Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 14, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Yew Bio-Pharm Group, Inc. | |
Entity Central Index Key | 1,548,240 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 51,875,000 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash | $ 964,701 | $ 681,608 |
Restricted cash | 295,380 | 303,511 |
Accounts receivable | 8,564,463 | 3,857,968 |
Accounts receivable - related parties | 3,546,845 | 6,489,495 |
Inventories | 12,570,532 | 4,665,549 |
Prepaid expenses - related parties | 85,252 | 106,370 |
Prepaid expenses and other assets | 45,796 | 64,174 |
VAT recoverables | 2,554,246 | 699,258 |
Total Current Assets | 28,627,215 | 16,867,933 |
LONG-TERM ASSETS: | ||
Long-term inventories, net | 14,417,140 | 12,334,261 |
Property and equipment, net | 686,583 | 702,764 |
Land use rights and yew forest assets, net | 4,893,115 | 13,906,379 |
Total Long-term Assets | 19,996,838 | 26,943,404 |
Total Assets | 48,624,053 | 43,811,337 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,650,084 | 11,345 |
Accounts payable - related party | 290,506 | 41,319 |
Accrued expenses and other payables | 496,988 | 124,686 |
Notes payable | 590,760 | 607,022 |
Taxes payable | 13,774 | 14,261 |
Due to related parties | 827,157 | 761,236 |
Short-term borrowings | 2,998,779 | 3,081,332 |
Total Current Liabilities | 6,868,048 | 4,641,201 |
Total Liabilities | 6,868,048 | 4,641,201 |
SHAREHOLDERS' EQUITY: | ||
Common Stock ($0.001 par value; 140,000,000 shares authorized; 51,875,000 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively) | 51,875 | 51,875 |
Additional paid-in capital | 9,868,076 | 9,622,558 |
Retained earnings | 28,106,385 | 25,067,733 |
Statutory reserves | 4,160,781 | 3,762,288 |
Accumulated other comprehensive income (loss) - foreign currency translation adjustment | (431,112) | 665,682 |
Total Shareholders' Equity | 41,756,005 | 39,170,136 |
Total Liabilities and Shareholders' Equity | $ 48,624,053 | $ 43,811,337 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares issued | 51,875,000 | 51,875,000 |
Common stock, shares outstanding | 51,875,000 | 51,875,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUES: | ||||
Revenues | $ 7,793,111 | $ 1,997,998 | $ 15,283,780 | $ 5,437,593 |
Revenues - related party | 6,873,988 | 2,999,203 | 24,063,798 | 6,868,985 |
Total Revenues | 14,667,099 | 4,997,201 | 39,347,578 | 12,306,578 |
COST OF REVENUES: | ||||
Cost of revenues | 7,650,346 | 1,900,418 | 15,085,190 | 3,807,777 |
Cost of revenues - related party | 5,597,721 | 1,677,625 | 19,800,134 | 3,228,355 |
Total Cost of Revenues | 13,248,067 | 3,578,043 | 34,885,324 | 7,036,132 |
GROSS PROFIT | 1,419,032 | 1,419,158 | 4,462,254 | 5,270,446 |
OPERATING EXPENSES: | ||||
Selling | 5,667 | 10,013 | 17,754 | 23,776 |
General and administrative | 293,850 | 474,560 | 938,920 | 1,417,338 |
Total Operating Expenses | 299,517 | 484,573 | 956,674 | 1,441,114 |
INCOME FROM OPERATIONS | 1,119,515 | 934,585 | 3,505,580 | 3,829,332 |
OTHER INCOME (EXPENSES): | ||||
Interest expense | (39,367) | (33,496) | (108,654) | (51,917) |
Government grant | 135,322 | |||
Other income | 390 | 36,496 | 40,219 | 32,023 |
Total Other Income (Expenses) | (38,977) | 3,000 | (68,435) | 115,428 |
INCOME BEFORE INCOME TAXES | 1,080,538 | 937,585 | 3,437,145 | 3,944,760 |
PROVISION FOR INCOME TAXES | (4,071) | (47,200) | ||
NET INCOME | 1,080,538 | 933,514 | 3,437,145 | 3,897,560 |
COMPREHENSIVE INCOME: | ||||
NET INCOME | 1,080,538 | 933,514 | 3,437,145 | 3,897,560 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Foreign currency translation adjustment | (198,125) | (1,701,546) | (1,096,794) | (1,319,999) |
COMPREHENSIVE INCOME | $ 882,413 | $ (768,032) | $ 2,340,351 | $ 2,577,561 |
NET INCOME PER COMMON SHARE: | ||||
Basic | $ 0.02 | $ 0.02 | $ 0.07 | $ 0.07 |
Diluted | $ 0.02 | $ 0.02 | $ 0.07 | $ 0.07 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic | 51,875,000 | 52,158,967 | 51,875,000 | 52,136,447 |
Diluted | 51,893,930 | 52,189,711 | 51,875,000 | 55,518,924 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 3,437,145 | $ 3,897,560 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation | 89,410 | 112,837 |
Stock-based compensation | 245,518 | 800,954 |
Stock issued for professional services | 3,356 | |
Amortization of land use rights and yew forest assets | 8,784,562 | 1,108,773 |
Gain on disposal of property and equipment | (32,083) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,873,750) | (783,741) |
Accounts receivable - related parties | 2,806,724 | 339,740 |
Prepaid expenses and other current assets | (7,999) | (269,309) |
Prepaid expenses - related parties | 18,519 | (375,030) |
Due from related party | (13,383) | |
Inventories | (10,567,924) | (5,191,187) |
VAT recoverables | (1,899,393) | (1,105,672) |
Accounts payable | 1,660,178 | |
Accounts payable - related party | 253,723 | |
Accrued expenses and other payables | 408,002 | 95,379 |
Advances from customers | 165,092 | |
Due to related parties | 7,471 | |
Taxes payable | (199) | 39,506 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 361,987 | (1,207,208) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (7,742) | (7,913) |
Payment for land use rights and yew forest assets | (1,362,205) | |
NET CASH USED IN INVESTING ACTIVITIES | (7,742) | (1,370,118) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term borrowings | 1,530,105 | 1,642,360 |
Repayment of short-term borrowings | (1,530,105) | |
Proceeds from related party | 181 | 658,255 |
Repayments to related party | (49,030) | (5,656) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (48,849) | 2,294,959 |
EFFECT OF EXCHANGE RATE ON CASH | (22,303) | (34,090) |
NET INCREASE (DECREASE) IN CASH | 283,093 | (316,457) |
CASH - Beginning of period | 681,608 | 487,940 |
CASH - End of period | 964,701 | 171,483 |
Cash paid for: | ||
Interest | 64,383 | 47,017 |
Income taxes | 6,460 | |
Non-cash investing and financing activities | ||
Operating expenses paid by related parties | 27,214 | |
Reclassification of yew forest assets to inventories | $ 190,817 |
Organization and Principal Acti
Organization and Principal Activities | 9 Months Ended |
Sep. 30, 2016 | |
Organization and Principal Activities [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed consolidated balance sheet as of December 31, 2015 was derived from the audited consolidated financial statements of Yew Bio-Pharm Group, Inc. (individually “YBP” and collectively with its subsidiaries and operating variable interest entity, the “Company”). The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the summary of significant accounting policies and notes to consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2015. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of September 30, 2016, and the results of operations and cash flows for the nine-month periods ended September 30, 2016 and 2015, have been made. The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company continually evaluates its estimates, including those related to bad debts, inventories, 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. Certain amounts from prior period financial statements have been reclassified to conform to the current period presentation. This reclassification has resulted in no changes to the Company’s accumulated deficit or net loss presented. Details of the Company’s subsidiaries, variable interest entity (“VIE”) and VIE’s subsidiary are as follows: Name Domicile and Date of Incorporation Registered Capital Effective Ownership Principal Activities Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”) PRC October 29, 2009 US$100,000 100% Holding company Yew Bio-Pharm Holdings Limited (“Yew Bio-Pharm (HK)”) Hong Kong November 29, 2010 HK$10,000 100% Holding company of JSJ Harbin Yew Science and Technology Development Co., Ltd. (“HDS”) PRC August 22, 1996 RMB45,000,000 Contractual arrangements Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings manufacture of yew tree wood handicrafts; and sales of candle and wood ear mushroom Harbin Yew Food Co., Ltd ("HYF") PRC November 4, 2014 RMB100,000 (1) 100% Sales of wood ear mushroom drink (1) Harbin Yew Food Co. Ltd is wholly owned by HDS and did not pay the registered capital as of September 30, 2016. |
Principles of Consolidation
Principles of Consolidation | 9 Months Ended |
Sep. 30, 2016 | |
Principles of Consolidation [Abstract] | |
