Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 308,464 | ||
Entity Common Stock, Shares Outstanding | 51,875,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash | $ 278,991 | $ 681,608 |
Restricted cash | 303,511 | |
Accounts receivable | 14,467,852 | 3,857,968 |
Accounts receivable - related party | 6,941,931 | 6,489,495 |
Inventories, net | 10,296,792 | 4,665,549 |
Prepaid expenses - related party | 76,035 | 106,370 |
Prepaid expenses and other assets | 75,743 | 64,174 |
VAT recoverables | 1,655,954 | 699,258 |
Total Current Assets | 33,793,298 | 16,867,933 |
LONG-TERM ASSETS: | ||
Long-term inventories, net | 7,151,613 | 12,334,261 |
Property and equipment, net | 692,116 | 702,764 |
Land use rights and yew forest assets, net | 4,558,234 | 13,906,379 |
Total Long-term Assets | 12,401,963 | 26,943,404 |
Total Assets | 46,195,261 | 43,811,337 |
CURRENT LIABILITIES: | ||
Accounts payable | 2,700,148 | 11,345 |
Accounts payable - related party | 638,318 | 41,319 |
Accrued expenses and other payables | 379,294 | 124,686 |
Notes payable | 1,156,444 | 607,022 |
Taxes payable | 16,520 | 14,261 |
Due to related parties | 883,596 | 761,236 |
Short-term borrowings | 1,723,865 | 3,081,332 |
Total Current Liabilities | 7,498,185 | 4,641,201 |
NONCURRENT LIABILITIES: | ||
Deferred income | 120,973 | |
Total Noncurrent Liability | 120,973 | |
Total Noncurrent Liabilities | 7,619,158 | 4,641,201 |
SHAREHOLDERS' EQUITY: | ||
Common Stock ($0.001 par value; 140,000,000 shares authorized; 51,875,000 shares issued and outstanding at December 31, 2016 and 2015) | 51,875 | 51,875 |
Additional paid-in capital | 9,654,024 | 9,622,558 |
Retained earnings | 27,074,624 | 25,067,733 |
Statutory reserves | 3,762,288 | 3,762,288 |
Accumulated other comprehensive income (loss) | (1,966,708) | 665,682 |
Total Shareholders' Equity | 38,576,103 | 39,170,136 |
Total Liabilities and Shareholders' Equity | $ 46,195,261 | $ 43,811,337 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Balance Sheets [Abstract] | ||
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 (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
REVENUES: | ||
Revenues | $ 22,581,267 | $ 12,794,005 |
Revenues - related party | 28,766,815 | 16,779,803 |
Total Revenues | 51,348,082 | 29,573,808 |
COST OF REVENUES: | ||
Cost of revenues | 24,688,860 | 11,104,169 |
Cost of revenues - related party | 23,424,644 | 11,436,423 |
Total Cost of Revenues | 48,113,504 | 22,540,592 |
GROSS PROFIT | 3,234,578 | 7,033,216 |
OPERATING EXPENSES: | ||
Selling | 34,828 | 28,624 |
General and administrative | 1,078,392 | 1,864,654 |
Total Operating Expenses | 1,113,220 | 1,893,278 |
INCOME FROM OPERATIONS | 2,121,358 | 5,139,938 |
OTHER INCOME (EXPENSES): | ||
Interest expense | (140,844) | (121,170) |
Government grants | 282,252 | |
Other income | 44,386 | 56 |
Total Other Income (Expenses) | (96,458) | 161,138 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 2,024,900 | 5,301,076 |
PROVISION FOR INCOME TAXES | (18,009) | (16,488) |
NET INCOME | 2,006,891 | 5,284,588 |
COMPREHENSIVE INCOME: | ||
NET INCOME | 2,006,891 | 5,284,588 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||
Foreign currency translation adjustment | (2,632,390) | (2,080,703) |
COMPREHENSIVE INCOME (LOSS) | $ (625,499) | $ 3,203,885 |
NET INCOME PER COMMON SHARE: | ||
Basic | $ 0.04 | $ 0.10 |
Diluted | $ 0.04 | $ 0.10 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||
Basic | 51,875,000 | 52,069,863 |
Diluted | 51,875,000 | 52,113,807 |
Consolidated Statements of Chan
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 |
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 | |||||
Issuance of common stock in exchange for professional services | 65,856 | $ 375 | 65,481 | |||
Issuance of common stock in exchange for professional services, Shares | 375,000 | |||||
Stock-based compensation | 967,744 | 967,744 | ||||
Cancellation of shares issued in prior year for professional services | $ (625) | 625 | ||||
Cancellation of shares issued in prior year for professional services, shares | (625,000) | |||||
Transfer of property and equipment to entity under common control with proceeds over carrying amount | 31,052 | 31,052 | ||||
Adjustment to statutory reserve | (661,522) | 661,522 | ||||
Net income for the year | 5,284,588 | 5,284,588 | ||||
Foreign currency translation adjustment | (2,080,703) | (2,080,703) | ||||
Balance at Dec. 31, 2015 | 39,170,136 | $ 51,875 | 9,622,558 | 25,067,733 | 3,762,288 | 665,682 |
Balance, Shares at Dec. 31, 2015 | 51,875,000 | |||||
Stock-based compensation | 31,466 | 31,466 | ||||
Net income for the year | 2,006,891 | 2,006,891 | ||||
Foreign currency translation adjustment | (2,632,390) | (2,632,390) | ||||
Balance at Dec. 31, 2016 | $ 38,576,103 | $ 51,875 | $ 9,654,024 | $ 27,074,624 | $ 3,762,288 | $ (1,966,708) |
Balance, Shares at Dec. 31, 2016 | 51,875,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 2,006,891 | $ 5,284,588 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation | 112,282 | 143,486 |
Amortization of land use rights and yew forest assets | 8,819,008 | 7,599,023 |
Stock-based compensation | 31,466 | 967,744 |
Inventory write-down | 2,499,563 | |
Issuance of common stock for professional service | 65,856 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (11,345,374) | (3,112,659) |
Accounts receivable - related party | (915,034) | (6,438,017) |
Prepaid and other current assets | (14,438) | (49,815) |
Prepaid expenses - related party | 24,443 | (105,316) |
Inventories, net | (4,080,175) | (5,737,554) |
VAT recoverables | (1,047,212) | (729,984) |
Accounts payable | 2,807,954 | 11,844 |
Accounts payable - related party | 626,557 | 43,135 |
Accrued expenses and other payables | 362,600 | 46,807 |
Due to related parties | 9,635 | 478 |
Notes payable | 615,408 | 633,695 |
Deferred income | 126,392 | |
Taxes payable | 3,065 | 4,320 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 643,031 | (1,372,369) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from disposal of property and equipment | 3,594 | |
Change in restricted cash | 296,419 | (316,848) |
Loan made to related party | (35,384) | |
Repayment from related party | 35,384 | |
Purchase of property and equipment | (61,509) | (31,497) |
Purchase of land use rights and yew forest assets | (2,018,014) | |
NET CASH USED IN INVESTING ACTIVITIES | 234,910 | (2,362,765) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term borrowings | 1,809,189 | 3,216,727 |
Repayments of short-term borrowings | (3,022,055) | |
Advances and loans from related parties | 81 | 718,120 |
Repayments to related parties | (49,030) | |
Contribution from shareholders-transfer of property and equipment to entity under common control with proceeds over carrying amount | 31,052 | |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (1,261,815) | 3,965,899 |
EFFECT OF EXCHANGE RATE ON CASH | (18,743) | (37,097) |
NET INCREASE (DECREASE) IN CASH | (402,617) | 193,668 |
CASH - Beginning of the year | 681,608 | 487,940 |
CASH - End of the year | 278,991 | 681,608 |
Cash paid for: | ||
Interest | 145,452 | 75,196 |
Income taxes | 24,451 | |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Operating expense paid by related party | 88,088 | |
Property and equipment paid by related party | $ 82,491 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2016 | |
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 was 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 ● 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. 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, 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’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 had limited operation activities for the years ended December 31, 2016 and 2015. On June 8, 2016, YBP established a new subsidiary, MC Commerce Holding Inc. (“MC”), in the State of California to sell the Company’s yew products in American market. MC had no operation activities for the year ended December 31, 2016. 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 agricultural products (wood ear mushroom related) and export products (Yew candles, pine needle extracts and yew essential oil soap). The Company’s operating VIE and its subsidiary are 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, 2016 and 2015, 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 and VIE’s subsidiary was as follows: December 31, December 31, Assets Cash $ 249,868 $ 662,037 Restricted cash - 303,511 Accounts receivable 14,427,767 3,817,872 Accounts receivable - related party 6,941,931 6,489,495 Inventories (current and long-term), net 16,746,205 16,342,789 Prepaid expenses and other assets 35,827 54,093 Prepaid expenses - related party 76,035 106,370 Property and equipment, net 595,338 671,762 Land use rights and yew forest assets, net 4,558,233 13,906,379 VAT recoverables 1,655,954 699,258 Total assets of VIE and its subsidiary $ 45,287,158 $ 43,053,566 Liabilities Accrued expenses and other payables $ 375,262 $ 135,415 Accounts payable 2,654,067 - Accounts payable-related party 638,318 41,319 Taxes payable 11,789 11,901 Due to VIE holding companies 560,036 1,046,366 Short-term borrowings 1,723,865 3,081,332 Note payable 1,156,444 607,022 Deferred income 120,973 - Due to related parties 157,484 69,955 Total liabilities of VIE and its subsidiary $ 7,398,238 $ 4,993,310 Although the structure the Company has adopted is consistent with longstanding industry practice, and is commonly adopted by comparable companies in China, the PRC government may not agree that these arrangements comply with PRC licensing, registration or other regulatory requirements, with existing policies or with requirements or policies that may be adopted in the future. There are uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the Company’s contractual arrangements, which could limit the Company’s ability to enforce these contractual arrangements. If the Company or any of its variable interest entities are found to be in violation of any existing or future PRC laws, rules or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion to take action in dealing with such violations or failures, including levying fines, revoking business and other licenses of the Company’s variable interest entities, requiring the Company to discontinue or restrict its operations, restricting its right to collect revenue, requiring the Company to restructure its operations or taking other regulatory or enforcement actions against the Company. In addition, it is unclear what impact the PRC government actions would have on the Company and on its ability to consolidate the financial results of its variable interest entities in the consolidated financial statements, if the PRC government authorities were to find the Company’s legal structure and contractual arrangements to be in violation of PRC laws, rules and regulations. If the imposition of any of these government actions causes the Company to lose its right to direct the activities of HDS and through HDS’s equity interest in its subsidiary or the right to receive their economic benefits, the Company would no longer be able to consolidate the HDS and its subsidiary. