Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2015 | Mar. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Yew Bio-Pharm Group, Inc. | ||
Entity Central Index Key | 1548240 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $8,427,960 | ||
Entity Common Stock, Shares Outstanding | 52,125,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS: | ||
Cash | $487,940 | $1,159,611 |
Accounts receivable | 922,564 | 418,875 |
Accounts receivable, related parties, current | 340,132 | 377,821 |
Inventories | 1,443,078 | 1,089,087 |
Prepaid expenses - related party | 5,787 | 34,031 |
Prepaid expenses and other assets | 16,791 | 2,697 |
Total Current Assets | 3,216,292 | 3,082,122 |
LONG-TERM ASSETS: | ||
Long-term inventories, net | 10,663,545 | 10,245,146 |
Property and equipment, net | 856,250 | 1,033,078 |
Land use rights and yew forest assets, net | 20,305,821 | 20,953,562 |
Total Long-term Assets | 31,825,616 | 32,231,786 |
Total Assets | 35,041,908 | 35,313,908 |
CURRENT LIABILITIES: | ||
Accrued expenses and other payables | 84,722 | 136,713 |
Taxes payable | 10,547 | 10,232 |
Due to related parties | 45,040 | 4,850,637 |
Total Current Liabilities | 140,309 | 4,997,582 |
Total Liabilities | 140,309 | 4,997,582 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Common Stock ($0.001 par value; 140,000,000 shares authorized; 52,125,000 shares and 50,000,000 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively) | 52,125 | 50,000 |
Additional paid-in capital | 8,557,656 | 8,058,165 |
Retained earnings | 20,444,667 | 16,664,138 |
Statutory reserves | 3,100,766 | 2,597,118 |
Accumulated other comprehensive income - foreign currency translation adjustment | 2,746,385 | 2,946,905 |
Total Shareholders' Equity | 34,901,599 | 30,316,326 |
Total Liabilities and Shareholders' Equity | $35,041,908 | $35,313,908 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Balance Sheets [Abstract] | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares issued | 52,125,000 | 50,000,000 |
Common stock, shares outstanding | 52,125,000 | 50,000,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES: | ||
Revenues | $5,657,351 | $5,889,190 |
Revenues - related party | 2,069,225 | 1,550,458 |
Total Revenues | 7,726,576 | 7,439,648 |
COST OF REVENUES: | ||
Cost of revenues | 1,582,980 | 1,968,682 |
Cost of revenues - related party | 553,617 | 438,718 |
Total Cost of Revenues | 2,136,597 | 2,407,400 |
GROSS PROFIT | 5,589,979 | 5,032,248 |
OPERATING EXPENSES: | ||
Selling | 21,521 | 23,794 |
General and administrative | 1,282,508 | 1,110,717 |
Total Operating Expenses | 1,304,029 | 1,134,511 |
INCOME FROM OPERATIONS | 4,285,950 | 3,897,737 |
OTHER INCOME (EXPENSES): | ||
Interest income | 179 | 647 |
Other income (expense) | -1,952 | 1,346 |
Total Other Income (Expenses) | -1,773 | 1,993 |
NET INCOME | 4,284,177 | 3,899,730 |
COMPREHENSIVE INCOME: | ||
Net income available to common stockholders for basic and diluted net income per share of common stock | 4,284,177 | 3,899,730 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||
Unrealized foreign currency translation gain (loss) | -200,520 | 966,009 |
COMPREHENSIVE INCOME | $4,083,657 | $4,865,739 |
NET INCOME PER COMMON SHARE: | ||
Basic | $0.08 | $0.08 |
Diluted | $0.07 | $0.08 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||
Basic | 50,948,973 | 50,000,000 |
Diluted | 62,795,716 | 50,000,000 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock Par Value $0.001 | Additional Paid-in Capital | Retained Earnings | Statutory Reserve | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2012 | $27,788,799 | $50,000 | $10,396,377 | $13,182,032 | $2,179,494 | $1,980,896 |
Beginning balance, Shares at Dec. 31, 2012 | 50,000,000 | |||||
Excess of acquisition price over carrying value of yew forest assets purchased from entities under common control | 2,338,212 | -2,338,212 | ||||
Stock-based compensation | ||||||
Adjustment to statutory reserve | -417,624 | 417,624 | ||||
Net income for the year | 3,899,730 | 3,899,730 | ||||
Foreign currency translation adjustment | 966,009 | 966,009 | ||||
Balance at Dec. 31, 2013 | 30,316,326 | 50,000 | 8,058,165 | 16,664,138 | 2,597,118 | 2,946,905 |
Balance, Shares at Dec. 31, 2013 | 50,000,000 | |||||
Excess of acquisition price over carrying value of yew forest assets purchased from entities under common control | ||||||
Issuance of common stock in exchange for professional services | 335,394 | 2,125 | 333,269 | |||
Issuance of common stock in exchange for professional service, Shares | 2,125,000 | |||||
Stock-based compensation | 166,222 | 166,222 | ||||
Adjustment to statutory reserve | -503,648 | 503,648 | ||||
Net income for the year | 4,284,177 | 4,284,177 | ||||
Foreign currency translation adjustment | -200,520 | -200,520 | ||||
Balance at Dec. 31, 2014 | $34,901,599 | $52,125 | $8,557,656 | $20,444,667 | $3,100,766 | $2,746,385 |
Balance, Shares at Dec. 31, 2014 | 52,125,000 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Paranthetical) (USD $) | Dec. 31, 2014 |
Statement Of Stockholders' Equity [Abstract] | |
Shares issued price per share | $0.00 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $4,284,177 | $3,899,730 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 172,446 | 179,857 |
Amortization of land use rights and yew forest assets | 510,363 | 381,659 |
Loss on disposal of fixed assets | 1,814 | 349 |
Stock-based compensation | 166,222 | |
Issuance of common stock for professional service | 335,394 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | -506,814 | 323,160 |
Accounts receivable - related party | 35,295 | -82,282 |
Prepaid and other current assets | -14,112 | -2,515 |
Prepaid expenses - related party | 28,049 | 27,823 |
Inventories | -842,558 | -222,738 |
Accounts payable | -1,008 | |
Accrued expenses and other payables | -51,393 | -65,466 |
Due to related parties | -3,894 | |
Taxes payable | 377 | 4,255 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 4,115,366 | 4,442,824 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from disposal of property, plant and equipment | 5,000 | |
Purchase of property, plant and equipment | -8,534 | -299,613 |
Purchase of land use rights and yew forest assets | -2,444,139 | -3,393,082 |
NET CASH USED IN INVESTING ACTIVITIES | -2,447,673 | -3,692,695 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from related party advances | 1,220 | |
Repayments for related parties advances | -210 | |
Distribution to owners - excess of acquisition price over carrying value of yew forest assets yew forest assets purchased from entities under common control | -2,332,048 | |
NET CASH USED IN FINANCING ACTIVITIES | -2,330,828 | -210 |
EFFECT OF EXCHANGE RATE ON CASH | -8,536 | 22,871 |
NET INCREASE (DECREASE) IN CASH | -671,671 | 772,791 |
CASH - Beginning of year | 1,159,611 | 386,821 |
CASH - End of year | 487,940 | 1,159,611 |
Cash paid for: | ||
Interest | ||
Income taxes | ||
Non-cash investing and financing activities | ||
Due to related party in connection with purchase of yew forest assets from entity under common control | 2,450,600 | |
Excess of acquisition price over carrying value of yew forest assets purchased from entities under common control | $2,338,212 |
Organization_and_Principal_Act
Organization and Principal Activities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Organization and Principal Activities [Abstract] | |||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||
Yew Bio-Pharm Group, Inc. (individually “YBP” and collectively with its subsidiaries and affiliates, the “Company”) was incorporated under the law of the State of Nevada on November 13, 2007. At the time of its incorporation, YBP had no operations and no substantial assets. | |||||||||
On October 29, 2009, YBP established a wholly-owned subsidiary, Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”), a wholly-owned foreign enterprise (“WOFE”) incorporated in the People’s Republic of China (“PRC”), as part of a restructure of the Company (the “First Restructure”). | |||||||||
Harbin Yew Science and Technology Development Co., Ltd. (“HDS”) is a limited liability company incorporated under the laws of the PRC on August 22, 1996. Until February 23, 2010, HDS was owned by Zhiguo Wang (“Mr. Wang”) (62.81%), his wife Guifang Qi (“Madame Qi”) (18.53%), Xingming Han (“Mr. Han”) (4.82%), a PRC individual named Yingjun Jiang (“Mr. Jiang”) (3.22%) and Heilongjiang Hongdoushan Ecology Forest Co., Ltd, (“HEFS”) (10.62%) (Mr. Wang, Madame Qi, Mr. Han, Mr. Jiang and HEFS are collectively referred to as the “Original Shareholders”). Mr. Wang is the President and a director of the Company. Madame Qi is the wife of Mr. Wang and an officer and director of the Company. Mr. Han is an officer and director of the Company. HEFS is owned primarily by Mr. Wang and Madame Qi. | |||||||||
Pursuant to the First Restructure, on February 23, 2010, the Company, through JSJ, entered into an Equity Transfer Agreement (collectively, the “First Transfer Agreements”) with each of the Original Shareholders. Pursuant to the First Transfer Agreements, the terms of which are substantially identical to each other, the Original Shareholders transferred all of their respective ownership in HDS to JSJ for an aggregate RMB45,000,000, which represents the amount of the then registered capital of HDS. As a result of this transaction, HDS became a wholly-owned subsidiary of JSJ. At February 23, 2010, the Company did not have working capital to pay the Original Shareholders this amount and, accordingly, the Company recorded this amount as a liability owed to the Original Shareholders. JSJ and the Original Shareholders also entered into a Supplemental Agreement dated February 26, 2010 (the “First Supplemental Agreement”), pursuant to which JSJ had the right to put the shares of HDS back to the Original Shareholders for the original purchase price of an aggregate RMB45,000,000, in the event that the transaction did not close or PRC governmental approval was not received, within six months following the execution of the First Transfer Agreements. | |||||||||
As of February 23, 2010, Mr. Wang, Madame Qi and Mr. Han (collectively, the “HDS Shareholders”) owned approximately 41.5% of YBP’s common stock (the “Common Stock”) and no other individual shareholder owned more than 2.5% of YBP’s Common Stock. Before, during and after the First Restructure, the HDS Shareholders served as the sole directors and principal executive officers of the Company and are responsible for all decisions and operations of the Company and HDS, and control the assets of the Company and HDS. | |||||||||
On May 10, 2010, JSJ, Mr. Wang, Mr. Jiang and HEFS entered into a Debtor’s and Creditors’ Rights Agreement (the “Creditors’ Agreement”), pursuant to which Mr. Jiang and HEFS assigned their rights, including the right to be paid for the HDS shares transferred by them to JSJ, under their respective First Transfer Agreements, to Mr. Wang, and Mr. Wang assumed the obligations of Mr. Jiang and HEFS under their respective First Transfer Agreements. Before, during and after the First Restructure, the HDS Shareholders served as the sole directors and principal executive officers of the Company. | |||||||||
In October 2010, the Company determined, in consultation with its professional advisors, that the First Restructure did not meet certain technical PRC legal requirements and that the Company would need to be further reorganized (the “Second Restructure”). Accordingly, on October 28, 2010, JSJ and each of the HDS Shareholders entered into new Equity Transfer Agreement (collectively, the “Second Transfer Agreements”), the terms of which are substantially identical to each other, pursuant to which 100% of the common stock of HDS was transferred by JSJ back to the HDS Shareholders for aggregate consideration of RMB45,000,000. Since the consideration of RMB45,000,000 due to the HDS Shareholders in the First Restructure had not yet been paid, pursuant to a Supplemental Agreement to the Second Equity Transfer Agreements dated February 16, 2011, the aggregate RMB45,000,000 amount payable by the HDS Shareholders to JSJ for the return of their HDS common stock in respect of the Second Restructure, was offset against JSJ’s liability to the HDS Shareholders in the same aggregate amount in respect of the First Transfer Agreements, which amount had not yet been paid by JSJ. | |||||||||
As discussed above, Mr. Jiang and HEFS had assigned to Mr. Wang their respective rights and obligations vis-a-vis JSJ resulting from the First Restructure, pursuant to the First Supplemental Agreement and the Creditors’ Agreement, since as of such time Mr. Jiang and HEFS had not yet been paid for the transfer of their interests in HDS to JSJ in the First Restructure in the amount of 3.22% and 10.62% of HDS’s equity interest, respectively. Therefore, in the Second Restructure, pursuant to the Second Transfer Agreements, JSJ transferred to Mr. Wang not only his previous shareholdings in HDS before the First Restructure (representing 62.81% of HDS’s total equity), but also an additional 13.84% of the equity in HDS as a result of Mr. Wang’s being assigned Mr. Jiang’s 3.22% equity interest in HDS and HEFS’s 10.62% equity interest in HDS. | |||||||||
After the foregoing transactions were completed, the HDS Shareholders then owned 100% of the shares of HDS in the following percentages: | |||||||||
Mr. Wang | 76.65 | % | |||||||
Madame Qi | 18.53 | % | |||||||
Mr. Han | 4.82 | % | |||||||
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 RMB10. 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 RMB500,000, 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. | |||||||||
On November 29, 2010, YBP established a wholly-owned subsidiary, Yew Bio-Pharm Holdings Limited (“Yew Bio-Pharm (HK)”), a limited liability company incorporated under the laws of Hong Kong and on January 26, 2011, YBP transferred its ownership in JSJ to Yew Bio-Pharm (HK). | |||||||||
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 December 31, 2014, the Company 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. | |||||||||
On November 4, 2014, HDS established a new subsidiary, Harbin Yew Food Co. Ltd. (HYF), to develop and cultivate wood ear mushroom. The Company plans to operate three production lines, including wood ear mushroom polysaccharide, powder, tea and other packaged wood ear mushroom products. The move marks the Company's entrance into the organic food and functional beverage market. HYF did not have any operation for the year ended December 31, 2014. | |||||||||
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; (3) manufacturing and selling furniture and handicrafts made of yew tree timber; and (4) selling (“wood ear mushroom”) as finished goods. 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 December 31, 2014 and 2013, 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: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash | $ | 446,554 | $ | 1,146,546 | |||||
Accounts receivable | 922,564 | 418,875 | |||||||
Accounts receivable – related party | 340,132 | 377,821 | |||||||
Inventories (current and long-term), net | 12,106,623 | 11,334,233 | |||||||
Prepaid expenses and other assets | 5,363 | 2,388 | |||||||
Prepaid expenses - related parties | 6,600 | 33,213 | |||||||
Property and equipment, net | 814,676 | 966,148 | |||||||
Land use rights and yew forest assets, net | 20,305,822 | 20,953,562 | |||||||
Total assets of VIE | $ | 34,948,334 | $ | 35,232,786 | |||||
Liabilities | |||||||||
Accrued expenses and other payables | $ | 54,265 | $ | 16,294 | |||||
Taxes payable | 8,104 | 9,924 | |||||||
Due to VIE holding companies | 1,417,851 | 1,703,324 | |||||||
Due to related parties | 2,958 | 4,804,661 | |||||||
Total liabilities of VIE | $ | 1,483,178 | $ | 6,534,203 | |||||
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). |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||
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. | |||||||||||||||||
Details of the Company’s subsidiaries and variable interest entities (“VIE”) are as follows: | |||||||||||||||||
Name | Domicile and Date of Incorporation | Registered | Effective | Principal | |||||||||||||
Capital | Ownership | Activities | |||||||||||||||
Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”) | PRC | US$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 | RMB45,000,000 | 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 | |||||||||||||||||
Harbin Yew Food Co., Ltd ("HYF") | PRC | RMB100,000(1) | 100% | Sales of wood ear mushroom | |||||||||||||
4-Nov-14 | |||||||||||||||||
(1) Harbin Yew Food Co. Ltd did not pay the registered capital as of December 31, 2014. | |||||||||||||||||
Method of accounting | |||||||||||||||||
The Company maintains its general ledger and journals with the accrual method accounting for financial reporting purposes. The consolidated financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of consolidated financial statements. | |||||||||||||||||
Use of estimates | |||||||||||||||||
The preparation of consolidated financial statements in accordance with generally accepted accounting principles in the United State of America (“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. Significant estimates include the allowance for obsolete inventory, the classification of short and long-term inventory, the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of long-term assets, write-down in value of inventory and the valuation of stock-based compensation. | |||||||||||||||||
Fair value of financial instruments | |||||||||||||||||
The Company adopted the guidance of Accounting Standards Codification (“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: | |||||||||||||||||
● | Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. | ||||||||||||||||
● | Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other then quoted prices that are observable, and inputs derived from or corroborated by observable market data. | ||||||||||||||||
● | Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. | ||||||||||||||||
