accounted for as a recapitalization of JinzhongDeyu, JinzhongYongcheng and JinzhongYuliang with no adjustment to the historical basis of the assets and liabilities of these companies, while the historical financial positions and results of operations are consolidated as if the restructuring occurred as of the beginning of the earliest period presented in our accompanying consolidated financial statements. For the purpose of a consistent and comparable presentation, the consolidated financial statements have been prepared as if City Zone had been in existence since the beginning of the earliest and throughout the whole periods covered by these consolidated financial statements. | |||||||||||||
The Acquisition of the Taizihu Group | |||||||||||||
On February 2, 2012, Shenzhen Redsun, a company organized under the laws of PRC and a wholly-owned subsidiary of the Company, entered into a Stock Equity Transfer Agreement (the “Agreement”) whereby Shenzhen Redsun acquired 100 % of the issued and outstanding registered share capital of the Taizihu Group. In consideration for the acquisition of Taizihu Group, Shenzhen Redsun paid $ 2,342,168 (RMB14,773,222 ) in cash to Mr. Hao He, an individual, for 50 % of Taizihu, $ 1,522,409 (RMB 9,602,594 ) in cash to Mr. QingheXu, an individual, for 32.5 % of Taizihu and $ 819,759 (RMB 5,170,628 ) in cash to Mr. JinqingXie, an individual, for the remaining 17.5 % of Taizihu. Immediately prior to the execution of the Agreement, Taizihu owned 85 % of the issued and outstanding registered share capital of Huichun, and pursuant to the terms of the Agreement, Shenzhen Redsun acquired the remaining 15 % of the share capital of Huichun from Beijing Kanggang Food Development Co., Ltd. for $ 817,845 (RMB 5,158,556). The total amount of the consideration paid for the acquisition of the Taizihu Group was $ 5,502,181 (RMB 34,705,000), and such consideration was determined pursuant to arm’s length negotiations between the parties. As a result of the acquisition, the Company currently owns and controls 100 % of the Taizihu Group. | |||||||||||||
Consolidation Scope: | |||||||||||||
Details of our subsidiaries subject to consolidation are as follows: | |||||||||||||
Domicile and | Percentage | ||||||||||||
Date of | Registered | of | |||||||||||
Name of Subsidiary | Incorporation | Capital | Ownership | Principal Activities | |||||||||
City Zone Holdings Limited ("City Zone") | British Virgin Islands, July 27, 2009 | $ | 20,283,581 | 100 | % | Holding company of Most Smart | |||||||
Most Smart International Limited ("Most Smart") | Hong Kong, March 11, 2009 | $ | 1 | 100 | % | Holding company of Shenzhen Redsun | |||||||
Redsun Technology (Shenzhen) Co., Ltd. ("Shenzhen Redsun") | The PRC, August 20, 2009 | $ | 30,000 | 100 | % | Holding company of Shenzhen JiRuHai, Taizihu and Huichun | |||||||
Shenzhen JiRuHai Technology Co., Ltd.("Shenzhen JiRuHai") | The PRC, August 20, 2009 | $ | 14,638 | 100 | % | Holding company of Beijing Detian Yu | |||||||
Detian Yu Biotechnology (Beijing) Co., Ltd. ("Detian Yu") | The PRC, November 30, 2006 | $ | 7,637,723 | 100 | % | Wholesale distribution of simple-processed and deep-processed packaged food products and staple food. Holding company of the following first five entities. | |||||||
JinzhongDeyu Agriculture Trading Co., Ltd. ("JinzhongDeyu") | The PRC, April 22, 2004 | $ | 1,492,622 | 100 | % | Organic grains preliminary processing and wholesale distribution. | |||||||
JinzhongYongcheng Agriculture Trading Co., Ltd. ("JinzhongYongcheng") | The PRC, May 30, 2006 | $ | 1,025,787 | 100 | % | Corns preliminary processing and wholesale | |||||||
JinzhongYuliang Agriculture Trading Co., Ltd. ("JinzhongYuliang") | The PRC, March 17, 2008 | $ | 13,963,243 | 100 | % | Corns preliminary processing and wholesale distribution. | |||||||
Tianjin Guandu Food Co., Ltd. ("Tianjin Guandu") * | The PRC, June 21, 2011 | $ | 1,544,497 | 100 | % | Wholesale distribution of simple-processed and deep-processed packaged food products and staple food. | |||||||
HebeiYugu Grain Co., Ltd. ("HebeiYugu") | The PRC, July 25, 2011 | $ | 1,563,824 | 70 | % | Wholesale distribution of grain products and operating or acting as an agent of import & export business for grain products. | |||||||
Shanxi Taizihu Food Co., Ltd. (“Taizihu”) | The PRC, July 27, 2003 | $ | 1,208,233 | 100 | % | Producing and selling fruit beverages and soybean products. | |||||||
Shanxi HuiChun Bean Products Co., Ltd. (“Huichun”) | The PRC, September 2, 2007 | $ | 2,636,192 | 100 | % | Producing and selling fruit beverages and soybean products. | |||||||
Jilin Jinglong Agriculture Development Limited (“Jinglong”) | The PRC, October 10, 2012 | $ | 3,152,138 | 99 | % | Procurement, storage and sales of corn and grain. | |||||||
* | Tianjin Guandu completed the deregistration procedure with the Tianjin Industrial and Commercial Bureau on May 28, 2014. | ||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Basis of presentation | |||||
The unaudited consolidated financial statements include the financial statements of Deyu Agriculture Corp. and its subsidiaries. All significant intercompany account balances and transactions have been eliminated in consolidation. Results of operations of companies purchased are included from the dates of acquisition. | |||||
These accompanying consolidated financial statements have been prepared in accordance with US GAAP. The Company’s functional currency is the Chinese Yuan, or Renminbi (“RMB”); however, the accompanying consolidated financial statements have been translated and presented in United States Dollars (“USD”). | |||||
On April 27, 2010, as a result of the consummation of the Share Exchange, we changed our fiscal year end from May 31 to December 31 to conform to the fiscal year end of City Zone. | |||||
Use of estimates | |||||
The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes its estimates based on historical experience and various other assumptions and information that are available and believed to be reasonable at the time the estimates are made. Therefore, actual results could differ from those estimates under different assumptions and conditions. | |||||
Cash and cash equivalents | |||||
Cash and cash equivalents consist of cash on hand, cash in banks and all highly liquid investments with original maturities of three months or less. | |||||
Accounts receivable | |||||
Accounts receivable are recorded at net realizable value consisting of the carrying amount less allowance for doubtful accounts, as needed. We assess the collectability of accounts receivable based primarily upon the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends, and changes in customer payment patterns to evaluate the adequacy of these reserves. While management uses the best information available upon which to base estimates, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used for the purposes of analysis. The Company wrote off $834,917 of allowance for doubtful accounts for the period ended September 30, 2014 as a result of incentives offered to customers for accelerating collections of accounts receivable. The balance of allowance for doubtful accounts As of December 31, 2014 and December 31, 2013 was $1,337,364 and $984,717 respectively. | |||||
Inventories | |||||
The Company's inventories are stated at lower of cost or market. Cost is determined on a moving-average basis. Costs of inventories include purchase and related costs incurred in delivering products to their present location and condition. Market value is determined by reference to selling prices after the balance sheet date or to management’s estimates based on prevailing market conditions. Management periodically evaluates the composition of its inventories at least ddquarterly to identify slow-moving and obsolete inventories to determine if a valuation allowance is required. The balance of reserve for inventory valuation as of December 31, 2014 and December 31, 2013 was $140,582 and $4,603,929, respectively. | |||||
Property, plant, and equipment | |||||
Property, plant, and equipment are stated at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to earnings as incurred; in addition, renewals and betterments are capitalized. When property, plant, and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. | |||||
Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: | |||||
Useful | |||||
Life | |||||
(in years) | |||||
Automobiles | 5 | ||||
Buildings | 30-Oct | ||||
Office equipment | 5 | ||||
Machinery and equipment | 10-May | ||||
Furniture & fixtures | 5 | ||||
Construction-in-progress | |||||
Construction-in-progress consists of amounts expended for the construction of a new factory park, and the cost of the portion of the land use right that the new factory park occupied. Construction-in-progress is not depreciated until such time as the assets are completed and put into service. Once factory park construction is completed, the cost accumulated in construction-in-progress will be transferred to property, plant, and equipment. | |||||
Long-lived assets | |||||
The Company applies the provisions of FASB ASC Topic 360 (ASC 360), "Property, Plant, and Equipment" which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The Company periodically evaluates the carrying value of long-lived assets to be held and used in accordance with ASC 360, at least on an annual basis. ASC 360 requires the impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal. As of December 31, 2014 and December 31, 2013, the balance of impairment of construction-in-progress was $772,091 and $773,874, respectively. | |||||
Intangible assets | |||||
For intangible assets subject to amortization, an impairment loss is recognized if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the assets. As of December 31, 2014 and December 31, 2013, the balance of impairment of intangible assets was $6,557,755 and $6,572,902, respectively. | |||||
Fair value measurements | |||||
FASB ASC 820, “Fair Value Measurements” (formerly SFAS No. 157) defines fair value for certain financial and nonfinancial assets and liabilities that are recorded at fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. It requires that an entity measure its financial instruments to base fair value on exit price, maximize the use of observable units and minimize the use of unobservable inputs to determine the exit price. It establishes a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy increases the consistency and comparability of fair value measurements and related disclosures by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the assets or liabilities based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy prioritizes the inputs into three broad levels based on the reliability of the inputs as follows: | |||||
· | Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available. | ||||
· | Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||
· | Level 3 – Valuations based on inputs that are unobservable and not corroborated by market data. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. | ||||
This guidance applies to other accounting pronouncements that require or permit fair value measurements. On February 12, 2008, the FASB finalized FASB Staff Position (FSP) No. 157-2, Effective Date of FASB Statement No. 157 (ASC 820). This Staff Position delays the effective date of SFAS No. 157 (ASC 820) for nonfinancial assets and liabilities to fiscal years beginning after November 15, 2008 and interim periods within those fiscal years, except for those items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). The adoption of SFAS No. 157 (ASC 820) had no effect on the Company's financial position or results of operations for the year 2014 | |||||
We also analyze all financial instruments with features of both liabilities and equity under ASC 480-10 (formerly SFAS 150, “Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity”) and ASC 815-40 (formerly EITF 00-19, “Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock”). We have determined ASC 480-10 (formerly SFAS 150) and ASC 815-40 (formerly EITF 00-19) had no material effect on our financial position or results of operations for the year 2014 | |||||
Revenue recognition | |||||
The Company’s revenue recognition policies are in compliance with the SEC Staff Accounting Bulletin No. 104 (“SAB 104”). The Company recognizes product revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) our price to the customer is fixed or determinable and (iv) collection of the resulting accounts receivable is reasonably assured. The Company recognizes revenue for product sales upon transfer of title to the customer. Customer purchase orders and/or contracts are generally used to determine the existence of an arrangement. Shipping documents and the completion of any customer acceptance requirements, when applicable, are used to verify product delivery or that services have been rendered. The Company assesses whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. | |||||
The Company’s revenue is recognized net of value-added tax (VAT), reductions to revenue for estimated product returns, and sales discounts based on volume achieved in the same period that the related revenue is recorded. The estimates are based on historical sales returns, analysis of credit memo data and other factors known at the time. The sales discounts for the year ended December 31, 2014 and 2013 were not material. | |||||
We offer a right of exchange on our grain products sold through our relationships with grocery store networks. The consumer who purchases the product may exchange it for the same kind and quantity of product originally purchased. In accordance with FASB ASC 605-15-25-1 and 605-15-15-2, these are not considered returns for revenue recognition purposes. The returns of our products for the year ended December 31, 2014 and 2013 were not material. | |||||
Advertising costs | |||||
The Company expenses the cost of advertising as incurred or, as appropriate, the first time the advertising takes place. Advertising costs for the year ended December 31, 2014 and 2013 were $423,498 and $298,040, respectively. | |||||
Research and development | |||||
The Company expenses its research and development costs as incurred. Research and development expenses for the year ended December 31, 2014 and 2013 were not material. | |||||
Stock-based compensation | |||||
In December 2004, the Financial Accounting Standard Board, or the FASB, issued the Statement of Financial Accounting Standards, or SFAS, No. 123(R), “Share-Based Payment”, which replaces SFAS No. 123 and supersedes APB Opinion No. 25. SFAS No. 123(R) is now included in the FASB’s ASC Topic 718, “Compensation – Stock Compensation.” Under SFAS No. 123(R), companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees or independent contractors are required to provide services. Share-based compensation arrangements include stock options and warrants, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. In March 2005, the SEC issued Staff Accounting Bulletin No. 107, or SAB 107, which expresses views of the staff regarding the interaction between SFAS No. 123(R) and certain SEC rules and regulations and provides the staff’s views regarding the valuation of share-based payment arrangements for public companies. SFAS No. 123(R) permits public companies to adopt its requirements using one of two methods. On April 14, 2005, the SEC adopted a new rule amending the compliance dates for SFAS No. 123(R). Companies may elect to apply this statement either prospectively, or on a modified version of retrospective application under which financial statements for prior periods are adjusted on a basis consistent with the pro forma disclosures required for those periods under SFAS No. 123. | |||||
The Company has fully adopted the provisions of FASB ASC 718 and related interpretations as provided by SAB 107. As such, compensation cost is measured on the date of grant as the fair value of the share-based payments. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. | |||||
Income taxes | |||||
The Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes.” ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||
Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no material effect on the Company’s consolidated financial statements for the year 2014 | |||||
Foreign currency translation and comprehensive income | |||||
U.S. GAAP requires that recognized revenue, expenses, gains, and losses be included in net income. Certain statements, however, require entities to report specific changes in assets and liabilities, such as gain or loss on foreign currency translation, as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income. The functional currency of the Company is RMB. The unit of RMB is in Yuan. Translation gains are classified as an item of other comprehensive income in the stockholders’ equity section of the consolidated balance sheet. | |||||
Statement of cash flows | |||||
In accordance with FASB ASC Topic 230, “Statement of Cash Flows,” cash flows from the Company’s operations is calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the consolidated statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. | |||||
Recent pronouncements | |||||
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income.” This ASU does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, this guidance requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. For public entities, the guidance is effective prospectively for reporting periods beginning after December 15, 2012. For nonpublic entities, the guidance is effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For public entities, the guidance is effective prospectively for reporting periods beginning after December 15, 2013. For nonpublic entities, the guidance is effective prospectively for reporting periods beginning after December 15, 2014. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||
In December 2013, the FASB issued ASU 2013-12, “Definition of a Public Business Entity”. The Board has decided that it should proactively determine which entities would be within the scope of the Private Company Decision-Making Framework: A Guide for Evaluating Financial Accounting and Reporting for Private Companies (Guide). This will aim to minimize the inconsistency and complexity of having multiple definitions of, or a diversity in practice as to what constitutes, a nonpublic entity and public entity within U.S. generally accepted accounting principles (GAAP) on a going-forward basis. This Update addresses those issues by defining public business entity. The Accounting Standards Codification includes multiple definitions of the terms nonpublic entity and public entity. The amendment in this Update improves U.S. GAAP by providing a single definition of public business entity for use in future financial accounting and reporting guidance. The amendment does not affect existing requirements. There is no actual effective date for the amendment in this Update. However, the term public business entity will be used in Accounting Standards Updates which are the first Updates that will use the term public business entity. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||
