Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 14, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Yew Bio-Pharm Group, Inc. | |
Entity Central Index Key | 0001548240 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 51,700,000 | |
Entity File Number | 000-54701 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | NV |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash | $ 627,744 | $ 521,670 |
Accounts receivable | 7,692,600 | 17,167 |
Accounts receivable - related parties, net of allowance for doubtful account $0 and $837,929 | 2,200,000 | 4,579,666 |
Inventories, net | 990,474 | 6,204,954 |
Prepaid expenses - related parties | 11,382 | 32,318 |
Prepaid expenses and other assets | 92,268 | 47,530 |
VAT recoverables | 56,191 | 985,831 |
Total Current Assets | 11,670,659 | 12,389,136 |
LONG-TERM ASSETS: | ||
Long-term inventories, net | 1,180,568 | 1,824,128 |
Property and equipment, net | 471,315 | 518,650 |
Intangible assets | 45,991 | 45,359 |
Land use rights and yew forest assets, net | 40,698,641 | 34,914,793 |
Operating lease right-of-use assets | 218,195 | |
Total Long-term Assets | 42,614,710 | 37,302,930 |
Total Assets | 54,285,369 | 49,692,066 |
CURRENT LIABILITIES: | ||
Accounts payable | 82,322 | 268,359 |
Accounts payable - related party | 878,875 | |
Payable for acquisition of yew forests | 295,852 | |
Payable for acquisition of yew forests - related party | 340,702 | |
Advance from customers | 140 | 145 |
Advance from customers - related party | 12,869 | 21,295 |
Accrued expenses and other payables | 155,981 | 244,043 |
Taxes payable | 143,848 | 189,617 |
Due to related parties | 598,294 | 580,016 |
Short-term borrowings | 8,039,381 | 5,758,517 |
Current maturities of operating lease liabilities | 24,389 | |
Total Current Liabilities | 10,572,653 | 7,061,992 |
NONCURRENT LIABILITIES: | ||
Taxes payable | 1,088,194 | 1,202,741 |
Deferred income | 327,915 | 340,294 |
Operating lease liabilities | 247,147 | |
Total Noncurrent Liabilities | 1,663,256 | 1,543,035 |
Total Liabilities | 12,235,909 | 8,605,027 |
COMMITMENTS AND CONTINGENCIES | ||
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 September 30, 2019 and December 31, 2018) | 51,700 | 52,075 |
Additional paid-in capital | 9,522,281 | 9,953,494 |
Retained earnings | 31,962,315 | 28,965,217 |
Statutory reserves | 3,762,288 | 3,762,288 |
Accumulated other comprehensive income - foreign currency translation adjustment | (3,249,124) | (1,646,035) |
Total Shareholders' Equity | 42,049,460 | 41,087,039 |
Total Liabilities and Shareholders' Equity | $ 54,285,369 | $ 49,692,066 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Related parties, net of allowance for doubtful account | $ 0 | $ 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 (loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUES: | ||||
Revenues | $ (16,652) | $ 8,003,644 | $ 9,799,286 | $ 8,178,314 |
Revenues - related parties | 684,178 | 6,035,593 | 14,947,466 | 23,712,429 |
Total Revenues | 667,526 | 14,039,237 | 24,746,752 | 31,890,743 |
COST OF REVENUES: | ||||
Cost of revenues | (224,076) | 7,499,241 | 9,632,431 | 7,601,484 |
Cost of revenues - related parties | 932,810 | 5,075,419 | 13,350,942 | 18,991,830 |
Total Cost of Revenues | 708,734 | 12,574,660 | 22,983,373 | 26,593,314 |
GROSS PROFIT | (41,208) | 1,464,577 | 1,763,379 | 5,297,429 |
OPERATING EXPENSES: | ||||
Selling, General and administrative | 391,812 | 248,923 | 905,216 | 731,095 |
Bad debt recovery | (1,505,239) | (1,895,531) | ||
Stock based compensation | 2,548 | 1,067,548 | ||
Total Operating Expenses | (1,113,427) | 251,471 | (990,315) | 1,798,643 |
INCOME FROM OPERATIONS | 1,072,219 | 1,213,106 | 2,753,694 | 3,498,786 |
OTHER INCOME (EXPENSES): | ||||
Interest expense | (97,181) | (45,549) | (278,925) | (182,659) |
Other income | (230,487) | (9,969) | 61,298 | 80,356 |
Exchange income (loss) | 398,149 | (106,570) | 471,585 | (583,271) |
Total Other Income (Expenses) | 70,481 | (162,088) | 253,958 | (685,574) |
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,142,700 | 1,051,018 | 3,007,652 | 2,813,212 |
PROVISION FOR INCOME TAXES | 40,933 | (1,431,836) | (10,554) | (1,431,836) |
NET INCOME | 1,183,633 | (380,818) | 2,997,098 | 1,381,376 |
COMPREHENSIVE INCOME: | ||||
NET INCOME | 1,183,633 | (380,818) | 2,997,098 | 1,381,376 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Foreign currency translation adjustment | (1,651,817) | (1,623,333) | (1,603,089) | (2,467,338) |
COMPREHENSIVE INCOME (LOSS) | $ (468,184) | $ (2,004,151) | $ 1,394,009 | $ (1,085,962) |
