Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 22, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Yew Bio-Pharm Group, Inc. | |
Entity Central Index Key | 0001548240 | |
Trading Symbol | YEWB | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 51,700,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash | $ 221,728 | $ 521,670 |
Accounts receivable | 17,167 | |
Accounts receivable - related parties, net of allowance for doubtful account $1,178,526 and $837,929 | 8,297,428 | 4,579,666 |
Inventories, net | 6,270,352 | 6,204,954 |
Prepaid expenses - related parties | 25,759 | 32,318 |
Prepaid expenses and other assets | 71,212 | 47,530 |
VAT recoverables | 1,007,232 | 985,831 |
Total Current Assets | 15,893,711 | 12,389,136 |
LONG-TERM ASSETS: | ||
Long-term inventories, net | 1,849,075 | 1,824,128 |
Property and equipment, net | 515,844 | 518,650 |
Intangible assets | 45,991 | 45,359 |
Land use rights and yew forest assets, net | 33,125,420 | 34,914,793 |
Advance to suppliers for yew forest assets | 159,393 | |
Advance to suppliers - related parties for yew forest assets | 1,517,903 | |
Operating lease right-of-use assets | 349,794 | |
Total Long-term Assets | 37,563,420 | 37,302,930 |
Total Assets | 53,457,131 | 49,692,066 |
CURRENT LIABILITIES: | ||
Accounts payable | 118,842 | 268,359 |
Advance from customers | 149 | 145 |
Advance from customers - related party | 2,371,697 | 21,295 |
Accrued expenses and other payables | 390,837 | 244,043 |
Taxes payable | 87,743 | 189,617 |
Due to related parties | 583,566 | 580,016 |
Short-term borrowings | 5,520,137 | 5,758,517 |
Current maturities of operating lease liabilities | 52,681 | |
Total Current Liabilities | 9,125,652 | 7,061,992 |
NONCURRENT LIABILITIES: | ||
Taxes payable | 1,202,741 | 1,202,741 |
Deferred income | 348,676 | 340,294 |
Operating lease liabilities | 291,097 | |
Total Noncurrent Liabilities | 1,842,514 | 1,543,035 |
Total Liabilities | 10,968,166 | 8,605,027 |
SHAREHOLDERS' EQUITY: | ||
Common Stock ($0.001 par value; 140,000,000 shares authorized; 51,700,000 and 52,075,000 shares issued and outstanding at March 31, 2019 and December 31, 2018) | 51,700 | 52,075 |
Additional paid-in capital | 9,953,869 | 9,953,494 |
Retained earnings | 29,342,259 | 28,965,217 |
Statutory reserves | 3,762,288 | 3,762,288 |
Accumulated other comprehensive income - foreign currency translation adjustment | (621,151) | (1,646,035) |
Total Shareholders' Equity | 42,488,965 | 41,087,039 |
Total Liabilities and Shareholders' Equity | $ 53,457,131 | $ 49,692,066 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Related parties, net of allowance for doubtful account | $ 1,178,526 | $ 837,929 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares issued | 51,700,000 | 52,075,000 |
Common stock, shares outstanding | 51,700,000 | 52,075,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
REVENUES: | ||
Revenues | $ 33,481 | $ 32,258 |
Revenues - related parties | 11,480,523 | 2,998,880 |
Total Revenues | 11,514,004 | 3,031,138 |
COST OF REVENUES: | ||
Cost of revenues | 26,668 | 12,906 |
Cost of revenues - related parties | 10,328,807 | 2,538,937 |
Total Cost of Revenues | 10,355,475 | 2,551,843 |
GROSS PROFIT | 1,158,529 | 479,295 |
OPERATING EXPENSES: | ||
Selling, General and administrative expense | 294,971 | 257,379 |
Bad debt expense | 318,284 | |
Stock based compensation | 2,493 | |
Total Operating Expenses | 613,255 | 259,872 |
INCOME FROM OPERATIONS | 545,274 | 219,423 |
OTHER INCOME (EXPENSES): | ||
Interest expense | (88,709) | (68,033) |
Other income | 43,017 | 87,303 |
Exchange loss | (100,934) | (89,687) |
Total Other Expenses | (146,626) | (70,417) |
INCOME BEFORE PROVISION FOR INCOME TAXES | 398,648 | 149,006 |
PROVISION FOR INCOME TAXES | (21,606) | |
NET INCOME | 377,042 | 149,006 |
COMPREHENSIVE INCOME: | ||
NET INCOME | 377,042 | 149,006 |
OTHER COMPREHENSIVE INCOME: | ||
Foreign currency translation adjustment | 1,024,884 | 1,556,804 |
COMPREHENSIVE INCOME | $ 1,401,926 | $ 1,705,810 |
NET INCOME PER COMMON SHARE: | ||
Basic | $ 0.01 | $ 0 |
Diluted | $ 0.01 | $ 0 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||
Basic | 52,012,729 | 51,875,000 |
Diluted | 52,116,189 | 60,084,530 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 377,042 | $ 149,006 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Bad debt expense | 318,284 | |
Depreciation | 15,216 | 15,552 |
Amortization of land use rights and yew forest assets | 2,665,955 | 65,810 |
Stock-based compensation | 2,493 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 17,167 | 4,484,508 |
Accounts receivable - related parties | (3,904,383) | 6,806,716 |
Prepaid expenses and other current assets | (22,757) | (8,169) |
Prepaid expenses - related parties | 7,317 | 6,782 |
Inventories, net | 71,192 | (19,387) |
VAT recoverables | 2,866 | (229,692) |
Accounts payable | (133,408) | 20,529 |
Accounts payable - related parties | (366,137) | |
Accrued expenses and other payables | 117,745 | 33,020 |
Advance from customers-related party | 2,337,581 | |
Due to related parties | 815 | (38,950) |
Taxes payable | (101,988) | (61) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,768,644 | 10,922,020 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Prepayments made for purchase of yew forest assets | (1,668,518) | (2,029,387) |
Prepayments made to related parties for purchase of yew forest assets | (6,212,755) | |
Purchase of land use rights and yew forest assets | (30,465) | (3,471,401) |
Purchase of intangible assets | (632) | |
NET CASH USED IN INVESTING ACTIVITIES | (1,699,615) | (11,713,543) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term borrowings | 1,290,000 | 1,520,000 |
Repayment of short-term borrowings | (1,600,000) | (1,320,000) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (310,000) | 200,000 |
EFFECT OF EXCHANGE RATE ON CASH | (58,971) | (245,257) |
NET INCREASE (DECREASE) IN CASH | (299,942) | (836,780) |
CASH - Beginning of period | 521,670 | 859,830 |
CASH - End of period | 221,728 | 23,050 |
Cash paid for: | ||
Interest | 80,688 | 50,809 |
Income taxes | 114,547 | |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Operating expense paid by related party | $ 3,146 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock, Par Value $0.001 | Additional paid-in Capital | Retained Earnings | Statutory Reserve | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2017 | $ 51,875 | $ 10,363,412 | $ 30,287,658 | $ 3,762,288 | $ 706,628 | $ 45,171,861 |
Balance, shares at Dec. 31, 2017 | 51,875,000 | |||||
Stock-based compensation | 2,493 | 2,493 | ||||
Net income | 149,006 | 149,006 | ||||
Foreign currency translation adjustment | 1,556,804 | 1,556,804 | ||||
Balance at Mar. 31, 2018 | $ 51,875 | 10,365,905 | 30,436,664 | 3,762,288 | 2,263,432 | 46,880,164 |
Balance, shares at Mar. 31, 2018 | 51,875,000 | |||||
Balance at Dec. 31, 2018 | $ 52,075 | 9,953,494 | 28,965,217 | 3,762,288 | (1,646,035) | 41,087,039 |
Balance, shares at Dec. 31, 2018 | 52,075,000 | |||||
Cancellation of common stocks | $ (375) | 375 | ||||
Cancellation of common stocks, shares | (375,000) | |||||
Net income | 377,042 | 377,042 | ||||
Foreign currency translation adjustment | 1,024,884 | 1,024,884 | ||||
Balance at Mar. 31, 2019 | $ 51,700 | $ 9,953,869 | $ 29,342,259 | $ 3,762,288 | $ (621,151) | $ 42,488,965 |
Balance, shares at Mar. 31, 2019 | 51,700,000 |
Organization and Principal Acti
Organization and Principal Activities | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES The accompanying unaudited interim 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, 2018 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 interim 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, 2018. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of March 31, 2019, and the results of operations and cash flows for the three-month periods ended March 31, 2019 and 2018, have been presented. 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 RMB100,000 100%(1) Sales of wood ear mushroom drink MC Commerce Holding Inc.("MC") State of California, United State June 8, 2016 100%(2) Sales of yew oil candles and yew oil soaps (1) Wholly-owned subsidiary of HDS (2) 51% owned by YBP and 49% owned by HDS |
Principles of Consolidation
Principles of Consolidation | 3 Months Ended |
Mar. 31, 2019 | |