The carrying amounts reported in the balance sheets for cash, accounts receivable, accounts receivable – related parties, inventories, prepaid expenses and other assets, prepaid expenses – related parties, accounts payable, accrued expenses and other payables, taxes payable, refundable common stock subscription and due to related parties approximate their fair market value based on the short-term maturity of these instruments. The Company did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2014 and 2013. | |||||||||||||||||
ASC 825-10 “Financial Instruments”, allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments. | |||||||||||||||||
Concentrations of credit risk | |||||||||||||||||
The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. | |||||||||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. Substantially all of the Company’s cash is maintained with state-owned banks within the PRC, and no deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. | |||||||||||||||||
At December 31, 2014 and 2013, the Company’s cash balances by geographic area were as follows: | |||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||
Country: | |||||||||||||||||
United States | $ | 37,354 | 7.7 | % | $ | 8,779 | 0.8 | % | |||||||||
China | 450,586 | 92.3 | % | 1,150,832 | 99.2 | % | |||||||||||
Total cash and cash equivalents | $ | 487,940 | 100 | % | $ | 1,159,611 | 100 | % | |||||||||
Cash | |||||||||||||||||
For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments purchased with original maturities of three months or less and money market accounts to be cash equivalents. | |||||||||||||||||
Accounts receivable | |||||||||||||||||
Accounts receivable are presented net of an allowance for doubtful accounts. If necessary, the Company shall maintain allowances for doubtful accounts for estimated losses. The Company reviews accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. At December 31, 2014 and 2013, the Company has not established, based on a review of its outstanding balances, an allowance for doubtful accounts. | |||||||||||||||||
Inventories | |||||||||||||||||
Inventories, consisting of raw materials, work in process, yew seedlings and finished goods related to the Company’s yew products are stated at the lower of cost or market value utilizing the weighted average method. Raw materials primarily include yew wood used in the production of yew products such as furniture, ornaments, and other products containing yew wood. Finished goods, consisting of yew products include direct materials, direct labor and an appropriate proportion of overhead. | |||||||||||||||||
The Company estimates the amount of the excess inventories by comparing inventory on hand with the estimated sales that can be sold within its normal operating cycle of one year. Any inventory in excess of the Company’s current requirements based on historical and anticipated levels of sales is classified as long-term on its consolidated balance sheets. The Company’s classification of long-term inventory requires it to estimate the portion of inventory that can be realized over the next 12 months. | |||||||||||||||||
To estimate the amount of slow-moving or obsolete inventories, the Company analyzes movement of its products, monitors competing products and technologies and evaluates acceptance of its products. Periodically, the Company identifies inventories that cannot be sold at all or can only be sold at deeply discounted prices. An allowance will be established if management determines that certain inventories may not be saleable. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record reserves for the difference between the carrying cost and the market value. | |||||||||||||||||
In accordance with Accounting Standards Codification (“ASC”) 905, “Agriculture”, our costs of growing Yew seedlings are accumulated until the time of harvest and are reported at the lower of cost or market. | |||||||||||||||||
Property and equipment | |||||||||||||||||
Property and equipment are carried at cost and are depreciated on a straight-line basis (after taking into account their respective estimated residual value) over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. | |||||||||||||||||
The estimated useful lives are as follows: | |||||||||||||||||
Building | 15 years | ||||||||||||||||
Machinery and equipment | 10 years | ||||||||||||||||
Office equipment | 3 years | ||||||||||||||||
Leasehold improvement | 5 years | ||||||||||||||||
Motor vehicles | 4 years | ||||||||||||||||
Land use rights and yew forest assets | |||||||||||||||||
All land in the PRC is owned by the PRC government and cannot be sold to any individual or company. The Company has recorded the amounts paid to the PRC government to acquire long-term interests to utilize land use rights and yew forests. This type of arrangement is common for the use of land in the PRC. Yew trees on land containing yew tree forests will be used to supply raw materials such as branches, leaves and fruit to the Company that will be used to manufacture the Company’s products. The Company amortizes land use rights based on their terms and yew forest assets over the term of the respective land use rights or expected useful lives, which generally ranges from 16 to 50 years. The lease agreements do not have any renewal option and the Company has no further obligations to the lessor. The Company records the amortization of these land use rights and yew forest assets as part of its cost of revenues. | |||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||
In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. For years ended December 31, 2014 and 2013, the Company did not record any impairment charges on long-lived assets. | |||||||||||||||||
Revenue recognition | |||||||||||||||||
The Company generates its revenue from sales of yew seedling products, sales of yew raw materials for medical application, sales of yew craft products, and sales of wood ear mushroom. Pursuant to the guidance of ASC Topic 605 and ASC Topic 360, the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the purchase price is fixed or determinable and collectability is reasonably assured, and no significant obligations remain. | |||||||||||||||||
Stock-based compensation | |||||||||||||||||
The Company accounts for stock options and other equity based compensation issued to employees in accordance with ASC 718 “Stock Compensation”. ASC 718 requires companies to recognize an expense in the statement of income at the grant date of stock options and other equity based compensation issued to employees. The Company accounts for non-employee share-based awards in accordance with ASC 505-50 “Equity-based payments to non-employees”. | |||||||||||||||||
Advertising | |||||||||||||||||
Advertising is expensed as incurred and is included in selling expenses on the accompanying Consolidated Statements of Income and Comprehensive Income. The Company did not incur any advertising expense for the years ended December 31, 2014 and 2013. | |||||||||||||||||
Shipping costs | |||||||||||||||||
Shipping costs are expensed as incurred and included in selling expenses and amount to $91 and $365 for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||
Research and development | |||||||||||||||||
Research and development costs are expensed as incurred. The costs primarily consist of salaries paid for the development and improvement of the Company’s products. Research and development costs of the years ended December 31, 2014 and 2013 were $53,542 and $23,134, respectively, and are included in general and administrative expenses. | |||||||||||||||||
Employee benefits | |||||||||||||||||
The Company’s operations and employees are all located in the PRC. The Company makes mandatory contributions to the PRC government’s health, retirement benefit and unemployment funds in accordance with the relevant Chinese social security laws. The costs of these payments are charged to the same accounts and in the same period as the related salary costs and are not material. | |||||||||||||||||
Income taxes | |||||||||||||||||
The Company is governed by the Income Tax Law of the People’s Republic of China, Hong Kong and the United States. The Company accounts for income tax using the liability method prescribed by ASC 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. | |||||||||||||||||
The Company applied the provisions of ASC 740-10-50, “Accounting for Uncertainty in Income Taxes”, which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of December 31, 2014, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. | |||||||||||||||||
Value added tax | |||||||||||||||||
The Company is subject to value added tax (“VAT”). The applicable VAT rate is 13% for agricultural products and 17% for handicraft products sold in the PRC. The amount of VAT liability is determined by applying the applicable tax rate to the amount of goods sold (output VAT) less VAT accrued on purchases made with the relevant supporting invoices (input VAT). Sales and purchases are recorded net of VAT (the amount of VAT is excluded from revenues and costs) collected and paid as the Company acts as an agent for the government. | |||||||||||||||||
Foreign currency translation | |||||||||||||||||
The accompanying consolidated financial statements are presented in U.S. dollars (“USD”). The reporting currency of the Company is the USD. The functional currency of Yew Bio-Pharm (HK) is the Hong Kong dollar, and the functional currency of the Company’s VIEs and subsidiaries located in the PRC is the RMB. For the subsidiaries whose functional currencies are the Hong Kong dollar or RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income. The foreign currency translation adjustment included in comprehensive income (loss) for the years ended December 31, 2014 and 2013 amounted to $(200,520) and $966,009, respectively. | |||||||||||||||||
All of the Company’s revenue transactions are transacted in the functional currency. The Company does not enter any material transaction in foreign currencies and, accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. | |||||||||||||||||
The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions. | |||||||||||||||||
The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the consolidated financial statements are as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Exchange rate on balance sheet dates: | |||||||||||||||||
USD : RMB exchange rate | 6.1535 | 6.114 | |||||||||||||||
Average exchange rate for the year | |||||||||||||||||
USD : RMB exchange rate | 6.14821 | 6.19817 | |||||||||||||||
The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. In addition, the current foreign exchange control policies applicable in PRC also restrict the transfer of assets or dividends outside the PRC. | |||||||||||||||||
Net income per share of common stock | |||||||||||||||||
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). | |||||||||||||||||
Comprehensive income | |||||||||||||||||
The Company follows ASC 220, “Comprehensive Income” to recognize the elements of comprehensive income. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive income for the years ended December 31, 2014 and 2013 included net income and unrealized gains (losses) from foreign currency translation adjustments. | |||||||||||||||||
Segment reporting | |||||||||||||||||
ASC Topic 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 year ended December 31, 2014, the Company operated in four reportable business segments: (1) the yew tree segment - the cultivation and sale of yew seedlings, yew trees and potted yew trees, (2) the traditional Chinese medicine (“TCM raw materials”) segment - the production and sale of raw materials used for medicinal application in the pharmaceutical industry, (3) the handicrafts segment - the manufacture and sale of furniture and handicrafts made of yew timber, and (4) the wood ear mushroom segment – the sale of wood ear mushroom. | |||||||||||||||||
Related party transactions | |||||||||||||||||
A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities including such person’s immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. | |||||||||||||||||
Collaborative arrangement | |||||||||||||||||
On March 21, 2004, HDS entered into a Joint Venture Planting Agreement with Wuchang City Forestry Bureau (see Note 16), which is considered a collaborative arrangement under U.S. GAAP. The purpose of this arrangement is to share some of the risks and rewards associated with this Joint Venture Planting Agreement. The Company’s current share of profits is 80%. The Company accounts for this collaborative arrangement under ASC 808, “Collaborative Arrangements” and related topics and will record revenue gross as the prime contractor. ASC Topic 808-10-15 defines collaborative arrangements and requires collaborators to present the result of activities for which they act as the principal on a gross basis and report any payments received from (made to) the other collaborators based on other applicable authoritative accounting literature, and in the absence of other applicable authoritative literature, on a reasonable, rational and consistent accounting policy is to be elected. The Company adopted the provisions of ASC 808-10-15. The adoption of this statement did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. For the years ended December 31, 2014 and 2013, the Company has not generated any revenues or activity from this collaborative agreement. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Recent Accounting Pronouncements [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS |
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The Company does not expect the adoption to have a significant impact on its consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from contracts with Customers (Topic 606)”. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets”. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchanged for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. | |
In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period”. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company does not expect the adoption to have a significant impact on its consolidated financial statements. | |
In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendment in the ASU provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Earlier adoption is permitted. The Company does not expect the adoption to have a significant impact on its consolidated financial statements. | |
In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. The amendments in this Update affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: 1. Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities. 2. Eliminate the presumption that a general partner should consolidate a limited partnership. 3. Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. 4. Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The ASU will be effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. | |
Inventories
Inventories | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Inventories [Abstract] | |||||||||||||||||||||||||
INVENTORIES | NOTE 4 – INVENTORIES | ||||||||||||||||||||||||
Inventories consisted of raw materials, work-in-progress, finished goods-handicrafts, yew seedlings, and other trees, which consist 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 December 31, 2014 and 2013, inventories consisted of the following: | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
Current portion | Long-term portion | Total | Current portion | Long-term portion | Total | ||||||||||||||||||||
Raw materials | $ | 120,478 | $ | 2,798,489 | $ | 2,918,967 | $ | 416,519 | $ | 2,608,829 | $ | 3,025,348 | |||||||||||||
Work-in-process | - | 256,227 | 256,227 | 17,446 | - | 17,446 | |||||||||||||||||||
Finished goods - handicrafts | - | 805,438 | 805,438 | 197,842 | 653,785 | 851,627 | |||||||||||||||||||
Yew seedlings | 657,836 | 3,908,854 | 4,566,690 | 457,280 | 6,982,532 | 7,439,812 | |||||||||||||||||||
Other trees | 664,763 | 2,980,719 | 3,645,482 | - | - | - | |||||||||||||||||||
Total | 1,443,078 | 10,749,727 | 12,192,805 | 1,089,087 | 10,245,146 | 11,334,233 | |||||||||||||||||||
Reserve for impairment - handicrafts | - | (86,182 | ) | (86,182 | ) | - | - | - | |||||||||||||||||
Inventories, net | $ | 1,443,078 | $ | 10,663,545 | $ | 12,106,623 | $ | 1,089,087 | $ | 10,245,146 | $ | 11,334,233 | |||||||||||||
The Company recorded reserve for impairment of slow-moving and obsolete inventories in the amount of $86,182 and nil for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property and Equipment [Abstract] | |||||||||
PROPERTY AND EQUIPMENT | NOTE 5 – PROPERTY AND EQUIPMENT | ||||||||
Property and equipment consisted of the following as of December 31, 2014 and 2013: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Buildings and building improvements | $ | 712,861 | $ | 651,716 | |||||
Machinery and equipment | 502,469 | 538,648 | |||||||
Office equipment | 45,341 | 48,163 | |||||||
Leasehold improvement | - | 54,926 | |||||||
Motor vehicles | 632,356 | 659,544 | |||||||
Construction in progress | - | 65,751 | |||||||
1,893,027 | 2,018,748 | ||||||||
Less: accumulated depreciation | (1,036,777 | ) | (985,670 | ) | |||||
Total property and equipment, net | $ | 856,250 | $ | 1,033,078 | |||||
For the years ended December 31, 2014 and 2013, depreciation expenses amounted to $172,446 and $179,857, respectively. |
Land_Use_Rights_And_Yew_Forest
Land Use Rights And Yew Forest Assets | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Land Use Rights and Yew Forest Assets [Abstract] | |||||||||||
LAND USE RIGHTS AND YEW FOREST ASSETS | NOTE 6 – LAND USE RIGHTS AND YEW FOREST ASSETS | ||||||||||
There is no private ownership of land in PRC. Land is owned by the government and the government grants land use rights for specified terms. The following summarizes land use rights acquired by the Company. | |||||||||||
Yew trees on land containing yew tree forests will be used to supply raw materials such as branches and leaves that will be used by the Company’s customers for production of TCM. The Company amortizes land use rights based on their terms and amortizes yew forest assets over the term of the respective land use rights or expected useful lives. The lease agreements do not have any renewal option and the Company has no further obligations to the lessor. The Company records the amortization of these land use rights and yew forest assets as part of its cost of revenues. For the years ended December 31, 2014 and 2013, amortization expense amounted to $510,363 and $381,659, respectively. | |||||||||||