PRINCIPLES OF CONSOLIDATION | NOTE 2 – PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the financial statements of YBP, its subsidiaries and operating VIE, in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated on consolidation. Pursuant to a restructuring plan intended to ensure compliance with applicable PRC laws and regulations (the “Second Restructure”), on November 5, 2010, JSJ entered into a series of contractual arrangements (the “Contractual Arrangements”) with HDS and/or Zhiguo Wang, his wife Guifang Qi and Xingming Han (collectively with Mr. Wang and Madame Qi, the “HDS Shareholders”), as described below: ● Exclusive Business Cooperation Agreement ● Exclusive Option Agreement . ● Equity Interest Pledge Agreement ● Power of Attorney . To the extent that the Contractual Arrangements are enforceable under PRC law, as from time to time interpreted by relevant state agencies, they constitute the valid and binding obligations of each of the parties to each such agreement. The Company believes that HDS is considered a VIE under ASC 810 “Consolidation”, because the equity investors in HDS no longer have the characteristics of a controlling financial interest, and the Company, through JSJ, is the primary beneficiary of HDS and controls HDS’ operations. Accordingly, HDS has been consolidated as a deemed subsidiary into YBP as a reporting company under ASC 810. As of September 30, 2016, 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’ operations. YBP has no direct or indirect legal or equity ownership interest in HDS. However, through the Contractual Arrangements, the stockholders of HDS have assigned all their rights as stockholders, including voting rights and disposition rights of their equity interests in HDS to JSJ, our indirect, wholly-owned subsidiary. YBP is deemed to be the primary beneficiary of HDS and the financial statements of HDS are consolidated in the Company’s consolidated financial statements. At September 30, 2016 and December 31, 2015, the carrying amount and classification of the assets and liabilities in the Company’s balance sheets that relate to the Company’s VIE and VIE’s subsidiary are as follows: September 30, December 31, Assets Cash $ 948,958 $ 662,038 Restricted cash 295,380 303,511 Accounts receivable 8,457,710 3,817,872 Accounts receivable – related parties 3,546,845 6,489,495 Inventories (current and long-term), net 26,285,467 16,342,789 Prepaid expenses and other assets 2,591,561 753,351 Prepaid expenses – related parties 85,252 106,370 Property and equipment, net 581,263 671,762 Land use rights and yew forest assets, net 4,867,977 13,906,379 Total assets of VIE $ 47,660,413 $ 43,053,567 Liabilities Accrued expenses and other payables $ 2,337,874 $ 174,808 Taxes payable 9,319 11,901 Due to VIE holding companies 646,843 1,046,366 Short-term borrowings 2,998,779 3,081,332 Note payable 590,760 607,022 Due to related parties 101,171 71,881 Total liabilities of VIE $ 6,684,746 $ 4,993,310 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventories [Abstract] | |
Inventories | NOTE 3 – INVENTORIES Inventories consisted of raw materials, work-in-progress, finished goods-handicrafts, yew candles and pine needle extracts, 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 September 30, 2016 and December 31, 2015, inventories consisted of the following: September 30, 2016 December 31, 2015 Current portion Long-term portion Total Current portion Long-term portion Total Raw materials $ 28,585 $ 2,590,053 $ 2,618,638 $ 39,341 $ 2,653,104 $ 2,692,445 Work-in-process - - - - - - Finished goods 11,948,247 606,419 12,554,666 1,332,323 717,355 2,049,678 Yew seedlings 495,937 7,863,576 8,359,513 2,426,990 6,397,951 8,824,941 Other trees 103,658 3,448,054 3,551,712 872,674 2,673,454 3,546,128 Total 12,576,427 14,508,102 27,084,529 4,671,328 12,441,864 17,113,192 Reserve for impairment - handicrafts (5,895 ) (90,962 ) (96,857 ) (5,779 ) (107,603 ) (113,382 ) Inventories, net $ 12,570,532 $ 14,417,140 $ 26,987,672 $ 4,665,549 $ 12,334,261 $ 16,999,810 |
Taxes
Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Taxes [Abstract] | |
TAXES | NOTE 4 – TAXES (a) Federal Income Tax and Enterprise Income Taxes The Company is registered in the State of Nevada and is subject to the United States federal income tax at a tax rate of 34%. No provision for income taxes in the U.S. has been made as the Company had no U.S. taxable income as of September 30, 2016 and December 31, 2015. The Company’s subsidiary, VIE and its subsidiary, JSJ, HDS, and HYF, 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 exceptions of handicrafts, yew candles, pine needle extract and wood ear mushroom sold, which are not within the scope of agricultural area. The combined effects of the income tax expense exemptions and tax reductions available to the Company for the three months and nine months ended September 30, 2016 and 2015 are as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Tax exemption effect $ 318,207 $ 317,419 $ 1,009,084 $ 1,185,109 Tax reduction due to loss carry-forward - - - 2,363 Loss not subject to income tax (2,548 ) (326 ) (12,853 ) (1,070 ) Basic net income per share effect $ (0.01 ) $ (0.01 ) $ (0.02 ) $ (0.02 ) Diluted net income per share effect $ (0.01 ) $ (0.01 ) $ (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 three months and nine months ended September 30, 2016 and 2015: Three Months Ended Nine Months Ended 2016 2015 2016 2015 U.S. federal income tax rate 34 % 34 % 34 % 34 % Foreign income not recognized in the U.S. (34 %) (34 %) (34 %) (34 %) PRC EIT rate 25 % 25 % 25 % 25 % PRC tax exemption and reduction (25 %) (25 %) (25 %) (24 %) Total provision for income taxes - - - % 1 % Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for income tax and financial reporting purposes. Temporary differences, which give rise to a net deferred tax asset for the Company as of September 30, 2016 and 2015, are as follows: September 30, December 31, U.S. tax benefit of net operating loss carry forward $ 1,431,319 $ 1,721,648 Valuation allowance (1,431,319 ) (1,721,648 ) Net deferred tax assets $ - $ - (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. |
Short-Term Borrowings and Notes
Short-Term Borrowings and Notes Payable | 9 Months Ended |
Sep. 30, 2016 | |
Short-Term Borrowings and Notes Payable [Abstract] | |
SHORT-TERM BORROWINGS AND NOTES PAYABLE | NOTE 5 – SHORT-TERM BORROWINGS AND NOTES PAYABLE On April 23, 2015, HDS entered into a loan agreement with Harbin Rongtong Branch of Bank of Communications (“BOCOM”) in the amount of RMB10,000,000 (approximately $1,630,000 at the time of borrowing). HDS paid off the loan in full on April 22, 2016. On May 30, 2016, HDS entered into a loan agreement with BOCOM in the amount of RMB10,000,000 (approximately $1,507,000), payable on May 30, 2017. The loan carries an interest rate of 5.8725% per annum and is payable quarterly. Heilongjiang Zishan Technology Co., Ltd. (“ZTC”), a related party controlled by Zhiguo Wang and his wife Madame Qi, collateralized its buildings and land use right with BOCOM to secure the loan. In addition, ZTC, Heilongjiang Yew Pharmaceutical Co., Ltd. (“Yew Pharmaceutical”), a related party of the Company, Zhiguo Wang, Madame Qi, Yicheng Wang, the son of Zhiguo Wang and Yuqi Mao, the spouse of Yicheng Wang, provided guarantees to the loan. On November 24, 2015, the Company executed a loan in the form of factoring agreement with Shanghai Pudong Development Bank (“SPD Bank”) Harbin Branch in the principal amount of RMB10,000,000 (approx. $1,560,000). The loan carries an interest rate of 3.969% per annum and is payable, together with the principal, on November 18, 2016. The proceeds of the loan will be used by the Company to purchase raw materials and for general corporate purposes. Madam Qi has secured the loan with her personal assets. In addition, Yew Pharmaceutical, Yicheng Wang, the son of Zhiguo Wang and Yuqi Mao, the spouse of Yicheng Wang, provided guarantees to the loan. On November 26, 2015, the Company issued several commercial acceptance notes to Yew Pharmaceutical with the total principal amount of RMB3,940,000 (approximately $610,000) to pay partial of the account payable owed. The terms of the commercial acceptance notes include the same maturity date of May 26, 2016 with no interest. On May 26, 2016, the Company paid off the commercial acceptance notes in full. On May 27, 2016, the Company issued several commercial acceptance notes to Yew Pharmaceutical with the total principal amount of RMB3,940,000 (approximately $594,000) to pay partial of the account payable owed. The terms of the commercial acceptance notes include the same maturity date of November 27, 2016 with no interest. The commercial acceptance notes are secured by a deposit of RMB1,970,000 (approximately $300,000) from the Company. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 6 – STOCKHOLDERS’ EQUITY Stock option activities for the nine months ended September 30, 2016 and 2015 were summarized in the following table. Nine Months Ended Nine Months Ended Number of Stock Options Weighted Average Exercise Price Number of Stock Options Weighted Average Exercise Price Balance at beginning of period 26,805,512 0.22 27,205,512 0.26 Exercised - - - - Forfeited - - 400,000 0.23 Balance at end of period 26,805,512 0.22 26,805,512 0.22 Option exercisable at end of period 24,945,512 0.22 22,985,512 0.22 The following table summarizes the shares of the Company's common stock issuable upon exercise of options outstanding at September 30, 2016: Stock Options Outstanding Stock Options Exercisable Range of Number Weighted Average Weighted Number Weighted $ 0.20-0.23 26,805,512 1.25 $ 0.22 24,945,512 $ 0.22 The Company's outstanding stock options and exercisable stock options had no intrinsic value, based upon the Company's closing stock price of $0.15 as of September 30, 2016. Stock option expense recognized during the nine months ended September 30, 2016 amounted to $245,518. There were no stock warrants issued, terminated, forfeited and exercised during the nine months ended September 30, 2016. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 7 – EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted net income per share for the three and nine months ended September 30, 2016 and 2015: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net income available to common stockholders for basic and diluted net income per share of common stock $ 1,080,538 $ 933,514 $ 3,437,145 $ 3,897,560 Weighted average common stock outstanding – basic 51,875,000 52,158,967 51,875,000 52,136,447 Effect of dilutive securities: Non-vested restricted common stock - 30,744 - 136,895 Stock options issued to directors/officers/employees 18,930 - - 3,245,582 Weighted average common stock outstanding – diluted 51,893,930 52,189,711 51,875,000 55,518,924 Net income per common share – basic $ 0.02 $ 0.02 $ 0.07 $ 0.07 Net income per common share – diluted $ 0.02 $ 0.02 $ 0.07 $ 0.07 |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Major Customers | 9 Months Ended |
Sep. 30, 2016 | |
Concentrations of Credit Risk and Major Customers [Abstract] | |
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | NOTE 8 – CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS Customers For the three and nine months ended September 30, 2016 and 2015, customers accounting for 10% or more of the Company’s revenue were as follows: Three Months Ended September 30, Nine Months Ended September 30, Customer 2016 2015 2016 2015 A (Yew Pharmaceutical, a related party) 47 % 40 % 61 % 56 % B 20 % 38 % 25 % 28 % The two largest customers accounted for 99% and 94% of the Company’s total outstanding accounts receivable at September 30, 2016 and December 31, 2015, respectively, of which Yew Pharmaceutical, a related party, accounted for 29% and 63% of total outstanding accounts receivable, respectively. Suppliers For the three and nine months ended September 30, 2016 and 2015, suppliers accounting for 10% or more of the Company’s purchase were as follows: Three Months Ended Nine Months Ended September 30, Supplier 2016 2015 2016 2015 A (Yew Pharmaceutical, a related party) 71 % 67 % 76 % 52 % B * % 15 % * % 17 % C * % 10 % * % 16 % * Less than 10% Accounts payable to Yew Pharmaceutical accounted for 15% and 78% of the Company’s total accounts payable at September 30, 2016 and December 31, 2015, respectively. The Company had no accounts payable to Supplier B or C at September 30, 2016 and December 31, 2015. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 9 – 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. Hongdoushan Bio-Pharmaceutical Co., Ltd. (“HBP”) 30% owned by Mr. Wang, 19% owned by Madame Qi and 51% owned by HEFS. Heilongjiang Pingshan Hongdoushan Development Co., Ltd. (“HDS Development”) 80% owned by HEFS and 20% owned by Kairun Wuchang City Xinlin Forestry Co., Ltd. (Xinlin) 98% owned by ZTC and 2% owned by HEFS effective March 21, 2016. Changzhi Du Legal representative of Xinlin. Jinguo Wang Manager in charge of inventory and forest assets in HDS. Transactions with Yew Pharmaceutical 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 Yew Pharmaceuticals, pursuant to which the Company sells wood ear mushroom collected from local peasants to Yew Pharmaceuticals for manufacturing of wood ear mushroom products. Furthermore, the Company entered into a series of yew candles and pine needle extracts purchase agreements with Yew Pharmaceuticals, pursuant to which the Company purchases yew candles and pine needle extracts as finished goods and then sells to third party. For the nine months ended September 30, 2016 and 2015, sales to Yew Pharmaceutical under the above agreements amounted to $24,063,798 and $6,868,985, respectively. At September 30, 2016 and December 31, 2015, the Company had $3,546,845 and $6,484,804 accounts receivable from Yew Pharmaceutical, respectively. For the nine months ended September 30, 2016, the total purchase of yew candles and pine needle extracts from Yew Pharmaceutical amounted to $29,330,000. For the nine months ended September 30, 2016, HYF purchased wood ear mushroom extracts from Yew Pharmaceutical in the amount of $3,660 and had accounts payable of $43,872 to Yew Pharmaceutical at September 30, 2016. At September 30, 2016 and December 31, 2015, HYF had $38,997 and $40,071, respectively, due to Yew Pharmaceutical, which represents an unsecured loan bearing no interest and payable on demand and was included in due to related parties on the accompanying consolidated balance sheets. Transactions with HBP At September 30, 2016 and December 31, 2015, HYF had accounts receivable from HBP in the amount of $nil and $4,691, respectively. At December 31, 2015, HYF had due to HBP in the amount of $27,097, which represents an unsecured loan bearing no interest and payable on demand. During the nine months ended September 30, 2016, HBP paid off operation expenses on behalf of HYF in the amount of $27,214. As of September 30, 2016, HYF had due to HBP in the amount of $53,217, which was included in due to related parties on the accompanying consolidated balance sheets. Transactions with HDS Development On January 20, 2016, the Company prepaid $310,334 to HDS Development for purchasing yew seedlings. On June 30, 2016, the prepayment was returned to the Company in full due to the cancellation of the purchase. Transactions with Xinlin On May 31, 2016, HDS purchased yew seedlings from Xinlin in the amount of $539,780. As of September 30, 2016 and December 31, 2015, the Company had no accounts payable to Xinlin. Transactions with Changzhi Du For the nine months ended September 30, 2016, HDS purchased yew seedlings from Changzhi Du in the amount of $2,475,283. As of September 30, 2016, the Company had accounts payable of $246,634 to Changzhi Du. Transactions with Jinguo Wang On May 31, 2016, HDS purchased yew seedlings from Jinguo Wang in the amount of $449,817. As of September 30, 2016 and December 31, 2015, the Company had no accounts payable to Jinguo Wang. 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 $25,000). 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 nine months ended September 30, 2016 and 2015, rent expense related to the ZTC Lease amounted to $18,518 and $19,777, respectively. At September 30, 2016 and December 31, 2015, prepaid rent to ZTC amounted to $85,252 and $106,370, respectively, 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 nine months ended September 30, 2016 and 2015, rent expense related to the Office Lease amounted to $1,710 and $1,826, respectively. At September 30, 2016 and December 31, 2015, the unpaid rent was $2,667 and $1,138, respectively, which was included in due to related parties on the accompanying consolidated balance sheets. 