NET INCOME PER COMMON SHARE: | ||||
Basic | $ 0.02 | $ (0.01) | $ 0.06 | $ 0.03 |
Diluted | $ 0.02 | $ (0.01) | $ 0.06 | $ 0.03 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic | 51,700,000 | 52,018,478 | 51,781,044 | 51,923,352 |
Diluted | 51,700,000 | 52,018,478 | 51,781,044 | 54,808,280 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 2,997,098 | $ 1,381,376 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Bad debt recovery | (1,895,531) | |
Depreciation | 44,959 | 44,912 |
Gain on disposal of property and equipment | (9,379) | |
Inventory Write-down | (39,586) | |
Stock-based compensation | 1,067,548 | |
Amortization of land use rights and yew forest assets | 1,448,738 | 364,904 |
Sale of yew forest assets as inventory | 4,788,466 | 4,585,652 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (7,982,832) | 2,641,250 |
Accounts receivable - related parties | 4,197,027 | 14,873,927 |
Prepaid expenses and other current assets | (34,384) | (22,053) |
Prepaid expenses - related parties | 20,549 | 19,729 |
Inventories | 5,880,686 | 4,299,077 |
VAT recoverables | 929,492 | (943,333) |
Accounts payable | 121,911 | 692,154 |
Accounts payable - related parties | 1,268,312 | (341,954) |
Accrued expenses and other payables | (28,446) | 160,728 |
Advance from customers | 29,097 | |
Advance from customers-related party | (7,957) | |
Due to related parties | 2,405 | (28,211) |
Taxes payable | (160,316) | 1,431,836 |
Deferred income | 1,067 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 11,541,212 | 30,257,706 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Prepayments made to related party for purchase of yew forest assets | (20,690) | |
Purchase of property and equipment | (18,733) | |
Purchase of land use rights and yew forest assets | (14,005,315) | (31,356,873) |
NET CASH USED IN INVESTING ACTIVITIES | (14,024,048) | (31,377,563) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term borrowings | 10,543,374 | 7,331,599 |
Repayment of short-term borrowings | (8,044,687) | (6,695,593) |
Proceeds from exercise of stock options | 40,000 | |
Proceeds from related party | 30,000 | |
Repayment to related party | (10,000) | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 2,518,687 | 676,006 |
EFFECT OF EXCHANGE RATE ON CASH | 70,223 | 106,281 |
NET INCREASE (DECREASE) IN CASH | 106,074 | (337,570) |
CASH - Beginning of period | 521,670 | 859,830 |
CASH - End of period | 627,744 | 522,260 |
Cash paid for: | ||
Interest | 296,868 | 166,884 |
Income taxes | 162,390 | |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Operating expenses paid by related party | 874 | 5,834 |
Payable for acquisition of yew forests | 307,674 | |
Payable for acquisition of yew forests - related party | $ 354,317 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - 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 | |||||
Net income | 149,006 | 149,006 | ||||
Foreign currency translation adjustment | 1,556,804 | 1,556,804 | ||||
Stock-based compensation | 2,493 | 2,493 | ||||
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 | |||||
Net income | 1,613,188 | 1,613,188 | ||||
Stock-based compensation | 1,062,507 | 1,062,507 | ||||
Balance at Jun. 30, 2018 | $ 51,875 | 11,428,412 | 32,049,852 | 3,762,288 | (137,377) | 47,155,050 |
Balance, shares at Jun. 30, 2018 | 51,875,000 | |||||
Net income | (380,818) | (380,818) | ||||
Foreign currency translation adjustment | (1,623,333) | (1,623,333) | ||||
Issuance of common stocks | $ 200 | 39,800 | 40,000 | |||
Issuance of common stocks, shares | 200,000 | |||||
Stock-based compensation | 2,548 | 2,548 | ||||
Balance at Sep. 30, 2018 | $ 52,075 | 11,470,760 | 31,669,034 | 3,762,288 | (1,760,710) | 45,193,447 |
Balance, shares at Sep. 30, 2018 | 52,075,000 | |||||
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 | |||||
Net income | 377,042 | 377,042 | ||||
Foreign currency translation adjustment | 1,024,884 | 1,024,884 | ||||
Cancellation of common stocks | $ (375) | 375 | ||||
Cancellation of common stocks, shares | (375,000) | |||||
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 | |||||
Net income | 1,436,423 | 1,436,423 | ||||
Purchase of yew forest assets from entity under common control with price over carrying amount | (272,881) | (272,881) | ||||
Balance at Jun. 30, 2019 | $ 51,700 | 9,680,988 | 30,778,682 | 3,762,288 | (1,597,307) | 42,676,351 |
Balance, shares at Jun. 30, 2019 | 51,700,000 | |||||
Net income | 1,183,633 | 1,183,633 | ||||
Purchase of yew forest assets from entity under common control with price over carrying amount | (158,707) | (158,707) | ||||