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's 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 March 31, 2019 and December 31, 2018, 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: March 31, 2019 December 31, 2018 Assets Cash $ 213,413 $ 478,293 Accounts receivable - related parties, net of allowance for doubtful account $1,178,526 and $837,929 8,297,428 4,579,666 Inventories (current and long-term), net 6,687,361 6,567,144 Prepaid expenses and other assets 49,902 34,492 Advance to suppliers 159,393 - Advance to suppliers - related parties 1,517,903 - Prepaid expenses - related parties 25,759 32,318 Property and equipment, net 504,848 506,949 Long-term investment in MC 2,898,475 2,449,757 Land use rights and yew forest assets, net 33,125,420 34,914,793 Operating lease right of use 270,848 VAT recoverables 1,007,232 985,831 Total assets of VIE and its subsidiary $ 54,757,982 $ 50,549,243 Liabilities Accrued expenses and other payables $ 366,959 $ 237,114 Accounts payable 43,929 10,410 Advance from customer 149 145 Advance from customer-related party 2,371,697 21,295 Taxes payable 21,720 - Short-term borrowings 5,520,137 5,758,517 Operating lease liability- current 10,483 - Operating lease liability- noncurrent 254,348 - Deferred income 348,676 340,294 Due to related parties and VIE holding companies 675,166 658,501 Total liabilities of VIE and its subsidiary $ 9,613,264 $ 7,026,276 Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued new leasing guidance ("Topic 842") that replaced the existing lease guidance ("Topic 840"). Topic 842 established a right-of-use ("ROU") model that requires a lessee to record a ROU asset and lease liability on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. This guidance also expanded the requirements for lessees to record leases embedded in other arrangements and the required quantitative and qualitative disclosures surrounding leases. The Company adopted Topic 842 on its effective date of January 1, 2019 using a modified retrospective transition approach; as such, Topic 842 will not be applied to periods prior to adoption and the adoption had no impact on the Company's previously reported results. The Company elected the package of practical expedients permitted under the transition guidance within Topic 842, which allowed the Company to carry forward its identification of contracts that are or contain leases, its historical lease classification and its accounting for initial direct costs for existing leases. The impact of adopting Topic 842 was not material to the Company's result of operations or cash flows for the three months ended March 31, 2019. The Company recognized operating lease liabilities of $373,517 upon adoption, with corresponding ROU assets on its balance sheet. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking "expected loss" model, rather than the "incurred loss" model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. ASU 2016-13 is effective for public entities for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. The Company is evaluating the impact of the adoption of ASU 2016-13 on its financial position and results of operations. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
REVENUE RECOGNITION | NOTE 3 - REVENUE RECOGNITION The Company accounts for revenue arising from contracts and customers in accordance with Accounting Standards Update (ASU or Update) No. 2014-09, Revenue from Contracts with Customers ("ASC 606") Under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that Company will collect the consideration it is entitled to in exchange for the goods it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods promised within each contract and determines those that are performance obligations and assesses whether each promised good is distinct. The Company then recognizes as revenue the amount of the transaction price, which is allocated to the respective performance obligation, when the performance obligation is satisfied. Generally, the Company's performance obligations are satisfied when the customers take possession of the products, which normally occurs upon shipment or delivery depending on the terms of the contracts. In general, the Company's products within its segments are aligned according to the nature and economic characteristics of its products and provide meaningful disaggregation of each business segment's results of operations. Disaggregation of revenue by business segment are included in Note 12 - SEGMENT INFORMATION. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 - INVENTORIES Inventories consisted of raw materials, work-in-progress, finished goods including handicrafts, yew essential oil soap, complex cuspidate extract, composite northeast yew extract, yew candles and pine needle extracts, yew seedlings and other trees, which consist of larix, spruce and poplar trees. The Company classifies its inventories based on its historical and anticipated levels of sales; any inventory in excess of its normal operating cycle of one year is classified as long-term on its consolidated balance sheets. As of March 31, 2019 and December 31, 2018, inventories consisted of the following: March 31, 2019 December 31, 2018 Current portion Long-term portion Total Current portion Long-term portion Total Raw materials $ 17,476 $ 95,087 $ 112,563 $ 40,240 $ 92,801 $ 133,041 Finished goods 6,271,920 2,820,150 9,092,070 6,194,707 2,794,335 8,989,042 Yew seedlings 6,626 16,418 23,044 - 16,023 16,023 Total 6,296,022 2,931,655 9,227,677 6,234,947 2,903,159 9,138,106 Inventory write-down (25,670 ) (1,082,580 ) (1,108,250 ) (29,993 ) (1,079,031 ) (1,109,024 ) Inventories, net $ 6,270,352 $ 1,849,075 $ 8,119,427 $ 6,204,954 $ 1,824,128 $ 8,029,082 Inventories as of March 31, 2019 and December 31, 2018 consisted of the inventory purchased from related parties are as follows: March 31, December 31, 2019 2018 Inventories, net $ 129,725 $ 182,905 Inventories - related parties, net 6,140,627 6,022,049 Total $ 6,270,352 $ 6,204,954 March 31, December 31, 2019 2018 Long-term inventories, net $ 919,304 $ 894,357 Long-term inventories - related parties, net 929,771 929,771 Total $ 1,849,075 $ 1,824,128 |
Taxes
Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 5 - TAXES (a) Federal Income Tax and Enterprise Income Taxes The table below summarizes the difference between the U.S. statutory federal tax rate and the Company's effective tax rate for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, 2019 2018 U.S. federal income tax rate 21.00 % 21.00 % Tax rate difference 5.62 % 2.10 % Loss not subject income tax 8.71 % - Foreign income not recognized in the U.S. - (21.00 )% PRC EIT rate - 25.00 % PRC tax exemption and reduction (40.75 )% (28.00 )% Valuation allowance - 0.90 % Effective tax rate (5.42 )% - The U.S. Tax Cuts and Jobs Act (the "Tax Act") was enacted on December 22, 2017. The Tax Act among other changes, reduces the U.S. federal corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a mandatory one-time tax on accumulated earnings of foreign subsidiaries, introducing new tax regimes, and changing how foreign earnings are subject to U.S. tax. The Company has determined the implication of the tax rate reduction does not have any impact on the consolidated financial statements. One-time transition tax is based on the Company's total post-1986 earnings and profits ("E&P") that it previously deferred from U.S. income taxes. The Company completed its calculation and recorded $1,431,835 of the transition tax on undistributed earnings of non-U.S. subsidiaries during the year ended December 31, 2018. As of March 31, 2019 and December 31, 2018, the Company had current income tax payable of $Nil and $114,547 and noncurrent income tax payable of $1,202,741 and $1,202,741. In addition, the 2017 Tax Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income ("GILTI")) earned by controlled foreign corporations ("CFCs") must be included currently in the gross income of the CFCs' U.S. shareholder income. GILTI is the excess of the shareholder's net CFC tested income over the net deemed tangible income return, which is currently defined as the excess of (1) 10 percent of the aggregate of the U.S. shareholder's pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. For the three months ended March 31, 2019 and 2018, the GILTI tax expense was nil. As of March 31, 2019 and December 31, 2018, the Company had GILTI tax payable of $60,996. |
Short-Term Borrowings
Short-Term Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | NOTE 6 - SHORT-TERM BORROWINGS 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 $1,471,000) on June 13, 2017, 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 loan. HDS paid off the loan in full on June 11, 2018. On November 10, 2016, HDS 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. HDS paid off the loan in full on November 9, 2017. On November 15, 2017, HDS obtained another loan in the amount of RMB10,000,000 (approximately $1,509,000), payable on October 20, 2018. The loan carries an interest rate of 4.100% per annum and is payable at maturity. 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, Yicheng Wang, and Yuqi Mao, the spouse of Yicheng Wang provided guarantees to the loan. HDS paid off the loan in full as the loan expired. On December 22, 2016, HDS entered into a credit agreement with China Everbright Bank ("CEB") which agreed to provide credit line of RMB20,000,000 (approximately $2,880,000) to the Company for the period of three years. These loans carry interest rates ranging from 4.30% to 4.80% per annum and the interests are payable when the loans are due. 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. During the three months ended March 31, 2019 and 2018, the Company obtained short-term loans from CEB in the total amount of $1,290,000 and $1,520,000, respectively, under this credit agreement and paid off in the total amount of $1,600,000 and $1,320,000, respectively. As of March 31, 2019 and December 31, 2018, the balance of loans borrowed from CEB was $2,540,000 and $2,851,000, respectively. On August 6, 2018, HDS entered into a loan agreement with Bank of Yingkou Harbin Branch ("Yingkou Bank"), pursuant to which HDS obtained a bank loan in the amount of RMB15,000,000 (approximately $2,235,000 at March 31, 2019), payable on August 5, 2019. The loan carries an interest rate of 5.4375% per annum and is payable monthly. 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 Yingkou Bank to secure the loan. In addition, HEFS, HBP, Yew Pharmaceutical, and ZTC provided guarantees to the loan. On August 27, 2018, HDS entered into a loan agreement with Yingkou Bank, pursuant to which HDS obtained a bank loan in the amount of RMB5,000,000 (approximately $745,000 at March 31, 2019), payable to on August 26, 2019. The loan carries an interest rate of 5.4375% per annum and is payable monthly. ZTC, a related party controlled by Zhiguo Wang and his wife Madame Qi, collateralized its buildings and land use right with Yingkou Bank to secure the loan. In addition, HEFS, HBP, Yew Pharmaceutical, and ZTC provided guarantees to the loan. During the three months ended March 31, 2019 and 2018, interest expense was $88,709 and $68,033, respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 7 - STOCKHOLDERS' EQUITY On February 28, 2019, the Company entered into an agreement with Chineseinvestor.com, pursuant to which both parties reached an agreement to cancel to issue the common shares of 375,000 to Chineseinvestor. Stock option activities for the three months ended March 31, 2019 and 2018 were summarized in the following table. Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Number of Stock Options Weighted Average Exercise Price Number of Stock Options Weighted Average Exercise Price Balance at beginning of period 7,738,737 0.22 24,872,212 0.22 Issued - - - - Exercised - - - - Forfeited - - - - Balance at end of period 7,738,737 0.22 24,872,212 0.22 Option exercisable at end of period 7,738,737 0.22 24,772,212 0.22 The following table summarizes the shares of the Company's common stock issuable upon exercise of options outstanding at March 31, 2019: Stock Options Outstanding Stock Options Exercisable Range of Exercise Price Number Outstanding at March 31, 2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable at March 31, 2018 Weighted Average Exercise Price $ 0.22-0.25 7,738,737 0.75 $ 0.22 7,738,737 $ 0.22 The Company's outstanding stock options and exercisable stock options had intrinsic value in the amount of $Nil, based upon the Company's closing stock price of $0.156 as of March 31, 2019. Stock option expense recognized during the three months ended March 31, 2019 and 2018 amounted to $Nil and $2,493, respectively. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 8 - 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 months ended March 31, 2019 and 2018: For the Three Months Ended March 31, 2019 2018 Net income available to common stockholders for basic and diluted net income per share of common stock $ 377,042 $ 149,006 Weighted average common stock outstanding - basic 52,012,729 51,875,000 Effect of dilutive securities: Stock options issued to directors/officers/employees 103,460 8,209,530 Weighted average common stock outstanding - diluted 52,116,189 60,084,530 Net income per common share - basic $ 0.01 $ 0.00 Net income per common share - diluted $ 0.01 $ 0.00 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. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 9 - Leases The Company leases office space from third parties and related parties. Leases is classified as operating at inception of the lease. Operating leases result in the recognition of ROU assets and lease liabilities on the balance sheet. ROU assets represent the Company's right to use the leased asset for the lease term and lease liabilities represent the obligation to make lease payments. The liability is calculated as the present value of the remaining minimum rental payments for existing operating leases using either the rate implicit in the lease or, if none exists, the Company's incremental borrowing rate. The Company uses incremental borrowing rate at 6.44% annum. Lease expense for these leases is recognized on a straight-line basis over the lease term. The components of lease expense consist of the following: Classification Three Months Ended Operating lease cost Selling, general and administrative expense $ 29,514 Net lease cost $ 29,514 Balance sheet information related to leases consists of the following: Classification March 31, 2019 Assets Operating lease ROU assets Right-of-use assets $ 349,794 Total leased assets $ 349,794 Liabilities Current Operating Current maturities of operating lease liabilities $ 52,681 Non-current Operating Operating lease liabilities 291,097 Total lease liabilities $ 343,778 Weighted average remaining lease term Operating leases 8.7 years Weighted average discount rate Operating leases 6.44 % Cash flow information related to leases consists of the following: Three Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 35,530 The minimum future lease payments as of March 31, 2019 are as follows: Years Ending December 31, Operating Leases 2019 $ 38,058 2020 73,589 2021 31,602 2022 26,303 2023 26,303 After 2024 317,117 Total lease payments 512,972 Less: Interest (169,194 ) Present value of lease liabilities $ 343,778 |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Major Customers | 3 Months Ended |
Mar. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | NOTE 10 - CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS Customers For the three months ended March 31, 2019 and 2018, customers accounting for 10% or more of the Company's revenue were as follows: For the Three Months Ended Customer 2019 2018 A (Yew Pharmaceutical, a related party) 36 % 56 % C (Wonder Genesis Global Ltd., a related party) - % 43 % D (HongKong YIDA Commerce Co., Limited, a related party) 64 % * % * Less than 10% Accounts receivable as of Customer March 31, 2019 December 31, 2018 A (Yew Pharmaceutical, a related party) - % 31 % C (Wonder Genesis Global Ltd., a related party) - % - % D (HongKong YIDA Commerce Co., Limited, a related party) 81 % 24 % * Less than 10% Suppliers For the three months ended March 31, 2019 and 2018, suppliers accounting for 10% or more of the Company's purchase were as follows: For the Three Months Supplier 2019 2018 A (Yew Pharmaceutical, a related party) 100 % 43 % L * % 11 % M (Jinguo Wang, a related party) * % 15 % No significant accounts payable as of March 31, 2019 and December 31, 2018. At March 31, 2019 and December 31, 2018, the Company's cash balances by geographic area were as follows: March 31, 2019 December 31, 2018 Country United States $ 5,269 $ 40,405 China 216,459 481,265 Total Cash $ 221,728 $ 521,670 In China, a depositor has up to RMB500,000 insured by the People's Bank of China Financial Stability Bureau ("FSD"). In the United States, the standard insurance amount is $250,000 per depositor in a bank insured by the Federal Deposit Insurance Corporation ("FDIC"). As of March 31, 2019 and December 31, 2018, approximately $100,000 and $200,000 of the Company's cash held by financial institutions, was insured, and the remaining balance of approximately $122,000 and $330,000 was not insured, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 11 - RELATED PARTY TRANSACTIONS In addition to several of the Company's officers and directors, the Company conducted transactions with the following related parties: Company Nature of Relationship Heilongjiang Zishan Technology Co., Ltd. ("ZTC") 51% owned by Heilongjiang Hongdoushan Ecology Forest Co., Ltd., 34% owned by Zhiguo Wang, Chairman and Chief Executive Officer, 11% owned by Guifang Qi, the wife of Mr. Wang and director of the Company, and 4% owned by third parties. Heilongjiang Yew Pharmaceutical Co., Ltd. ("Yew Pharmaceutical") 95% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 5% owned by Madame Qi. Shanghai Kairun Bio-Pharmaceutical Co., Ltd. ("Kairun") 60% owned by Heilongjiang Zishan Technology Co., Ltd., 20% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 20% owned by Mr. Wang. Heilongjiang Hongdoushan Ecology Forest Co., Ltd. ("HEFS") 63% owned by Mr. Wang, 34% owned by Madame Qi, and 3% owned by third parties. Hongdoushan Bio-Pharmaceutical Co., Ltd. ("HBP") 30% owned by Mr. Wang, 19% owned by Madame Qi and 51% owned by HEFS Heilongjiang Pingshan Hongdoushan Development Co., Ltd. ("HDS Development") 80% owned by HEFS and 20% owned by Kairun Wuchang City Xinlin Forestry Co., Ltd. (Xinlin) 98% owned by ZTC and 2% owned by HEFS effective March 21, 2016 HongKong YIDA Commerce Co., Limited("YIDA") Significantly influenced by the Company LIFEFORFUN LIMITED Significantly influenced by the Company Changzhi Du Legal person of Xinlin before March 1, 2017 Jinguo Wang Management of HDS, legal person of Xinlin before February 9, 2018, and director of ZTC effective February 1, 2018. Chunping Wang Employee of the Company Wonder Genesis Global Ltd. Jinguo Wang is the Company's director. Ai Zhong Jing Mao Ltd. Significantly influenced by the Company 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 soaps, complex taxus cuspidate extract, composite northeast yew extract and pine needle extracts purchase agreements with Yew Pharmaceuticals, pursuant to which the Company purchases yew candles and pine needle extracts as finished goods and then sells to third party and related party. For the three months ended March 31, 2019 and 2018, total revenues from Yew Pharmaceutical under the above agreement amounted to $4,163,435 and $1,695,398, respectively. At March 31, 2019 and December 31, 2018, the Company had $Nil and $1,408,321 accounts receivable from Yew Pharmaceutical, respectively. At March 31, 2019 and December 31, 2018, the Company had $2,352,380 and $Nil advance from Yew Pharmaceutical, respectively. For the three months ended March 31, 2019 and 2018, the total purchase of yew candles and mixed essential oil from Yew Pharmaceutical amounted to approximately $8,460,000 and $2,589,000, respectively. Transactions with HBP For the three months ended March 31, 2019 and 2018, HBP paid off operation expense on behalf of HYF in the amount of $Nil and $3,146, respectively. As of March 31, 2019 and December 31, 2018, HYF had due to HBP in the amount of $105,748 and $102,770, respectively, which was included in due to related parties in the accompanying consolidated balance sheets. Transactions with HDS Development As of March 31, 2019 and December 31, 2018, the Company had $782,286 and $981,618 accounts receivable, which were net of allowance for doubtful account $782,286 and $763,481 from HDS Development, respectively. Transactions with ZTC At March 31, 