As of December 31, 2014, land use rights and yew forest assets consisted of the following: | |||||||||||
Description | Useful life | Acquisition date | Expiration date | Metric acres ("Mu") | |||||||
Parcel A | Developing forest land | 50 | Mar-04 | Mar-54 | 125 | ||||||
Parcel B | Developing forest land | 50 | Apr-04 | Apr-54 | 400 | ||||||
Parcel C | Yew tree forests | 30 | Mar-05 | Mar-35 | 361 | ||||||
Parcel D | Yew tree forests and underlying land | 50 | Jan-08 | Dec-58 | 290 | ||||||
Parcel E | Yew tree forests and underlying land | 45 | Mar-10 | Mar-55 | 15,865 | ||||||
Parcel F | Undeveloped forest land | 16 | Jul-12 | Mar-28 | 148 | ||||||
Parcel G | Yew tree forests and underlying land | 22 | Apr-06 | Jan-28 | 5 | ||||||
Parcel H | Yew tree forests and underlying land | 38 | Nov-13 | Nov-51 | 2,565 | ||||||
On November 15, 2013, HDS entered into a Forest and Land Use Right Acquisition Contract with Heilongjiang Zishan Technology Stock Co., Ltd. (“ZTC”) to acquire the yew tree forests and land use right of underlying land located at Wuchang Pingfangdian Forestry Centre in Heilongjiang Province, PRC. The acquisition is treated as a transaction between entities under common control. See Note 9 (c) for more details. | |||||||||||
At December 31, 2014 and 2013, land use rights and yew forest assets consisted of the following: | |||||||||||
Useful Life | December 31, | December 31, | |||||||||
2014 | 2013 | ||||||||||
Land use rights and yew forest assets | 16-50 years | $ | 21,949,557 | $ | 22,094,697 | ||||||
Less: accumulated amortization | (1,643,736 | ) | (1,141,135 | ) | |||||||
Land use rights and yew forest assets, net | $ | 20,305,821 | $ | 20,953,562 | |||||||
Amortization of land use rights and yew forest assets attributable to future periods is as follows: | |||||||||||
Years ended December 31: | Amount | ||||||||||
2015 | $ | 510,364 | |||||||||
2016 | 510,364 | ||||||||||
2017 | 510,364 | ||||||||||
2018 | 510,364 | ||||||||||
2019 | 510,364 | ||||||||||
2020 and thereafter | 17,754,001 | ||||||||||
Total | $ | 20,305,821 |
Accrued_Expenses_and_Other_Pay
Accrued Expenses and Other Payables | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accrued Expenses and Other Payables [Abstract] | |||||||||
ACCRUED EXPENSES AND OTHER PAYABLES | NOTE 7 – ACCRUED EXPENSES AND OTHER PAYABLES | ||||||||
At December 31, 2014 and 2013, accrued expenses and other payables consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued wage | $ | 29,427 | $ | 17,821 | |||||
Other | 55,295 | 118,892 | |||||||
Total | $ | 84,722 | $ | 136,713 |
Taxes
Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Taxes [Abstract] | |||||||||
TAXES | NOTE 8 – 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 December 31, 2014 and 2013. | |||||||||
The Company’s subsidiaries and VIE, JSJ, HYF and HDS, respectively, 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%. However, HDS has been named as a leading enterprise in the agricultural industry and awarded with a tax exemption through December 31, 2058 with an exception of handicrafts sold, which is not within the scope of agricultural area. JSJ is a holding company and subject to regular corporate income tax rate of 25%, and has no operation profit for tax liabilities. HYF did not have any operation for the year ended December 31, 2014. | |||||||||
Income before income tax expenses of $5,025,996 and $4,160,396 for the years ended December 31, 2014 and 2013, respectively, was attributed to subsidiaries and VIE with operations in China. HDS, JSJ and HYF recorded no income tax expense for the years ended December 31, 2014 and 2013 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 JSJ has been incurring net losses and HYF did not have any operation for the year ended December 31, 2014. | |||||||||
The combined effects of the income tax expense exemptions and tax reductions available to the Company for the years ended December 31, 2014 and 2013 are as follows: | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Tax exemption effect | $ | 1,249,618 | $ | 1,035,909 | |||||
Tax reduction due to loss carry-forwards | 9,501 | 8,152 | |||||||
Loss not subject to income tax | (2,620 | ) | (3,962 | ) | |||||
Basic net income per share effect | $ | (0.02 | ) | $ | (0.02 | ) | |||
Diluted net income per share effect | $ | (0.02 | ) | $ | (0.02 | ) | |||
The table below summarizes the difference between the U.S. statutory federal tax rate and the Company’s effective tax rate for the years ended December 31, 2014 and 2013: | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
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 | - | - | |||||||
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 and wood ear mushroom segment, which only represent a small portion of net revenues. | |||||||||
The Company has incurred net operating loss for income tax purposes for the years ended December 31, 2014 and 2013. The net operating loss carry-forwards for U.S. income tax purposes amounted to $4,000,246 and $3,258,426 at December 31, 2014 and 2013, respectively, which may be available to reduce future years’ taxable income. These carry forwards will expire, if not utilized, through 2034. 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 December 31, 2014 and 2013. The valuation allowance at December 31, 2014 and 2013 was $1,360,084 and $1,107,865, respectively. The net change in the valuation allowance was an increase of $252,219 and $88,626 during the years ended December 31, 2014 and 2013, respectively. Management reviews this valuation allowance periodically and makes 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 December 31, 2014 and 2013, are as follows: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
U.S. tax benefit of net operating loss carry forward | $ | 1,360,084 | $ | 1,107,865 | |||||
Valuation allowance | (1,360,084 | ) | (1,107,865 | ) | |||||
Net deferred tax assets | $ | - | $ | - | |||||
For U.S. income tax purposes, the Company has cumulative undistributed earnings of foreign subsidiary and VIE of approximately $24.7 million and $20.1 million as of December 31, 2014 and 2013, 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. | |||||||||
ASC 740 requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. The management evaluated the Company’s tax positions and considered that no provision for uncertainty in income taxes was necessary as of December 31, 2014 and 2013. | |||||||||
(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 | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Stockholders' Equity [Abstract] | |||||||||||||||||||||||
STOCKHOLDERS' EQUITY | NOTE 9 – STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||
(a) Common Stock | |||||||||||||||||||||||
On July 22, 2014, the Company entered into a Service Provider Agreement (the “SPA”) with a service provider to commence service on July 22, 2014 for a period of three years. Pursuant to the SPA, the Company agreed to issue to the service provider 1,250,000 shares of its Rule 144 restricted common stock for the service period. The shares are payable in 875,000 shares of its restricted common stock on or before July 22, 2014 for the first year of service under the SPA and 375,000 shares of its restricted common stock to be issued on or before July 22, 2015, for the second and third year of service under the SPA. Since 875,000 shares were issued on July 22, 2014 and were non-forfeitable, the Company determined the fair value of these shares to be $131,250 using the stock price on July 22, 2014 and fully expensed the amount upon the issuance of shares. For the year ended December 31, 2014, a total of $147,894 was expensed under the SPA. | |||||||||||||||||||||||
On July 22, 2014, the Company entered into a Consulting Agreement (the “Agreement”) with a consultant for a period of three years. Pursuant to the Agreement, the Company agreed to issue to the consultant 1,250,000 shares of its Rule 144 restricted common stock for the service period. The consultant will provide financing and certain consultation services to the Company. The fair value of these common shares was determined to be $187,500 and was fully recognized upon the share issuance. | |||||||||||||||||||||||
A total of $335,394 was recognized as the fair value of the service received from the third-party service providers for the year ended December 31, 2014. | |||||||||||||||||||||||
(b) Stock Options | |||||||||||||||||||||||
On July 18, 2014, the Company’s board of directors in lieu of an established compensation committee granted options pursuant to the Corporation’s 2012 Equity Incentive Plan to two directors and one of its employees (the “Optionees I”). Within the stock option agreement, each of the Optionees I was issued 200,000 shares of common stock of the Company at an exercise price of $0.20 per share. The option has a term of four years and expires on August 1, 2018 from August 1, 2014, vesting commencement date. The options vest over a three-year time period from August 1, 2014, and 30%, 35%, and 35% of the total shares granted shall vest and become exercisable 12, 24, and 36 months after the initial vesting commencement date. | |||||||||||||||||||||||
On November 18, 2014, the Company’s board of directors in lieu of an established compensation committee granted options pursuant to the Corporation’s 2012 Equity Incentive Plan to the Company’s employees (the “Optionees II”). Within the stock option agreement, each of the Optionees II was issued shares of common stock of the Company at an exercise price of $0.23 per share. There are three types of term for the subject stock options granted. (1) The option has a term of four years starting from November 18, 2014, the vesting commencement date, and expires on November 18, 2018. The options vest over a three-year time period from November 18, 2014, and 30%, 35%, and 35% of the total shares granted shall vest and become exercisable 12, 24, and 36 months after the initial vesting commencement date. (2) The option has a term of two years starting from November 18, 2014, the vesting commencement date, and expires on November 18, 2016. The options vest over a one-year time period from November 18, 2014, and 100% of the total shares granted shall vest and become exercisable 12 months after the initial vesting commencement date. (3) The option has a term of three years starting from November 18, 2014, the vesting commencement date, and expires on November 18, 2017. The options vest over a two-year time period, and 50% and the remaining 50% of the total shares shall vest and become exercisable 12 and 24 months respectively after the initial vesting commencement date. | |||||||||||||||||||||||
The fair value of the Company’s option as of the date of grant for the years ended December 31, 2014 and 2013 was determined using the following management assumptions: | |||||||||||||||||||||||
Name of Optionee | Expected Terms | Computed Volatility | Risk free Interest Rate (%) | Expected Dividends | Fair Value | ||||||||||||||||||
(In Years) | |||||||||||||||||||||||
HengJiang Pang | 3.025 | 202 | % | 0.97 | - | 36,906 | |||||||||||||||||
Tong Liu | 3.025 | 202 | % | 0.97 | - | 36,906 | |||||||||||||||||
Xuehai Wu | 3.025 | 202 | % | 0.97 | - | 36,906 | |||||||||||||||||
Lifan Liu | 1.5 | 212 | % | 0.14 | - | 38,873 | |||||||||||||||||
Weiran Lu | 1.5 | 212 | % | 0.14 | - | 38,873 | |||||||||||||||||
Junzhong Wu | 1.5 | 212 | % | 0.14 | - | 19,437 | |||||||||||||||||
Guobin Zhou | 1.5 | 212 | % | 0.14 | - | 19,437 | |||||||||||||||||
Binbin Lou | 1.5 | 212 | % | 0.14 | - | 38,873 | |||||||||||||||||
Wei Zhang | 1.5 | 212 | % | 0.14 | - | 38,873 | |||||||||||||||||
Songshan Zhang | 1.5 | 212 | % | 0.14 | - | 38,873 | |||||||||||||||||
Bingtao Li | 1.5 | 212 | % | 0.14 | - | 19,437 | |||||||||||||||||
Jianyi Yang | 1.5 | 212 | % | 0.14 | - | 23,324 | |||||||||||||||||
Jing Wang | 1.5 | 212 | % | 0.14 | - | 19,437 | |||||||||||||||||
Yunli Pei | 1.5 | 212 | % | 0.14 | - | 38,873 | |||||||||||||||||
Chunmei Xu | 1.5 | 212 | % | 0.14 | - | 19,437 | |||||||||||||||||
Donghui Zhao | 1.5 | 212 | % | 0.14 | - | 19,437 | |||||||||||||||||
Xiefeng Liu | 2.25 | 212 | % | 0.53 | - | 20,734 | |||||||||||||||||
Lixin Liu | 2.25 | 212 | % | 0.53 | - | 16,587 | |||||||||||||||||
Jie Zhang | 2.25 | 212 | % | 0.53 | - | 41,468 | |||||||||||||||||
Jilong Yin | 2.25 | 212 | % | 0.53 | - | 20,734 | |||||||||||||||||
Long Deng | 2.25 | 212 | % | 0.53 | - | 20,734 | |||||||||||||||||
Shiyi Li | 3.025 | 212 | % | 0.96 | - | 12,886 | |||||||||||||||||
Xingli Han | 3.025 | 212 | % | 0.96 | - | 51,542 | |||||||||||||||||
Yang Jiang | 3.025 | 212 | % | 0.96 | - | 12,886 | |||||||||||||||||
Chao Liu | 3.025 | 212 | % | 0.96 | - | 21,476 | |||||||||||||||||
Jiaqi Lv | 3.025 | 212 | % | 0.96 | - | 21,476 | |||||||||||||||||
Shouhua Zhang | 3.025 | 212 | % | 0.96 | - | 25,771 | |||||||||||||||||
Lianfa Sun | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Jinsong Lv | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Anna Tang | 3.025 | 212 | % | 0.96 | - | 12,886 | |||||||||||||||||
Hong Li | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Siyuan Wang | 3.025 | 212 | % | 0.96 | - | 150,332 | |||||||||||||||||
Xingming Han | 3.025 | 212 | % | 0.96 | - | 150,332 | |||||||||||||||||
Yicheng Wang | 3.025 | 212 | % | 0.96 | - | 150,332 | |||||||||||||||||
Yuqi Mao | 3.025 | 212 | % | 0.96 | - | 150,332 | |||||||||||||||||
Jimin Lu | 3.025 | 212 | % | 0.96 | - | 12,886 | |||||||||||||||||
Jinguo Wang | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Xue Wang | 3.025 | 212 | % | 0.96 | - | 21,476 | |||||||||||||||||
Ping Qi | 3.025 | 212 | % | 0.96 | - | 21,476 | |||||||||||||||||
Weihong Zhang | 3.025 | 212 | % | 0.96 | - | 21,476 | |||||||||||||||||
Hongrun Wang | 3.025 | 212 | % | 0.96 | - | 21,476 | |||||||||||||||||
Zhiling Wang | 3.025 | 212 | % | 0.96 | - | 30,066 | |||||||||||||||||
Zhigang Wang | 3.025 | 212 | % | 0.96 | - | 30,066 | |||||||||||||||||
Zhimin Wang | 3.025 | 212 | % | 0.96 | - | 30,066 | |||||||||||||||||
Kaiming Guo | 3.025 | 212 | % | 0.96 | - | 12,886 | |||||||||||||||||
Tinghua Xu | 3.025 | 212 | % | 0.96 | - | 12,886 | |||||||||||||||||
Shaoming Geng | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Jing Sun | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Fengping Dong | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Stock option activities for the years ended December 31, 2014 and 2013 are summarized in the following table. None of the options issued during the year ended December 31, 2014 were vested as of the balance sheet date. | |||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | ||||||||||||||||||||
Stock | Average | Stock | Average | ||||||||||||||||||||
Options | Exercise Price | Options | Exercise Price | ||||||||||||||||||||
Balance at beginning of year | 22,805,512 | $ | 0.22 | 22,805,512 | $ | 0.22 | |||||||||||||||||
Issued | 4,400,000 | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | |||||||||||||||||||
Forfeited | - | - | - | - | |||||||||||||||||||
Balance at end of year | 27,205,512 | $ | 0.26 | 22,805,512 | $ | 0.22 | |||||||||||||||||
Options exercisable at end of year | 22,805,512 | $ | 0.22 | 22,805,512 | $ | 0.22 | |||||||||||||||||
The following table summarizes the shares of the Company's common stock issuable upon exercise of options outstanding at December 31, 2014: | |||||||||||||||||||||||
Stock Options Outstanding | Stock Options Exercisable | ||||||||||||||||||||||
Range of | Number | Weighted Average | Weighted | Number | Weighted | ||||||||||||||||||
Exercise Price | Outstanding at | Remaining | Average | Exercisable at | Average | ||||||||||||||||||
December 31, | Contractual Life | Exercise Price | December 31, | Exercise Price | |||||||||||||||||||
2014 | (Years) | 2014 | |||||||||||||||||||||
$ | 0.20-0.23 | 27,205,512 | 3.01 | $ | 0.26 | 22,805,512 | $ | 0.22 | |||||||||||||||
The aggregate intrinsic value amounted to $2,150,441 and $1,824,441 for outstanding stock options and exercisable stock options, respectively, which is based upon the Company’s closing stock price of $0.3 as of December 31, 2014, which would have been received by the option holders had all option holders exercised their option awards as of that date. Stock option expense recognized during the year ended December 31, 2014 amounted to $166,222. | |||||||||||||||||||||||
There were no stock warrants issued, terminated/forfeited and exercised during the year ended December 31, 2014. | |||||||||||||||||||||||
(c) Adjustment to Additional-Paid-In-Capital | |||||||||||||||||||||||
On November 15, 2013, HDS entered into a Forest and Land Use Right Acquisition Contract of Wuchang Erhexiang Pingfangdian Forestry Centre 15th Compartments (the “Wuchang Pingfangdian Forestry Centre Contract”) with ZTC. | |||||||||||||||||||||||
Pursuant to the Wuchang Pingfangdian Forestry Centre Contract, HDS acquired 2,565 mu of yew tree forests and land use right of the underlying land located at Wuchang Pingfangdian Forestry Centre in Helongjiang Province, PRC. The term of the contract is 38 years, through November 7, 2051. During the term of the Wuchang Pingfangdian Forestry Centre Contract, HDS plans to harvest cut and replant the trees, sell the harvest cutting logs, promote the growth of the young trees accordingly, as well as plant yew trees of five years old or above based on the condition of the harvest cutting. | |||||||||||||||||||||||
Payments made by the Company under the Wuchang Pingfangdian Forestry Centre Contract total RMB47.2 million (approximately $7.7 million), payable as follows: | |||||||||||||||||||||||
● RMB21.2 million (approximately $3.5 million) on or before December 31, 2013. | |||||||||||||||||||||||
● RMB26.0 million (approximately $4.3 million) on or before May 31, 2015. | |||||||||||||||||||||||
Since the assets purchase occurred between entities under common control, HDS recorded the assets received at historical carrying costs recorded by ZTC. The difference of $2,338,212 between the actual contract price and carrying costs is reflected as a reduction of shareholders’ equity (Additional paid-in capital). As of December 31, 2013, the assets purchased were transferred to HDS, and the amount due to ZTC is approximately $4.8 million. This amount was paid in full as of December 31, 2014. |