Foreign currency translation adjustment | (1,651,817) | (1,651,817) | ||||
Balance at Sep. 30, 2019 | $ 51,700 | $ 9,522,281 | $ 31,962,315 | $ 3,762,288 | $ (3,249,124) | $ 42,049,460 |
Balance, shares at Sep. 30, 2019 | 51,700,000 |
Organization and Principal Acti
Organization and Principal Activities | 9 Months Ended |
Sep. 30, 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 September 30, 2019, and the results of operations and cash flows for the nine-month periods ended September 30, 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 US$100,000 100% Holding company Yew Bio-Pharm Holdings Limited ("Yew Bio-Pharm (HK)") Hong Kong HK$10,000 100% Holding company of JSJ Harbin Yew Science and Technology Development Co., Ltd. ("HDS") PRC RMB45,000,000 Contractual arrangements Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings; 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 RMB100,000 100%(1) Sales of wood ear mushroom drink MC Commerce Holding Inc. ("MC") State of California, 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 | 9 Months Ended |
Sep. 30, 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 September 30, 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: September 30, 2019 December 31, 2018 Assets Cash $ 607,788 $ 478,293 Accounts receivable 7,692,600 - Accounts receivable - related parties, net of allowance for doubtful account $Nil and $837,929 2,200,000 4,579,666 Inventories (current and long-term), net 773,634 6,567,144 Prepaid expenses and other assets 70,958 34,492 Prepaid expenses - related parties 11,382 32,318 Property and equipment, net 461,731 506,949 Long-term investment in MC 2,866,080 2,449,757 Land use rights and yew forest assets, net 40,698,641 34,914,793 Operating lease right of use 200,963 - VAT recoverables 56,191 985,831 Total assets of VIE and its subsidiary $ 55,639,968 $ 50,549,243 Liabilities Accrued expenses and other payables $ 114,919 $ 237,114 Accounts payable 7,409 10,410 Accounts payable - related party 878,875 - Payable for acquisition of yew forests 295,852 - Payable for acquisition of yew forests - related party 340,702 - Advance from customer 140 145 Advance from customer-related party 12,869 21,295 Short-term borrowings 8,039,381 5,758,517 Operating lease liability- current 8,827 - Operating lease liability- noncurrent 245,827 - Deferred income 327,915 340,294 Due to related parties and VIE holding companies 599,362 658,501 Total liabilities of VIE and its subsidiary $ 10,872,078 $ 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 nine months ended September 30, 2019. The Company recognized operating lease liabilities of approximately $350,000 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. 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 | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
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 | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 - INVENTORIES Inventories consisted of raw materials, 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 September 30, 2019 and December 31, 2018 inventories consisted of the following: September 30, 2019 December 31, 2018 Current portion Long-term portion Total Current portion Long-term portion Total Raw materials $ 16,364 $ 88,897 $ 105,261 $ 40,240 $ 92,801 $ 133,041 Finished goods 1,104,728 2,013,869 3,118,597 6,194,707 2,794,335 8,989,042 Yew seedlings - - - - 16,023 16,023 Total 1,121,092 2,102,766 3,223,858 6,234,947 2,903,159 9,138,106 Inventory write-down (130,618 ) (922,198 ) (1,052,816 ) (29,993 ) (1,079,031 ) (1,109,024 ) Inventories, net $ 990,474 $ 1,180,568 $ 2,171,042 $ 6,204,954 $ 1,824,128 $ 8,029,082 Inventories as of September 30, 2019 and December 31, 2018 consisted of the inventory purchased from related parties are as follows: September 30, December 31, 2019 2018 Inventories, net $ 60,008 $ 182,905 Inventories - related parties, net 930,466 6,022,049 Total $ 990,474 $ 6,204,954 September 30, December 31, 2019 2018 Long-term inventories, net $ 474,986 $ 894,357 Long-term inventories - related parties, net 705,582 929,771 Total $ 1,180,568 $ 1,824,128 |
Taxes
Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 5 - TAXES 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 nine months ended September 30, 2019 and 2018: Nine months ended September 30, 2019 2018 U.S. federal income tax rate 21.00 % 21.00 % Tax rate difference 4.48 % 4.00 % Loss not subject income tax 2.60 % 12.81 % PRC tax exemption and reduction (28.09 )% (37.81 )% GILTI 0.35 % (50.90 )% Others (0.69 )% - % Effective tax rate (0.35 )% (50.90 )% 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 September 30, 2019 and December 31, 2018, the Company had current income tax payable of $114,547 and $114,547 and noncurrent income tax payable of $1,088,194 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 nine months ended September 30, 2019 and 2018, the GILTI tax expense was nil. As of September 30, 2019 and December 31, 2018, the Company had GILTI tax payable approximately of $29,000 and $60,000. |
Short-Term Borrowings
Short-Term Borrowings | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | NOTE 6 - SHORT-TERM BORROWINGS 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 nine months ended September 30, 2019 and 2018, the Company obtained short-term loans from CEB in the total amount of $4,714,000 and $4,406,000, respectively, under this credit agreement and paid off in the total amount of $5,130,000 and $5,133,000, respectively. As of September 30, 2019 and December 31, 2018, the balance of loans borrowed from CEB was $2,434,000 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 $2,102,000 at September 30, 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. HDS paid off the loan in full on July 24, 2019. 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 $700,000 at September 30, 2019), payable 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. HDS paid off the loan in full on August 14, 2019. On May 13, 2019, HDS entered into a loan agreement with Postal Saving Bank of China, pursuant to which HDS obtained three bank loans in the amount of RMB7,300,000, RMB8,100,000 and RMB4,600,000, respectively (approximately $1,023,000, $1,135,000 and $645,000 at September 30, 2019), payable to on June 3, 2020, June 11, 2020 and July 1, 2020 respectively. All of the loans carry an interest rate of 5.2200% per annum and are payable monthly. Zhiguo Wang and his wife Madame Qi, collateralized their buildings and land use right with Postal Saving Bank of China to secure the loan. In addition, Zhiguo Wang and his wife Madame Qi provided guarantees to the loans. On July 26, 2019, 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 $2,102,000 at September 30, 2019), payable on July 25, 2020. The loan carries an interest rate of 6.525% 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 20, 2019, 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 $700,000 at September 30, 2019), payable on August 19, 2020. The loan carries an interest rate of 6.525% 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 nine months ended September 30, 2019 and 2018, interest expense was approximately $279,000 and $183,000, respectively. During the three months ended September 30, 2019 and 2018, interest expense was approximately $97,000 and $46,000, respectively. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2019 and 2018 were summarized in the following table. Nine months ended September 30, 2019 Nine months ended September 30, 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 - - 200,000 - Expired - - 15,503,475 0.22 Forfeited - - - - Balance at end of period 7,738,737 0.22 9,168,737 0.22 Option exercisable at end of period 7,738,737 0.22 9,068,737 0.22 The following table summarizes the shares of the Company's common stock issuable upon exercise of options outstanding at September 30, 2019: Stock Options Outstanding Stock Options Exercisable Range of Exercise Price Number Outstanding at September 30, 2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable at September 30, 2019 Weighted Average Exercise Price $ 0.22-0.25 7,738,737 0.25 $ 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 $0.081 as of September 30, 2019. Stock option expense recognized during the nine months ended September 30, 2019 and 2018 amounted to $Nil and $1,067,548, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2019 and 2018: For the Three Months Ended September 30, For the Nine months ended September 30, 2019 2018 2019 2018 Net income (loss) available to common stockholders for basic and diluted net income per share of common stock $ 1,183,633 $ (380,818 ) $ 2,997,098 $ 1,381,376 Weighted average common stock outstanding - basic 51,700,000 52,018,478 51,781,044 51,923,352 Effect of dilutive securities: Non-vested restricted common stock - - - - Stock options issued to directors/officers/employees - - - 2,884,928 Weighted average common stock outstanding - diluted 51,700,000 52,018,478 51,781,044 54,808,280 Net income per common share - basic $ 0.02 $ (0.01 ) $ 0.06 $ 0.03 Net income per common share - diluted $ 0.02 $ (0.01 ) $ 0.06 $ 0.03 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 | 9 Months Ended |