2019 and December 31, 2018, prepayments to ZTC for purchase of yew forest assets amounted to $1,162,254 and $Nil, respectively, which was included in advance to suppliers-related parties in the accompanying consolidated balance sheets. Transactions with YIDA For the three months ended March 31, 2019 and 2018, total revenues from YIDA amounted to $7,314,941 and $Nil. At March 31, 2019 and December 31, 2018, the Company had $6,756,022 and $1,108,808 accounts receivable from YIDA, respectively. Transactions with Ai Zhong Jing Mao For the three months ended March 31, 2019 and 2018, total revenues from Ai Zhong Jing Mao amounted to $2,147 and $Nil, respectively. At March 31, 2019 and December 31, 2018, the Company had $19,317 and $21,295 advance from Ai Zhong Jing Mao, respectively. Transactions with Wonder Genesis Global Ltd. For the three months ended March 31, 2019 and 2018, total revenues from Wonder Genesis Global Ltd. amounted to $Nil and $1,303,482, and the corresponding cost of revenues amounted to $Nil and $1,294,760, respectively. Transactions with Lifeforfun Limited At March 31, 2019 and December 31, 2018, the Company had $759,120 and $1,080,919 accounts receivable, which were net of allowance for doubtful account $396,240 and $74,448 from Lifeforfun Limited, respectively. For the three months ended March 31, 2019 and 2018, the Company recorded bad debt expense for Lifeforfun Limited in the amount of $318,284 and $Nil, respectively. Transactions with Changzhi Du During the three months ended March 31, 2018, HDS prepaid $636,922 to Changzhi Du for purchase of yew forest assets, which was included in long-term prepaid expenses-related parties in the accompanying consolidated balance sheets. Transactions with Jinguo Wang During the three months ended March 31, 2019 and 2018, HDS purchased yew forest assets from Jinguo Wang in the amount of $Nil and $946,339, respectively. At March 31, 2019 and December 31, 2018, prepayments to Jinguo Wang for purchase of yew forest assets amounted to $185,782 and $0, respectively, which was included in advance to suppliers-related parties in the accompanying consolidated balance sheets. Transactions with Chunping Wang At March 31, 2019, HDS prepaid $169,867 to Chunping Wang for purchase of yew forest assets, which was included in advance to suppliers-related parties in the accompanying consolidated balance sheets. 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 three months ended March 31, 2019 and 2018, rent expense related to the ZTC Lease amounted to $6,020 and $6,389, respectively. At March 31, 2019 and December 31, 2018, prepaid rent to ZTC amounted to approximately $25,000 and $30,000, respectively, which was included in prepaid expenses-related parties in the accompanying consolidated balance sheets. On January 1, 2010, the Company entered into a lease for office space with Mr. Wang (the "Office Lease"). Pursuant to the Office Lease, annual payments of RMB15,000 (approximately $2,000) are due for each of the term. The term of the Office Lease is 15 years and expires on December 31, 2025. For the three months ended March 31, 2019 and 2018, rent expense related to the Office Lease amounted to $556 and $590, respectively. As of March 31, 2019 and December 31, 2018, the unpaid rent was $3,000 and $Nil, 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. On July 1, 2018, the Company renewed JSJ Lease for three years, which will now expire on June 30, 2021. Pursuant to the renewed lease agreement, the annual payment will be RMB 10,000 (approximately $1,500). For the three months ended March 31, 2019 and 2018, rent expense related to the JSJ Lease amounted to $371 and $393, respectively. As of March 31, 2019 and December 31, 2018, the unpaid rent was $6,000 and $6,500, 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 from HDS Development in the A'cheng district in Harbin (the "A'cheng Lease") on March 20, 2002. The A'cheng Lease is for a term of 23 years and expires on March 19, 2025. Pursuant to the A'cheng Lease, lease payment shall be made as follows: Period Annual lease amount Payment due date March 2002 to February 2012 RMB25,000 Before December 2012 March 2012 to February 2017 RMB25,000 Before December 2017 March 2017 to March 2025 RMB25,000 Before December 2025 For the three months ended March 31, 2019 and 2018, rent expense related to the A'cheng Lease amounted $886 and $983, respectively. At March 31, 2019 and December 31, 2018, the (unpaid) prepaid rent was ($1,000) and $2,000, respectively, which was included in (due to related parties) prepaid expenses-related parties in the accompanying consolidated balance sheets. The Company leased an apartment in the Nangang district (the "Jixing Lease") in Harbin from Ms. Qi on October 1, 2016. The term of Jixing Lease is one year. On October 1, 2017, the Company and Ms. Qi renewed the Jixing Lease. The renewed lease expires on September 30, 2018. On October 1, 2018, the Company and Ms. Qi renewed the Lease. The renewed lease expires on September 30, 2019. For the three months ended March 31, 2019 and 2018, rent expense related to the Jixing Lease amounted $371 and $393, respectively. As of March 31, 2019 and December 31, 2018, the prepaid rent to Ms. Qi amounted to $1,500 and $1,000, respectively, which was included in prepaid expenses-related parties in the accompanying consolidated balance sheets. Due to Related Parties The following summarized the Company's due to related parties as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Guifang Qi $ 428,095 $ 428,095 Zhiguo Wang 49,723 49,151 HBP 105,748 102,770 Total $ 583,566 * $ 580,016 * *: The amounts due to related parties bear no interest and are payable on demand. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 12 - 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. The Company managed and reviewed its business as two operating segments starting from year 2018. The business of HDS, JSJ and HYF in PRC was managed and reviewed as PRC segment. The business of YBP, Yew Bio-Pharm (HK), and MC was managed and reviewed as USA segment. PRC and USA segments retain all of the reported consolidated amounts. The geographical distributions of the Company's financial information for the three months ended March 31, 2019 and 2018 were as follows: For the Three Months Ended Geographic Areas 2019 2018 Revenue PRC 11,480,671 3,000,397 USA 33,333 30,741 Total Revenue $ 11,514,004 $ 3,031,138 Income (Loss) from operations PRC $ 749,260 $ 363,629 USA (203,986 ) (144,206 ) Total Income (Loss) from operations $ 545,274 $ 219,423 Net income (loss) PRC $ 538,945 $ 293,496 USA (161,903 ) (144,490 ) Total net income (loss) $ 377,042 $ 149,006 The geographical distribution of the Company's financial information as of March 31, 2019 and December 31, 2018 were as follows: As of March 31, As of December 31, Geographic Areas 2019 2018 Long-term assets PRC $ 36,111,360 $ 35,866,829 USA 1,452,060 1,436,101 Total long-term assets $ 37,563,420 $ 37,302,930 Reportable assets PRC $ 54,472,843 $ 50,107,147 USA 2,293,990 2,289,019 Elimination adjustment (3,309,702 ) (2,704,100 ) Total reportable assets $ 53,457,131 $ 49,692,066 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 - COMMITMENTS AND CONTINGENCIES Operating Lease See future minimum lease payments in Note 9. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14 SUBSEQUENT EVENTS The Company has evaluated all subsequent events through the date these consolidated financial statements were issued and determine that there were no subsequent events or transactions that require recognition or disclosures in the consolidated financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of company's subsidiaries and variable interest entities | Name Domicile and Date of Incorporation Registered Capital Effective Ownership Principal Activities Heilongjiang Jinshangjing Bio-Technology Development Co., Limited ("JSJ") PRC October 29, 2009 US$100,000 100% Holding company Yew Bio-Pharm Holdings Limited ("Yew Bio-Pharm (HK)") Hong Kong November 29, 2010 HK$10,000 100% Holding company of JSJ Harbin Yew Science and Technology Development Co., Ltd. ("HDS") PRC August 22, 1996 RMB45,000,000 Contractual arrangements Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings; the manufacture of yew tree wood handicrafts; and the sales of candle, pine needle extract, yew essential oil soap, complex taxus cuspidate extract, and northeast yew extract Harbin Yew Food Co., Ltd ("HYF") PRC November 4, 2014 RMB100,000 100%(1) Sales of wood ear mushroom drink MC Commerce Holding Inc.("MC") State of California, United State June 8, 2016 100%(2) Sales of yew oil candles and yew oil soaps (1) Wholly-owned subsidiary of HDS (2) 51% owned by YBP and 49% owned by HDS |
Principles of Consolidation (Ta
Principles of Consolidation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Principles of Consolidation [Abstract] | |