Earnings_per_Share
Earnings per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings per Share [Abstract] | |||||||||
EARNINGS PER SHARE | NOTE 10 – EARNINGS PER SHARE | ||||||||
The following table presents a reconciliation of basic and diluted net income per share for the years ended December 31, 2014 and 2013: | |||||||||
For the Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Net income available to common stockholders for basic and diluted net income per share of common stock | $ | 4,284,177 | $ | 3,899,730 | |||||
Weighted average common stock outstanding – basic | 50,948,973 | 50,000,000 | |||||||
Effect of dilutive securities: | |||||||||
Non-vested restricted common stock | 41,757 | - | |||||||
Stock options issued to directors/officers/employees | 11,804,986 | - | |||||||
Weighted average common stock outstanding – diluted | 62,795,716 | 50,000,000 | |||||||
Net income per common share – basic | $ | 0.08 | $ | 0.08 | |||||
Net income per common share – diluted | $ | 0.07 | $ | 0.08 |
Concentrations_of_Credit_Risk_
Concentrations of Credit Risk and Major Customers | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Concentrations of Credit Risk and Major Customers [Abstract] | |||||||||
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | NOTE 11 – CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | ||||||||
Customers | |||||||||
For the years ended December 31, 2014 and 2013, customers accounting for 10% or more of the Company’s revenue were as follows: | |||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
Customer | 2014 | 2013 | |||||||
A (Yew Pharmaceutical, a related party) | 26.78 | % | * | % | |||||
B | 16.18 | % | * | % | |||||
C | * | % | 17.23 | % | |||||
* Less than 10% | |||||||||
The three largest customers accounted for 36% and 68% of the Company’s total outstanding accounts receivable at December 31, 2014 and 2013, respectively, of which Heilongjiang Yew Pharmaceutical Co., Ltd., (“Yew Pharmaceutical”), a related party, accounted for 27% and 47% of total outstanding accounts receivable, respectively. | |||||||||
Suppliers | |||||||||
For the years ended December 31, 2014 and 2013, suppliers accounting for 10% or more of the Company’s purchase were as follows: | |||||||||
For the Years Ended December 31, | |||||||||
Supplier | 2014 | 2013 | |||||||
A | 19 | % | * | % | |||||
B | 15 | % | * | % | |||||
C | * | % | 98 | % | |||||
The two largest suppliers accounted for 34% of the Company’s total purchase for the year ended December 31, 2014 and the Company did not have any accounts payable with these suppliers at December 31, 2014. | |||||||||
For the year ended December 31, 2013, the Company did not make any significant purchases. For year ended December 31, 2013, one supplier accounted for 98% of the Company’s purchases and the Company did not have any accounts payable with this supplier at December 31, 2013. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
RELATED PARTY TRANSACTIONS | NOTE 12 – RELATED PARTY TRANSACTIONS | ||||||||
In addition to several of the Company’s officers and directors, the Company conducted transactions 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 Pharmaceutical 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 that will be used by Yew Pharmaceutical to make traditional Chinese medicines and other pharmaceutical products, at price of RMB 1,000,000 (approximately $158,000) per metric ton. In addition, the Company entered into a series of wood ear mushroom selling agreements with Pharmaceuticals, pursuant to which the Company sells wood ear mushroom collected from local peasants to Yew Pharmaceuticals for manufacturing of wood ear mushroom products. | |||||||||
For the years ended December 31, 2014 and 2013, total sales to Yew Pharmaceutical under the above agreement amounted to $2,069,225 and $1,550,458, respectively. | |||||||||
At December 31, 2014 and 2013, the Company had $340,132 and $377,821 accounts receivable from Yew Pharmaceutical, respectively. | |||||||||
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 leased 361 mu 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 years ended December 31, 2014 and 2013, rent expense related to the ZTC Lease amounted to $26,422 and $26,209, respectively. At December 31, 2014 and 2013, prepaid rent to ZTC amounted to $6,600 and $33,212 which was included in prepaid expenses – related parties on the accompanying consolidated balance sheets. | |||||||||
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 RMB15,000 (approximately $2,000) are due for each of the term. The term of the Office Lease is 15 years and expires on December 31, 2025. For the years ended December 31, 2014 and 2013, rent expense related to the Office Lease amounted to $2,440 and $2,420, respectively. | |||||||||
On July 1, 2012, the Company entered into a lease for office space with Mr. Wang (the “JSJ Lease”). Pursuant to the JSJ Lease, JSJ leases approximately 30 square meter of office space from Mr. Wang in Harbin. Rent under the JSJ Lease is RMB10,000 (approximately $1,600) annually. The term of the JSJ Lease is three years and expires on June 30, 2015. For the years ended December 31, 2014 and 2013, rent expense related to the JSJ Lease amounted to $1,626 and $1,613, respectively. At December 31, 2014, rent payable to Mr. Wang amounted to $813, which was included in other payable - related parties on the accompanying consolidated balance sheet. At December 31, 2013, prepaid rent to Mr. Wang amounted to $819, which was included in prepaid expenses - related parties on the accompanying consolidated balance sheet. | |||||||||
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 years ended December 31, 2014 and 2013, aggregated approximately $16,078 and $10,336, respectively. The space provided by Mr. Wang to be used 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 the Company paid to third parties for expenses related to the property is not material. | |||||||||
At December 31, 2014 and 2013, the total prepaid rent for the above operating leases with related parties amounted to $5,787 and $34,031, respectively, which amount was included in prepaid expenses-related party on the accompanying consolidated balance sheets. | |||||||||
Future minimum rental payments required under the related parties operating lease are as follows: | |||||||||
Years Ended December 31: | |||||||||
2015 | $ | 135,365 | |||||||
2016 | 2,440 | ||||||||
2017 | 2,440 | ||||||||
2018 | 2,440 | ||||||||
2019 | 2,440 | ||||||||
Thereafter | 410,973 | ||||||||
Total | $ | 556,098 | |||||||
Loan Made to a Related Party | |||||||||
On January 15, 2014, the Company entered into a loan agreement with Yew Pharmaceutical pursuant to which, the Company agreed to lend Yew Pharmaceutical RMB360,000 ($58,400). The proceeds of the loan would be utilized by Yew Pharmaceutical to purchase inspection machinery and equipment. Under the agreement, Yew Pharmaceutical, upon its final inspection of machinery and equipment, had four months to pay off the entire loan to the Company. The duration of the loan agreement started from January 15, 2014 through May 15, 2014. As of December 31, 2014, the loan was paid in full by Yew Pharmaceutical. | |||||||||
Due to Related Parties | |||||||||
The Company’s officers, directors and related parties, from time to time, 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 December 31, 2014 and 2013 was as follows: | |||||||||
Name of related parties | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Zhiguo Wang and other shareholders | $ | 45,040 | $ | 47,726 | |||||
ZTC | - | 4,802,911 | |||||||
Total | $ | 45,040 | $ | 4,850,637 | |||||
Amount due to ZTC was incurred in connection with acquisition of yew tree forests and land use right of underlying land. The acquisition was treated as a transaction between entities under common control. See Note 9 (c) for more details. | |||||||||
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 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 RMB200,000 (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, we 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 December 31, 2014, 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 | 12 Months Ended |
Dec. 31, 2014 | |
Statutory Reserves [Abstract] | |
STATUTORY RESERVES | NOTE 13 – 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 years ended December 31, 2014 and 2013, the Company appropriated to the statutory surplus reserve in the amount of $503,648 and $417,624, respectively. The accumulated balance of the statutory reserve of the Company as of December 31, 2014 and 2013 was $3,100,766 and $2,597,118, respectively. | |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||||||||
SEGMENT INFORMATION | NOTE 14 – 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. | |||||||||||||||||||||||||
For the years ended December 31, 2014 and 2013, the Company operated in four 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; (3) the handicrafts segment, consisting of the manufacture and sale of handicrafts and furniture made of yew timber; and (4) the wood ear mushroom segment, consisting of the sale of wood ear mushroom. 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 years ended December 31, 2014 and 2013 was as follows: | |||||||||||||||||||||||||
For the Years Ended, | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
TCM raw materials | $ | 4,043,290 | $ | 4,170,748 | |||||||||||||||||||||
Yew trees | 3,208,643 | 3,011,728 | |||||||||||||||||||||||
Handicrafts | 173,412 | 257,172 | |||||||||||||||||||||||
Wood ear mushroom | 301,231 | - | |||||||||||||||||||||||
$ | 7,726,576 | $ | 7,439,648 | ||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||
TCM raw materials | $ | 726,988 | $ | 1,117,407 | |||||||||||||||||||||
Yew trees | 1,004,371 | 1,097,140 | |||||||||||||||||||||||
Handicrafts | 152,794 | 192,523 | |||||||||||||||||||||||
Wood ear mushroom | 252,444 | - | |||||||||||||||||||||||
$ | 2,136,597 | $ | 2,407,400 | ||||||||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||||
TCM raw materials | $ | 491,838 | $ | 370,564 | |||||||||||||||||||||
Yew trees | 65,221 | 24,586 | |||||||||||||||||||||||
Handicrafts | 23,761 | 22,900 | |||||||||||||||||||||||
Wood ear mushroom | - | - | |||||||||||||||||||||||
Other | 101,989 | 143,466 | |||||||||||||||||||||||
$ | 682,809 | $ | 561,516 | ||||||||||||||||||||||
Net income (loss): | |||||||||||||||||||||||||
TCM raw materials | $ | 3,316,304 | $ | 3,053,341 | |||||||||||||||||||||
Yew trees | 2,204,272 | 1,914,257 | |||||||||||||||||||||||
Handicrafts | 109,029 | 64,649 | |||||||||||||||||||||||
Wood ear mushroom | 48,787 | - | |||||||||||||||||||||||
Other | (1,394,215 | ) | (1,132,515 | ) | |||||||||||||||||||||
$ | 4,284,177 | $ | 3,899,732 | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
TCM raw materials | Yew trees | Handicrafts | Wood ear mushroom | Other | Total | ||||||||||||||||||||
Identifiable long-lived assets, net | $ | 19,973,775 | $ | 915,551 | $ | 63,319 | $ | - | $ | 209,246 | $ | 21,162,071 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
TCM raw materials | Yew trees | Handicrafts | Wood ear mushroom | Other | Total | ||||||||||||||||||||
Identifiable long-lived assets, net | $ | 20,953,562 | $ | 632,583 | $ | 94,124 | $ | - | $ | 306,371 | $ | 21,986,640 | |||||||||||||
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. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies [Abstract] | |||||||||
COMMITMENTS AND CONTINGENCIES | NOTE 11 – CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | ||||||||
Customers | |||||||||
For the years ended December 31, 2014 and 2013, customers accounting for 10% or more of the Company’s revenue were as follows: | |||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
Customer | 2014 | 2013 | |||||||
A (Yew Pharmaceutical, a related party) | 26.78 | % | 20.84 | % | |||||
B | 16.18 | % | * | % | |||||
C | * | % | 17.23 | % | |||||
* Less than 10% | |||||||||
The three largest customers accounted for 36% and 68% of the Company’s total outstanding accounts receivable at December 31, 2014 and 2013, respectively, of which Heilongjiang Yew Pharmaceutical Co., Ltd., (“Yew Pharmaceutical”), a related party, accounted for 27% and 47% of total outstanding accounts receivable, respectively. | |||||||||
Suppliers | |||||||||
For the years ended December 31, 2014 and 2013, suppliers accounting for 10% or more of the Company’s purchase were as follows: | |||||||||
For the Years Ended December 31, | |||||||||
Supplier | 2014 | 2013 | |||||||
A | 19 | % | * | % | |||||
B | 15 | % | * | % | |||||
C | * | % | 98 | % | |||||
The two largest suppliers accounted for 34% of the Company’s total purchase for the year ended December 31, 2014 and the Company did not have any accounts payable with these suppliers at December 31, 2014. | |||||||||
For the year ended December 31, 2013, the Company did not make any significant purchases. For year ended December 31, 2013, one supplier accounted for 98% of the Company’s purchases and the Company did not have any accounts payable with this supplier at December 31, 2013. |
Joint_Venture_Agreement_for_Pl
Joint Venture Agreement for Planting of Yew Trees | 12 Months Ended |
Dec. 31, 2014 | |
Joint Venture Agreement For Planting Of Yew Trees [Abstract] | |
JOINT VENTURE AGREEMENT FOR PLANTING OF YEW TREES | NOTE 16 – JOINT VENTURE AGREEMENT FOR PLANTING OF YEW TREES |
On March 21, 2004, HDS entered into a Joint Venture Planting Agreement (the “Joint Venture Agreement”) with Wuchang City Forestry Bureau (the “Forest Bureau”), pursuant to which the Forest Bureau has given HDS access to 1,000,000 mu of forest land located in Wuchang City to develop yew tree forests and produce yew seedlings. Pursuant to the Joint Venture Agreement, the Company is required to plant yew trees on this land from 2004 to 2034. Any profits from the planting of yew trees and other agriculture shall be distributed 80% to the Company and 20% to the Forest Bureau. For the years ended December 31, 2014 and 2013, the Company has not generated any revenues or activity on this land. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||
Principles of consolidation | 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. | |||||||||||||||||
Details of the Company’s subsidiaries and variable interest entities (“VIE”) are as follows: | |||||||||||||||||
Name | Domicile and Date of Incorporation | Registered | Effective | Principal | |||||||||||||
Capital | Ownership | Activities | |||||||||||||||
Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”) | PRC | US$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 | RMB45,000,000 | 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 | |||||||||||||||||
Harbin Yew Food Co., Ltd ("HYF") | PRC | RMB100,000(1) | 100% | Sales of wood ear mushroom | |||||||||||||
4-Nov-14 | |||||||||||||||||
(1) Harbin Yew Food Co. Ltd did not pay the registered capital as of December 31, 2014. | |||||||||||||||||
Method of accounting | Method of accounting | ||||||||||||||||
The Company maintains its general ledger and journals with the accrual method accounting for financial reporting purposes. The consolidated financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of consolidated financial statements. | |||||||||||||||||
Use of estimates | Use of estimates | ||||||||||||||||
The preparation of consolidated financial statements in accordance with generally accepted accounting principles in the United State of America (“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. Significant estimates include the allowance for obsolete inventory, the classification of short and long-term inventory, the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of long-term assets, write-down in value of inventory and the valuation of stock-based compensation. | |||||||||||||||||
Fair value of financial instruments | Fair value of financial instruments | ||||||||||||||||
The Company adopted the guidance of Accounting Standards Codification (“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: | |||||||||||||||||
● | Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. | ||||||||||||||||
● | Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other then quoted prices that are observable, and inputs derived from or corroborated by observable market data. | ||||||||||||||||
● | Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. | ||||||||||||||||
The carrying amounts reported in the balance sheets for cash, accounts receivable, accounts receivable – related parties, inventories, prepaid expenses and other assets, prepaid expenses – related parties, accounts payable, accrued expenses and other payables, taxes payable, refundable common stock subscription and due to related parties approximate their fair market value based on the short-term maturity of these instruments. The Company did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2014 and 2013. | |||||||||||||||||
ASC 825-10 “Financial Instruments”, allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments. | |||||||||||||||||
Concentrations of credit risk | Concentrations of credit risk | ||||||||||||||||
The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. | |||||||||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. Substantially all of the Company’s cash is maintained with state-owned banks within the PRC, and no deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. | |||||||||||||||||
At December 31, 2014 and 2013, the Company’s cash balances by geographic area were as follows: | |||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||
Country: | |||||||||||||||||
United States | $ | 37,354 | 7.7 | % | $ | 8,779 | 0.8 | % | |||||||||
China | 450,586 | 92.3 | % | 1,150,832 | 99.2 | % | |||||||||||
Total cash and cash equivalents | $ | 487,940 | 100 | % | $ | 1,159,611 | 100 | % | |||||||||
Cash | Cash | ||||||||||||||||
For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments purchased with original maturities of three months or less and money market accounts to be cash equivalents. | |||||||||||||||||
Accounts receivable | Accounts receivable | ||||||||||||||||