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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 and its subsidiary, 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 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; the manufacture of yew tree wood handicrafts; and the sales of candle, pine needle extract, yew essential oil soap and wood ear mushroom Harbin Yew Food Co., Ltd (“HYF”) PRC November 4, 2014 RMB100,000 100%(1) Sales of wood ear mushroom drink MC Commerce Holding Inc.(“MC”) State of California, United State June 8, 2016 100%(2) Sales of yew products (1) Wholly-owned subsidiary of HDS (2) Wholly-owned subsidiary of YBP 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 allowance for slow-moving and 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, inventories, current portion, prepaid expenses and other assets, accounts payable, accrued expenses and other payables, note payable and taxes payable 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, 2016 and 2015. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, freemarket dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature 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, 2016 and 2015, the Company’s cash balances by geographic area were as follows: December 31, 2016 December 31, 2015 Country: United States $ 25,958 9.3 % $ 15,927 1.6 % China 253,033 90.7 % 969,192 98.4 % Total restricted cash and cash $ 278,991 100 % $ 985,119 100.0 % 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. As of December 31, 2016 and 2015, the Company has no cash equivalents. Restricted cash The restricted cash are recorded as an asset when the Company deposits cash in the bank as collateral for commercial acceptance notes, separately from cash and 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, 2016 and 2015, 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 candles, pine needle extracts, yew essential oil soap and wood ear mushroom products, which 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 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. 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, 2016 and 2015, the Company didn’t 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 handcraft products, sales of wood ear mushroom, sale of yew essential oil soap and sales of yew candles and pine needle extracts. 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 incurred $318 and $353 for the years ended December 31, 2016 and 2015, respectively. Shipping costs Shipping costs are expensed as incurred and included in selling expenses and amount to $126 and $100 for the years ended December 31, 2016 and 2015, 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, 2016 and 2015 were $860 and $13,554, respectively, and are included in general and administrative expenses. Employee benefits The Company’s major operations and most employees are 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” 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, 2016, 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, yew essential oil soap, yew candles and pine needle extracts 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. Government grants Government grants include cash subsidies as well as other subsidies received from the PRC government by the subsidiaries and VIEs of the Company. Government grants are recognized when received and all the conditions specified in the grant have been met. For the years ended December 31, 2016 and 2015, the Company recognized government grants in the amount of $0 and $282,252, respectively, representing governmental financial subsidies to support general planting and cultivation of yew trees. In October 2016, the Company received government grants of $120,973 for afforestation that is recorded initially as deferred income and to be recognized over the periods and in the proportions in which amortization expense on the trees is recognized. 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, 2016 and 2015 amounted to $(2,632,390) and $(2,080,703), respectively. All of the Company’s revenue transactions are transacted in the functional currency, except for the sales of yew essential oil soap, yew candles and pine needle extracts in US dollar, which is not the functional currency, RMB. 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: 2016 2015 Exchange rate on balance sheet dates: USD : RMB exchange rate 6.9437 6.4907 Average exchange rate for the year USD : RMB exchange rate 6.6460 6.2175 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 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, 2016 and 2015 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, 2016, the Company operated in five reportable business segments: (1) the yew tree segment - the cultivation and sale of yew seedlings and 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 others, mainly consisting of the transactions such as sale of wood ear mushroom, yew essential oil soap, yew candles and pine needle extracts. 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 17), 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, 2016 and 2015, the Company has not generated any revenues or activity from this collaborative agreement. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
Recent Accounting Pronouncements [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS In April 2016, the FASB issued ASU 2016-10, “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, “ Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-17, “Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control” In November 2016, the FASB issued ASU 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash” In December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” The effective date of these amendments are 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 (i.e., January 1, 2018, for a calendar year entity). 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, 2016 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 4 - INVENTORIES Inventories consisted of raw materials, work-in-progress, finished goods including handicrafts, yew essential oil soap, 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 December 31, 2016 and 2015, inventories consisted of the following: December 31, 2016 December 31, 2015 Current portion Long-term portion Total Current portion Long-term portion Total Raw materials $ 795,985 $ 2,484,301 $ 3,280,286 $ 39,341 $ 2,653,104 $ 2,692,445 Finished goods 5,245,771 556,875 5,802,646 1,332,323 717,355 2,049,678 Yew seedlings 3,487,879 5,930,887 9,418,766 2,426,990 6,397,951 8,824,941 Other trees 779,537 683,323 1,462,860 872,674 2,673,454 3,546,128 Total 10,309,172 9,655,386 19,964,558 4,671,328 12,441,864 17,113,192 Inventory write-down (12,380 ) (2,503,773 ) (2,516,153 ) (5,779 ) (107,603 ) (113,382 ) Inventories, net $ 10,296,792 $ 7,151,613 $ 17,448,405 $ 4,665,549 $ 12,334,261 $ 16,999,810 The Company recorded inventory write-down (recovery) in the amount of $2,499,563 and $(15,688) for the years ended December 31, 2016 and 2015, respectively. The write-down in the value of inventory was based on the management’s specific analysis of future production plan and sales forecasts and was included in the cost of revenues. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 5 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of December 31, 2016 and 2015: December 31, 2016 2015 Buildings and building improvements $ 631,736 $ 675,827 Machinery and equipment 475,750 498,973 Office equipment 50,595 49,975 Motor vehicles 618,465 518,309 1,776,546 1,743,084 Less: accumulated depreciation (1,084,430 ) (1,040,320 ) Total property and equipment, net $ 692,116 $ 702,764 For the years ended December 31, 2016 and 2015, depreciation expenses amounted to $112,282 and $143,486, respectively. |
Land Use Rights and Yew Forest
Land Use Rights and Yew Forest Assets | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015, amortization expense amounted to $8,819,008 and $7,599,023, respectively. As of December 31, 2016, 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 3/2004 3/2054 125 Parcel B Developing forest land 50 4/2004 4/2054 400 Parcel C Yew tree forests 30 3/2005 3/2035 361 Parcel D Yew tree forests and underlying land 50 1/2008 12/2058 290 Parcel E Yew tree forests and underlying land 45 3/2010 3/2055 15,865 Parcel F Undeveloped forest land 16 7/2012 3/2028 148 Parcel G Yew tree forests and underlying land 22 4/2006 1/2028 5 Parcel H Yew tree forests and underlying land 38 11/2013 11/2051 2,565 At December 31, 2016 and 2015, land use rights and yew forest assets consisted of the following: Useful Life December 31, 2016 December 31, 2015 Land use rights and yew forest assets 16-50 years $ 6,708,537 $ 15,933,585 Less: accumulated amortization (2,150,303 ) (2,027,206 ) Land use rights and yew forest assets, net $ 4,558,234 $ 13,906,379 During the year ended December 31, 2015, the Company purchased the yew seedlings in the amount of $2,018,014 and transplanted in Parcel H. During the years ended December 31, 2016 and 2015, the Company cut certain whole yew trees in Parcel H to process TCM raw materials. As the trees could no longer supply branches and leaves, their remaining carrying value in the amount of $8,185,557 and $7,109,557 was transferred to cost of revenues, respectively, and included in the amortization of $8,819,008 and $7,599,023 in the consolidated statements of cash flows for the year ended December 31, 2016 and 2015. Amortization of land use rights and yew forest assets attributable to future periods is as follows: Years ended December 31: Amount 2017 $ 204,247 2018 204,247 2019 204,247 2020 204,247 2021 204,247 2022 and thereafter 5,687,302 Total $ 6,708,537 |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Taxes [Abstract] | |
TAXES | NOTE 7 - TAXES (a) Federal Income Tax and Enterprise Income Taxes The Company, YBP, registered in the State of Nevada, and its subsidiary, MC, registered in the State of California, are 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 YBP and MC had no U.S. taxable income as of December 31, 2016 and 2015. The Company’s subsidiary, Yew Bio-Pharm (HK), is incorporated in Hong Kong and has no operating profit or tax liabilities during the years. Yew Bio-Pharm (HK) is subject to tax at 16.5% on the assessable profits arising in or derived from Hong Kong. The Company’s subsidiary, JSJ, and VIE and its subsidiary, HYF and HDS, 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 sales of handicrafts, yew candle, pine needle extracts and yew essential oil soap which are not within the scope of agricultural area. The provision for income taxes consists of the following: For the Years Ended 2016 2015 Current $ 18,009 $ 16,488 Deferred - - Total $ 18,009 $ 16,488 The combined effects of the income tax expense exemptions and tax reductions available to the Company for the years ended December 31, 2016 and 2015 are as follows: Years Ended December 31, 2016 2015 Tax exemption effect $ 629,937 $ 1,581,916 Tax reduction due to loss carry-forwards 8,200 2,226 Loss not subject to income tax (180,550 ) (448,322 ) Basic net income per share effect $ (0.01 ) $ (0.02 ) Diluted net income per share effect $ (0.01 ) $ (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, 2016 and 2015: Years Ended December 31, 2016 2015 U.S. federal income tax rate 34.00 % 34.00 % Foreign income not recognized in the U.S. (34.00 )% (34 )% PRC EIT rate 25.00 % 25.00 % PRC tax exemption (61.96 )% (30.92 )% Income tax difference under different tax jurisdictions 5.36 % 6.08 % Valuation allowance 32.48 % 0.19 % Other - (0.04 )% Total provision for income taxes 0.89 % 0.31 % 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, 2016 and 2015, are as follows: December 31, 2016 December 31, 2015 Tax benefit of net operating loss carry forward and inventory write-down $ 2,105,056 $ 1,925,808 Tax benefit of inventory write-down 624,891 - Valuation allowance (2,729,947 ) (1,925,808 ) Non-current deferred tax assets $ - $ - For U.S. income tax purposes, the Company has cumulative undistributed earnings of foreign subsidiary and VIE of approximately $33.0 million and $30.6 million as of December 31, 2016 and 2015, 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, 2016 and 2015. (b) Value Added Taxes (“VAT”) The applicable VAT tax rate is 13% for agricultural products and 17% for handicrafts, yew candles and pine needle extracts 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. The company’s sales of yew candles and pine needle extracts and export products are under VAT tax-exempt treaty and thus are eligible for return of VAT-IN. 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 | 12 Months Ended |