Sep. 30, 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 Nine months ended Operating lease cost Selling, general and administrative expense $ 113,476 Net lease cost $ 113,476 Balance sheet information related to leases consists of the following: Classification September 30, Assets Operating lease ROU assets Right-of-use assets $ 218,195 Total leased assets $ 218,195 Liabilities Current portion Operating lease liabilities Current maturities of operating lease liabilities $ 24,389 Non-current portion Operating lease liabilities Operating lease liabilities 247,147 Total lease liabilities $ 271,536 Weighted average remaining lease term Operating leases 5.86 years Weighted average discount rate Operating leases 6.44 % Cash flow information related to leases consists of the following: Nine months ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 58,004 The minimum future lease payments as of September 30, 2019 are as follows: Years Ending December 31, Operating Leases 2019 $ 13,192 2020 30,987 2021 27,318 2022 25,861 2023 25,861 After 2024 311,784 Total lease payments 435,003 Less: Interest (163,467 ) Present value of lease liabilities $ 271,536 |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Major Customers | 9 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | NOTE 10 - CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS Customers For the nine months ended September 30, 2019 and 2018, customers accounting for 10% or more of the Company's revenue were as follows: For the Nine months ended September 30, Customer 2019 2018 A (Yew Pharmaceutical, a related party) 31.3 % 56.7 % B (HongKong YIDA Commerce Co., Limited, a related party) 29.2 % * % D (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) 38.8 % * % E (DMSU, a related party) - % 21.9 % * Less than 10% Accounts receivable as of Customer September 30, December 31, A (Yew Pharmaceutical, a related party) - % 31 % B (HongKong YIDA Commerce Co., Limited, a related party) 22 % 24 % D (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) 78 % - Suppliers For the nine months ended September 30, 2019 and 2018, suppliers accounting for 10% or more of the Company's purchase were as follows: For the Nine months ended September 30, Supplier 2019 2018 A (Yew Pharmaceutical, a related party) 44 % 39 % B (Heilongjiang Zishan Technology Co., Ltd., a related party) * % 12 % C (Haixiang Liu) 10 % * % Accounts payable and Supplier September 30, December 31, A (Yew Pharmaceutical, a related party) 58 % - B (Heilongjiang Zishan Technology Co., Ltd., a related party) 13 % - C (Haixiang Liu) - - At September 30, 2019 and December 31, 2018, the Company's cash balances by geographic area were as follows: Country September 30, December 31, United States $ 4,245 $ 40,405 China 623,499 481,265 Total Cash $ 627,744 $ 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 September 30, 2019 and December 31, 2018, approximately $107,000 and $200,000 of the Company's cash held by financial institutions, was insured, and the remaining balance of approximately $521,000 and $330,000 was not insured, respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 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 DMSU Digital Technology Limited("DMSU") Significantly influenced by the Company 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 Weihong Zhang Employee of the Company Xue Wang Employee of the Company Cai Wang Employee of 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 $146,000) 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 nine months ended September 30, 2019 and 2018, total revenues from Yew Pharmaceutical under the above agreement amounted to $7,755,545 and $18,075,032, and corresponding cost of revenues amounted to $6,159,705 and $13,863,380, respectively. At September 30, 2019 and December 31, 2018, the Company had $Nil and $1,408,313 accounts receivable from Yew Pharmaceutical, respectively. For the nine months ended September 30, 2019 and 2018, the total purchase of yew candles, pine needle extracts, composite northeast yew extract and mixed essential oil from Yew Pharmaceutical amounted to $11,018,135 and $18,033,411, respectively. At September 30, 2019 and December 31, 2018, the Company had $878,875 and $Nil accounts payable to Yew Pharmaceutical, respectively. Transactions with DMSU As of September 30, 2019, the Company recovered approximately $1,034,000 of