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 $1,500) annually. The term of the JSJ Lease is three years and expires on June 30, 2015. On July 1, 2015, the Company and Mr. Wang renewed the JSJ Lease. The renewed lease expires on June 30, 2018. For the nine months ended September 30, 2016 and 2015, rent expense related to the JSJ Lease amounted to $1,140 and $1,217, respectively. At September 30, 2016 and December 31, 2015, the unpaid rent was $3,374 and $2,311, respectively, which was included in due to related parties on the accompanying consolidated balance sheets. The Company leased office space in the A’cheng district in Harbin (the “A’cheng Lease”) from HDS Development on March 20, 2002. The A’cheng Lease is for a term of 23 years and expires on March 19, 2025. Pursuant to the A’cheng Lease, lease payment shall be made as follows: 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 For the nine months ended September 30, 2016 and 2015, rent expense related to the A’cheng Lease amounted $2,726 and $2,991, respectively. At September 30, 2016 and December 31, 2015, the unpaid rent was $4,686 and $1,926, respectively, which was included in due to related parties on the accompanying consolidated balance sheets. Due to Shareholders The Company’s officers and directors, from time to time, provided advances to the Company for working capital purpose. These advances are usually short-term in nature, non-interest bearing, unsecured and payable on demand. During the nine months ended September 30, 2016, Zhiguo Wang bought a vehicle for the Company in the amount of $82,491. As of September 30, 2016 and December 31, 2015, the Company had $104,845 and $40,970 due to Zhiguo Wang, respectively, which was included in due to related parties on the accompanying consolidated balance sheets. On May 15, 2015, the Company borrowed $648,000 from Madame Qi through the issuance of a subordinated promissory note. The note bears 2% interest per annum and shall be payable on or before November 15, 2015 (“Due Date”). Interest payment shall be made with principal on Due Date. On September 28, 2015, Madame Qi and the Company agreed to extend the Due Date to January 31, 2016, with the remaining terms of the note unchanged. On January 15, 2016, the Company and Madame Qi entered into an agreement to further extend the Due Date of the note to December 31, 2016. During the nine months ended September 30, 2016, the Company made repayments of $49,030 to Madame Qi. As of September 30, 2016, the total borrowings including the interest were $619,371, which was included in due to related parties on the accompanying consolidated balance sheets. 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 September 30, 2016, Kairun has not yet completed the services provided for in the Technology Agreement and, therefore, no payment was made to Kairun. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | NOTE 10 – SEGMENT INFORMATION ASC 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. For the three and nine months ended September 30, 2016 and 2015, the Company operated in five reportable business segments: (1) the TCM raw materials segment, consisting of the production and sale of yew raw materials or yew tree extracts used in the manufacture of TCM; (2) the yew tree segment, consisting of the growth and sale of yew tree seedlings and mature trees; (3) the handicrafts segment, consisting of the manufacture and sale of handicrafts and furniture made of yew timber; (4) the wood ear mushroom segment, consisting of the sale of wood ear mushroom; and (5) Others, currently consisting of the sale of yew candles, pine needle extracts and dietary supplement named "Auri Essence". 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 except the sales of dietary supplement are conducted in the PRC. Information with respect to these reportable business segments for the three and nine months ended September 30, 2016 and 2015 was as follows: T hree Months Ended, September 30, Nine Months Ended, 2016 2015 2016 2015 Revenues: TCM raw materials $ 6,873,988 $ 2,845,904 $ 24,063,798 $ 7,712,224 Yew trees - 96,275 23,246 1,139,946 Handicrafts 1,087 15,417 97,560 110,131 Wood ear mushroom - 134,962 - 1,439,634 Others 7,792,024 1,904,643 15,162,974 1,904,643 $ 14,667,099 $ 4,997,201 $ 39,347,578 $ 12,306,578 Cost of revenues: TCM raw materials 5,618,504 1,586,981 19,820,917 3,582,502 Yew trees - 18,460 19,458 326,996 Handicrafts 14,486 8,000 91,145 23,118 Wood ear mushroom - 124,547 - 1,263,461 Others 7,615,077 1,840,055 14,953,804 1,840,055 $ 13,248,067 $ 3,578,043 $ 34,885,324 $ 7,036,132 Depreciation and amortization: TCM raw materials - 643 83,739 269,009 Yew trees 67,056 143,096 93,807 152,686 Handicrafts 6,501 6,926 19,766 21,109 Wood ear mushroom - - - - Others (19,294 ) 31,061 21,747 63,072 $ 54,263 $ 181,726 $ 219,059 $ 505,876 Net income (loss): TCM raw materials 1,255,483 1,258,923 4,242,881 4,129,722 Yew trees (26 ) 77,815 3,788 812,950 Handicrafts (13,399 ) 7,417 6,415 87,013 Wood ear mushroom - 10,415 - 176,173 Others (161,520 ) (421,056 ) (815,939 ) (1,308,298 ) $ 1,080,538 $ 933,514 $ 3,437,145 $ 3,897,560 September 30, 2016 TCM raw materials Yew trees Handicrafts Wood ear mushroom Others Total Identifiable long-lived assets, net $ 4,579,660 $ 757,679 $ 12,925 $ - $ 229,439 $ 5,579,703 December 31, 2015 TCM raw materials Yew trees Handicrafts Wood ear mushroom Others Total Identifiable long-lived assets, net $ 13,602,178 $ 816,926 $ 33,316 $ - $ 156,723 $ 14,609,143 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 – COMMITMENTS AND CONTINGENCIES Operating Lease On February 1, 2015, the Company entered into a lease for its U.S. principal office space in California. Pursuant to the office lease, the monthly payment of $3,261 is due on the first day of each month of the first year, and $3,372 for each month of the second year. The term of the lease is for 3 years and expires on January 31, 2018. For the nine months ended September 30, 2016 and 2015, rent expense related to the U.S. principal office lease amounted to $30,352 and $26,090, respectively. See Note 9 for related party operating lease commitments. Seedling Purchase and Sale Long-Term Cooperation Agreement On November 25, 2010, HDS entered into a Seedling Purchase and Sale Long-Term Cooperation Agreement (the “Seedling Agreement”) with Wuchang City Xinlin Foresty Co., Ltd (“Xinlin”), a related party of the Company, pursuant to which HDS will sell yew seedlings to Xinlin at a price equal to 90% of HDS’s publicly-published wholesale prices. Xinlin has agreed to purchase from the Company 10,000 yew seedlings annually. For the nine months ended September 30, 2016 and 2015, the Company didn’t make sales under the Seedling Agreement. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
Recent Accounting Pronouncements [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 12 – RECENT ACCOUNTING PRONOUNCEMENTS In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”. The amendments in this ASU add further guidance on identifying performance obligations and also to improve the operability and understandability of the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting 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 May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients”. The amendments in this ASU, among other things: (1) clarify the objective of the collectibility criterion for applying paragraph 606-10-25-7; (2) permit an entity to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price; (3) specify that the measurement date for noncash consideration is contract inception; (4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations; (5) clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application, and (6) clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. The effective date of these amendments is at the same date that Topic 606 is effective. Topic 606 is effective for public entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”. These amendments provide cash flow statement classification guidance for: 1. Debt Prepayment or Debt Extinguishment Costs; 2. Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; 3. Contingent Consideration Payments Made after a Business Combination; 4. Proceeds from the Settlement of Insurance Claims; 5. Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies; 6. Distributions Received from Equity Method Investees; 7. Beneficial Interests in Securitization Transactions; and 8. Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted, including adoption in an interim period. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In September 2016, the FASB issued ASU 2016-17, “Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control”. These amendments change the evaluation of whether a reporting entity is the primary beneficiary of a variable interest entity by changing how a reporting entity that is a single decision maker of a variable interest entity treats indirect interests in the entity held through related parties that are under common control with the reporting entity. If a reporting entity satisfies the first characteristic of a primary beneficiary (such that it is the single decision maker of a variable interest entity), the amendments require that reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, to include all of its direct variable interests in a variable interest entity and, on a proportionate basis, its indirect variable interests in a variable interest entity held through related parties, including related parties that are under common control with the reporting entity. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity adopts the pending content that links to this paragraph in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. |
Organization and Principal Ac18
Organization and Principal Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Organization and Principal Activities [Abstract] | |
Schedule of Company's subsidiaries and variable interest entities | Name Domicile and Date of Incorporation Registered Capital Effective Ownership Principal Activities Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”) PRC October 29, 2009 US$100,000 100% Holding company Yew Bio-Pharm Holdings Limited (“Yew Bio-Pharm (HK)”) Hong Kong November 29, 2010 HK$10,000 100% Holding company of JSJ Harbin Yew Science and Technology Development Co., Ltd. (“HDS”) PRC August 22, 1996 RMB45,000,000 Contractual arrangements Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings manufacture of yew tree wood handicrafts; and sales of candle and wood ear mushroom Harbin Yew Food Co., Ltd ("HYF") PRC November 4, 2014 RMB100,000 (1) 100% Sales of wood ear mushroom drink (1) Harbin Yew Food Co. Ltd is wholly owned by HDS and did not pay the registered capital as of September 30, 2016. |
Principles of Consolidation (Ta
Principles of Consolidation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Principles of Consolidation [Abstract] | |
Schedule of carrying amount of assets and liabilities related to variable interest entity | September 30, December 31, Assets Cash $ 948,958 $ 662,038 Restricted cash 295,380 303,511 Accounts receivable 8,457,710 3,817,872 Accounts receivable – related parties 3,546,845 6,489,495 Inventories (current and long-term), net 26,285,467 16,342,789 Prepaid expenses and other assets 2,591,561 753,351 Prepaid expenses – related parties 85,252 106,370 Property and equipment, net 581,263 671,762 Land use rights and yew forest assets, net 4,867,977 13,906,379 Total assets of VIE $ 47,660,413 $ 43,053,567 Liabilities Accrued expenses and other payables $ 2,337,874 $ 174,808 Taxes payable 9,319 11,901 Due to VIE holding companies 646,843 1,046,366 Short-term borrowings 2,998,779 3,081,332 Note payable 590,760 607,022 Due to related parties 101,171 71,881 Total liabilities of VIE $ 6,684,746 $ 4,993,310 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventories [Abstract] | |
Schedule of inventories | September 30, 2016 December 31, 2015 Current portion Long-term portion Total Current portion Long-term portion Total Raw materials $ 28,585 $ 2,590,053 $ 2,618,638 $ 39,341 $ 2,653,104 $ 2,692,445 Work-in-process - - - - - - Finished goods 11,948,247 606,419 12,554,666 1,332,323 717,355 2,049,678 Yew seedlings 495,937 7,863,576 8,359,513 2,426,990 6,397,951 8,824,941 Other trees 103,658 3,448,054 3,551,712 872,674 2,673,454 3,546,128 Total 12,576,427 14,508,102 27,084,529 4,671,328 12,441,864 17,113,192 Reserve for impairment - handicrafts (5,895 ) (90,962 ) (96,857 ) (5,779 ) (107,603 ) (113,382 ) Inventories, net $ 12,570,532 $ 14,417,140 $ 26,987,672 $ 4,665,549 $ 12,334,261 $ 16,999,810 |
Taxes (Tables)
Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Taxes [Abstract] | |
Effects of income tax expense exemptions and tax reductions | Three Months Ended Nine Months Ended 2016 2015 2016 2015 Tax exemption effect $ 318,207 $ 317,419 $ 1,009,084 $ 1,185,109 Tax reduction due to loss carry-forward - - - 2,363 Loss not subject to income tax (2,548 ) (326 ) (12,853 ) (1,070 ) Basic net income per share effect $ (0.01 ) $ (0.01 ) $ (0.02 ) $ (0.02 ) Diluted net income per share effect $ (0.01 ) $ (0.01 ) $ (0.02 ) $ (0.02 ) |
Summary of difference between U.S. statutory federal tax rate and Company's effective tax rate | Three Months Ended Nine Months Ended 2016 2015 2016 2015 U.S. federal income tax rate 34 % 34 % 34 % 34 % Foreign income not recognized in the U.S. (34 %) (34 %) (34 %) (34 %) PRC EIT rate 25 % 25 % 25 % 25 % PRC tax exemption and reduction (25 %) (25 %) (25 %) (24 %) Total provision for income taxes - - - % 1 % |
Summary of net deferred tax assets | September 30, December 31, U.S. tax benefit of net operating loss carry forward $ 1,431,319 $ 1,721,648 Valuation allowance (1,431,319 ) (1,721,648 ) Net deferred tax assets $ - $ - |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity [Abstract] | |
Summary of stock option activities | Nine Months Ended Nine Months Ended Number of Stock Options Weighted Average Exercise Price Number of Stock Options Weighted Average Exercise Price Balance at beginning of period 26,805,512 0.22 27,205,512 0.26 Exercised - - - - Forfeited - - 400,000 0.23 Balance at end of period 26,805,512 0.22 26,805,512 0.22 Option exercisable at end of period 24,945,512 0.22 22,985,512 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 $ 0.20-0.23 26,805,512 1.25 $ 0.22 24,945,512 $ 0.22 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings per Share [Abstract] | |
Schedule of earnings per share | Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net income available to common stockholders for basic and diluted net income per share of common stock $ 1,080,538 $ 933,514 $ 3,437,145 $ 3,897,560 Weighted average common stock outstanding – basic 51,875,000 52,158,967 51,875,000 52,136,447 Effect of dilutive securities: Non-vested restricted common stock - 30,744 - 136,895 Stock options issued to directors/officers/employees 18,930 - - 3,245,582 Weighted average common stock outstanding – diluted 51,893,930 52,189,711 51,875,000 55,518,924 Net income per common share – basic $ 0.02 $ 0.02 $ 0.07 $ 0.07 Net income per common share – diluted $ 0.02 $ 0.02 $ 0.07 $ 0.07 |
Concentrations of Credit Risk24
Concentrations of Credit Risk and Major Customers (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Customer [Member] | |
Concentration Risk [Line Items] | |
Summary of major customers and suppliers | Three Months Ended September 30, Nine Months Ended September 30, Customer 2016 2015 2016 2015 A (Yew Pharmaceutical, a related party) 47 % 40 % 61 % 56 % B 20 % 38 % 25 % 28 % |
Supplier [Member] | |
Concentration Risk [Line Items] | |
Summary of major customers and suppliers | Three Months Ended Nine Months Ended September 30, Supplier 2016 2015 2016 2015 A (Yew Pharmaceutical, a related party) 71 % 67 % 76 % 52 % B * % 15 % * % 17 % C * % 10 % * % 16 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of 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. Hongdoushan Bio-Pharmaceutical Co., Ltd. (“HBP”) 30% owned by Mr. Wang, 19% owned by Madame Qi and 51% owned by HEFS. Heilongjiang Pingshan Hongdoushan Development Co., Ltd. (“HDS Development”) 80% owned by HEFS and 20% owned by Kairun Wuchang City Xinlin Forestry Co., Ltd. (Xinlin) 98% owned by ZTC and 2% owned by HEFS effective March 21, 2016. Changzhi Du Legal representative of Xinlin. Jinguo Wang Manager in charge of inventory and forest assets in HDS. |
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 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Information [Abstract] | |