Dec. 31, 2016 | |
Short-Term Borrowings and Notes Payable [Abstract] | |
SHORT-TERM BORROWINGS AND NOTES PAYABLE | NOTE 8 - 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), payable on April 22, 2016. HDS paid off the loan in full on April 28, 2016. On May 30, 2016, HDS entered into a loan agreement with BOCOM, pursuant to which the Company obtained a bank loan in the amount of RMB10,000,000 (approximately $1,519,000), payable on May 30, 2017. The loan carries an interest rate of 5.873% 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, HDS executed a loan in the form of factoring agreement with Shanghai Pudong Development Bank (“SPD Bank”) Harbin Branch in the principal amount of RMB 10,000,000 (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 were 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, Heilongjiang Yew Pharmaceutical Co., Ltd. (“Yew Pharmaceutical”), a related party of the Company, Mr. Wang, Yichen Wang, the son of Mr. Wang and Yuqi Mao, the spouse of Yichen Wang provided guarantees to the loan. HDS paid off the loan in full on November 4, 2016. 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. The commercial acceptance notes are secured by a deposit of RMB1,970,000 (approximately $300,000) from the Company. 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, which was presented as restricted cash as of December 31, 2015. In November 2016, the Company paid off the commercial acceptance notes in full. As a consequence, the restricted cash was released in full then. On November 4, 2016, the company issued a commercial acceptance note to Yew Pharmaceutical with the principal amount of RMB8,030,000 (approximately $1,188,000) to pay partial of the account payable owed. The commercial acceptance note was due on November 4, 2017 with no interest, secured by Madam Qi’s personal assets and guaranteed by Madam Qi, Zhiguo Wang, Yicheng Wang, Yuqi Mao and Yew Pharmaceutical. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
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. The 875,000 shares were issued on July 22, 2014 and the fair value of these shares of $131,250 was fully expensed for the years ended December 31, 2014. The 375,000 shares was not issued up to date of filing of this report and the fair value of these shares of $65,856 was fully expensed for the year ended December 31, 2015 based on 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 would 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. On August 24, 2015, the Company signed a mutual rescission agreement with the consultant to rescind the Agreement. To execute the rescission, the Company shall cancel the 1,250,000 shares of the restricted common stock, and re-issue 625,000 shares of its Rule 144 restricted common stock as a settlement. Pursuant to the mutual rescission agreement, the Company removes the par value of forfeited share, or $625, for the year ended December 31, 2015. (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. On October 11, 2016, 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 their attorney who is also the Company’s employee, William B. Barnett (the “Optionees III”). Within the stock option agreement, the Optionees III was issued 200,000 shares of common stock of the Company at an exercise price of $0.25 per share. The option has a term of three years and expires on October 11, 2019 from October 11, 2016, vesting commencement date. The options vest over a two-year time period from October 11, 2016, and 50% and remaining 50% of the total shares granted shall vest and become exercisable 12 and 24 months 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, 2016 and 2015 was determined using the following management assumptions: Name of Optionee Expected Terms (In Years) Computed Volatility Risk free Interest Rate (%) Expected Dividends Fair Value 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 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 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 William B. Barnett 2.250 174 % 0.87 - 43,999 Stock option activities for the years ended December 31, 2016 and 2015 are summarized in the following table. Year Ended December 31, 2016 Year Ended December 31, 2015 Number of Stock Options Weighted Average Exercise Price Number of Stock Options Weighted Average Exercise Price Balance at beginning of year 26,805,512 $ 0.22 27,205,512 $ 0.22 Issued 200,000 0.25 - - Exercised - - - - Expired 960,000 0.23 Forfeited 720,000 0.23 400,000 0.23 Balance at end of year 25,325,512 $ 0.22 26,805,512 $ 0.22 Options exercisable at end of year 24,415,012 $ 0.22 24,735,512 $ 0.22 The following table summarizes the shares of the Company’s common stock issuable upon exercise of options outstanding at December 31, 2016: Stock Options Outstanding Stock Options Exercisable Range of Exercise Price Number Outstanding at December 31, 2016 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable at December 31, 2016 Weighted Average Exercise Price $ 0.20-0.25 25,325,512 1.03 $ 0.22 24,415,012 $ 0.22 The Company’s outstanding stock options and exercisable stock options had intrinsic value of $7,800, based upon the Company’s closing stock price of $0.22 as of December 31, 2016. Stock option expense recognized during the year ended December 31, 2016 amounted to $31,466. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015: For the Years Ended December 31, 2016 2015 Net income available to common stockholders for basic and diluted net income per share of common stock $ 2,006,891 $ 5,284,588 Weighted average common stock outstanding - basic 51,875,000 52,069,863 Effect of dilutive securities: Stock options issued to directors/officers/employees - 43,944 Weighted average common stock outstanding - diluted 51,875,000 52,113,807 Net income per common share - basic $ 0.04 $ 0.10 Net income per common share - diluted $ 0.04 $ 0.10 |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Major Customers | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015, customers accounting for 10% or more of the Company’s revenue were as follows: For the Years Ended Customer 2016 2015 A (Yew Pharmaceutical, a related party) 56.02 % 56.72 % B 29.24 % 36.23 % C 14.36 % - * Less than 10% The three largest customers accounted for 99.8% and 94.0% of the Company’s total outstanding accounts receivable at December 31, 2016 and 2015, respectively, of which Heilongjiang Yew Pharmaceutical Co., Ltd., (“Yew Pharmaceutical”), a related party, accounted for 32.4% and 63.0% of total outstanding accounts receivable, respectively. Suppliers For the years ended December 31, 2016 and 2015, suppliers accounting for 10% or more of the Company’s purchase were as follows: For the Years Ended December 31, Supplier 2016 2015 A (Yew Pharmaceutical, a related party) 75.6 % 47 % B * % 12 % Accounts payable to supplier C, supplier D, supplier E, Changzhi Du, a related party of the Company, and supplier F accounted for 24.6%, 24.1%, 17.7% and 15.8% of the Company’s total accounts payable at December 31, 2016. Accounts payable to Yew Pharmaceutical accounted for 78% of the Company’s total accounts payable at December 31, 2015. The Company did not have any accounts payable to Supplier B at December 31, 2015. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
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 Co., Ltd. (“ZTC”) 51% owned by Heilongjiang Hongdoushan Ecology Forest Co., Ltd., 34% owned by Zhiguo Wang, Chairman and Chief Executive Officer, 11% owned by Guifang Qi, the wife of Mr. Wang and director of the Company, and 4% 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 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 person of Xinlin Jinguo Wang Management of HDS Anyangquanfeng Bio Science Inc. 84.72% owned by Mr. Wang Heilongjiang Yew Medicine Research Institute affiliated clinics Zhiguo Wang is the Company’s legal person 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 years ended December 31, 2016 and 2015, total sales to Yew Pharmaceutical under the above agreement amounted to $28,766,815 and $16,774,905, respectively. At December 31, 2016 and 2015, the Company had $6,941,931 and $6,484,804 accounts receivable from Yew Pharmaceutical, respectively. For the year ended December 31, 2016, the total purchase of yew candles, essential yew oil soap and pine needle extracts from Yew Pharmaceutical amounted to $34,824,694, of which $21,996,839 was included in the cost of revenues of $22,189,297 to the third party, with $5,183,869 inventory balance remained as of December 31, 2016. For the year ended December 31, 2015, the total purchase of yew candles and pine needle extracts from Yew Pharmaceutical amounted to $9,699,008, of which $9,084,571 was included in the cost of revenues of $11,436,423 to the third party, with $614,437 inventory balance remained as of December 31, 2015. For the years ended December 31, 2016 and 2015, HYF purchased wood ear mushroom extracts from Yew Pharmaceutical in the amount of $5,235 and $41,319, respectively. HFY had accounts payable of $47,149 and $41,319 to Yew Pharmaceutical at December 31, 2016 and 2015, respectively. During the year ended December 31, 2015, HDS provided advances in the amount of RMB 220,000 (approximately $35,000) to Yew Pharmaceutical. The advances to Yew Pharmaceutical in 2015 was received in full with no interest charged as of December 31, 2015. At December 31, 2016 and December 31, 2015, HYF had $37,457 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 ZTC For the year ended December 31, 2015, the Company purchased yew seeding from ZTC in the amount of $584,640, which was included in the cost of revenues of $11,436,423 to the third party. No purchase was made from ZTC for the year ended December 31, 2016. As of December 31, 2016 and 2015, the Company had no accounts payable to ZTC. Transactions with HBP During the year ended December 31, 2015, HDS sold certain inventories to HBP in the amount of $4,691. As of December 31, 2016 and 2015, the Company had accounts receivable from HBP in the amount of $0 and $4,691, respectively. For the year ended December 31, 2016, HBP paid off operation expense on behalf of HYF in the amount of $34,320. As of December 31, 2016, HYF had due to HBP in the amount of $58,178, which was included in due to related parties in the accompanying consolidated balance sheets. As of 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. On