Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 13, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Yew Bio-Pharm Group, Inc. | |
Entity Central Index Key | 1,548,240 | |
Trading Symbol | YEWB | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 51,875,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash | $ 1,339,673 | $ 278,991 |
Accounts receivable | 11,743,961 | 14,467,852 |
Accounts receivable - related parties | 18,499,561 | 6,941,931 |
Inventories, net | 9,362,578 | 10,296,792 |
Prepaid expenses - related party | 61,030 | 76,035 |
Prepaid expenses and other assets | 92,442 | 75,743 |
VAT recoverables | 622,134 | 1,655,954 |
Total Current Assets | 41,721,379 | 33,793,298 |
LONG-TERM ASSETS: | ||
Long-term inventories, net | 7,730,893 | 7,151,613 |
Property and equipment, net | 583,542 | 692,116 |
Land use rights and yew forest assets, net | 9,823,740 | 4,558,234 |
Total Long-term Assets | 18,138,175 | 12,401,963 |
Total Assets | 59,859,554 | 46,195,261 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,076,485 | 2,700,148 |
Accounts payable - related parties | 49,198 | 638,318 |
Accrued expenses and other payables | 153,408 | 379,294 |
Notes payable | 1,206,702 | 1,156,444 |
Taxes payable | 4,886 | 16,520 |
Due to related parties | 678,410 | 883,596 |
Short-term borrowings | 4,758,689 | 1,723,865 |
Total Current Liabilities | 7,927,778 | 7,498,185 |
NOCURRENT LIABILITY: | ||
Deferred income | 351,642 | 120,973 |
Total Noncurrent Liabilities | 351,642 | 120,973 |
Total Liabilities | 8,279,420 | 7,619,158 |
SHAREHOLDERS' EQUITY: | ||
Common Stock ($0.001 par value; 140,000,000 shares authorized; 51,875,000 shares issued and outstanding at September 30, 2017 and December 31, 2016) | 51,875 | 51,875 |
Additional paid-in capital | 9,748,201 | 9,654,024 |
Retained earnings | 38,114,448 | 27,074,624 |
Statutory reserves | 3,762,288 | 3,762,288 |
Accumulated other comprehensive loss | (96,678) | (1,966,708) |
Total Shareholders' Equity | 51,580,134 | 38,576,103 |
Total Liabilities and Shareholders' Equity | $ 59,859,554 | $ 46,195,261 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
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 (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUES: | ||||
Revenues | $ 7,272,296 | $ 7,793,111 | $ 16,681,089 | $ 15,283,780 |
Revenues - related parties | 4,292,619 | 6,873,988 | 18,363,666 | 24,063,798 |
Total Revenues | 11,564,915 | 14,667,099 | 35,044,755 | 39,347,578 |
COST OF REVENUES: | ||||
Cost of revenues | 7,371,663 | 7,650,346 | 16,731,726 | 15,085,190 |
Cost of revenues - related parties | 3,443,336 | 5,597,721 | 6,453,470 | 19,800,134 |
Total Cost of Revenues | 10,814,999 | 13,248,067 | 23,185,196 | 34,885,324 |
GROSS PROFIT | 749,916 | 1,419,032 | 11,859,559 | 4,462,254 |
OPERATING EXPENSES: | ||||
Selling | 64,347 | 5,667 | 64,678 | 17,754 |
General and administrative | 196,569 | 293,850 | 794,556 | 938,920 |
Total Operating Expenses | 260,916 | 299,517 | 859,234 | 956,674 |
INCOME FROM OPERATIONS | 489,000 | 1,119,515 | 11,000,325 | 3,505,580 |
OTHER INCOME (EXPENSES): | ||||
Interest expense | (52,105) | (39,367) | (139,450) | (108,654) |
Other income | 178,122 | 390 | 179,559 | 40,219 |
Total Other Income (Expenses) | 126,017 | (38,977) | 40,109 | (68,435) |
INCOME BEFORE INCOME TAXES | 615,017 | 1,080,538 | 11,040,434 | 3,437,145 |
PROVISION FOR INCOME TAXES | (610) | (610) | ||
NET INCOME | 614,407 | 1,080,538 | 11,039,824 | 3,437,145 |
COMPREHENSIVE INCOME: | ||||
NET INCOME | 614,407 | 1,080,538 | 11,039,824 | 3,437,145 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Foreign currency translation adjustment | 790,549 | (198,125) | 1,870,030 | (1,096,794) |
COMPREHENSIVE INCOME | $ 1,404,956 | $ 882,413 | $ 12,909,854 | $ 2,340,351 |
NET INCOME PER COMMON SHARE: | ||||
Basic | $ 0.01 | $ 0.02 | $ 0.21 | $ 0.07 |
Diluted | $ 0.01 | $ 0.02 | $ 0.20 | $ 0.07 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic | 51,875,000 | 51,875,000 | 51,875,000 | 51,875,000 |
Diluted | 54,561,533 | 51,893,930 | 53,965,264 | 51,875,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 11,039,824 | $ 3,437,145 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation | 50,944 | 89,410 |
Stock-based compensation | 94,177 | 245,518 |
Amortization of land use rights and yew forest assets | 137,903 | 8,784,562 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,276,466 | (4,873,750) |
Accounts receivable - related parties | (11,005,869) | 2,806,724 |
Prepaid expenses and other current assets | (14,847) | (7,999) |
Prepaid expenses - related party | 17,902 | 18,519 |
Inventories, net | (3,278,467) | (10,567,924) |
VAT recoverables | 1,081,219 | (1,899,393) |
Accounts payable | (1,698,340) | 1,660,178 |
Accounts payable - related parties | (603,156) | 253,723 |
Accrued expenses and other payables | (202,645) | 408,002 |
Due to related parties | (57,632) | 7,471 |
Deferred income | 220,403 | |
Taxes payable | (11,873) | (199) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (953,991) | 361,987 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (7,742) | |
Purchase of land use rights and yew forest assets | (793,662) | |
NET CASH USED IN INVESTING ACTIVITIES | (793,662) | (7,742) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term borrowings | 7,881,105 | 1,530,105 |
Repayments of short-term borrowings | (4,997,764) | (1,530,105) |
Proceeds from related party | 181 | |
Repayments to related party | (105,875) | (49,030) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 2,777,466 | (48,849) |
EFFECT OF EXCHANGE RATE ON CASH | 30,869 | (22,303) |
NET INCREASE IN CASH | 1,060,682 | 283,093 |
CASH - Beginning of the period | 278,991 | 681,608 |
CASH - End of the period | 1,339,673 | 964,701 |
Cash paid for: | ||
Interest | 140,555 | 64,383 |
Income taxes | 18,197 | 6,460 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Operating expenses paid by related party | 34,341 | 27,214 |
Reclassification of inventories to land use rights and yew forest assets | $ 4,300,033 |
Organization and Principal Acti
Organization and Principal Activities | 9 Months Ended |
Sep. 30, 2017 | |
Organization and Principal Activities [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements of Yew Bio-Pharm Group, Inc. (individually “YBP” and collectively with its subsidiaries and operating variable interest entity, the “Company”). The accompanying unaudited consolidated financial statements should be read in conjunction with the summary of significant accounting policies and notes to consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2016. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of September 30, 2017, and the results of operations and cash flows for the nine-month periods ended September 30, 2017 and 2016, have been made. The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company continually evaluates its estimates, including those related to bad debts, inventories, income taxes, and the valuation of equity transactions. The Company bases its estimates on historical experience and on various other assumptions that it believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Certain amounts from prior period financial statements have been reclassified to conform to the current period presentation. This reclassification has resulted in no changes to the Company’s financial position or results of operations presented. Details of the Company’s subsidiaries, variable interest entity (“VIE”) and VIE’s subsidiary are as follows: Name Domicile and Date of Incorporation Registered Capital Effective Ownership Principal Activities Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”) PRC October 29, 2009 US$100,000 100% Holding company Yew Bio-Pharm Holdings Limited (“Yew Bio-Pharm (HK)”) Hong Kong November 29, 2010 HK$10,000 100% Holding company of JSJ Harbin Yew Science and Technology Development Co., Ltd. (“HDS”) PRC August 22, 1996 RMB45,000,000 Contractual arrangements Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings; the manufacture of yew tree wood handicrafts; and the sales of candle, pine needle extract, yew essential oil soap, complex taxus cuspidate extract, and northeast yew extract Harbin Yew Food Co., Ltd (“HYF”) PRC November 4, 2014 RMB100,000(1) 100%(1) Sales of wood ear mushroom drink MC Commerce Holding Inc.(“MC”) State of California, United State 100%(2) Sales of yew products (1) Wholly-owned subsidiary of HDS (2) 51% owned by YBP and 49% owned by HDS |
Principles of Consolidation
Principles of Consolidation | 9 Months Ended |
Sep. 30, 2017 | |
Principles of Consolidation [Abstract] | |