Accounts receivable are presented net of an allowance for doubtful accounts. If necessary, the Company shall maintain allowances for doubtful accounts for estimated losses. The Company reviews accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. At December 31, 2014 and 2013, the Company has not established, based on a review of its outstanding balances, an allowance for doubtful accounts. | |||||||||||||||||
Inventories | Inventories | ||||||||||||||||
Inventories, consisting of raw materials, work in process, yew seedlings and finished goods related to the Company’s yew products are stated at the lower of cost or market value utilizing the weighted average method. Raw materials primarily include yew wood used in the production of yew products such as furniture, ornaments, and other products containing yew wood. Finished goods, consisting of yew products include direct materials, direct labor and an appropriate proportion of overhead. | |||||||||||||||||
The Company estimates the amount of the excess inventories by comparing inventory on hand with the estimated sales that can be sold within its normal operating cycle of one year. Any inventory in excess of the Company’s current requirements based on historical and anticipated levels of sales is classified as long-term on its consolidated balance sheets. The Company’s classification of long-term inventory requires it to estimate the portion of inventory that can be realized over the next 12 months. | |||||||||||||||||
To estimate the amount of slow-moving or obsolete inventories, the Company analyzes movement of its products, monitors competing products and technologies and evaluates acceptance of its products. Periodically, the Company identifies inventories that cannot be sold at all or can only be sold at deeply discounted prices. An allowance will be established if management determines that certain inventories may not be saleable. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record reserves for the difference between the carrying cost and the market value. | |||||||||||||||||
In accordance with Accounting Standards Codification (“ASC”) 905, “Agriculture”, our costs of growing Yew seedlings are accumulated until the time of harvest and are reported at the lower of cost or market. | |||||||||||||||||
Property and equipment | Property and equipment | ||||||||||||||||
Property and equipment are carried at cost and are depreciated on a straight-line basis (after taking into account their respective estimated residual value) over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. | |||||||||||||||||
The estimated useful lives are as follows: | |||||||||||||||||
Building | 15 years | ||||||||||||||||
Machinery and equipment | 10 years | ||||||||||||||||
Office equipment | 3 years | ||||||||||||||||
Leasehold improvement | 5 years | ||||||||||||||||
Motor vehicles | 4 years | ||||||||||||||||
Land use rights and yew forest assets | Land use rights and yew forest assets | ||||||||||||||||
All land in the PRC is owned by the PRC government and cannot be sold to any individual or company. The Company has recorded the amounts paid to the PRC government to acquire long-term interests to utilize land use rights and yew forests. This type of arrangement is common for the use of land in the PRC. Yew trees on land containing yew tree forests will be used to supply raw materials such as branches, leaves and fruit to the Company that will be used to manufacture the Company’s products. The Company amortizes land use rights based on their terms and yew forest assets over the term of the respective land use rights or expected useful lives, which generally ranges from 16 to 50 years. The lease agreements do not have any renewal option and the Company has no further obligations to the lessor. The Company records the amortization of these land use rights and yew forest assets as part of its cost of revenues. | |||||||||||||||||
Impairment of long-lived assets | Impairment of long-lived assets | ||||||||||||||||
In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. For years ended December 31, 2014 and 2013, the Company did not record any impairment charges on long-lived assets. | |||||||||||||||||
Revenue recognition | Revenue recognition | ||||||||||||||||
The Company generates its revenue from sales of yew seedling products, sales of yew raw materials for medical application, sales of yew craft products, and sales of wood ear mushroom. Pursuant to the guidance of ASC Topic 605 and ASC Topic 360, the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the purchase price is fixed or determinable and collectability is reasonably assured, and no significant obligations remain. | |||||||||||||||||
Stock-based compensation | Stock-based compensation | ||||||||||||||||
The Company accounts for stock options and other equity based compensation issued to employees in accordance with ASC 718 “Stock Compensation”. ASC 718 requires companies to recognize an expense in the statement of income at the grant date of stock options and other equity based compensation issued to employees. The Company accounts for non-employee share-based awards in accordance with ASC 505-50 “Equity-based payments to non-employees”. | |||||||||||||||||
Advertising | Advertising | ||||||||||||||||
Advertising is expensed as incurred and is included in selling expenses on the accompanying Consolidated Statements of Income and Comprehensive Income. The Company did not incur any advertising expense for the years ended December 31, 2014 and 2013. | |||||||||||||||||
Shipping costs | Shipping costs | ||||||||||||||||
Shipping costs are expensed as incurred and included in selling expenses and amount to $91 and $365 for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||
Research and development | Research and development | ||||||||||||||||
Research and development costs are expensed as incurred. The costs primarily consist of salaries paid for the development and improvement of the Company’s products. Research and development costs of the years ended December 31, 2014 and 2013 were $53,542 and $23,134, respectively, and are included in general and administrative expenses. | |||||||||||||||||
Employee benefits | Employee benefits | ||||||||||||||||
The Company’s operations and employees are all located in the PRC. The Company makes mandatory contributions to the PRC government’s health, retirement benefit and unemployment funds in accordance with the relevant Chinese social security laws. The costs of these payments are charged to the same accounts and in the same period as the related salary costs and are not material. | |||||||||||||||||
Income taxes | Income taxes | ||||||||||||||||
The Company is governed by the Income Tax Law of the People’s Republic of China, Hong Kong and the United States. The Company accounts for income tax using the liability method prescribed by ASC 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. | |||||||||||||||||
The Company applied the provisions of ASC 740-10-50, “Accounting for Uncertainty in Income Taxes”, which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of December 31, 2014, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. | |||||||||||||||||
Value added tax | Value added tax | ||||||||||||||||
The Company is subject to value added tax (“VAT”). The applicable VAT rate is 13% for agricultural products and 17% for handicraft products sold in the PRC. The amount of VAT liability is determined by applying the applicable tax rate to the amount of goods sold (output VAT) less VAT accrued on purchases made with the relevant supporting invoices (input VAT). Sales and purchases are recorded net of VAT (the amount of VAT is excluded from revenues and costs) collected and paid as the Company acts as an agent for the government. | |||||||||||||||||
Foreign currency translation | Foreign currency translation | ||||||||||||||||
The accompanying consolidated financial statements are presented in U.S. dollars (“USD”). The reporting currency of the Company is the USD. The functional currency of Yew Bio-Pharm (HK) is the Hong Kong dollar, and the functional currency of the Company’s VIEs and subsidiaries located in the PRC is the RMB. For the subsidiaries whose functional currencies are the Hong Kong dollar or RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income. The foreign currency translation adjustment included in comprehensive income (loss) for the years ended December 31, 2014 and 2013 amounted to $(200,520) and $966,009, respectively. | |||||||||||||||||
All of the Company’s revenue transactions are transacted in the functional currency. The Company does not enter any material transaction in foreign currencies and, accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. | |||||||||||||||||
The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions. | |||||||||||||||||
The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the consolidated financial statements are as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Exchange rate on balance sheet dates: | |||||||||||||||||
USD : RMB exchange rate | 6.1535 | 6.114 | |||||||||||||||
Average exchange rate for the year | |||||||||||||||||
USD : RMB exchange rate | 6.14821 | 6.19817 | |||||||||||||||
The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. In addition, the current foreign exchange control policies applicable in PRC also restrict the transfer of assets or dividends outside the PRC. | |||||||||||||||||
Net income per share of common stock | Net income per share of common stock | ||||||||||||||||
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). | |||||||||||||||||
Comprehensive income | Comprehensive income | ||||||||||||||||
The Company follows ASC 220, “Comprehensive Income” to recognize the elements of comprehensive income. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive income for the years ended December 31, 2014 and 2013 included net income and unrealized gains (losses) from foreign currency translation adjustments. | |||||||||||||||||
Segment reporting | Segment reporting | ||||||||||||||||
ASC Topic 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 year ended December 31, 2014, the Company operated in four reportable business segments: (1) the yew tree segment - the cultivation and sale of yew seedlings, yew trees and potted yew trees, (2) the traditional Chinese medicine (“TCM raw materials”) segment - the production and sale of raw materials used for medicinal application in the pharmaceutical industry, (3) the handicrafts segment - the manufacture and sale of furniture and handicrafts made of yew timber, and (4) the wood ear mushroom segment – the sale of wood ear mushroom. | |||||||||||||||||
Related party transactions | Related party transactions | ||||||||||||||||
A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities including such person’s immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. | |||||||||||||||||
Collaborative arrangement | Collaborative arrangement | ||||||||||||||||
On March 21, 2004, HDS entered into a Joint Venture Planting Agreement with Wuchang City Forestry Bureau (see Note 16), which is considered a collaborative arrangement under U.S. GAAP. The purpose of this arrangement is to share some of the risks and rewards associated with this Joint Venture Planting Agreement. The Company’s current share of profits is 80%. The Company accounts for this collaborative arrangement under ASC 808, “Collaborative Arrangements” and related topics and will record revenue gross as the prime contractor. ASC Topic 808-10-15 defines collaborative arrangements and requires collaborators to present the result of activities for which they act as the principal on a gross basis and report any payments received from (made to) the other collaborators based on other applicable authoritative accounting literature, and in the absence of other applicable authoritative literature, on a reasonable, rational and consistent accounting policy is to be elected. The Company adopted the provisions of ASC 808-10-15. The adoption of this statement did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. For the years ended December 31, 2014 and 2013, the Company has not generated any revenues or activity from this collaborative agreement. |
Organization_and_Principal_Act1
Organization and Principal Activities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Organization and Principal Activities [Abstract] | |||||||||
Schedule of HDS shareholders equity ownership percentage after second equity transfer agreement | Mr. Wang | 76.65 | % | ||||||
Madame Qi | 18.53 | % | |||||||
Mr. Han | 4.82 | % | |||||||
Schedule of carrying amount of assets and liabilities related to variable interest entity | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash | $ | 446,554 | $ | 1,146,546 | |||||
Accounts receivable | 922,564 | 418,875 | |||||||
Accounts receivable – related party | 340,132 | 377,821 | |||||||
Inventories (current and long-term) | 12,106,623 | 11,334,233 | |||||||
Prepaid expenses and other assets | 5,363 | 2,388 | |||||||
Prepaid expenses - related parties | 6,600 | 33,213 | |||||||
Property and equipment, net | 814,676 | 966,148 | |||||||
Land use rights and yew forest assets, net | 20,305,822 | 20,953,562 | |||||||
Total assets of VIE | $ | 34,948,334 | $ | 35,232,786 | |||||
Liabilities | |||||||||
Accrued expenses and other payables | $ | 54,265 | $ | 16,294 | |||||
Taxes payable | 8,104 | 9,924 | |||||||
Due to VIE holding companies | 1,417,851 | 1,703,324 | |||||||
Due to related parties | 2,958 | 4,804,661 | |||||||
Total liabilities of VIE | $ | 1,483,178 | $ | 6,534,203 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||
Schedule of Company's subsidiaries and variable interest entities | Name | Domicile and Date of Incorporation | Registered | Effective | Principal | ||||||||||||
Capital | Ownership | Activities | |||||||||||||||
Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”) | PRC | US$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 | RMB45,000,000 | 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 | |||||||||||||||||
Harbin Yew Food Co., Ltd ("HYF") | PRC | RMB100,000(1) | 100% | Sales of wood ear mushroom | |||||||||||||
4-Nov-14 | |||||||||||||||||
(1) Harbin Yew Food Co. Ltd did not pay the registered capital as of December 31, 2014. | |||||||||||||||||
Summary of cash balances by geographic area | 31-Dec-14 | December 31, 2013 | |||||||||||||||
Country: | |||||||||||||||||
United States | $ | 37,354 | 7.7 | % | $ | 8,779 | 0.8 | % | |||||||||
China | 450,586 | 92.3 | % | 1,150,832 | 99.2 | % | |||||||||||
Total cash and cash equivalents | $ | 487,940 | 100 | % | $ | 1,159,611 | 100 | % | |||||||||
Summary of Estimated useful lives of fixed assets | Building | 15 years | |||||||||||||||
Machinery and equipment | 10 years | ||||||||||||||||
Office equipment | 3 years | ||||||||||||||||
Leasehold improvement | 5 years | ||||||||||||||||
Motor vehicles | 4 years | ||||||||||||||||
Summary of Exchange rates used to translate amounts | 2014 | 2013 | |||||||||||||||
Exchange rate on balance sheet dates: | |||||||||||||||||
USD : RMB exchange rate | 6.1535 | 6.114 | |||||||||||||||
Average exchange rate for the year | |||||||||||||||||
USD : RMB exchange rate | 6.14821 | 6.19817 | |||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Inventories [Abstract] | |||||||||||||||||||||||||
Schedule of inventories | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Current portion | Long-term portion | Total | Current portion | Long-term portion | Total | ||||||||||||||||||||
Raw materials | $ | 120,478 | $ | 2,798,489 | $ | 2,918,967 | $ | 416,519 | $ | 2,608,829 | $ | 3,025,348 | |||||||||||||
Work-in-process | - | 256,227 | 256,227 | 17,446 | - | 17,446 | |||||||||||||||||||
Finished goods - handicrafts | - | 805,438 | 805,438 | 197,842 | 653,785 | 851,627 | |||||||||||||||||||
Yew seedlings | 657,836 | 3,908,854 | 4,566,690 | 457,280 | 6,982,532 | 7,439,812 | |||||||||||||||||||
Other trees | 664,763 | 2,980,719 | 3,645,482 | - | - | - | |||||||||||||||||||
Total | 1,443,078 | 10,749,727 | 12,192,805 | 1,089,087 | 10,245,146 | 11,334,233 | |||||||||||||||||||
Reserve for impairment - handicrafts | - | (86,182 | ) | (86,182 | ) | - | - | - | |||||||||||||||||
Inventories, net | $ | 1,443,078 | $ | 10,663,545 | $ | 12,106,623 | $ | 1,089,087 | $ | 10,245,146 | $ | 11,334,233 | |||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property and Equipment [Abstract] | |||||||||
Schedule of property and equipment | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Buildings and building improvements | $ | 712,861 | $ | 651,716 | |||||
Machinery and equipment | 502,469 | 538,648 | |||||||
Office equipment | 45,341 | 48,163 | |||||||
Leasehold improvement | - | 54,926 | |||||||
Motor vehicles | 632,356 | 659,544 | |||||||
Construction in progress | - | 65,751 | |||||||
1,893,027 | 2,018,748 | ||||||||
Less: accumulated depreciation | (1,036,777 | ) | (985,670 | ) | |||||
Total property and equipment, net | $ | 856,250 | $ | 1,033,078 | |||||
Land_Use_Rights_And_Yew_Forest1
Land Use Rights And Yew Forest Assets (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Land Use Rights and Yew Forest Assets [Abstract] | ||||||||||||||||||
Components of land use rights and yew forest assets | Description | Useful life | Acquisition date | Expiration date | Metric acres ("Mu") | |||||||||||||
Parcel A | Developing forest land | 50 | Mar-04 | Mar-54 | 125 | |||||||||||||
Parcel B | Developing forest land | 50 | Apr-04 | Apr-54 | 400 | |||||||||||||
Parcel C | Yew tree forests | 30 | Mar-05 | Mar-35 | 361 | |||||||||||||
Parcel D | Yew tree forests and underlying land | 50 | Jan-08 | Dec-58 | 290 | |||||||||||||
Parcel E | Yew tree forests and underlying land | 45 | Mar-10 | Mar-55 | 15,865 | |||||||||||||
Parcel F | Undeveloped forest land | 16 | Jul-12 | Mar-28 | 148 | |||||||||||||
Parcel G | Yew tree forests and underlying land | 22 | Apr-06 | Jan-28 | 5 | |||||||||||||
Parcel H | Yew tree forests and underlying land | 38 | Nov-13 | Nov-51 | 2,565 | |||||||||||||
Schedule of land and yew forest use rights | Useful Life | December 31, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||||
Land use rights and yew forest assets | 16-50 years | $ | 21,949,557 | $ | 22,094,697 | |||||||||||||