In May 2014, the FASB issued ASU 2014-9, “Revenue from Contracts with Customers”. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. For a public entity, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40)”. In connection with preparing financial statements for each annual and interim reporting period, an entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||
ACCOUNTS_RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 3. ACCOUNTS RECEIVABLE | |||||||
Accounts receivable consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accounts receivable | $ | 22,873,889 | $ | 33,311,614 | ||||
Less: Allowance for doubtful accounts | -1,337,364 | -984,717 | ||||||
Accounts receivable, net | $ | 21,536,525 | $ | 32,326,897 | ||||
INVENTORY
INVENTORY | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory Disclosure [Text Block] | NOTE 4. INVENTORY | |||||||
Inventory consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 751,095 | $ | 1,020,486 | ||||
Work in process | - | 49,717 | ||||||
Finished goods | 8,125,176 | 17,752,203 | ||||||
Supplies | 1,080,242 | 1,099,747 | ||||||
Reserve for inventory valuation | -140,582 | -4,603,929 | ||||||
Total Inventory | $ | 9,815,931 | $ | 15,318,224 | ||||
The balance of reserve for inventory valuation as of December 31, 2014 and December 31, 2013 was $140, 582 and $4,603,929 respectively. | ||||||||
PREPAID_EXPENSES
PREPAID EXPENSES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Prepaid Expenses Disclosure [Text Block] | NOTE 5. PREPAID EXPENSES | |||||||
Prepaid expenses consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Deductible value-added taxes (VAT) | $ | 637,612 | $ | 356,876 | ||||
Prepaid rent | 290,190 | 368,827 | ||||||
Prepaid other expenses | 11,627 | 435,599 | ||||||
Total | $ | 939,429 | $ | 1,161,302 | ||||
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6. PROPERTY, PLANT, AND EQUIPMENT | |||||||
Property, plant, and equipment consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Automobiles | $ | 1,021,089 | $ | 1,046,542 | ||||
Buildings | 16,587,178 | 17,480,188 | ||||||
Office equipment | 986,892 | 1,012,007 | ||||||
Machinery and equipment | 8,869,381 | 8,386,357 | ||||||
Furniture and fixtures | 111,615 | 114,398 | ||||||
Total cost | 27,576,155 | 28,039,492 | ||||||
Less: Accumulated depreciation | -10,556,028 | -8,788,441 | ||||||
Property, plant, and equipment, net | $ | 17,020,127 | $ | 19,251,051 | ||||
The buildings owned by the Company located in Jinzhong and Quwo in Shanxi Province, China are used for production, warehousing and offices for our corn and grains business. | ||||||||
As of December 31, 2014, $5.7 million (RMB 35.2 million) of buildings, machinery and equipment owned by the Taizihu Group were pledged as collateral for short-term bank loans. | ||||||||
Depreciation expense for the year ended December 31, 2014 and 2013 was $1,767,588 and $1,983,394, respectively. | ||||||||
CONSTRUCTIONINPROGRESS
CONSTRUCTION-IN-PROGRESS | 12 Months Ended |
Dec. 31, 2014 | |
Construction In Progress Disclosure Abstract [Abstract] | |
Construction In Progress Disclosure [Text Block] | NOTE 7. CONSTRUCTION-IN-PROGRESS |
Construction-in-progress amounted to $353,963 as of December 31, 2014 was mainly represents the cost of the water purification system, building and workshop decoration of a new bean-based products production line in Huichun. | |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Intangible Assets Disclosure [Text Block] | NOTE 8. INTANGIBLE ASSETS | |||||||
Intangible assets consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Land use rights | $ | 14,341,429 | $ | 14,698,916 | ||||
Software-ERP System and B2C platform | 740,945 | 1,081,531 | ||||||
Less: Accumulated amortization | -1,110,323 | -1,277,565 | ||||||
Impairment loss | -6,512,731 | -6,675,073 | ||||||
Total | $ | 7,459,320 | $ | 7,827,809 | ||||
According to government regulations of the PRC, the PRC Government owns all land. The Company owns the land use rights of farmland and industrial land. | ||||||||
JingzhongDeyu, one of the Company-owned land use rights of the 17,000 acres of farmlands in Jinzhong, Shanxi Province. There is no active market for trading of land use rights of those farmlands and the Company could not assess the fair market value of the land use rights based on quoted prices in active markets. The Company assessed fair value of the land use rights based on discounted cash flow and determined that it was less than the carrying value. The balance of impairment of farmland use rights as of December 31, 2014 and December 31, 2013 was $5,819,359 and $5,832,800, respectively. As of December 31, 2014, the original value of the land use rights of the farmland was $7,516,359 and was written-down to $1,697,000. | ||||||||
The Company determined the ERP system and B2C platform owned by JingzhongDeyu for retail sales of the Grain Division was not applicable for its current business operations due to the reduction of retail sales. The balance of impairment of ERP system and B2C platform as of December 31, 2014 and December 31, 2013 was $738,396 and $740,102, respectively. As of December 31, 2014, the carrying value of ERP system and B2C platform was $1,047,610 and was written down to $0. | ||||||||
The Company leases and has obtained a certificate of right of use on 11,667 square meters with the PRC Government in Jinzhong, Shanxi Province where JinzhongDeyu's buildings and production facility are located. The term of the right is four to five years and is automatically renewed upon expiration. The right was fully amortized as of December 31, 2010 using the straight-line method. On June 18, 2012, the Company received the extended land use right certificate and the term of the right was extended to March 14, 2037. | ||||||||
Huichun leases and has obtained a certificate of right to use on 100,000 square meters of industrial land with the PRC Government in Quwo County, Shanxi Province where Taizihu Group’s buildings and production facility are located. The term of the right is 50 years from October 28, 2008 to October 27, 2058. The amortization of the land use right was commenced in October 2008 using the straight-line method over 50 years. | ||||||||
As of December 31, 2014, $3,892,585 (RMB 19 million) of the land use right owned by Taizihu Group was pledged as collateral for short-term bank loans. | ||||||||
Amortization expense of the intangible assets for the year ended December 31, 2014 and 2013 was $167,242 and $382,826, respectively. | ||||||||
SHORTTERM_LOANS
SHORT-TERM LOANS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Short-Term Loan [Text Block] | NOTE 9. SHORT-TERM LOANS | ||||||||
Short-term loans consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Bank loan payable to Agriculture Development Bank of China, bearing interest at the prime rate based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of December 31, 2014 and December 31, 2013 were 6.00% and the pass-due interest rate was 7.8%. The term of the loan started from August 14, 2012 with maturity date on August 13, 2013. The loan was obtained by Taizihu and pledged by its buildings and land use right. On July 31, 2013 the loan was repaid for $66,075 (or RMB400,000). As of December 31, 2014, the loan balance was $2,353,093 (or RMB14,600,000). As of the date of this filing, the Company has been in negotiation with the lender on renewal of the loan. The Company is not currently able to predict the probability of the success on the renewal and will repay the loan immediately if the loan cannot be renewed. | $ | 2,353,093 | $ | 2,411,748 | |||||
Bank loan payable to Agriculture Development Bank of China, bearing interest at the prime rate, based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of December 31, 2014 and December 31, 2013 were 6.0% and the pass-due interest rate was 7.8%. The term of the loan started from September 18, 2012 with maturity date on September 17, 2013. The loan was obtained by Taizihu and pledged by its buildings and land use right. As of the date of this filing, the Company has been in negotiation with the lender on renewal of the loan. The Company is not currently able to predict the probability of the success on the renewal and will repay the loan immediately if the loan cannot be renewed. | 1,450,537 | 1,486,694 | |||||||
Bank loan payable to Jinzhong City Yuci District Rural Credit Union Co., Ltd., bearing interest at a fixed rate of prime rate plus 145% of prime rate, of which prime rate was based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of December 31, 2014 were 14.688%. The renewed term of the loan started from September 12, 2014 with maturity date on September 11, 2015. The loan was obtained by JinzhongYongcheng and guaranteed by YuciJinmao Food Processing Factory, a related party, for a period of two years starting from September 17, 2015. | 1,369,951 | - | |||||||
Bank loan payable to Jinzhong City Yuci District Rural Credit Union Co., Ltd., bearing interest at a fixed rate of prime rate plus 145% of prime rate, of which prime rate was based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of December 31, 2014 were 14.688%. The renewed term of the loan started from September 12, 2014 with maturity date on September 11, 2015. The loan was obtained by JinzhongYuliang and guaranteed by YuciJinmao Food Processing Factory, a related party, for a period of two years starting from September 17, 2015. | 1,369,951 | - | |||||||
Bank loan payable to Agriculture Development Bank of China, bearing interest at the prime rate, based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rate as of December 31, 2014 was 6.0% and the pass-due interest rate was 7.8%. The term of the loan started from January 4, 2013 with maturity date on January 3, 2014. The loan was obtained by Taizihu and pledged by its buildings and land use right. As of the date of this filing, the Company has been in negotiation with the lender on renewal of the loan. The Company is not currently able to predict the probability of the success on the renewal and will repay the loan immediately if the loan cannot be renewed. | 725,269 | 743,347 | |||||||
Bank loan payable to Bank of Communications Gongzhufensubbranch, bearing interest at a fix rate of prime rate, of which prime rate was based on one-year loan interest rate released by The People's Bank of China. The term of the loan started from December 15, 2013 with maturity date on December 16, 2014. The loan was obtained by Detian Yu. The loan was paid off on December 25, 2014. | - | 14,867 | |||||||
Bank loan payable to Jinzhong City Yuci District Rural Credit Union Co., Ltd., bearing interest at a fixed rate of prime rate plus 130% of prime rate, of which prime rate was based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of June 30, 2014 were 15.084%. The term of the loan started from September 6, 2013 with maturity date on August 22, 2014. The loan was obtained by JinzhongYongcheng and guaranteed by YuciJinmao Food Processing Factory, a related party, for a period of two years starting from August 23, 2014. The loan was paid off on September 11, 2014. | - | 1,404,100 | |||||||
Bank loan payable to Jinzhong City Yuci District Rural Credit Union Co., Ltd., bearing interest at a fixed rate of prime rate plus 130% of prime rate, of which prime rate was based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of June 30, 2014 were 15.084%. The term of the loan started from September 6, 2013 with maturity date on August 22, 2014. The loan was obtained by JinzhongYongcheng and guaranteed by YuciJinmao Food Processing Factory, a related party, for a period of two years starting from August 23, 2014. The loan was paid off on September 11, 2014. | - | 1,404,100 | |||||||
Total | $ | 7,268,801 | $ | 7,464,856 | |||||
ACCRUED_EXPENSES
ACCRUED EXPENSES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Liabilities Disclosure [Text Block] | NOTE 10. ACCRUED EXPENSES | |||||||
Accrued expenses consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued VAT and other taxes | $ | 422,049 | $ | 261,714 | ||||
Accrued payroll | 179,117 | 167,046 | ||||||
Others | 805,353 | 574,125 | ||||||
Total | $ | 1,406,519 | $ | 1,002,885 | ||||
LOSS_ON_INVENTORY_VALUATION_RE
LOSS ON INVENTORY VALUATION RESERVE | 12 Months Ended |
Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | |
Loss On Inventory Valuation Reserve Disclosure [Text Block] | NOTE 11. LOSS ON INVENTORY VALUATION RESERVE |
Loss on inventory valuation reserve for the year ended December 31, 2013 represents $4,391,580 of loss on inventory valuation reserve due to the quality deterioration of some of the corn inventories caused by extreme weather condition and $86,594 of loss on inventory valuation reserve for obsolete grain products. | |
LOSS_ON_IMPAIRMENT_OF_ASSET_VA
LOSS ON IMPAIRMENT OF ASSET VALUATION | 12 Months Ended |
Dec. 31, 2014 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment Charges [Text Block] | NOTE 12. LOSS ON IMPAIRMENT OF ASSET VALUATION |
Loss on impairment of asset valuation was $7,346,776 for the year ended December 31, 2013, which represents $5,832,800 impairment loss of the land use rights of farmland located in Jinzhong, Shanxi Province, $773,874 loss resulted from the termination of the construction of an uncompleted building in the subsidiary Huichun, and $740,102 loss resulted from the idle ERP system for retail sales in the Grain Division. | |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Disclosure [Text Block] | NOTE 13. INCOME TAXES | |||||||
United States | ||||||||
Deyu Agriculture Corp. is incorporated in the State of Nevada in the United States of America and is subject to the U.S. federal and state taxation. No provision for income taxes have been made as the Company has no taxable income in the U.S. The applicable income tax rate for the Company for the year ended December 31, 2014 and 2013 was 34%. No tax benefit has been realized since a 100% valuation allowance has offset deferred tax asset resulting from the net operating losses. | ||||||||
British Virgin Islands | ||||||||
City Zone, a wholly-owned subsidiary of the Company, is incorporated in the BVI and, under the current laws of the BVI, is not subject to income taxes. | ||||||||
Hong Kong | ||||||||
Most Smart, a wholly-owned subsidiary of the Company, is incorporated in Hong Kong. Most Smart is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. No provision for income taxes have been made as Most Smart has no taxable income in Hong Kong. | ||||||||
People’s Republic of China | ||||||||
Under the Enterprise Income Tax (“EIT”) Law of the PRC, the standard EIT rate is 25%. The PRC subsidiaries of the Company are subject to PRC income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which they operate. According to the Tax Pronouncement [2008] No. 149 issued by the State Administration of Tax of the PRC, the preliminary processing industry of agricultural products is entitled to EIT exemption starting January 1, 2008. Three of the Company’s wholly-owned subsidiaries located in the Shanxi Province, China, including JinzhongDeyu, JinzhongYongcheng and JinzhongYuliang, are subject to the EIT exemption. All other subsidiaries are subject to the 25% EIT rate. | ||||||||
The provision for income taxes on income consisted of the following for the year ended December 31, 2014 and 2013: | ||||||||
For The Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Current income tax expense (benefit) | ||||||||
U.S. | $ | - | $ | - | ||||
PRC | 501,262 | 604,450 | ||||||
Total current expense (benefit) | $ | 501,262 | $ | 604,450 | ||||
Deferred income tax expense (benefit) | ||||||||
U.S. | $ | - | $ | - | ||||
PRC | - | - | ||||||
Income tax expense (benefit) | $ | 501,262 | $ | 604,450 | ||||
The following is a reconciliation of the statutory tax rate to the effective tax rate for the year ended December 31, 2014 and 2013: | ||||||||
For The Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Expected U.S. income tax expense | 34 | % | 34 | % | ||||
Increase (decrease) in taxes resulting from: | ||||||||
Tax-exempt income | -33.9 | % | -28.1 | % | ||||
Foreign tax differential | 0.3 | % | -1.8 | % | ||||
Change in valuation allowance | 3.4 | % | -8.5 | % | ||||
Intercompany elimination | 0 | % | 2 | % | ||||
Other | -6.9 | % | 0.1 | % | ||||
Income tax expense | -3 | % | -2.3 | % | ||||
Significant components of the Company’s net deferred tax assets as of December 31, 2014 and December 31, 2013 are presented in the following table: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Deferred tax assets | ||||||||
Net operating loss carryforwards (NOL) | $ | 5,696,456 | $ | 5,090,602 | ||||
Share-based compensation | 407,099 | 435,844 | ||||||
Others | 438,122 | 440,331 | ||||||
Total | 6,541,677 | 5,966,777 | ||||||
Less: Valuation allowance | -6,541,677 | -5,966,777 | ||||||
Total deferred tax assets, net | $ | - | $ | - | ||||
As of December 31, 2014, the Company accrued a 100% valuation allowance on its deferred tax assets based on the assessment on the probability of future reversion. | ||||||||
EXTRAORDINARY_LOSS_AFTER_TAXES
EXTRAORDINARY LOSS (AFTER TAXES) | 12 Months Ended |
Dec. 31, 2014 | |
Extraordinary and Unusual Items [Abstract] | |
Extraordinary Items Disclosure [Text Block] | NOTE 14. EXTRAORDINARY LOSS (AFTER TAXES) |
On April 19, 2013 , an unexpected heavy snow storm collapsed the warehouses located in Taiyuan, Shanxi Province which were leased by the Company’s Grain Division and caused about $1,212,430 in damage to our grain goods stored in those warehouses. | |
NET_INCOME_LOSS_PER_SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Net Income Per Share [Text Block] | NOTE 15. NET INCOME (LOSS) PER SHARE | ||||||||||
Reconciliation of the basic and diluted net income (loss) per share was as follows: | |||||||||||
Amounts | Shares | Per Share | |||||||||
(Numerator) | (Denominator) | Amount | |||||||||
For the Year ended December 31, 2014: | |||||||||||
Net income (loss) attributable to common stockholders - basic | $ | -17,356,472 | 10,974,596 | $ | -1.58 | ||||||
Preferred dividends applicable to convertible preferred stocks | - | - | |||||||||
Net income (loss) attributable to common stockholders - diluted | $ | -17,356,472 | 10,974,596 | $ | -1.58 | ||||||
For the Year ended December 31, 2013: | |||||||||||
Net income (loss) attributable to common stockholders - basic | $ | -26,818,546 | 10,625,170 | $ | -2.52 | ||||||
Preferred dividends applicable to convertible preferred stocks | |||||||||||
Net income (loss) attributable to common stockholders - diluted | $ | -26,818,546 | 10,625,170 | $ | -2.52 | ||||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | NOTE 16. SHAREHOLDERS’ EQUITY | ||||||||||||||||
Reverse Acquisition and Private Placement | |||||||||||||||||
On April 27, 2010, we completed the acquisition of City Zone by means of a Share Exchange with (i) City Zone, (ii) the City Zone Shareholders and (iii) our principal shareholders (see NOTE 1). Pursuant to the terms of the Share Exchange, Expert Venture and the other City Zone Shareholders transferred to us all of the shares of City Zone in exchange for the issuance of 8,736,932 shares of our common stock so that Expert Venture and the other minority shareholders of City Zone shall own at least a majority of our outstanding shares. | |||||||||||||||||
Our directors approved the Share Exchange and the transactions contemplated thereby. The directors of City Zone also approved the Share Exchange and the transactions contemplated thereby. | |||||||||||||||||