PRINCIPLES OF CONSOLIDATION | NOTE 2 - PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the financial statements of YBP, its subsidiaries and operating VIE and its subsidiary, in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated on consolidation. Pursuant to a restructuring plan intended to ensure compliance with applicable PRC laws and regulations (the “Second Restructure”), on November 5, 2010, JSJ entered into a series of contractual arrangements (the “Contractual Arrangements”) with HDS and/or Zhiguo Wang, his wife Guifang Qi and Xingming Han (collectively with Mr. Wang and Madame Qi, the “HDS Shareholders”), as described below: ● Exclusive Business Cooperation Agreement ● Exclusive Option Agreement . ● Equity Interest Pledge Agreement ● Power of Attorney . To the extent that the Contractual Arrangements are enforceable under PRC law, as from time to time interpreted by relevant state agencies, they constitute the valid and binding obligations of each of the parties to each such agreement. The Company believes that HDS is considered a VIE under ASC 810 “Consolidation”, because the equity investors in HDS no longer have the characteristics of a controlling financial interest, and the Company, through JSJ, is the primary beneficiary of HDS and controls HDS’ operations. Accordingly, HDS has been consolidated as a deemed subsidiary into YBP as a reporting company under ASC 810. YBP has no direct or indirect legal or equity ownership interest in HDS. However, through the Contractual Arrangements, the stockholders of HDS have assigned all their rights as stockholders, including voting rights and disposition rights of their equity interests in HDS to JSJ, our indirect, wholly-owned subsidiary. YBP is deemed to be the primary beneficiary of HDS and the financial statements of HDS are consolidated in the Company’s consolidated financial statements. At September 30, 2017 and December 31, 2016, 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 are as follows: September 30, 2017 December 31, 2016 Assets Cash $ 1,254,677 $ 249,868 Accounts receivable 11,703,888 14,427,767 Accounts receivable - related parties 18,499,561 6,941,931 Inventories (current and long-term), net 14,721,675 16,746,205 Prepaid expenses and other assets 50,637 35,827 Prepaid expenses - related party 61,030 76,035 Property and equipment, net 575,630 595,338 Land use rights and yew forest assets, net 9,780,331 4,558,233 VAT recoverables 622,134 1,655,954 Total assets of VIE and its subsidiary $ 57,269,563 $ 45,287,158 Liabilities Accrued expenses and other payables $ 150,703 $ 375,262 Accounts payable 938,912 2,654,067 Accounts payable - related parties 49,198 638,318 Taxes payable - 11,789 Due to VIE holding companies 244,893 560,036 Short-term borrowings 4,758,689 1,723,865 Note payable 1,206,702 1,156,444 Deferred income 351,642 120,973 Due to related parties 139,380 157,484 Total liabilities of VIE and its subsidiary $ 7,840,119 $ 7,398,238 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 3 - INVENTORIES Inventories consisted of raw materials, work-in-progress, finished goods including handicrafts, yew essential oil soap, complex taxus cuspidate extract, northeast yew extract, yew candles, and pine needle extract, yew seedlings, and other trees, which consist of larix, spruce and poplar trees. The Company classifies its inventories based on its historical and anticipated levels of sales; any inventory in excess of its normal operating cycle of one year is classified as long-term on its consolidated balance sheets. As of September 30, 2017 and December 31, 2016, inventories consisted of the following: September 30, 2017 December 31, 2016 Current portion Long-term portion Total Current portion Long-term portion Total Raw materials $ 41,560 $ 2,592,266 $ 2,633,826 $ 795,985 $ 2,484,301 $ 3,280,286 Finished goods 4,519,953 639,326 5,159,279 5,245,771 556,875 5,802,646 Yew seedlings 4,651,372 7,039,745 11,691,117 3,487,879 5,930,887 9,418,766 Other trees 150,103 83,791 233,894 779,537 683,323 1,462,860 Total 9,362,988 10,355,128 19,718,116 10,309,172 9,655,386 19,964,558 Inventory write-down (410 ) (2,624,235 ) (2,624,645 ) (12,380 ) (2,503,773 ) (2,516,153 ) Inventories, net $ 9,362,578 $ 7,730,893 $ 17,093,471 $ 10,296,792 $ 7,151,613 $ 17,448,405 Inventories as of September 30, 2017 and December 31, 2016 consisted of the inventory purchased from related parties as follows: September 30, 2017 December 31, Inventories, net $ 2,991,782 $ 3,655,238 Inventories – related parties, net 6,370,796 6,641,554 Total $ 9,362,578 $ 10,296,792 September 30, December 31, Long-term inventories, net $ 5,897,547 $ 5,978,175 Long-term inventories – related parties, net 1,833,346 1,173,438 Total $ 7,730,893 $ 7,151,613 During the nine months ended September 30, 2017, inventories of yew seedlings in the amount of $4,300,033 were reclassified into land use rights and yew forest assets as the Company changed the use of the inventories into productive assets. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 4 - INCOME 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 September 30, 2017 and December 31, 2016. The Company’s subsidiary, Yew Bio-Pharm (HK), is incorporated in Hong Kong and has no operating profit or tax liabilities during the periods. 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, HDS and HYF, 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, complex taxus cuspidate extract, northeast yew extract, pine needle extract, and yew essential oil soap, which are not within the scope of agricultural area. The table below summarizes the difference between the U.S. statutory federal tax rate and the Company’s effective tax rate for the nine months ended September 30, 2017 and 2016: Nine Months Ended September 30, 2017 2016 U.S. federal income tax rate 34.00 % 34.00 % Foreign income not recognized in the U.S. (34.00 )% (34.00 )% PRC EIT rate 25.00 % 25.00 % PRC tax exemption and reduction (26.20 )% (29.36 )% Income tax difference under different tax jurisdictions 1.08 % 3.99 % Valuation allowance 0.12 % 0.37 % Effective tax rate - - Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for income tax and financial reporting purposes. Temporary differences, which give rise to a net deferred tax asset for the Company as of September 30, 2017 and December 31, 2016, are as follows: September 30, 2017 December 31, 2016 Tax benefit of net operating loss carry forward $ 2,279,935 $ 2,105,056 Tax benefit of inventory write-down 610,227 624,891 Valuation allowance (2,890,162 ) (2,729,947 ) Net deferred tax assets $ - $ - |
Short-Term Borrowings and Notes
Short-Term Borrowings and Notes Payable | 9 Months Ended |
Sep. 30, 2017 | |
Short-Term Borrowings and Notes Payable [Abstract] | |
SHORT-TERM BORROWINGS AND NOTES PAYABLE | NOTE 5 - SHORT-TERM BORROWINGS AND NOTES PAYABLE In May 2016, HDS entered into a line of credit agreement with Harbin Rongtong Branch of Bank of Communications (“BOCOM”) for the period from May 3, 2016 through May 3, 2018, pursuant to which the Company obtained a bank loan in the amount of RMB10,000,000 (approximately $1,519,000) on May 30, 2016, payable on May 30, 2017. HDS paid off the loan in full on May 26, 2017. On June 13, 2017, HDS obtained another loan in the amount of RMB10,000,000 (approximately $1,471,000), payable on June 12, 2018, under this credit agreement. 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 loans under this credit agreement. 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 loans. On November 10, 2016, the Company entered into a loan agreement with Shanghai Pudong Development Bank (“SPD Bank”) Harbin Branch, pursuant to which the Company obtained a bank loan in the amount of RMB1,970,000 (approximately $290,000), payable on November 9, 2017. The loan carries an interest rate of 5.873% per annum and is payable quarterly. The proceeds of the loan were used by the Company to purchase raw materials. Madam Qi has secured the loan with her personal assets. In addition, Yew Pharmaceutical, Zhiguo Wang, Yichen Wang, and Yuqi Mao, the spouse of Yichen Wang provided guarantees to the loan. On December 22, 2016, the Company entered into a credit agreement with China Everbright Bank (“CEB”) which agreed to provide credit line of RMB 20,000,000 (approximately $2,880,000) to the Company for the period of three years. During the nine months ended September 30, 2017, the Company obtained short-term loans from CEB in the total amount of $6,410,000 under this credit agreement and paid off in the total amount of $3,540,000. As of September 30, 2017, the balance of loans borrowed from CEB was $2,870,000. These loans carry interest rates ranging from 4.30% to 4.60% per annum and the interests are payable monthly. The loans with CEB are secured by properties and land use rights of Yew Pharmaceutical. In addition, Zhiguo Wang, Madame Qi, Yew Pharmaceutical, and ZTC provided guarantees to the loan. 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 | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 6 - STOCKHOLDERS’ EQUITY Stock option activities for the nine months ended September 30, 2017 and 2016 were summarized in the following table. Nine Months Ended September 30, Nine Months Ended September 30, Number of Stock Options Weighted Average Exercise Price Number of Stock Options Weighted Average Exercise Price Balance at beginning of period 25,325,512 0.22 26,805,512 0.22 Issued 50,000 0.25 - - Exercised - - - - Forfeited - - - - Balance at end of period 25,375,512 0.22 26,805,512 0.22 Option exercisable at end of period 24,675,012 0.22 24,945,512 0.22 On February 1, 2017, the Company’s board of directors in lieu of an established compensation committee granted options according to the Corporation’s 2012 Equity Incentive Plan to their employee, Jianping Han, pursuant to which Jianping was issued an option to purchase 50,000 shares of the Company’s common stock at an exercise price of $0.25 per share. The option vests immediately on grant date, and will expire on February 1, 2021. The following table summarizes the shares of the Company’s common stock issuable upon exercise of options outstanding at September 30, 2017: Stock Options Outstanding Stock Options Exercisable Range of Exercise Price Number Outstanding at September 30, 2017 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable at September 30, 2017 Weighted Average Exercise Price $ 0.20-0.25 25,375,512 2.11 $ 0.22 24,675,012 $ 0.22 On September 12, 2017, the Company approved to extend the expiration date for the options issued to Zhiguo Wang and Guifang Qi from December 13, 2017 to December 31, 2019, which led to the weighted average remaining contractual life changed from 0.29 years to 2.11 years. The Company recognized a total of $94,177 and $245,518 stock option expense for the nine months ended September 30, 2017 and 2016, respectively. The value of option was calculated using Black Scholes Option Pricing Model based upon the following assumptions: dividend yield of 0%, volatility of 194%, risk free rate of 1.22%, and expected term of 2 years. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 7 - EARNINGS PER SHARE Under the provisions of ASC 260, “Earnings Per Share”, basic income per common share is computed by dividing net income attributable to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of the company, subject to anti-dilution limitations. The following table presents a reconciliation of basic and diluted net income per share for the three and nine months ended September 30, 2017 and 2016: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income available to common stockholders for basic and diluted net income per share of common stock $ 614,407 $ 1,080,538 $ 11,039,824 $ 3,437,145 Weighted average common stock outstanding - basic 51,875,000 51,875,000 51,875,000 51,875,000 Effect of dilutive securities: Stock options issued to directors/officers/employees 2,686,533 18,930 2,090,264 - Weighted average common stock outstanding - diluted 54,561,533 51,893,930 53,965,264 51,875,000 Net income per common share - basic $ 0.01 $ 0.02 $ 0.21 $ 0.07 Net income per common share - diluted $ 0.01 $ 0.02 $ 0.20 $ 0.07 Diluted net income per share is computed using the weighted average number of common shares and dilutive potential common shares outstanding during the respective periods. The potentially dilutive securities that were not included in the calculation of diluted net income per share in the periods presented where their inclusion would be anti-dilutive included options to purchase common shares of 244,322 and 26,805,512 on a weighted average basis for the three months ended September 30, 2017 and 2016, respectively; and option to purchase common shares of 244,322 and 26,805,512 on a weighted average basis for the nine months ended September 30, 2017 and 2016, respectively. |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Major Customers | 9 Months Ended |
Sep. 30, 2017 | |
Concentrations of Credit Risk and Major Customers [Abstract] | |
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | NOTE 8 - CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS Customers For the nine months ended September 30, 2017 and 2016, customers accounting for 10% or more of the Company’s revenue were as follows: Nine Months Ended September 30, Customer 2017 2016 A (Yew Pharmaceutical, a related party) 48.5 % 61.2 % B 47.5 % 24.7 % C * % * % * Less than 10% The three largest customers accounted for 99.9% and 99.8% of the Company’s total outstanding accounts receivable at September 30, 2017 and December 31, 2016, respectively, of which Yew Pharmaceutical, a related party, accounted for 56.6% and 32.4% of total outstanding accounts receivable, respectively; customer B accounted for 38.7% and 35.3% of total outstanding accounts receivable, respectively; customer D, Wonder Genesis Global Ltd., a related party, accounted for 4.6% of total outstanding accounts receivable at September 30, 2017 and customer C accounted for 32.1% of total outstanding accounts receivable at December 31, 2016. Suppliers For the nine months ended September 30, 2017 and 2016, suppliers accounting for 10% or more of the Company’s purchase were as follows: Nine Months Ended September 30, Supplier 2017 2016 A (Yew Pharmaceutical, a related party) 62.5 % 75.9 % C 10.0 % * % * Less than 10% Accounts payable to supplier I and supplier J accounted for 49.7% and 32.0% of the Company’s total accounts payable at September 30, 2017. Accounts payable to supplier F, supplier G, supplier C, Changzhi Du, a related party of the Company, and supplier H accounted for 24.6%, 24.1%, 17.7% and 15.8% of the Company’s total accounts payable at December 31, 2016. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 9 - RELATED PARTY TRANSACTIONS In addition to several of the Company’s officers and directors, the Company conducted transactions with the following related parties: Company Ownership Heilongjiang Zishan Technology Stock Co., Ltd. (“ZTC”) 51% owned by Heilongjiang Hongdoushan Ecology Forest Stock 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 Stock Co., Ltd. (“HEFS”) 63% owned by Mr. Wang, 34% owned by Madame Qi, and 3% owned by third parties. Hongdoushan Bio-Pharmaceutical Co., Ltd. (“HBP”) 30% owned by Mr. Wang, 19% owned by Madame Qi and 51% owned by HEFS. Heilongjiang Pingshan Hongdoushan Development Co., Ltd. (“HDS Development”) 80% owned by HEFS and 20% owned by Kairun. Wuchang City Xinlin Forestry Co., Ltd. (Xinlin) 98% owned by ZTC and 2% owned by HEFS effective March 21, 2016. Changzhi Du Legal 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. Wonder Genesis Global Ltd. Changzhi Du is the Company’s director. Land use rights and yew forest assets purchased from related parties Land use rights and yew forest assets purchased from related parties as of September 30, 2017 and December 31, 2016 are as follows: September 30, December 31, Land use rights and yew forest assets, net $ 7,044,354 $ 3,210,193 Land use rights and yew forest assets - related parties, net 2,779,386 1,348,041 Total $ 9,823,740 $ 4,558,234 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, yew essential oil soap, complex taxus cuspidate extract, northeast yew extract, and pine needle extract purchase agreements with Yew Pharmaceuticals, pursuant to which the Company purchases yew candles, yew essential oil soap, complex taxus cuspidate extract, northeast yew extract, and pine needle extract as finished goods and then sells to third party and related party. For the nine months ended September, 2017 and 2016, total sales to Yew Pharmaceutical under the above agreement amounted to $17,011,006 and $24,063,798, respectively. At September 30, 2017 and December 31, 2016, the Company has $17,116,166 and $6,941,931 accounts receivable from Yew Pharmaceutical, respectively. For the nine months ended September 30, 2017 and 2016, the total purchase of yew candles, yew essential oil soap, complex taxus cuspidate extract, northeast yew extract, and pine needle extract from Yew Pharmaceutical amounted to $14,934,540 and $29,330,000, respectively. For the nine months ended September 30, 2017 and 2016, the products purchased from Yew Pharmaceutical in the amount of $17,804,944 and $14,231,044 were sold and included in the total cost of revenue of $23,185,196 and $34,885,324, respectively. For the nine months ended September 30, 2017 and 2016, HYF purchased wood ear mushroom extract from Yew Pharmaceutical in the amount of $0 and $3,660, respectively, and had accounts payable of $49,198 and $47,149 to Yew Pharmaceutical at September 30, 2017 and December 31, 2016, respectively. At September 30, 2017 and December 31, 2016, HYF had $39,085 and $37,457, respectively, due to Yew Pharmaceutical, which represents an unsecured loan bearing no interest and payable on demand and was included in due to related parties on the accompanying consolidated balance sheets. Transactions with HBP For the nine months ended September 30, 2017 and 2016, HBP paid off operation expense on behalf of HYF in the amount of $34,341 and $27,214, respectively. As of September 30, 2017 and December 31, 2016, HYF had due to HBP in the amount of $95,827 and $58,178, respectively, which was included in due to related parties in the accompanying consolidated balance sheets. Transactions with HDS Development For the nine months ended September 30, 2016, HDS prepaid $310,334 to HDS Development for purchasing yew seedlings. On June 30, 2016, the prepayment was returned to the Company in full due to the cancellation of the purchase. Transactions with Changzhi Du For the nine months ended September 30, 2017 and 2016, HDS purchased yew seedlings from Changzhi Du in the amount of $2,395,051 and $2,475,283, respectively. As of September 30, 2017 and December 31, 2016, the Company had accounts payable of $0 and $591,169 to Changzhi Du, respectively. Transactions with Wonder Genesis Global Ltd. For the nine months ended September 30, 2017 and 2016, total sales to Wonder Genesis Global Ltd. amounted to $1,352,660 and $0, respectively. At September 30, 2017 and December 31, 2016, the Company has $1,383,395 and $0 accounts receivable from Wonder Genesis Global Ltd., respectively. Operating Leases On March 25, 2005, the Company entered into an Agreement for the Lease of Seedling Land with ZTC (the “ZTC Lease”). Pursuant