Less: accumulated amortization | (1,643,736 | ) | (1,141,135 | ) | ||||||||||||||
Land use rights and yew forest assets, net | $ | 20,305,821 | $ | 20,953,562 | ||||||||||||||
Amortization of land and yew forest use rights attributable to future periods | Years ended December 31: | Amount | ||||||||||||||||
2015 | $ | 510,364 | ||||||||||||||||
2016 | 510,364 | |||||||||||||||||
2017 | 510,364 | |||||||||||||||||
2018 | 510,364 | |||||||||||||||||
2019 | 510,364 | |||||||||||||||||
2020 and thereafter | 17,754,001 | |||||||||||||||||
Total | $ | 20,305,821 | ||||||||||||||||
Accrued_Expenses_and_Other_Pay1
Accrued Expenses and Other Payables (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accrued Expenses and Other Payables [Abstract] | |||||||||
Schedule of accrued expenses and other payables | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued wage | $ | 29,427 | $ | 17,821 | |||||
Other | 55,295 | 118,892 | |||||||
Total | $ | 84,722 | $ | 136,713 |
Taxes_Tables
Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Taxes [Abstract] | |||||||||
Effects of income tax expense exemptions and tax reductions | Years Ended | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Tax exemption effect | $ | 1,249,618 | $ | 1,035,909 | |||||
Tax reduction due to loss carry-forwards | 9,501 | 8,152 | |||||||
Loss not subject to income tax | (2,620 | ) | (3,962 | ) | |||||
Basic net income per share effect | $ | (0.02 | ) | $ | (0.02 | ) | |||
Diluted net income per share effect | $ | (0.02 | ) | $ | (0.02 | ) | |||
Summary of difference between U.S. statutory federal tax rate and Company's effective tax rate | Years Ended | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
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 | - | - | |||||||
Summary of net deferred tax assets | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
U.S. tax benefit of net operating loss carry forward | $ | 1,360,084 | $ | 1,107,865 | |||||
Valuation allowance | (1,360,084 | ) | (1,107,865 | ) | |||||
Net deferred tax assets | $ | - | $ | - |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Stockholders' Equity [Abstract] | |||||||||||||||||||||||
Summary of fair value of company's option | Name of Optionee | Expected Terms | Computed Volatility | Risk free Interest Rate (%) | Expected Dividends | Fair Value | |||||||||||||||||
(In Years) | |||||||||||||||||||||||
HengJiang Pang | 3.025 | 202 | % | 0.97 | - | 36,906 | |||||||||||||||||
Tong Liu | 3.025 | 202 | % | 0.97 | - | 36,906 | |||||||||||||||||
Xuehai Wu | 3.025 | 202 | % | 0.97 | - | 36,906 | |||||||||||||||||
Lifan Liu | 1.5 | 212 | % | 0.14 | - | 38,873 | |||||||||||||||||
Weiran Lu | 1.5 | 212 | % | 0.14 | - | 38,873 | |||||||||||||||||
Junzhong Wu | 1.5 | 212 | % | 0.14 | - | 19,437 | |||||||||||||||||
Guobin Zhou | 1.5 | 212 | % | 0.14 | - | 19,437 | |||||||||||||||||
Binbin Lou | 1.5 | 212 | % | 0.14 | - | 38,873 | |||||||||||||||||
Wei Zhang | 1.5 | 212 | % | 0.14 | - | 38,873 | |||||||||||||||||
Songshan Zhang | 1.5 | 212 | % | 0.14 | - | 38,873 | |||||||||||||||||
Bingtao Li | 1.5 | 212 | % | 0.14 | - | 19,437 | |||||||||||||||||
Jianyi Yang | 1.5 | 212 | % | 0.14 | - | 23,324 | |||||||||||||||||
Jing Wang | 1.5 | 212 | % | 0.14 | - | 19,437 | |||||||||||||||||
Yunli Pei | 1.5 | 212 | % | 0.14 | - | 38,873 | |||||||||||||||||
Chunmei Xu | 1.5 | 212 | % | 0.14 | - | 19,437 | |||||||||||||||||
Donghui Zhao | 1.5 | 212 | % | 0.14 | - | 19,437 | |||||||||||||||||
Xiefeng Liu | 2.25 | 212 | % | 0.53 | - | 20,734 | |||||||||||||||||
Lixin Liu | 2.25 | 212 | % | 0.53 | - | 16,587 | |||||||||||||||||
Jie Zhang | 2.25 | 212 | % | 0.53 | - | 41,468 | |||||||||||||||||
Jilong Yin | 2.25 | 212 | % | 0.53 | - | 20,734 | |||||||||||||||||
Long Deng | 2.25 | 212 | % | 0.53 | - | 20,734 | |||||||||||||||||
Shiyi Li | 3.025 | 212 | % | 0.96 | - | 12,886 | |||||||||||||||||
Xingli Han | 3.025 | 212 | % | 0.96 | - | 51,542 | |||||||||||||||||
Yang Jiang | 3.025 | 212 | % | 0.96 | - | 12,886 | |||||||||||||||||
Chao Liu | 3.025 | 212 | % | 0.96 | - | 21,476 | |||||||||||||||||
Jiaqi Lv | 3.025 | 212 | % | 0.96 | - | 21,476 | |||||||||||||||||
Shouhua Zhang | 3.025 | 212 | % | 0.96 | - | 25,771 | |||||||||||||||||
Lianfa Sun | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Jinsong Lv | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Anna Tang | 3.025 | 212 | % | 0.96 | - | 12,886 | |||||||||||||||||
Hong Li | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Siyuan Wang | 3.025 | 212 | % | 0.96 | - | 150,332 | |||||||||||||||||
Xingming Han | 3.025 | 212 | % | 0.96 | - | 150,332 | |||||||||||||||||
Yicheng Wang | 3.025 | 212 | % | 0.96 | - | 150,332 | |||||||||||||||||
Yuqi Mao | 3.025 | 212 | % | 0.96 | - | 150,332 | |||||||||||||||||
Jimin Lu | 3.025 | 212 | % | 0.96 | - | 12,886 | |||||||||||||||||
Jinguo Wang | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Xue Wang | 3.025 | 212 | % | 0.96 | - | 21,476 | |||||||||||||||||
Ping Qi | 3.025 | 212 | % | 0.96 | - | 21,476 | |||||||||||||||||
Weihong Zhang | 3.025 | 212 | % | 0.96 | - | 21,476 | |||||||||||||||||
Hongrun Wang | 3.025 | 212 | % | 0.96 | - | 21,476 | |||||||||||||||||
Zhiling Wang | 3.025 | 212 | % | 0.96 | - | 30,066 | |||||||||||||||||
Zhigang Wang | 3.025 | 212 | % | 0.96 | - | 30,066 | |||||||||||||||||
Zhimin Wang | 3.025 | 212 | % | 0.96 | - | 30,066 | |||||||||||||||||
Kaiming Guo | 3.025 | 212 | % | 0.96 | - | 12,886 | |||||||||||||||||
Tinghua Xu | 3.025 | 212 | % | 0.96 | - | 12,886 | |||||||||||||||||
Shaoming Geng | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Jing Sun | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Fengping Dong | 3.025 | 212 | % | 0.96 | - | 17,181 | |||||||||||||||||
Summary of stock option activities | Year Ended | Year Ended | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | ||||||||||||||||||||
Stock | Average | Stock | Average | ||||||||||||||||||||
Options | Exercise Price | Options | Exercise Price | ||||||||||||||||||||
Balance at beginning of year | 22,805,512 | $ | 0.22 | 22,805,512 | $ | 0.22 | |||||||||||||||||
Issued | 4,400,000 | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | |||||||||||||||||||
Forfeited | - | - | - | - | |||||||||||||||||||
Balance at end of year | 27,205,512 | $ | 0.26 | 22,805,512 | $ | 0.22 | |||||||||||||||||
Options exercisable at end of year | 22,805,512 | $ | 0.22 | 22,805,512 | $ | 0.22 | |||||||||||||||||
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 | ||||||||||||||||||
December 31, | Contractual Life | Exercise Price | December 31, | Exercise Price | |||||||||||||||||||
2014 | (Years) | 2014 | |||||||||||||||||||||
$ | 0.20-0.23 | 27,205,512 | 3.01 | $ | 0.26 | 22,805,512 | $ | 0.22 |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | For the Years Ended December 31, | ||||||||
2014 | 2013 | ||||||||
Net income available to common stockholders for basic and diluted net income per share of common stock | $ | 4,284,177 | $ | 3,899,730 | |||||
Weighted average common stock outstanding – basic | 50,948,973 | 50,000,000 | |||||||
Effect of dilutive securities: | |||||||||
Non-vested restricted common stock | 41,757 | - | |||||||
Stock options issued to directors/officers/employees | 11,804,986 | - | |||||||
Weighted average common stock outstanding – diluted | 62,795,716 | 50,000,000 | |||||||
Net income per common share – basic | $ | 0.08 | $ | 0.08 | |||||
Net income per common share – diluted | $ | 0.07 | $ | 0.08 |
Concentrations_of_Credit_Risk_1
Concentrations of Credit Risk and Major Customers (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Customer [Member] | |||||||||
Concentration Risk [Line Items] | |||||||||
Summary of major customers and suppliers | |||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
Customer | 2014 | 2013 | |||||||
A (Yew Pharmaceutical, a related party) | 26.78 | % | 20.84 | % | |||||
B | 16.18 | % | * | % | |||||
C | * | % | 17.23 | % | |||||
* Less than 10% | |||||||||
Supplier [Member] | |||||||||
Concentration Risk [Line Items] | |||||||||
Summary of major customers and suppliers | |||||||||
For the Years Ended December 31, | |||||||||
Supplier | 2014 | 2013 | |||||||
A | 19 | % | * | % | |||||
B | 15 | % | * | % | |||||
C | * | % | 98 | % | |||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Company's transactions with the 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 Pharmaceutical 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. | ||||||||
Future minimum rental payments under the related party operating lease | Years Ended December 31: | ||||||||
2015 | $ | 135,365 | |||||||
2016 | 2,440 | ||||||||
2017 | 2,440 | ||||||||
2018 | 2,440 | ||||||||
2019 | 2,440 | ||||||||
Thereafter | 410,973 | ||||||||
Total | $ | 556,098 | |||||||
Schedule of due to related party | |||||||||
Name of related parties | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Zhiguo Wang and other shareholders | $ | 45,040 | $ | 47,726 | |||||
ZTC | - | 4,802,911 | |||||||
Total | $ | 45,040 | $ | 4,850,637 | |||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||||||||
Summary of reportable business segments | For the Years Ended, | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
TCM raw materials | $ | 4,043,290 | $ | 4,170,748 | |||||||||||||||||||||
Yew trees | 3,208,643 | 3,011,728 | |||||||||||||||||||||||
Handicrafts | 173,412 | 257,172 | |||||||||||||||||||||||
Wood ear mushroom | 301,231 | - | |||||||||||||||||||||||
$ | 7,726,576 | $ | 7,439,648 | ||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||
TCM raw materials | $ | 726,988 | $ | 1,117,407 | |||||||||||||||||||||
Yew trees | 1,004,371 | 1,097,140 | |||||||||||||||||||||||
Handicrafts | 152,794 | 192,523 | |||||||||||||||||||||||
Wood ear mushroom | 252,444 | - | |||||||||||||||||||||||
$ | 2,136,597 | $ | 2,407,400 | ||||||||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||||
TCM raw materials | $ | 491,838 | $ | 370,564 | |||||||||||||||||||||
Yew trees | 65,221 | 24,586 | |||||||||||||||||||||||
Handicrafts | 23,761 | 22,900 | |||||||||||||||||||||||
Wood ear mushroom | - | - | |||||||||||||||||||||||
Other | 101,989 | 143,466 | |||||||||||||||||||||||
$ | 682,809 | $ | 561,516 | ||||||||||||||||||||||
Net income (loss): | |||||||||||||||||||||||||
TCM raw materials | $ | 3,316,304 | $ | 3,053,341 | |||||||||||||||||||||
Yew trees | 2,204,272 | 1,914,257 | |||||||||||||||||||||||
Handicrafts | 109,029 | 64,649 | |||||||||||||||||||||||
Wood ear mushroom | 48,787 | - | |||||||||||||||||||||||
Other | (1,394,215 | ) | (1,132,515 | ) | |||||||||||||||||||||
$ | 4,284,177 | $ | 3,899,732 | ||||||||||||||||||||||
Summary of identifiable long-lived assets, net | 31-Dec-14 | ||||||||||||||||||||||||
TCM raw materials | Yew trees | Handicrafts | Wood ear mushroom | Other | Total | ||||||||||||||||||||
Identifiable long-lived assets, net | $ | 19,973,775 | $ | 915,551 | $ | 63,319 | $ | - | $ | 209,425 | $ | 21,162,070 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
TCM raw materials | Yew trees | Handicrafts | Wood ear mushroom | Other | Total | ||||||||||||||||||||
Identifiable long-lived assets, net | $ | 20,953,562 | $ | 632,583 | $ | 94,124 | $ | - | $ | 306,371 | $ | 21,986,640 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies [Abstract] | |||||
Schedule of lease payment | Period | Annual lease amount | Payment due date | ||
March 2002 to February 2012 | RMB 25,000 | Before December 2012 | |||
March 2012 to February 2017 | RMB 25,000 | Before December 2017 | |||
March 2017 to March 2025 | RMB 25,000 | Before December 2025 | |||
Future minimum rental payments under the A'cheng lease | Years Ended December 31: | ||||
2015 | $ | - | |||
2016 | - | ||||
2017 | 20,331 | ||||
2018 | - | ||||
2019 | - | ||||
Thereafter | 28,464 | ||||
Total | $ | 48,795 | |||
Organization_and_Principal_Act2
Organization and Principal Activities (Details) | 12 Months Ended |
Dec. 31, 2014 | |
HDS shareholders equity ownership percentage after second equity transfer agreement | |
HDS shareholders equity ownership percentage after second equity transfer agreement | 100.00% |
Mr. Wang [Member] | |
HDS shareholders equity ownership percentage after second equity transfer agreement | |
HDS shareholders equity ownership percentage after second equity transfer agreement | 76.65% |
Madame Qi [Member] | |
HDS shareholders equity ownership percentage after second equity transfer agreement | |
HDS shareholders equity ownership percentage after second equity transfer agreement | 18.53% |
Mr. Han [Member] | |
HDS shareholders equity ownership percentage after second equity transfer agreement | |
HDS shareholders equity ownership percentage after second equity transfer agreement | 4.82% |
Organization_and_Principal_Act3
Organization and Principal Activities (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE | $34,948,334 | $35,232,786 |
Total liabilities of VIE | 1,483,178 | 6,534,203 |
Cash [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE | 446,554 | 1,146,546 |
Accounts receivable [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE | 922,564 | 418,875 |
Accounts receivable - related party[Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE | 340,132 | 377,821 |
Inventories (current and long-term) [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE | 12,106,623 | 11,334,233 |
Prepaid expenses and other assets [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE | 5,363 | 2,388 |
Prepaid expenses - related parties [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE | 6,600 | 33,213 |
Property and equipment, net [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE | 814,676 | 966,148 |
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 | 20,305,822 | 20,953,562 |
Accrued expenses and other payables [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE | 54,265 | 16,294 |
Taxes payable [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE | 8,104 | 9,924 |
Due to VIE holding companies [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE | 1,417,851 | 1,703,324 |
Due to related parties [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE | $2,958 | $4,804,661 |
Organization_and_Principal_Act4
Organization and Principal Activities (Details Textual) (CNY) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2010 | Dec. 31, 2014 | Feb. 23, 2010 | Feb. 16, 2011 | Oct. 28, 2010 | |
Harbin Yew Science and Technology Development Co., Ltd. ("HDS") [Member] | Zhiguo Wang [Member] | |||||
Organization and Principal Activities (Textual) | |||||
Shareholders ownership percentage | 62.81% | ||||
Ownership percentage returned to shareholders by JSJ on second transfer agreement | 62.81% | ||||
Additional ownership percentage returned to shareholders by JSJ on second transfer agreement | 13.84% | ||||
Harbin Yew Science and Technology Development Co., Ltd. ("HDS") [Member] | Guifang Qi [Member] | |||||
Organization and Principal Activities (Textual) | |||||
Shareholders ownership percentage | 18.53% | ||||
Harbin Yew Science and Technology Development Co., Ltd. ("HDS") [Member] | Xingming Han [Member] | |||||
Organization and Principal Activities (Textual) | |||||
Shareholders ownership percentage | 4.82% | ||||
Harbin Yew Science and Technology Development Co., Ltd. ("HDS") [Member] | Yingjun Jiang [Member] | |||||
Organization and Principal Activities (Textual) | |||||
Shareholders ownership percentage | 3.22% | ||||
Ownership percentage returned to shareholders by JSJ on second transfer agreement | 3.22% | ||||
Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd. ("HEFS") [Member] | |||||
Organization and Principal Activities (Textual) | |||||
Shareholders ownership percentage | 10.62% | ||||
Ownership percentage returned to shareholders by JSJ on second transfer agreement | 10.62% | ||||
JSJ [Member] | First Transfer Agreements [Member] | |||||
Organization and Principal Activities (Textual) | |||||
Value of Shares transferred by original shareholders | 45,000,000 | ||||
JSJ [Member] | First Supplemental Agreement [Member] | |||||
Organization and Principal Activities (Textual) | |||||
Discription of First Supplemental Agreement dated February 26, 2010 | JSJ had the right to put the shares of HDS back to the Original Shareholders for the original purchase price of an aggregate RMB45,000,000, in the event that the transaction did not close or PRC governmental approval was not received, within six months following the execution of the First Transfer Agreements. | ||||
JSJ [Member] | Second Transfer Agreements [Member] | |||||
Organization and Principal Activities (Textual) | |||||
Consideration not paid to HDS shareholders in first restructure | 45,000,000 | ||||
Percentage of owned shares transferred by HDS shareholders | 100.00% | ||||
YBP [Member] | All HDS Shareholders as a group (3 persons) [Member] | |||||
Organization and Principal Activities (Textual) | |||||
Shareholders ownership percentage | 41.50% | ||||
YBP [Member] | All other existing shareholders [Member] | |||||
Organization and Principal Activities (Textual) | |||||
Shareholders ownership percentage | 2.50% |
Organization_and_Principal_Act5
Organization and Principal Activities (Details Textual 1) (CNY) | 12 Months Ended |
Dec. 31, 2014 | |
Organization and Principal Activities (Textual) | |
HDS shareholders equity ownership percentage after second equity transfer agreement | 100.00% |
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. |
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 termination of contract | 30 days |
Equity interest purchase option price | 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. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | ||
JSJ [Member] | Yew Bio-Pharm (HK) [Member] | HDS [Member] | HYF [Member] | ||
USD ($) | HKD | CNY | CNY | ||
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 | PRC November 4, 2014 | |
Registered Capital | $100,000 | 10,000 | 45,000,000 | 100,000 | [1] |
Effective Ownership, Percentage | 100.00% | 100.00% | 100.00% | ||
Effective Ownership | Contractual arrangements | ||||
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 | Sales of wood ear mushroom | |
[1] | (1) Harbin Yew Food Co. Ltd did not pay the registered capital as of December 31, 2014. |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of cash balances by geographic area | |||
Total cash and cash equivalents | $487,940 | $1,159,611 | $386,821 |