As a result of the Share Exchange, we acquired 100% of the equity interests of City Zone, the business and operations of which now constitute our primary business and operations through its wholly-owned PRC subsidiaries. Specifically, as a result of the Share Exchange: | |||||||||||||||||
· | We issued 8,736,932 shares of our common stock to the City Zone Shareholders; | ||||||||||||||||
· | The ownership position of our shareholders who were holders of common stock immediately prior to the Share Exchange changed from 100% to 9.5% (fully diluted) of our outstanding shares; and | ||||||||||||||||
· | City Zone Shareholders were issued our common stock constituting approximately 65.71% of our fully diluted outstanding shares. | ||||||||||||||||
Immediately after the Share Exchange, we entered into a securities purchase agreement (the “Purchase Agreement”) with certain accredited investors (the “Investors”) for the issuance and sale in a private placement of 1,866,174 Units at $4.40 per Unit, with each Unit consisting of one share of Series A convertible preferred stock, par value $ 0.001 per share (the “Investor Shares”) and a warrant to purchase 0.4 shares of our common stock with an exercise price of $ 5.06 per share (the “Warrants”). We initially received gross proceeds from the sale of the 1,866,174 Investor Shares and Warrants to purchase up to 746,479 shares of our common stock of $8,211,166 (the “Private Placement”). | |||||||||||||||||
In connection with the Private Placement, we also entered into a registration rights agreement (the “Registration Rights Agreement”) with the Investors, in which we agreed to file a registration statement (the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”) to register for resale the Investor Shares, within 60 calendar days of April 27, 2010, and use our best efforts to have the Registration Statement declared effective within 180 calendar days of April 27, 2010. On October 21, 2010, the SEC declared the Registration Statement effective and no liquidated damages were incurred. | |||||||||||||||||
In connection with the Private Placement, Maxim Group, LLC acted as our financial advisor and placement agent (the “Placement Agent” or “Maxim”). The Placement Agent received a cash fee equal to 7% of the gross proceeds of the Private Placement. Maxim also received warrants to purchase 171,911 shares of our common stock at a price per share of $4.84 (the “Placement Agent Warrants”). Pursuant to the original placement agreement entered into by and between Detian Yu and the Placement Agent on January 27, 2010 (the “Original Placement Agreement”), we engaged the Placement Agent to act as the exclusive agent to sell the Units in this offering on a “commercially reasonable efforts basis.” The Placement Agent also received a cash corporate finance fee equally to 1% of our gross proceeds raised in the offering, payable at the time of each closing; five (5) year warrants to purchase that number of shares of Series A convertible preferred stock equal to 5% of the aggregate number of shares of Series A convertible preferred stock underlying the Units issued pursuant to the offering; and a non-refundable cash retainer of $25,000 payable upon the execution of the retainer agreement. We also agreed to pay for all of the reasonable expenses the Placement Agent incurred in connection with the offering. | |||||||||||||||||
On May 10, 2010, we closed on the second and final round of the private placement offering for the issuance and sale of 589,689 Units, consisting of 589,689 shares of Series A convertible preferred stock and 235,883 five-year Series A Warrants with an exercise price of $ 5.06 per share, to certain Investors for total gross proceeds of $2,594,607. | |||||||||||||||||
We raised an aggregate amount of $10,805,750 in the offering in two closing events. As of the final closing, we had 9,999,999 shares of common stock issued and outstanding. In connection with the offering, we issued a total of 2,455,863 shares of Series A convertible preferred shares and 982,362 Series A Warrants to the investors. Additionally, the Placement Agent received 171,911 warrants. | |||||||||||||||||
Common Stock | |||||||||||||||||
As of the final closing of the Private Placement, we had 9,999,999 shares of common stock issued and outstanding. Between the final closing of the Private Placement and December 31, 2014, an aggregate of 964,329 shares of Series A convertible preferred stock were converted into 964,329 shares of common stock, and 80,000 common stocks were issued. As of December 31, 2014, the total number of shares of common stock issued and outstanding was 11,044,328 shares. | |||||||||||||||||
Series A Convertible Preferred Stock | |||||||||||||||||
Holders of Series A convertible preferred stock (“Series A Preferred”) are entitled to receive cumulative dividends in preference to the holders of our common stock at an annual rate of 5% of the applicable per Series A Preferred original purchase price (the “Dividend Preference” and the “Dividends”). If, after the Dividend Preference has been fully paid or declared and set apart, the Company shall make any additional distributions, then the holders of Series A Preferred shall participate with the holders of common stock on an as-converted basis with respect to such distributions. Dividends are payable in cash or shares of Series A Preferred, at the Company’s option. | |||||||||||||||||
Upon any liquidation, dissolution or winding up of the Company, the holders of Series A Preferred will be entitled to receive, out of the assets of the Company available for distribution to its shareholders, an amount equal to $4.40 per share (the “Liquidation Preference Amount”), before any payment shall be made or any assets distributed to the holders of the common stock (the “Liquidation Preference”). | |||||||||||||||||
Each holder of Series A Preferred will have the right, at the option of the holder at any time on or after the issuance of the Series A Preferred, without the payment of additional consideration, to convert the Series A Preferred into a number of fully paid and nonassessable shares of common stock equal to: (i) the Liquidation Preference Amount of such share divided by (ii) the Conversion Price in effect as of the date of the conversion in accordance with the Certificate of Designations of the Series A Preferred. | |||||||||||||||||
For a period of two (2) years following the issuance of the Series A Preferred, the conversion price of Series A Preferred was subject to adjustment for issuances of common stock (or securities convertible or exchangeable into shares of common stock) at a purchase price less than the conversion price of the Series A Preferred. The Series A Preferred does not contain any repurchase or redemption rights. | |||||||||||||||||
Current accounting standards require that we evaluate the terms and conditions of convertible preferred stock to determine (i) if the nature of the hybrid financial instrument, based upon its economic risks, is more akin to an equity contract or a debt contract for purposes of establishing classification of the embedded conversion feature and (ii) the classification of the host or hybrid financial instrument. Based upon a review of the terms and conditions of the Series A Preferred, the Company has concluded that the financial instrument is more akin to an equity financial instrument. The major consideration underlying this conclusion is that the Series A Preferred is a perpetual financial instrument with no stated maturity or redemption date, or other redemption that is not within the Company’s control. Other considerations in support of the equity conclusion included the voting rights and conversion feature into common shares. While the cumulative dividend feature may, in some instances, be likened to a debt-type coupon, the absence of a stated maturity date was determined to establish the cumulative dividend as a residual return, which does not obviate the equity nature of the financial instrument. Further, there are no cash redemption features that are not within the control of our management. As a result, classification in shareholders’ equity is appropriate for the Series A Preferred. | |||||||||||||||||
As of December 31, 2014, an aggregate of 964,329 shares of Series A Preferred were converted into 964,329 shares of common stock and an aggregate of 403,458 shares of Series A Preferred were issued as dividends to the shareholders of Series A Preferred. As of December 31, 2014, the total number of shares of Series A Preferred issued and outstanding was 1,894,992 shares. | |||||||||||||||||
For the year ended December 31, 2014 and 2013, the Company recorded $418,624 and $478,769 in preferred dividend expenses, respectively. | |||||||||||||||||
Series A Warrants | |||||||||||||||||
We issued Series A Warrants to the Investors and the Placement Agent having strike prices of $5.06 and $4.84, respectively, and they expire five (5) years from the original date of issuance. The strike prices are subject to adjustment only for changes in our capital structure, but allow for cashless exercise under a formula that limits the aggregate issuable common shares. There are no redemption features embodied in the warrants and they have met the conditions provided in current accounting standards for equity classification. | |||||||||||||||||
There were 982,362 Series A Warrants sold together with the Series A Preferred to the Investors, each of which: | |||||||||||||||||
(a) | entitles the holder to purchase one (1) share of common stock; | ||||||||||||||||
(b) | are exercisable at any time after consummation of the transactions contemplated by the Purchase Agreement and shall expire on the date that is five years following the original issuance date of the Series A Warrants; | ||||||||||||||||
(c) | are exercisable, in whole or in part, at an exercise price of $5.06 per share of common stock; and | ||||||||||||||||
(d) | are exercisable only for cash (except that there will be a cashless exercise option if, after twelve months from the Issue Date, (i) the Per Share Market Value of one share of common stock is greater than the Warrant Price (at the date of calculation) and (ii) a registration statement under the Securities Act providing for the resale of the common stock issuable upon exercise of Warrant Shares is not in effect, in lieu of exercising the Series A Warrant by payment of cash). | ||||||||||||||||
Aggregate gross proceeds from the two (2) closing events amounted to $10,805,750. Direct financing costs totaled $1,742,993, of which $1,555,627 was paid in cash and the balance of $187,366 represents the fair value of warrants linked to 171,911 shares of our common stock that were issued to Maxim. The proceeds and the related direct financing costs were allocated to the Series A Preferred and the Series A Warrants (classified in paid-in capital) based upon their relative fair values. The following table summarizes the components of the allocation: | |||||||||||||||||
Paid-in | |||||||||||||||||
Series A | Capital | ||||||||||||||||
Preferred | Warrants | Total | |||||||||||||||
Fair values of financial instruments | $ | 10,248,092 | $ | 1,039,978 | $ | 11,288,070 | |||||||||||
Gross proceeds | $ | 9,810,227 | $ | 995,523 | $ | 10,805,750 | |||||||||||
Direct financing costs | -1,581,550 | -161,443 | -1,742,993 | ||||||||||||||
Fair value of placement agent warrants | - | 187,366 | 187,366 | ||||||||||||||
$ | 8,228,677 | $ | 1,021,446 | $ | 9,250,123 | ||||||||||||
Fair value considerations: | |||||||||||||||||
Our accounting for the sale of Series A Preferred and Series A Warrants, and the issuance of the Series A Warrants to Maxim required the estimation of fair values of the financial instruments on the financing inception date. The development of fair values of financial instruments requires the selection of appropriate methodologies and the estimation of often subjective assumptions. We selected the valuation techniques based upon consideration of the types of assumptions that market participants would likely consider in exchanging the financial instruments in market transactions. The Series A Preferred was valued based upon a common stock equivalent method, enhanced by the cumulative dividend feature. The dividend feature was valued as the estimated cash flows of the dividends discounted to present value using an estimated weighted average cost of capital. The warrants were valued using a Black-Scholes-Merton Valuation Technique because it embodies all of the requisite assumptions (including trading volatility, estimated terms and risk free rates) necessary to fair value these instruments. | |||||||||||||||||
These fair values were necessary to develop relative fair value calculation for allocations of certain elements of the financing arrangement, principally proceeds and the related direct financing costs. The following tables reflect assumptions used to determine the fair value of the Series A Preferred: | |||||||||||||||||
Series A | Series A | ||||||||||||||||
Fair Value | Preferred | Preferred | |||||||||||||||
Hierarchy | April 27, | May 10, | |||||||||||||||
Level | 2010 | 2010 | |||||||||||||||
Indexed common shares | 1,866,174 | 589,689 | |||||||||||||||
Components of fair value: | |||||||||||||||||
Common stock equivalent value | $ | 6,631,403 | $ | 2,083,094 | |||||||||||||
Dividend feature | 659,821 | 209,439 | |||||||||||||||
$ | 7,291,224 | $ | 2,292,533 | ||||||||||||||
Significant assumptions: | |||||||||||||||||
Common stock price | 3 | 3.55 | 3.53 | ||||||||||||||
Horizon for dividend cash flow projection | 3 | 2 | 2 | ||||||||||||||
Weighted average cost of capital ("WACC") | 3 | 15.91 | % | 15.55 | % | ||||||||||||
Fair value hierarchy of the above assumptions can be categorized as follows: | |||||||||||||||||
-1 | Level 1 inputs are quoted prices in active markets for identical assets and liabilities, or derived there from. There were no level 1 inputs. | ||||||||||||||||
-2 | Level 2 inputs are significant other observable inputs. There were no level 2 inputs. | ||||||||||||||||
-3 | Level 3 inputs are unobservable inputs. Inputs for which any parts are level 3 inputs are classified as level 3 in their entirety. | ||||||||||||||||
· | Stock price- Given that management did not believe our trading market price was indicative of the fair value of our common stock at the measurement date, the common stock price value was derived implicitly from an iterative process based upon the assumption that the consideration of the Private Placement was the result of an arm’s length transaction. The Private Placement was composed of shares of Series A Preferred and Series A Warrants which were both indexed to our common stock; accordingly, we used an iterative process to determine the value of our common stock in order for the fair value of the Series A Preferred and Series A Warrants to equal the amount of consideration received in the Private Placement. | ||||||||||||||||
⋅ | Dividend horizon- We estimated the horizon for dividend payment at 2 years. | ||||||||||||||||
⋅ | WACC- The rates utilized to discount the cumulative dividend cash flows to their present values were based on a weighted average cost of capital of 18.94 % and 18.60 %, as of April 27, 2010 and May 10, 2010, respectively. This discount rate was determined after consideration of the rate of return on debt capital and equity that typical investors would require in an investment in companies similar in size and operating in similar markets as Deyu Agriculture Corp. The cost of equity was determined using a build-up method which begins with a risk free rate and adds expected risk premiums designed to reflect the additional risk of the investment. Additional premiums or discounts related specifically to us and the industry are also added or subtracted to arrive at the final cost of equity rate. The cost of debt was determined based upon available financing terms. | ||||||||||||||||
⋅ | Significant inputs and assumptions underlying the model calculations related to the warrant valuations are as follows: | ||||||||||||||||
The following tables reflect assumptions used to determine the fair value of the Series A Warrants: | |||||||||||||||||
Fair | April 27, 2010 | May 10, 2010 | |||||||||||||||
Value | |||||||||||||||||
Hierarchy | Investor | Agent | Investor | Agent | |||||||||||||
Level | warrants | warrants | warrants | Warrants | |||||||||||||
Indexed shares | 746,479 | 130,632 | 235,883 | 41,279 | |||||||||||||
Exercise price | 5.06 | 4.84 | 5.06 | 4.84 | |||||||||||||
Significant assumptions: | |||||||||||||||||
Stock price | 3 | 3.55 | 3.55 | 3.53 | 3.53 | ||||||||||||
Remaining term | 3 | 5 years | 5 years | 5 years | 5 years | ||||||||||||
Risk free rate | 2 | 2.39 | % | 2.39 | % | 2.24 | % | 2.24 | % | ||||||||
Expected volatility | 2 | 45.25 | % | 45.25 | % | 45.47 | % | 45.47 | % | ||||||||
Fair value hierarchy of the above assumptions can be categorized as follows: | |||||||||||||||||
-1 | There were no Level 1 inputs. | ||||||||||||||||
-2 | Level 2 inputs include: | ||||||||||||||||
• | Risk-free rate- This rate is based on publicly-available yields on zero-coupon U.S. Treasury securities with remaining terms to maturity consistent with the remaining contractual term of the Series A Warrants. | ||||||||||||||||
• | Expected volatility- We did not have a historical trading history sufficient to develop an internal volatility rate for use in the model. As a result, we have used a peer approach wherein the historical trading volatilities of certain companies with similar characteristics as ours and who had a sufficient trading history were used as an estimate of our volatility. In developing this model, no one company was weighted more heavily than another. | ||||||||||||||||
-3 | Level 3 inputs include: | ||||||||||||||||
• | Stock price- Given that management did not believe our trading market price was indicative of the fair value of our common stock at the measurement date, the stock price was determined implicitly from an iterative process based upon the assumption that the consideration of the Private Placement was the result of an arm’s length transaction. | ||||||||||||||||
• | Remaining term- We do not have a history to develop the expected term for our warrants. Accordingly, we have used the contractual remaining term in our calculations. | ||||||||||||||||
The following is a summary of the status and activity of warrants outstanding as of December 31, 2014: | |||||||||||||||||
Outstanding Warrants | |||||||||||||||||
Exercise Price | Number of Warrants | Average Remaining Contractual Life | |||||||||||||||
$ | 5.06 | 982,362 | 0.32 years | ||||||||||||||
$ | 4.84 | 171,911 | 0.32 years | ||||||||||||||
Total | 1,154,273 | ||||||||||||||||
Number of Warrants | |||||||||||||||||
Outstanding as of January 1, 2014 | 1,154,273 | ||||||||||||||||
Granted | - | ||||||||||||||||
Forfeited | - | ||||||||||||||||
Exercised | - | ||||||||||||||||
Outstanding as of December 31, 2014 | 1,154,273 | ||||||||||||||||
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 17. SHARE-BASED COMPENSATION | |||||||||||||
As of December 31, 2014, the Company had one share-based compensation plan as described below. The compensation cost that had been charged against income for the plan was $2,375 and $ 44,504 for the year ended December 31, 2014 and 2013, respectively. The related income tax benefit recognized was $808 and $15,131 for the year ended December 31, 2014 and 2013, respectively. A 100 % valuation allowance was assessed against the deferred tax assets derived from such tax benefit as of December 31, 2014 and 2013. | ||||||||||||||