September 25, 2015, HDS entered into a property and equipment transfer agreement with HBP, pursuant to which HDS transferred a used vehicle, with carrying amount of RMB 22,348, to HBP in exchange for RMB 220, 000 (approximately $35,000). Since the transfer occurred between entities under common control, HDS recorded the excess of the proceeds over carrying amount of $31,790 as an adjustment to shareholders’ equity (additional paid-in capital). Transactions with HDS Development On January 20, 2016, the Company prepaid $301,083 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 $541,679. As of December 31, 2016 and December 31, 2015, the Company had no accounts payable to Xinlin. Transactions with Changzhi Du For the year ended December 31, 2016, HDS purchased yew seedlings from Changzhi Du in the amount of $2,989,558. As of December 31, 2016, the Company had accounts payable of $591,169 to Changzhi Du. Transactions with Jinguo Wang On May 31, 2016, HDS purchased yew seedlings from Jinguo Wang in the amount of $541,679. As of December 31, 2016, 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 $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, 2016 and 2015, rent expense related to the ZTC Lease amounted to $24,443 and $26,128, respectively. At December 31, 2016 and 2015, prepaid rent to ZTC amounted to $76,035 and $106,370 which was included in prepaid expenses-related party in 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, 2016 and 2015, rent expense related to the Office Lease amounted to $2,257 and $2,413, respectively. As of December 31, 2016 and 2015, the unpaid rent was $221 and $1,138, respectively, which was included in due to related parties in 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 $1,600) 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 years ended December 31, 2016 and 2015, rent expense related to the JSJ Lease amounted to $1,505 and $1,608, respectively. As of December 31, 2016 and 2015, the unpaid rent was $3,600 and $2,311, respectively, which was included in due to related parties in the accompanying consolidated balance sheets. Due to Related Parties The Company’s officers, directors and other related parties, from time to time, provided advances to the Company for working capital purpose or paid expense on behalf of the Company. These advances and payables are usually short-term in nature, non-interest bearing, unsecured and payable on demand. Due to Zhiguo Wang and other shareholders, excluding the borrowings from Madame Qi as disclosed below and including the unpaid rents disclosed above, amounted to $284,626 and $113,236 at December 31, 2016 and 2015, respectively. 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 and 2017, the Company and Madame Qi entered into agreements to further extend the Due Date of the note to December 31, 2016 and 2017, respectively. During the year ended December 31, 2016, the Company made repayments of $49,030 to Madame Qi. As of December 31, 2016 and 2015, the total borrowings including the interest were $598,970 and $668,301, which was included in due to related parties in 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 December 31, 2016 and 2015, 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, 2016 | |
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, 2016 and 2015, the Company appropriated to the statutory surplus reserve in the amount of $0 and $661,522, respectively. The accumulated balance of the statutory reserve of the Company as of December 31, 2016 and 2015 was $3,762,288 and $3,762,288, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
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, 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 including the yew candles, pine needle extracts and yew essential oil soap segment, consisting of the sale of yew candles, pine needle extracts and yew essential oil soap. 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 yew candles, pine needle extracts and yew essential oil soap in the amount of $22,456,483 are conducted in the PRC. Information with respect to these reportable business segments for the years ended December 31, 2016 and 2015 was as follows: For the Years Ended, December 31, 2016 2015 Revenues: TCM raw materials $ 28,766,815 $ 16,470,213 Yew trees 22,859 1,134,412 Handicrafts 98,203 156,525 Wood ear mushroom - 2,648,180 Others 22,460,205 9,164,478 $ 51,348,082 $ 29,573,808 Cost of revenues: TCM raw materials $ 23,424,644 $ 10,611,353 Yew trees 19,135 329,539 Handicrafts 2,619,023 41,964 Wood ear mushroom - 2,473,165 Others 22,050,702 9,084,571 $ 48,113,504 $ 22,540,592 Depreciation and amortization: TCM raw materials $ 266,789 $ 376,769 Yew trees 49,838 68,931 Handicrafts 35,360 27,887 Wood ear mushroom - - Others 27,084 56,412 $ 379,071 $ 529,999 Net income (loss): TCM raw materials $ 4,987,851 $ 5,858,860 Yew trees 3,443 804,873 Handicrafts (2,522,031 ) 114,561 Wood ear mushroom - 175,015 Others (462,372 ) (1,668,721 ) $ 2,006,891 $ 5,284,588 December 31, 2016 TCM raw materials Yew trees Handicrafts Wood ear mushroom Others Total Identifiable long-lived assets, net $ 4,558,234 $ 436,948 $ 22,218 $ - $ 232,950 $ 5,250,350 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 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, 2016 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 - COMMITMENTS AND CONTINGENCIES Operating Lease The Company leased office space in the A’cheng district in Harbin (the “A’cheng Lease”) 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 years ended December 31, 2016 and 2015, rent expense related to the A’cheng Lease amounted $3,598 and $3,846, respectively. 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. The term of the lease is for 3 years and expires on January 31, 2018. See Note 13 for related party operating lease commitments. Future minimum rental payments required, including lease with related parties, are as follows: Years Ended December 31: 2017 $ 64,273 2018 6,494 2019 2,258 2020 124,530 2021 2,258 Thereafter 279,919 Total $ 479,731 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”), 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 years ended December 31, 2016 and 2015, the Company made sales of $0 and $102,935, respectively, under the Seedling Agreement. |
Joint Venture Agreement for Pla
Joint Venture Agreement for Planting of Yew Trees | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015, the Company has not generated any revenues or activity on this land. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 - SUBSEQUENT EVENTS On February 1, 2017, 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 an employee (the “Optionees IV”). Within the stock option agreement, the Optionees IV was issued 50,000 shares of common stock of the Company at an exercise price of $0.25 per share. The option has a term of four years and expires on February 1, 2021 from February 1, 2017, vesting commencement date. The options vest and become exercisable immediately from the grant date. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 and its subsidiary, 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 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; the manufacture of yew tree wood handicrafts; and the sales of candle, pine needle extract, yew essential oil soap and wood ear mushroom Harbin Yew Food Co., Ltd (“HYF”) PRC November 4, 2014 RMB100,000 100%(1) Sales of wood ear mushroom drink MC Commerce Holding Inc.(“MC”) State of California, United State June 8, 2016 100%(2) Sales of yew products (1) Wholly-owned subsidiary of HDS (2) Wholly-owned subsidiary of YBP |
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 allowance for slow-moving and 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, inventories, current portion, prepaid expenses and other assets, accounts payable, accrued expenses and other payables, note payable and taxes payable 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, 2016 and 2015. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, freemarket dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature |
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, 2016 and 2015, the Company’s cash balances by geographic area were as follows: December 31, 2016 December 31, 2015 Country: United States $ 25,958 9.3 % $ 15,927 1.6 % China 253,033 90.7 % 969,192 98.4 % Total restricted cash and cash $ 278,991 100 % $ 985,119 100.0 % |
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. As of December 31, 2016 and 2015, the Company has no cash equivalents. |
Restricted cash | Restricted cash The restricted cash are recorded as an asset when the Company deposits cash in the bank as collateral for commercial acceptance notes, separately from cash and 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, 2016 and 2015, 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 candles, pine needle extracts, yew essential oil soap and wood ear mushroom products, which 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. 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, 2016 and 2015, the Company didn’t 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 handcraft products, sales of wood ear mushroom, sale of yew essential oil soap and sales of yew candles and pine needle extracts. 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 incurred $318 and $353 for the years ended December 31, 2016 and 2015, respectively. |
Shipping costs | Shipping costs Shipping costs are expensed as incurred and included in selling expenses and amount to $126 and $100 for the years ended December 31, 2016 and 2015, 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, 2016 and 2015 were $860 and $13,554, respectively, and are included in general and administrative expenses. |
Employee benefits | Employee benefits The Company’s major operations and most employees are 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” 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, 2016, 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, yew essential oil soap, yew candles and pine needle extracts 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. |
Government grants | Government grants Government grants include cash subsidies as well as other subsidies received from the PRC government by the subsidiaries and VIEs of the Company. Government grants are recognized when received and all the conditions specified in the grant have been met. For the years ended December 31, 2016 and 2015, the Company recognized government grants in the amount of $0 and $282,252, respectively, representing governmental financial subsidies to support general planting and cultivation of yew trees. In October 2016, the Company received government grants of $120,973 for afforestation that is recorded initially as deferred income and to be recognized over the periods and in the proportions in which amortization expense on the trees is recognized. |
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, 2016 and 2015 amounted to $(2,632,390) and $(2,080,703), respectively. All of the Company’s revenue transactions are transacted in the functional currency, except for the sales of yew essential oil soap, yew candles and pine needle extracts in US dollar, which is not the functional currency, RMB. 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: 2016 2015 Exchange rate on balance sheet dates: USD : RMB exchange rate 6.9437 6.4907 Average exchange rate for the year USD : RMB exchange rate 6.6460 6.2175 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 |