Summary of reportable business segments | T hree Months Ended, September 30, Nine Months Ended, 2016 2015 2016 2015 Revenues: TCM raw materials $ 6,873,988 $ 2,845,904 $ 24,063,798 $ 7,712,224 Yew trees - 96,275 23,246 1,139,946 Handicrafts 1,087 15,417 97,560 110,131 Wood ear mushroom - 134,962 - 1,439,634 Others 7,792,024 1,904,643 15,162,974 1,904,643 $ 14,667,099 $ 4,997,201 $ 39,347,578 $ 12,306,578 Cost of revenues: TCM raw materials 5,618,504 1,586,981 19,820,917 3,582,502 Yew trees - 18,460 19,458 326,996 Handicrafts 14,486 8,000 91,145 23,118 Wood ear mushroom - 124,547 - 1,263,461 Others 7,615,077 1,840,055 14,953,804 1,840,055 $ 13,248,067 $ 3,578,043 $ 34,885,324 $ 7,036,132 Depreciation and amortization: TCM raw materials - 643 83,739 269,009 Yew trees 67,056 143,096 93,807 152,686 Handicrafts 6,501 6,926 19,766 21,109 Wood ear mushroom - - - - Others (19,294 ) 31,061 21,747 63,072 $ 54,263 $ 181,726 $ 219,059 $ 505,876 Net income (loss): TCM raw materials 1,255,483 1,258,923 4,242,881 4,129,722 Yew trees (26 ) 77,815 3,788 812,950 Handicrafts (13,399 ) 7,417 6,415 87,013 Wood ear mushroom - 10,415 - 176,173 Others (161,520 ) (421,056 ) (815,939 ) (1,308,298 ) $ 1,080,538 $ 933,514 $ 3,437,145 $ 3,897,560 |
Summary of identifiable long-lived assets, net | September 30, 2016 TCM raw materials Yew trees Handicrafts Wood ear mushroom Others Total Identifiable long-lived assets, net $ 4,579,660 $ 757,679 $ 12,925 $ - $ 229,439 $ 5,579,703 December 31, 2015 TCM raw materials Yew trees Handicrafts Wood ear mushroom Others Total Identifiable long-lived assets, net $ 13,602,178 $ 816,926 $ 33,316 $ - $ 156,723 $ 14,609,143 |
Organization and Principal Ac27
Organization and Principal Activities (Details) - 9 months ended Sep. 30, 2016 | USD ($) | HKD | CNY (¥) | |
Heilongjiang Jinshangjing Bio-Technology Development Co., Limited ("JSJ") [Member] | ||||
Schedule of Company's subsidiaries and variable interest entities | ||||
Domicile and Date of Incorporation | PRC October 29, 2009 | |||
Registered Capital | $ | $ 100,000 | |||
Effective Ownership, Percentage | 100.00% | |||
Principal Activities | Holding company | |||
Yew Bio-Pharm Holdings Limited ("Yew Bio-Pharm (HK)") [Member] | ||||
Schedule of Company's subsidiaries and variable interest entities | ||||
Domicile and Date of Incorporation | Hong Kong November 29, 2010 | |||
Registered Capital | HKD | HKD 10,000 | |||
Effective Ownership, Percentage | 100.00% | |||
Principal Activities | Holding company of JSJ | |||
Harbin Yew Science and Technology Development Co., Ltd. ("HDS") [Member] | ||||
Schedule of Company's subsidiaries and variable interest entities | ||||
Domicile and Date of Incorporation | PRC August 22, 1996 | |||
Registered Capital | ¥ 45,000,000 | |||
Effective Ownership | Contractual arrangements | |||
Principal Activities | Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings manufacture of yew tree wood handicrafts; and sales of candle and wood ear mushroom | |||
Harbin Yew Food Co., Ltd ("HYF") [Member] | ||||
Schedule of Company's subsidiaries and variable interest entities | ||||
Domicile and Date of Incorporation | PRC November 4, 2014 | |||
Registered Capital | [1] | ¥ 100,000 | ||
Effective Ownership, Percentage | 100.00% | |||
Principal Activities | Sales of wood ear mushroom drink | |||
[1] | Harbin Yew Food Co. Ltd is wholly owned by HDS and did not pay the registered capital as of June 30, 2016. |
Principles of Consolidation (De
Principles of Consolidation (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total assets of VIE | $ 47,660,413 | $ 43,053,567 |
Total liabilities of VIE | 6,684,746 | 4,993,310 |
Cash [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total assets of VIE | 948,958 | 662,038 |
Restricted cash [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total assets of VIE | 295,380 | 303,511 |
Accounts receivable [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total assets of VIE | 8,457,710 | 3,817,872 |
Accounts receivable - related parties [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total assets of VIE | 3,546,845 | 6,489,495 |
Inventories (current and long-term), net [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total assets of VIE | 26,285,467 | 16,342,789 |
Prepaid expenses and other assets [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total assets of VIE | 2,591,561 | 753,351 |
Prepaid expenses - related parties [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total assets of VIE | 85,252 | 106,370 |
Property and equipment, net [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total assets of VIE | 581,263 | 671,762 |
Land use rights and yew forest assets, net [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total assets of VIE | 4,867,977 | 13,906,379 |
Accrued expenses and other payables [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total liabilities of VIE | 2,337,874 | 174,808 |
Taxes payable [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total liabilities of VIE | 9,319 | 11,901 |
Due to VIE holding companies [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total liabilities of VIE | 646,843 | 1,046,366 |
Short-term borrowings [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total liabilities of VIE | 2,998,779 | 3,081,332 |
Note payable [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total liabilities of VIE | 590,760 | 607,022 |
Due to related parties [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Total liabilities of VIE | $ 101,171 | $ 71,881 |
Principles of Consolidation (29
Principles of Consolidation (Details Textual) | 9 Months Ended |
Sep. 30, 2016 | |
Organization and Principal Activities (Textual) | |
Monthly consulting service fee as percentage of net income of HDS paid to JSJ | 100.00% |
HDS obligation within 30 days after the end of each month | Within 30 days after the end of each month, HDS shall (a) deliver to JSJ the management accounts and operating statistics of HDS for such month, including the net income of HDS during such month (the "Monthly Net Income"), and (b) pay 80% of such Monthly Net Income to JSJ (each such payment, a "Monthly Payment"). |
HDS obligation within 90 days after the end of each month | Within ninety (90) days after the end of each fiscal year, HDS shall (a) deliver to JSJ financial statements of HDS for such fiscal year, which shall be audited and certified by an independent certified public accountant approved by JSJ, and (b) pay an amount to JSJ equal to the shortfall, if any, of the aggregate net income of HDS for such fiscal year, as shown in such audited financial statements, as compared to the aggregate amount of the Monthly Payments paid by HDS to JSJ in such fiscal year. |
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 | Nov. 5, 2020 |
Notice period for termination of contract | 30 days |
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 | Nov. 5, 2020 |
Description of notice period for remedies for any breach in terms agreement | Within 20 days after the giving of notice of breach. |
Inventories (Details)
Inventories (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of inventories | ||
Current portion | $ 12,570,532 | $ 4,665,549 |
Long-term portion | 14,417,140 | 12,334,261 |
Inventories, Total | 23,166,786 | 16,999,810 |
Raw materials [Member] | ||
Schedule of inventories | ||
Current portion | 28,585 | 39,341 |
Long-term portion | 2,590,053 | 2,653,104 |
Inventories, Total | 2,618,638 | 2,692,445 |
Work-in-process [Member] | ||
Schedule of inventories | ||
Current portion | ||
Long-term portion | ||
Inventories, Total | ||
Finished goods [Member] | ||
Schedule of inventories | ||
Current portion | 11,948,247 | 1,332,323 |
Long-term portion | 606,419 | 717,355 |
Inventories, Total | 12,554,666 | 2,049,678 |
Yew seedlings [Member] | ||
Schedule of inventories | ||
Current portion | 495,937 | 2,426,990 |
Long-term portion | 7,863,576 | 6,397,951 |
Inventories, Total | 8,359,513 | 8,824,941 |
Other trees [Member] | ||
Schedule of inventories | ||
Current portion | 103,658 | 872,674 |
Long-term portion | 3,448,054 | 2,673,454 |
Inventories, Total | 3,551,712 | 3,546,128 |
Total [Member] | ||
Schedule of inventories | ||
Current portion | 12,576,427 | 4,671,328 |
Long-term portion | 14,508,102 | 12,441,864 |
Inventories, Total | 27,084,529 | 17,113,192 |
Reserve for impairment - handicrafts [Member] | ||
Schedule of inventories | ||
Current portion | (5,895) | (5,779) |
Long-term portion | (90,962) | (107,603) |
Inventories, Total | $ (96,857) | $ (113,382) |
Taxes (Details)
Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Effects of income tax expense exemptions and tax reductions | ||||