Schedule of carrying amount of assets and liabilities related to variable interest entity | March 31, 2019 December 31, 2018 Assets Cash $ 213,413 $ 478,293 Accounts receivable - related parties, net of allowance for doubtful account $1,178,526 and $837,929 8,297,428 4,579,666 Inventories (current and long-term), net 6,687,361 6,567,144 Prepaid expenses and other assets 49,902 34,492 Advance to suppliers 159,393 - Advance to suppliers - related parties 1,517,903 - Prepaid expenses - related parties 25,759 32,318 Property and equipment, net 504,848 506,949 Long-term investment in MC 2,898,475 2,449,757 Land use rights and yew forest assets, net 33,125,420 34,914,793 Operating lease right of use 270,848 VAT recoverables 1,007,232 985,831 Total assets of VIE and its subsidiary $ 54,757,982 $ 50,549,243 Liabilities Accrued expenses and other payables $ 366,959 $ 237,114 Accounts payable 43,929 10,410 Advance from customer 149 145 Advance from customer-related party 2,371,697 21,295 Taxes payable 21,720 - Short-term borrowings 5,520,137 5,758,517 Operating lease liability- current 10,483 - Operating lease liability- noncurrent 254,348 - Deferred income 348,676 340,294 Due to related parties and VIE holding companies 675,166 658,501 Total liabilities of VIE and its subsidiary $ 9,613,264 $ 7,026,276 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | March 31, 2019 December 31, 2018 Current portion Long-term portion Total Current portion Long-term portion Total Raw materials $ 17,476 $ 95,087 $ 112,563 $ 40,240 $ 92,801 $ 133,041 Finished goods 6,271,920 2,820,150 9,092,070 6,194,707 2,794,335 8,989,042 Yew seedlings 6,626 16,418 23,044 - 16,023 16,023 Total 6,296,022 2,931,655 9,227,677 6,234,947 2,903,159 9,138,106 Inventory write-down (25,670 ) (1,082,580 ) (1,108,250 ) (29,993 ) (1,079,031 ) (1,109,024 ) Inventories, net $ 6,270,352 $ 1,849,075 $ 8,119,427 $ 6,204,954 $ 1,824,128 $ 8,029,082 |
Schedule of inventory purchased from related parties | March 31, December 31, 2019 2018 Inventories, net $ 129,725 $ 182,905 Inventories - related parties, net 6,140,627 6,022,049 Total $ 6,270,352 $ 6,204,954 March 31, December 31, 2019 2018 Long-term inventories, net $ 919,304 $ 894,357 Long-term inventories - related parties, net 929,771 929,771 Total $ 1,849,075 $ 1,824,128 |
Taxes (Tables)
Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of difference between the U.S. statutory federal tax rate and company's effective tax rate | Three Months Ended March 31, 2019 2018 U.S. federal income tax rate 21.00 % 21.00 % Tax rate difference 5.62 % 2.10 % Loss not subject income tax 8.71 % - Foreign income not recognized in the U.S. - (21.00 )% PRC EIT rate - 25.00 % PRC tax exemption and reduction (40.75 )% (28.00 )% Valuation allowance - 0.90 % Effective tax rate (5.42 )% - |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of stock option activities | Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Number of Stock Options Weighted Average Exercise Price Number of Stock Options Weighted Average Exercise Price Balance at beginning of period 7,738,737 0.22 24,872,212 0.22 Issued - - - - Exercised - - - - Forfeited - - - - Balance at end of period 7,738,737 0.22 24,872,212 0.22 Option exercisable at end of period 7,738,737 0.22 24,772,212 0.22 |
Schedule of common stock issuable upon exercise of options outstanding | Stock Options Outstanding Stock Options Exercisable Range of Exercise Price Number Outstanding at March 31, 2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable at March 31, 2018 Weighted Average Exercise Price $ 0.22-0.25 7,738,737 0.75 $ 0.22 7,738,737 $ 0.22 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of basic and diluted net income per share | For the Three Months Ended March 31, 2019 2018 Net income available to common stockholders for basic and diluted net income per share of common stock $ 377,042 $ 149,006 Weighted average common stock outstanding - basic 52,012,729 51,875,000 Effect of dilutive securities: Stock options issued to directors/officers/employees 103,460 8,209,530 Weighted average common stock outstanding - diluted 52,116,189 60,084,530 Net income per common share - basic $ 0.01 $ 0.00 Net income per common share - diluted $ 0.01 $ 0.00 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of lease expense | Classification Three Months Ended Operating lease cost Selling, general and administrative expense $ 29,514 Net lease cost $ 29,514 |
Schedule of balance sheet information related to leases | Classification March 31, 2019 Assets Operating lease ROU assets Right-of-use assets $ 349,794 Total leased assets $ 349,794 Liabilities Current Operating Current maturities of operating lease liabilities $ 52,681 Non-current Operating Operating lease liabilities 291,097 Total lease liabilities $ 343,778 Weighted average remaining lease term Operating leases 8.7 years Weighted average discount rate Operating leases 6.44 % |
Schedule of cash flow information related to leases | Three Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 35,530 |
Schedule of minimum future lease payments | Years Ending December 31, Operating Leases 2019 $ 38,058 2020 73,589 2021 31,602 2022 26,303 2023 26,303 After 2024 317,117 Total lease payments 512,972 Less: Interest (169,194 ) Present value of lease liabilities $ 343,778 |
Concentrations of Credit Risk_2
Concentrations of Credit Risk and Major Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Concentration Risk [Line Items] | |
Schedule of cash balances by geographic area | March 31, 2019 December 31, 2018 Country United States $ 5,269 $ 40,405 China 216,459 481,265 Total Cash $ 221,728 $ 521,670 |
Customer [Member] | |
Concentration Risk [Line Items] | |
Schedule of major customers and suppliers | For the Three Months Ended Customer 2019 2018 A (Yew Pharmaceutical, a related party) 36 % 56 % C (Wonder Genesis Global Ltd., a related party) - % 43 % D (HongKong YIDA Commerce Co., Limited, a related party) 64 % * % * Less than 10% Accounts receivable as of Customer March 31, 2019 December 31, 2018 A (Yew Pharmaceutical, a related party) - % 31 % C (Wonder Genesis Global Ltd., a related party) - % - % D (HongKong YIDA Commerce Co., Limited, a related party) 81 % 24 % * Less than 10% |
Supplier [Member] | |
Concentration Risk [Line Items] | |
Schedule of major customers and suppliers | For the Three Months Supplier 2019 2018 A (Yew Pharmaceutical, a related party) 100 % 43 % L * % 11 % M (Jinguo Wang, a related party) * % 15 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of company's transactions with the related parties | Company Nature of Relationship Heilongjiang Zishan Technology Co., Ltd. ("ZTC") 51% owned by Heilongjiang Hongdoushan Ecology Forest Co., Ltd., 34% owned by Zhiguo Wang, Chairman and Chief Executive Officer, 11% owned by Guifang Qi, the wife of Mr. Wang and director of the Company, and 4% owned by third parties. Heilongjiang Yew Pharmaceutical Co., Ltd. ("Yew Pharmaceutical") 95% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 5% owned by Madame Qi. Shanghai Kairun Bio-Pharmaceutical Co., Ltd. ("Kairun") 60% owned by Heilongjiang Zishan Technology Co., Ltd., 20% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 20% owned by Mr. Wang. Heilongjiang Hongdoushan Ecology Forest Co., Ltd. ("HEFS") 63% owned by Mr. Wang, 34% owned by Madame Qi, and 3% owned by third parties. Hongdoushan Bio-Pharmaceutical Co., Ltd. ("HBP") 30% owned by Mr. Wang, 19% owned by Madame Qi and 51% owned by HEFS Heilongjiang Pingshan Hongdoushan Development Co., Ltd. ("HDS Development") 80% owned by HEFS and 20% owned by Kairun Wuchang City Xinlin Forestry Co., Ltd. (Xinlin) 98% owned by ZTC and 2% owned by HEFS effective March 21, 2016 HongKong YIDA Commerce Co., Limited("YIDA") Significantly influenced by the Company LIFEFORFUN LIMITED Significantly influenced by the Company Changzhi Du Legal person of Xinlin before March 1, 2017 Jinguo Wang Management of HDS, legal person of Xinlin before February 9, 2018, and director of ZTC effective February 1, 2018. Chunping Wang Employee of the Company Wonder Genesis Global Ltd. Jinguo Wang is the Company's director. Ai Zhong Jing Mao Ltd. Significantly influenced by the Company |
Schedule of lease payment | Period Annual lease amount Payment due date March 2002 to February 2012 RMB25,000 Before December 2012 March 2012 to February 2017 RMB25,000 Before December 2017 March 2017 to March 2025 RMB25,000 Before December 2025 |
Schedule of due to related parties | March 31, 2019 December 31, 2018 Guifang Qi $ 428,095 $ 428,095 Zhiguo Wang 49,723 49,151 HBP 105,748 102,770 Total $ 583,566 * $ 580,016 * *: The amounts due to related parties bear no interest and are payable on demand. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of geographical distributions of company's financial information | For the Three Months Ended Geographic Areas 2019 2018 Revenue PRC 11,480,671 3,000,397 USA 33,333 30,741 Total Revenue $ 11,514,004 $ 3,031,138 Income (Loss) from operations PRC $ 749,260 $ 363,629 USA (203,986 ) (144,206 ) Total Income (Loss) from operations $ 545,274 $ 219,423 Net income (loss) PRC $ 538,945 $ 293,496 USA (161,903 ) (144,490 ) Total net income (loss) $ 377,042 $ 149,006 As of March 31, As of December 31, Geographic Areas 2019 2018 Long-term assets PRC $ 36,111,360 $ 35,866,829 USA 1,452,060 1,436,101 Total long-term assets $ 37,563,420 $ 37,302,930 Reportable assets PRC $ 54,472,843 $ 50,107,147 USA 2,293,990 2,289,019 Elimination adjustment (3,309,702 ) (2,704,100 ) Total reportable assets $ 53,457,131 $ 49,692,066 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Subsidiaries and Variable Interest Entities [Member] | ||
Schedule of Company's subsidiaries and variable interest entities | ||
Domicile and Date of Incorporation | PRC October 29, 2009 | |
Registered Capital | $ 100,000 | |
Effective Ownership, Percentage | 100.00% | |
Principal Activities | Holding company | |
Subsidiaries and Variable Interest Entities One [Member] | HK [Member] | ||
Schedule of Company's subsidiaries and variable interest entities | ||
Domicile and Date of Incorporation | Hong Kong November 29, 2010 | |
Registered Capital | $ 10,000 | |
Effective Ownership, Percentage | 100.00% | |
Principal Activities | Holding company of JSJ | |
Subsidiaries and Variable Interest Entities Two [Member] | RMB [Member] | ||
Schedule of Company's subsidiaries and variable interest entities | ||
Domicile and Date of Incorporation | PRC August 22, 1996 | |
Registered Capital | $ 45,000,000 | |
