Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 05, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Yew Bio-Pharm Group, Inc. | ' |
Entity Central Index Key | '0001548240 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 50,000,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ' | ' |
Cash | $1,110,025 | $386,821 |
Accounts receivable | 1,027,690 | 722,598 |
Accounts receivable - related party | 1,172,091 | 284,986 |
Inventories | 1,447,980 | 991,234 |
Prepaid expenses and other assets | 34,168 | 150 |
Prepaid expenses - related parties | 40,832 | 60,245 |
Total Current Assets | 4,832,786 | 2,446,034 |
LONG-TERM ASSETS: | ' | ' |
Inventories, net of current portion | 10,032,669 | 9,382,164 |
Property and equipment, net | 977,824 | 885,969 |
Land use rights and yew forest assets, net | 15,755,289 | 15,328,318 |
Total Long-term Assets | 26,765,782 | 25,596,451 |
Total Assets | 31,598,568 | 28,042,485 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 4,411 | 990 |
Accrued expenses and other payables | 113,751 | 199,098 |
Taxes payable | 4,851 | 5,722 |
Due to related parties | 51,657 | 47,876 |
Total Current Liabilities | 174,670 | 253,686 |
Total Liabilities | 174,670 | 253,686 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
SHAREHOLDERS' EQUITY: | ' | ' |
Preferred stock ($0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively) | ' | ' |
Common stock ($0.001 par value; 140,000,000 shares authorized; 50,000,000 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively) | 50,000 | 50,000 |
Additional paid-in capital | 10,396,377 | 10,396,377 |
Retained earnings | 15,728,008 | 13,182,032 |
Statutory reserves | 2,490,750 | 2,179,494 |
Accumulated other comprehensive income - foreign currency translation adjustment | 2,758,763 | 1,980,896 |
Total Shareholders' Equity | 31,423,898 | 27,788,799 |
Total Liabilities and Shareholders' Equity | $31,598,568 | $28,042,485 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Balance Sheets [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred shares, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares issued | 50,000,000 | 50,000,000 |
Common stock, shares outstanding | 50,000,000 | 50,000,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
REVENUES: | ' | ' | ' | ' |
Revenues | $1,455,621 | $930,557 | $4,040,492 | $4,230,631 |
Revenues - related party | 88,706 | 442,467 | 1,409,141 | 602,159 |
Total Revenues | 1,544,327 | 1,373,024 | 5,449,633 | 4,832,790 |
COST OF REVENUES: | ' | ' | ' | ' |
Cost of revenues | 618,059 | 146,409 | 1,320,028 | 726,957 |
Cost of revenues - related party | 20,169 | 84,528 | 402,391 | 109,752 |
Total Cost of Revenues | 638,228 | 230,937 | 1,722,419 | 836,709 |
GROSS PROFIT | 906,099 | 1,142,087 | 3,727,214 | 3,996,081 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Selling | 7,356 | 6,643 | 19,049 | 17,880 |
General and administrative | 308,611 | 256,013 | 852,480 | 619,786 |
Total Operating Expenses | 315,967 | 262,656 | 871,529 | 637,666 |
INCOME FROM OPERATIONS | 590,132 | 879,431 | 2,855,685 | 3,358,415 |
OTHER INCOME (EXPENSES): | ' | ' | ' | ' |
Interest income | 161 | 474 | 245 | 2,062 |
Other income (expense) | 1,919 | -246 | 1,302 | -607 |
Total Other Income (Expenses) | 2,080 | 228 | 1,547 | 1,455 |
NET INCOME | 592,212 | 879,659 | 2,857,232 | 3,359,870 |
COMPREHENSIVE INCOME: | ' | ' | ' | ' |
NET INCOME | 592,212 | 879,659 | 2,857,232 | 3,359,870 |
OTHER COMPREHENSIVE INCOME: | ' | ' | ' | ' |
Foreign currency translation adjustment | 180,344 | -59,359 | 777,867 | 108,308 |
COMPREHENSIVE INCOME | $772,556 | $820,300 | $3,635,099 | $3,468,178 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Basic | $0.01 | $0.02 | $0.06 | $0.07 |
Diluted | $0.01 | $0.02 | $0.06 | $0.07 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ' | ' | ' | ' |
Basic | 50,000,000 | 50,000,000 | 50,000,000 | 47,052,920 |
Diluted | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $2,857,232 | $3,359,870 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 147,782 | 158,502 |
Amortization of land use rights and yew forest assets | 271,580 | 259,221 |
Loss on disposal of fixed assets | 421 | ' |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -282,524 | -531,020 |
Accounts receivable - related party | -869,562 | ' |
Prepaid expenses and other assets | -33,635 | -13,812 |
Prepaid expenses - related parties | 20,789 | -67,361 |
Inventories | -594,434 | -2,335,370 |
Accounts payable | 3,357 | -451,897 |
Accrued expenses and other payables | -88,148 | -66,648 |
Due to related parties | 3,688 | 27,247 |
Taxes payable | -1,010 | 7,081 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,435,536 | 345,813 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of property and equipment | -217,604 | -208,524 |
Payments for land use rights and yew forest assets | -513,685 | -65,749 |
NET CASH USED IN INVESTING ACTIVITIES | -731,289 | -274,273 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Repayments for related parties advances | ' | -239,043 |
NET CASH USED IN FINANCING ACTIVITIES | ' | -239,043 |
EFFECT OF EXCHANGE RATE ON CASH | 18,957 | 2,930 |
NET INCREASE (DECREASE) IN CASH | 723,204 | -164,573 |
CASH - beginning of period | 386,821 | 732,371 |
CASH - end of period | 1,110,025 | 567,798 |
Cash paid for: | ' | ' |
Interest | ' | ' |
Income taxes | ' | ' |
Non-cash investing and financing activities | ' | ' |
Shares issued for refundable common stock subscription | ' | $950,000 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Basis of Presentation [Abstract] | ' | ||||||||
BASIS OF PRESENTATION | ' | ||||||||
NOTE 1 – BASIS OF PRESENTATION | |||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed consolidated balance sheet as of December 31, 2012 was derived from the audited consolidated financial statements of Yew Bio-Pharm Group, Inc. (individually “YBP” and collectively with its subsidiaries and operating variable interest entity, the “Company”). The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the summary of significant accounting policies and notes to consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2012. | |||||||||
In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of September 30, 2013, and the results of operations and cash flows for the nine-month period ended September 30, 2013 and 2012, have been made. | |||||||||
The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company continually evaluates its estimates, including those related to bad debts, inventories, recovery of long-lived assets, income taxes, and the valuation of equity transactions. The Company bases its estimates on historical experience and on various other assumptions that it believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. | |||||||||
Details of the Company’s subsidiaries and variable interest entities (“VIE”) are as follows: | |||||||||
Name | Domicile and date of incorporation | Registered capital | Effective ownership | Principal activities | |||||
Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”) | PRC | USD $ 100,000 | 100% | Holding company | |||||
29-Oct-09 | |||||||||
Yew Bio-Pharm Holdings Limited (“Yew Bio-Pharm (HK)”) | Hong Kong | HK$ 10,000 | 100% | Holding company of JSJ | |||||
29-Nov-10 | |||||||||
Harbin Yew Science and Technology Development Co., Ltd. (“HDS”) | PRC | RMB 45,000,000 | Contractual arrangements | Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings and potted yew trees; and the manufacture of yew tree wood handicrafts | |||||
22-Aug-96 | |||||||||
Principles_of_Consolidation
Principles of Consolidation | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Principles of Consolidation [Abstract] | ' | ||||||||
PRINCIPLES OF CONSOLIDATION | ' | ||||||||
NOTE 2 – PRINCIPLES OF CONSOLIDATION | |||||||||
The consolidated financial statements include the financial statements of YBP, its subsidiaries and operating VIE, in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated on consolidation. | |||||||||
Pursuant to a restructuring plan intended to ensure compliance with applicable PRC laws and regulations (the “Second Restructure”), on November 5, 2010, JSJ entered into a series of contractual arrangements (the “Contractual Arrangements”) with HDS and/or Zhiguo Wang, his wife Guifang Qi and Xingming Han (collectively with Mr. Wang and Madame Qi, the “HDS Shareholders”), as described below: | |||||||||
● | Exclusive Business Cooperation Agreement. Pursuant to the Exclusive Business Cooperation Agreement between JSJ and HDS (the “Business Cooperation Agreement”), JSJ has the exclusive right to provide to HDS general business operation services, including advice and strategic planning, as well as consulting services related to technology, research and development, human resources, marketing and other services deemed necessary (collectively, the “Services”). Under the Business Cooperation Agreement, JSJ has exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising out of or created during the performance of the Business Cooperation Agreement, including but not limited to copyrights, patents, patent applications, software and trade secrets. HDS shall pay to JSJ a monthly consulting service fee (the “Service Fee”) in RMB that is equal to 100% of the monthly net income of HDS. Upon the prior written consent by JSJ, the rate of Service Fee may be adjusted pursuant to the operational needs of HDS. Within 30 days after the end of each month, HDS shall (a) deliver to JSJ the management accounts and operating statistics of HDS for such month, including the net income of HDS during such month (the “Monthly Net Income”), and (b) pay 80% of such Monthly Net Income to JSJ (each such payment, a “Monthly Payment”). Within ninety (90) days after the end of each fiscal year, HDS shall (a) deliver to JSJ financial statements of HDS for such fiscal year, which shall be audited and certified by an independent certified public accountant approved by JSJ, and (b) pay an amount to JSJ equal to the shortfall, if any, of the aggregate net income of HDS for such fiscal year, as shown in such audited financial statements, as compared to the aggregate amount of the Monthly Payments paid by HDS to JSJ in such fiscal year. HDS also granted an irrevocable and exclusive option to JSJ to purchase any and all of the assets of HDS, to the extent permitted under PRC law, at the lowest price permitted by PRC law. Unless earlier terminated in accordance with the provisions of the Business Cooperation Agreement or other agreements separately executed between JSJ and HDS, the Business Cooperation Agreement is for a term of ten years and expires on November 5, 2020; however, the term of the Business Cooperation Agreement may be extended if confirmed in writing by JSJ prior to the expiration of the term thereof. The period of the extended term shall be determined exclusively by JSJ and HDS shall accept such extended term unconditionally. Unless JSJ commits gross negligence, or a fraudulent act, against HDS, HDS shall not terminate the Business Cooperation Agreement prior to the expiration of the term, including any extended term. Notwithstanding the foregoing, JSJ shall have the right to terminate the Business Cooperation Agreement at any time upon giving 30 days’ prior written notice to HDS. | ||||||||