to the ZTC Lease, the Company leased 361 mu of land from ZTC for a period of 30 years, expiring on March 24, 2035. Annual payments under the ZTC Lease are RMB 162,450 (approximately $24,000). The payment for the first five years of the ZTC Lease was due prior to December 31, 2010 and beginning in 2011, the Company is required to make full payment for the land use rights in advance for each subsequent five-year period. For the nine months ended September 30, 2017 and 2016, rent expense related to the ZTC Lease amounted to $17,902 and $18,518, respectively. At September 30, 2017 and December 31, 2016, prepaid rent to ZTC amounted to $61,030 and $76,035, respectively, which was included in prepaid expenses - related party on the accompanying consolidated balance sheets. On January 1, 2010, the Company entered into a lease for office space with Mr. Wang (the “Office Lease”). Pursuant to the Office Lease, annual payments of RMB15,000 (approximately $2,000) are due for each of the term. The term of the Office Lease is 15 years and expires on December 31, 2025. For the nine months ended September 30, 2017 and 2016, rent expense related to the Office Lease amounted to $1,653 and $ 1,710, respectively. As of September 30, 2017 and December 31, 2016, the unpaid rent was $3,529 and $1,762, 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 Zhiguo Wang (the “JSJ Lease”). Pursuant to the JSJ Lease, JSJ leases approximately 30 square meter of office space from Zhiguo Wang in Harbin. Rent under the JSJ Lease is RMB10,000 (approximately $1,500) annually. The term of the JSJ Lease is three years and expires on June 30, 2015. On July 1, 2015, the Company and Mr. Wang renewed the JSJ Lease. The renewed lease expires on June 30, 2018. For the nine months ended September 30, 2017 and 2016, rent expense related to the JSJ Lease amounted to $1,102 and $1,140, respectively. As of September 30, 2017 and December 31, 2016, the unpaid rent was $4,884 and $3,600, respectively, which was included in due to related parties in the accompanying consolidated balance sheets. On January 1, 2015, HYF entered into an lease agreement with HBP, pursuant to which HBP leases a warehouse, with an area of 225 square meters, and a workshop, with an area of 50 square meters, both of which are located at No.1 Zisan Road, Shangzhi economic development district, Shangzhi City, Heilongjiang Province, to HYF in exchange for no consideration for the period from January 1, 2015 to December 31, 2020. The Company leased office space in the A’cheng district in Harbin (the “A’cheng Lease”) from HDS Development on March 20, 2002. The A’cheng Lease is for a term of 23 years and expires on March 19, 2025. Pursuant to the A’cheng Lease, lease payment shall be made as follows: Period Annual lease amount Payment due date March 2002 to February 2012 RMB 25,000 Before December 2012 March 2012 to February 2017 RMB 25,000 Before December 2017 March 2017 to March 2025 RMB 25,000 Before December 2025 For the nine months ended September 30, 2017 and 2016, rent expense related to the A’cheng Lease amounted $2,635 and $2,726, respectively. At September 30, 2017 and December 31, 2016, the unpaid rent was $939 and $5,401, respectively, which was included in due to related parties on 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. These advances are usually short-term in nature, non-interest bearing, unsecured and payable on demand. Due to Zhiguo Wang and Madame Qi, excluding the unpaid rents disclosed above and the borrowings from Madame Qi as disclosed below, amounted to $41,051 and $178,228 at September 30, 2017 and December 31, 2016, 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 nine months ended September 30, 2017 and 2016, the Company made repayments of $105,875 and $49,030 to Madame Qi, respectively. As of September 30, 2017 and December 31, 2016, the total borrowings including the interest were $493,095 and $598,970, respectively, which were included in due to related parties on the accompanying consolidated balance sheets. Research and Development Agreement The Company entered into a Technology Development Service Agreement dated January 1, 2010 (the “Technology Agreement”) with Kairun. The term of the Technology Agreement was two years. Under the Technology Agreement, Kairun provides the Company with testing and technologies regarding utilization of yew trees to extract taxol and develop higher concentration of taxol in the yew trees the Company grow and cultivate. For these services, the Company agreed to pay Kairun RMB200,000 (approximately $32,000) after the technologies developed by Kairun are tested and approved by the Company. The Company will retain all intellectual property rights in connection with the technologies developed by Kairun. Kairun may not provide similar services to any other party without the Company’s prior written consent. In February 2012, we entered into a supplemental agreement with Kairun, extending the term of the Technology Agreement indefinitely until project results specified in the original Technology Agreement have been achieved. Kairun is owned directly and indirectly primarily by Mr. Wang and Madame Qi. As of September 30, 2017, Kairun has not yet completed the services provided for in the Technology Agreement and, therefore, no payment was made to Kairun. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | NOTE 10 - SEGMENT INFORMATION ASC 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. For the nine months ended September 30, 2017 and 2016, the Company operated in four reportable business segments: (1) the TCM raw materials segment, consisting of the production and sale of yew raw materials or yew tree extract 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) Others segment, consisting of the sale of yew candles, pine needle extract, yew essential oil soap, complex taxus cuspidate extract, and northeast yew extract. 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 extract, yew essential oil soap, complex taxus cuspidate extract, and northeast yew extract are conducted in the PRC. Information with respect to these reportable business segments for the nine months ended September 30, 2017 and 2016 was as follows: Nine Months Ended, September 30, 2017 2016 Revenues: TCM raw materials $ 17,011,006 $ 24,063,798 Yew trees 9,906 23,246 Handicrafts 5,284 97,560 Others 18,018,559 15,162,974 $ 35,044,755 $ 39,347,578 Cost of revenues: TCM raw materials 5,031,434 19,820,917 Yew trees 7,897 19,458 Handicrafts 4,663 91,145 Others 18,141,202 14,953,804 $ 23,185,196 $ 34,885,324 Depreciation and amortization: TCM raw materials 130,262 83,739 Yew trees 31,778 93,807 Handicrafts 679 19,766 Others 18,487 21,747 $ 181,206 $ 219,059 Net income: TCM raw materials 11,834,671 4,242,881 Yew trees 1,924 3,788 Handicrafts 576 6,415 Others (797,347 ) (815,939 ) $ 11,039,824 $ 3,437,145 September 30, 2017 TCM raw materials Yew trees Handicrafts Others Total Identifiable long-lived assets, net $ 8,523,903 $ 975,612 $ 44,212 $ 863,555 $ 10,407,282 December 31, 2016 TCM raw materials Yew trees Handicrafts Others Total Identifiable long-lived assets, net $ 4,558,234 $ 436,948 $ 22,218 $ 232,950 $ 5,250,350 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 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 | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 - COMMITMENTS AND CONTINGENCIES Operating Lease On February 1, 2015, the Company entered into a lease for its U.S. principal office space in California. Pursuant to the office lease, the monthly payment of $3,039 is due on the first day of each month of the first year, $3,150 for each month of the second year and $3,261 for each month of the third year. The term of the lease is for 3 years and expires on January 31, 2018. For the nine months ended September 30, 2017 and 2016, rent expense related to the U.S. principal office lease amounted to $30,348 and $30,352, respectively. On May 1, 2017, the Company entered into a lease for product exhibition and promotion in California. The lease is on month by month basis and the monthly rent is $2,800. For the nine months ended September 30, 2017, the related rent expense amounted to $14,000. See Note 9 for related party operating lease commitments. Seedling Purchase and Sale Long-Term Cooperation Agreement On November 25, 2010, HDS entered into a Seedling Purchase and Sale Long-Term Cooperation Agreement (the “Seedling Agreement”) with Wuchang City Xinlin Foresty Co., Ltd (“Xinlin”), a related party of the Company, pursuant to which HDS will sell yew seedlings to Xinlin at a price equal to 90% of HDS’s publicly-published wholesale prices. Xinlin has agreed to purchase from the Company 10,000 yew seedlings annually. For the nine months ended September 30, 2017 and 2016, the Company didn’t make sales under the Seedling Agreement. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Recent Accounting Pronouncements [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 12 - RECENT ACCOUNTING PRONOUNCEMENTS In January 2017, the FASB issued ASU 2017-03, “ Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323) In May 2017, the FASB issue ASU 2017-09, “ Compensation – stock compensation (Topic 718): scope of modification accounting In September 2017, the FASB issue ASU 2017-13, “ Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 - SUBSEQUENT EVENTS In October and November, the Company repaid loans from CEB in the amount of $1,220,000 and obtained additional short-term loans in the total amount of $1,220,000 under the credit agreement entered into on December 22, 2016 (See Note 5). The loans carry and interest rates of 4.30% per annum and the interests are payable monthly. The loans with CEB are secured by properties and land use rights of Yew Pharmaceutical. In addition, Zhiguo Wang, Madame Qi, Yew Pharmaceutical, and ZTC provided guarantees to the loans. On November 2, 2017, the Company’s Board of Directors was granted the discretionary authority by the annual meeting of stockholders to make a reverse split of its common stock between1-for-4 and 1-for-8 by June 30, 2018. As of the filing date, the reverse split has not occurred. On November 6, 2017, the Company paid off the commercial acceptance note issued to Yew Pharmaceutical in full (See Note 5). On November 9, 2017, the Company paid off the loan from SPD Bank in full (See Note 5). |