On November 4, 2010, the Company’s Board of Directors approved the Company’s 2010 Share Incentive Plan. On November 8, 2010, a total of 931,000 non-qualified incentive stock options were approved by our Board of Directors and granted under the Plan to executives, key employees, independent directors, and consultants at an exercise price of $4.40 per share and on December 15, 2010, 40,000 non-qualified incentive stock shares were approved by our Board of Directors and granted under the Plan to a consultant at an exercise price of $4.40 per share, of which shall vest as follows: | ||||||||||||||
33 1/3% of the option grants vested one (1) month after the date of grant; | ||||||||||||||
33 1/3% of the option grants vested twelve (12) months after the date of grant; and | ||||||||||||||
33 1/3% of the option grants will vest twenty-four (24) months after the date of grant. | ||||||||||||||
On March 8, 2012, the Company’s Board of Directors increased the number of shares allocated to and authorized for use under the Plan from 1,000,000 shares to the maximum number of shares allowable pursuant to the terms of the Plan and granted 420,000 options under the Plan to independent directors, officers and key employees of the Company, of which included some new options and those re-granted after such options were forfeited by other former employees as a result of their resignations from the Company in accordance with the terms of their option agreements. All of the granted options vest as follows: | ||||||||||||||
50 % of the options granted vested six (6) months after the date of the grant; and | ||||||||||||||
50 % of the options granted vested twelve (12) months after the date of the grant. | ||||||||||||||
On November 23, 2012, our Board of Directors allocated to and authorized to re-grant 150,000 options to a director of the Company after such options were forfeited by other former employees as a result of their resignations from the Company in accordance with the terms of their option agreements. All of the granted options vest as follows: | ||||||||||||||
33 1/3% of the option grants vested one (1) month after the date of grant; | ||||||||||||||
33 1/3% of the option grants vested twelve (12) months after the date of grant; and | ||||||||||||||
33 1/3% of the option grants will vest twenty-four (24) months after the date of grant. | ||||||||||||||
The fair value of each option award was estimated on the date of grant using a Black-Scholes option pricing model that uses the assumptions noted in the following table. The model is based on the assumption that it is possible to set up a perfectly hedged position consisting of owning the shares of stock and selling a call option on the stock. Any movement in the price of the underlying stock will be offset by an opposite movement in the options value, resulting in no risk to the investor. This perfect hedge is riskless and, therefore, should yield the riskless rate of return. As the Black-Scholes option pricing model applies to stocks that do not pay dividends, we made an adjustment developed by Robert Merton to approximate the option value of a dividend-paying stock. Under this adjustment method, it is assumed that the Company’s stock will generate a constant dividend yield during the remaining life of the options. | ||||||||||||||
The following tables reflect assumptions used to determine the fair value of the option award: | ||||||||||||||
Options granted on November 8, 2010: | ||||||||||||||
12/8/2010 - | 11/8/2011 - | 11/8/2012 - | ||||||||||||
Exercisable Period | 11/8/20 | 11/8/20 | 11/8/20 | |||||||||||
Risk-free Rate (%) | 1.12 | 1.27 | 1.46 | |||||||||||
Expected Lives (years) | 5.04 | 5.5 | 6 | |||||||||||
Expected Volatility (%) | 46.1 | 44.49 | 43.04 | |||||||||||
Expected forfeitures per year (%) | 0.00-55.00 | 0.00-55.00 | 0.00-55.00 | |||||||||||
Dividend Yield (%) | 0 | 0 | 0 | |||||||||||
Options granted on December 15, 2010: | ||||||||||||||
1/15/2011 - | 12/15/2011 - | 12/15/2012 - | ||||||||||||
Exercisable Period | 12/15/20 | 12/15/20 | 12/15/20 | |||||||||||
Risk-free Rate (%) | 2.15 | 2.32 | 2.5 | |||||||||||
Expected Lives (years) | 5.04 | 5.5 | 6 | |||||||||||
Expected Volatility (%) | 46.15 | 44.52 | 43.09 | |||||||||||
Expected forfeitures per year (%) | 0 | 0 | 0 | |||||||||||
Dividend Yield (%) | 0 | 0 | 0 | |||||||||||
Options granted on March 8, 2012: | ||||||||||||||
09/08/2012 - | 03/08/2013 - | |||||||||||||
Exercisable Period | 3/8/20 | 3/8/20 | ||||||||||||
Risk-free Rate (%) | 0.94 | 1 | ||||||||||||
Expected Lives (years) | 5.25 | 5.49 | ||||||||||||
Expected Volatility (%) | 45.91 | 45.22 | ||||||||||||
Expected forfeitures per year (%) | 0 | 0 | ||||||||||||
Dividend Yield (%) | 0 | 0 | ||||||||||||
Options granted on November 23, 2012: | ||||||||||||||
Exercisable Period | 12/23/2012 - | 11/23/2013 - | 11/23/2014 - | |||||||||||
11/8/20 | 11/8/20 | 11/8/20 | ||||||||||||
Risk-free Rate (%) | 0.53 | 0.6 | 0.68 | |||||||||||
Expected Lives (years) | 4.02 | 4.48 | 4.98 | |||||||||||
Expected Volatility (%) | 37.43 | 46.48 | 46.45 | |||||||||||
Expected forfeitures per year (%) | 0 | 0 | 0 | |||||||||||
Dividend Yield (%) | 0 | 0 | 0 | |||||||||||
Fair value hierarchy of the above assumptions can be categorized as follows: | ||||||||||||||
-1 | There were no Level 1 inputs. | |||||||||||||
-2 | Level 2 inputs include: | |||||||||||||
⋅ | Risk-free rate- This rate is based on continuous compounding of publicly-available yields on U.S. Treasury securities with remaining terms to maturity consistent with the expected term of the options at the dates of grant. | |||||||||||||
⋅ | Expected volatility- We did not have a historical trading history sufficient to develop an internal volatility rate for use in the model. As a result, we have used a peer approach wherein the historical trading volatilities of certain companies with similar characteristics as ours and who had a sufficient trading history were used as an estimate of our volatility. In developing this model, no one company was weighted more heavily than another. | |||||||||||||
-3 | Level 3 inputs include: | |||||||||||||
⋅ | Expected lives- The expected lives of options granted were derived from the output of the option valuation model and represented the period of time that options granted are expected to be outstanding. | |||||||||||||
⋅ | Expected forfeitures per year- The expected forfeitures are estimated at the dates of grant and will be revised in subsequent periods pursuant to actual forfeitures, if significantly different from the previous estimates. | |||||||||||||
The estimates of fair value from the model are theoretical values of stock options and changes in the assumptions used in the model could result in materially different fair value estimates. The actual value of the stock options will depend on the market value of the Company’s common stock when the stock options are exercised. | ||||||||||||||
A summary of option activity under the Plan as of December 31, 2014, and changes during the year ended December 31, 2014 are presented below: | ||||||||||||||
Weighted- | ||||||||||||||
Weighted- | Average | |||||||||||||
Average | Remaining | Aggregate | ||||||||||||
Exercise | Contractual | Intrinsic | ||||||||||||
Options | Shares | Price | Term | Value | ||||||||||
Outstanding as of January 1, 2014 | 750,000 | $ | 3.14 | |||||||||||
Granted | - | $ | - | |||||||||||
Exercised | - | $ | - | |||||||||||
Forfeited | -80,000 | $ | 4.4 | |||||||||||
Outstanding as of December 31, 2014 | 670,000 | $ | 2.99 | 3.25 Years | $ | 537,202 | ||||||||
Exercisable as of December 31, 2014 | 670,000 | $ | 2.99 | 3.03 Years | $ | 537,202 | ||||||||
Vested and expected to vest (1) | 670,000 | $ | 2.99 | 3.25 Years | ||||||||||
(1) Includes vested shares and unvested shares after a forfeiture rate is applied. | ||||||||||||||
A summary of the status of the Company’s unvested shares as of December 31, 2014, and changes during the year ended December 31, 2014, is presented below: | ||||||||||||||
Weighted- | ||||||||||||||
Average | ||||||||||||||
Grant- | ||||||||||||||
Date Fair | ||||||||||||||
Unvested Shares | Shares | Value | ||||||||||||
Unvested as of January 1, 2014 | 50,000 | $ | 3,573 | |||||||||||
Granted | - | - | ||||||||||||
Vested | -50,000 | -3,573 | ||||||||||||
Forfeited | - | - | ||||||||||||
Unvested as of December 31, 2014 | - | $ | - | |||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Related Party Transactions Disclosure [Text Block] | NOTE 18. RELATED PARTY TRANSACTIONS | |||||||
Due to related parties | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Due to Mr. He Hao | $ | 13,958 | $ | 14,306 | ||||
Total | $ | 13,958 | $ | 14,306 | ||||
Mr. Hao He is the former shareholder of Huichun and Taizihu. | ||||||||
Guarantees | ||||||||
As of December 31, 2014, YuciJinmao Food Processing Factory, of which the legal representative is JunlianZheng, the wife of Junde Zhang, the previous Vice President of the Company, provided guarantees on short-term loans obtained by JinzhongYongcheng and JinzhongYuliang. | ||||||||
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting Disclosure [Text Block] | NOTE 19. SEGMENT REPORTING | ||||||||||||||||
The Company defined reportable segments according to ASC Topic 280. The segments, including corn division, grain division and bulk trading division, are identified primarily based on the structure of allocating resources and assessing performance of the group. | |||||||||||||||||
The corn division is in the business of purchasing corn from farmers, simple processing and distributing to agricultural product trading companies through wholesale. The business of the grain division is conducted by processing and distributing grains and other products. The business of the bulk trading division is conducted by bulk purchasing and the sale of raw grain. | |||||||||||||||||
For the year ended | Corn | Grain | Bulk | ||||||||||||||
Trading | |||||||||||||||||
December 31, 2014 | Division | Division | Division | Others | Total | ||||||||||||
Revenues from external customers | $ | 75,263,798 | $ | 33,399,849 | $ | 1,013,573 | $ | 109,677,220 | |||||||||
Loss on inventory valuation reserve | |||||||||||||||||
Intersegment revenues | - | - | - | - | - | ||||||||||||
Interest revenue | 3,298 | 2,498 | 275 | 192 | 6,263 | ||||||||||||
Interest expense | -424,795 | -357,939 | - | -826 | -783,560 | ||||||||||||
Net interest (expense) income | -421,497 | -355,441 | 275 | -635 | -777,297 | ||||||||||||
Depreciation and amortization | -576,927 | -1,376,640 | -5,235 | -215,246 | -2,174,048 | ||||||||||||
Noncontrolling interest | - | - | - | 1,039 | 1,039 | ||||||||||||
Segment net profit (loss) | -13,512,424 | -424,133 | -472,859 | -2,529,471 | -16,938,887 | ||||||||||||
For the year ended | Corn | Grain | Bulk Trading | ||||||||||||||
December 31, 2013 | Division | Division | Division | Others | Total | ||||||||||||
Revenues from external customers | $ | 142,560,749 | $ | 41,637,805 | $ | 62,151,550 | - | $ | 246,350,104 | ||||||||
Loss on inventory valuation reserve | -4,391,580 | -86,594 | - | - | -4,478,174 | ||||||||||||
Intersegment revenues | - | - | - | - | - | ||||||||||||
Interest revenue | 8,773 | 2,844 | 6,869 | 16,707 | 35,193 | ||||||||||||
Interest expense | -425,773 | -316,831 | -47,834 | - | -790,438 | ||||||||||||
Net interest (expense) income | -417,000 | -313,987 | -40,965 | 16,707 | -755,245 | ||||||||||||
Depreciation and amortization | -533,709 | -1,718,252 | -4,202 | -110,058 | -2,366,221 | ||||||||||||
Noncontrolling interest | - | - | - | 4,160 | 4,160 | ||||||||||||
Segment net profit (loss) | -11,316,324 | -2,614,032 | -64,083 | -12,349,498 | -26,343,937 | ||||||||||||
Since April 2014, our grain business includes direct exporting the organic bean-based products to countries including the U.S., Australia, Canada, Israel, and Denmark. The export businesses were denominated in US Dollar. All long-lived assets are located in China. The following tables set forth our three major customers in each segment: | |||||||||||||||||
For the Nine Months Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Corn Division : | |||||||||||||||||
Guangdong Wen‘s poultry Co., Ltd. | 5.4 | % | 0.8 | % | |||||||||||||
Chengdu Zhengda Co., Ltd. | 4.7 | % | 3.3 | % | |||||||||||||
ShuangliuZhengda Co., Ltd. | 4.4 | % | 2.3 | % | |||||||||||||
Top Three Customers as % of Total Gross Sales: | 14.5 | % | 6.5 | % | |||||||||||||
Grain Division : | |||||||||||||||||
Deyufang Innovation Food (Beijing) Co., Ltd. | 64.6 | % | 53.3 | % | |||||||||||||
Ethical Food SA | 12.9 | % | 0 | % | |||||||||||||
JingzhongShengde Grain Trading Co., Ltd. | 3 | % | 0 | % | |||||||||||||
Top Three Customers as % of Total Gross Sales | 80.5 | % | 53.3 | % | |||||||||||||
Bulk Trading Division : | |||||||||||||||||
Shanxi Helifeihua Trading Co., Ltd. | 27.8 | % | 12.7 | % | |||||||||||||
Shenzhen XinJiawang Agricultural By-products development Co. Ltd. | 14.6 | % | 4.2 | % | |||||||||||||
Yuchi Kaiwang Grain and Oil Wholesale Department | 10.9 | % | 4.5 | % | |||||||||||||
Top Three Customers as % of Total Gross Sales: | 53.4 | % | 21.4 | % | |||||||||||||
CONCENTRATION_OF_CREDIT_RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 20. CONCENTRATION OF CREDIT RISK |
As of December 31, 2014 and December 31, 2013, all of the Company’s cash balances in banks were maintained within the PRC where no rule or regulation currently in place to provide obligatory insurance for bank deposits in the event of bank failure. However, the Company has not experienced any losses in such accounts and believes it is not exposed to such risks on its cash balances in banks. | |
For the year ended December 31, 2014 and 2013, the sales generated from overseas countries were $4,308,033 and $0, respectively. Accounts receivable as of December 31, 2014 and December 31, 2013 that were due from customers located outside of China were $328,610 and $0, respectively. | |
For the year ended December 31, 2014, sales revenue generated from Deyufang Innovation Food (Beijing) Co., Ltd. accounted for 19.7% of the Company's consolidated gross revenue, while there was no single customer that accounted for greater than 10% of the Company's consolidated gross revenue for the year ended December 31, 2013. | |
As of December 31, 2014 the account receivable due from Deyufang Innovation Food (Beijing) Co., Ltd. accounted for 12.4% of the Company’s consolidated accounts receivable, while no single customer accounted for greater than 10% of the Company’s consolidated accounts receivable as of December 31, 2013. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | NOTE 21. COMMITMENTS AND CONTINGENCIES | ||||
Lease Commitments | |||||
The Company leases railroad lines, warehouses and offices under operating leases. Future minimum lease payments under operating leases with initial or remaining terms of one year or more are as follows: | |||||
As of December 31, | Operating Leases | ||||
2015 | $ | 211,698 | |||
2016 | 187,592 | ||||
2017 | 169,552 | ||||
2018 | 169,552 | ||||
2019 | 169,552 | ||||
Thereafter | 902,100 | ||||
$ | 1,810,046 | ||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 22. SUBSEQUENT EVENTS |
Management has considered all events occurring through the date which the financial statements were available to be issued. All subsequent events requiring recognition as of December 31, 2014 have been incorporated into the accompanying consolidated and combined financial statements, and those requiring disclosure have been fully disclosed in accordance with FASB ASC Topic 855, “Subsequent Events”. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Basis Of Accounting, Policy [Policy Text Block] | Basis of presentation | ||||
The unaudited consolidated financial statements include the financial statements of Deyu Agriculture Corp. and its subsidiaries. All significant intercompany account balances and transactions have been eliminated in consolidation. Results of operations of companies purchased are included from the dates of acquisition. | |||||
These accompanying consolidated financial statements have been prepared in accordance with US GAAP. The Company’s functional currency is the Chinese Yuan, or Renminbi (“RMB”); however, the accompanying consolidated financial statements have been translated and presented in United States Dollars (“USD”). | |||||
On April 27, 2010, as a result of the consummation of the Share Exchange, we changed our fiscal year end from May 31 to December 31 to conform to the fiscal year end of City Zone. | |||||
Use Of Estimates, Policy [Policy Text Block] | Use of estimates | ||||
The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes its estimates based on historical experience and various other assumptions and information that are available and believed to be reasonable at the time the estimates are made. Therefore, actual results could differ from those estimates under different assumptions and conditions. | |||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents | ||||
Cash and cash equivalents consist of cash on hand, cash in banks and all highly liquid investments with original maturities of three months or less. | |||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts receivable | ||||
Accounts receivable are recorded at net realizable value consisting of the carrying amount less allowance for doubtful accounts, as needed. We assess the collectability of accounts receivable based primarily upon the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends, and changes in customer payment patterns to evaluate the adequacy of these reserves. While management uses the best information available upon which to base estimates, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used for the purposes of analysis. The Company wrote off $834,917 of allowance for doubtful accounts for the period ended September 30, 2014 as a result of incentives offered to customers for accelerating collections of accounts receivable. The balance of allowance for doubtful accounts As of December 31, 2014 and December 31, 2013 was $1,337,364 and $984,717 respectively. | |||||
Inventory, Policy [Policy Text Block] | Inventories | ||||
The Company's inventories are stated at lower of cost or market. Cost is determined on a moving-average basis. Costs of inventories include purchase and related costs incurred in delivering products to their present location and condition. Market value is determined by reference to selling prices after the balance sheet date or to management’s estimates based on prevailing market conditions. Management periodically evaluates the composition of its inventories at least ddquarterly to identify slow-moving and obsolete inventories to determine if a valuation allowance is required. The balance of reserve for inventory valuation as of December 31, 2014 and December 31, 2013 was $140,582 and $4,603,929, respectively. | |||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property, plant, and equipment | ||||
Property, plant, and equipment are stated at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to earnings as incurred; in addition, renewals and betterments are capitalized. When property, plant, and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. | |||||
Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: | |||||
Useful | |||||
Life | |||||
(in years) | |||||
Automobiles | 5 | ||||
Buildings | 30-Oct | ||||
Office equipment | 5 | ||||
Machinery and equipment | 10-May | ||||
Furniture & fixtures | 5 | ||||
Construction In Progress [Policy Text Block] | Construction-in-progress | ||||
Construction-in-progress consists of amounts expended for the construction of a new factory park, and the cost of the portion of the land use right that the new factory park occupied. Construction-in-progress is not depreciated until such time as the assets are completed and put into service. Once factory park construction is completed, the cost accumulated in construction-in-progress will be transferred to property, plant, and equipment. | |||||
Impairment Or Disposal Of Long-Lived Assets, Policy [Policy Text Block] | Long-lived assets | ||||
The Company applies the provisions of FASB ASC Topic 360 (ASC 360), "Property, Plant, and Equipment" which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The Company periodically evaluates the carrying value of long-lived assets to be held and used in accordance with ASC 360, at least on an annual basis. ASC 360 requires the impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal. As of December 31, 2014 and December 31, 2013, the balance of impairment of construction-in-progress was $772,091 and $773,874, respectively. | |||||
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible assets | ||||
For intangible assets subject to amortization, an impairment loss is recognized if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the assets. As of December 31, 2014 and December 31, 2013, the balance of impairment of intangible assets was $6,557,755 and $6,572,902, respectively. | |||||
Fair Value Of Financial Instruments, Policy [Policy Text Block] | Fair value measurements | ||||
FASB ASC 820, “Fair Value Measurements” (formerly SFAS No. 157) defines fair value for certain financial and nonfinancial assets and liabilities that are recorded at fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. It requires that an entity measure its financial instruments to base fair value on exit price, maximize the use of observable units and minimize the use of unobservable inputs to determine the exit price. It establishes a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy increases the consistency and comparability of fair value measurements and related disclosures by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the assets or liabilities based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy prioritizes the inputs into three broad levels based on the reliability of the inputs as follows: | |||||
· | Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available. | ||||
· | Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||
· | Level 3 – Valuations based on inputs that are unobservable and not corroborated by market data. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. | ||||
This guidance applies to other accounting pronouncements that require or permit fair value measurements. On February 12, 2008, the FASB finalized FASB Staff Position (FSP) No. 157-2, Effective Date of FASB Statement No. 157 (ASC 820). This Staff Position delays the effective date of SFAS No. 157 (ASC 820) for nonfinancial assets and liabilities to fiscal years beginning after November 15, 2008 and interim periods within those fiscal years, except for those items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). The adoption of SFAS No. 157 (ASC 820) had no effect on the Company's financial position or results of operations for the year 2014 | |||||
We also analyze all financial instruments with features of both liabilities and equity under ASC 480-10 (formerly SFAS 150, “Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity”) and ASC 815-40 (formerly EITF 00-19, “Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock”). We have determined ASC 480-10 (formerly SFAS 150) and ASC 815-40 (formerly EITF 00-19) had no material effect on our financial position or results of operations for the year 2014 | |||||
Revenue Recognition, Policy [Policy Text Block] | Revenue recognition | ||||
The Company’s revenue recognition policies are in compliance with the SEC Staff Accounting Bulletin No. 104 (“SAB 104”). The Company recognizes product revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) our price to the customer is fixed or determinable and (iv) collection of the resulting accounts receivable is reasonably assured. The Company recognizes revenue for product sales upon transfer of title to the customer. Customer purchase orders and/or contracts are generally used to determine the existence of an arrangement. Shipping documents and the completion of any customer acceptance requirements, when applicable, are used to verify product delivery or that services have been rendered. The Company assesses whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. | |||||
The Company’s revenue is recognized net of value-added tax (VAT), reductions to revenue for estimated product returns, and sales discounts based on volume achieved in the same period that the related revenue is recorded. The estimates are based on historical sales returns, analysis of credit memo data and other factors known at the time. The sales discounts for the year ended December 31, 2014 and 2013 were not material. | |||||
We offer a right of exchange on our grain products sold through our relationships with grocery store networks. The consumer who purchases the product may exchange it for the same kind and quantity of product originally purchased. In accordance with FASB ASC 605-15-25-1 and 605-15-15-2, these are not considered returns for revenue recognition purposes. The returns of our products for the year ended December 31, 2014 and 2013 were not material. | |||||
Advertising Costs, Policy [Policy Text Block] | Advertising costs | ||||
The Company expenses the cost of advertising as incurred or, as appropriate, the first time the advertising takes place. Advertising costs for the year ended December 31, 2014 and 2013 were $423,498 and $298,040, respectively. | |||||
Research and Development Expense, Policy [Policy Text Block] | Research and development | ||||
The Company expenses its research and development costs as incurred. Research and development expenses for the year ended December 31, 2014 and 2013 were not material. | |||||
Compensation Related Costs, Policy [Policy Text Block] | Stock-based compensation | ||||
In December 2004, the Financial Accounting Standard Board, or the FASB, issued the Statement of Financial Accounting Standards, or SFAS, No. 123(R), “Share-Based Payment”, which replaces SFAS No. 123 and supersedes APB Opinion No. 25. SFAS No. 123(R) is now included in the FASB’s ASC Topic 718, “Compensation – Stock Compensation.” Under SFAS No. 123(R), companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees or independent contractors are required to provide services. Share-based compensation arrangements include stock options and warrants, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. In March 2005, the SEC issued Staff Accounting Bulletin No. 107, or SAB 107, which expresses views of the staff regarding the interaction between SFAS No. 123(R) and certain SEC rules and regulations and provides the staff’s views regarding the valuation of share-based payment arrangements for public companies. SFAS No. 123(R) permits public companies to adopt its requirements using one of two methods. On April 14, 2005, the SEC adopted a new rule amending the compliance dates for SFAS No. 123(R). Companies may elect to apply this statement either prospectively, or on a modified version of retrospective application under which financial statements for prior periods are adjusted on a basis consistent with the pro forma disclosures required for those periods under SFAS No. 123. | |||||
The Company has fully adopted the provisions of FASB ASC 718 and related interpretations as provided by SAB 107. As such, compensation cost is measured on the date of grant as the fair value of the share-based payments. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. | |||||
Income Tax, Policy [Policy Text Block] | Income taxes | ||||
The Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes.” ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||
Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no material effect on the Company’s consolidated financial statements for the year 2014 | |||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency translation and comprehensive income | ||||
U.S. GAAP requires that recognized revenue, expenses, gains, and losses be included in net income. Certain statements, however, require entities to report specific changes in assets and liabilities, such as gain or loss on foreign currency translation, as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income. The functional currency of the Company is RMB. The unit of RMB is in Yuan. Translation gains are classified as an item of other comprehensive income in the stockholders’ equity section of the consolidated balance sheet. | |||||
Statement Of Cash Flows, Supplemental Disclosures Policy [Policy Text Block] | Statement of cash flows | ||||
In accordance with FASB ASC Topic 230, “Statement of Cash Flows,” cash flows from the Company’s operations is calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the consolidated statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. | |||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent pronouncements | ||||
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income.” This ASU does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, this guidance requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. For public entities, the guidance is effective prospectively for reporting periods beginning after December 15, 2012. For nonpublic entities, the guidance is effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For public entities, the guidance is effective prospectively for reporting periods beginning after December 15, 2013. For nonpublic entities, the guidance is effective prospectively for reporting periods beginning after December 15, 2014. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||
In December 2013, the FASB issued ASU 2013-12, “Definition of a Public Business Entity”. The Board has decided that it should proactively determine which entities would be within the scope of the Private Company Decision-Making Framework: A Guide for Evaluating Financial Accounting and Reporting for Private Companies (Guide). This will aim to minimize the inconsistency and complexity of having multiple definitions of, or a diversity in practice as to what constitutes, a nonpublic entity and public entity within U.S. generally accepted accounting principles (GAAP) on a going-forward basis. This Update addresses those issues by defining public business entity. The Accounting Standards Codification includes multiple definitions of the terms nonpublic entity and public entity. The amendment in this Update improves U.S. GAAP by providing a single definition of public business entity for use in future financial accounting and reporting guidance. The amendment does not affect existing requirements. There is no actual effective date for the amendment in this Update. However, the term public business entity will be used in Accounting Standards Updates which are the first Updates that will use the term public business entity. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||
In May 2014, the FASB issued ASU 2014-9, “Revenue from Contracts with Customers”. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. For a public entity, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40)”. In connection with preparing financial statements for each annual and interim reporting period, an entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||
NATURE_OF_BUSINESS_AND_BASIS_O1
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |||||||||||||
Consolidation Entities Nature Of Business [Table Text Block] | Details of our subsidiaries subject to consolidation are as follows: | ||||||||||||
Domicile and | Percentage | ||||||||||||
Date of | Registered | of | |||||||||||
Name of Subsidiary | Incorporation | Capital | Ownership | Principal Activities | |||||||||
City Zone Holdings Limited ("City Zone") | British Virgin Islands, July 27, 2009 | $ | 20,283,581 | 100 | % | Holding company of Most Smart | |||||||
Most Smart International Limited ("Most Smart") | Hong Kong, March 11, 2009 | $ | 1 | 100 | % | Holding company of Shenzhen Redsun | |||||||
Redsun Technology (Shenzhen) Co., Ltd. ("Shenzhen Redsun") | The PRC, August 20, 2009 | $ | 30,000 | 100 | % | Holding company of Shenzhen JiRuHai, Taizihu and Huichun | |||||||
Shenzhen JiRuHai Technology Co., Ltd.("Shenzhen JiRuHai") | The PRC, August 20, 2009 | $ | 14,638 | 100 | % | Holding company of Beijing Detian Yu | |||||||
Detian Yu Biotechnology (Beijing) Co., Ltd. ("Detian Yu") | The PRC, November 30, 2006 | $ | 7,637,723 | 100 | % | Wholesale distribution of simple-processed and deep-processed packaged food products and staple food. Holding company of the following first five entities. | |||||||
JinzhongDeyu Agriculture Trading Co., Ltd. ("JinzhongDeyu") | The PRC, April 22, 2004 | $ | 1,492,622 | 100 | % | Organic grains preliminary processing and wholesale distribution. | |||||||
JinzhongYongcheng Agriculture Trading Co., Ltd. ("JinzhongYongcheng") | The PRC, May 30, 2006 | $ | 1,025,787 | 100 | % | Corns preliminary processing and wholesale | |||||||
JinzhongYuliang Agriculture Trading Co., Ltd. ("JinzhongYuliang") | The PRC, March 17, 2008 | $ | 13,963,243 | 100 | % | Corns preliminary processing and wholesale distribution. | |||||||
Tianjin Guandu Food Co., Ltd. ("Tianjin Guandu") * | The PRC, June 21, 2011 | $ | 1,544,497 | 100 | % | Wholesale distribution of simple-processed and deep-processed packaged food products and staple food. | |||||||
HebeiYugu Grain Co., Ltd. ("HebeiYugu") | The PRC, July 25, 2011 | $ | 1,563,824 | 70 | % | Wholesale distribution of grain products and operating or acting as an agent of import & export business for grain products. | |||||||
Shanxi Taizihu Food Co., Ltd. (“Taizihu”) | The PRC, July 27, 2003 | $ | 1,208,233 | 100 | % | Producing and selling fruit beverages and soybean products. | |||||||
Shanxi HuiChun Bean Products Co., Ltd. (“Huichun”) | The PRC, September 2, 2007 | $ | 2,636,192 | 100 | % | Producing and selling fruit beverages and soybean products. | |||||||
Jilin Jinglong Agriculture Development Limited (“Jinglong”) | The PRC, October 10, 2012 | $ | 3,152,138 | 99 | % | Procurement, storage and sales of corn and grain. | |||||||
* | Tianjin Guandu completed the deregistration procedure with the Tianjin Industrial and Commercial Bureau on May 28, 2014. | ||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Property Plant and Equipment Estimated Useful Lives [Table Text Block] | Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: | ||||
Useful | |||||
Life | |||||
(in years) | |||||
Automobiles | 5 | ||||
Buildings | 30-Oct | ||||
Office equipment | 5 | ||||
Machinery and equipment | 10-May | ||||
Furniture & fixtures | 5 | ||||
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Schedule Of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable consisted of the following: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accounts receivable | $ | 22,873,889 | $ | 33,311,614 | ||||
Less: Allowance for doubtful accounts | -1,337,364 | -984,717 | ||||||
Accounts receivable, net | $ | 21,536,525 | $ | 32,326,897 | ||||
INVENTORY_Tables
INVENTORY (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule Of Inventory, Current [Table Text Block] | Inventory consisted of the following: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 751,095 | $ | 1,020,486 | ||||
Work in process | - | 49,717 | ||||||
Finished goods | 8,125,176 | 17,752,203 | ||||||
Supplies | 1,080,242 | 1,099,747 | ||||||
Reserve for inventory valuation | -140,582 | -4,603,929 | ||||||
Total Inventory | $ | 9,815,931 | $ | 15,318,224 | ||||
PREPAID_EXPENSES_Tables
PREPAID EXPENSES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Prepaid expenses consisted of the following: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Deductible value-added taxes (VAT) | $ | 637,612 | $ | 356,876 | ||||
Prepaid rent | 290,190 | 368,827 | ||||||
Prepaid other expenses | 11,627 | 435,599 | ||||||
Total | $ | 939,429 | $ | 1,161,302 | ||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | Property, plant, and equipment consisted of the following: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Automobiles | $ | 1,021,089 | $ | 1,046,542 | ||||
Buildings | 16,587,178 | 17,480,188 | ||||||
Office equipment | 986,892 | 1,012,007 | ||||||
Machinery and equipment | 8,869,381 | 8,386,357 | ||||||
Furniture and fixtures | 111,615 | 114,398 | ||||||
Total cost | 27,576,155 | 28,039,492 | ||||||
Less: Accumulated depreciation | -10,556,028 | -8,788,441 | ||||||
Property, plant, and equipment, net | $ | 17,020,127 | $ | 19,251,051 | ||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Schedule Of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets consisted of the following: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Land use rights | $ | 14,341,429 | $ | 14,698,916 | ||||
Software-ERP System and B2C platform | 740,945 | 1,081,531 | ||||||
Less: Accumulated amortization | -1,110,323 | -1,277,565 | ||||||
Impairment loss | -6,512,731 | -6,675,073 | ||||||
Total | $ | 7,459,320 | $ | 7,827,809 | ||||
SHORTTERM_LOANS_Tables
SHORT-TERM LOANS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule Of Short-Term Debt [Table Text Block] | Short-term loans consisted of the following: | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Bank loan payable to Agriculture Development Bank of China, bearing interest at the prime rate based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of December 31, 2014 and December 31, 2013 were 6.00% and the pass-due interest rate was 7.8%. The term of the loan started from August 14, 2012 with maturity date on August 13, 2013. The loan was obtained by Taizihu and pledged by its buildings and land use right. On July 31, 2013 the loan was repaid for $66,075 (or RMB400,000). As of December 31, 2014, the loan balance was $2,353,093 (or RMB14,600,000). As of the date of this filing, the Company has been in negotiation with the lender on renewal of the loan. The Company is not currently able to predict the probability of the success on the renewal and will repay the loan immediately if the loan cannot be renewed. | $ | 2,353,093 | $ | 2,411,748 | |||||
Bank loan payable to Agriculture Development Bank of China, bearing interest at the prime rate, based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of December 31, 2014 and December 31, 2013 were 6.0% and the pass-due interest rate was 7.8%. The term of the loan started from September 18, 2012 with maturity date on September 17, 2013. The loan was obtained by Taizihu and pledged by its buildings and land use right. As of the date of this filing, the Company has been in negotiation with the lender on renewal of the loan. The Company is not currently able to predict the probability of the success on the renewal and will repay the loan immediately if the loan cannot be renewed. | 1,450,537 | 1,486,694 | |||||||