Effective Ownership | Contractual arrangements | |
Principal Activities | Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings; the manufacture of yew tree wood handicrafts; and the sales of candle, pine needle extract, yew essential oil soap, complex taxus cuspidate extract, and northeast yew extract | |
Subsidiaries And Variable Interest Entities Three [Member] | RMB [Member] | ||
Schedule of Company's subsidiaries and variable interest entities | ||
Domicile and Date of Incorporation | PRC November 4, 2014 | |
Registered Capital | $ 100,000 | |
Effective Ownership, Percentage | 100.00% | [1] |
Principal Activities | Sales of wood ear mushroom drink | |
Subsidiaries And Variable Interest Entities Four [Member] | ||
Schedule of Company's subsidiaries and variable interest entities | ||
Domicile and Date of Incorporation | State of California, United State June 8, 2016 | |
Effective Ownership, Percentage | 100.00% | [2] |
Principal Activities | Sales of yew oil candles and yew oil soaps | |
Yew Bio-Pharm Group, Inc [Member] | ||
Schedule of Company's subsidiaries and variable interest entities | ||
Effective Ownership, Percentage | 49.00% | |
Harbin Yew Science And Technology Development Co Ltd [Member] | ||
Schedule of Company's subsidiaries and variable interest entities | ||
Effective Ownership, Percentage | 51.00% | |
[1] | Wholly-owned subsidiary of HDS | |
[2] | 51% owned by YBP and 49% owned by HDS |
Principles of Consolidation (De
Principles of Consolidation (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | $ 54,757,982 | $ 50,549,243 |
Total liabilities of VIE and its subsidiary | 9,613,264 | 7,026,276 |
Cash [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 213,413 | 478,293 |
Accounts receivable - related parties [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 8,297,428 | 4,579,666 |
Inventories (current and long-term), net [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 6,687,361 | 6,567,144 |
Prepaid expenses and other assets [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 49,902 | 34,492 |
Prepaid expenses - related parties [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 25,759 | 32,318 |
Property and equipment, net [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 506,949 | |
Long-term investment in MC [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 2,898,475 | 2,449,757 |
Land use rights and yew forest assets, net [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 33,125,420 | 34,914,793 |
VAT recoverables [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 1,007,232 | 985,831 |
Accrued expenses and other payables [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 366,959 | 237,114 |
Accounts payable [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 43,929 | 10,410 |
Advance from customer [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 149 | 145 |
Advance from customer-related party [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 2,371,697 | 21,295 |
Short-term borrowings [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 5,520,137 | 5,758,517 |
Operating lease liability- current [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 10,483 | |
Operating lease liability- noncurrent [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 254,348 | |
Deferred income [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 348,676 | 340,294 |
Due to related parties and VIE holding companies [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 675,166 | 658,501 |
Property and equipment, net [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 504,848 | |
Operating lease right of use [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 270,848 | |
Advance to suppliers [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 159,393 | |
Advance to suppliers - related parties [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 1,517,903 | |
Taxes payable [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | $ 21,720 |
Principles of Consolidation (_2
Principles of Consolidation (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Principles of Consolidation (Textual) | ||
Exclusive Business Cooperation Agreement, description | HDS shall pay to JSJ a monthly consulting service fee (the “Service Fee”) in RMB that is equal to 100% of the monthly net income of HDS. Upon the prior written consent by JSJ, the rate of Service Fee may be adjusted pursuant to the operational needs of HDS. Within 30 days after the end of each month, HDS shall (a) deliver to JSJ the management accounts and operating statistics of HDS for such month, including the net income of HDS during such month (the “Monthly Net Income”), and (b) pay 80% of such Monthly Net Income to JSJ (each such payment, a “Monthly Payment”). | |
Exclusive Option Agreement, description | The terms of which are substantively identical to each other, each HDS Shareholder has granted JSJ or its designee the irrevocable and exclusive right to purchase, to the extent permitted under PRC law, all or any part of the HDS Shareholder’s equity interests in HDS (the “Equity Interest Purchase Option”) for RMB10. If an appraisal is required by PRC laws at the time when and if JSJ exercises the Equity Interest Purchase Option, the parties shall negotiate in good faith and, based upon the appraisal, make a necessary adjustment to the purchase price so that it complies with any and all then applicable PRC laws. Without the consent of JSJ, the HDS Shareholders shall not sell, transfer, mortgage or dispose of their respective shares of HDS stock. Additionally, without the prior consent of JSJ, the HDS Shareholders shall not in any manner supplement, change or amend the articles of association and bylaws of HDS, increase or decrease its registered capital, change the structure of its registered capital in any other manner, or engage in any transactions that could materially affect HDS’ assets, liabilities, rights or operations, including, without limitation, the incurrence or assumption of any indebtedness except incurred in the ordinary course of business, execute any major contract over RMB500,000, sell or purchase any assets or rights, incur of any encumbrance on any of its assets or intellectual property rights in favor of a third party or transfer of any agreements relating to its business operation to any third party. | |
Recognized operating lease liabilities | $ 373,517 | |
Allowance for doubtful account, net | $ 1,178,526 | $ 837,929 |
Inventories (Details)
Inventories (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule of inventories | ||
Inventories, net, Current portion | $ 6,270,352 | $ 6,204,954 |
Inventories, net, Long-term portion | 1,849,075 | 1,824,128 |
Inventory write-down, Current portion | (25,670) | (29,993) |
Inventory write-down, Long-term portion | (1,082,580) | (1,079,031) |
Inventory write-down, Total | (1,108,250) | (1,109,024) |
Inventories, net, Total | 8,119,427 | 8,029,082 |
Raw materials [Member] | ||
Schedule of inventories | ||
Inventories, net, Current portion | 17,476 | 40,240 |
Inventories, net, Long-term portion | 95,087 | 92,801 |
Inventories, net, Total | 112,563 | 133,041 |
Finished goods [Member] | ||
Schedule of inventories | ||
Inventories, net, Current portion | 6,271,920 | 6,194,707 |
Inventories, net, Long-term portion | 2,820,150 | 2,794,335 |
Inventories, net, Total | 9,092,070 | 8,989,042 |
Yew Seedlings [Member] | ||
Schedule of inventories | ||
Inventories, net, Current portion | 6,626 | |
Inventories, net, Long-term portion | 16,418 | 16,023 |
Inventories, net, Total | 23,044 | 16,023 |
Total [Member] | ||
Schedule of inventories | ||
Inventories, net, Current portion | 6,296,022 | 6,234,947 |
Inventories, net, Long-term portion | 2,931,655 | 2,903,159 |
Inventories, net, Total | $ 9,227,677 | $ 9,138,106 |
Inventories (Details 1)
Inventories (Details 1) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Inventories, net | $ 129,725 | $ 182,905 |
Inventories - related parties, net | 6,140,627 | 6,022,049 |
Total | 6,270,352 | 6,204,954 |
Long-term inventories, net | 919,304 | 894,357 |
Long-term inventories - related parties, net | 929,771 | 929,771 |
Total | $ 1,849,075 | $ 1,824,128 |
Taxes (Details)
Taxes (Details) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Summary of difference between U.S. statutory federal tax rate and Company's effective tax rate | ||
U.S. federal income tax rate | 21.00% | 21.00% |
Tax rate difference | 5.62% | 2.10% |
Loss not subject income tax | 8.71% | |
Foreign income not recognized in the U.S. | (21.00%) | |
PRC EIT rate | 25.00% | |
PRC tax exemption and reduction | (40.75%) | (28.00%) |
Valuation allowance | 0.90% | |
Effective tax rate | (5.42%) |
Taxes (Details Textual)
Taxes (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Dec. 22, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Taxes (Textual) | ||||
United States federal income tax rate | 21.00% | 21.00% | ||
Provision for income taxes | $ 21,606 | |||
U.S. corporate income tax, description | The Company completed its calculation and recorded $1,431,835 of the transition tax on undistributed earnings of non-U.S. subsidiaries during the year ended December 31, 2018. As of March 31, 2019 and December 31, 2018, the Company had current income tax payable of $Nil and $114,547 and noncurrent income tax payable of $1,202,741 and $1,202,741. | |||
Controlled foreign corporations, description | GILTI is the excess of the shareholder's net CFC tested income over the net deemed tangible income return, which is currently defined as the excess of (1) 10 percent of the aggregate of the U.S. shareholder's pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. | |||
GILTI tax expense | ||||