Organization and Principal Ac19
Organization and Principal Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization and Principal Activities [Abstract] | |
Schedule of Company's subsidiaries, variable interest entity ("VIE") and VIE's subsidiary | 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, complex taxus cuspidate extract, and northeast yew extract Harbin Yew Food Co., Ltd (“HYF”) PRC November 4, 2014 RMB100,000(1) 100%(1) Sales of wood ear mushroom drink MC Commerce Holding Inc.(“MC”) State of California, United State 100%(2) Sales of yew products (1) Wholly-owned subsidiary of HDS (2) 51% owned by YBP and 49% owned by HDS |
Principles of Consolidation (Ta
Principles of Consolidation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Principles of Consolidation [Abstract] | |
Schedule of carrying amount and classification of the assets and liabilities in the Company's balance sheets that relate to the Company's VIE and VIE's subsidiary | September 30, 2017 December 31, 2016 Assets Cash $ 1,254,677 $ 249,868 Accounts receivable 11,703,888 14,427,767 Accounts receivable - related parties 18,499,561 6,941,931 Inventories (current and long-term), net 14,721,675 16,746,205 Prepaid expenses and other assets 50,637 35,827 Prepaid expenses - related party 61,030 76,035 Property and equipment, net 575,630 595,338 Land use rights and yew forest assets, net 9,780,331 4,558,233 VAT recoverables 622,134 1,655,954 Total assets of VIE and its subsidiary $ 57,269,563 $ 45,287,158 Liabilities Accrued expenses and other payables $ 150,703 $ 375,262 Accounts payable 938,912 2,654,067 Accounts payable - related parties 49,198 638,318 Taxes payable - 11,789 Due to VIE holding companies 244,893 560,036 Short-term borrowings 4,758,689 1,723,865 Note payable 1,206,702 1,156,444 Deferred income 351,642 120,973 Due to related parties 139,380 157,484 Total liabilities of VIE and its subsidiary $ 7,840,119 $ 7,398,238 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventories [Abstract] | |
Schedule of inventories | September 30, 2017 December 31, 2016 Current portion Long-term portion Total Current portion Long-term portion Total Raw materials $ 41,560 $ 2,592,266 $ 2,633,826 $ 795,985 $ 2,484,301 $ 3,280,286 Finished goods 4,519,953 639,326 5,159,279 5,245,771 556,875 5,802,646 Yew seedlings 4,651,372 7,039,745 11,691,117 3,487,879 5,930,887 9,418,766 Other trees 150,103 83,791 233,894 779,537 683,323 1,462,860 Total 9,362,988 10,355,128 19,718,116 10,309,172 9,655,386 19,964,558 Inventory write-down (410 ) (2,624,235 ) (2,624,645 ) (12,380 ) (2,503,773 ) (2,516,153 ) Inventories, net $ 9,362,578 $ 7,730,893 $ 17,093,471 $ 10,296,792 $ 7,151,613 $ 17,448,405 |
Schedule of inventory purchased from related parties | September 30, 2017 December 31, Inventories, net $ 2,991,782 $ 3,655,238 Inventories – related parties, net 6,370,796 6,641,554 Total $ 9,362,578 $ 10,296,792 September 30, December 31, Long-term inventories, net $ 5,897,547 $ 5,978,175 Long-term inventories – related parties, net 1,833,346 1,173,438 Total $ 7,730,893 $ 7,151,613 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Taxes [Abstract] | |
Summary of difference between the U.S. statutory federal tax rate and Company's effective tax rate | Nine Months Ended September 30, 2017 2016 U.S. federal income tax rate 34.00 % 34.00 % Foreign income not recognized in the U.S. (34.00 )% (34.00 )% PRC EIT rate 25.00 % 25.00 % PRC tax exemption and reduction (26.20 )% (29.36 )% Income tax difference under different tax jurisdictions 1.08 % 3.99 % Valuation allowance 0.12 % 0.37 % Effective tax rate - - |
Summary of net deferred tax assets | September 30, 2017 December 31, 2016 Tax benefit of net operating loss carry forward $ 2,279,935 $ 2,105,056 Tax benefit of inventory write-down 610,227 624,891 Valuation allowance (2,890,162 ) (2,729,947 ) Net deferred tax assets $ - $ - |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity [Abstract] | |
Summary of stock option activities | Nine Months Ended September 30, Nine Months Ended September 30, Number of Stock Options Weighted Average Exercise Price Number of Stock Options Weighted Average Exercise Price Balance at beginning of period 25,325,512 0.22 26,805,512 0.22 Issued 50,000 0.25 - - Exercised - - - - Forfeited - - - - Balance at end of period 25,375,512 0.22 26,805,512 0.22 Option exercisable at end of period 24,675,012 0.22 24,945,512 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 September 30, 2017 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable at September 30, 2017 Weighted Average Exercise Price $ 0.20-0.25 25,375,512 2.11 $ 0.22 24,675,012 $ 0.22 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of basic and diluted net income per share | Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income available to common stockholders for basic and diluted net income per share of common stock $ 614,407 $ 1,080,538 $ 11,039,824 $ 3,437,145 Weighted average common stock outstanding - basic 51,875,000 51,875,000 51,875,000 51,875,000 Effect of dilutive securities: Stock options issued to directors/officers/employees 2,686,533 18,930 2,090,264 - Weighted average common stock outstanding - diluted 54,561,533 51,893,930 53,965,264 51,875,000 Net income per common share - basic $ 0.01 $ 0.02 $ 0.21 $ 0.07 Net income per common share - diluted $ 0.01 $ 0.02 $ 0.20 $ 0.07 |
Concentrations of Credit Risk25
Concentrations of Credit Risk and Major Customers (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Customers [Member] | |
Concentration Risk [Line Items] | |
Summary of major customers and suppliers | Nine Months Ended September 30, Customer 2017 2016 A (Yew Pharmaceutical, a related party) 48.5 % 61.2 % B 47.5 % 24.7 % C * % * % * Less than 10% |
Suppliers [Member] | |
Concentration Risk [Line Items] | |
Summary of major customers and suppliers | Nine Months Ended September 30, Supplier 2017 2016 A (Yew Pharmaceutical, a related party) 62.5 % 75.9 % C 10.0 % * % * Less than 10% |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Company's transactions with the related parties | Company Ownership Heilongjiang Zishan Technology Stock Co., Ltd. (“ZTC”) 51% owned by Heilongjiang Hongdoushan Ecology Forest Stock 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 Stock Co., Ltd. (“HEFS”) 63% owned by Mr. Wang, 34% owned by Madame Qi, and 3% owned by third parties. Hongdoushan Bio-Pharmaceutical Co., Ltd. (“HBP”) 30% owned by Mr. Wang, 19% owned by Madame Qi and 51% owned by HEFS. Heilongjiang Pingshan Hongdoushan Development Co., Ltd. (“HDS Development”) 80% owned by HEFS and 20% owned by Kairun. Wuchang City Xinlin Forestry Co., Ltd. (Xinlin) 98% owned by ZTC and 2% owned by HEFS effective March 21, 2016. Changzhi Du Legal 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. Wonder Genesis Global Ltd. Changzhi Du is the Company’s director. |
Schedule of land use rights and yew forest assets purchased from related parties | September 30, December 31, Land use rights and yew forest assets, net $ 7,044,354 $ 3,210,193 Land use rights and yew forest assets - related parties, net 2,779,386 1,348,041 Total $ 9,823,740 $ 4,558,234 |
Schedule of lease payment | Period Annual lease amount Payment due date March 2002 to February 2012 RMB 25,000 Before December 2012 March 2012 to February 2017 RMB 25,000 Before December 2017 March 2017 to March 2025 RMB 25,000 Before December 2025 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Information [Abstract] | |
Summary of reportable business segments | Nine Months Ended, September 30, 2017 2016 Revenues: TCM raw materials $ 17,011,006 $ 24,063,798 Yew trees 9,906 23,246 Handicrafts 5,284 97,560 Others 18,018,559 15,162,974 $ 35,044,755 $ 39,347,578 Cost of revenues: TCM raw materials 5,031,434 19,820,917 Yew trees 7,897 19,458 Handicrafts 4,663 91,145 Others 18,141,202 14,953,804 $ 23,185,196 $ 34,885,324 Depreciation and amortization: TCM raw materials 130,262 83,739 Yew trees 31,778 93,807 Handicrafts 679 19,766 Others 18,487 21,747 $ 181,206 $ 219,059 Net income: TCM raw materials 11,834,671 4,242,881 Yew trees 1,924 3,788 Handicrafts 576 6,415 Others (797,347 ) (815,939 ) $ 11,039,824 $ 3,437,145 |