Bank loan payable to Jinzhong City Yuci District Rural Credit Union Co., Ltd., bearing interest at a fixed rate of prime rate plus 145% of prime rate, of which prime rate was based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of December 31, 2014 were 14.688%. The renewed term of the loan started from September 12, 2014 with maturity date on September 11, 2015. The loan was obtained by JinzhongYongcheng and guaranteed by YuciJinmao Food Processing Factory, a related party, for a period of two years starting from September 17, 2015. | 1,369,951 | - | |||||||
Bank loan payable to Jinzhong City Yuci District Rural Credit Union Co., Ltd., bearing interest at a fixed rate of prime rate plus 145% of prime rate, of which prime rate was based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of December 31, 2014 were 14.688%. The renewed term of the loan started from September 12, 2014 with maturity date on September 11, 2015. The loan was obtained by JinzhongYuliang and guaranteed by YuciJinmao Food Processing Factory, a related party, for a period of two years starting from September 17, 2015. | 1,369,951 | - | |||||||
Bank loan payable to Agriculture Development Bank of China, bearing interest at the prime rate, based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rate as of December 31, 2014 was 6.0% and the pass-due interest rate was 7.8%. The term of the loan started from January 4, 2013 with maturity date on January 3, 2014. The loan was obtained by Taizihu and pledged by its buildings and land use right. As of the date of this filing, the Company has been in negotiation with the lender on renewal of the loan. The Company is not currently able to predict the probability of the success on the renewal and will repay the loan immediately if the loan cannot be renewed. | 725,269 | 743,347 | |||||||
Bank loan payable to Bank of Communications Gongzhufensubbranch, bearing interest at a fix rate of prime rate, of which prime rate was based on one-year loan interest rate released by The People's Bank of China. The term of the loan started from December 15, 2013 with maturity date on December 16, 2014. The loan was obtained by Detian Yu. The loan was paid off on December 25, 2014. | - | 14,867 | |||||||
Bank loan payable to Jinzhong City Yuci District Rural Credit Union Co., Ltd., bearing interest at a fixed rate of prime rate plus 130% of prime rate, of which prime rate was based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of June 30, 2014 were 15.084%. The term of the loan started from September 6, 2013 with maturity date on August 22, 2014. The loan was obtained by JinzhongYongcheng and guaranteed by YuciJinmao Food Processing Factory, a related party, for a period of two years starting from August 23, 2014. The loan was paid off on September 11, 2014. | - | 1,404,100 | |||||||
Bank loan payable to Jinzhong City Yuci District Rural Credit Union Co., Ltd., bearing interest at a fixed rate of prime rate plus 130% of prime rate, of which prime rate was based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of June 30, 2014 were 15.084%. The term of the loan started from September 6, 2013 with maturity date on August 22, 2014. The loan was obtained by JinzhongYongcheng and guaranteed by YuciJinmao Food Processing Factory, a related party, for a period of two years starting from August 23, 2014. The loan was paid off on September 11, 2014. | - | 1,404,100 | |||||||
Total | $ | 7,268,801 | $ | 7,464,856 | |||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule Of Accrued Liabilities [Table Text Block] | Accrued expenses consisted of the following: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued VAT and other taxes | $ | 422,049 | $ | 261,714 | ||||
Accrued payroll | 179,117 | 167,046 | ||||||
Others | 805,353 | 574,125 | ||||||
Total | $ | 1,406,519 | $ | 1,002,885 | ||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule Of Components Of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes on income consisted of the following for the year ended December 31, 2014 and 2013: | |||||||
For The Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Current income tax expense (benefit) | ||||||||
U.S. | $ | - | $ | - | ||||
PRC | 501,262 | 604,450 | ||||||
Total current expense (benefit) | $ | 501,262 | $ | 604,450 | ||||
Deferred income tax expense (benefit) | ||||||||
U.S. | $ | - | $ | - | ||||
PRC | - | - | ||||||
Income tax expense (benefit) | $ | 501,262 | $ | 604,450 | ||||
Schedule Of Effective Income Tax Rate Reconciliation [Table Text Block] | The following is a reconciliation of the statutory tax rate to the effective tax rate for the year ended December 31, 2014 and 2013: | |||||||
For The Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Expected U.S. income tax expense | 34 | % | 34 | % | ||||
Increase (decrease) in taxes resulting from: | ||||||||
Tax-exempt income | -33.9 | % | -28.1 | % | ||||
Foreign tax differential | 0.3 | % | -1.8 | % | ||||
Change in valuation allowance | 3.4 | % | -8.5 | % | ||||
Intercompany elimination | 0 | % | 2 | % | ||||
Other | -6.9 | % | 0.1 | % | ||||
Income tax expense | -3 | % | -2.3 | % | ||||
Schedule Of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of the Company’s net deferred tax assets as of December 31, 2014 and December 31, 2013 are presented in the following table: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Deferred tax assets | ||||||||
Net operating loss carryforwards (NOL) | $ | 5,696,456 | $ | 5,090,602 | ||||
Share-based compensation | 407,099 | 435,844 | ||||||
Others | 438,122 | 440,331 | ||||||
Total | 6,541,677 | 5,966,777 | ||||||
Less: Valuation allowance | -6,541,677 | -5,966,777 | ||||||
Total deferred tax assets, net | $ | - | $ | - | ||||
NET_INCOME_LOSS_PER_SHARE_Tabl
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Reconciliation of the basic and diluted net income (loss) per share was as follows: | ||||||||||
Amounts | Shares | Per Share | |||||||||
(Numerator) | (Denominator) | Amount | |||||||||
For the Year ended December 31, 2014: | |||||||||||
Net income (loss) attributable to common stockholders - basic | $ | -17,356,472 | 10,974,596 | $ | -1.58 | ||||||
Preferred dividends applicable to convertible preferred stocks | - | - | |||||||||
Net income (loss) attributable to common stockholders - diluted | $ | -17,356,472 | 10,974,596 | $ | -1.58 | ||||||
For the Year ended December 31, 2013: | |||||||||||
Net income (loss) attributable to common stockholders - basic | $ | -26,818,546 | 10,625,170 | $ | -2.52 | ||||||
Preferred dividends applicable to convertible preferred stocks | |||||||||||
Net income (loss) attributable to common stockholders - diluted | $ | -26,818,546 | 10,625,170 | $ | -2.52 | ||||||
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
Schedule Of Components Of Financing Cost Allocation [Table Text Block] | The following table summarizes the components of the allocation: | ||||||||||||||||
Paid-in | |||||||||||||||||
Series A | Capital | ||||||||||||||||
Preferred | Warrants | Total | |||||||||||||||
Fair values of financial instruments | $ | 10,248,092 | $ | 1,039,978 | $ | 11,288,070 | |||||||||||
Gross proceeds | $ | 9,810,227 | $ | 995,523 | $ | 10,805,750 | |||||||||||
Direct financing costs | -1,581,550 | -161,443 | -1,742,993 | ||||||||||||||
Fair value of placement agent warrants | - | 187,366 | 187,366 | ||||||||||||||
$ | 8,228,677 | $ | 1,021,446 | $ | 9,250,123 | ||||||||||||
Schedule Of Assumptions Used To Determine Fair Value Of Series Preferred Stock [Table Text Block] | The following tables reflect assumptions used to determine the fair value of the Series A Preferred: | ||||||||||||||||
Series A | Series A | ||||||||||||||||
Fair Value | Preferred | Preferred | |||||||||||||||
Hierarchy | April 27, | May 10, | |||||||||||||||
Level | 2010 | 2010 | |||||||||||||||
Indexed common shares | 1,866,174 | 589,689 | |||||||||||||||
Components of fair value: | |||||||||||||||||
Common stock equivalent value | $ | 6,631,403 | $ | 2,083,094 | |||||||||||||
Dividend feature | 659,821 | 209,439 | |||||||||||||||
$ | 7,291,224 | $ | 2,292,533 | ||||||||||||||
Significant assumptions: | |||||||||||||||||
Common stock price | 3 | 3.55 | 3.53 | ||||||||||||||
Horizon for dividend cash flow projection | 3 | 2 | 2 | ||||||||||||||
Weighted average cost of capital ("WACC") | 3 | 15.91 | % | 15.55 | % | ||||||||||||
Schedule Of Assumptions Used To Determine Fair Value Of Warrants [Table Text Block] | The following tables reflect assumptions used to determine the fair value of the Series A Warrants: | ||||||||||||||||
Fair | April 27, 2010 | May 10, 2010 | |||||||||||||||
Value | |||||||||||||||||
Hierarchy | Investor | Agent | Investor | Agent | |||||||||||||
Level | warrants | warrants | warrants | Warrants | |||||||||||||
Indexed shares | 746,479 | 130,632 | 235,883 | 41,279 | |||||||||||||
Exercise price | 5.06 | 4.84 | 5.06 | 4.84 | |||||||||||||
Significant assumptions: | |||||||||||||||||
Stock price | 3 | 3.55 | 3.55 | 3.53 | 3.53 | ||||||||||||
Remaining term | 3 | 5 years | 5 years | 5 years | 5 years | ||||||||||||
Risk free rate | 2 | 2.39 | % | 2.39 | % | 2.24 | % | 2.24 | % | ||||||||
Expected volatility | 2 | 45.25 | % | 45.25 | % | 45.47 | % | 45.47 | % | ||||||||
Schedule Of Warrants Activity [Table Text Block] | The following is a summary of the status and activity of warrants outstanding as of December 31, 2014: | ||||||||||||||||
Outstanding Warrants | |||||||||||||||||
Exercise Price | Number of Warrants | Average Remaining Contractual Life | |||||||||||||||
$ | 5.06 | 982,362 | 0.32 years | ||||||||||||||
$ | 4.84 | 171,911 | 0.32 years | ||||||||||||||
Total | 1,154,273 | ||||||||||||||||
Number of Warrants | |||||||||||||||||
Outstanding as of January 1, 2014 | 1,154,273 | ||||||||||||||||
Granted | - | ||||||||||||||||
Forfeited | - | ||||||||||||||||
Exercised | - | ||||||||||||||||
Outstanding as of December 31, 2014 | 1,154,273 | ||||||||||||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ||||||||||||||
Schedule Of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following tables reflect assumptions used to determine the fair value of the option award: | |||||||||||||
Options granted on November 8, 2010: | ||||||||||||||
12/8/2010 - | 11/8/2011 - | 11/8/2012 - | ||||||||||||
Exercisable Period | 11/8/20 | 11/8/20 | 11/8/20 | |||||||||||
Risk-free Rate (%) | 1.12 | 1.27 | 1.46 | |||||||||||
Expected Lives (years) | 5.04 | 5.5 | 6 | |||||||||||
Expected Volatility (%) | 46.1 | 44.49 | 43.04 | |||||||||||
Expected forfeitures per year (%) | 0.00-55.00 | 0.00-55.00 | 0.00-55.00 | |||||||||||
Dividend Yield (%) | 0 | 0 | 0 | |||||||||||
Options granted on December 15, 2010: | ||||||||||||||
1/15/2011 - | 12/15/2011 - | 12/15/2012 - | ||||||||||||
Exercisable Period | 12/15/20 | 12/15/20 | 12/15/20 | |||||||||||
Risk-free Rate (%) | 2.15 | 2.32 | 2.5 | |||||||||||
Expected Lives (years) | 5.04 | 5.5 | 6 | |||||||||||
Expected Volatility (%) | 46.15 | 44.52 | 43.09 | |||||||||||
Expected forfeitures per year (%) | 0 | 0 | 0 | |||||||||||
Dividend Yield (%) | 0 | 0 | 0 | |||||||||||
Options granted on March 8, 2012: | ||||||||||||||
09/08/2012 - | 03/08/2013 - | |||||||||||||
Exercisable Period | 3/8/20 | 3/8/20 | ||||||||||||
Risk-free Rate (%) | 0.94 | 1 | ||||||||||||
Expected Lives (years) | 5.25 | 5.49 | ||||||||||||
Expected Volatility (%) | 45.91 | 45.22 | ||||||||||||
Expected forfeitures per year (%) | 0 | 0 | ||||||||||||
Dividend Yield (%) | 0 | 0 | ||||||||||||
Options granted on November 23, 2012: | ||||||||||||||
Exercisable Period | 12/23/2012 - | 11/23/2013 - | 11/23/2014 - | |||||||||||
11/8/20 | 11/8/20 | 11/8/20 | ||||||||||||
Risk-free Rate (%) | 0.53 | 0.6 | 0.68 | |||||||||||
Expected Lives (years) | 4.02 | 4.48 | 4.98 | |||||||||||
Expected Volatility (%) | 37.43 | 46.48 | 46.45 | |||||||||||
Expected forfeitures per year (%) | 0 | 0 | 0 | |||||||||||
Dividend Yield (%) | 0 | 0 | 0 | |||||||||||
Schedule Of Share-Based Compensation, Activity [Table Text Block] | A summary of option activity under the Plan as of December 31, 2014, and changes during the year ended December 31, 2014 are presented below: | |||||||||||||
Weighted- | ||||||||||||||
Weighted- | Average | |||||||||||||
Average | Remaining | Aggregate | ||||||||||||
Exercise | Contractual | Intrinsic | ||||||||||||
Options | Shares | Price | Term | Value | ||||||||||
Outstanding as of January 1, 2014 | 750,000 | $ | 3.14 | |||||||||||
Granted | - | $ | - | |||||||||||
Exercised | - | $ | - | |||||||||||
Forfeited | -80,000 | $ | 4.4 | |||||||||||
Outstanding as of December 31, 2014 | 670,000 | $ | 2.99 | 3.25 Years | $ | 537,202 | ||||||||
Exercisable as of December 31, 2014 | 670,000 | $ | 2.99 | 3.03 Years | $ | 537,202 | ||||||||
Vested and expected to vest (1) | 670,000 | $ | 2.99 | 3.25 Years | ||||||||||
(1) Includes vested shares and unvested shares after a forfeiture rate is applied. | ||||||||||||||
Schedule Of Nonvested Share Activity [Table Text Block] | A summary of the status of the Company’s unvested shares as of December 31, 2014, and changes during the year ended December 31, 2014, is presented below: | |||||||||||||
Weighted- | ||||||||||||||
Average | ||||||||||||||
Grant- | ||||||||||||||
Date Fair | ||||||||||||||
Unvested Shares | Shares | Value | ||||||||||||
Unvested as of January 1, 2014 | 50,000 | $ | 3,573 | |||||||||||
Granted | - | - | ||||||||||||
Vested | -50,000 | -3,573 | ||||||||||||
Forfeited | - | - | ||||||||||||
Unvested as of December 31, 2014 | - | $ | - | |||||||||||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Schedule Of Due To Related Parties [Table Text Block] | Due to related parties | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Due to Mr. He Hao | $ | 13,958 | $ | 14,306 | ||||
Total | $ | 13,958 | $ | 14,306 | ||||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Schedule Of Segment Reporting Information, By Segment [Table Text Block] | For the year ended | Corn | Grain | Bulk | |||||||||||||
Trading | |||||||||||||||||
December 31, 2014 | Division | Division | Division | Others | Total | ||||||||||||
Revenues from external customers | $ | 75,263,798 | $ | 33,399,849 | $ | 1,013,573 | $ | 109,677,220 | |||||||||
Loss on inventory valuation reserve | |||||||||||||||||
Intersegment revenues | - | - | - | - | - | ||||||||||||
Interest revenue | 3,298 | 2,498 | 275 | 192 | 6,263 | ||||||||||||
Interest expense | -424,795 | -357,939 | - | -826 | -783,560 | ||||||||||||
Net interest (expense) income | -421,497 | -355,441 | 275 | -635 | -777,297 | ||||||||||||
Depreciation and amortization | -576,927 | -1,376,640 | -5,235 | -215,246 | -2,174,048 | ||||||||||||
Noncontrolling interest | - | - | - | 1,039 | 1,039 | ||||||||||||
Segment net profit (loss) | -13,512,424 | -424,133 | -472,859 | -2,529,471 | -16,938,887 | ||||||||||||
For the year ended | Corn | Grain | Bulk Trading | ||||||||||||||
December 31, 2013 | Division | Division | Division | Others | Total | ||||||||||||
Revenues from external customers | $ | 142,560,749 | $ | 41,637,805 | $ | 62,151,550 | - | $ | 246,350,104 | ||||||||
Loss on inventory valuation reserve | -4,391,580 | -86,594 | - | - | -4,478,174 | ||||||||||||
Intersegment revenues | - | - | - | - | - | ||||||||||||
Interest revenue | 8,773 | 2,844 | 6,869 | 16,707 | 35,193 | ||||||||||||
Interest expense | -425,773 | -316,831 | -47,834 | - | -790,438 | ||||||||||||
Net interest (expense) income | -417,000 | -313,987 | -40,965 | 16,707 | -755,245 | ||||||||||||
Depreciation and amortization | -533,709 | -1,718,252 | -4,202 | -110,058 | -2,366,221 | ||||||||||||
Noncontrolling interest | - | - | - | 4,160 | 4,160 | ||||||||||||
Segment net profit (loss) | -11,316,324 | -2,614,032 | -64,083 | -12,349,498 | -26,343,937 | ||||||||||||
Schedule Of Revenue By Major Customers By Reporting Segments [Table Text Block] | The following tables set forth our three major customers in each segment: | ||||||||||||||||
For the Nine Months Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Corn Division : | |||||||||||||||||
Guangdong Wen‘s poultry Co., Ltd. | 5.4 | % | 0.8 | % | |||||||||||||
Chengdu Zhengda Co., Ltd. | 4.7 | % | 3.3 | % | |||||||||||||
ShuangliuZhengda Co., Ltd. | 4.4 | % | 2.3 | % | |||||||||||||
Top Three Customers as % of Total Gross Sales: | 14.5 | % | 6.5 | % | |||||||||||||
Grain Division : | |||||||||||||||||
Deyufang Innovation Food (Beijing) Co., Ltd. | 64.6 | % | 53.3 | % | |||||||||||||
Ethical Food SA | 12.9 | % | 0 | % | |||||||||||||
JingzhongShengde Grain Trading Co., Ltd. | 3 | % | 0 | % | |||||||||||||
Top Three Customers as % of Total Gross Sales | 80.5 | % | 53.3 | % | |||||||||||||
Bulk Trading Division : | |||||||||||||||||
Shanxi Helifeihua Trading Co., Ltd. | 27.8 | % | 12.7 | % | |||||||||||||
Shenzhen XinJiawang Agricultural By-products development Co. Ltd. | 14.6 | % | 4.2 | % | |||||||||||||
Yuchi Kaiwang Grain and Oil Wholesale Department | 10.9 | % | 4.5 | % | |||||||||||||
Top Three Customers as % of Total Gross Sales: | 53.4 | % | 21.4 | % | |||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Operating Leases Of Lessee Disclosure [Table Text Block] | The Company leases railroad lines, warehouses and offices under operating leases. Future minimum lease payments under operating leases with initial or remaining terms of one year or more are as follows: | ||||
As of December 31, | Operating Leases | ||||
2015 | $ | 211,698 | |||
2016 | 187,592 | ||||
2017 | 169,552 | ||||
2018 | 169,552 | ||||
2019 | 169,552 | ||||
Thereafter | 902,100 | ||||
$ | 1,810,046 | ||||
NATURE_OF_BUSINESS_AND_BASIS_O2
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Apr. 27, 2010 | |
City Zone Holdings Limited [Member] | ||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||
Subsidiary, Domicile | British Virgin Islands | |
Subsidiary, Date of Incorporation | 27-Jul-09 | |
Subsidiary, Registered Capital | $20,283,581 | |
Equity Method Investment, Ownership Percentage | 100.00% | 100.00% |
Subsidiary, Principal Activities | Holding company of Most Smart | |
Most Smart International Limited [Member] | ||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||
Subsidiary, Domicile | Hong Kong | |
Subsidiary, Date of Incorporation | 11-Mar-09 | |
Subsidiary, Registered Capital | 1 | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Subsidiary, Principal Activities | Holding company of Shenzhen Redsun | |
Redsun Technology (Shenzhen) Co., Ltd [Member] | ||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||
Subsidiary, Domicile | The PRC | |
Subsidiary, Date of Incorporation | 20-Aug-09 | |
Subsidiary, Registered Capital | 30,000 | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Subsidiary, Principal Activities | Holding company of Shenzhen JiRuHai, Taizihu and Huichun | |
Shenzhen JiRuHai Technology Co., Ltd [Member] | ||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||
Subsidiary, Domicile | The PRC | |
Subsidiary, Date of Incorporation | 20-Aug-09 | |
Subsidiary, Registered Capital | 14,638 | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Subsidiary, Principal Activities | Holding company of Beijing Detian Yu | |
Detian Yu Biotechnology (Beijing) Co., Ltd [Member] | ||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||
Subsidiary, Domicile | The PRC | |