Tax exemption effect | $ 318,207 | $ 317,419 | $ 1,009,084 | $ 1,185,109 |
Tax reduction due to loss carry-forward | 2,363 | |||
Loss not subject to income tax | $ (2,548) | $ (326) | $ (12,853) | $ (1,070) |
Basic net income per share effect | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.02) |
Diluted net income per share effect | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.02) |
Taxes (Details 1)
Taxes (Details 1) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
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% | 34.00% | 34.00% |
Foreign income not recognized in the U.S. | (34.00%) | (34.00%) | (34.00%) | (34.00%) |
PRC EIT rate | 25.00% | 25.00% | 25.00% | 25.00% |
PRC tax exemption and reduction | (25.00%) | (25.00%) | (25.00%) | (24.00%) |
Total provision for income taxes | 1.00% |
Taxes (Details 2)
Taxes (Details 2) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Summary of Deferred tax assets and liabilities | ||
U.S. tax benefit of net operating loss carry forward | $ 1,431,319 | $ 1,721,648 |
Valuation allowance | (1,431,319) | (1,721,648) |
Net deferred tax assets |
Taxes (Details Textual)
Taxes (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Taxes (Textual) | ||||
U.S. federal income tax rate | 34.00% | 34.00% | 34.00% | 34.00% |
PRC EIT rate | 25.00% | 25.00% | 25.00% | 25.00% |
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 | |||
Value added tax for agricultural products | 13.00% | |||
Value added tax for handicrafts | 17.00% |
Short-Term Borrowings and Not35
Short-Term Borrowings and Notes Payable (Details) | Nov. 26, 2015USD ($) | Nov. 24, 2015USD ($) | May 30, 2016USD ($) | May 27, 2016USD ($) | May 30, 2016CNY (¥) | May 27, 2016CNY (¥) | Nov. 26, 2015CNY (¥) | Nov. 24, 2015CNY (¥) | Apr. 23, 2015USD ($) | Apr. 23, 2015CNY (¥) |
Short-Term Borrowings and Notes Payable (Textual) | ||||||||||
Short-term debt principal amount | $ 610,000 | $ 1,560,000 | $ 1,507,000 | $ 594,000 | ¥ 10,000,000 | ¥ 3,940,000 | ¥ 3,940,000 | ¥ 10,000,000 | $ 1,630,000 | ¥ 10,000,000 |
Loan interest rate | 3.969% | 3.969% | 5.8725% | 5.8725% | ||||||
Maturity date | May 26, 2016 | Nov. 18, 2016 | May 30, 2017 | Nov. 27, 2016 | ||||||
Secured deposit | $ 300,000 | ¥ 1,970,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Activities [Abstract] | ||
Number of Stock Options, Beginning balance | 26,805,512 | 27,205,512 |
Number of Stock Options, Exercised | ||
Number of Stock Options, Forfeited | 400,000 | |
Number of Stock Options, Ending balance | 26,805,512 | 26,805,512 |
Number of Stock Options, Option exercisable | 24,945,512 | 22,985,512 |
Weighted Average Exercise Price, Beginning balance | $ 0.22 | $ 0.26 |
Weighted Average Exercise Price, Exercised | ||
Weighted Average Exercise Price, Forfeited | 0.23 | |
Weighted Average Exercise Price, Ending balance | 0.22 | 0.22 |
Weighted Average Exercise Price, Options exercisable | $ 0.22 | $ 0.22 |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Summary of shares of 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 | shares | 26,805,512 |
Stock Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year 3 months |
Stock Options Outstanding, Weighted Average Exercise Price | $ 0.22 |
Stock Options Exercisable, Number Exercisable | shares | 24,945,512 |
Stock Options Exercisable, Weighted Average Exercise Price | $ 0.22 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Stockholders Equity (Textual) | ||
Common stock exercise price | $ 0.15 | |
Stock option expense | $ 245,518 | $ 800,954 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings per Share [Abstract] | ||||
Net income available to common stockholders for basic and diluted net income per share of common stock | $ 1,080,538 | $ 933,514 | $ 3,437,145 | $ 3,897,560 |
Weighted average common stock outstanding - basic | 51,875,000 | 52,158,967 | 51,875,000 | 52,136,447 |
Effect of dilutive securities: | ||||
Non-vested restricted common stock | 30,744 | 136,895 | ||
Stock options issued to directors/officers/employees | 18,930 | 3,245,582 | ||
Weighted average common stock outstanding - diluted | 51,893,930 | 52,189,711 | 51,875,000 | 55,518,924 |
Net income per common share - basic | $ 0.02 | $ 0.02 | $ 0.07 | $ 0.07 |
Net income per common share - diluted | $ 0.02 | $ 0.02 | $ 0.07 | $ 0.07 |
Concentrations of Credit Risk40
Concentrations of Credit Risk and Major Customers (Details) - Customer [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
A (Yew Pharmaceutical, a related party) [Member] | ||||
Summary of major customer accounting for 10% or more of the Company's revenue | ||||
Concentration of credit risk, Percentage | 47.00% | 40.00% | 61.00% | 56.00% |
B [Member] | ||||
Summary of major customer accounting for 10% or more of the Company's revenue | ||||
Concentration of credit risk, Percentage | 20.00% | 38.00% | 25.00% | 28.00% |
Concentrations of Credit Risk41
Concentrations of Credit Risk and Major Customers (Details 1) - Supplier [Member] | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
A (Yew Pharmaceutical, a related party) [Member] | ||||||
Summary of major suppliers | ||||||
Concentration of credit risk, Percentage | 71.00% | 67.00% | 76.00% | 52.00% | ||
B [Member] | ||||||
Summary of major suppliers | ||||||
Concentration of credit risk, Percentage | 0.00% | [1] | 15.00% | 0.00% | [1] | 17.00% |
C [Member] | ||||||
Summary of major suppliers | ||||||
Concentration of credit risk, Percentage | 0.00% | [1] | 10.00% | 0.00% | [1] | 16.00% |
[1] | Less than 10%. |
Concentrations of Credit Risk42
Concentrations of Credit Risk and Major Customers (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounts receivable [Member] | Customer [Member] | ||||
Concentrations of Credit Risk and Major Customers (Textual) | ||||
Concentration of credit risk, Percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Accounts receivable [Member] | Heilongjiang Yew Pharmaceutical Co., Ltd. ("Yew Pharmaceutical") [Member] | Customer [Member] | ||||
Concentrations of Credit Risk and Major Customers (Textual) | ||||
Concentration of credit risk, Percentage | 99.00% | 94.00% | ||
Accounts receivable [Member] | Related Party [Member] | Customer [Member] | ||||
Concentrations of Credit Risk and Major Customers (Textual) | ||||
Concentration of credit risk, Percentage | 29.00% | 63.00% | ||
Accounts Payable [Member] | Heilongjiang Yew Pharmaceutical Co., Ltd. ("Yew Pharmaceutical") [Member] | Supplier [Member] | ||||
Concentrations of Credit Risk and Major Customers (Textual) | ||||
Concentration of credit risk, Percentage | 15.00% | 78.00% |
Related Party Transactions (Det
Related Party Transactions (Details) | 9 Months Ended |
Sep. 30, 2016 | |
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. |
Hongdoushan Bio-Pharmaceutical Co., Ltd. (''HBP'') [Member] | |
Company's transactions with the related parties | |
Ownership, description | 30% owned by Mr. Wang, 19% owned by Madame Qi and 51% owned by HEFS. |
Heilongjiang Pingshan Hongdoushan Development Co., Ltd. ("HDS Development") [Member] | |
Company's transactions with the related parties | |
Ownership, description | 80% owned by HEFS and 20% owned by Kairun |
Wuchang City Xinlin Forestry Co., Ltd. (Xinlin) [Member] | |
Company's transactions with the related parties | |
Ownership, description | 98% owned by ZTC and 2% owned by HEFS effective March 21, 2016. |
Changzhi Du [Member] | |
Company's transactions with the related parties | |
Ownership, description | Legal representative of Xinlin. |
Jinguo Wang [Member] | |
Company's transactions with the related parties | |
Ownership, description | Manager in charge of inventory and forest assets in HDS. |
Related Party Transactions (D44
Related Party Transactions (Details 1) - A'cheng Lease [Member] | 1 Months Ended |
Mar. 20, 2002CNY (¥) | |
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 |
Related Party Transactions (D45
Related Party Transactions (Details Textual) | Nov. 26, 2015 | Nov. 24, 2015 | May 15, 2015USD ($) | Jul. 01, 2012USD ($)m² | Jul. 01, 2012CNY (¥)m² | Jan. 09, 2010USD ($) | Jan. 09, 2010CNY (¥) | Jan. 01, 2010USD ($) | Jan. 01, 2010CNY (¥) | Mar. 25, 2005USD ($)a | Mar. 25, 2005CNY (¥)a | May 31, 2016USD ($) | May 30, 2016 | May 27, 2016 | Feb. 01, 2015 | Jan. 31, 2010USD ($) | Jan. 31, 2010CNY (¥) | Mar. 20, 2002 | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jan. 20, 2016USD ($) | Dec. 31, 2015USD ($) | Apr. 23, 2015 | Mar. 31, 2015USD ($) |