Summary of identifiable long-lived assets, net | September 30, 2017 TCM raw materials Yew trees Handicrafts Others Total Identifiable long-lived assets, net $ 8,523,903 $ 975,612 $ 44,212 $ 863,555 $ 10,407,282 December 31, 2016 TCM raw materials Yew trees Handicrafts Others Total Identifiable long-lived assets, net $ 4,558,234 $ 436,948 $ 22,218 $ 232,950 $ 5,250,350 |
Organization and Principal Ac28
Organization and Principal Activities (Details) - 9 months ended Sep. 30, 2017 | USD ($) | HKD | CNY (¥) | |
Heilongjiang Jinshangjing Bio-Technology Development Co., Limited ("JSJ") [Member] | ||||
Schedule of company's subsidiaries, variable interest entity ("VIE") and VIE's subsidiary | ||||
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, variable interest entity ("VIE") and VIE's subsidiary | ||||
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, variable interest entity ("VIE") and VIE's subsidiary | ||||
Domicile and Date of Incorporation | PRC August 22, 1996 | |||
Registered Capital | ¥ 45,000,000 | |||
Effective Ownership, Percentage | 49.00% | |||
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, complex taxus cuspidate extract, and northeast yew extract | |||
Harbin Yew Food Co., Ltd ("HYF") [Member] | ||||
Schedule of company's subsidiaries, variable interest entity ("VIE") and VIE's subsidiary | ||||
Domicile and Date of Incorporation | PRC November 4, 2014 | |||
Registered Capital | [1] | ¥ 100,000 | ||
Effective Ownership, Percentage | [1] | 100.00% | ||
Principal Activities | Sales of wood ear mushroom drink | |||
MC Commerce Holding Inc.("MC") [Member] | ||||
Schedule of company's subsidiaries, variable interest entity ("VIE") and VIE's subsidiary | ||||
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] | 51% owned by YBP and 49% owned by HDS |
Organization and Principal Ac29
Organization and Principal Activities (Details Textual) | Sep. 30, 2017 |
Yew Bio-Pharm Holdings Limited ("Yew Bio-Pharm (HK)") [Member] | |
Organization and Principal Activities (Textual) | |
Effective Ownership, Percentage | 51.00% |
Harbin Yew Science and Technology Development Co., Ltd. ("HDS") [Member] | |
Organization and Principal Activities (Textual) | |
Effective Ownership, Percentage | 49.00% |
Principles of Consolidation (De
Principles of Consolidation (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Total assets of VIE and its subsidiary | $ 57,269,563 | $ 45,287,158 |
Liabilities | ||
Total liabilities of VIE and its subsidiary | 7,840,119 | 7,398,238 |
Cash [Member] | ||
Assets | ||
Total assets of VIE and its subsidiary | 1,254,677 | 249,868 |
Accounts receivable [Member] | ||
Assets | ||
Total assets of VIE and its subsidiary | 11,703,888 | 14,427,767 |
Accounts receivable - related parties [Member] | ||
Assets | ||
Total assets of VIE and its subsidiary | 18,499,561 | 6,941,931 |
Inventories (current and long-term), net [Member] | ||
Assets | ||
Total assets of VIE and its subsidiary | 14,721,675 | 16,746,205 |
Prepaid expenses and other assets [Member] | ||
Assets | ||
Total assets of VIE and its subsidiary | 50,637 | 35,827 |
Prepaid expenses - related party [Member] | ||
Assets | ||
Total assets of VIE and its subsidiary | 61,030 | 76,035 |
Property and equipment, net [Member] | ||
Assets | ||
Total assets of VIE and its subsidiary | 575,630 | 595,338 |
Land use rights and yew forest assets, net [Member] | ||
Assets | ||
Total assets of VIE and its subsidiary | 9,780,331 | 4,558,233 |
VAT recoverables [Member] | ||
Assets | ||
Total assets of VIE and its subsidiary | 622,134 | 1,655,954 |
Accrued expenses and other payables [Member] | ||
Liabilities | ||
Total liabilities of VIE and its subsidiary | 150,703 | 375,262 |
Accounts payable [Member] | ||
Liabilities | ||
Total liabilities of VIE and its subsidiary | 938,912 | 2,654,067 |
Accounts payable - related parties [Member] | ||
Liabilities | ||
Total liabilities of VIE and its subsidiary | 49,198 | 638,318 |
Taxes payable [Member] | ||
Liabilities | ||
Total liabilities of VIE and its subsidiary | 11,789 | |
Due to VIE holding companies [Member] | ||
Liabilities | ||
Total liabilities of VIE and its subsidiary | 244,893 | 560,036 |
Short-term borrowings [Member] | ||
Liabilities | ||
Total liabilities of VIE and its subsidiary | 4,758,689 | 1,723,865 |
Note payable [Member] | ||
Liabilities | ||
Total liabilities of VIE and its subsidiary | 1,206,702 | 1,156,444 |
Deferred income [Member] | ||
Liabilities | ||
Total liabilities of VIE and its subsidiary | 351,642 | 120,973 |
Due to related parties [Member] | ||
Liabilities | ||
Total liabilities of VIE and its subsidiary | $ 139,380 | $ 157,484 |
Principles of Consolidation (31
Principles of Consolidation (Details Textual) | 9 Months Ended |
Sep. 30, 2017CNY (¥) | |
Principles of Consolidation (Textual) | |
Monthly consulting service fee as percentage of net income of HDS paid to JSJ | 100.00% |
HDS obligation within 30 days after the end of each month, 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 year, 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 |
Execution of any major contract is limited under option agreement | Over RMB500,000 |
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. |
Shareholder's equity interests in HDS | ¥ 10 |
Inventories (Details)
Inventories (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule of inventories | ||
Inventories, net, Current portion | $ 9,362,578 | $ 10,296,792 |
Inventories, net, Long-term portion | 7,730,893 | 7,151,613 |
Inventory write-down, Current portion | (410) | (12,380) |
Inventory write-down, Long-term portion | (2,624,235) | (2,503,773) |
Inventory write-down, Total | (2,624,645) | (2,516,153) |
Inventories, net, Total | 17,093,471 | 17,448,405 |
Raw materials [Member] | ||
Schedule of inventories | ||
Inventories, net, Current portion | 41,560 | 795,985 |
Inventories, net, Long-term portion | 2,592,266 | 2,484,301 |
Inventories, net, Total | 2,633,826 | 3,280,286 |
Finished goods [Member] | ||
Schedule of inventories | ||
Inventories, net, Current portion | 4,519,953 | 5,245,771 |
Inventories, net, Long-term portion | 639,326 | 556,875 |
Inventories, net, Total | 5,159,279 | 5,802,646 |
Yew seedlings [Member] | ||
Schedule of inventories | ||
Inventories, net, Current portion | 4,651,372 | 3,487,879 |
Inventories, net, Long-term portion | 7,039,745 | 5,930,887 |
Inventories, net, Total | 11,691,117 | 9,418,766 |
Other trees [Member] | ||
Schedule of inventories | ||
Inventories, net, Current portion | 150,103 | 779,537 |
Inventories, net, Long-term portion | 83,791 | 683,323 |
Inventories, net, Total | 233,894 | 1,462,860 |
Total [Member] | ||
Schedule of inventories | ||
Inventories, net, Current portion | 9,362,988 | 10,309,172 |
Inventories, net, Long-term portion | 10,355,128 | 9,655,386 |
Inventories, net, Total | $ 19,718,116 | $ 19,964,558 |
Inventories (Details 1)
Inventories (Details 1) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Inventories [Abstract] | ||
Inventories, net | $ 2,991,782 | $ 3,655,238 |
Inventories - related parties, net | 6,370,796 | 6,641,554 |
Total | 9,362,578 | 10,296,792 |
Long-term inventories, net | 5,897,547 | 5,978,175 |
Long-term inventories - related parties, net | 1,833,346 | 1,173,438 |
Total | $ 7,730,893 | $ 7,151,613 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Inventories (Textual) | ||
Reclassification of inventories to land use rights and yew forest assets | $ 4,300,033 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Summary of difference between U.S. statutory federal tax rate and Company's effective tax rate | ||
U.S. federal income tax rate | 34.00% | 34.00% |
Foreign income not recognized in the U.S. | (34.00%) | (34.00%) |
PRC EIT rate | 25.00% | 25.00% |
PRC tax exemption and reduction | (26.20%) | (29.36%) |
Income tax difference under different tax jurisdictions | 1.08% | 3.99% |
Valuation allowance | 0.12% | 0.37% |
Effective tax rate |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Summary of net deferred tax assets | ||
Tax benefit of net operating loss carry forward | $ 2,279,935 | $ 2,105,056 |
Tax benefit of inventory write-down | 610,227 | 624,891 |
Valuation allowance | (2,890,162) | (2,729,947) |
Net deferred tax assets |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income 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. | |
Hong Kong [Member] | ||
Income Taxes (Textual) | ||
Tax rate percentage | 16.50% |
Short-Term Borrowings and Not38
Short-Term Borrowings and Notes Payable (Details) | 9 Months Ended | |||||||||||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 13, 2017USD ($) | Jun. 13, 2017CNY (¥) | Dec. 22, 2016USD ($) | Dec. 22, 2016CNY (¥) | Nov. 10, 2016USD ($) | Nov. 10, 2016CNY (¥) | Nov. 04, 2016USD ($) | Nov. 04, 2016CNY (¥) | May 30, 2016USD ($) | May 30, 2016CNY (¥) | |
Short-Term Borrowings and Notes Payable (Textual) | ||||||||||||
Short-term debt principal amount | $ 1,471,000 | ¥ 10,000,000 | $ 290,000 | ¥ 1,970,000 | $ 1,188,000 | ¥ 8,030,000 | $ 1,519,000 | ¥ 10,000,000 | ||||
Loan interest rate | 5.873% | 5.873% | 5.873% | 5.873% | ||||||||
Proceeds from short-term loans from the bank | $ 7,881,105 | $ 1,530,105 | ||||||||||
Minimum [Member] | ||||||||||||
Short-Term Borrowings and Notes Payable (Textual) | ||||||||||||
Loan interest rate | 4.30% | |||||||||||
Maximum [Member] | ||||||||||||
Short-Term Borrowings and Notes Payable (Textual) | ||||||||||||