accounts receivable previously written off from DMSU. The amount was recorded in bad debt recovery as of September 30, 2019. Transactions with HBP For the nine months ended September 30, 2019 and 2018, HBP paid off operation expense on behalf of HYF in the amount of $874 and $5,834, respectively. As of September 30, 2019 and December 31, 2018, HYF had due to HBP in the amount of $100,292 and $102,770, respectively, which was included in due to related parties in the accompanying consolidated balance sheets. Transactions with HDS Development As of September 30, 2019 and December 31, 2018, the Company had $Nil and $981,613 accounts receivable, which were net of allowance for doubtful account $Nil and $763,476 from HDS Development, respectively. Transactions with ZTC During the nine months ended September 30, 2019, HDS purchased yew forest assets from ZTC in the amount of $2,135,919. Since the assets purchase occurred between entities under common control, the Company recorded the assets received at historical carrying costs recorded by ZTC, which amounted to $1,730,920. The difference of $404,999 between the actual contract price and carrying costs is recorded as additional paid-in capital. During the nine months ended September 30, 2018, HDS purchased yew forest assets from ZTC in the amount of $5,616,194. At September 30, 2019 and December 31, 2018, the Company had $197,064 and $Nil balance payable to ZTC. Transactions with Xinlin During the nine months ended September 30, 2019, HDS purchased yew forest assets from Xinlim in the amount of $149,378. Since the assets purchase occurred between entities under common control, the Company recorded the assets received at historical carrying costs recorded by Xinlin, which amounted to $122,788. The difference of $26,589 between the actual contract price and carrying costs is recorded as additional paid-in capital. During the nine months ended September 30, 2018, HDS purchased yew forest assets from Xinlin in the amount of $2,622,473. At September 30, 2019 and December 31, 2018, the Company had $143,638 and $Nil balance payable to ZTC, respectively. Transactions with YIDA For the nine months ended September 30, 2019 and 2018, total revenues from YIDA amounted to $7,236,000 and $Nil. At September 30, 2019 and December 31, 2018, the Company had $2,200,000 and $1,108,808 accounts receivable from YIDA, respectively. Transactions with Lifeforfun Limited At September 30, 2019 and December 31, 2018, the Company had $Nil and $1,080,912 accounts receivable, which were net of allowance for doubtful account $Nil and $74,448 from Lifeforfun Limited, respectively. Transactions with Jinguo Wang During the nine months ended September 30, 2019 and 2018, HDS purchased yew forest assets from Jinguo Wang in the amount of $1,085,255 and $1,426,873, respectively. Transactions with Chunping Wang During the nine months ended September 30, 2019 , HDS purchased yew forest assets from Chunping Wang in the amount of $1,285,377. Transactions with Weihong Zhang During the nine months ended September 30, 2019, HDS purchased yew forest assets from Weihong Zhang in the amount of $794,252. Transactions with Xue Wang During the nine months ended September 30, 2019, HDS purchased yew forest assets from Xue Wang in the amount of $158,093. Transactions with Cai Wang During the nine months ended September 30, 2019, HDS purchased yew forest assets from Cai Wang in the amount of $81,611. 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 RMB162,450 (approximately $24,000). The payment for the first five years of the ZTC Lease was due prior to December 31, 2010 and beginning in 2011, the Company is required to make full payment for the land use rights in advance for each subsequent five-year period. For the nine months ended September 30, 2019 and 2018, rent expense related to the ZTC Lease approximately amounted to $18,000 and $19,000, respectively. At September 30, 2019 and December 31, 2018, prepaid rent to ZTC approximately amounted to $11,000 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 nine months ended September 30, 2019 and 2018, rent expense related to the Office Lease approximately amounted to $1,600 and $1,700, respectively. As of September 30, 2019 and December 31, 2018, the unpaid rent was approximately $1,700 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 nine months ended September 30, 2019 and 2018, rent expense related to the JSJ Lease approximately amounted to $1,100 and $1,100, respectively. As of September 30, 2019 and December 31, 2018, the unpaid rent