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, 2016 and 2015 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, 2016, the Company operated in five reportable business segments: (1) the yew tree segment - the cultivation and sale of yew seedlings and 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 others, mainly consisting of the transactions such as sale of wood ear mushroom, yew essential oil soap, yew candles and pine needle extracts. |
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 17), 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, 2016 and 2015, the Company has not generated any revenues or activity from this collaborative agreement. |
Organization and Principal Ac25
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, Assets Cash $ 249,868 $ 662,037 Restricted cash - 303,511 Accounts receivable 14,427,767 3,817,872 Accounts receivable - related party 6,941,931 6,489,495 Inventories (current and long-term), net 16,746,205 16,342,789 Prepaid expenses and other assets 35,827 54,093 Prepaid expenses - related party 76,035 106,370 Property and equipment, net 595,338 671,762 Land use rights and yew forest assets, net 4,558,233 13,906,379 VAT recoverables 1,655,954 699,258 Total assets of VIE and its subsidiary $ 45,287,158 $ 43,053,566 Liabilities Accrued expenses and other payables $ 375,262 $ 135,415 Accounts payable 2,654,067 - Accounts payable-related party 638,318 41,319 Taxes payable 11,789 11,901 Due to VIE holding companies 560,036 1,046,366 Short-term borrowings 1,723,865 3,081,332 Note payable 1,156,444 607,022 Deferred income 120,973 - Due to related parties 157,484 69,955 Total liabilities of VIE and its subsidiary $ 7,398,238 $ 4,993,310 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [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; the manufacture of yew tree wood handicrafts; and the sales of candle, pine needle extract, yew essential oil soap and wood ear mushroom Harbin Yew Food Co., Ltd (“HYF”) PRC November 4, 2014 RMB100,000 100%(1) Sales of wood ear mushroom drink MC Commerce Holding Inc.(“MC”) State of California, United State June 8, 2016 100%(2) Sales of yew products (1) Wholly-owned subsidiary of HDS (2) Wholly-owned subsidiary of YBP |
Summary of cash balances by geographic area | December 31, 2016 December 31, 2015 Country: United States $ 25,958 9.3 % $ 15,927 1.6 % China 253,033 90.7 % 969,192 98.4 % Total restricted cash and cash $ 278,991 100 % $ 985,119 100.0 % |
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 | 2016 2015 Exchange rate on balance sheet dates: USD : RMB exchange rate 6.9437 6.4907 Average exchange rate for the year USD : RMB exchange rate 6.6460 6.2175 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventories [Abstract] | |
Schedule of inventories | December 31, 2016 December 31, 2015 Current portion Long-term portion Total Current portion Long-term portion Total Raw materials $ 795,985 $ 2,484,301 $ 3,280,286 $ 39,341 $ 2,653,104 $ 2,692,445 Finished goods 5,245,771 556,875 5,802,646 1,332,323 717,355 2,049,678 Yew seedlings 3,487,879 5,930,887 9,418,766 2,426,990 6,397,951 8,824,941 Other trees 779,537 683,323 1,462,860 872,674 2,673,454 3,546,128 Total 10,309,172 9,655,386 19,964,558 4,671,328 12,441,864 17,113,192 Inventory write-down (12,380 ) (2,503,773 ) (2,516,153 ) (5,779 ) (107,603 ) (113,382 ) Inventories, net $ 10,296,792 $ 7,151,613 $ 17,448,405 $ 4,665,549 $ 12,334,261 $ 16,999,810 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
Schedule of property and equipment | December 31, 2016 2015 Buildings and building improvements $ 631,736 $ 675,827 Machinery and equipment 475,750 498,973 Office equipment 50,595 49,975 Motor vehicles 618,465 518,309 1,776,546 1,743,084 Less: accumulated depreciation (1,084,430 ) (1,040,320 ) Total property and equipment, net $ 692,116 $ 702,764 |
Land Use Rights and Yew Fores29
Land Use Rights and Yew Forest Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Land Use Rights and Yew Forest Assets [Abstract] | |
Schedule of 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 3/2004 3/2054 125 Parcel B Developing forest land 50 4/2004 4/2054 400 Parcel C Yew tree forests 30 3/2005 3/2035 361 Parcel D Yew tree forests and underlying land 50 1/2008 12/2058 290 Parcel E Yew tree forests and underlying land 45 3/2010 3/2055 15,865 Parcel F Undeveloped forest land 16 7/2012 3/2028 148 Parcel G Yew tree forests and underlying land 22 4/2006 1/2028 5 Parcel H Yew tree forests and underlying land 38 11/2013 11/2051 2,565 |
Schedule of consisted land use rights and yew forest assets | Useful Life December 31, 2016 December 31, 2015 Land use rights and yew forest assets 16-50 years $ 6,708,537 $ 15,933,585 Less: accumulated amortization (2,150,303 ) (2,027,206 ) Land use rights and yew forest assets, net $ 4,558,234 $ 13,906,379 |
Schedule of amortization of land use rights and yew forest assets attributable to future periods | Years ended December 31: Amount 2017 $ 204,247 2018 204,247 2019 204,247 2020 204,247 2021 204,247 2022 and thereafter 5,687,302 Total $ 6,708,537 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Taxes [Abstract] | |
Summary of provision for income taxes | For the Years Ended 2016 2015 Current $ 18,009 $ 16,488 Deferred - - Total $ 18,009 $ 16,488 |
Effects of income tax expense exemptions and tax reductions | Years Ended December 31, 2016 2015 Tax exemption effect $ 629,937 $ 1,581,916 Tax reduction due to loss carry-forwards 8,200 2,226 Loss not subject to income tax (180,550 ) (448,322 ) Basic net income per share effect $ (0.01 ) $ (0.02 ) Diluted net income per share effect $ (0.01 ) $ (0.02 ) |
Summary of difference between U.S. statutory federal tax rate and Company's effective tax rate | Years Ended December 31, 2016 2015 U.S. federal income tax rate 34.00 % 34.00 % Foreign income not recognized in the U.S. (34.00 )% (34 )% PRC EIT rate 25.00 % 25.00 % PRC tax exemption (61.96 )% (30.92 )% Income tax difference under different tax jurisdictions 5.36 % 6.08 % Valuation allowance 32.48 % 0.19 % Other - (0.04 )% Total provision for income taxes 0.89 % 0.31 % |
Summary of net deferred tax assets | December 31, 2016 December 31, 2015 Tax benefit of net operating loss carry forward and inventory write-down $ 2,105,056 $ 1,925,808 Tax benefit of inventory write-down 624,891 - Valuation allowance (2,729,947 ) (1,925,808 ) Non-current deferred tax assets $ - $ - |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity [Abstract] | |
Summary of fair value of stock option | Name of Optionee Expected Terms (In Years) Computed Volatility Risk free Interest Rate (%) Expected Dividends Fair Value 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 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 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 William B. Barnett 2.250 174 % 0.87 - 43,999 |
Summary of stock option activities | Year Ended December 31, 2016 Year Ended December 31, 2015 Number of Stock Options Weighted Average Exercise Price Number of Stock Options Weighted Average Exercise Price Balance at beginning of year 26,805,512 $ 0.22 27,205,512 $ 0.22 Issued 200,000 0.25 - - Exercised - - - - Expired 960,000 0.23 Forfeited 720,000 0.23 400,000 0.23 Balance at end of year 25,325,512 $ 0.22 26,805,512 $ 0.22 Options exercisable at end of year 24,415,012 $ 0.22 24,735,512 $ 0.22 |
Summary of common stock issuable upon exercise of options outstanding | Stock Options Outstanding Stock Options Exercisable Range of Exercise Price Number Outstanding at December 31, 2016 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable at December 31, 2016 Weighted Average Exercise Price $ 0.20-0.25 25,325,512 1.03 $ 0.22 24,415,012 $ 0.22 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | For the Years Ended December 31, 2016 2015 Net income available to common stockholders for basic and diluted net income per share of common stock $ 2,006,891 $ 5,284,588 Weighted average common stock outstanding - basic 51,875,000 52,069,863 Effect of dilutive securities: Stock options issued to directors/officers/employees - 43,944 Weighted average common stock outstanding - diluted 51,875,000 52,113,807 Net income per common share - basic $ 0.04 $ 0.10 Net income per common share - diluted $ 0.04 $ 0.10 |
Concentrations of Credit Risk33
Concentrations of Credit Risk and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Customers [Member] | |
Concentration Risk [Line Items] | |
Summary of major customers and suppliers | For the Years Ended Customer 2016 2015 A (Yew Pharmaceutical, a related party) 56.02 % 56.72 % B 29.24 % 36.23 % C 14.36 % - |
Supplier [Member] | |
Concentration Risk [Line Items] | |
Summary of major customers and suppliers | For the Years Ended December 31, Supplier 2016 2015 A (Yew Pharmaceutical, a related party) 75.6 % 47 % B * % 12 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of company's transactions with the related parties | Company Ownership Heilongjiang Zishan Technology Co., Ltd. (“ZTC”) 51% owned by Heilongjiang Hongdoushan Ecology Forest Co., Ltd., 34% owned by Zhiguo Wang, Chairman and Chief Executive Officer, 11% owned by Guifang Qi, the wife of Mr. Wang and director of the Company, and 4% 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 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 person of Xinlin Jinguo Wang Management of HDS Anyangquanfeng Bio Science Inc. 84.72% owned by Mr. Wang Heilongjiang Yew Medicine Research Institute affiliated clinics Zhiguo Wang is the Company’s legal person |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Summary of reportable business segments | For the Years Ended, December 31, 2016 2015 Revenues: TCM raw materials $ 28,766,815 $ 16,470,213 Yew trees 22,859 1,134,412 Handicrafts 98,203 156,525 Wood ear mushroom - 2,648,180 Others 22,460,205 9,164,478 $ 51,348,082 $ 29,573,808 Cost of revenues: TCM raw materials $ 23,424,644 $ 10,611,353 Yew trees 19,135 329,539 Handicrafts 2,619,023 41,964 Wood ear mushroom - 2,473,165 Others 22,050,702 9,084,571 $ 48,113,504 $ 22,540,592 Depreciation and amortization: TCM raw materials $ 266,789 $ 376,769 Yew trees 49,838 68,931 Handicrafts 35,360 27,887 Wood ear mushroom - - Others 27,084 56,412 $ 379,071 $ 529,999 Net income (loss): TCM raw materials $ 4,987,851 $ 5,858,860 Yew trees 3,443 804,873 Handicrafts (2,522,031 ) 114,561 Wood ear mushroom - 175,015 Others (462,372 ) (1,668,721 ) $ 2,006,891 $ 5,284,588 |
Summary of identifiable long-lived assets, net | December 31, 2016 TCM raw materials Yew trees Handicrafts Wood ear mushroom Others Total Identifiable long-lived assets, net $ 4,558,234 $ 436,948 $ 22,218 $ - $ 232,950 $ 5,250,350 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 (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 |
Scheldule of future minimum rental payments | Years Ended December 31: 2017 $ 64,273 2018 6,494 2019 2,258 2020 124,530 2021 2,258 Thereafter 279,919 Total $ 479,731 |
Organization and Principal Ac37
Organization and Principal Activities (Details) | Dec. 31, 2016 |
Mr. Wang [Member] | |
HDS shareholders equity ownership percentage after second equity transfer agreement | |
HDS shareholders equity ownership percentage | 76.65% |
Madame Qi [Member] | |
HDS shareholders equity ownership percentage after second equity transfer agreement | |