GILTI tax payable | $ 60,996 | $ 60,996 | ||
Minimum [Member] | ||||
Taxes (Textual) | ||||
United States federal income tax rate | 21.00% | |||
Maximum [Member] | ||||
Taxes (Textual) | ||||
United States federal income tax rate | 35.00% |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) | 3 Months Ended | |||||||||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Aug. 27, 2018USD ($) | Aug. 27, 2018CNY (¥) | Aug. 06, 2018CNY (¥) | Nov. 15, 2017USD ($) | Dec. 22, 2016USD ($) | Dec. 22, 2016CNY (¥) | Nov. 10, 2016USD ($) | Nov. 10, 2016CNY (¥) | May 31, 2016USD ($) | May 31, 2016CNY (¥) | |
Short-Term Borrowings (Textual) | ||||||||||||
Loans borrowed from CEB | $ 1,290,000 | $ 1,520,000 | ||||||||||
Total amount paid off | 1,600,000 | 1,320,000 | ||||||||||
Balance of short-term loans | 2,540,000 | 2,851,000 | ||||||||||
Interest expense | (88,709) | $ (68,033) | ||||||||||
Minimum [Member] | ||||||||||||
Short-Term Borrowings (Textual) | ||||||||||||
Loan interest rate | 4.30% | 4.30% | ||||||||||
Maximum [Member] | ||||||||||||
Short-Term Borrowings (Textual) | ||||||||||||
Loan interest rate | 4.80% | 4.80% | ||||||||||
Yingkou Bank [Member] | ||||||||||||
Short-Term Borrowings (Textual) | ||||||||||||
Bank loan amount | $ 2,235,000 | $ 745,000 | ||||||||||
Loan interest rate | 5.4375% | 5.4375% | 5.4375% | |||||||||
Yingkou Bank [Member] | RMB [Member] | ||||||||||||
Short-Term Borrowings (Textual) | ||||||||||||
Bank loan amount | ¥ | ¥ 5,000,000 | ¥ 15,000,000 | ||||||||||
SPD Bank [Member] | ||||||||||||
Short-Term Borrowings (Textual) | ||||||||||||
Bank loan amount | $ 1,509,000 | $ 290,000 | ||||||||||
Loan interest rate | 4.10% | 4.10% | ||||||||||
SPD Bank [Member] | RMB [Member] | ||||||||||||
Short-Term Borrowings (Textual) | ||||||||||||
Bank loan amount | $ 10,000,000 | ¥ 1,970,000 | ||||||||||
CEB [Member] | ||||||||||||
Short-Term Borrowings (Textual) | ||||||||||||
Bank loan amount | $ 2,880,000 | |||||||||||
CEB [Member] | RMB [Member] | ||||||||||||
Short-Term Borrowings (Textual) | ||||||||||||
Bank loan amount | ¥ | ¥ 20,000,000 | |||||||||||
BOCOM [Member] | ||||||||||||
Short-Term Borrowings (Textual) | ||||||||||||
Bank loan amount | $ 1,471,000 | |||||||||||
Loan interest rate | 5.873% | 5.873% | ||||||||||
BOCOM [Member] | RMB [Member] | ||||||||||||
Short-Term Borrowings (Textual) | ||||||||||||
Bank loan amount | ¥ | ¥ 10,000,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Employee Stock Option [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Summary of stock option activities | ||
Number of Stock Options, Beginning balance | 7,738,737 | 24,872,212 |
Number of Stock Options, Issued | ||
Number of Stock Options, Exercised | ||
Number of Stock Options, Forfeited | ||
Number of Stock Options, Ending balance | 7,738,737 | 24,772,212 |
Number of Stock Options, Options exercisable | 7,738,737 | 24,772,212 |
Weighted Average Exercise Price, Beginning balance | $ 0.22 | $ 0.22 |
Weighted Average Exercise Price, Issued | ||
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) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Summary of common stock issuable upon exercise of options outstanding | |
Stock Options Outstanding, Range of Exercise Price, Minimum | $ 0.22 |
Stock Options Outstanding, Range of Exercise Price, Maximum | $ 0.25 |
Stock Options Outstanding, Number Outstanding | shares | 7,738,737 |
Stock Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 9 months |
Stock Options Outstanding, Weighted Average Exercise Price | $ 0.22 |
Stock Options Exercisable, Number Exercisable | shares | 7,738,737 |
Stock Options Exercisable, Weighted Average Exercise Price | $ 0.22 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | |
Stockholders' Equity (Textual) | |||
Common stock exercise price | $ 0.156 | ||
Stock option expense | $ 2,493 | ||
Exercisable stock options intrinsic value | |||
Service Provider Agreement [Member] | |||
Stockholders' Equity (Textual) | |||
Issuance of restricted common stock, shares | 375,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income available to common stockholders for basic and diluted net income per share of common stock | $ 377,042 | $ 149,006 |
Weighted average common stock outstanding - basic | 52,012,729 | 51,875,000 |
Effect of dilutive securities: | ||
Stock options issued to directors/officers/employees | 103,460 | 8,209,530 |
Weighted average common stock outstanding - diluted | 52,116,189 | 60,084,530 |
Net income per common share - basic | $ 0.01 | $ 0 |
Net income per common share - diluted | $ 0.01 | $ 0 |
Leases (Details)
Leases (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost, Selling, general and administrative expense | $ 29,514 |
Net lease cost | $ 29,514 |
Leases (Details 1)
Leases (Details 1) | Mar. 31, 2019USD ($) |
Assets | |
Operating lease Right-of-use assets | $ 349,794 |
Total leased assets | 349,794 |
Liabilities | |
Current | 52,681 |
Current maturities of operating lease liabilities | 52,681 |
Non-current | |
Operating lease liabilities | 291,097 |
Total lease liabilities | $ 343,778 |
Weighted average remaining lease term | |
Operating leases | 8 years 8 months 12 days |
Weighted average discount rate | |
Operating leases | 6.44% |
Leases (Details 2)
Leases (Details 2) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 35,530 |
Leases (Details 3)
Leases (Details 3) | Mar. 31, 2019USD ($) |
Years Ending December 31, | |
2019 | $ 38,058 |
2020 | 73,589 |
2021 | 31,602 |
2022 | 26,303 |
2023 | 26,303 |
After 2024 | 317,117 |
Total lease payments | 512,972 |
Less: Interest | (169,194) |
Present value of lease liabilities | $ 343,778 |
Leases (Details Textual)
Leases (Details Textual) | Mar. 31, 2019 |
Leases (Textual) | |
Incremental borrowing rate | 6.44% |
Concentrations of Credit Risk_3
Concentrations of Credit Risk and Major Customers (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Revenue [Member] | 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 | 36.00% | 56.00% | ||
Revenue [Member] | C (Wonder Genesis Global Ltd., a related party) [Member] | ||||
Summary of major customer accounting for 10% or more of the company's revenue | ||||
Concentration of credit risk, percentage | 43.00% | |||
Revenue [Member] | D (HongKong YIDA Commerce Co., Limited, a related party) [Member] | ||||
Summary of major customer accounting for 10% or more of the company's revenue | ||||
Concentration of credit risk, percentage | 64.00% | [1] | ||
Accounts Receivable [Member] | 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 | 31.00% | |||
Accounts Receivable [Member] | C (Wonder Genesis Global Ltd., a related party) [Member] | ||||
Summary of major customer accounting for 10% or more of the company's revenue | ||||
Concentration of credit risk, percentage | ||||
Accounts Receivable [Member] | D (HongKong YIDA Commerce Co., Limited, a related party) [Member] | ||||
Summary of major customer accounting for 10% or more of the company's revenue | ||||
Concentration of credit risk, percentage | 81.00% | 24.00% | ||
[1] | Less than 10% |
Concentrations of Credit Risk_4
Concentrations of Credit Risk and Major Customers (Details 1) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
A (Yew Pharmaceutical, a related party) [Member] | |||
Summary of major suppliers | |||
Concentration of credit risk, percentage | 100.00% | 43.00% | |
L [Member] | |||
Summary of major suppliers | |||
Concentration of credit risk, percentage | [1] | 11.00% | |
M (Jinguo Wang, a related party) [Member] | |||
Summary of major suppliers | |||
Concentration of credit risk, percentage | [1] | 15.00% | |
[1] | Less than 10% |
Concentrations of Credit Risk_5
Concentrations of Credit Risk and Major Customers (Details 2) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Revenue, Major Customer [Line Items] | ||||
Total Cash | $ 221,728 | $ 521,670 | $ 23,050 | $ 859,830 |
UNITED STATES [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Cash | 5,269 | 40,405 | ||
CHINA [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Cash | $ 216,459 | $ 481,265 |
Concentrations of Credit Risk_6
Concentrations of Credit Risk and Major Customers (Details Textual) | 3 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2018 | Mar. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | |
Concentrations of Credit Risk and Major Customer (Textual) | ||||
FDIC insured | $ 100,000 | $ 200,000 | ||
FDIC not insured | 122,000 | $ 330,000 | ||
China Financial Stability Bureau insured | ¥ | ¥ 500,000 | |||
UNITED STATES [Member] | ||||
Concentrations of Credit Risk and Major Customer (Textual) | ||||
FDIC insured | $ 250,000 | |||
Supplier [Member] | ||||
Concentrations of Credit Risk and Major Customer (Textual) | ||||
Concentration of credit risk, percentage | 10.00% | 10.00% | ||
Customer [Member] | Accounts Receivable [Member] | ||||
Concentrations of Credit Risk and Major Customer (Textual) | ||||
Concentration of credit risk, percentage | 10.00% | 10.00% |
Related Party Transactions (Det
Related Party Transactions (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Heilongjiang Zishan Technology Co., Ltd. ("ZTC") [Member] | |
Schedule of company's transactions with the related parties | |
Nature of Relationship, description | 51% owned by Heilongjiang Hongdoushan Ecology Forest Co., Ltd., 34% owned by Zhiguo Wang, Chairman and Chief Executive Officer, 11% owned by Guifang Qi, the wife of Mr. Wang and director of the Company, and 4% owned by third parties. |
Heilongjiang Yew Pharmaceutical Co., Ltd. ("Yew Pharmaceutical") [Member] | |
Schedule of company's transactions with the related parties | |
Nature of Relationship, 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 | |