was approximately $5,300 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 nine months ended September 30, 2019 and 2018, rent expense related to the A'cheng Lease approximately amounted $2,600 and $2,900, respectively. At September 30, 2019 and December 31, 2018, the unpaid rent was $Nil and $2,000, respectively, which was included in due to 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 nine months ended September 30, 2019 and 2018, rent expense related to the Jixing Lease amounted $1,100 and $1,150, respectively. As of September 30, 2019 and December 31, 2018, the prepaid rent to Ms. Qi amounted to approximately $700 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 September 30, 2019 and December 31, 2018: September 30, December 31, Zhiguo Wang and Guifang Qi $ 498,002 $ 477,246 HBP 100,292 102,770 Total $ 598,294 * $ 580,016 * *: The amounts due to related parties bear no interest and are payable on demand. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2019 and 2018 were as follows: For the Nine months ended September 30, Geographic Areas 2019 2018 Revenue PRC 24,564,383 31,514,139 USA 205,694 376,604 Elimination Adjustment (23,325 ) - Total Revenue $ 24,746,752 $ 31,890,743 Income (Loss) from operations PRC $ 3,178,243 $ 4,925,873 USA (424,549 ) (1,427,087 ) Total Income (Loss) from operations $ 2,753,694 $ 3,498,786 Net income (loss) PRC $ 3,361,756 $ 4,237,913 USA (364,658 ) (2,856,537 ) Total net income (loss) $ 2,997,098 $ 1,381,376 The geographical distributions of the Company's financial information for the three months ended September 30, 2019 and 2018 were as follows: For the Three Months Ended September 30, Geographic Areas 2019 2018 Revenue PRC 604,204 13,830,161 USA 86,647 209,076 Elimination Adjustment (23,325 ) - Total Revenue $ 667,526 $ 14,039,237 Income (Loss) from operations PRC $ 1,067,778 $ 1,350,449 USA 4,441 (137,343 ) Total Income (Loss) from operations $ 1,072,219 $ 1,213,106 Net income (loss) PRC $ 1,138,524 $ 1,188,418 USA 45,109 (1,569,236 ) Total net income (loss) $ 1,183,633 $ (380,818 ) The geographical distribution of the Company's financial information as of September 30, 2019 and December 31, 2018 were as follows: As of As of December 31, Geographic Areas 2019 2018 Long-term assets PRC $ 41,839,253 $ 35,866,829 USA 775,457 1,436,101 Total long-term assets $ 42,614,710 $ 37,302,930 Reportable assets PRC $ 55,244,766 $ 50,107,147 USA 2,169,813 2,289,019 Elimination adjustment (3,129,210 ) (2,704,100 ) Total reportable assets $ 54,285,369 $ 49,692,066 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14 SUBSEQUENT EVENTS On October 3, 2019 the Board of Directors approved to extend the expiration date of 5,000,000 options issued to Zhiguo Wang and 2,488,737 options issued to Guifang Qi from December 31, 2019 to December 31, 2021, and 200,000 options issued to William B. Barnett from October 11, 2019 to December 31, 2021. On October 29, 2019, the Board of Directors approved 2019 Equity Incentive Plan and authorized an aggregate 5,000,000 shares of the Company's Common Stock, subject to stock splits, recapitalizations and other adjustments, for issuance to all employees (including, without limitation, officers and directors who are also employees) of the Company or any subsidiary of the Company (each a "Subsidiary"), to any non-employee director, consultants and to independent contractors of the Company or any Subsidiary, and any joint venture partners (including, without limitation, officers, directors and partners thereof) of the Company or any Subsidiary. The Company has evaluated all subsequent events through the date these consolidated financial statements were issued and determine that there were no other subsequent events or transactions that require recognition or disclosures in the consolidated financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 9 Months Ended |
Sep. 30, 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 US$100,000 100% Holding company Yew Bio-Pharm Holdings Limited ("Yew Bio-Pharm (HK)") Hong Kong HK$10,000 100% Holding company of JSJ Harbin Yew Science and Technology Development Co., Ltd. ("HDS") PRC RMB45,000,000 Contractual arrangements Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings; 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 RMB100,000 100%(1) Sales of wood ear mushroom drink MC Commerce Holding Inc. ("MC") State of California, 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) | 9 Months Ended |
Sep. 30, 2019 | |
Principles of Consolidation [Abstract] | |