HDS shareholders equity ownership percentage | 18.53% |
Mr. Han [Member] | |
HDS shareholders equity ownership percentage after second equity transfer agreement | |
HDS shareholders equity ownership percentage | 4.82% |
Organization and Principal Ac38
Organization and Principal Activities (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | $ 43,634,369 | $ 43,057,210 |
Total liabilities of VIE and its subsidiary | 7,398,238 | 4,993,310 |
Cash [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 249,868 | 662,037 |
Restricted cash [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 303,511 | |
Accounts receivable [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 14,427,767 | 3,817,872 |
Accounts receivable - related party[Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 6,941,931 | 6,489,495 |
Inventories (current and long-term), net [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 16,746,205 | 16,342,789 |
Prepaid expenses and other assets [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 35,827 | 54,093 |
Prepaid expenses - related party [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 76,035 | 106,370 |
Property and equipment, net [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 595,338 | 671,762 |
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 and its subsidiary | 4,558,233 | 13,906,379 |
Vat recoverables [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 1,655,954 | 699,258 |
Accrued expenses and other payables [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 375,262 | 135,415 |
Accounts payable [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 2,654,067 | |
Accounts payable-related party [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 638,318 | 41,319 |
Taxes payable [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 11,789 | 11,901 |
Due to VIE holding companies [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 560,036 | 1,046,366 |
Short-Term Borrowings [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 1,723,865 | 3,081,332 |
Note Payable [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 1,156,444 | 607,022 |
Deferred Income [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 120,973 | |
Due to related parties [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | $ 157,484 | $ 69,955 |
Organization and Principal Ac39
Organization and Principal Activities (Details Textual) - CNY (¥) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2010 | Feb. 23, 2010 | Dec. 31, 2016 | Feb. 16, 2011 | Oct. 28, 2010 | |
Organization and Principal Activities (Textual) | |||||
Ownership percentage returned to shareholders by JSJ on second transfer agreement | 3.22% | ||||
Harbin Yew Science and Technology Development Co., Ltd. ("HDS") [Member] | Zhiguo Wang [Member] | |||||
Organization and Principal Activities (Textual) | |||||
Shareholders ownership percentage | 62.81% | 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% | 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% | 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% | 3.22% | |||
Heilongjiang Hongdoushan Ecology Forest Co., Ltd. (''HEFS'') [Member] | |||||
Organization and Principal Activities (Textual) | |||||
Shareholders ownership percentage | 10.62% | 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 Ac40
Organization and Principal Activities (Details Textual 1) | 12 Months Ended |
Dec. 31, 2016CNY (¥) | |
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 description | 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 description | 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 |
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 | 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. |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details) - 12 months ended Dec. 31, 2016 | USD ($) | CNY (¥) | HKD | |
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; the manufacture of yew tree wood handicrafts; and the sales of candle, pine needle extract, yew essential oil soap 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 | ¥ 100,000 | |||
Effective Ownership, Percentage | [1] | 100.00% | ||
Principal Activities | Sales of wood ear mushroom drink | |||
MC Commerce Holding Inc.("MC") | ||||
Schedule of Company's subsidiaries and variable interest entities | ||||
Domicile and Date of Incorporation | State of California, United State June 8, 2016 | |||
Effective Ownership, Percentage | [2] | 100.00% | ||
Principal Activities | Sales of yew products | |||
[1] | Wholly-owned subsidiary of HDS | |||
[2] | Wholly-owned subsidiary of YBP |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of cash balances by geographic area | ||
Total restricted cash and cash | $ 278,991 | $ 985,119 |
Total restricted cash and cash (Percentage) | 100.00% | 100.00% |
United States [Member] | ||
Summary of cash balances by geographic area | ||
Total restricted cash and cash | $ 25,958 | $ 15,927 |
Total restricted cash and cash (Percentage) | 9.30% | 1.60% |
China [Member] | ||
Summary of cash balances by geographic area | ||
Total restricted cash and cash | $ 253,033 | $ 969,192 |
Total restricted cash and cash (Percentage) | 90.70% | 98.40% |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2016 | |
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 Accoun44
Summary of Significant Accounting Policies (Details 3) | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of exchange rates used to translate amounts in RMB into USD | ||
Exchange rate on balance sheet dates: USD : RMB exchange rate | 6.9437 | 6.4907 |
Average exchange rate for the year USD : RMB exchange rate | 6.6460 | 6.2175 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Details Textual) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2016USD ($) | Dec. 31, 2016USD ($)Supplier | Dec. 31, 2015USD ($) | |
Summary of Significant Accounting Policies (Textual) | |||
Advertising | $ 318 | $ 353 | |
Shipping costs | 126 | 100 | |
Research and development costs | 860 | 13,554 | |
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 (loss) | $ (2,632,390) | (2,080,703) | |
Inventory allowance and reserve | |||
Number of reportable business segments | Supplier | 5 | ||
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% | ||
Government grants received | $ 0 | 282,252 | |
Deferred income | $ 120,973 | ||
Government grants [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Deferred income | $ 120,973 | ||
Description of government grants | In October 2016, the Company received government grants of $120,973 for afforestation that is recorded initially as deferred income and to be recognized over the periods and in the proportions in which amortization expense on the trees is recognized. | ||
Minimum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Land use rights and yew forest assets | 16 years | ||
Maximum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Land use rights and yew forest assets | 50 years |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of inventories | ||
Current portion | $ 10,296,792 | $ 4,665,549 |
Long-term portion | 7,151,613 | 12,334,261 |
Total of Inventories, net | 17,448,405 | 16,999,810 |
Raw materials [Member] | ||
Schedule of inventories | ||
Current portion | 795,985 | 39,341 |
Long-term portion | 2,484,301 | 2,653,104 |
Total of Inventories, net | 3,280,286 | 2,692,445 |
Finished goods [Member] | ||
Schedule of inventories | ||
Current portion | 5,245,771 | 1,332,323 |
Long-term portion | 556,875 | 717,355 |
Total of Inventories, net | 5,802,646 | 2,049,678 |
Yew seedlings [Member] | ||
Schedule of inventories | ||
Current portion | 3,487,879 | 2,426,990 |
Long-term portion | 5,930,887 | 6,397,951 |
Total of Inventories, net | 9,418,766 | 8,824,941 |
Other trees [Member] | ||
Schedule of inventories | ||
Current portion | 779,537 | 872,674 |
Long-term portion | 683,323 | 2,673,454 |
Total of Inventories, net | 1,462,860 | 3,546,128 |
Total [Member] | ||
Schedule of inventories | ||
Current portion | 10,309,172 | 4,671,328 |
Long-term portion | 9,655,386 | 12,441,864 |
Total of Inventories, net | 19,964,558 | 17,113,192 |
Inventory write-down [Member] | ||
Schedule of inventories | ||
Current portion | (12,380) | (5,779) |
Long-term portion | (2,503,773) | (107,603) |
Total of Inventories, net | $ (2,516,153) | $ (113,382) |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Inventories (Textual) | ||
Inventories recovery | $ 15,688 | |
Inventory Write-down | $ 2,499,563 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of property and equipment | ||
Property and equipment, gross | $ 1,776,546 | $ 1,743,084 |
Less: accumulated depreciation | (1,084,430) | (1,040,320) |
Total property and equipment, net | 692,116 | 702,764 |
Buildings and building improvements [Member] | ||
Schedule of property and equipment | ||
Property and equipment, gross | 631,736 | 675,827 |
Machinery and equipment [Member] | ||
Schedule of property and equipment | ||
Property and equipment, gross | 475,750 | 498,973 |
Office equipment [Member] | ||
Schedule of property and equipment | ||
Property and equipment, gross | 50,595 | 49,975 |
Motor vehicles [Member] | ||
Schedule of property and equipment | ||
Property and equipment, gross | $ 618,465 | $ 518,309 |
Property and Equipment (Detai49
Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property and Equipment (Textual) | ||
Depreciation expenses | $ 112,282 | $ 143,486 |
Land Use Rights and Yew Fores50
Land Use Rights and Yew Forest Assets (Details) | 12 Months Ended |
Dec. 31, 2016a | |
Parcel A [Member] | Developing forest land [Member] | |
Components of land and yew forest use rights | |
Useful life | 50 years |
Acquisition date | 3/2004 |
Expiration date | 3/2054 |
Metric acres ("Mu") | 125 |
Parcel B [Member] | Developing forest land [Member] | |
Components of land and yew forest use rights | |
Useful life | 50 years |
Acquisition date | 4/2004 |
Expiration date | 4/2054 |
Metric acres ("Mu") | 400 |
Parcel C [Member] | Yew tree forests | |
Components of land and yew forest use rights | |
Useful life | 30 years |
Acquisition date | 3/2005 |
Expiration date | 3/2035 |
Metric acres ("Mu") | 361 |
Parcel D [Member] | Yew tree forests and underlying land [Member] | |
Components of land and yew forest use rights | |
Useful life | 50 years |
Acquisition date | 1/2008 |
Expiration date | 12/2058 |
Metric acres ("Mu") | 290 |
Parcel E [Member] | Yew tree forests and underlying land [Member] | |
Components of land and yew forest use rights | |
Useful life | 45 years |
Acquisition date | 3/2010 |
Expiration date | 3/2055 |
Metric acres ("Mu") | 15,865 |
Parcel F [Member] | Undeveloped forest land [Member] | |
Components of land and yew forest use rights | |
Useful life | 16 years |
Acquisition date | 7/2012 |
Expiration date | 3/2028 |
Metric acres ("Mu") | 148 |
Parcel G [Member] | Yew tree forests and underlying land [Member] | |
Components of land and yew forest use rights | |
Useful life | 22 years |
Acquisition date | 4/2006 |
Expiration date | 1/2028 |
Metric acres ("Mu") | 5 |
Parcel H [Member] | Yew tree forests and underlying land [Member] | |
Components of land and yew forest use rights | |
Useful life | 38 years |
Acquisition date | 11/2013 |
Expiration date | 11/2051 |
Metric acres ("Mu") | 2,565 |
Land Use Rights and Yew Fores51
Land Use Rights and Yew Forest Assets (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of land and yew forest use rights | ||