Nature of Relationship, description | 60% owned by Heilongjiang Zishan Technology Co., Ltd., 20% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 20% owned by Mr. Wang. |
Heilongjiang Hongdoushan Ecology Forest Co., Ltd. ("HEFS") [Member] | |
Schedule of company's transactions with the related parties | |
Nature of Relationship, 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 | |
Nature of Relationship, 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 | |
Nature of Relationship, 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 | |
Nature of Relationship, 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 | |
Nature of Relationship, description | Legal person of Xinlin before March 1, 2017 |
Jinguo Wang [Member] | |
Schedule of company's transactions with the related parties | |
Nature of Relationship, description | Management of HDS, legal person of Xinlin before February 9, 2018, and director of ZTC effective February 1, 2018. |
Chunping Wang [Member] | |
Schedule of company's transactions with the related parties | |
Nature of Relationship, description | Employee of the Company |
Wonder Genesis Global Ltd. [Member] | |
Schedule of company's transactions with the related parties | |
Nature of Relationship, description | Jinguo Wang is the Company’s director. |
Ai Zhong Jing Mao Ltd. [Member] | |
Schedule of company's transactions with the related parties | |
Nature of Relationship, description | Significantly influenced by the Company |
HongKong YIDA Commerce Co., Limited("YIDA") [Member] | |
Schedule of company's transactions with the related parties | |
Nature of Relationship, description | Significantly influenced by the Company |
LIFEFORFUN LIMITED [Member] | |
Schedule of company's transactions with the related parties | |
Nature of Relationship, description | Significantly influenced by the Company |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - A'cheng Lease [Member] | 3 Months Ended |
Mar. 31, 2019CNY (¥) | |
March 2002 to February 2012 [Member] | |
Operating Leased Assets [Line Items] | |
Payment due date | Before December 2012 |
March 2002 to February 2012 [Member] | CNY [Member] | |
Operating Leased Assets [Line Items] | |
Annual lease amount | ¥ 25,000 |
March 2012 to February 2017 [Member] | |
Operating Leased Assets [Line Items] | |
Payment due date | Before December 2017 |
March 2012 to February 2017 [Member] | CNY [Member] | |
Operating Leased Assets [Line Items] | |
Annual lease amount | ¥ 25,000 |
March 2017 to March 2025 [Member] | |
Operating Leased Assets [Line Items] | |
Payment due date | Before December 2025 |
March 2017 to March 2025 [Member] | CNY [Member] | |
Operating Leased Assets [Line Items] | |
Annual lease amount | ¥ 25,000 |
Related Party Transactions (D_3
Related Party Transactions (Details 2) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | |
Due to related parties, Total | [1] | $ 583,566 | $ 580,016 |
Guifang Qi [Member] | |||
Due to related parties, Total | 428,095 | 428,095 | |
Zhiguo Wang [Member] | |||
Due to related parties, Total | 49,723 | 49,151 | |
HBP [Member] | |||
Due to related parties, Total | $ 105,748 | $ 102,770 | |
[1] | The amounts due to related parties bear no interest and are payable on demand. |
Related Party Transactions (D_4
Related Party Transactions (Details Textual) | Jul. 01, 2018USD ($) | Jul. 01, 2018CNY (¥) | Jan. 01, 2015 | Jul. 01, 2012USD ($)a | Jul. 01, 2012CNY (¥)a | Jan. 09, 2010USD ($) | Jan. 09, 2010CNY (¥) | Jan. 01, 2010USD ($) | Jan. 01, 2010CNY (¥) | Mar. 25, 2005USD ($)a | Mar. 25, 2005CNY (¥)a | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Related Party Transactions (Textual) | ||||||||||||||
Accounts receivable - related parties | $ 8,297,428 | $ 4,579,666 | ||||||||||||
Unpaid rent | ||||||||||||||
Cost of revenues | 10,355,475 | $ 2,551,843 | ||||||||||||
Revenues from related party | $ 11,480,523 | 2,998,880 | ||||||||||||
HDS [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Agreement expiration date | Mar. 19, 2025 | |||||||||||||
Agreement expiration period | 23 years | |||||||||||||
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 | |||||||||||||
Operating leases, rent expense | $ 6,020 | 6,389 | ||||||||||||
Prepaid rent | 25,000 | 30,000 | ||||||||||||
Agreement of Seedling Land with ZTC [Member] | RMB [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 | ¥ | ¥ 162,450 | |||||||||||||
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 | |||||||||||||
Operating leases, rent expense | 556 | 590 | ||||||||||||
Unpaid rent | 3,000 | |||||||||||||
Office Lease [Member] | RMB [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 | ¥ | ¥ 15,000 | |||||||||||||
JSJ Lease [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Agreement expiration date | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2015 | Jun. 30, 2015 | ||||||||||
Agreement expiration period | 3 years | 3 years | 3 years | 3 years | ||||||||||
Leased Area | a | 30 | 30 | ||||||||||||
Annual payments under operating lease | $ 1,500 | $ 1,500 | ||||||||||||
Operating leases, rent expense | 371 | 393 | ||||||||||||
Unpaid rent | 6,000 | 6,500 | ||||||||||||
JSJ Lease [Member] | RMB [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Agreement expiration date | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2015 | Jun. 30, 2015 | ||||||||||
Agreement expiration period | 3 years | 3 years | 3 years | 3 years | ||||||||||
Leased Area | a | 30 | 30 | ||||||||||||
Annual payments under operating lease | ¥ | ¥ 10,000 | ¥ 10,000 | ||||||||||||
A'cheng Lease [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Operating leases, rent expense | 886 | 983 | ||||||||||||
Prepaid rent | 1,000 | 2,000 | ||||||||||||
Yew Pharmaceutical [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Accounts receivable - related parties | 1,408,321 | |||||||||||||
Advance from customer | 2,352,380 | |||||||||||||
Amount payment to related party | 8,460,000 | 2,589,000 | ||||||||||||
Yew Pharmaceutical [Member] | Harbin Yew Food Co., Ltd [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Amount payment to related party | 3,146 | |||||||||||||
Unsecured loan | 105,748 | 102,770 | ||||||||||||
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 | |||||||||||||
Sales | 4,163,435 | 1,695,398 | ||||||||||||
Yew Pharmaceutical [Member] | Cooperation and Development Agreement [Member] | RMB [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 | ¥ | ¥ 1,000,000 | |||||||||||||
HDS Development [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Accounts receivable - related parties | 782,286 | 981,618 | ||||||||||||
Net of allowance for doubtful account | 782,286 | 763,481 | ||||||||||||
ZTC [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Amount payment to related party | 1,162,254 | |||||||||||||
HongKong YIDA Commerce Co., Limited("YIDA") [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Sales | 7,314,941 | |||||||||||||
Accounts receivable - related parties | 6,756,022 | 1,108,808 | ||||||||||||
Ai Zhong Jing Mao Ltd. [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Sales | 2,147 | |||||||||||||
Advance from customer | 19,317 | 21,295 | ||||||||||||
Wonder Genesis Global Ltd [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Sales | 1,303,482 | |||||||||||||
Cost of revenues | 1,294,760 | |||||||||||||
Lifeforfun Limited [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Accounts receivable - related parties | 759,120 | 1,080,919 | ||||||||||||
Net of allowance for doubtful account | 396,240 | 74,448 | ||||||||||||
Bad debt expense | 318,284 | |||||||||||||
Changzhi Du [Member] | HDS [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Prepaid expenses - related party | 636,922 | |||||||||||||
Jinguo Wang [Member] | HDS [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Advance from customer | 185,782 | 0 | ||||||||||||
Amount payment to related party | 946,339 | |||||||||||||
Chunping Wang [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Prepaid expenses - related party | $ 169,867 | |||||||||||||
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 January 1, 2015 to December 31, 2020. | |||||||||||||
Jixing [Member] | ||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||
Agreement expiration date | Sep. 30, 2018 | |||||||||||||
Agreement expiration period | 1 year | |||||||||||||
Operating leases, rent expense | $ 371 | $ 393 | ||||||||||||
Prepaid rent | $ 1,500 | $ 1,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Summary of reportable business segments | |||
Total Revenue | $ 11,514,004 | $ 3,031,138 | |
Total Income (Loss) from operations | 545,274 | 219,423 | |
Total net income (loss) | 377,042 | 149,006 | |
Total long-term assets | 37,563,420 | $ 37,302,930 | |
Total reportable assets | 53,457,131 | 49,692,066 | |
PRC [Member] | |||
Summary of reportable business segments | |||
Total Revenue | 11,480,671 | 3,000,397 | |
Total Income (Loss) from operations | 749,260 | 363,629 | |
Total net income (loss) | 538,945 | 293,496 | |
Total long-term assets | 36,111,360 | 35,866,829 | |
Total reportable assets | 54,472,843 | 50,107,147 | |
USA [Member] | |||
Summary of reportable business segments | |||
Total Revenue | 33,333 | 30,741 | |
Total Income (Loss) from operations | (203,986) | (144,206) | |
Total net income (loss) | (161,903) | $ (144,490) | |
Total long-term assets | 1,452,060 | 1,436,101 | |
Total reportable assets | 2,293,990 | 2,289,019 | |
Elimination adjustment [Member] | |||
Summary of reportable business segments | |||
Total reportable assets | $ (3,309,702) | $ (2,704,100) |
Segment Information (Details Te
Segment Information (Details Textual) | 3 Months Ended |
Mar. 31, 2019Segments | |
Segment Information (Textual) | |
Number of business segments | 2 |