● | Exclusive Option Agreement. Under an Exclusive Option Agreement among JSJ, HDS and each HDS Shareholder (individually, an “Option Agreement”), the terms of which are substantively identical to each other, each HDS Shareholder has granted JSJ or its designee the irrevocable and exclusive right to purchase, to the extent permitted under PRC law, all or any part of the HDS Shareholder’s equity interests in HDS (the “Equity Interest Purchase Option”) for RMB 10. If an appraisal is required by PRC laws at the time when and if JSJ exercises the Equity Interest Purchase Option, the parties shall negotiate in good faith and, based upon the appraisal, make a necessary adjustment to the purchase price so that it complies with any and all then applicable PRC laws. Without the consent of JSJ, the HDS Shareholders shall not sell, transfer, mortgage or dispose of their respective shares of HDS stock. Additionally, without the prior consent of JSJ, the HDS Shareholders shall not in any manner supplement, change or amend the articles of association and bylaws of HDS, increase or decrease its registered capital, change the structure of its registered capital in any other manner, or engage in any transactions that could materially affect HDS’ assets, liabilities, rights or operations, including, without limitation, the incurrence or assumption of any indebtedness except incurred in the ordinary course of business, execute any major contract over RMB 500,000, sell or purchase any assets or rights, incur of any encumbrance on any of its assets or intellectual property rights in favor of a third party or transfer of any agreements relating to its business operation to any third party. The term of each Option Agreement is ten years commencing on November 5, 2020 and may be extended at the sole election of JSJ. | ||||||||
● | Equity Interest Pledge Agreement. In order to guarantee HDS’s performance of its obligations under the Business Cooperation Agreement, each HDS Shareholder, JSJ and HDS entered into an Equity Interest Pledge Agreement (individually, a “Pledge Agreement”), the terms of which are substantially similar to each other. Pursuant to the Pledge Agreement, each HDS Shareholder pledged all of his or her equity interest in HDS to JSJ. If HDS or the HDS Shareholders breach their respective contractual obligations and such breach is not remedied to the satisfaction of JSJ within 20 days after the giving of notice of breach, JSJ, as pledgee, will be entitled to exercise certain rights, including the right to foreclose upon and sell the pledged equity interests. During the term of the Pledge Agreement, the HDS Shareholder shall not transfer his or her equity interest in HDS or place or otherwise permit any other security interest of other encumbrance to be placed on such equity interest. Upon the full payment of the Service Fee under the Business Cooperation Agreement and upon the termination of HDS’s obligations thereunder, the Pledge Agreement shall be terminated. | ||||||||
● | Power of Attorney. Under the Power of Attorney executed by each HDS Shareholder (each, a “Power of Attorney”), the terms of which are substantially similar to each other, JSJ has been granted an exclusive, irrevocable power of attorney to take actions in the place and stead of the HDS Shareholders, to act on behalf of the HDS Shareholder as his or her exclusive agent and attorney with respect to all matters concerning the HDS Shareholder’s equity interests in HDS, including without limitation, the right to: 1) attend shareholders’ meetings of HDS; 2) exercise all the HDS Shareholders’ rights, including voting rights under PRC laws and HDS’s Articles of Association, including but not limited to the sale or transfer or pledge or disposition of the HDS Shareholder’s equity interests in HDS in whole or in part; and 3) designate and appoint on behalf of the HDS Shareholders the legal representative, executive director, supervisor, manager and other senior management of HDS. | ||||||||
To the extent that the Contractual Arrangements are enforceable under PRC law, as from time to time interpreted by relevant state agencies, they constitute the valid and binding obligations of each of the parties to each such agreement. | |||||||||
The Company believes that HDS is considered a VIE under ASC 810 “Consolidation”, because the equity investors in HDS no longer have the characteristics of a controlling financial interest, and the Company, through JSJ, is the primary beneficiary of HDS and controls HDS’s operations. Accordingly, HDS has been consolidated as a deemed subsidiary into YBP as a reporting company under ASC 810. | |||||||||
As required by ASC 810-10, the Company performs a qualitative assessment to determine whether the Company is the primary beneficiary of HDS which is identified as a VIE of the Company. A quality assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities including terms of the contracts entered into by the entity, ownership interests issued by the entity and the parties involved in the design of the entity. The Company’s assessment on the involvement with HDS reveals that the Company has the absolute power to direct the most significant activities that impact the economic performance of HDS. JSJ is obligated to absorb a majority of the risk of loss from HDS activities and entitles JSJ to receive a majority of HDS’s expected residual returns. In addition, HDS’s shareholders have pledged their equity interest in HDS to JSJ, irrevocably granted JSJ an exclusive option to purchase, to the extent permitted under PRC Law, all or part of the equity interests in HDS and agreed to entrust all the rights to exercise their voting power to the person(s) appointed by JSJ. Under the accounting guidance, the Company is deemed to be the primary beneficiary of HDS and the results of HDS are consolidated in the Company’s consolidated financial statements for financial reporting purposes. Accordingly, as a VIE, HDS’s sales are included in the Company’s total sales, its income from operations is consolidated with the Company’s and the Company’s net income includes all of HDS’s net income. The Company does not have any non-controlling interest and, accordingly, did not subtract any net income in calculating the net income attributable to the Company. Because of the Contractual Arrangements, YBP has a pecuniary interest in HDS that requires consolidation of HDS’s financial statements with those of the Company. | |||||||||
Additionally, pursuant to ASC 805, as YBP and HDS are under the common control of the HDS Shareholders, the Second Restructure was accounted for in a manner similar to a pooling of interests. As a result, the Company’s historical amounts in the accompanying consolidated financial statements give retrospective effect to the Second Restructure, whereby the assets and liabilities of the Company are reflected at the historical carrying values and their operations are presented as if they were consolidated for all periods presented, with the results of the Company being consolidated from the date of the Second Transfer Agreement. The accounts of HDS are consolidated in the accompanying financial statements. | |||||||||
As of September 30, 2013, JSJ has agreed to waive all management fees to be payable by HDS and the Company expects to waive such management fees in the near future due to a need of working capital in HDS to expand HDS’s operations. | |||||||||
The Company is principally engaged in (1) processing and selling yew raw materials used in the manufacture of traditional Chinese medicine (“TCM”); (2) growing and selling yew tree seedlings and mature trees, including potted miniature yew trees; and (3) manufacturing and selling furniture and handicrafts made of yew tree timber. The Company is located in Harbin, Heilongjiang Province, China. | |||||||||
YBP has no direct or indirect legal or equity ownership interest in HDS. However, through the Contractual Arrangements, the stockholders of HDS have assigned all their rights as stockholders, including voting rights and disposition rights of their equity interests in HDS to JSJ, our indirect, wholly-owned subsidiary. YBP is deemed to be the primary beneficiary of HDS and the financial statements of HDS are consolidated in the Company’s consolidated financial statements. At September 30, 2013 and December 31, 2012, the carrying amount and classification of the assets and liabilities in the Company’s balance sheets that relate to the Company’s variable interest in the VIE was as follows: | |||||||||
Assets | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
Cash | $ | 1,091,749 | $ | 343,990 | |||||
Accounts receivable | 1,027,690 | 722,598 | |||||||
Accounts receivable – related party | 1,172,091 | 284,986 | |||||||
Inventories (current and long-term) | 11,480,650 | 10,373,398 | |||||||
Prepaid expenses and other assets | 34,018 | - | |||||||
Prepaid expenses - related parties | 39,613 | 57,870 | |||||||
Property and equipment, net | 903,235 | 790,563 | |||||||
Land use rights and yew forest assets, net | 15,755,289 | 15,328,318 | |||||||
Total assets of VIE | $ | 31,504,335 | $ | 27,901,723 | |||||
Liabilities | |||||||||
Accounts payable | $ | 4,411 | $ | 990 | |||||
Accrued expenses and other payables | 70,687 | 79,981 | |||||||
Taxes payable | 3,813 | 6,305 | |||||||
Due to YBP and JSJ | 1,706,144 | 1,939,720 | |||||||
Due to related parties | 5,682 | 1,900 | |||||||
Total liabilities of VIE | $ | 1,790,737 | $ | 2,028,896 | |||||
The assets and liabilities in the table above are held in HDS, the VIE. The creditors of HDS have legal recourse only to the assets of HDS and do not have such recourse to the Company. In addition, HDS’ assets are generally restricted only to pay such liabilities. Thus, the Company’s maximum legal exposure to loss related to the VIE is significantly less than the carrying value of the HDS assets due to outstanding intercompany liabilities. Restricted net assets of the VIE shall mean that amount of our proportionate share of net assets of HDS (after intercompany eliminations) which as of the end of the most recent fiscal year and most recent reporting balance sheet date may not be transferred to the parent company by the VIE in the form of loans, advances or cash dividends without the consent of a third party (e.g. lender, regulatory agency, foreign government). | |||||||||
Reclassifications | |||||||||
Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on the previously reported financial position, results of operations and cash flows. |
Inventories
Inventories | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Inventories [Abstract] | ' | ||||||||||||||||||||||||
INVENTORIES | ' | ||||||||||||||||||||||||
NOTE 3 – INVENTORIES | |||||||||||||||||||||||||
Inventories consisted of raw materials, work-in-progress, finished goods-handicrafts, yew seedlings and other trees (consisting of larix, spruce and poplar trees). The Company classifies its inventories based on its historical and anticipated levels of sales; any inventory in excess of its normal operating cycle of one year is classified as long-term on its consolidated balance sheets. As of September 30, 2013 and December 31, 2012, inventories consisted of the following: | |||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Current portion | Long-term portion | Total | Current portion | Long-term portion | Total | ||||||||||||||||||||
Raw materials | $ | 354,500 | $ | 2,742,112 | $ | 3,096,612 | $ | 284,628 | $ | 2,734,896 | $ | 3,019,524 | |||||||||||||
Work-in-process | 88,749 | - | 88,749 | 22,523 | - | 22,523 | |||||||||||||||||||
Finished goods - handicrafts | 196,647 | 626,737 | 823,384 | 153,578 | 695,426 | 849,004 | |||||||||||||||||||
Yew seedlings | 796,715 | 3,527,843 | 4,324,558 | 530,505 | 3,622,991 | 4,153,496 | |||||||||||||||||||
Other trees | 11,369 | 3,135,977 | 3,147,346 | - | 2,328,851 | 2,328,851 | |||||||||||||||||||
Total | $ | 1,447,980 | $ | 10,032,669 | $ | 11,480,649 | $ | 991,234 | $ | 9,382,164 | $ | 10,373,398 | |||||||||||||
Taxes
Taxes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Taxes [Abstract] | ' | ||||||||||||||||
TAXES | ' | ||||||||||||||||
NOTE 4 – TAXES | |||||||||||||||||
(a) Federal Income Tax and Enterprise Income Taxes | |||||||||||||||||
The Company is registered in the State of Nevada and is subject to the United States federal income tax at a tax rate of 34%. No provision for income taxes in the U.S. has been made as the Company had no U.S. taxable income as of September 30, 2013 and December 31, 2012. | |||||||||||||||||