Land use rights and yew forest assets | $ 6,708,537 | $ 15,933,585 |
Less: accumulated amortization | (2,150,303) | (2,027,206) |
Land use rights and yew forest assets, net | $ 4,558,234 | $ 13,906,379 |
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 Fores52
Land Use Rights and Yew Forest Assets (Details 2) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Amortization of land use rights and yew forest assets attributable to future periods | ||
2,017 | $ 204,247 | |
2,018 | 204,247 | |
2,019 | 204,247 | |
2,020 | 204,247 | |
2,021 | 204,247 | |
2022 and thereafter | 5,687,302 | |
Total | $ 4,558,234 | $ 13,906,379 |
Land Use Rights and Yew Fores53
Land Use Rights and Yew Forest Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Land Use Rights and Yew Forest Assets (Textual) | ||
Amortization of land use rights and yew forest assets | $ 8,819,008 | $ 7,599,023 |
Purchase of land use rights and yew forest assets | (2,018,014) | |
Carrying value for land use rights and yew forest assets | 6,708,537 | 15,933,585 |
Parcel H [Member] | ||
Land Use Rights and Yew Forest Assets (Textual) | ||
Amortization of land use rights and yew forest assets | 8,819,008 | 7,599,023 |
Carrying value for land use rights and yew forest assets | $ 8,185,557 | $ 7,109,557 |
Taxes (Details )
Taxes (Details ) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Taxes [Abstract] | ||
Current | $ 18,009 | $ 16,488 |
Deferred | ||
Total | $ 18,009 | $ 16,488 |
Taxes (Details 1)
Taxes (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Effects of income tax expense exemptions and tax reductions | ||
Tax exemption effect | $ 629,937 | $ 1,581,916 |
Tax reduction due to loss carry-forwards | 8,200 | 2,226 |
Loss not subject to income tax | $ (180,550) | $ (448,322) |
Basic net income per share effect | $ (0.01) | $ (0.02) |
Diluted net income per share effect | $ (0.01) | $ (0.02) |
Taxes (Details 2)
Taxes (Details 2) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 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% |
Foreign income not recognized in the U.S. | (34.00%) | (34.00%) |
PRC EIT rate | 25.00% | 25.00% |
PRC tax exemption | (61.96%) | (30.92%) |
Income tax difference under different tax jurisdictions | 5.36% | 6.08% |
Valuation allowance | 32.48% | 0.19% |
Other | (0.04%) | |
Total provision for income taxes | 0.89% | 0.31% |
Taxes (Details 3)
Taxes (Details 3) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of Deferred tax assets and liabilities | ||
Tax benefit of net operating loss carry forward and inventory write-down | $ 2,105,056 | $ 1,925,808 |
Tax benefit of inventory write-down | 624,891 | |
Valuation allowance | (2,729,947) | (1,925,808) |
Non-current deferred tax assets |
Taxes (Details Textual)
Taxes (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Taxes (Textual) | ||
U.S. federal income tax rate | 34.00% | 34.00% |
PRC EIT rate | 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. | |
Net deferred tax assets | ||
Cumulative undistributed earnings of foreign subsidiary and VIE | $ 33 | $ 30.6 |
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 | |
Hong Kong [Member] | ||
Taxes (Textual) | ||
Tax rate percentage | 16.50% |
Short-Term Borrowings and Not59
Short-Term Borrowings and Notes Payable (Details) | Nov. 04, 2016USD ($) | Nov. 26, 2015USD ($) | Nov. 24, 2015USD ($) | Apr. 23, 2015USD ($) | May 30, 2016USD ($) | May 27, 2016USD ($) | Nov. 04, 2016CNY (¥) | May 30, 2016CNY (¥) | May 27, 2016CNY (¥) | Nov. 26, 2015CNY (¥) | Nov. 24, 2015CNY (¥) | Apr. 23, 2015CNY (¥) |
Short-Term Borrowings and Notes Payable (Textual) | ||||||||||||
Short-term debt principal amount | $ 1,188,000 | $ 610,000 | $ 1,560,000 | $ 1,630,000 | $ 1,519,000 | $ 594,000 | ¥ 8,030,000 | ¥ 10,000,000 | ¥ 3,940,000 | ¥ 3,940,000 | ¥ 10,000,000 | ¥ 10,000,000 |
Loan interest rate | 5.873% | 5.873% | ||||||||||
Maturity date | Nov. 4, 2017 | May 26, 2016 | Nov. 4, 2016 | Apr. 22, 2016 | Nov. 27, 2016 | |||||||
Description of loans | The loan carries an interest rate of 3.969% per annum and is payable, together with the principal, on November 18, 2016. | |||||||||||
Secured deposit | $ 300,000 | $ 300,000 | ¥ 1,970,000 | ¥ 1,970,000 | ||||||||
HDS paid off the loan date | Nov. 4, 2016 | Apr. 28, 2016 | May 30, 2017 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Hengjiang Pang [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 Terms (In Years) | 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 |
William B. Barnett [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Terms (In Years) | 2 years 3 months | 2 years 3 months |
Computed Volatility | 174.00% | 174.00% |
Risk free Interest Rate (%) | 0.87% | 0.87% |
Expected Dividends | ||
Fair Value | $ 43,999 | $ 43,999 |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of stock option activities | ||
Number of Stock Options, Beginning balance | 26,805,512 | 27,205,512 |
Number of Stock Options, Issued | 200,000 | |
Number of Stock Options, Exercised | ||
Number of Stock Options, Expired | 960,000 | |
Number of Stock Options, Forfeited | 720,000 | 400,000 |
Number of Stock Options, Ending balance | 25,325,512 | 26,805,512 |
Number of Stock Options, Options exercisable | 24,415,012 | 24,735,512 |
Weighted Average Exercise Price, Beginning balance | $ 0.22 | $ 0.22 |
Weighted Average Exercise Price, Issued | 0.25 | |
Weighted Average Exercise Price, Exercised | ||
Weighted Average Exercise Price, Expired | 0.23 | |
Weighted Average Exercise Price, Forfeited | 0.23 | 0.23 |
Weighted Average Exercise Price, Options exercisable | $ 0.22 | $ 0.22 |
Stockholders' Equity (Details 2
Stockholders' Equity (Details 2) | 12 Months Ended |
Dec. 31, 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 | $ 0.25 |
Stock Options Outstanding, Number Outstanding | shares | 25,325,512 |
Stock Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year 11 days |
Stock Options Exercisable, Weighted Average Exercise Price | $ 0.22 |
Stock Options Exercisable, Number Exercisable | shares | 24,415,012 |
Stock Options Exercisable, Weighted Average Exercise Price | $ 0.22 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | Oct. 11, 2016 | Aug. 24, 2015 | Nov. 18, 2014 | Jul. 22, 2014 | Jul. 18, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Stockholders Equity (Textual) | ||||||||
Common stock exercise price | $ 0.22 | |||||||
Stock option expense | $ 31,466 | $ 967,744 | ||||||
Exercisable stock options intrinsic value | $ 7,800 | |||||||
Consulting Agreement [Member] | ||||||||
Stockholders Equity (Textual) | ||||||||
Restricted common stock issued, value | $ 187,500 | |||||||
Restricted common stock issued | 1,250,000 | |||||||
Term of consulting agreement | 3 years | |||||||
Mutual Rescission Agreement [Member] | ||||||||
Stockholders Equity (Textual) | ||||||||
Restricted common stock issued | 1,250,000 | |||||||
Re-issuance of restricted common stock | 625,000 | |||||||
Cancellation of restricted common stock Value | $ 625 | |||||||
Service Provider Agreement [Member] | ||||||||
Stockholders Equity (Textual) | ||||||||
Term of service provider agreement | 3 years | |||||||
Restricted common stock issued | 1,250,000 | |||||||
Issuance of restricted common stock, shares | 875,000 | 375,000 | ||||||
Service provider agreement, description | 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. | |||||||
Expenses under service provider agreement | $ 65,856 | $ 131,250 | ||||||
Optionees I [Member] | ||||||||
Stockholders Equity (Textual) | ||||||||
Issuance of common stock | 200,000 | |||||||
Common stock exercise price | $ 0.20 | |||||||
Stock options vesting, description | 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. | |||||||
Optionees II [Member] | ||||||||
Stockholders Equity (Textual) | ||||||||
Common stock exercise price | $ 0.23 | |||||||
Stock options vesting, description | 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. | |||||||
Optionees III [Member] | ||||||||
Stockholders Equity (Textual) | ||||||||
Issuance of common stock | 200,000 | |||||||
Common stock exercise price | $ 0.25 | |||||||
Stock options vesting, description | The option has a term of three years and expires on October 11, 2019 from October 11, 2016, vesting commencement date. The options vest over a two-year time period from October 11, 2016, and 50% and remaining 50% of the total shares granted shall vest and become exercisable 12 and 24 months after the initial vesting commencement date. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income available to common stockholders for basic and diluted net income per share of common stock | $ 2,006,891 | $ 5,284,588 |
Weighted average common stock outstanding - basic | 51,875,000 | 52,069,863 |
Effect of dilutive securities: | ||
Stock options issued to directors/officers/employees | 43,944 | |
Weighted average common stock outstanding - diluted | 51,875,000 | 52,113,807 |
Net income per common share - basic | $ 0.04 | $ 0.10 |
Net income per common share - diluted | $ 0.04 | $ 0.10 |
Concentrations of Credit Risk65
Concentrations of Credit Risk and Major Customers (Details) - Customers [Member] | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of major customer accounting for 10% or more of the Company's revenue | ||
Concentration of credit risk, Percentage | 10.00% | 10.00% |
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 | 56.02% | 56.72% |
B [Member] | ||
Summary of major customer accounting for 10% or more of the Company's revenue | ||
Concentration of credit risk, Percentage | 29.24% | 36.23% |
C [Member] | ||
Summary of major customer accounting for 10% or more of the Company's revenue | ||
Concentration of credit risk, Percentage | 14.36% |
Concentrations of Credit Risk66
Concentrations of Credit Risk and Major Customers (Details 1) - Supplier [Member] | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Summary of major suppliers | |||
Concentration of credit risk, Percentage | 10.00% | 10.00% | |
A (Yew Pharmaceutical, a related party) [Member] | |||
Summary of major suppliers | |||
Concentration of credit risk, Percentage | 75.60% | 47.00% | |
B [Member] | |||
Summary of major suppliers | |||
Concentration of credit risk, Percentage | [1] | 12.00% | |
[1] | Less than 10% |
Concentrations of Credit Risk67
Concentrations of Credit Risk and Major Customers (Details Textual) - Customer | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Customers [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration of credit risk, Percentage | 10.00% | 10.00% |
Supplier [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration of credit risk, Percentage | 10.00% | 10.00% |
Accounts receivable [Member] | Customers [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration of credit risk, Percentage | 99.80% | 94.00% |
Number of largest customer | 3 | 3 |
Accounts receivable [Member] | Heilongjiang Yew Pharmaceutical Co Ltd [Member] | Customers [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration of credit risk, Percentage | 32.40% | 63.00% |
Number of largest customer | 3 | 3 |
Accounts Payable [Member] | Supplier C [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration of credit risk, Percentage | 24.60% | |
Accounts Payable [Member] | Supplier D [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration of credit risk, Percentage | 24.10% | |
Accounts Payable [Member] | Supplier E [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration of credit risk, Percentage | 17.70% | |