Total cash and cash equivalents (Percentage) | 100.00% | 100.00% | |
United States [Member] | |||
Summary of cash balances by geographic area | |||
Total cash and cash equivalents | 37,354 | 8,779 | |
Total cash and cash equivalents (Percentage) | 7.70% | 0.80% | |
China [Member] | |||
Summary of cash balances by geographic area | |||
Total cash and cash equivalents | $450,586 | $1,150,832 | |
Total cash and cash equivalents (Percentage) | 92.30% | 99.20% |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2014 | |
Building [Member] | |
Summary of Estimated useful lives of fixed assets | |
Estimated useful lives | 15 years |
Machinery and equipment [Member] | |
Summary of Estimated useful lives of fixed assets | |
Estimated useful lives | 10 years |
Office equipment [Member] | |
Summary of Estimated useful lives of fixed assets | |
Estimated useful lives | 3 years |
Leasehold improvement [Member] | |
Summary of Estimated useful lives of fixed assets | |
Estimated useful lives | 5 years |
Motor vehicles [Member] | |
Summary of Estimated useful lives of fixed assets | |
Estimated useful lives | 4 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details 3) | Dec. 31, 2014 | Dec. 31, 2013 |
Summary of Exchange rates used to translate amounts in RMB into USD | ||
Exchange rate on balance sheet dates USD : RMB exchange rate | 6.1535 | 6.114 |
Average exchange rate for the year USD : RMB exchange rate | 6.14821 | 6.19817 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment | ||
Summary of Significant Accounting Policies (Textual) | ||
Impairment charges | ||
Shipping costs | 91 | 365 |
Research and development costs | 53,542 | 23,134 |
Uncertain tax positions | ||
Percentage of value added tax for agricultural products | 13.00% | |
Percentage of value added tax handicraft products | 17.00% | |
Foreign currency translation adjustment included in comprehensive income | -200,520 | 966,009 |
Inventory allowance and reserve | ||
Number of reportable business segments | 4 | |
Related party transactions, description | (i) any person that holds 10% or more of the Company's securities including such person's immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. | |
Percentage share of profit held by parent in joint venture | 80.00% | |
Minimum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Land use rights and yew forest assets | 16 years | |
Maximum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Land use rights and yew forest assets | 50 years |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of inventories | ||
Current portion | $1,443,078 | $1,089,087 |
Long-term portion | 10,663,545 | 10,245,146 |
Inventory, Total | 12,106,623 | 11,334,233 |
Raw materials [Member] | ||
Schedule of inventories | ||
Current portion | 120,478 | 416,519 |
Long-term portion | 2,798,489 | 2,608,829 |
Inventory, Total | 2,918,967 | 3,025,348 |
Work-in-process [Member] | ||
Schedule of inventories | ||
Current portion | 17,446 | |
Long-term portion | 256,227 | |
Inventory, Total | 256,227 | 17,446 |
Finished goods - handicrafts [Member] | ||
Schedule of inventories | ||
Current portion | 197,842 | |
Long-term portion | 805,438 | 653,785 |
Inventory, Total | 805,438 | 851,627 |
Yew seedlings [Member] | ||
Schedule of inventories | ||
Current portion | 657,836 | 457,280 |
Long-term portion | 3,908,854 | 6,982,532 |
Inventory, Total | 4,566,690 | 7,439,812 |
Other trees [Member] | ||
Schedule of inventories | ||
Current portion | 664,763 | |
Long-term portion | 2,980,719 | |
Inventory, Total | 3,645,482 | |
Reserve for impairment - handicrafts [Member] | ||
Schedule of inventories | ||
Current portion | ||
Long-term portion | -86,182 | |
Inventory, Total | ($86,182) |
Inventories_Details_Textuals
Inventories (Details Textuals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule Of Inventory [Line Items] | ||
Increase in long-term assets | $10,663,545 | $10,245,146 |
Reserve for impairment - handicrafts [Member] | ||
Schedule Of Inventory [Line Items] | ||
Increase in long-term assets | ($86,182) |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of property and equipment | ||
Property and equipment, gross | $1,893,027 | $2,018,748 |
Less: accumulated depreciation | -1,036,777 | -985,670 |
Property and equipment, net | 856,250 | 1,033,078 |
Buildings and building improvements [Member] | ||
Schedule of property and equipment | ||
Property and equipment, gross | 712,861 | 651,716 |
Machinery and equipment [Member] | ||
Schedule of property and equipment | ||
Property and equipment, gross | 502,469 | 538,648 |
Office equipment [Member] | ||
Schedule of property and equipment | ||
Property and equipment, gross | 45,341 | 48,163 |
Leasehold improvements [Member] | ||
Schedule of property and equipment | ||
Property and equipment, gross | 54,926 | |
Motor vehicles [Member] | ||
Schedule of property and equipment | ||
Property and equipment, gross | 632,356 | 659,544 |
Construction in progress [Member] | ||
Schedule of property and equipment | ||
Property and equipment, gross | $65,751 |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property and Equipment (Textual) | ||
Depreciation | $172,446 | $179,857 |
Land_Use_Rights_And_Yew_Forest2
Land Use Rights And Yew Forest Assets (Details) | 12 Months Ended |
Dec. 31, 2014 | |
acre | |
Yew tree forests and underlying land [Member] | |
Components of land and yew forest use rights | |
Metric acres ("Mu") | 2,565 |
Parcel A [Member] | Developing Forest Land [Member] | |
Components of land and yew forest use rights | |
Land use rights and yew forest assets | 50 years |
Acquisition date | Mar-04 |
Expiration date | Mar-54 |
Metric acres ("Mu") | 125 |
Parcel B [Member] | Developing Forest Land [Member] | |
Components of land and yew forest use rights | |
Land use rights and yew forest assets | 50 years |
Acquisition date | Apr-04 |
Expiration date | Apr-54 |
Metric acres ("Mu") | 400 |
Parcel C [Member] | Yew tree forests | |
Components of land and yew forest use rights | |
Land use rights and yew forest assets | 30 years |
Acquisition date | Mar-05 |
Expiration date | Mar-35 |
Metric acres ("Mu") | 361 |
Parcel D [Member] | Yew tree forests and underlying land [Member] | |
Components of land and yew forest use rights | |
Land use rights and yew forest assets | 50 years |
Acquisition date | Jan-08 |
Expiration date | Dec-58 |
Metric acres ("Mu") | 290 |
Parcel E [Member] | Yew tree forests and underlying land [Member] | |
Components of land and yew forest use rights | |
Land use rights and yew forest assets | 45 years |
Acquisition date | Mar-10 |
Expiration date | Mar-55 |
Metric acres ("Mu") | 15,865 |
Parcel F [Member] | Undeveloped forest land [Member] | |
Components of land and yew forest use rights | |
Land use rights and yew forest assets | 16 years |
Acquisition date | Jul-12 |
Expiration date | Mar-28 |
Metric acres ("Mu") | 148 |
Parcel G [Member] | Yew tree forests and underlying land [Member] | |
Components of land and yew forest use rights | |
Land use rights and yew forest assets | 22 days |
Acquisition date | Apr-06 |
Expiration date | Jan-28 |
Metric acres ("Mu") | 5 |
Parcel H [Member] | Yew tree forests and underlying land [Member] | |
Components of land and yew forest use rights | |
Land use rights and yew forest assets | 38 years |
Acquisition date | Nov-13 |
Expiration date | Nov-51 |
Metric acres ("Mu") | 2,565 |
Land_Use_Rights_And_Yew_Forest3
Land Use Rights And Yew Forest Assets (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of land and yew forest use rights | ||
Land and yew forest use rights | 21,949,557 | $22,094,697 |
Less: accumulated amortization | -1,643,736 | -1,141,135 |
Total | 20,305,821 | $20,953,562 |
Minimum [Member] | ||
Schedule of land and yew forest use rights | ||
Useful life | 16 years | |
Maximum [Member] | ||
Schedule of land and yew forest use rights | ||
Useful life | 50 years |
Land_Use_Rights_And_Yew_Forest4
Land Use Rights And Yew Forest Assets (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Amortization of land and yew forest use rights attributable to future periods | ||
2015 | $510,364 | |
2016 | 510,364 | |
2017 | 510,364 | |
2018 | 510,364 | |
2019 | 510,364 | |
2020 and thereafter | 17,754,001 | |
Total | $20,305,821 | $20,953,562 |
Land_Use_Rights_And_Yew_Forest5
Land Use Rights And Yew Forest Assets (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Land and Yew Forest Use Rights (Textual) | ||
Amortization of land use rights and yew forest assets | $510,363 | $381,659 |
Accrued_Expenses_and_Other_Pay2
Accrued Expenses and Other Payables (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of accrued expenses and other payables | ||
Accrued wage | $29,427 | $17,821 |
Other | 55,295 | 118,892 |
Total | $84,722 | $136,713 |
Taxes_Details
Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Effects of income tax expense exemptions and tax reductions | ||
Tax exemption effect | $1,249,618 | $1,035,909 |
Tax reduction due to loss carry-forwards | 9,501 | 8,152 |
Loss not subject to income tax | ($2,620) | ($3,962) |
Basic net income per share effect | ($0.02) | ($0.02) |
Diluted net income per share effect | ($0.02) | ($0.02) |
Taxes_Details_1
Taxes (Details 1) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of difference between U.S. statutory federal tax rate and Company's effective tax rate | ||
U.S. federal income tax rate | 34.00% | 34.00% |
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 taxes |
Taxes_Details_2
Taxes (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Summary of Deferred tax assets and liabilities | ||
U.S. tax benefit of net operating loss carry forward | $1,360,084 | $1,107,865 |
Valuation allowance | -1,360,084 | -1,107,865 |
Net deferred tax assets |
Taxes_Details_Textual
Taxes (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Taxes (Textual) | ||
U.S. federal income tax rate | 34.00% | 34.00% |
PRC EIT rate | 25.00% | 25.00% |
Provision for income taxes in U.S. | ||
Description of tax exemption date | HDS has been named as a leading enterprise in the agricultural industry and awarded with a tax exemption through December 31, 2058 | |
Income before income tax expense attributed to the Company's subsidiary and VIE | 5,025,996 | 4,160,396 |
Operating loss carry forwards expires | 31-Dec-34 | |
Net operating loss carry forwards | 4,000,246 | 3,258,426 |
Valuation allowance, percentage | 100.00% | 100.00% |
Net deferred tax assets | ||
Valuation allowance | 1,360,084 | 1,107,865 |
Net change in valuation allowance | 252,219 | 88,626 |
Cumulative undistributed earnings of foreign subsidiary and VIE | $24,700,000 | $20,100,000 |
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) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Hengjiang Pang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 202.00% | 202.00% |
Risk-free interest rate | 0.97% | 0.97% |
Expected Dividends | ||
Fair Value | $36,906 | $36,906 |
Tong Liu [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 202.00% | 202.00% |
Risk-free interest rate | 0.97% | 0.97% |
Expected Dividends | ||
Fair Value | 36,906 | 36,906 |
Xuehai Wu [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 202.00% | 202.00% |
Risk-free interest rate | 0.97% | 0.97% |
Expected Dividends | ||
Fair Value | 36,906 | 36,906 |
Lifan Liu [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 6 months | 1 year 6 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.14% | 0.14% |
Expected Dividends | ||
Fair Value | 38,873 | 38,873 |
Weiran Lu [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 6 months | 1 year 6 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.14% | 0.14% |
Expected Dividends | ||
Fair Value | 38,873 | 38,873 |
Junzhong Wu [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 6 months | 1 year 6 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.14% | 0.14% |
Expected Dividends | ||
Fair Value | 19,437 | 19,437 |
Guobin Zhou [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 6 months | 1 year 6 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.14% | 0.14% |
Expected Dividends | ||
Fair Value | 19,437 | 19,437 |
Binbin Lou [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 6 months | 1 year 6 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.14% | 0.14% |
Expected Dividends | ||
Fair Value | 38,873 | 38,873 |
Wei Zhang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 6 months | 1 year 6 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.14% | 0.14% |
Expected Dividends | ||
Fair Value | 38,873 | 38,873 |
Songshan Zhang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 6 months | 1 year 6 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.14% | 0.14% |
Expected Dividends | ||
Fair Value | 38,873 | 38,873 |
Bingtao Li [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 6 months | 1 year 6 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.14% | 0.14% |
Expected Dividends | ||
Fair Value | 19,437 | 19,437 |
Jianyi Yang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 6 months | 1 year 6 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.14% | 0.14% |
Expected Dividends | ||
Fair Value | 23,324 | 23,324 |
Jing Wang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 6 months | 1 year 6 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.14% | 0.14% |
Expected Dividends | ||
Fair Value | 19,437 | 19,437 |
Yunli Pei [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 6 months | 1 year 6 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.14% | 0.14% |
Expected Dividends | ||
Fair Value | 38,873 | 38,873 |
Chunmei Xu [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 6 months | 1 year 6 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.14% | 0.14% |
Expected Dividends | ||
Fair Value | 19,437 | 19,437 |
Donghui Zhao [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 6 months | 1 year 6 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.14% | 0.14% |
Expected Dividends | ||
Fair Value | 19,437 | 19,437 |
Xiefeng Liu [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 2 years 3 months | 2 years 3 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.53% | 0.53% |
Expected Dividends | ||
Fair Value | 20,734 | 20,734 |
Lixin Liu [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 2 years 3 months | 2 years 3 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.53% | 0.53% |
Expected Dividends | ||
Fair Value | 16,587 | 16,587 |
Jie Zhang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 2 years 3 months | 2 years 3 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.53% | 0.53% |
Expected Dividends | ||
Fair Value | 41,468 | 41,468 |
Jilong Yin [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 2 years 3 months | 2 years 3 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.53% | 0.53% |
Expected Dividends | ||
Fair Value | 20,734 | 20,734 |
Long Deng [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 2 years 3 months | 2 years 3 months |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.53% | 0.53% |
Expected Dividends | ||
Fair Value | 20,734 | 20,734 |
Shiyi Li [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 12,886 | 12,886 |
Xingli Han [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 51,542 | 51,542 |
Yang Jiang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 12,886 | 12,886 |
Chao Liu [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 21,476 | 21,476 |
Jiaqi Lv [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 21,476 | 21,476 |
Shouhua Zhang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 25,771 | 25,771 |
Lianfa Sun [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 17,181 | 17,181 |
Jinsong Lv [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 17,181 | 17,181 |
Anna Tang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 12,886 | 12,886 |
Hong Li [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 17,181 | 17,181 |
Siyuan Wang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 150,332 | 150,332 |
Xingming Han [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 150,332 | 150,332 |
Yicheng Wang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 150,332 | 150,332 |
Yuqi Mao [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 150,332 | 150,332 |
Jimin Lu [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 12,886 | 12,886 |
Jinguo Wang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 17,181 | 17,181 |
Xue Wang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 21,476 | 21,476 |
Ping Qi [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 21,476 | 21,476 |
Weihong Zhang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 21,476 | 21,476 |
Hongrun Wang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 21,476 | 21,476 |
Zhiling Wang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 30,066 | 30,066 |
Zhigang Wang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 30,066 | 30,066 |
Zhimin Wang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 30,066 | 30,066 |
Kaiming Guo [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 12,886 | 12,886 |
Tinghua Xu [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 12,886 | 12,886 |
Shaoming Geng [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 17,181 | 17,181 |
Jing Sun [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | 17,181 | 17,181 |
Fengping Dong [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 3 years 9 days | 3 years 9 days |
Computed Volatility | 212.00% | 212.00% |
Risk-free interest rate | 0.96% | 0.96% |
Expected Dividends | ||
Fair Value | $17,181 | $17,181 |
Stockholders_Equity_Details_1
Stockholders Equity (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of shares of Company's common stock issuable upon exercise of options outstanding | ||
Beginning balance, Number of stock option | 22,805,512 | 22,805,512 |
Issued, Number of stock option | 4,400,000 | |
Exercised, Number of stock options | ||
Forfeited, Number of stock options | ||
Ending balance, Number of stock option | 27,205,512 | 22,805,512 |
Exercisable, Number of stock option | 22,805,512 | 22,805,512 |
Beginning balance, Weighted average exercise price | $0.22 | $0.22 |
Issued, Weighted average exercise price | ||
Exercised, Weighted average exercise price | ||
Forfeited, Weighted average exercise price | ||
Ending balance, Weighted average exercise price | $0.26 | $0.22 |