The Company’s subsidiary and VIE, JSJ and HDS, respectively, being incorporated in the PRC, are subject to PRC’s Enterprise Income Tax. Pursuant to the PRC Income Tax Laws, Enterprise Income Taxes (“EIT”) is generally imposed at 25%. | |||||||||||||||||
The table below summarizes the difference between the U.S. statutory federal tax rate and the Company’s effective tax rate for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
U.S. federal income tax rate | 34 | % | 34 | % | |||||||||||||
Foreign income not recognized in the U.S. | (34 | %) | (34 | %) | |||||||||||||
PRC EIT rate | 25 | % | 25 | % | |||||||||||||
PRC tax exemption and reduction | (25 | %) | (25 | %) | |||||||||||||
Total provision for income taxes | - | - | |||||||||||||||
Income before income tax expenses of $592,212 and $879,659 for the three months ended September 30, 2013 and 2012, respectively, and $2,857,232 and $3,359,870 for the nine months ended September 30, 2013 and 2012, respectively, was attributed to subsidiaries with operations in China. HDS and JSJ recorded no income tax expense for the nine months ended September 30, 2013 and 2012 due to the fact that HDS has been granted a tax exemption and has loss carry-forwards from previous years to offset income tax liability generated for handicraft sales and JSJ has been incurring net losses. | |||||||||||||||||
The combined effects of the income tax expense exemptions and tax reductions available to the Company for the three and nine months ended September 30, 2013 and 2012 are as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Tax exemption effect | $ | 156,812 | $ | 252,051 | $ | 778,923 | $ | 904,032 | |||||||||
Tax reduction due to loss carry-forward | - | 3,851 | - | 5,516 | |||||||||||||
Gain (loss) not subject to income tax | 1,786 | (1,041 | ) | (3,883 | ) | (3,186 | ) | ||||||||||
Basic net income per share effect | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | |||||
Diluted net income per share effect | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | |||||
The deferred income tax assets or liabilities calculated pursuant to the EIT is not material due to the fact that the Company has been granted EIT exemption with respect to its yew raw materials and yew tree segments and is only subject to tax under the EIT for its handicrafts segment, which only represents a small portion of net revenues. | |||||||||||||||||
The Company has incurred net operating loss for income tax purposes for the three and nine months ended September 30, 2013 and 2012. The net operating loss carry-forwards for U.S. income tax purposes amounted to $1,205,716 and $962,787 at September 30, 2013 and December 31, 2012, respectively, which may be available to reduce future years’ taxable income. These carry forwards will expire, if not utilized, through 2033. Management believes that the realization of the benefits arising from this loss appear to be uncertain due to the Company’s limited operating history and continuing losses for United States income tax purposes. Accordingly, the Company has provided a 100% valuation allowance on the deferred tax asset to reduce the asset to zero at September 30, 2013 and December 31, 2012. The valuation allowance at September 30, 2013 and December 31, 2012 was $409,943 and $327,348, respectively. The net change in the valuation allowance was an increase of $14,340 and $47,527 during the three months ended September 30, 2013 and 2012, respectively. The net change in the valuation allowance was an increase of $82,595 and $90,297 during the nine months ended September 30, 2013 and 2012, respectively, and management will review this valuation allowance periodically and make adjustments as necessary. | |||||||||||||||||
Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for income tax and financial reporting purposes. Temporary differences, which give rise to a net deferred tax asset for the Company as of September 30, 2013 and December 31, 2012, are as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
U.S. tax benefit of net operating loss carry forward | $ | 409,943 | $ | 327,348 | |||||||||||||
Valuation allowance | (409,943 | ) | (327,348 | ) | |||||||||||||
Net deferred tax assets | $ | - | $ | - | |||||||||||||
For U.S. income tax purposes, the Company has cumulative undistributed earnings of foreign subsidiary and VIE of approximately $19.2 million and $16.4 million as of September 30, 2013 and December 31, 2012, respectively, which are included in consolidated retained earnings and will continue to be indefinitely reinvested in overseas operations. Accordingly, no provision has been made for U.S. deferred taxes related to future repatriation of these earnings, nor is it practicable to estimate the amount of income taxes that would have to be provided if we concluded that such earnings will be remitted to the U.S. in the future. | |||||||||||||||||
The Company did not have uncertainty tax positions or events leading to uncertainty tax position within the next 12 months. The Company’s 2010, 2011 and 2012 U.S. corporation income tax returns are subject to Internal Revenue Service examination. The Company’s 2009, 2010, 2011 and 2012 China corporate income tax returns are subject to China State Administration of Taxation examination. | |||||||||||||||||
(b) Value Added Taxes (“VAT”) | |||||||||||||||||
The applicable VAT tax rate is 13% for agricultural products and 17% for handicrafts sold in the PRC. In accordance with VAT regulations in the PRC, the Company is exempt from paying VAT on its yew raw materials and yew trees sales as an agricultural corps cultivating company up to December 31, 2016. VAT payable in the PRC is charged on an aggregated basis at the applicable rate on the full price collected for the goods sold or taxable services provided and less any deductible VAT already paid by the taxpayer on purchases of goods in the same fiscal year. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||||||||||||
STOCKHOLDERS' EQUITY | ' | ||||||||||||||||||||||
NOTE 5 – STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||
On December 13, 2012, the Company’s shareholders approved the issuance of stock purchase options (“Founders’ Options”) to the Company’s directors/officers (collectively, the “Founders”) and the Company issued the Founders’ Options to the Founders following such approval. The terms of each Founder’s Option are identical to each other except for the name of the optionee and the number of shares of the Company’s common stock subject to each Founder’s Option. The principal terms of the Founders’ Options include the following: | |||||||||||||||||||||||
● | Each Founder’s Option is fully vested upon issuance; | ||||||||||||||||||||||
● | Each Founder’s Option is exercisable for a period of five years from the date of issuance; | ||||||||||||||||||||||
● | Each Founder’s Option is exercisable at $0.22 per share; and | ||||||||||||||||||||||
● | Each Founder’s Option has a cashless exercise feature, pursuant to which, at the optionee’s election, he or she may choose to deliver previously-owned shares of YBP common stock in payment of the exercise price or not pay the exercise price of the Founder’s Option and receive instead a reduced number of shares of YBP common stock reflecting the value of the number of shares of YBP common stock equal to the difference, if any, between the aggregate fair market value of the shares issuable upon exercise of the Founder’s Option and the exercise price of the Founder’s Option. | ||||||||||||||||||||||
The number of shares of the Company’s common stock subject to each Founder’s Option is as follows: | |||||||||||||||||||||||
Name of Optionee | Number of Shares | ||||||||||||||||||||||
Subject to Founder's | |||||||||||||||||||||||
Option | |||||||||||||||||||||||
Zhiguo Wang | 20,103,475 | ||||||||||||||||||||||
Guifang Qi | 2,488,737 | ||||||||||||||||||||||
Xingming Han | 213,300 | ||||||||||||||||||||||
Total | 22,805,512 | ||||||||||||||||||||||
There were no stock warrants issued, terminated/forfeited and exercised during the nine months ended September 30, 2013. | |||||||||||||||||||||||
The following table summarizes the shares of the Company's common stock issuable upon exercise of options outstanding at September 30, 2013: | |||||||||||||||||||||||
Stock Options Outstanding | Stock Options Exercisable | ||||||||||||||||||||||
Range of | Number | Weighted Average | Weighted | Number | Weighted | ||||||||||||||||||
Exercise Price | Outstanding at | Remaining | Average | Exercisable at | Average | ||||||||||||||||||
September 30, | Contractual Life | Exercise Price | September 30, | Exercise Price | |||||||||||||||||||
2013 | (Years) | 2013 | |||||||||||||||||||||
$ | 0.22 | 22,805,512 | 4.2 | $ | 0.22 | 22,805,512 | $ | 0.22 | |||||||||||||||
The intrinsic value of options at September 30, 2013 is zero since the estimated market value of the Company’s common stock as of September 30, 2013 is lower than the exercise price of the options. | |||||||||||||||||||||||
Earnings_per_Share
Earnings per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||||||
NOTE 6 – EARNINGS PER SHARE | |||||||||||||||||
ASC 260 “Earnings per Share,” requires dual presentation of basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. | |||||||||||||||||
Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted income per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. Potentially dilutive common shares consist of common shares issuable upon the confirmation of subscriptions for shares and common stock options (using the treasury stock method). | |||||||||||||||||
The following table presents a reconciliation of basic and diluted net income per share for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income available to common stockholders for basic and diluted net income per share of common stock | $ | 592,212 | $ | 879,659 | $ | 2,857,232 | $ | 3,359,870 | |||||||||
Weighted average common stock outstanding – basic | 50,000,000 | 50,000,000 | 50,000,000 | 47,052,920 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Subscribed common shares issuable | - | - | - | 2,947,080 | |||||||||||||
Stock options issued to directors/officers | - | - | - | - | |||||||||||||
Weighted average common stock outstanding – diluted | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||||||
Net income per common share – basic | $ | 0.01 | $ | 0.02 | $ | 0.06 | $ | 0.07 | |||||||||
Net income per common share – diluted | $ | 0.01 | $ | 0.02 | $ | 0.06 | $ | 0.07 | |||||||||
The Company's aggregate common stock equivalents at September 30, 2013 and December 31, 2012 included the following: | |||||||||||||||||
September 30, | 31-Dec-12 | ||||||||||||||||
2013 | |||||||||||||||||
Stock options | 22,805,512 | 22,805,512 | |||||||||||||||
Total | 22,805,512 | 22,805,512 | |||||||||||||||
Concentrations_of_Credit_Risk_
Concentrations of Credit Risk and Major Customers | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Concentrations of Credit Risk and Major Customers [Abstract] | ' | |||||||||
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | ' | |||||||||
NOTE 7 – CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | ||||||||||
Customers | ||||||||||
For the three and nine months ended September 30, 2013 and 2012, customers accounting for 10% or more of the Company’s revenue were as follows: | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
Customer | 2013 | 2012 | 2013 | 2012 | ||||||
A | 16 | % | 20 | % | 10 | % | 16 | % | ||
B | * | * | * | 13 | % | |||||
C | * | 13 | % | * | 14 | % | ||||
D | * | 17 | % | * | 14 | % | ||||
E | * | * | * | 11 | % | |||||
F | * | * | 24 | % | * | |||||
G (Yew Pharmaceutical, a related party) | * | 32 | % | 26 | % | 12 | % | |||
* | Less than 10% | |||||||||