Subsidiary, Date of Incorporation | 30-Nov-06 | |
Subsidiary, Registered Capital | 7,637,723 | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Subsidiary, Principal Activities | Wholesale distribution of simple-processed and deep-processed packaged food products and staple food. Holding company of the following first five entities. | |
Jinzhong Deyu Agriculture Trading Co., Ltd. [Member] | ||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||
Subsidiary, Domicile | The PRC | |
Subsidiary, Date of Incorporation | 22-Apr-04 | |
Subsidiary, Registered Capital | 1,492,622 | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Subsidiary, Principal Activities | Organic grains preliminary processing and wholesale distribution. | |
Jinzhong Yongcheng Agriculture Trading Co., Ltd [Member] | ||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||
Subsidiary, Domicile | The PRC | |
Subsidiary, Date of Incorporation | 30-May-06 | |
Subsidiary, Registered Capital | 1,025,787 | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Subsidiary, Principal Activities | Corns preliminary processing and wholesale | |
Jinzhong Yuliang Agriculture Trading Co., Ltd [Member] | ||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||
Subsidiary, Domicile | The PRC | |
Subsidiary, Date of Incorporation | 17-Mar-08 | |
Subsidiary, Registered Capital | 13,963,243 | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Subsidiary, Principal Activities | Corns preliminary processing and wholesale distribution. | |
Tianjin Guandu Food Co., Ltd [Member] | ||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||
Subsidiary, Domicile | The PRC | |
Subsidiary, Date of Incorporation | 21-Jun-11 | |
Subsidiary, Registered Capital | 1,544,497 | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Subsidiary, Principal Activities | Wholesale distribution of simple-processed and deep-processed packaged food products and staple food. | |
Hebei Yugu Grain Co., Ltd [Member] | ||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||
Subsidiary, Domicile | The PRC | |
Subsidiary, Date of Incorporation | 25-Jul-11 | |
Subsidiary, Registered Capital | 1,563,824 | |
Equity Method Investment, Ownership Percentage | 70.00% | |
Subsidiary, Principal Activities | Wholesale distribution of grain products and operating or acting as an agent of import & export business for grain products. | |
Shanxi Taizihu Food Co., Ltd [Member] | ||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||
Subsidiary, Domicile | The PRC | |
Subsidiary, Date of Incorporation | 27-Jul-03 | |
Subsidiary, Registered Capital | 1,208,233 | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Subsidiary, Principal Activities | Producing and selling fruit beverages and soybean products. | |
Shanxi HuiChun Bean Products Co., Ltd [Member] | ||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||
Subsidiary, Domicile | The PRC | |
Subsidiary, Date of Incorporation | 2-Sep-07 | |
Subsidiary, Registered Capital | 2,636,192 | |
Equity Method Investment, Ownership Percentage | 100.00% | |
Subsidiary, Principal Activities | Producing and selling fruit beverages and soybean products. | |
Jilin Jinglong Agriculture Development Limited [Member] | ||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||
Subsidiary, Domicile | The PRC | |
Subsidiary, Date of Incorporation | 10-Oct-12 | |
Subsidiary, Registered Capital | $3,152,138 | |
Equity Method Investment, Ownership Percentage | 99.00% | |
Subsidiary, Principal Activities | Procurement, storage and sales of corn and grain. |
NATURE_OF_BUSINESS_AND_BASIS_O3
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION (Details Textual) | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 02, 2012 | Feb. 02, 2012 | Feb. 02, 2012 | Feb. 02, 2012 | Feb. 02, 2012 | Feb. 02, 2012 | Feb. 02, 2012 | Feb. 02, 2012 | Nov. 30, 2009 | Apr. 27, 2010 | Feb. 02, 2012 | Feb. 02, 2012 | Feb. 02, 2012 | Feb. 02, 2012 | Feb. 02, 2012 | Feb. 02, 2012 |
USD ($) | USD ($) | USD ($) | CNY | He Hao [Member] | He Hao [Member] | Mr.QingheXu [Member] | Mr.QingheXu [Member] | Mr.Jinqing Xie [Member] | Mr.Jinqing Xie [Member] | City Zone Holdings Limited [Member] | City Zone Holdings Limited [Member] | Beijing Kanggang Food Development Co. Ltd [Member] | Beijing Kanggang Food Development Co. Ltd [Member] | Taizihu Group [Member] | Taizihu Group [Member] | Taizihu Group [Member] | Huichun [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Share Exchange [Member] | USD ($) | CNY | He Hao [Member] | Mr.QingheXu [Member] | Mr.Jinqing Xie [Member] | Beijing Kanggang Food Development Co. Ltd [Member] | ||||||
USD ($) | ||||||||||||||||||
NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PREPARATION [Line Items] | ||||||||||||||||||
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued | 8,736,932 | |||||||||||||||||
Common stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 | |||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | 100.00% | 100.00% | 0.00% | 32.50% | 17.50% | 15.00% | |||||||||||
Business Acquisition Cost Of Acquired Entity Cash Payments | $2,342,168 | 14,773,222 | $1,522,409 | 9,602,594 | $819,759 | 5,170,628 | $817,845 | 5,158,556 | ||||||||||
Business Acquisition Cost Of Acquired Entity | $5,502,181 | 34,705,000 | ||||||||||||||||
Minority Interest Ownership Percentage By Parent Before Further Acquisition | 85.00% | 85.00% | ||||||||||||||||
Minority Interest Ownership Percentage By Parent After Further Acquisition | 100.00% | 100.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Automobiles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Advertising Expense | $423,498 | $298,040 | |
Allowance for Doubtful Accounts Receivable | 1,337,364 | 984,717 | |
Inventory Valuation Reserves | 140,582 | 4,603,929 | |
Impairment of Long-Lived Assets Held-for-use | 772,091 | 773,874 | |
Finite-Lived Intangible Assets, Accumulated Impairment Loss | 6,512,731 | 6,675,073 | |
Allowance for Doubtful Accounts Receivable, Recoveries | $834,917 | $834,917 | $0 |
ACCOUNTS_RECEIVABLE_Details
ACCOUNTS RECEIVABLE (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $22,873,889 | $33,311,614 |
Less: Allowance for doubtful accounts | -1,337,364 | -984,717 |
Accounts receivable, net | $21,536,525 | $32,326,897 |
INVENTORY_Details
INVENTORY (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory [Line Items] | ||
Raw materials | $751,095 | $1,020,486 |
Work in process | 0 | 49,717 |
Finished goods | 8,125,176 | 17,752,203 |
Supplies | 1,080,242 | 1,099,747 |
Reserve for inventory valuation | -140,582 | -4,603,929 |
Total Inventory | $9,815,931 | $15,318,224 |
PREPAID_EXPENSES_Details
PREPAID EXPENSES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Prepaid expenses [Line Items] | ||
Deductible value-added taxes (VAT) | $637,612 | $356,876 |
Prepaid rent | 290,190 | 368,827 |
Prepaid other expenses | 11,627 | 435,599 |
Total | $939,429 | $1,161,302 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT, AND EQUIPMENT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Automobiles | $1,021,089 | $1,046,542 |
Buildings | 16,587,178 | 17,480,188 |
Office equipment | 986,892 | 1,012,007 |
Machinery and equipment | 8,869,381 | 8,386,357 |
Furniture and fixtures | 111,615 | 114,398 |
Total cost | 27,576,155 | 28,039,492 |
Less: Accumulated depreciation | -10,556,028 | -8,788,441 |
Property, plant, and equipment, net | $17,020,127 | $19,251,051 |
PROPERTY_PLANT_AND_EQUIPMENT_D1
PROPERTY, PLANT, AND EQUIPMENT (Details Textual) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |
USD ($) | USD ($) | CNY | |
Property, Plant and Equipment [Line Items] | |||
Property Pledged As Collateral | $5,700,000 | 35,200,000 | |
Depreciation | $1,767,588 | $1,983,394 |
CONSTRUCTIONINPROGRESS_Details
CONSTRUCTION-IN-PROGRESS (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Construction In Progress, Gross | $353,963 | $0 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Land use rights | $14,341,429 | $14,698,916 |
Software-ERP System and B2C platform | 740,945 | 1,081,531 |
Less: Accumulated amortization | -1,110,323 | -1,277,565 |
Impairment loss | -6,512,731 | -6,675,073 |
Total | $7,459,320 | $7,827,809 |
INTANGIBLE_ASSETS_Details_Text
INTANGIBLE ASSETS (Details Textual) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | CNY | Computer Software, Intangible Asset [Member] | Computer Software, Intangible Asset [Member] | Farmland Use Rights Jinzhong Deyu [Member] | Taizihu [Member] | Jinzhong Deyu Agriculture Trading Co Ltds [Member] | Jinzhong Deyu Agriculture Trading Co Ltds [Member] | Huichun [Member] | |
USD ($) | USD ($) | USD ($) | Use Rights [Member] | sqft | Farm Land [Member] | Use Rights [Member] | ||||
sqft | USD ($) | USD ($) | sqft | |||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Area of Land | 17,000 | 11,667 | 100,000 | |||||||
Property Pledged As Collateral | $5,700,000 | 35,200,000 | $3,892,585 | |||||||
Finite-Lived Intangible Assets, Amortization Expense | 167,242 | 382,826 | ||||||||
Use Rights Term | The term of the right is 50 years from October 28, 2008 to October 27, 2058. | |||||||||
Finite-Lived Intangible Assets, Gross | 1,047,610 | 7,516,359 | ||||||||
Finite-Lived Intangible Assets, Net | 7,459,320 | 7,827,809 | 0 | 1,697,000 | ||||||
Impairment of Intangible Assets, Finite-lived | 5,819,359 | 5,832,800 | 738,396 | 740,102 | ||||||
Amortization Of Intangible Assets | $167,242 | $382,826 |
SHORTTERM_LOANS_Details
SHORT-TERM LOANS (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
USD ($) | USD ($) | Loans Payable, One [Member] | Loans Payable, One [Member] | Loans Payable, One [Member] | Loans Payable, Two [Member] | Loans Payable, Two [Member] | Loans Payable, Three [Member] | Loans Payable, Three [Member] | Loans Payable, Four [Member] | Loans Payable, Four [Member] | Loans Payable, Five [Member] | Loans Payable, Five [Member] | Loans Payable, Six [Member] | Loans Payable, Six [Member] | Loans Payable, Seven [Member] | Loans Payable, Seven [Member] | Loans Payable, Eight [Member] | Loans Payable, Eight [Member] | |
USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||
Short-term Debt [Line Items] | |||||||||||||||||||
Short-term loan | $7,268,801 | $7,464,856 | $2,353,093 | 14,600,000 | $2,411,748 | $1,369,951 | $0 | $1,369,951 | $0 | $1,450,537 | $1,486,694 | $725,269 | $743,347 | $0 | $14,867 | $0 | $1,404,100 | $0 | $1,404,100 |
SHORTTERM_LOANS_Details_Textua
SHORT-TERM LOANS (Details Textual) | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 14, 2012 | Jul. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 18, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 06, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 04, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 15, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 06, 2013 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 06, 2013 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
USD ($) | USD ($) | Loans Payable, One [Member] | Loans Payable, One [Member] | Loans Payable, One [Member] | Loans Payable, One [Member] | Loans Payable, One [Member] | Loans Payable, One [Member] | Loans Payable, Two [Member] | Loans Payable, Two [Member] | Loans Payable, Two [Member] | Loans Payable, Three [Member] | Loans Payable, Three [Member] | Loans Payable, Three [Member] | Loans Payable, Four [Member] | Loans Payable, Four [Member] | Loans Payable, Five [Member] | Loans Payable, Five [Member] | Loans Payable, Five [Member] | Loans Payable, Six [Member] | Loans Payable, Six [Member] | Loans Payable, Six [Member] | Loans Payable, Seven [Member] | Loans Payable, Seven [Member] | Loans Payable, Seven [Member] | Loans Payable, Seven [Member] | Loans Payable, Eight [Member] | Loans Payable, Eight [Member] | Loans Payable, Eight [Member] | Loans Payable, Eight [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Basis for Effective Rate | 145% | 145% | 130% | 130% | ||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.00% | 6.00% | 6.00% | 14.69% | 14.69% | 14.69% | 6.00% | 6.00% | 6.00% | 15.08% | 15.08% | |||||||||||||||||||
Repayments of Short-term Debt | $66,075 | 400,000 | ||||||||||||||||||||||||||||
Debt Instrument, Pass-due Interest Rate, Percentage | 0.00% | 0.00% | 7.80% | 7.80% | 7.80% | 7.80% | 7.80% | |||||||||||||||||||||||
Debt Instrument, Maturity Date | 13-Aug-13 | 11-Sep-15 | 11-Sep-15 | 17-Sep-13 | 3-Jan-14 | 16-Dec-14 | 22-Aug-14 | 22-Aug-14 | ||||||||||||||||||||||
Short-Term Bank Loans and Notes Payable | $7,268,801 | $7,464,856 | $2,353,093 | 14,600,000 | $2,411,748 | $1,369,951 | $0 | $1,369,951 | $0 | $1,450,537 | $1,486,694 | $725,269 | $743,347 | $0 | $14,867 | $0 | $1,404,100 | $0 | $1,404,100 |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accrued Liabilities [Line Items] | ||
Accrued VAT and other taxes | $422,049 | $261,714 |
Accrued payroll | 179,117 | 167,046 |
Others | 805,353 | 574,125 |
Total | $1,406,519 | $1,002,885 |
LOSS_ON_INVENTORY_VALUATION_RE1
LOSS ON INVENTORY VALUATION RESERVE (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Inventory [Line Items] | ||
Gain Loss On Inventory Valuation Reserve | ($4,478,174) | |
Corn Division [Member] | ||
Inventory [Line Items] | ||
Gain Loss On Inventory Valuation Reserve | 4,391,580 | |
Grain Division [Member] | ||
Inventory [Line Items] | ||
Gain Loss On Inventory Valuation Reserve | $86,594 |
LOSS_ON_IMPAIRMENT_OF_ASSET_VA1
LOSS ON IMPAIRMENT OF ASSET VALUATION (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Asset Impairment Charges [Line Items] | ||
Asset Impairment Charges | $0 | $7,346,776 |
Contract Termination [Member] | ||
Asset Impairment Charges [Line Items] | ||
Asset Impairment Charges | 773,874 | |
Use Rights [Member] | ||
Asset Impairment Charges [Line Items] | ||
Asset Impairment Charges | 5,832,800 | |
Computer Software, Intangible Asset [Member] | ||
Asset Impairment Charges [Line Items] | ||
Asset Impairment Charges | $740,102 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Current income tax expense (benefit) | ||
U.S. | $0 | $0 |
PRC | 501,262 | 604,450 |
Total current expense (benefit) | 501,262 | 604,450 |
Deferred income tax expense (benefit) | ||
U.S. | 0 | 0 |
PRC | 0 | 0 |
Income tax expense (benefit) | $501,262 | $604,450 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ||
Expected U.S. income tax expense | 34.00% | 34.00% |
Increase (decrease) in taxes resulting from: | ||
Tax-exempt income | -33.90% | -28.10% |
Foreign tax differential | 0.30% | -1.80% |
Change in valuation allowance | 3.40% | -8.50% |
Intercompany elimination | 0.00% | 2.00% |
Other | -6.90% | 0.10% |
Income tax expense | -3.00% | -2.30% |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets | ||
Net operating loss carryforwards (NOL) | $5,696,456 | $5,090,602 |
Share-based compensation | 407,099 | 435,844 |
Others | 438,122 | 440,331 |
Total | 6,541,677 | 5,966,777 |
Less: Valuation allowance | -6,541,677 | -5,966,777 |
Total deferred tax assets, net | $0 | $0 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ||
Percentage Of Valuation Allowance | 100.00% | |
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 34.00% | 34.00% |
Effective Income Tax Rate, Continuing Operations | -3.00% | -2.30% |
Foreign Country [Member] | ||
Income Taxes [Line Items] | ||
Effective Income Tax Rate, Continuing Operations | 25.00% |
EXTRAORDINARY_LOSS_AFTER_TAXES1
EXTRAORDINARY LOSS (AFTER TAXES) (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Extraordinary Item [Line Items] | ||
Extraordinary Item, Gain (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $0 | ($1,212,430) |
NET_INCOME_LOSS_PER_SHARE_Deta
NET INCOME (LOSS) PER SHARE (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Net Income Loss Per Share [Line Items] | ||
Net income (loss) attributable to common stockholders - basic | ($17,356,472) | ($26,818,546) |
Preferred dividends applicable to convertible preferred stocks | 0 | |
Net income (loss) attributable to common stockholders - diluted | ($17,356,472) | ($26,818,546) |
Net income (loss) attributable to common stockholders - basic (in shares) | 10,974,596 | 10,625,170 |
Preferred dividends applicable to convertible preferred stocks (in shares) | 0 | |
Net income (loss) attributable to common stockholders - diluted (in shares) | 10,974,596 | 10,625,170 |
Net income (loss) attributable to common stockholders - basic (in dollars per share) | ($1.58) | ($2.52) |
Net income (loss) attributable to common stockholders - diluted (in dollars per share) | ($1.58) | ($2.52) |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended |
10-May-10 | 31-May-10 | Dec. 31, 2014 | |
Shareholders Equity [Line Items] | |||
Fair values of financial instruments | $11,288,070 | ||
Gross proceeds | 10,805,750 | 2,594,607 | 10,805,750 |
Direct financing costs | -1,742,993 | ||
Fair value of placement agent warrants | 187,366 | ||
Financing Cost Fair Value | 9,250,123 | ||
Series A Preferred Stock [Member] | |||
Shareholders Equity [Line Items] | |||
Fair values of financial instruments | 10,248,092 | ||
Gross proceeds | 9,810,227 | ||
Direct financing costs | -1,581,550 | ||
Fair value of placement agent warrants | 0 | ||
Financing Cost Fair Value | 8,228,677 | ||
Warrant [Member] | |||
Shareholders Equity [Line Items] | |||
Fair values of financial instruments | 1,039,978 | ||
Gross proceeds | 995,523 | ||
Direct financing costs | -161,443 | ||
Fair value of placement agent warrants | 187,366 | ||
Financing Cost Fair Value | $1,021,446 |
SHAREHOLDERS_EQUITY_Details_1
SHAREHOLDERS' EQUITY (Details 1) (Series A Preferred Stock [Member], USD $) | 0 Months Ended | 1 Months Ended |
10-May-10 | Apr. 27, 2010 | |
Shareholders Equity [Line Items] | ||
Indexed common shares (in shares) | 589,689 | 1,866,174 |
Components of fair value: | ||
Common stock equivalent value | $2,083,094 | $6,631,403 |
Dividend feature | 209,439 | 659,821 |
Indexed Common Shares At Fair Value | $2,292,533 | $7,291,224 |
Fair Value, Inputs, Level 3 [Member] | ||
Significant assumptions: | ||
Common stock price (in dollars per share) | $3.53 | $3.55 |
Horizon for dividend cash flow projection | 2 | 2 |
Weighted average cost of capital ("WACC") | 15.55% | 15.91% |
SHAREHOLDERS_EQUITY_Details_2
SHAREHOLDERS' EQUITY (Details 2) (USD $) | 0 Months Ended | 1 Months Ended |
10-May-10 | Apr. 27, 2010 | |
Investor Warrants [Member] | ||
Shareholders Equity [Line Items] | ||
Indexed shares (in shares) | 235,883 | 746,479 |
Exercise price (in dollars per share) | $5.06 | $5.06 |
Investor Warrants [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Significant assumptions: | ||
Stock price (in dollars per share) | $3.53 | $3.55 |
Remaining term (in years) | 5 years | 5 years |
Investor Warrants [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Significant assumptions: | ||
Risk free rate | 2.24% | 2.39% |
Expected volatility | 45.47% | 45.25% |
Agent Warrants [Member] | ||
Shareholders Equity [Line Items] | ||
Indexed shares (in shares) | 41,279 | 130,632 |
Exercise price (in dollars per share) | $4.84 | $4.84 |
Agent Warrants [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Significant assumptions: | ||
Stock price (in dollars per share) | $3.53 | $3.55 |
Remaining term (in years) | 5 years | 5 years |
Agent Warrants [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Significant assumptions: | ||
Risk free rate | 2.24% | 2.39% |
Expected volatility | 45.47% | 45.25% |
SHAREHOLDERS_EQUITY_Details_3
SHAREHOLDERS' EQUITY (Details 3) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Number of Warrants (in shares) | 1,154,273 |