Loan interest rate | 4.60% | |||||||||||
Credit agreement [Member] | ||||||||||||
Short-Term Borrowings and Notes Payable (Textual) | ||||||||||||
Proceeds from short-term loans from the bank | $ 6,410,000 | |||||||||||
Total amount paid off | 3,540,000 | |||||||||||
China Everbright Bank [Member] | ||||||||||||
Short-Term Borrowings and Notes Payable (Textual) | ||||||||||||
Short-term debt principal amount | $ 2,880,000 | ¥ 20,000,000 | ||||||||||
Balance of short-term loans | $ 2,870,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Summary of stock option activities | ||
Number of Stock Options, Beginning balance | 25,325,512 | 26,805,512 |
Number of Stock Options, Issued | 50,000 | |
Number of Stock Options, Exercised | ||
Number of Stock Options, Forfeited | ||
Number of Stock Options, Ending balance | 25,375,512 | 26,805,512 |
Number of Stock Options, Options exercisable | 24,675,012 | 24,945,512 |
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, Forfeited | ||
Weighted Average Exercise Price, Ending balance | 0.22 | 0.22 |
Weighted Average Exercise Price, Options exercisable | $ 0.22 | $ 0.22 |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Summary 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 | 25,375,512 |
Stock Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 2 years 1 month 9 days |
Stock Options Outstanding, Weighted Average Exercise Price | $ 0.22 |
Stock Options Exercisable, Number Exercisable | shares | 24,675,012 |
Stock Options Exercisable, Weighted Average Exercise Price | $ 0.22 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | Sep. 12, 2017 | Feb. 01, 2017 | Sep. 30, 2017 | Sep. 30, 2016 |
Stockholders' Equity (Textual) | ||||
Issuance of common stock | 50,000 | |||
Common stock exercise price | $ 0.25 | |||
Stock option expense | $ 94,177 | $ 245,518 | ||
Stock Option [Member] | ||||
Stockholders' Equity (Textual) | ||||
Issuance of common stock | 50,000 | |||
Common stock exercise price | $ 0.25 | |||
Dividend yield | 0.00% | |||
Volatility | 194.00% | |||
Risk free rate | 1.22% | |||
Expected term | 2 years | |||
Stock options vesting, description | The option vests immediately on grant date, and will expire on February 1, 2021. | |||
Options issued, description | The Company approved to extend the expiration date for the options issued to Zhiguo Wang and Guifang Qi from December 13, 2017 to December 31, 2019, which led to the weighted average remaining contractual life changed from 0.29 years to 2.11 years. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income available to common stockholders for basic and diluted net income per share of common stock | $ 614,407 | $ 1,080,538 | $ 11,039,824 | $ 3,437,145 |
Weighted average common stock outstanding - basic | 51,875,000 | 51,875,000 | 51,875,000 | 51,875,000 |
Effect of dilutive securities: | ||||
Stock options issued to directors/officers/employees | 2,686,533 | 18,930 | 2,090,264 | |
Weighted average common stock outstanding - diluted | 54,561,533 | 51,893,930 | 53,965,264 | 51,875,000 |
Net income per common share - basic | $ 0.01 | $ 0.02 | $ 0.21 | $ 0.07 |
Net income per common share - diluted | $ 0.01 | $ 0.02 | $ 0.20 | $ 0.07 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share (Textual) | ||||
Anti-dilutive including option to purchase common shares | 244,322 | 26,805,512 | 244,322 | 26,805,512 |
Concentrations of Credit Risk44
Concentrations of Credit Risk and Major Customers (Details) - Customers [Member] | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
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 | 48.50% | 61.20% | |
B [Member] | |||
Summary of major customer accounting for 10% or more of the company's revenue | |||
Concentration of credit risk, percentage | 47.50% | 24.70% | |
C [Member] | |||
Summary of major customer accounting for 10% or more of the company's revenue | |||
Concentration of credit risk, percentage | [1] | ||
[1] | Less than 10% |
Concentrations of Credit Risk45
Concentrations of Credit Risk and Major Customers (Details 1) - Suppliers [Member] | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
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 | 62.50% | 75.90% | |
C [Member] | |||
Summary of major suppliers | |||
Concentration of credit risk, percentage | 10.00% | [1] | |
[1] | Less than 10% |
Concentrations of Credit Risk46
Concentrations of Credit Risk and Major Customers (Details Textual) - Customer | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Customers [Member] | |||
Concentrations of Credit Risk and Major Customers (Textual) | |||
Concentration of credit risk, percentage | 10.00% | 10.00% | |
Suppliers [Member] | |||
Concentrations of Credit Risk and Major Customers (Textual) | |||
Concentration of credit risk, percentage | 10.00% | 10.00% | |
D Wonder Genesis Global Ltd., [Member] | |||
Concentrations of Credit Risk and Major Customers (Textual) | |||
Concentration of credit risk, percentage | 4.60% | ||
Accounts receivable [Member] | Customers [Member] | |||
Concentrations of Credit Risk and Major Customers (Textual) | |||
Concentration of credit risk, percentage | 99.90% | 99.80% | |
Accounts receivable [Member] | Yew Pharmaceutical [Member] | Customers [Member] | |||
Concentrations of Credit Risk and Major Customers (Textual) | |||
Concentration of credit risk, percentage | 56.60% | 32.40% | |
Number of largest customer | 3 | 3 | |
Accounts receivable [Member] | Yew Pharmaceutical [Member] | Customer B [Member] | |||
Concentrations of Credit Risk and Major Customers (Textual) | |||
Concentration of credit risk, percentage | 38.70% | 35.30% | |
Accounts receivable [Member] | Yew Pharmaceutical [Member] | Customer C [Member] | |||
Concentrations of Credit Risk and Major Customers (Textual) | |||
Concentration of credit risk, percentage | 32.10% | ||
Accounts Payable [Member] | Supplier I [Member] | |||
Concentrations of Credit Risk and Major Customers (Textual) | |||
Concentration of credit risk, percentage | 49.70% | ||
Accounts Payable [Member] | Supplier J [Member] | |||
Concentrations of Credit Risk and Major Customers (Textual) | |||
Concentration of credit risk, percentage | 32.00% | ||
Accounts Payable [Member] | Changzhi Du [Member] | Supplier C [Member] | |||
Concentrations of Credit Risk and Major Customers (Textual) | |||
Concentration of credit risk, percentage | 17.70% | ||
Accounts Payable [Member] | Changzhi Du [Member] | Supplier F [Member] | |||
Concentrations of Credit Risk and Major Customers (Textual) | |||
Concentration of credit risk, percentage | 24.60% | ||
Accounts Payable [Member] | Changzhi Du [Member] | Supplier G [Member] | |||
Concentrations of Credit Risk and Major Customers (Textual) | |||
Concentration of credit risk, percentage | 24.10% | ||
Accounts Payable [Member] | Changzhi Du [Member] | Supplier H [Member] | |||
Concentrations of Credit Risk and Major Customers (Textual) | |||
Concentration of credit risk, percentage | 15.80% |
Related Party Transactions (Det
Related Party Transactions (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Heilongjiang Zishan Technology Stock Co., Ltd. ("ZTC") [Member] | |
Schedule of company's transactions with the related parties | |
Ownership, description | 51% owned by Heilongjiang Hongdoushan Ecology Forest Stock 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] | |
Schedule of 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] | |
Schedule of company's transactions with the related parties | |
Ownership, description | 60% owned by Heilongjiang Zishan Technology Co., Ltd., 20% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 20% owned by Mr. Wang. |
Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd. (''HEFS'') [Member] | |
Schedule of company's transactions with the related parties | |
Ownership, description | 63% owned by Mr. Wang, 34% owned by Madame Qi, and 3% owned by third parties. |
Hongdoushan Bio-Pharmaceutical Co., Ltd. (''HBP'') [Member] | |
Schedule of 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] | |
Schedule of 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] | |
Schedule of 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] | |
Schedule of company's transactions with the related parties | |
Ownership, description | Legal person of Xinlin. |
Jinguo Wang [Member] | |
Schedule of company's transactions with the related parties | |
Ownership, description | Management of HDS. |
Anyangquanfeng Bio Science Inc. [Member] | |
Schedule of company's transactions with the related parties | |
Ownership, description | 84.72% owned by Mr. Wang. |
Heilongjiang Yew Medicine Research Institute affiliated clinics [Member] | |
Schedule of company's transactions with the related parties | |
Ownership, description | Zhiguo Wang is the Company's legal person. |
Wonder Genesis Global Ltd. [Member] | |
Schedule of company's transactions with the related parties | |
Ownership, description | Changzhi Du is the Company's director. |
Related Party Transactions (D48
Related Party Transactions (Details 1) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Related Party Transactions [Abstract] | ||
Land use rights and yew forest assets, net | $ 7,044,354 | $ 3,210,193 |
Land use rights and yew forest assets - related parties, net | 2,779,386 | 1,348,041 |
Total | $ 9,823,740 | $ 4,558,234 |