The three largest customers accounted for 88.6% of the Company’s total outstanding accounts receivable at September 30, 2013, of which Yew Pharmaceutical, a related party, accounted for 53.3%. Three customers accounted for 100% of the Company’s total outstanding accounts receivable at December 31, 2012, of which Yew Pharmaceutical accounted for 28.3%. | ||||||||||
Suppliers | ||||||||||
For the three and nine months ended September 30, 2013 and 2012, suppliers accounting for 10% or more of the Company’s purchase were as follows: | ||||||||||
Three Months Ended September 30, | Nine Months Ended | |||||||||
September 30, | ||||||||||
Supplier | 2013 | 2012 | 2013 | 2012 | ||||||
A | * | * | 62 | % | * | |||||
B | * | * | 38 | % | * | |||||
C | * | 100 | % | * | 95 | % | ||||
* | Less than 10% | |||||||||
For the three months ended September 30, 2013, the Company did not make any significant purchases. For the nine months ended September 30, 2013, two suppliers accounted for 100% of the Company’s purchases and the Company did not have any payable with these suppliers at September 30, 2013. | ||||||||||
For the three and nine months ended September 30, 2012, the Company did not make any purchases of yew seedlings. In connection with an agreement to acquire a land use right in July 2012 (the “Fuye Field Agreement”), the Company acquired more than 80,000 trees - which are not yew trees - for approximately $2.2 million (the amount was included in the land use right agreement as part of the purchase price) from an individual. For the three and nine months ended September 30, 2012, this purchase accounted for 100% and 95%, respectively, of the Company’s purchase of yew seedlings and other trees and a third party supplier accounted for 100% of the Company’s accounts payable at December 31, 2012. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
RELATED PARTY TRANSACTIONS | ' | ||||||||||||||||
NOTE 8 – RELATED PARTY TRANSACTIONS | |||||||||||||||||
The Company conducted transactions with certain of the Company’s officers and directors, as well as with the following related parties: | |||||||||||||||||
Company | Ownership | ||||||||||||||||
Heilongjiang Zishan Technology Stock Co., Ltd. (“ZTC”) | 18% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., 39% owned by Zhiguo Wang, Chairman and Chief Executive Officer, 31% owned by Guifang Qi, the wife of Mr. Wang and Director of the Company, and 12% owned by third parties. | ||||||||||||||||
Heilongjiang Yew Pharmaceuticals, Co., Ltd. (“Yew Pharmaceutical”) | 95% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 5% owned by Madame Qi. | ||||||||||||||||
Shanghai Kairun Bio-Pharmaceutical Co., Ltd. (“Kairun”) | 60% owned by Heilongjiang Zishan Technology Co., Ltd., 20% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 20% owned by Mr. Wang. | ||||||||||||||||
Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd. (“HEFS”) | 63% owned by Mr. Wang, 34% owned by Madame Qi, and 3% owned by third parties. | ||||||||||||||||
Cooperation and Development Agreement and Revenues from Related Party | |||||||||||||||||
On January 9, 2010, the Company entered into a Cooperation and Development Agreement (the “Development Agreement”) with Yew Pharmaceutical. Pursuant to the Development Agreement, for a period of ten years expiring on January 9, 2020, the Company shall supply cultivated yew raw materials to Yew Pharmaceutical, which will be used by Yew Pharmaceutical to make traditional Chinese medicines and other pharmaceutical products, at a price of RMB 1,000,000 (approximately $161,000) per metric ton. | |||||||||||||||||
For the three months ended September 30, 2013 and 2012, sales to Yew Pharmaceutical under the Development Agreement amounted to $88,706 and $442,467, respectively. For the nine months ended September 30, 2013 and 2012, sales to Yew Pharmaceutical under the Development Agreement amounted to $1,409,141 and $600,556, respectively. Additionally, for the three months ended September 30, 2013 and 2012, the Company did not record any revenue from the sale of yew handicrafts to Yew Pharmaceutical. For the nine months ended September 30, 2013 and 2012, the Company recorded revenues from the sale of yew handicrafts to Yew Pharmaceutical of $0 and $1,603, respectively. In summary, for the three and nine months ended September 30, 2013 and 2012, the Company recorded revenues from the following related party: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Name of related party | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Yew Pharmaceutical | $ | 88,706 | $ | 442,467 | $ | 1,409,141 | $ | 602,159 | |||||||||
Total | $ | 88,706 | $ | 442,467 | $ | 1,409,141 | $ | 602,159 | |||||||||
At September 30, 2013 and December 31, 2012, the Company had accounts receivable from Yew Pharmaceutical of $1,172,091 and $284,986, respectively, which was included in accounts receivable–related party on the accompanying consolidated balance sheets. | |||||||||||||||||
Purchases | |||||||||||||||||
For the three and nine months ended September 30, 2013 and 2012, the Company did not make any material purchases from its related party companies. | |||||||||||||||||
Operating Leases | |||||||||||||||||
On March 25, 2005, the Company entered into an Agreement for the Lease of Seedling Land with ZTC (the “ZTC Lease”). Pursuant to the ZTC Lease, the Company leases 361 mu (approximately 60 acres) of land from ZTC for a period of 30 years, expiring on March 24, 2035. Annual payments under the ZTC Lease are RMB 162,450 (approximately $26,000). The payment for the first five years of the ZTC Lease was due prior to December 31, 2010 and beginning in 2011, the Company is required to make full payment for the land use rights in advance for each subsequent five-year period. For the three months ended September 30, 2013 and 2012, rent expense related to the ZTC Lease amounted to $6,583 and $6,414, respectively. For the nine months ended September 30, 2013 and 2012, rent expense related to the ZTC Lease amounted to $19,583 and $19,255, respectively. At September 30, 2013 and December 31, 2012, prepaid rent to ZTC amounted to $39,613 and $57,870, respectively, which was included in prepaid expenses–related parties on the accompanying consolidated balance sheets. | |||||||||||||||||
On December 3, 2008, the Company entered into a lease for retail space in Harbin with Madame Qi (the “Store Lease”). Pursuant to the Store Lease, no payment was due for the first year and an annual payment of RMB 12,000 (approximately $2,000) is due for each of the second and third years thereof. The term of the Store Lease was three years and it expired on December 3, 2011. On November 15, 2011, the Company renewed the Store Lease. Pursuant to the renewed Store Lease, the annual rent is RMB 15,600 (approximately $2,500) and the annual payment is due by May 30 of each year. The term of the renewed Store Lease is 3 years and expires on December 1, 2014. For the three months ended September 30, 2013 and 2012, rent expense related to the Store Lease amounted to $633 and $616, respectively. For the nine months ended September 30, 2013 and 2012, rent expense related to the Store Lease amounted to $1,881 and $1,849, respectively. Since December 2012, the premises subject to the Store Lease have been used as warehouse and exhibition space rather than retail space. | |||||||||||||||||
On January 1, 2010, the Company entered into a lease for office space with Mr. Wang (the “Office Lease”). Pursuant to the Office Lease, annual payments of RMB 15,000 (approximately $2,400) are due for each year of the term. The term of the Office Lease is 15 years and expires on December 31, 2025. For the three months ended September 30, 2013 and 2012, rent expense related to the Office Lease amounted $608 and $592, respectively. For the nine months ended September 30, 2013 and 2012, rent expense related to the Office Lease amounted $1,808 and $1,778, respectively. | |||||||||||||||||
On July 1, 2012, JSJ entered into a lease for office space with Mr. Wang (the “JSJ Lease”). Pursuant to the JSJ Lease, JSJ leases approximately 320 square feet of office space from Mr. Wang in Harbin. Rent under the JSJ Lease is RMB 10,000 (approximately $1,600) annually. The term of the JSJ Lease is three years and expires on June 30, 2015. For the three months ended September 30, 2013 and 2012, rent expense related to the JSJ Lease amounted to $405 and $395, respectively. For the nine months ended September 30, 2013 and 2012, rent expense related to the JSJ Lease amounted to $1,205 and $395, respectively. At September 30, 2013 and December 31, 2012, prepaid rent to Mr. Wang amounted to $1,219 and $2,375, respectively, which was included in prepaid expenses-related parties on the accompanying consolidated balance sheets. | |||||||||||||||||
The principal executive offices of YBP are located at 294 Powerbilt Avenue, Las Vegas, Nevada, a property owned by the Company’s President, Zhiguo Wang, which he provides rent-free to the Company. However, the Company pays utilities, property insurance, real estate tax, association dues and certain other expenses on the property to third parties, which, in the three months ended September 30, 2013 and 2012, aggregated approximately $3,762 and $3,684, respectively, and in the nine months ended September 30, 2013 and 2012, aggregated approximately $11,112 and $8,754, respectively. The space provided by Mr. Wang to use as principal executive offices is less than 500 square feet and a significant portion of the property is used by Mr. Wang for his personal use. The Company estimates that the market value of a gross and full service lease for an equivalent executive office rent in the same geographic area is approximately $800 to $1,000 per month. The landlord of a gross and full service lease typically would be responsible for paying utilities, property tax and insurance and other expenses associated with maintaining the property. However, the Company pays these expenses, as well as association dues, on behalf of Mr. Wang, to third parties in lieu of making rent payments. The Company believes that the difference between the annual market rent for the space used by the Company and the amount of $3,762 and $3,684 for the three months ended September 30, 2013 and 2012, respectively, and the amount of $11,112 and $8,754 for the nine months ended September 30, 2013 and 2012, respectively, that the Company paid to third parties for expenses related to the property in the three and nine months ended September 30, 2013 and 2012, is not material. | |||||||||||||||||
At September 30, 2013 and December 31, 2012, the total prepaid rent for the above operating leases with related parties amounted to $40,832 and $60,245, respectively, which amount was included in prepaid expenses-related parties on the accompanying consolidated balance sheets. | |||||||||||||||||
Amounts Due to Related Parties | |||||||||||||||||
Certain of the Company’s officers and directors, from time to time, have provided advances to the Company for working capital purpose. These advances are short-term in nature, non-interest bearing, unsecured and payable on demand. The due to related parties amount at September 30, 2013 and December 31, 2012 was as follows: | |||||||||||||||||
Name of related parties | 30-Sep-13 | 31-Dec-12 | |||||||||||||||
Zhiguo Wang | $ | 47,804 | $ | 45,976 | |||||||||||||
Guifang Qi | 3,853 | 1,900 | |||||||||||||||
Total | $ | 51,657 | $ | 47,876 | |||||||||||||
Research and Development Agreement | |||||||||||||||||