Average Remaining Contractual Life Of Warrants (in years) | 3 years 11 days |
Number of Warrants, Granted | 0 |
Number of Warrants, Forfeited | 0 |
Number of Warrants, Exercised | 0 |
Outstanding Number of Warrants (in shares) | 1,154,273 |
Exercise Price One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Warrants, Exercise Price (in dollars per share) | 5.06 |
Outstanding Number of Warrants (in shares) | 982,362 |
Average Remaining Contractual Life Of Warrants (in years) | 3 months 25 days |
Exercise Price Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Warrants, Exercise Price (in dollars per share) | 4.84 |
Outstanding Number of Warrants (in shares) | 171,911 |
Average Remaining Contractual Life Of Warrants (in years) | 3 months 25 days |
SHAREHOLDERS_EQUITY_Details_Te
SHAREHOLDERS' EQUITY (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |
10-May-10 | 31-May-10 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 27, 2010 | Dec. 31, 2010 | |
Shareholders Equity [Line Items] | ||||||
Gross proceeds | $10,805,750 | $2,594,607 | $10,805,750 | |||
Series A convertible preferred stock, par value (in dollars per share) | $0.00 | $0.00 | ||||
Common stock, shares issued | 9,999,999 | 11,044,328 | ||||
Common stock, shares outstanding | 11,044,328 | 10,618,266 | ||||
Series A convertible preferred stock, shares issued | 1,894,992 | |||||
Series A convertible preferred stock, shares outstanding | 9,999,999 | 1,894,992 | 2,182,628 | |||
Direct financing costs | 1,742,993 | |||||
Fair value of placement agent warrants | 187,366 | |||||
Investors [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $5.06 | |||||
Placement Agent [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $4.84 | |||||
Warrant [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Gross proceeds | 995,523 | |||||
Direct financing costs | 161,443 | |||||
Fair value of placement agent warrants | 187,366 | |||||
Number Of Warrants Paid To Placement Agents | 171,911 | |||||
Common Stock [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Conversion of Stock, Shares Issued | 964,329 | |||||
City Zone Holdings Limited [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 100.00% | 100.00% | ||||
Percentage Of Fully Diluted Outstanding Shares | 65.71% | |||||
City Zone Holdings Limited [Member] | After Acquisition [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 9.50% | |||||
City Zone Holdings Limited [Member] | Before Acquisition [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 100.00% | |||||
Series A Convertible Preferred Stock [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Conversion of Stock, Shares Converted | 964,329 | |||||
Common stock, shares issued | 80,000 | |||||
Preferred Stock, Dividend Rate, Percentage | 5.00% | |||||
Preferred Stock, Liquidation Preference Per Share | $4.40 | |||||
Stock Dividends, Shares | 403,458 | |||||
Series A Preferred Stock [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Gross proceeds | 9,810,227 | |||||
Conversion of Stock, Shares Converted | 964,329 | |||||
Dividends, Preferred Stock | 418,624 | 478,769 | ||||
Direct financing costs | 1,581,550 | |||||
Fair value of placement agent warrants | 0 | |||||
Share Exchange [Member] | City Zone Holdings Limited [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued | 8,736,932 | |||||
Private Placement [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Series A convertible preferred stock, par value (in dollars per share) | 0.001 | |||||
Payments of Stock Issuance Costs | 1,555,627 | |||||
Number Of Shares Included In One Unit | 2,455,863 | |||||
Number Of Stock To Be Issued In Exercise Of Warrants | 982,362 | 982,362 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 5.06 | |||||
Private Placement [Member] | Warrant [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Number Of Common Stock To Be Purchased From Shares Or Warrants | 0.4 | |||||
Private Placement First Round [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Gross proceeds | 8,211,166 | |||||
Number Of Shares Included In One Unit | 589,689 | 1,866,174 | ||||
Cash Payable For Execution Of Retainer Agreement | 25,000 | |||||
Number Of Stock To Be Issued In Exercise Of Warrants | 235,883 | 746,479 | ||||
Percentage Of Placement Fee Payable | 7.00% | |||||
Percentage Of Cash Corporate Finance Fee Payable | 1.00% | |||||
Number Of Warrants Paid To Placement Agents | 171,911 | |||||
Percentage Of Weighted Average Cost Of Capital | 18.60% | 18.94% | ||||
Percentage Of Preferred Stock To Be Issued To Placement Agent | 5.00% | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $5.06 | 4.84 | ||||
Private Placement First Round [Member] | Series A Convertible Preferred Stock [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Preferred Stock, Liquidation Preference Per Share | 4.4 | |||||
Private Placement Second Round [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Number Of Shares Included In One Unit | 1,866,174 |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Options Granted On November 8, 2010 [Member] | Exercisable December, 2010 Through November, 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Rate (%) | 1.12% |
Expected Lives (years) | 5 years 14 days |
Expected Volatility (%) | 46.10% |
Dividend Yield (%) | 0.00% |
Options Granted On November 8, 2010 [Member] | Exercisable December, 2010 Through November, 2020 [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected forfeitures per year (%) | 55.00% |
Options Granted On November 8, 2010 [Member] | Exercisable December, 2010 Through November, 2020 [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected forfeitures per year (%) | 0.00% |
Options Granted On November 8, 2010 [Member] | Exercisable November, 2011 Through November, 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Rate (%) | 1.27% |
Expected Lives (years) | 5 years 6 months |
Expected Volatility (%) | 44.49% |
Dividend Yield (%) | 0.00% |
Options Granted On November 8, 2010 [Member] | Exercisable November, 2011 Through November, 2020 [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected forfeitures per year (%) | 55.00% |
Options Granted On November 8, 2010 [Member] | Exercisable November, 2011 Through November, 2020 [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected forfeitures per year (%) | 0.00% |
Options Granted On November 8, 2010 [Member] | Exercisable November, 2012 Through November, 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Rate (%) | 1.46% |
Expected Lives (years) | 6 years |
Expected Volatility (%) | 43.04% |
Dividend Yield (%) | 0.00% |
Options Granted On November 8, 2010 [Member] | Exercisable November, 2012 Through November, 2020 [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected forfeitures per year (%) | 55.00% |
Options Granted On November 8, 2010 [Member] | Exercisable November, 2012 Through November, 2020 [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected forfeitures per year (%) | 0.00% |
Options Granted On December 15, 2010 [Member] | Exercisable January, 2011 Through December, 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Rate (%) | 2.15% |
Expected Lives (years) | 5 years 14 days |
Expected Volatility (%) | 46.15% |
Expected forfeitures per year (%) | 0.00% |
Dividend Yield (%) | 0.00% |
Options Granted On December 15, 2010 [Member] | Exercisable December, 2011 Through December, 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Rate (%) | 2.32% |
Expected Lives (years) | 5 years 6 months |
Expected Volatility (%) | 44.52% |
Expected forfeitures per year (%) | 0.00% |
Dividend Yield (%) | 0.00% |
Options Granted On December 15, 2010 [Member] | Exercisable December, 2012 Through December, 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Rate (%) | 2.50% |
Expected Lives (years) | 6 years |
Expected Volatility (%) | 43.09% |
Expected forfeitures per year (%) | 0.00% |
Dividend Yield (%) | 0.00% |
Options Granted On March 8, 2012 [Member] | Exercisable September, 2012 Through March, 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Rate (%) | 0.94% |
Expected Lives (years) | 5 years 3 months |
Expected Volatility (%) | 45.91% |
Expected forfeitures per year (%) | 0.00% |
Dividend Yield (%) | 0.00% |
Options Granted On March 8, 2012 [Member] | Exercisable March 2013 Through March 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Rate (%) | 1.00% |
Expected Lives (years) | 5 years 5 months 26 days |
Expected Volatility (%) | 45.22% |
Expected forfeitures per year (%) | 0.00% |
Dividend Yield (%) | 0.00% |
Options Granted On November 23, 2012 [Member] | Exercisable December, 2012 Through November, 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Rate (%) | 0.53% |
Expected Lives (years) | 4 years 7 days |
Expected Volatility (%) | 37.43% |
Expected forfeitures per year (%) | 0.00% |
Dividend Yield (%) | 0.00% |
Options Granted On November 23, 2012 [Member] | Exercisable November, 2013 Through November, 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Rate (%) | 0.60% |
Expected Lives (years) | 4 years 5 months 23 days |
Expected Volatility (%) | 46.48% |
Expected forfeitures per year (%) | 0.00% |
Dividend Yield (%) | 0.00% |
Options Granted On November 23, 2012 [Member] | Exercisable November, 2014 Through November, 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Rate (%) | 0.68% |
Expected Lives (years) | 4 years 11 months 23 days |
Expected Volatility (%) | 46.45% |
Expected forfeitures per year (%) | 0.00% |
Dividend Yield (%) | 0.00% |
SHAREBASED_COMPENSATION_Detail1
SHARE-BASED COMPENSATION (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Outstanding as of January 1, 2014 | 750,000 | |
Shares, Granted | 0 | |
Shares, Exercised | 0 | |
Shares, Forfeited | -80,000 | |
Shares, Outstanding As of December 31, 2014 | 670,000 | |
Shares, Exercisable As of December 31, 2014 | 670,000 | |
Shares, Vested and expected to vest | 670,000 | [1] |
Weighted-Average Exercise Price, Outstanding as of January 1, 2014 (in dollars per share) | $3.14 | |
Weighted-Average Exercise Price, Granted (in dollars per share) | $0 | |
Weighted-Average Exercise Price, Exercised (in dollars per share) | $0 | |
Weighted-Average Exercise Price, Forfeited (in dollars per share) | $4.40 | |
Weighted-Average Exercise Price, Outstanding As of December 31, 2014 (in dollars per share) | $2.99 | |
Weighted-Average Exercise Price, Exercisable As of December 31, 2014 (in dollars per share) | $2.99 | |
Weighted-Average Exercise Price, Vested and expected to vest (in dollars per share) | $2.99 | [1] |
Weighted-Average Remaining Contractual Term, Outstanding As of December 31, 2014 (in years) | 3 years 3 months | |
Weighted-Average Remaining Contractual Term, Exercisable As of December 31, 2014 (in years) | 3 years 11 days | |
Weighted-Average Remaining Contractual Term, Vested and expected to vest (in years) | 3 years 3 months | [1] |
Aggregate Intrinsic Value, Outstanding As of December 31, 2014 | $537,202 | |
Aggregate Intrinsic Value, Exercisable As of December 31, 2014 | $537,202 | |
[1] | Includes vested shares and unvested shares after a forfeiture rate is applied. |
SHAREBASED_COMPENSATION_Detail2
SHARE-BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Unvested as of January 1, 2014 | 50,000 |
Shares, Granted | 0 |
Shares, Vested | -50,000 |
Shares, Forfeited | 0 |
Shares, Unvested as of December 31, 2014 | 0 |
Weighted-Average Grant-Date Fair Value, Unvested as of January 1, 2014 | $3,573 |
Weighted-Average Grant-Date Fair Value, Granted | 0 |
Weighted-Average Grant-Date Fair Value, Vested | -3,573 |
Weighted-Average Grant-Date Fair Value, Forfeited | 0 |
Weighted-Average Grant-Date Fair Value, Unvested as of December 31, 2014 | $0 |
SHAREBASED_COMPENSATION_Detail3
SHARE-BASED COMPENSATION (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $2,375 | $44,504 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $808 | $15,131 | |
Shares, Granted | 0 | ||
Weighted-Average Exercise Price, Granted (in dollars per share) | $0 | ||
Deferred Tax Assets Percentage Of Valuation Allowance | 100.00% | 100.00% | |
Shares, Granted | 0 | ||
Options Granted On November 8, 2010 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Granted | 931,000 | ||
Weighted-Average Exercise Price, Granted (in dollars per share) | $4.40 | ||
Options Granted On December 15, 2010 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Granted | 40,000 | ||
Weighted-Average Exercise Price, Granted (in dollars per share) | $4.40 | ||
Options Granted On March 8, 2012 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | ||
Shares, Granted | 420,000 | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period To Be Vested In Twelve Months After Grant Date Percentage | 50.00% | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period To Be Vested In Six Months After Grant Date Percentage | 50.00% | ||
Options Granted In 2010 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Toward Options Grants In Period To Be Vested In One Month After Grant Date Percentage | 33.33% | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period To Be Vested In Twelve Months After Grant Date Percentage | 33.33% | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period To Be Vested In Twenty Four Months After Grant Date Percentage | 33.33% | ||
Options Granted On November 23, 2012 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Toward Options Grants In Period To Be Vested In One Month After Grant Date Percentage | 33.33% | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period To Be Vested In Twelve Months After Grant Date Percentage | 33.33% | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period To Be Vested In Twenty Four Months After Grant Date Percentage | 33.33% | ||
Shares, Granted | 150,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Due to related parties | $13,958 | $14,306 |
Mr. He Hao [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $13,958 | $14,306 |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Loss on inventory valuation reserve | ||
Revenues from external customers | $109,677,220 | $246,350,104 |
Loss on inventory valuation reserve | -4,478,174 | |
Intersegment revenues | 0 | 0 |
Interest revenue | 6,263 | 35,193 |
Interest expense | -783,560 | -790,438 |
Net interest (expense) income | -777,297 | -755,245 |
Depreciation and amortization | -2,174,049 | -2,366,220 |
Noncontrolling interest | 1,039 | 4,160 |
Segment net profit (loss) | -16,938,887 | -26,343,937 |
Corn Division [Member] | ||
Loss on inventory valuation reserve | ||
Revenues from external customers | 75,263,798 | 142,560,749 |
Loss on inventory valuation reserve | 4,391,580 | |
Intersegment revenues | 0 | 0 |
Interest revenue | 3,298 | 8,773 |
Interest expense | -424,795 | -425,773 |
Net interest (expense) income | -421,497 | -417,000 |
Depreciation and amortization | -576,927 | -533,709 |
Noncontrolling interest | 0 | 0 |
Segment net profit (loss) | -13,512,424 | -11,316,324 |
Grain Division [Member] | ||
Loss on inventory valuation reserve | ||
Revenues from external customers | 33,399,849 | 41,637,805 |
Loss on inventory valuation reserve | 86,594 | |
Intersegment revenues | 0 | 0 |
Interest revenue | 2,498 | 2,844 |
Interest expense | -357,939 | -316,831 |
Net interest (expense) income | -355,441 | -313,987 |
Depreciation and amortization | -1,376,640 | -1,718,252 |
Noncontrolling interest | 0 | 0 |
Segment net profit (loss) | -424,133 | -2,614,032 |
Bulk Trading Division [Member] | ||
Loss on inventory valuation reserve | ||
Revenues from external customers | 1,013,573 | 62,151,550 |
Loss on inventory valuation reserve | 0 | |
Intersegment revenues | 0 | 0 |
Interest revenue | 275 | 6,869 |
Interest expense | 0 | -47,834 |
Net interest (expense) income | 275 | -40,965 |
Depreciation and amortization | -5,235 | -4,202 |
Noncontrolling interest | 0 | 0 |
Segment net profit (loss) | -472,859 | -64,083 |
All Other Segments [Member] | ||
Loss on inventory valuation reserve | ||
Revenues from external customers | 0 | |
Loss on inventory valuation reserve | 0 | |
Intersegment revenues | 0 | 0 |
Interest revenue | 192 | 16,707 |
Interest expense | -826 | 0 |
Net interest (expense) income | -635 | 16,707 |
Depreciation and amortization | -215,246 | -110,058 |
Noncontrolling interest | 1,039 | 4,160 |
Segment net profit (loss) | ($2,529,471) | ($12,349,498) |
SEGMENT_REPORTING_Details_1
SEGMENT REPORTING (Details 1) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Corn Division [Member] | ||
Segment Reporting Information [Line Items] | ||
Top Three Customers as % of Total Gross Sales | 14.50% | 6.50% |
Corn Division [Member] | ShuangliuZhengda Co., Ltd. [Member] | ||
Segment Reporting Information [Line Items] | ||
Top Three Customers as % of Total Gross Sales | 4.40% | 2.30% |
Corn Division [Member] | Guangdong Wenbs poultry Co., Ltd. [Member] | ||
Segment Reporting Information [Line Items] | ||
Top Three Customers as % of Total Gross Sales | 5.40% | 0.80% |
Corn Division [Member] | Chengdu Zhengda Co., Ltd. [Member] | ||
Segment Reporting Information [Line Items] | ||
Top Three Customers as % of Total Gross Sales | 4.70% | 3.30% |
Grain Division [Member] | ||
Segment Reporting Information [Line Items] | ||
Top Three Customers as % of Total Gross Sales | 80.50% | 53.30% |
Grain Division [Member] | Deyufang Innovation Food (Beijing) Co., Ltd. [Member] | ||
Segment Reporting Information [Line Items] | ||
Top Three Customers as % of Total Gross Sales | 64.60% | 53.30% |
Grain Division [Member] | Ethical Food SA [Member] | ||
Segment Reporting Information [Line Items] | ||
Top Three Customers as % of Total Gross Sales | 12.90% | 0.00% |
Grain Division [Member] | JingzhongShengde Grain Trading Co., Ltd. [Member] | ||
Segment Reporting Information [Line Items] | ||
Top Three Customers as % of Total Gross Sales | 3.00% | 0.00% |
Bulk Trading Division [Member] | ||
Segment Reporting Information [Line Items] | ||
Top Three Customers as % of Total Gross Sales | 53.40% | 21.40% |
Bulk Trading Division [Member] | Yuci Kaiwang Grain and Oil Wholesale Department [Member] | ||
Segment Reporting Information [Line Items] | ||
Top Three Customers as % of Total Gross Sales | 10.90% | 4.50% |
Bulk Trading Division [Member] | Shenzhen XinJiawang Agricultural By-products development Co. Ltd. [Member] | ||
Segment Reporting Information [Line Items] | ||
Top Three Customers as % of Total Gross Sales | 14.60% | 4.20% |
Bulk Trading Division [Member] | Shanxi Helifeihua Trading Co., Ltd. [Member] | ||
Segment Reporting Information [Line Items] | ||
Top Three Customers as % of Total Gross Sales | 27.80% | 12.70% |
CONCENTRATION_OF_CREDIT_RISK_D
CONCENTRATION OF CREDIT RISK (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | ||
Sales Revenue, Goods, Net | $109,677,220 | $246,350,104 |
Foreign Country [Member] | ||
Concentration Risk [Line Items] | ||
Accounts Receivable, Net | 328,610 | 0 |
Sales Revenue, Goods, Net | $4,308,033 | $0 |
Accounts Receivable [Member] | Foreign Country [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 12.40% | |
Sales Revenue, Goods, Net [Member] | Foreign Country [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 19.70% |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2014 |
As of December 31, | |
2015 | $211,698 |
2016 | 187,592 |
2017 | 169,552 |
2018 | 169,552 |
2019 | 169,552 |
Thereafter | 902,100 |
Operating Leases, Future Minimum Payments Due | $1,810,046 |