Related Party Transactions (D49
Related Party Transactions (Details 2) - A'cheng Lease [Member] | 1 Months Ended |
Mar. 20, 2002CNY (¥) | |
March 2002 to February 2012 [Member] | |
Operating Leased Assets [Line Items] | |
Annual lease amount | ¥ 25,000 |
Payment due date | Before December 2012 |
March 2012 to February 2017 [Member] | |
Operating Leased Assets [Line Items] | |
Annual lease amount | ¥ 25,000 |
Payment due date | Before December 2017 |
March 2017 to March 2025 [Member] | |
Operating Leased Assets [Line Items] | |
Annual lease amount | ¥ 25,000 |
Payment due date | Before December 2025 |
Related Party Transactions (D50
Related Party Transactions (Details Textual) | May 15, 2015USD ($) | Jan. 01, 2015 | Jul. 01, 2012USD ($)m² | Jul. 01, 2012CNY (¥)m² | Jan. 09, 2010USD ($) | Jan. 09, 2010CNY (¥) | Jan. 01, 2010USD ($) | Jan. 01, 2010CNY (¥) | Mar. 25, 2005USD ($)a | Mar. 25, 2005CNY (¥)a | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 13, 2017 | Dec. 31, 2016USD ($) | Nov. 10, 2016 |
Related Party Transactions (Textual) | |||||||||||||||||
Accounts receivable - related parties | $ 18,499,561 | $ 18,499,561 | $ 6,941,931 | ||||||||||||||
Accounts payable | 49,198 | 49,198 | 638,318 | ||||||||||||||
Unpaid rent | 3,529 | 3,529 | 1,762 | ||||||||||||||
Debt interest rate | 5.873% | 5.873% | |||||||||||||||
Repayment of debt | (4,997,764) | $ (1,530,105) | |||||||||||||||
Cost of revenues to the thirdy party | 10,814,999 | $ 13,248,067 | 23,185,196 | 34,885,324 | |||||||||||||
Revenues from related party | 4,292,619 | 6,873,988 | $ 18,363,666 | 24,063,798 | |||||||||||||
HDS [Member] | |||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||
Agreement expiration date | Mar. 19, 2025 | ||||||||||||||||
Agreement expiration period | 23 years | ||||||||||||||||
Prepaid expenses - related party | 310,334 | 310,334 | |||||||||||||||
Agreement of Seedling Land with ZTC [Member] | |||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||
Agreement expiration date | Mar. 24, 2035 | Mar. 24, 2035 | |||||||||||||||
Agreement expiration period | 30 years | 30 years | |||||||||||||||
Leased area of land (Metric acre "Mu") | a | 361 | 361 | |||||||||||||||
Annual payments under operating lease | $ 24,000 | ¥ 162,450 | |||||||||||||||
Operating leases, rent expense | $ 17,902 | 18,518 | |||||||||||||||
Office Lease [Member] | |||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||
Agreement expiration date | Dec. 31, 2025 | Dec. 31, 2025 | |||||||||||||||
Agreement expiration period | 15 years | 15 years | |||||||||||||||
Annual payments under operating lease | $ 2,000 | ¥ 15,000 | |||||||||||||||
Operating leases, rent expense | 1,653 | 1,710 | |||||||||||||||
JSJ Lease [Member] | |||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||
Agreement expiration date | Jun. 30, 2015 | Jun. 30, 2015 | |||||||||||||||
Agreement expiration period | 3 years | 3 years | |||||||||||||||
Leased Area | m² | 30 | 30 | |||||||||||||||
Annual payments under operating lease | $ 1,500 | ¥ 10,000 | |||||||||||||||
Operating leases, rent expense | 1,102 | 1,140 | |||||||||||||||
Unsecured loan | 4,884 | 4,884 | |||||||||||||||
Unpaid rent | 3,600 | ||||||||||||||||
A'cheng Lease [Member] | |||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||
Operating leases, rent expense | 2,635 | 2,726 | |||||||||||||||
Unpaid rent | 939 | 939 | 5,401 | ||||||||||||||
Yew Pharmaceutical [Member] | |||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||
Accounts receivable - related parties | 17,116,166 | 17,116,166 | 6,941,931 | ||||||||||||||
Amount payment to related party | 14,934,540 | 29,330,000 | |||||||||||||||
Amount includes cost of revenue | 17,804,944 | 14,231,044 | |||||||||||||||
Cost of revenues related party | 23,185,196 | 34,885,324 | |||||||||||||||
Yew Pharmaceutical [Member] | Harbin Yew Food Co., Ltd [Member] | |||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||
Accounts payable | 49,198 | $ 3,660 | 49,198 | 3,660 | 47,149 | ||||||||||||
Unsecured loan | 39,085 | 39,085 | 37,457 | ||||||||||||||
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 | 17,011,005 | 24,063,798 | |||||||||||||||
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 | Nov. 15, 2015 | ||||||||||||||||
Total borrowings including the interest amount | 493,095 | 493,095 | 598,970 | ||||||||||||||
Repayment of debt | 105,875 | 49,030 | |||||||||||||||
ZTC [Member] | |||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||
Prepaid expenses - related party | 61,030 | 61,030 | 76,035 | ||||||||||||||
Zhiguo Wang [Member] | |||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||
Due to other shareholders | 41,051 | 41,051 | 178,228 | ||||||||||||||
HBP [Member] | |||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||
Lease agreement, description | Leases a warehouse, with an area of 225 square meters, and a workshop, with an area of 50 square meters, both of which are located at No.1 Zisan Road, Shangzhi economic development district, Shangzhi City, Heilongjiang Province, to HYF in exchange for no consideration for the period from May 1, 2015 to December 31, 2020. | ||||||||||||||||
HBP [Member] | Harbin Yew Food Co., Ltd [Member] | |||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||
Amount payment to related party | 34,341 | 27,214 | |||||||||||||||
Unsecured loan | 95,827 | 95,827 | 58,178 | ||||||||||||||
Changzhi Du [Member] | HDS [Member] | |||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||
Amount payment to related party | 2,395,051 | 2,475,283 | |||||||||||||||
Accounts payable | 0 | 0 | 591,169 | ||||||||||||||
Wonder Genesis Global Ltd [Member] | |||||||||||||||||
Related Party Transactions (Textual) | |||||||||||||||||
Sales | 1,383,395 | $ 0 | |||||||||||||||
Accounts receivable - related parties | $ 1,352,660 | $ 1,352,660 | $ 0 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Summary of reportable business segments | |||||
Revenues: | $ 11,564,915 | $ 14,667,099 | $ 35,044,755 | $ 39,347,578 | |
Cost of revenues: | 10,814,999 | 13,248,067 | 23,185,196 | 34,885,324 | |
Depreciation and amortization: | 181,206 | 219,059 | |||
Net income (loss): | 614,407 | $ 1,080,538 | 11,039,824 | 3,437,145 | |
Segment reporting information, Additional information | |||||
Identifiable long-lived assets, net | 10,407,282 | 10,407,282 | $ 5,250,350 | ||
TCM raw materials [Member] | |||||
Summary of reportable business segments | |||||
Revenues: | 17,011,006 | 24,063,798 | |||
Cost of revenues: | 5,031,434 | 19,820,917 | |||
Depreciation and amortization: | 130,262 | 83,739 | |||
Net income (loss): | 11,834,671 | 4,242,881 | |||
Segment reporting information, Additional information | |||||
Identifiable long-lived assets, net | 8,523,903 | 8,523,903 | 4,558,234 | ||
Yew trees [Member] | |||||
Summary of reportable business segments | |||||
Revenues: | 9,906 | 23,246 | |||
Cost of revenues: | 7,897 | 19,458 | |||
Depreciation and amortization: | 31,778 | 93,807 | |||
Net income (loss): | 1,924 | 3,788 | |||
Segment reporting information, Additional information | |||||
Identifiable long-lived assets, net | 975,612 | 975,612 | 436,948 | ||
Handicrafts [Member] | |||||
Summary of reportable business segments | |||||
Revenues: | 5,284 | 97,560 | |||
Cost of revenues: | 4,663 | 91,145 | |||
Depreciation and amortization: | 679 | 19,766 | |||
Net income (loss): | 576 | 6,415 | |||
Segment reporting information, Additional information | |||||
Identifiable long-lived assets, net | 44,212 | 44,212 | 22,218 | ||
Others [Member] | |||||
Summary of reportable business segments | |||||
Revenues: | 18,018,559 | 15,162,974 | |||
Cost of revenues: | 18,141,202 | 14,953,804 | |||
Depreciation and amortization: | 18,487 | 21,747 | |||
Net income (loss): | (797,347) | $ (815,939) | |||
Segment reporting information, Additional information | |||||
Identifiable long-lived assets, net | $ 863,555 | $ 863,555 | $ 232,950 |
Segment Information (Details Te
Segment Information (Details Textual) - Segments | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Information (Textual) | ||
Number of business segments | 4 | 4 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | May 01, 2017USD ($) | Feb. 01, 2015USD ($) | Nov. 25, 2010Seedlings | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Commitments and Contingencies (Textual) | |||||
Term of lease | 3 years | ||||
Lease expiration date | Jan. 31, 2018 | ||||
Rent expense related to U.S. principal office lease amount | $ 3,039 | $ 30,348 | $ 30,352 | ||
Percentage of HDS's publicly-published wholesale prices | 90.00% | ||||
Number of yew seedlings purchase annually by Xinlin | Seedlings | 10,000 | ||||
Payments of lease each month of second year | 3,150 | ||||
Payments of lease each month of third year | $ 3,261 | ||||
Lease for product exhibition and promotion related rent expense | $ 2,800 | $ 14,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | Nov. 02, 2017 | Nov. 30, 2017 | Oct. 31, 2017 |
Subsequent Events (Textual) | |||
Reverse split, description | Reverse split of its common stock between1-for-4 and 1-for-8 by June 30, 2018. | ||
China Everbright Bank [Member] | Credit agreement [Member] | |||
Subsequent Events (Textual) | |||
Additional short-term loans | $ 1,220,000 | ||
Interest rates | 4.30% | ||
Repaid loans amount | $ 1,220,000 | $ 1,220,000 |