The Company entered into a Technology Development Service Agreement dated January 1, 2010 (the “Technology Agreement”) with Kairun. The term of the Technology Agreement was initially two years. Under the Technology Agreement, Kairun provides the Company with testing and technologies regarding utilization of yew trees to extract taxol and develop higher concentration of taxol in the yew trees the Company grow and cultivate. For these services, the Company agreed to pay Kairun RMB 200,000 (approximately $32,000) after the technologies developed by Kairun are tested and approved by the Company. The Company will retain all intellectual property rights in connection with the technologies developed by Kairun. Kairun may not provide similar services to any other party without the Company’s prior written consent. In February 2012, the Company entered into a supplemental agreement with Kairun, extending the term of the Technology Agreement indefinitely until project results specified in the original Technology Agreement have been achieved. Kairun is owned directly and indirectly primarily by Mr. Wang and Madame Qi. As of September 30, 2013, Kairun has not yet completed the services provided for in the Technology Agreement and, therefore, no payment was made to Kairun. |
Statutory_Reserves
Statutory Reserves | 9 Months Ended |
Sep. 30, 2013 | |
Statutory Reserves [Abstract] | ' |
STATUTORY RESERVES | ' |
NOTE 9 – STATUTORY RESERVES | |
The Company is required to make appropriations to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriation to the statutory surplus reserve is required to be at least 10% of the after tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities’ registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. | |
The statutory surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital. For the three months ended September 30, 2013 and 2012, the Company appropriated to statutory reserve the amount of $63,772 and $102,361, respectively. For the nine months ended September 30, 2013 and 2012, the Company appropriated to statutory reserve the amount of $311,256 and $363,819, respectively. The accumulated balance of the statutory reserve of the Company as of September 30, 2013 and December 31, 2012 was $2,490,750 and $2,179,494, respectively. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||
NOTE 10 – SEGMENT INFORMATION | |||||||||||||||||
ASC 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. | |||||||||||||||||
During the three and nine months ended September 30, 2013 and 2012, the Company operated in three reportable business segments: (1) the TCM raw materials segment, consisting of the production and sale of yew raw materials used in the manufacture of TCM; (2) the yew tree segment, consisting of the growth and sale of yew tree seedlings and mature trees, including potted miniature yew trees; and (3) the handicrafts segment, consisting of the manufacture and sale of handicrafts and furniture made of yew timber. The Company’s reportable segments are strategic business units that offer different products. They are managed separately based on the fundamental differences in their operations. All of the Company’s operations are conducted in the PRC. | |||||||||||||||||
Information with respect to these reportable business segments for the three and nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues: | |||||||||||||||||
TCM raw materials | $ | 1,005,323 | $ | 893,909 | $ | 3,171,814 | $ | 2,860,552 | |||||||||
Yew trees | 448,810 | 396,416 | 2,102,417 | 1,853,504 | |||||||||||||
Handicrafts | 90,194 | 82,699 | 175,402 | 118,734 | |||||||||||||
1,544,327 | 1,373,024 | 5,449,633 | 4,832,790 | ||||||||||||||
Cost of revenues: | |||||||||||||||||
TCM raw materials | 226,616 | 158,354 | 841,667 | 446,436 | |||||||||||||
Yew trees | 348,040 | 21,395 | 753,718 | 320,410 | |||||||||||||
Handicrafts | 63,572 | 51,188 | 127,034 | 69,863 | |||||||||||||
638,228 | 230,937 | 1,722,419 | 836,709 | ||||||||||||||
Depreciation and amortization | |||||||||||||||||
TCM raw materials | 92,764 | 84,334 | 271,581 | 253,157 | |||||||||||||
Yew trees | 8,723 | 14,573 | 25,949 | 41,638 | |||||||||||||
Handicrafts | 7,795 | 7,428 | 23,358 | 23,532 | |||||||||||||
Other | 28,309 | 36,017 | 98,474 | 99,396 | |||||||||||||
137,591 | 142,352 | 419,362 | 417,723 | ||||||||||||||
Net income (loss) | |||||||||||||||||
TCM raw materials | 778,707 | 735,555 | 2,330,147 | 2,414,116 | |||||||||||||
Yew trees | 100,770 | 375,021 | 1,348,699 | 1,533,094 | |||||||||||||
Handicrafts | 26,622 | 31,511 | 48,368 | 48,871 | |||||||||||||
Other | (313,887 | ) | (262,428 | ) | (869,982 | ) | (636,211 | ) | |||||||||
$ | 592,212 | $ | 879,659 | $ | 2,857,232 | $ | 3,359,870 | ||||||||||
Information with respect to identifiable long-lived assets, net, as of September 30, 2013 and December 31, 2012 was as follows: | |||||||||||||||||
September 30, | 31-Dec-12 | ||||||||||||||||
2013 | |||||||||||||||||
TCM raw materials | $ | 15,755,289 | $ | 14,983,045 | |||||||||||||
Yew trees | 3,900,951 | 4,357,203 | |||||||||||||||
Handicrafts | 913,414 | 817,917 | |||||||||||||||
Other | 6,196,128 | 5,438,286 | |||||||||||||||
$ | 26,765,782 | $ | 25,596,451 | ||||||||||||||
Information with respect to expenditures for segment assets for the nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
TCM raw materials | $ | 513,685 | $ | 65,749 | |||||||||||||
Yew trees | 183,235 | 83,098 | |||||||||||||||
Handicrafts | - | - | |||||||||||||||
Other | 34,369 | 125,426 | |||||||||||||||
$ | 731,289 | $ | 274,273 | ||||||||||||||
The Company does not allocate any selling, general and administrative expenses, other income/expenses to its reportable segments because these activities are managed at a corporate level. In addition, the specified amounts for interest expense and income tax expense are not included in the measure of segment profit or loss reviewed by the chief operating decision maker and these specified amounts are not regularly provided to the chief operating decision maker. Therefore, the Company has not disclosed interest expense and income tax expense for each reportable segment. | |||||||||||||||||
Asset information by reportable segment is not reported to or reviewed by the chief operating decision maker and, therefore, the Company has not disclosed asset information for each reportable segment. The Company’s operations are located in the PRC. All revenues are derived from customers in the PRC. All of the Company’s operating assets are located in the PRC. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Recent Accounting Pronouncements [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
NOTE 11 – RECENT ACCOUNTING PRONOUNCEMENTS | |
In March 2013, the FASB issued ASU 2013-05 “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 addresses the accounting for the cumulative translation adjustment when a parent either sells part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. For public entities, the ASU is effective prospectively for fiscal years, and interim periods, within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU 2013-05 is not expected to have a material impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. These amendments provide that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on the Company’s consolidated financial statements. | |
Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 12 - SUBSEQUENT EVENTS | |
The Company has evaluated all other subsequent events through November 12, 2013, the date these consolidated financial statements were issued, and determined that there were no other subsequent events or transactions that require recognition or disclosures in the financial statements. |
Principles_of_Consolidation_Po
Principles of Consolidation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' |
Consolidation | ' |
The Company believes that HDS is considered a VIE under ASC 810 “Consolidation”, because the equity investors in HDS no longer have the characteristics of a controlling financial interest, and the Company, through JSJ, is the primary beneficiary of HDS and controls HDS’s operations. Accordingly, HDS has been consolidated as a deemed subsidiary into YBP as a reporting company under ASC 810. | |
As required by ASC 810-10, the Company performs a qualitative assessment to determine whether the Company is the primary beneficiary of HDS which is identified as a VIE of the Company. A quality assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities including terms of the contracts entered into by the entity, ownership interests issued by the entity and the parties involved in the design of the entity. The Company’s assessment on the involvement with HDS reveals that the Company has the absolute power to direct the most significant activities that impact the economic performance of HDS. JSJ is obligated to absorb a majority of the risk of loss from HDS activities and entitles JSJ to receive a majority of HDS’s expected residual returns. In addition, HDS’s shareholders have pledged their equity interest in HDS to JSJ, irrevocably granted JSJ an exclusive option to purchase, to the extent permitted under PRC Law, all or part of the equity interests in HDS and agreed to entrust all the rights to exercise their voting power to the person(s) appointed by JSJ. Under the accounting guidance, the Company is deemed to be the primary beneficiary of HDS and the results of HDS are consolidated in the Company’s consolidated financial statements for financial reporting purposes. Accordingly, as a VIE, HDS’s sales are included in the Company’s total sales, its income from operations is consolidated with the Company’s and the Company’s net income includes all of HDS’s net income. The Company does not have any non-controlling interest and, accordingly, did not subtract any net income in calculating the net income attributable to the Company. Because of the Contractual Arrangements, YBP has a pecuniary interest in HDS that requires consolidation of HDS’s financial statements with those of the Company. | |
Business combinations | ' |
Pursuant to ASC 805, as YBP and HDS are under the common control of the HDS Shareholders, the Second Restructure was accounted for in a manner similar to a pooling of interests. As a result, the Company’s historical amounts in the accompanying consolidated financial statements give retrospective effect to the Second Restructure, whereby the assets and liabilities of the Company are reflected at the historical carrying values and their operations are presented as if they were consolidated for all periods presented, with the results of the Company being consolidated from the date of the Second Transfer Agreement. The accounts of HDS are consolidated in the accompanying financial statements. | |
Earnings per share | ' |
ASC 260 “Earnings per Share,” requires dual presentation of basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. | |
Segment reporting | ' |
ASC 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. | |
Accounting Standards Update ("ASU 2013-05") [Member] | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' |
Recent accounting pronoucements | ' |
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. These amendments provide that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on the Company’s consolidated financial statements. | |
Accounting Standards Update ("ASU 2013-11") [Member] | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' |
Recent accounting pronoucements | ' |
In March 2013, the FASB issued ASU 2013-05 “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 addresses the accounting for the cumulative translation adjustment when a parent either sells part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. For public entities, the ASU is effective prospectively for fiscal years, and interim periods, within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU 2013-05 is not expected to have a material impact on the Company’s consolidated financial statements. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Basis of Presentation [Abstract] | ' | ||||||||
Schedule of Company's subsidiaries and variable interest entities | ' | ||||||||