Accounts Payable [Member] | Supplier F [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration of credit risk, Percentage | 15.80% | |
Accounts Payable [Member] | Heilongjiang Yew Pharmaceutical Co Ltd [Member] | Supplier [Member] | ||
Concentrations of Credit Risk and Major Customers (Textual) | ||
Concentration of credit risk, Percentage | 78.00% |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended |
Dec. 31, 2016 | |
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 Co., Ltd. (''ZTC'') [Member] | |
Company's transactions with the related parties | |
Ownership, description | 51% owned by Heilongjiang Hongdoushan Ecology Forest Co., Ltd., 34% owned by Zhiguo Wang, Chairman and Chief Executive Officer, 11% owned by Guifang Qi, the wife of Mr. Wang and director of the Company, and 4% 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 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'') | |
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 person of Xinlin |
Jinguo Wang [Member] | |
Company's transactions with the related parties | |
Ownership, description | Management of HDS |
Anyangquanfeng Bio Science Inc. [Member] | |
Company's transactions with the related parties | |
Ownership, description | 84.72% owned by Mr. Wang |
Heilongjiang Yew Medicine Research Institute affiliated clinics [Member] | |
Company's transactions with the related parties | |
Ownership, description | Zhiguo Wang is the Company's legal person |
Related Party Transactions (D69
Related Party Transactions (Details Textual) | Nov. 04, 2016 | Nov. 26, 2015 | Nov. 24, 2015 | May 15, 2015USD ($) | Apr. 23, 2015 | Jul. 01, 2012USD ($)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 27, 2016 | Jan. 31, 2016USD ($) | Sep. 25, 2015USD ($) | Sep. 25, 2015CNY (¥) | Jan. 31, 2010USD ($) | Jan. 31, 2010CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | May 30, 2016 | Jan. 20, 2016USD ($) |
Related Party Transactions (Textual) | ||||||||||||||||||||||||||
Accounts receivable - related party | $ 6,941,931 | $ 6,489,495 | ||||||||||||||||||||||||
Proceeds from related party advances | 81 | 718,120 | ||||||||||||||||||||||||
Accounts payable | 638,318 | 41,319 | ||||||||||||||||||||||||
Cost of revenues | 48,113,504 | 22,540,592 | ||||||||||||||||||||||||
Additional paid-in capital | 9,654,024 | 9,622,558 | ||||||||||||||||||||||||
Unpaid rent | 221 | 1,138 | ||||||||||||||||||||||||
Debt interest rate | 5.873% | |||||||||||||||||||||||||
Due date of borrowing debt | Nov. 4, 2017 | May 26, 2016 | Nov. 4, 2016 | Apr. 22, 2016 | Nov. 27, 2016 | |||||||||||||||||||||
Repayment of debt | (3,022,055) | |||||||||||||||||||||||||
HDS [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||
Prepaid expenses - related party | $ 301,083 | |||||||||||||||||||||||||
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 | $ 26,000 | ¥ 162,450 | ||||||||||||||||||||||||
Operating Leases, rent expense | 24,443 | 26,128 | ||||||||||||||||||||||||
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 | 2,257 | 2,413 | ||||||||||||||||||||||||
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 | $ 1,600 | ¥ 10,000 | ||||||||||||||||||||||||
Operating Leases, rent expense | 1,505 | 1,608 | ||||||||||||||||||||||||
Prepaid rent | 3,600 | 2,311 | ||||||||||||||||||||||||
Xinlin [Member] | HDS [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||
Amount payment to related party | $ 541,679 | |||||||||||||||||||||||||
Accounts payable | ||||||||||||||||||||||||||
Yew Pharmaceutical [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||
Amount payment to related party | 34,824,694 | 9,699,008 | ||||||||||||||||||||||||
Cost of revenues | 22,189,297 | 11,436,423 | ||||||||||||||||||||||||
Inventory balance remained | 5,183,869 | 614,437 | ||||||||||||||||||||||||
Yew Pharmaceutical [Member] | Harbin Yew Food Co Ltd [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||
Accounts payable | 5,235 | 41,319 | ||||||||||||||||||||||||
Inventory balance remained | 47,149 | 41,319 | ||||||||||||||||||||||||
Unsecured loan | 37,457 | 40,071 | ||||||||||||||||||||||||
Yew Pharmaceutical [Member] | HDS [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||
Amount payment to related party | 35,000 | ¥ 0 | 35,000 | ¥ 220,000 | ||||||||||||||||||||||
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 | 28,766,815 | 16,774,905 | ||||||||||||||||||||||||
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 | 598,970 | 668,301 | ||||||||||||||||||||||||
Repayment of debt | 49,030 | |||||||||||||||||||||||||
ZTC [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||
Prepaid expenses - related party | 76,035 | 106,370 | ||||||||||||||||||||||||
Amount payment to related party | 584,640 | |||||||||||||||||||||||||
Cost of revenues | 11,436,423 | |||||||||||||||||||||||||
Zhiguo Wang [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||
Due to other shareholders | 284,626 | 113,236 | ||||||||||||||||||||||||
HBP [Member] | Harbin Yew Food Co Ltd [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||
Amount payment to related party | 34,320 | |||||||||||||||||||||||||
Unsecured loan | 58,178 | 27,097 | ||||||||||||||||||||||||
HBP [Member] | HDS [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||
Additional paid-in capital | $ 31,790 | |||||||||||||||||||||||||
Addition of amount with property and equipment | ¥ | ¥ 22,348 | |||||||||||||||||||||||||
Exchange amount | $ 35,000 | ¥ 220,000 | ||||||||||||||||||||||||
Inventories amount | 0 | 4,691 | ||||||||||||||||||||||||
Accounts receivable | 0 | 4,691 | ||||||||||||||||||||||||
Changzhi Du [Member] | HDS [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||
Amount payment to related party | 2,989,558 | |||||||||||||||||||||||||
Accounts payable | 591,169 | |||||||||||||||||||||||||
Jinguo Wang [Member] | HDS [Member] | ||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||
Amount payment to related party | $ 541,679 | |||||||||||||||||||||||||
Accounts payable |
Statutory Reserves (Details)
Statutory Reserves (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory Reserves (Textual) | ||
Statutory surplus reserve fund, Description | The statutory surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years' losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital. | |
Appropriation of statutory surplus reserve, Description | Appropriation to the statutory surplus reserve is required to be at least 10% of the after tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities' registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the board of directors. | |
Maximum percentage balance required of registered capital in reserve for business expansion | 50.00% | |
Appropriated to statutory surplus reserve | $ 0 | $ 661,522 |
Accumulated balance of the statutory reserve | $ 3,762,288 | $ 3,762,288 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of reportable business segments | ||
Total Revenues | $ 51,348,082 | $ 29,573,808 |
Cost of revenues: | 48,113,504 | 22,540,592 |
Depreciation and amortization | 379,071 | 529,999 |
Net income | 2,006,891 | 5,284,588 |
Segment reporting information, Additional information | ||
Identifiable long-lived assets, net | 5,250,350 | 14,609,143 |
TCM raw materials [Member] | ||
Summary of reportable business segments | ||
Total Revenues | 28,766,815 | 16,470,213 |
Cost of revenues: | 23,242,644 | 10,611,353 |
Depreciation and amortization | 266,789 | 376,769 |
Net income | 4,987,851 | 5,858,860 |
Segment reporting information, Additional information | ||
Identifiable long-lived assets, net | 4,558,234 | 13,602,178 |
Yew trees [Member] | ||
Summary of reportable business segments | ||
Total Revenues | 22,859 | 1,134,412 |
Cost of revenues: | 19,135 | 329,539 |
Depreciation and amortization | 49,838 | 68,931 |
Net income | 3,443 | 804,873 |
Segment reporting information, Additional information | ||
Identifiable long-lived assets, net | 436,948 | 816,926 |
Handicrafts [Member] | ||
Summary of reportable business segments | ||
Total Revenues | 98,203 | 156,525 |
Cost of revenues: | 2,619,023 | 41,964 |
Depreciation and amortization | 35,360 | 27,887 |
Net income | (2,522,031) | 114,561 |
Segment reporting information, Additional information | ||
Identifiable long-lived assets, net | 22,218 | 33,316 |
Wood ear mushroom [Member] | ||
Summary of reportable business segments | ||
Total Revenues | 2,648,180 | |
Cost of revenues: | 2,473,165 | |
Depreciation and amortization | ||
Net income | 175,015 | |
Segment reporting information, Additional information | ||
Identifiable long-lived assets, net | ||
Others [Member] | ||
Summary of reportable business segments | ||
Total Revenues | 22,460,205 | 9,164,478 |
Cost of revenues: | 22,050,702 | 9,084,571 |
Depreciation and amortization | 27,084 | 56,412 |
Net income | (462,372) | (1,668,721) |
Segment reporting information, Additional information | ||
Identifiable long-lived assets, net | $ 232,950 | $ 156,723 |
Segment Information (Details Te
Segment Information (Details Textual) | 12 Months Ended | |
Dec. 31, 2016USD ($)Supplier | Dec. 31, 2015Supplier | |
Segment Information (Textual) | ||
Number of business segments | Supplier | 5 | 5 |
People's Republic of China (PRC) | ||
Segment Information (Textual) | ||
Company's operations except the sales of yew candles, pine needle extracts and yew essential oil soap | $ | $ 22,456,483 |
Commitments and Contingencies73
Commitments and Contingencies (Details) - A'cheng Lease [Member] | 12 Months Ended |
Dec. 31, 2016USD ($) | |
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 Contingencies74
Commitments and Contingencies (Details 1) | Dec. 31, 2016USD ($) |
Future minimum rental payments required under the related party operating leases | |
2,017 | $ 64,273 |
2,018 | 6,494 |
2,019 | 2,258 |
2,020 | 124,530 |
2,021 | 2,258 |
Thereafter | 279,919 |
Total | $ 479,731 |
Commitments and Contingencies75
Commitments and Contingencies (Details Textual) | 1 Months Ended | 12 Months Ended | |||
Feb. 01, 2015USD ($) | Nov. 25, 2010Supplier | Mar. 21, 2002 | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Commitments and Contingencies (Textual) | |||||
Term of lease | 3 years | 23 years | |||
Lease expiration date | Jan. 31, 2018 | Mar. 19, 2025 | |||
Rent expense related to the A'cheng Lease | $ 3,261 | $ 3,598 | $ 3,846 | ||
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 | $ 0 | $ 102,935 |
Joint Venture Agreement for P76
Joint Venture Agreement for Planting of Yew Trees (Details) - Joint Venture Agreement [Member] | 1 Months Ended |
Mar. 21, 2004a | |
Joint Venture Agreement for Planting of Yew Trees (Textual) | |
Yew trees land period description | The Joint Venture Agreement, the Company is required to plant yew trees on this land from 2004 to 2034. |
Profits and other agriculture distributed description | Any profits from the planting of yew trees and other agriculture shall be distributed 80% to the Company and 20% to the Forest Bureau. |
Forest Bureau [Member] | |
Joint Venture Agreement for Planting of Yew Trees (Textual) | |
Forest land area | 1,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Optionees IV [Member] | Feb. 01, 2017$ / sharesshares |
Subsequent Events (Textual) | |
Stock option agreement shares, issued | shares | 50,000 |
Stock option agreement shares, exercise price per share | $ / shares | $ 0.25 |
Stock option agreement shares, expiration date | Feb. 1, 2021 |