Exercisable, Weighted average exercise price | $0.22 | $0.22 |
Stockholders_Equity_Details_2
Stockholders Equity (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Summary of shares of Company's common stock issuable upon exercise of options outstanding | |
Stock Options Outstanding, Range of Exercise Price, Minimum | $0.20 |
Stock Options Outstanding, Range of Exercise Price, Maximum | $0.23 |
Stock Options Outstanding, Number Outstanding | 27,205,512 |
Stock Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 4 days |
Stock Options Outstanding, Weighted Average Exercise Price | $0.26 |
Stock Options Exercisable, Number Exercisable | 22,805,512 |
Stock Options Exercisable, Weighted Average Exercise Price | $0.22 |
Stockholders_Equity_Details_Te
Stockholders Equity (Details Textual) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 18, 2014 | Dec. 31, 2014 | Jul. 18, 2014 | Jul. 18, 2014 | Jul. 18, 2014 | Nov. 18, 2014 | Nov. 18, 2014 | Nov. 18, 2014 | Jul. 22, 2014 | Dec. 31, 2014 | Jul. 22, 2015 | Jul. 22, 2015 | |
USD ($) | USD ($) | Wuchang Erhexiang Pingfangdian Forestry Centre | Wuchang Erhexiang Pingfangdian Forestry Centre | Wuchang Erhexiang Pingfangdian Forestry Centre | Wuchang Erhexiang Pingfangdian Forestry Centre | Wuchang Erhexiang Pingfangdian Forestry Centre | Wuchang Erhexiang Pingfangdian Forestry Centre | Heilongjiang Zishan Technology Stock Co Ltd [Member] | 2012 Equity Incentive Plan [Member] | Company Tree Forests and Underlying Land [Member] | Stock Option [Member] | Stock Option [Member] | Stock Option [Member] | Stock Option One [Member] | Stock Option Two [Member] | Stock Option Three [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock One [Member] | |
USD ($) | CNY | December 31, 2013 [Member] | December 31, 2013 [Member] | May 31, 2015 [Member] | May 31, 2015 [Member] | USD ($) | USD ($) | acre | Director [Member] | Director One [Member] | Employe [Member] | 2012 Equity Incentive Plan [Member] | 2012 Equity Incentive Plan [Member] | 2012 Equity Incentive Plan [Member] | Service Provider Agreement [Member] | Service Provider Agreement [Member] | Service Provider Agreement [Member] | Service Provider Agreement [Member] | |||
USD ($) | CNY | USD ($) | CNY | 2012 Equity Incentive Plan [Member] | 2012 Equity Incentive Plan [Member] | 2012 Equity Incentive Plan [Member] | USD ($) | USD ($) | Subsequent Event [Member] | Subsequent Event [Member] | |||||||||||
USD ($) | USD ($) | USD ($) | |||||||||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||||||||||||||||
Total restricted shares award | 1,250,000 | ||||||||||||||||||||
Restricted common stock issued | 875,000 | 375,000 | 375,000 | ||||||||||||||||||
Total restricted shares award, value | $131,250 | $147,894 | |||||||||||||||||||
Issuance of common stock for services value | 335,394 | 187,500 | |||||||||||||||||||
Issued, Number of stock option | 4,400,000 | 200,000 | 200,000 | 200,000 | |||||||||||||||||
Exercise price of shares | $0.30 | $0.23 | $0.20 | $0.20 | $0.20 | ||||||||||||||||
Expiration period | 4 years | 4 years | 4 years | 4 years | 2 years | 3 years | |||||||||||||||
Stock options expiration description | Expires on August 1, 2018 from August 1, 2014. | Expires on August 1, 2018 from August 1, 2014. | Expires on August 1, 2018 from August 1, 2014. | ||||||||||||||||||
Stock options vesting period description | The options vest over a three-year time period from August 1, 2014, and 30%, 35%, and 35% of the total shares granted shall vest and become exercisable 12, 24, and 36 months after the initial vesting commencement date. | The options vest over a three-year time period from August 1, 2014, and 30%, 35%, and 35% of the total shares granted shall vest and become exercisable 12, 24, and 36 months after the initial vesting commencement date. | The options vest over a three-year time period from August 1, 2014, and 30%, 35%, and 35% of the total shares granted shall vest and become exercisable 12, 24, and 36 months after the initial vesting commencement date. | The options vest over a three-year time period from November 18, 2014, and 30%, 35%, and 35% of the total shares granted shall vest and become exercisable 12, 24, and 36 months after the initial vesting commencement date. | (2) The option has a term of two years starting from November 18, 2014, the vesting commencement date, and expires on November 18, 2016. The options vest over a one-year time period from November 18, 2014, and 100% of the total shares granted shall vest and become exercisable 12 months after the initial vesting commencement date. | (3) The option has a term of three years starting from 11/18/2014, the vesting commencement date, and expires on November 18, 2017. The options vest over a two-year time period, and 50% and the remaining 50% of the total shares shall vest and become exercisable 12 and 24 months respectively after the initial vesting commencement date. | |||||||||||||||
Expiration date | 18-Nov-18 | 18-Nov-16 | 18-Nov-17 | ||||||||||||||||||
Share-based payment award options outstanding intrinsic value | 2,150,441 | ||||||||||||||||||||
Share-based payment award options exercisable intrinsic value | 1,824,441 | ||||||||||||||||||||
Stock-based compensation | 166,222 | ||||||||||||||||||||
Area of land use rights (Metric"Mu") | 2,565 | ||||||||||||||||||||
Term of Contract | 38 years | 38 years | |||||||||||||||||||
Contract, Date | 7-Nov-51 | 7-Nov-51 | |||||||||||||||||||
Payments to acquire land | 7,700,000 | 47,200,000 | 3,500,000 | 21,200,000 | 4,300,000 | 26,000,000 | |||||||||||||||
Distribution to owners in connectin with purchase of yew forest assets from entity under common control | 2,338,212 | ||||||||||||||||||||
Due to related parties | $4,800,000 |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings per Share [Abstract] | ||
Net income available to common stockholders for basic and diluted net income per share of common stock | $4,284,177 | $3,899,730 |
Weighted average common stock outstanding - basic | 50,948,973 | 50,000,000 |
Effect of dilutive securities: | ||
Non-vested restricted common stock | 41,757 | |
Stock options issued to directors/officers/employees | 11,804,986 | |
Weighted average common stock outstanding - diluted | 62,795,716 | 50,000,000 |
Net income per common share - basic | $0.08 | $0.08 |
Net income per common share - diluted | $0.07 | $0.08 |
Concentrations_of_Credit_Risk_2
Concentrations of Credit Risk and Major Customers (Details) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
A (Yew Pharmaceutical, a related party) [Member] | ||||
Summary of major customer accounting for 10% or more of the Company's revenue | ||||
Percentage of revenue from major customers, in percentage | 26.78% | 20.84% | [1] | |
B [Member] | ||||
Summary of major customer accounting for 10% or more of the Company's revenue | ||||
Percentage of revenue from major customers, in percentage | 16.18% | [1] | ||
C [Member] | ||||
Summary of major customer accounting for 10% or more of the Company's revenue | ||||
Percentage of revenue from major customers, in percentage | [1] | 17.23% | ||
[1] | Less than 10% |
Concentrations_of_Credit_Risk_3
Concentrations of Credit Risk and Major Customers (Details 1) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Summary of major suppliers | ||||
Percentage of revenue from major suppliers | 10.00% | |||
A [Member] | ||||
Summary of major suppliers | ||||
Percentage of revenue from major suppliers | 19.00% | [1] | ||
B [Member] | ||||
Summary of major suppliers | ||||
Percentage of revenue from major suppliers | 15.00% | [1] | ||
C [Member] | ||||
Summary of major suppliers | ||||
Percentage of revenue from major suppliers | [1] | 98.00% | ||
[1] | Less than 10% |
Concentrations_of_Credit_Risk_4
Concentrations of Credit Risk and Major Customers (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Customer | Customer | |
Revenue [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration risk, Percentage | 10.00% | 10.00% |
Number of largest customer | 3 | 3 |
Purchase [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration risk, Percentage | 10.00% | 10.00% |
Number of largest suppliers | 2 | 1 |
Accounts payable to supplier | 0 | 0 |
Purchase [Member] | Supplier Concentration Risk [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration risk, Percentage | 34.00% | 98.00% |
Accounts receivable [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration risk, Percentage | 36.00% | 68.00% |
Number of largest customer | 3 | 3 |
Accounts receivable [Member] | Related Party [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration risk, Percentage | 27.00% | 47.00% |
Related_Party_Transactions_Det
Related Party Transactions (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Company's transactions with the related parties | |
Ownership, description | (i) any person that holds 10% or more of the Company's securities including such person's immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. |
Heilongjiang Zishan Technology Stock Co., Ltd. ("ZTC") [Member] | |
Company's transactions with the related parties | |
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 Pharmaceutical Co., Ltd. ("Yew Pharmaceutical") [Member] | |
Company's transactions with the related parties | |
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] | |
Company's transactions with the related parties | |
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] | |
Company's transactions with the related parties | |
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) (Related Party [Member], USD $) | Dec. 31, 2014 |
Related Party [Member] | |
Future minimum rental payments required under the related party operating leases | |
2015 | $135,365 |
2016 | 2,440 |
2017 | 2,440 |
2018 | 2,440 |
2019 | 2,440 |
Thereafter | 410,973 |
Total | $556,098 |
Related_Party_Transactions_Det2
Related Party Transactions (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of due to (from) related party | ||
Due to related parties | $45,040 | $4,850,637 |
Zhiguo Wang [Member] | ||
Schedule of due to (from) related party | ||
Due to related parties | 45,040 | 47,726 |
ZTC [Member] | ||
Schedule of due to (from) related party | ||
Due to related parties | $4,802,911 |
Related_Party_Transactions_Det3
Related Party Transactions (Details Textual) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 25, 2005 | Mar. 25, 2005 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 01, 2010 | Jan. 01, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 01, 2012 | Jul. 01, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 15, 2014 | Jan. 15, 2014 | Jan. 09, 2010 | Jan. 09, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2010 | Jan. 31, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
USD ($) | USD ($) | Agreement of Seedling Land with ZTC [Member] | Agreement of Seedling Land with ZTC [Member] | Agreement of Seedling Land with ZTC [Member] | Agreement of Seedling Land with ZTC [Member] | Office Lease [Member] | Office Lease [Member] | Office Lease [Member] | Office Lease [Member] | JSJ Lease [Member] | JSJ Lease [Member] | JSJ Lease [Member] | JSJ Lease [Member] | Yew Pharmaceutical [Member] | Yew Pharmaceutical [Member] | Yew Pharmaceutical [Member] | Yew Pharmaceutical [Member] | Yew Pharmaceutical [Member] | Yew Pharmaceutical [Member] | Kairun [Member] | Kairun [Member] | ZTC [Member] | ZTC [Member] | ZTC [Member] | Zhiguo Wang [Member] | Zhiguo Wang [Member] | |
USD ($) | CNY | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | CNY | Cooperation and Development Agreement [Member] | Cooperation and Development Agreement [Member] | Cooperation and Development Agreement [Member] | Cooperation and Development Agreement [Member] | Technology Agreement [Member] | Technology Agreement [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||
acre | sqm | USD ($) | CNY | USD ($) | USD ($) | USD ($) | CNY | ||||||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||||||||||||
Agreement expiration date | 24-Mar-35 | 24-Mar-35 | 31-Dec-25 | 31-Dec-25 | 30-Jun-15 | 30-Jun-15 | 9-Jan-20 | 9-Jan-20 | |||||||||||||||||||
Agreement expiration period | 30 years | 30 years | 15 years | 15 years | 3 years | 3 years | 10 years | 10 years | 2 years | 2 years | |||||||||||||||||
Cultivation price per metric ton | $158,000 | 1,000,000 | |||||||||||||||||||||||||
Sales | 2,069,225 | 1,550,458 | |||||||||||||||||||||||||
Accounts payable, related parties, current | |||||||||||||||||||||||||||
Leased area of land (Metric acre "Mu") | 361 | 361 | |||||||||||||||||||||||||
Accounts receivable, related parties, current | 340,132 | 377,821 | |||||||||||||||||||||||||
Leased Area | 30 | 30 | |||||||||||||||||||||||||
Annual payments under operating lease | 26,000 | 162,450 | 2,000 | 15,000 | 1,600 | 10,000 | |||||||||||||||||||||
Operating Leases, rent expense | 26,422 | 26,209 | 2,440 | 2,420 | 1,626 | 1,613 | |||||||||||||||||||||
Prepaid expenses - related party | 5,787 | 34,031 | 6,600 | 33,212 | 813 | 819 | |||||||||||||||||||||
Utilities, property insurance, real estate tax, association dues and certain other expenses | 16,078 | 10,336 | |||||||||||||||||||||||||
Payment made under agreement | 32,000 | 200,000 | |||||||||||||||||||||||||
Description of used office space | 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 | ||||||||||||||||||||||||||
Proceeds from related party advances | $1,220 | $58,400 | 360,000 | ||||||||||||||||||||||||
Loan agreement duration | The duration of the loan agreement started from January 15, 2014 through May 15, 2014. | The duration of the loan agreement started from January 15, 2014 through May 15, 2014. |
Statutory_Reserves_Details
Statutory Reserves (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
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. | |
Maximum percentage balance required of registered capital in reserve for business expansion | 50.00% | |
Appropriated to statutory surplus reserve | $503,648 | $417,624 |
Accumulated balance of the statutory reserve | $3,100,766 | $2,597,118 |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of reportable business segments | ||
Total Revenues | $7,726,576 | $7,439,648 |
Total Cost of Revenues | 2,136,597 | 2,407,400 |
Depreciation and amortization | 682,809 | 561,516 |
Net income for the year | 4,284,177 | 3,899,730 |
Segment reporting information, Additional information | ||
Identifiable long-lived assets, net | 21,162,070 | 21,986,640 |
TCM raw materials [Member] | ||
Summary of reportable business segments | ||
Total Revenues | 4,043,290 | 4,170,748 |
Total Cost of Revenues | 726,988 | 1,117,407 |
Depreciation and amortization | 491,838 | 370,564 |
Net income for the year | 3,316,304 | 3,053,341 |
Segment reporting information, Additional information | ||
Identifiable long-lived assets, net | 19,973,775 | 20,953,562 |
Yew trees [Member] | ||
Summary of reportable business segments | ||
Total Revenues | 3,208,643 | 3,011,728 |
Total Cost of Revenues | 1,004,371 | 1,097,470 |
Depreciation and amortization | 65,221 | 24,586 |
Net income for the year | 2,204,272 | 1,914,257 |
Segment reporting information, Additional information | ||
Identifiable long-lived assets, net | 915,551 | 632,583 |
Handicrafts [Member] | ||
Summary of reportable business segments | ||
Total Revenues | 173,412 | 257,172 |
Total Cost of Revenues | 152,794 | 192,523 |
Depreciation and amortization | 23,761 | 22,900 |
Net income for the year | 109,029 | 64,649 |
Segment reporting information, Additional information | ||
Identifiable long-lived assets, net | 63,319 | 94,124 |
Wood Ear Mushroom [Member] | ||
Summary of reportable business segments | ||
Total Revenues | 301,231 | |
Total Cost of Revenues | 252,444 | |
Depreciation and amortization | ||
Net income for the year | 48,787 | |
Segment reporting information, Additional information | ||
Identifiable long-lived assets, net | ||
Other [Member] | ||
Summary of reportable business segments | ||
Depreciation and amortization | 101,989 | 143,466 |
Net income for the year | -1,394,215 | -1,132,515 |
Segment reporting information, Additional information | ||
Identifiable long-lived assets, net | $209,425 | $306,371 |
Segment_Information_Details_Te
Segment Information (Details Textual) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment | Segment | |
Segment Information (Textual) | ||
Number of business segments | 4 | 4 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (A'cheng Lease [Member], CNY) | 1 Months Ended |
Mar. 31, 2002 | |
March 2002 to February 2012 [Member] | |
Schedule of lease payments | |
Annual lease amount | 25,000 |
Payment due date | Before December 2012 |
March 2012 to February 2017 [Member] | |
Schedule of lease payments | |
Annual lease amount | 25,000 |
Payment due date | Before December 2017 |
March 2017 to March 2025 [Member] | |
Schedule of lease payments | |
Annual lease amount | 25,000 |
Payment due date | Before December 2025 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 1) (A'cheng Lease [Member], USD $) | Dec. 31, 2014 |
A'cheng Lease [Member] | |
Future minimum rental payments required under the related party operating leases | |
2015 | |
2016 | |
2017 | 20,331 |
2018 | |
2019 | |
Thereafter | 28,464 |
Total | $48,795 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2010 | Mar. 31, 2002 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 25, 2010 | |
Trees | |||||
Commitments and contingencies (Textual) | |||||
Term of lease | 23 years | ||||
Lease expiration date | 19-Mar-25 | ||||
Rent expense related to the A'cheng Lease | $3,889 | $3,858 | |||
Percentage of HDS's publicly-published wholesale prices | 90.00% | ||||
Number of yew seedlings purchase annually by Xinlin | 10,000 | ||||
Sales under seedling agreement | $409,875 | $1,281,928 |
Joint_Venture_Agreement_for_Pl1
Joint Venture Agreement for Planting of Yew Trees (Details) | 1 Months Ended |
Mar. 31, 2004 | |
Metric_Acre | |
Joint Venture Agreement for Planting of Yew Trees (Textual) | |
Area of forest (Metric Acres) under joint venture agreement | 1,000,000 |
Joint venture agreement period | 2004 to 2034 |
Percentage of profit from planting of yew trees and other agriculture distributed to company | 80.00% |
Percentage of profit from planting of yew trees and other agriculture distributed to forest bureau | 20.00% |