Name | Domicile and date of incorporation | Registered capital | Effective ownership | Principal activities | |||||
Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”) | PRC | USD $ 100,000 | 100% | Holding company | |||||
29-Oct-09 | |||||||||
Yew Bio-Pharm Holdings Limited (“Yew Bio-Pharm (HK)”) | Hong Kong | HK$ 10,000 | 100% | Holding company of JSJ | |||||
29-Nov-10 | |||||||||
Harbin Yew Science and Technology Development Co., Ltd. (“HDS”) | PRC | RMB 45,000,000 | Contractual arrangements | Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings and potted yew trees; and the manufacture of yew tree wood handicrafts | |||||
22-Aug-96 | |||||||||
Principles_of_Consolidation_Ta
Principles of Consolidation (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Principles of Consolidation [Abstract] | ' | ||||||||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ||||||||
Assets | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
Cash | $ | 1,091,749 | $ | 343,990 | |||||
Accounts receivable | 1,027,690 | 722,598 | |||||||
Accounts receivable – related party | 1,172,091 | 284,986 | |||||||
Inventories (current and long-term) | 11,480,650 | 10,373,398 | |||||||
Prepaid expenses and other assets | 34,018 | - | |||||||
Prepaid expenses - related parties | 39,613 | 57,870 | |||||||
Property and equipment, net | 903,235 | 790,563 | |||||||
Land use rights and yew forest assets, net | 15,755,289 | 15,328,318 | |||||||
Total assets of VIE | $ | 31,504,335 | $ | 27,901,723 | |||||
Liabilities | |||||||||
Accounts payable | $ | 4,411 | $ | 990 | |||||
Accrued expenses and other payables | 70,687 | 79,981 | |||||||
Taxes payable | 3,813 | 6,305 | |||||||
Due to YBP and JSJ | 1,706,144 | 1,939,720 | |||||||
Due to related parties | 5,682 | 1,900 | |||||||
Total liabilities of VIE | $ | 1,790,737 | $ | 2,028,896 | |||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Inventories [Abstract] | ' | ||||||||||||||||||||||||
Schedule of inventories | ' | ||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Current portion | Long-term portion | Total | Current portion | Long-term portion | Total | ||||||||||||||||||||
Raw materials | $ | 354,500 | $ | 2,742,112 | $ | 3,096,612 | $ | 284,628 | $ | 2,734,896 | $ | 3,019,524 | |||||||||||||
Work-in-process | 88,749 | - | 88,749 | 22,523 | - | 22,523 | |||||||||||||||||||
Finished goods - handicrafts | 196,647 | 626,737 | 823,384 | 153,578 | 695,426 | 849,004 | |||||||||||||||||||
Yew seedlings | 796,715 | 3,527,843 | 4,324,558 | 530,505 | 3,622,991 | 4,153,496 | |||||||||||||||||||
Other trees | 11,369 | 3,135,977 | 3,147,346 | - | 2,328,851 | 2,328,851 | |||||||||||||||||||
Total | $ | 1,447,980 | $ | 10,032,669 | $ | 11,480,649 | $ | 991,234 | $ | 9,382,164 | $ | 10,373,398 |
Taxes_Tables
Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Taxes [Abstract] | ' | ||||||||||||||||
Summary of difference between U.S. statutory federal tax rate and Company's effective tax rate | ' | ||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
U.S. federal income tax rate | 34 | % | 34 | % | |||||||||||||
Foreign income not recognized in the U.S. | (34 | %) | (34 | %) | |||||||||||||
PRC EIT rate | 25 | % | 25 | % | |||||||||||||
PRC tax exemption and reduction | (25 | %) | (25 | %) | |||||||||||||
Total provision for income taxes | - | - | |||||||||||||||
Effects of income tax expense exemptions and tax reductions | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Tax exemption effect | $ | 156,812 | $ | 252,051 | $ | 778,923 | $ | 904,032 | |||||||||
Tax reduction due to loss carry-forward | - | 3,851 | - | 5,516 | |||||||||||||
Gain (loss) not subject to income tax | 1,786 | (1,041 | ) | (3,883 | ) | (3,186 | ) | ||||||||||
Basic net income per share effect | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | |||||
Diluted net income per share effect | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | |||||
Summary of net deferred tax assets | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
U.S. tax benefit of net operating loss carry forward | $ | 409,943 | $ | 327,348 | |||||||||||||
Valuation allowance | (409,943 | ) | (327,348 | ) | |||||||||||||
Net deferred tax assets | $ | - | $ | - |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||||||||||||
Summary of number of shares of the company's common stock subject to each Founder's Option | ' | ||||||||||||||||||||||
Name of Optionee | Number of Shares | ||||||||||||||||||||||
Subject to Founder's | |||||||||||||||||||||||
Option | |||||||||||||||||||||||
Zhiguo Wang | 20,103,475 | ||||||||||||||||||||||
Guifang Qi | 2,488,737 | ||||||||||||||||||||||
Xingming Han | 213,300 | ||||||||||||||||||||||
Total | 22,805,512 | ||||||||||||||||||||||
Summary of common stock issuable upon exercise of options outstanding | ' | ||||||||||||||||||||||
Stock Options Outstanding | Stock Options Exercisable | ||||||||||||||||||||||
Range of | Number | Weighted Average | Weighted | Number | Weighted | ||||||||||||||||||
Exercise Price | Outstanding at | Remaining | Average | Exercisable at | Average | ||||||||||||||||||
September 30, | Contractual Life | Exercise Price | September 30, | Exercise Price | |||||||||||||||||||
2013 | (Years) | 2013 | |||||||||||||||||||||
$ | 0.22 | 22,805,512 | 4.2 | $ | 0.22 | 22,805,512 | $ | 0.22 |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income available to common stockholders for basic and diluted net income per share of common stock | $ | 592,212 | $ | 879,659 | $ | 2,857,232 | $ | 3,359,870 | |||||||||
Weighted average common stock outstanding – basic | 50,000,000 | 50,000,000 | 50,000,000 | 47,052,920 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Subscribed common shares issuable | - | - | - | 2,947,080 | |||||||||||||
Stock options issued to directors/officers | - | - | - | - | |||||||||||||
Weighted average common stock outstanding – diluted | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||||||
Net income per common share – basic | $ | 0.01 | $ | 0.02 | $ | 0.06 | $ | 0.07 | |||||||||
Net income per common share – diluted | $ | 0.01 | $ | 0.02 | $ | 0.06 | $ | 0.07 | |||||||||
Schedule options included in earning per share calculation | ' | ||||||||||||||||
September 30, | 31-Dec-12 | ||||||||||||||||
2013 | |||||||||||||||||
Stock options | 22,805,512 | 22,805,512 | |||||||||||||||
Total | 22,805,512 | 22,805,512 |
Concentrations_of_Credit_Risk_1
Concentrations of Credit Risk and Major Customers (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Concentrations of Credit Risk and Major Customers [Abstract] | ' | |||||||||
Summary of major customer | ' | |||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
Customer | 2013 | 2012 | 2013 | 2012 | ||||||
A | 16 | % | 20 | % | 10 | % | 16 | % | ||
B | * | * | * | 13 | % | |||||
C | * | 13 | % | * | 14 | % | ||||
D | * | 17 | % | * | 14 | % | ||||
E | * | * | * | 11 | % | |||||
F | * | * | 24 | % | * | |||||
G (Yew Pharmaceutical, a related party) | * | 32 | % | 26 | % | 12 | % | |||
* | Less than 10% | |||||||||
Summary of major supplier | ' | |||||||||
Three Months Ended September 30, | Nine Months Ended | |||||||||
September 30, | ||||||||||
Supplier | 2013 | 2012 | 2013 | 2012 | ||||||
A | * | * | 62 | % | * | |||||
B | * | * | 38 | % | * | |||||
C | * | 100 | % | * | 95 | % | ||||
* | Less than 10% |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Schedule of Related Party Transactions [Table Text Block] | ' | ||||||||||||||||
Company | Ownership | ||||||||||||||||
Heilongjiang Zishan Technology Stock Co., Ltd. (“ZTC”) | 18% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., 39% owned by Zhiguo Wang, Chairman and Chief Executive Officer, 31% owned by Guifang Qi, the wife of Mr. Wang and Director of the Company, and 12% owned by third parties. | ||||||||||||||||
Heilongjiang Yew Pharmaceuticals, Co., Ltd. (“Yew Pharmaceutical”) | 95% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 5% owned by Madame Qi. | ||||||||||||||||
Shanghai Kairun Bio-Pharmaceutical Co., Ltd. (“Kairun”) | 60% owned by Heilongjiang Zishan Technology Co., Ltd., 20% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 20% owned by Mr. Wang. | ||||||||||||||||
Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd. (“HEFS”) | 63% owned by Mr. Wang, 34% owned by Madame Qi, and 3% owned by third parties. | ||||||||||||||||
Revenue from related party | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Name of related party | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Yew Pharmaceutical | $ | 88,706 | $ | 442,467 | $ | 1,409,141 | $ | 602,159 | |||||||||
Total | $ | 88,706 | $ | 442,467 | $ | 1,409,141 | $ | 602,159 | |||||||||
Schedule of due to (from) related party | ' | ||||||||||||||||
Name of related parties | 30-Sep-13 | 31-Dec-12 | |||||||||||||||
Zhiguo Wang | $ | 47,804 | $ | 45,976 | |||||||||||||
Guifang Qi | 3,853 | 1,900 | |||||||||||||||
Total | $ | 51,657 | $ | 47,876 |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Summary of reportable business segments | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues: | |||||||||||||||||
TCM raw materials | $ | 1,005,323 | $ | 893,909 | $ | 3,171,814 | $ | 2,860,552 | |||||||||
Yew trees | 448,810 | 396,416 | 2,102,417 | 1,853,504 | |||||||||||||
Handicrafts | 90,194 | 82,699 | 175,402 | 118,734 | |||||||||||||
1,544,327 | 1,373,024 | 5,449,633 | 4,832,790 | ||||||||||||||
Cost of revenues: | |||||||||||||||||
TCM raw materials | 226,616 | 158,354 | 841,667 | 446,436 | |||||||||||||
Yew trees | 348,040 | 21,395 | 753,718 | 320,410 | |||||||||||||
Handicrafts | 63,572 | 51,188 | 127,034 | 69,863 | |||||||||||||
638,228 | 230,937 | 1,722,419 | 836,709 | ||||||||||||||
Depreciation and amortization | |||||||||||||||||
TCM raw materials | 92,764 | 84,334 | 271,581 | 253,157 | |||||||||||||
Yew trees | 8,723 | 14,573 | 25,949 | 41,638 | |||||||||||||
Handicrafts | 7,795 | 7,428 | 23,358 | 23,532 | |||||||||||||
Other | 28,309 | 36,017 | 98,474 | 99,396 | |||||||||||||
137,591 | 142,352 | 419,362 | 417,723 | ||||||||||||||
Net income (loss) | |||||||||||||||||
TCM raw materials | 778,707 | 735,555 | 2,330,147 | 2,414,116 | |||||||||||||
Yew trees | 100,770 | 375,021 | 1,348,699 | 1,533,094 | |||||||||||||
Handicrafts | 26,622 | 31,511 | 48,368 | 48,871 | |||||||||||||
Other | (313,887 | ) | (262,428 | ) | (869,982 | ) | (636,211 | ) | |||||||||
$ | 592,212 | $ | 879,659 | $ | 2,857,232 | $ | 3,359,870 | ||||||||||
Summary of identifiable long-lived assets, net | ' | ||||||||||||||||
September 30, | 31-Dec-12 | ||||||||||||||||
2013 | |||||||||||||||||
TCM raw materials | $ | 15,755,289 | $ | 14,983,045 | |||||||||||||
Yew trees | 3,900,951 | 4,357,203 | |||||||||||||||
Handicrafts | 913,414 | 817,917 | |||||||||||||||
Other | 6,196,128 | 5,438,286 | |||||||||||||||
$ | 26,765,782 | $ | 25,596,451 | ||||||||||||||
Summary of expenditures for segment assets | ' | ||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
TCM raw materials | $ | 513,685 | $ | 65,749 | |||||||||||||
Yew trees | 183,235 | 83,098 | |||||||||||||||
Handicrafts | - | - | |||||||||||||||
Other | 34,369 | 125,426 | |||||||||||||||
$ | 731,289 | $ | 274,273 |
Basis_of_Presentation_Details
Basis of Presentation (Details) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Heilongjiang Jinshangjing Bio-Technology Development Co., Limited ("JSJ") [Member] | Yew Bio-Pharm Holdings Limited ("Yew Bio-Pharm (HK)") [Member] | Harbin Yew Science and Technology Development Co., Ltd. ("HDS") [Member] | |
USD ($) | HKD | USD ($) | |
Schedule of Company's subsidiaries and variable interest entities | ' | ' | ' |
Domicile and date of incorporation | 'PRC October 29, 2009 | 'Hong Kong November 29, 2010 | 'PRC August 22, 1996 |
Registered capital | $100,000 | 10,000 | $45,000,000 |
Effective ownership, percentage | 100.00% | 100.00% | 0.00% |