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Accounts receivable - related party | $ 3,546,845 | $ 6,489,495 | ||||||||||||||||||||||
Accounts payable | 44,087 | 41,319 | ||||||||||||||||||||||
Unpaid rent | 2,667 | 1,138 | $ 1,842 | |||||||||||||||||||||
Due to other shareholders | 82,491 | |||||||||||||||||||||||
Debt interest rate | 3.969% | 5.8725% | ||||||||||||||||||||||
Due date of borrowing debt | May 26, 2016 | Nov. 18, 2016 | May 30, 2017 | Nov. 27, 2016 | ||||||||||||||||||||
Repayments | 49,030 | $ 5,656 | ||||||||||||||||||||||
Lease Expiration Date | Jan. 31, 2018 | Mar. 19, 2025 | ||||||||||||||||||||||
Term of lease | 3 years | 23 years | ||||||||||||||||||||||
HDS [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Prepaid expenses - related party | $ 310,334 | |||||||||||||||||||||||
Agreement of Seedling Land with ZTC [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Agreement expiration date | Mar. 24, 2035 | Mar. 24, 2035 | ||||||||||||||||||||||
Agreement expiration period | 30 years | 30 years | ||||||||||||||||||||||
Leased area of land (Metric acre "Mu") | a | 361 | 361 | ||||||||||||||||||||||
Annual payments under operating lease | $ 25,000 | ¥ 162,450 | ||||||||||||||||||||||
Operating Leases, rent expense | 18,518 | 19,777 | ||||||||||||||||||||||
Prepaid expenses - related party | 85,252 | 106,370 | ||||||||||||||||||||||
Office Lease [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Agreement expiration date | Dec. 31, 2025 | Dec. 31, 2025 | ||||||||||||||||||||||
Agreement expiration period | 15 years | 15 years | ||||||||||||||||||||||
Annual payments under operating lease | $ 2,000 | ¥ 15,000 | ||||||||||||||||||||||
Operating Leases, rent expense | 1,710 | 1,826 | ||||||||||||||||||||||
JSJ Lease [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Agreement expiration date | Jun. 30, 2015 | Jun. 30, 2015 | ||||||||||||||||||||||
Agreement expiration period | 3 years | 3 years | ||||||||||||||||||||||
Leased Area | m² | 30 | 30 | ||||||||||||||||||||||
Annual payments under operating lease | $ 1,500 | ¥ 10,000 | ||||||||||||||||||||||
Operating Leases, rent expense | 1,140 | 1,217 | ||||||||||||||||||||||
Unpaid rent | 3,374 | 2,311 | ||||||||||||||||||||||
Cheng Lease [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Operating Leases, rent expense | 2,726 | 2,991 | ||||||||||||||||||||||
Unpaid rent | 4,686 | 1,926 | ||||||||||||||||||||||
Yew Pharmaceutical [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Amount payment to related party | 29,330,000 | |||||||||||||||||||||||
Yew Pharmaceutical [Member] | HYF [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Accounts payable | 3,660 | |||||||||||||||||||||||
Inventory balance remained | 43,872 | |||||||||||||||||||||||
Unsecured loan | 38,997 | 40,071 | ||||||||||||||||||||||
Yew Pharmaceutical [Member] | Cooperation and Development Agreement [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Agreement expiration date | Jan. 9, 2020 | Jan. 9, 2020 | ||||||||||||||||||||||
Agreement expiration period | 10 years | 10 years | ||||||||||||||||||||||
Cultivation price per metric ton | $ 158,000 | ¥ 1,000,000 | ||||||||||||||||||||||
Sales | 24,063,798 | $ 6,868,985 | ||||||||||||||||||||||
Kairun [Member] | Technology Agreement [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Agreement expiration period | 2 years | 2 years | ||||||||||||||||||||||
Payment made under agreement | $ 32,000 | ¥ 200,000 | ||||||||||||||||||||||
Madame Qi [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Subordinated promissory note | $ 648,000 | |||||||||||||||||||||||
Debt interest rate | 2.00% | |||||||||||||||||||||||
Due date of borrowing debt | Jan. 31, 2016 | |||||||||||||||||||||||
Total borrowings including the interest amount | 619,371 | |||||||||||||||||||||||
Zhiguo Wang [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Due to other shareholders | 104,845 | 40,970 | ||||||||||||||||||||||
HBP [Member] | HYF [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Accounts receivable - related party | 4,691 | |||||||||||||||||||||||
Amount payment to related party | 27,214 | |||||||||||||||||||||||
Unsecured loan | 53,127 | 27,097 | ||||||||||||||||||||||
Xinlin [Member] | HDS [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Amount payment to related party | $ 539,780 | |||||||||||||||||||||||
Accounts payable | ||||||||||||||||||||||||
Changzhi Du [Member] | HDS [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Amount payment to related party | 2,475,283 | |||||||||||||||||||||||
Accounts payable | 246,634 | |||||||||||||||||||||||
Jinguo Wang [Member] | HDS [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Amount payment to related party | $ 449,817 | |||||||||||||||||||||||
Accounts payable |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Summary of reportable business segments | |||||
Revenues | $ 14,667,099 | $ 4,997,201 | $ 39,347,578 | $ 12,306,578 | |
Cost of revenues | 13,248,067 | 3,578,043 | 34,885,324 | 7,036,132 | |
Depreciation and amortization | 54,263 | 181,726 | 219,059 | 324,150 | |
Net income (loss) | 1,080,538 | 933,514 | 3,437,145 | 3,897,560 | |
Segment reporting information, Additional information | |||||
Identifiable long-lived assets, net | 5,557,440 | 5,557,440 | $ 14,609,143 | ||
TCM raw materials [Member] | |||||
Summary of reportable business segments | |||||
Revenues | 6,873,988 | 2,845,904 | 24,063,798 | 7,712,224 | |
Cost of revenues | 5,618,504 | 1,586,981 | 19,820,917 | 3,582,502 | |
Depreciation and amortization | 643 | 83,739 | 269,009 | ||
Net income (loss) | 1,255,483,000 | 1,258,923 | 4,242,881 | 4,129,722 | |
Segment reporting information, Additional information | |||||
Identifiable long-lived assets, net | 4,579,660 | 4,579,660 | 13,602,178 | ||
Yew trees [Member] | |||||
Summary of reportable business segments | |||||
Revenues | 96,275 | 23,246 | 1,139,946 | ||
Cost of revenues | 18,460 | 19,458 | 326,996 | ||
Depreciation and amortization | 67,056 | 143,096 | 93,807 | 152,686 | |
Net income (loss) | (26,000) | 77,815 | 3,788 | 812,950 | |
Segment reporting information, Additional information | |||||
Identifiable long-lived assets, net | 757,679 | 757,679 | 816,926 | ||
Handicrafts [Member] | |||||
Summary of reportable business segments | |||||
Revenues | 1,087 | 15,417 | 97,560 | 110,131 | |
Cost of revenues | 14,486 | 8,000 | 91,145 | 23,118 | |
Depreciation and amortization | 6,501 | 6,926 | 19,766 | 21,109 | |
Net income (loss) | (13,399,000) | 7,417 | 6,415 | 87,013 | |
Segment reporting information, Additional information | |||||
Identifiable long-lived assets, net | 12,925 | 12,925 | 33,316 | ||
Wood Ear Mushroom [Member] | |||||
Summary of reportable business segments | |||||
Revenues | 134,962 | 1,439,634 | |||
Cost of revenues | 124,547 | 1,263,461 | |||
Depreciation and amortization | |||||
Net income (loss) | 10,415 | 176,173 | |||
Segment reporting information, Additional information | |||||
Identifiable long-lived assets, net | |||||
Others [Member] | |||||
Summary of reportable business segments | |||||
Revenues | 7,792,024 | 1,904,643 | 15,162,974 | 1,904,643 | |
Cost of revenues | 7,615,077 | 1,840,055 | 14,953,804 | 1,840,055 | |
Depreciation and amortization | (19,294) | 31,061 | 21,747 | 63,072 | |
Net income (loss) | (161,520,000) | $ (421,056) | (815,939) | $ (1,308,298) | |
Segment reporting information, Additional information | |||||
Identifiable long-lived assets, net | $ 229,439 | $ 229,439 | $ 156,723 |
Segment Information (Details Te
Segment Information (Details Textual) | 9 Months Ended |
Sep. 30, 2016Supplier | |
Segment Information (Textual) | |
Number of business segments | 5 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 9 Months Ended | |||
Feb. 01, 2015USD ($) | Nov. 25, 2010Supplier | Mar. 20, 2002 | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Commitments and contingencies (Textual) | |||||
Term of lease | 3 years | 23 years | |||
Lease expiration date | Jan. 31, 2018 | Mar. 19, 2025 | |||
Rent expense | $ 3,261 | ||||
Payments of lease each month of second year | $ 3,372 | ||||
Percentage of HDS's publicly-published wholesale prices | 90.00% | ||||
Number of yew seedlings purchase annually by Xinlin | Supplier | 10,000 | ||||
Sales under seedling agreement | |||||
Office Lease [Member] | |||||
Commitments and contingencies (Textual) | |||||
Rent expense | $ 30,352 | $ 26,090 |