Principal activities | 'Holding company | 'Holding company of JSJ | 'Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings and potted yew trees; and the manufacture of yew tree wood handicrafts |
Principles_of_Consolidation_De
Principles of Consolidation (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total assets of VIE | $31,504,335 | $27,901,723 |
Total liabilities of VIE | 1,790,737 | 2,028,896 |
Cash [Member] | ' | ' |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total assets of VIE | 1,091,749 | 343,990 |
Accounts receivable [Member] | ' | ' |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total assets of VIE | 1,027,690 | 722,598 |
Accounts receivable - related party [Member] | ' | ' |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total assets of VIE | 1,172,091 | 284,986 |
Inventories (current and long-term) [Member] | ' | ' |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total assets of VIE | 11,480,650 | 10,373,398 |
Prepaid expenses and other assets [Member] | ' | ' |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total assets of VIE | 34,018 | ' |
Prepaid expenses - related parties [Member] | ' | ' |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total assets of VIE | 39,613 | 57,870 |
Property and equipment, net [Member] | ' | ' |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total assets of VIE | 903,235 | 790,563 |
Land use rights and yew forest assets, net [Member] | ' | ' |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total assets of VIE | 15,755,289 | 15,328,318 |
Accounts payable [Member] | ' | ' |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total liabilities of VIE | 4,411 | 990 |
Accrued expenses and other payables [Member] | ' | ' |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total liabilities of VIE | 70,687 | 79,981 |
Taxes payable [Member] | ' | ' |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total liabilities of VIE | 3,813 | 6,305 |
Due to YBP and JSJ [Member] | ' | ' |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total liabilities of VIE | 1,706,144 | 1,939,720 |
Due to related parties [Member] | ' | ' |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ' | ' |
Total liabilities of VIE | $5,682 | $1,900 |
Principles_of_Consolidation_De1
Principles of Consolidation (Details Textual) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Principles of Consolidation (Textual) | ' |
Monthly consulting service fee as percentage of net income of HDS paid to JSJ | 100.00% |
HDS obligation within 30 days after the end of each month | 'Within 30 days after the end of each month, HDS shall (a) deliver to JSJ the management accounts and operating statistics of HDS for such month, including the net income of HDS during such month (the "Monthly Net Income"), and (b) pay 80% of such Monthly Net Income to JSJ (each such payment, a "Monthly Payment"). |
HDS obligation within 90 days after the end of each month | 'Within ninety (90) days after the end of each fiscal year, HDS shall (a) deliver to JSJ financial statements of HDS for such fiscal year, which shall be audited and certified by an independent certified public accountant approved by JSJ, and (b) pay an amount to JSJ equal to the shortfall, if any, of the aggregate net income of HDS for such fiscal year, as shown in such audited financial statements, as compared to the aggregate amount of the Monthly Payments paid by HDS to JSJ in such fiscal year. HDS also granted an irrevocable and exclusive option to JSJ to purchase any and all of the assets of HDS, to the extent permitted under PRC law, at the lowest price permitted by PRC law. |
Additional monthly payment to JSJ as percentage of net income of HDS | 80.00% |
Business Cooperation Agreement term | '10 years |
Business Cooperation Agreement expiration date | 5-Nov-20 |
Notice period for JSJ to termination of contract | '30 days |
HDS Shareholder's equity interests | $10 |
Execution of any major contract is limited under Option Agreement | 'Over RMB 500,000 |
Exclusive Option Agreement term | '10 years |
Exclusive Option Agreement commencing date | 5-Nov-20 |
Description of notice period for remedies for any breach in terms agreement | 'Within 20 days after the giving of notice of breach |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of inventories | ' | ' |
Current portion | $1,447,980 | $991,234 |
Long-term portion | 10,032,669 | 9,382,164 |
Inventory, Total | 11,480,649 | 10,373,398 |
Raw materials [Member] | ' | ' |
Schedule of inventories | ' | ' |
Current portion | 354,500 | 284,628 |
Long-term portion | 2,742,112 | 2,734,896 |
Inventory, Total | 3,096,612 | 3,019,524 |
Work-in-process [Member] | ' | ' |
Schedule of inventories | ' | ' |
Current portion | 88,749 | 22,523 |
Long-term portion | ' | ' |
Inventory, Total | 88,749 | 22,523 |
Finished goods - handicrafts [Member] | ' | ' |
Schedule of inventories | ' | ' |
Current portion | 196,647 | 153,578 |
Long-term portion | 626,737 | 695,426 |
Inventory, Total | 823,384 | 849,004 |
Yew seedlings [Member] | ' | ' |
Schedule of inventories | ' | ' |
Current portion | 796,715 | 530,505 |
Long-term portion | 3,527,843 | 3,622,991 |
Inventory, Total | 4,324,558 | 4,153,496 |
Other trees [Member] | ' | ' |
Schedule of inventories | ' | ' |
Current portion | 11,369 | ' |
Long-term portion | 3,135,977 | 2,328,851 |
Inventory, Total | $3,147,346 | $2,328,851 |
Taxes_Details
Taxes (Details) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Summary of difference between U.S. statutory federal tax rate and Company's effective tax rate | ' | ' |
Foreign income not recognized in the U.S. | -34.00% | -34.00% |
PRC EIT rate | 25.00% | 25.00% |
PRC tax exemption and reduction | -25.00% | -25.00% |
Total provision for income tax | ' | ' |
Taxes_Details_1
Taxes (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Effects of income tax expense exemptions and tax reductions | ' | ' | ' | ' |
Tax exemption effect | $156,812 | $252,051 | $778,923 | $904,032 |
Tax reduction due to loss carry-forward | ' | 3,851 | ' | 5,516 |
Gain (loss) not subject to income tax | $1,786 | ($1,041) | ($3,883) | ($3,186) |
Basic net income per share effect | $0 | ($0.01) | ($0.02) | ($0.02) |
Diluted net income per share effect | $0 | ($0.01) | ($0.02) | ($0.02) |
Taxes_Details_2
Taxes (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Summary of deferred tax assets and liabilities | ' | ' |
U.S. tax benefit of net operating loss carry forward | $409,943 | $327,348 |
Valuation allowance | -409,943 | -327,348 |
Net deferred tax assets | ' | ' |
Taxes_Details_Textual
Taxes (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Taxes (Textual) | ' | ' | ' | ' | ' |
Income before income tax expense | $592,212 | $879,659 | $2,857,232 | $3,359,870 | ' |
Net operating loss carry forwards | 1,205,716 | ' | 1,205,716 | ' | 962,787 |
Operating loss carry forwards expires | ' | ' | 'Through 2033 | ' | ' |
Valuation allowance, percentage | 100.00% | ' | 100.00% | ' | 100.00% |
Valuation allowance | 409,943 | ' | 409,943 | ' | 327,348 |
Net change in valuation allowance | 14,340 | 47,527 | 82,595 | 90,297 | ' |
Cumulative undistributed earnings of foreign subsidiary and VIE | $19,200,000 | ' | $19,200,000 | ' | $16,400,000 |
Value added tax for agricultural products | ' | ' | 13.00% | ' | ' |
Value added tax for handicrafts | ' | ' | 17.00% | ' | ' |
Description of Value added tax exemption date | ' | ' | 'Up to December 31, 2016 | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Summary of number of shares of the company's common stock subject to each Founder's Option | ' |
Number of shares subject to Founders Option | 22,805,512 |
Zhiguo Wang [Member] | ' |
Summary of number of shares of the company's common stock subject to each Founder's Option | ' |
Number of shares subject to Founders Option | 20,103,475 |
Guifang Qi [Member] | ' |
Summary of number of shares of the company's common stock subject to each Founder's Option | ' |
Number of shares subject to Founders Option | 2,488,737 |
Xingming Han [Member] | ' |
Summary of number of shares of the company's common stock subject to each Founder's Option | ' |
Number of shares subject to Founders Option | 213,300 |
Stockholders_Equity_Details_1
Stockholders' Equity (Details 1) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Summary of number of shares of the company's common stock subjedt to each Founder's Option | ' |
Range of exercise price | $0.22 |
Stock Options Outstanding | 22,805,512 |
Weighted Average Remaining Contractual Life (Years) | '4 years 2 months 12 days |
Stock Options Outstanding, Weighted Average Exercise Price | $0.22 |
Stock Options Exercisable | 22,805,512 |
Stock Options Exercisable, Weighted Average Exercise Price | $0.22 |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders Equity (Textual) | ' |
Each founder's option exercisable period | '5 years |
Each founder's option exercisable per share | $0.22 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Reconciliation of basic and diluted net income per share | ' | ' | ' | ' |
Net income | $592,212 | $879,659 | $2,857,232 | $3,359,870 |
Weighted average common stock outstanding - basic | 50,000,000 | 50,000,000 | 50,000,000 | 47,052,920 |
Effect of dilutive securities: | ' | ' | ' | ' |
Subscribed common shares issuable | ' | ' | ' | 2,947,080 |
Stock options issued to directors/officers | ' | ' | ' | ' |
Weighted average common stock outstanding - diluted | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 |
Net income per common share - basic | $0.01 | $0.02 | $0.06 | $0.07 |
Net income per common share - diluted | $0.01 | $0.02 | $0.06 | $0.07 |
Earnings_Per_Share_Details_1
Earnings Per Share (Details 1) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Summary of common stock issuable upon exercise of options outstanding | ' | ' |
Stock options | 22,805,512 | 22,805,512 |
Total | 22,805,512 | 22,805,512 |
Concentrations_of_Credit_Risk_2
Concentrations of Credit Risk and Major Customers (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
A [Member] | ' | ' | ' | ' |
Summary of major customer | ' | ' | ' | ' |
Percentage of revenue from major customers | 16.00% | 20.00% | 10.00% | 16.00% |
B [Member] | ' | ' | ' | ' |
Summary of major customer | ' | ' | ' | ' |
Percentage of revenue from major customers | ' | ' | ' | 13.00% |
C [Member] | ' | ' | ' | ' |
Summary of major customer | ' | ' | ' | ' |
Percentage of revenue from major customers | ' | 13.00% | ' | 14.00% |
D [Member] | ' | ' | ' | ' |
Summary of major customer | ' | ' | ' | ' |
Percentage of revenue from major customers | ' | 17.00% | ' | 14.00% |
E [Member] | ' | ' | ' | ' |
Summary of major customer | ' | ' | ' | ' |
Percentage of revenue from major customers | ' | ' | ' | 11.00% |
F [Member] | ' | ' | ' | ' |
Summary of major customer | ' | ' | ' | ' |
Percentage of revenue from major customers | ' | ' | 24.00% | ' |
G [Member] | ' | ' | ' | ' |
Summary of major customer | ' | ' | ' | ' |
Percentage of revenue from major customers | ' | 32.00% | 26.00% | 12.00% |
Concentrations_of_Credit_Risk_3
Concentrations of Credit Risk and Major Customers (Details 1) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Supplier A [Member] | ' | ' | ' | ' |
Summary of major supplier | ' | ' | ' | ' |
Percentage of purchase from major supplier | ' | ' | 62.00% | ' |
Supplier B [Member] | ' | ' | ' | ' |
Summary of major supplier | ' | ' | ' | ' |
Percentage of purchase from major supplier | ' | ' | 38.00% | ' |
Supplier C [Member] | ' | ' | ' | ' |
Summary of major supplier | ' | ' | ' | ' |
Percentage of purchase from major supplier | ' | 100.00% | ' | 95.00% |
Concentrations_of_Credit_Risk_4
Concentrations of Credit Risk and Major Customers (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Concentrations of Credit Risk and Major Customers (Textual) | ' | ' |
Percentage of accounts receivable accounted by largest customers | 88.60% | ' |
Number of largest customers accounted in accounts receivable | 3 | ' |
Percentage of purchase of yew seedlings from major supplier | 100.00% | ' |
Number of major supplier of yew seedlings | 2 | ' |
Fuye Field Agreement [Member] | ' | ' |
Concentrations of Credit Risk and Major Customers (Textual) | ' | ' |
Company acquired number of trees | 80,000 | ' |
Land use right agreement | 2.2 | ' |
Yew Pharmaceutical [Member] | ' | ' |
Concentrations of Credit Risk and Major Customers (Textual) | ' | ' |
Percentage of accounts receivable accounted by largest customers | 53.30% | 28.30% |
Related_Party_Transactions_Det
Related Party Transactions (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Heilongjiang Zishan Technology Stock Co., Ltd. ("ZTC") [Member] | ' |
Related Party Transaction [Line Items] | ' |
Ownership, description | '18% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., 39% owned by Zhiguo Wang, Chairman and Chief Executive Officer, 31% owned by Guifang Qi, the wife of Mr. Wang and Director of the Company, and 12% owned by third parties. |
Heilongjiang Yew Pharmaceuticals, Co., Ltd. ("Yew Pharmaceutical") [Member] | ' |
Related Party Transaction [Line Items] | ' |
Ownership, description | '95% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 5% owned by Madame Qi. |
Shanghai Kairun Bio-Pharmaceutical Co., Ltd. ("Kairun") [Member] | ' |
Related Party Transaction [Line Items] | ' |
Ownership, description | '60% owned by Heilongjiang Zishan Technology Co., Ltd., 20% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 20% owned by Mr. Wang. |
Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd. ("HEFS") [Member] | ' |
Related Party Transaction [Line Items] | ' |
Ownership, description | '63% owned by Mr. Wang, 34% owned by Madame Qi, and 3% owned by third parties. |
Related_Party_Transactions_Det1
Related Party Transactions (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenue from Related Parties | ' | ' | ' | ' |
Revenues - related party | $88,706 | $442,467 | $1,409,141 | $602,159 |
Yew Pharmaceutical [Member] | ' | ' | ' | ' |
Revenue from Related Parties | ' | ' | ' | ' |
Revenues - related party | $88,706 | $442,467 | $1,409,141 | $602,159 |
Related_Party_Transactions_Det2
Related Party Transactions (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' |
Due to (from) related party total | $51,657 | $47,876 |
Zhiguo Wang [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to (from) related party total | 47,804 | 45,976 |
Guifang Qi [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to (from) related party total | $3,853 | $1,900 |
Related_Party_Transactions_Det3
Related Party Transactions (Details Textual) | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 25, 2005 | Mar. 25, 2005 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2008 | Dec. 31, 2008 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 03, 2008 | Jan. 31, 2010 | Jan. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 02, 2012 | Jul. 02, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jul. 30, 2012 | Jan. 01, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Jan. 31, 2010 | Jan. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 09, 2010 | Jan. 31, 2010 | Jan. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
USD ($) | USD ($) | Agreement of Seedling Land with ZTC [Member] | Agreement of Seedling Land with ZTC [Member] | Agreement of Seedling Land with ZTC [Member] | Agreement of Seedling Land with ZTC [Member] | Agreement of Seedling Land with ZTC [Member] | Agreement of Seedling Land with ZTC [Member] | Agreement of Seedling Land with ZTC [Member] | Store Lease [Member] | Store Lease [Member] | Store Lease [Member] | Store Lease [Member] | Store Lease [Member] | Store Lease [Member] | Store Lease [Member] | Store Lease [Member] | Office Lease [Member] | Office Lease [Member] | Office Lease [Member] | Office Lease [Member] | Office Lease [Member] | Office Lease [Member] | JSJ Lease [Member] | JSJ Lease [Member] | JSJ Lease [Member] | JSJ Lease [Member] | JSJ Lease [Member] | JSJ Lease [Member] | JSJ Lease [Member] | JSJ Lease [Member] | JSJ Lease [Member] | Yew Pharmaceutical [Member] | Yew Pharmaceutical [Member] | Yew Pharmaceutical [Member] | Yew Pharmaceutical [Member] | Yew Pharmaceutical [Member] | Yew Pharmaceutical [Member] | Yew Pharmaceutical [Member] | Yew Pharmaceutical [Member] | Yew Pharmaceutical [Member] | Kairun [Member] | Kairun [Member] | Zhiguo Wang [Member] | Zhiguo Wang [Member] | Zhiguo Wang [Member] | Zhiguo Wang [Member] | |
USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Cooperation and Development Agreement [Member] | Cooperation and Development Agreement [Member] | Cooperation and Development Agreement [Member] | Cooperation and Development Agreement [Member] | Cooperation and Development Agreement [Member] | Cooperation and Development Agreement [Member] | Cooperation and Development Agreement [Member] | Technology Agreement [Member] | Technology Agreement [Member] | USD ($) | USD ($) | USD ($) | USD ($) | ||||||
sqft | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | |||||||||||||||||||||||||||||||||||||||
Related Party Transactions (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreement expiration date | ' | ' | 24-Mar-35 | 24-Mar-35 | ' | ' | ' | ' | ' | ' | ' | 1-Dec-14 | ' | 1-Dec-14 | 1-Dec-14 | ' | 3-Dec-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Jun-15 | 31-Dec-25 | ' | ' | ' | ' | ' | ' | ' | ' | 9-Jan-20 | ' | ' | ' | ' | ' | ' |
Agreement expiration period | ' | ' | '30 years | '30 years | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | ' | ' | ' | ' | '15 years | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '10 years | ' | ' | ' | ' | ' | '2 years | '2 years | ' | ' | ' | ' |
Cultivation price per metric ton | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $161,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88,706 | 442,467 | 1,409,141 | 600,556 | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,603 | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable, related parties, current | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,172,091 | 284,986 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leased Area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 320 | 320 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent period for which company required to make full payment for land use rights in advance | ' | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual payments under operating lease | ' | ' | 26,000 | 162,450 | ' | ' | ' | ' | ' | 2,000 | 12,000 | ' | ' | 2,500 | 15,600 | ' | ' | 2,400 | 15,000 | ' | ' | ' | ' | 1,600 | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, rent expense | ' | ' | ' | ' | 6,583 | 6,414 | 19,583 | 19,255 | ' | ' | ' | 633 | 616 | 1,881 | ' | 1,849 | ' | ' | ' | 608 | 592 | 1,808 | 1,778 | ' | ' | 405 | 395 | 1,205 | 395 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid rent - related party | 40,832 | 60,245 | ' | ' | 39,613 | ' | 39,613 | ' | 57,870 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,219 | ' | 1,219 | ' | 2,375 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Utilities, property insurance, real estate tax, association dues and certain other expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,762 | 3,684 | 11,112 | 8,754 |
Description of lease area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The space provided by Mr. Wang to use as principal executive offices is less than 500 square feet | ' |
Description of estimated rent for an equivalent executive office | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The Company estimates that the market value of a gross and full service lease for an equivalent executive office rent in the same geographic area is approximately $800 to $1,000 per month. | ' |
Payment made under agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $32,000 | 200,000 | ' | ' | ' | ' |
Statutory_Reserves_Details
Statutory Reserves (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Statutory Reserves (Textual) | ' | ' | ' | ' | ' |
Statutory surplus reserve fund, Description | ' | ' | 'The statutory surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years' losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital | ' | ' |
Appropriation of statutory surplus reserve, Description | ' | ' | ' | 'Appropriation to the statutory surplus reserve is required to be at least 10% of the after tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities' registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. | ' |
Maximum percentage balance required of registered capital in reserve for business expansion | ' | ' | ' | 50.00% | ' |
Appropriated to statutory surplus reserve | $63,772 | $102,361 | $311,256 | $363,819 | $2,179,494 |
Accumulated balance of the statutory reserve | $2,490,750 | ' | $2,490,750 | ' | $2,179,494 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Summary of reportable business segments | ' | ' | ' | ' | ' |
Total Revenues | $1,544,327 | $1,373,024 | $5,449,633 | $4,832,790 | ' |
Total Cost of Revenues | 638,228 | 230,937 | 1,722,419 | 836,709 | ' |
Depreciation and amortization | 137,591 | 142,352 | 419,362 | 417,723 | ' |
Net income | 592,212 | 879,659 | 2,857,232 | 3,359,870 | ' |
Segment reporting information, Additional information | ' | ' | ' | ' | ' |
Identifiable long-lived assets, net | 26,765,782 | ' | 26,765,782 | ' | 25,596,451 |
Expenditures for segment assets | ' | ' | 731,289 | 274,273 | ' |
TCM raw materials [Member] | ' | ' | ' | ' | ' |
Summary of reportable business segments | ' | ' | ' | ' | ' |
Total Revenues | 1,005,323 | 893,909 | 3,171,814 | 2,860,552 | ' |
Total Cost of Revenues | 226,616 | 158,354 | 841,667 | 446,436 | ' |
Depreciation and amortization | 92,764 | 84,334 | 271,581 | 253,157 | ' |
Net income | 778,707 | 735,555 | 2,330,147 | 2,414,116 | ' |
Segment reporting information, Additional information | ' | ' | ' | ' | ' |
Identifiable long-lived assets, net | 15,755,289 | ' | 15,755,289 | ' | 14,983,045 |
Expenditures for segment assets | ' | ' | 513,685 | 65,749 | ' |
Yew trees [Member] | ' | ' | ' | ' | ' |
Summary of reportable business segments | ' | ' | ' | ' | ' |
Total Revenues | 448,810 | 396,416 | 2,102,417 | 1,853,504 | ' |
Total Cost of Revenues | 348,040 | 21,395 | 753,718 | 320,410 | ' |
Depreciation and amortization | 8,723 | 14,573 | 25,949 | 41,638 | ' |
Net income | 100,770 | 375,021 | 1,348,699 | 1,533,094 | ' |
Segment reporting information, Additional information | ' | ' | ' | ' | ' |
Identifiable long-lived assets, net | 3,900,951 | ' | 3,900,951 | ' | 4,357,203 |
Expenditures for segment assets | ' | ' | 183,235 | 83,098 | ' |
Handicrafts [Member] | ' | ' | ' | ' | ' |
Summary of reportable business segments | ' | ' | ' | ' | ' |
Total Revenues | 90,194 | 82,699 | 175,402 | 118,734 | ' |
Total Cost of Revenues | 63,572 | 51,188 | 127,034 | 69,863 | ' |
Depreciation and amortization | 7,795 | 7,428 | 23,358 | 23,532 | ' |
Net income | 26,622 | 31,511 | 48,368 | 48,871 | ' |
Segment reporting information, Additional information | ' | ' | ' | ' | ' |
Identifiable long-lived assets, net | 913,414 | ' | 913,414 | ' | 817,917 |
Expenditures for segment assets | ' | ' | ' | ' | ' |
Other [Member] | ' | ' | ' | ' | ' |
Summary of reportable business segments | ' | ' | ' | ' | ' |
Depreciation and amortization | 28,309 | 36,017 | 98,474 | 99,396 | ' |
Net income | -313,887 | -262,428 | -869,982 | -636,211 | ' |
Segment reporting information, Additional information | ' | ' | ' | ' | ' |
Identifiable long-lived assets, net | 6,196,128 | ' | 6,196,128 | ' | 5,438,286 |
Expenditures for segment assets | ' | ' | $34,369 | $125,426 | ' |
Segment_Information_Details_Te
Segment Information (Details Textual) | 9 Months Ended |
Sep. 30, 2013 | |
Segment | |
Segment Information (Textual) | ' |
Number of business segments | 3 |