Schedule of carrying amount of assets and liabilities related to variable interest entity | September 30, 2019 December 31, 2018 Assets Cash $ 607,788 $ 478,293 Accounts receivable 7,692,600 - Accounts receivable - related parties, net of allowance for doubtful account $Nil and $837,929 2,200,000 4,579,666 Inventories (current and long-term), net 773,634 6,567,144 Prepaid expenses and other assets 70,958 34,492 Prepaid expenses - related parties 11,382 32,318 Property and equipment, net 461,731 506,949 Long-term investment in MC 2,866,080 2,449,757 Land use rights and yew forest assets, net 40,698,641 34,914,793 Operating lease right of use 200,963 - VAT recoverables 56,191 985,831 Total assets of VIE and its subsidiary $ 55,639,968 $ 50,549,243 Liabilities Accrued expenses and other payables $ 114,919 $ 237,114 Accounts payable 7,409 10,410 Accounts payable - related party 878,875 - Payable for acquisition of yew forests 295,852 - Payable for acquisition of yew forests - related party 340,702 - Advance from customer 140 145 Advance from customer-related party 12,869 21,295 Short-term borrowings 8,039,381 5,758,517 Operating lease liability- current 8,827 - Operating lease liability- noncurrent 245,827 - Deferred income 327,915 340,294 Due to related parties and VIE holding companies 599,362 658,501 Total liabilities of VIE and its subsidiary $ 10,872,078 $ 7,026,276 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | September 30, 2019 December 31, 2018 Current portion Long-term portion Total Current portion Long-term portion Total Raw materials $ 16,364 $ 88,897 $ 105,261 $ 40,240 $ 92,801 $ 133,041 Finished goods 1,104,728 2,013,869 3,118,597 6,194,707 2,794,335 8,989,042 Yew seedlings - - - - 16,023 16,023 Total 1,121,092 2,102,766 3,223,858 6,234,947 2,903,159 9,138,106 Inventory write-down (130,618 ) (922,198 ) (1,052,816 ) (29,993 ) (1,079,031 ) (1,109,024 ) Inventories, net $ 990,474 $ 1,180,568 $ 2,171,042 $ 6,204,954 $ 1,824,128 $ 8,029,082 |
Schedule of inventory purchased from related parties | September 30, December 31, 2019 2018 Inventories, net $ 60,008 $ 182,905 Inventories - related parties, net 930,466 6,022,049 Total $ 990,474 $ 6,204,954 September 30, December 31, 2019 2018 Long-term inventories, net $ 474,986 $ 894,357 Long-term inventories - related parties, net 705,582 929,771 Total $ 1,180,568 $ 1,824,128 |
Taxes (Tables)
Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of difference between the U.S. statutory federal tax rate and company's effective tax rate | Nine months ended September 30, 2019 2018 U.S. federal income tax rate 21.00 % 21.00 % Tax rate difference 4.48 % 4.00 % Loss not subject income tax 2.60 % 12.81 % PRC tax exemption and reduction (28.09 )% (37.81 )% GILTI 0.35 % (50.90 )% Others (0.69 )% - % Effective tax rate (0.35 )% (50.90 )% |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of stock option activities | Nine months ended September 30, 2019 Nine months ended September 30, 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 - - 200,000 - Expired - - 15,503,475 0.22 Forfeited - - - - Balance at end of period 7,738,737 0.22 9,168,737 0.22 Option exercisable at end of period 7,738,737 0.22 9,068,737 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 September 30, 2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable at September 30, 2019 Weighted Average Exercise Price $ 0.22-0.25 7,738,737 0.25 $ 0.22 7,738,737 $ 0.22 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of basic and diluted net income per share | For the Three Months Ended September 30, For the Nine months ended September 30, 2019 2018 2019 2018 Net income (loss) available to common stockholders for basic and diluted net income per share of common stock $ 1,183,633 $ (380,818 ) $ 2,997,098 $ 1,381,376 Weighted average common stock outstanding - basic 51,700,000 52,018,478 51,781,044 51,923,352 Effect of dilutive securities: Non-vested restricted common stock - - - - Stock options issued to directors/officers/employees - - - 2,884,928 Weighted average common stock outstanding - diluted 51,700,000 52,018,478 51,781,044 54,808,280 Net income per common share - basic $ 0.02 $ (0.01 ) $ 0.06 $ 0.03 Net income per common share - diluted $ 0.02 $ (0.01 ) $ 0.06 $ 0.03 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of lease expense | Classification Nine months ended Operating lease cost Selling, general and administrative expense $ 113,476 Net lease cost $ 113,476 |
Schedule of balance sheet information related to leases | Classification September 30, Assets Operating lease ROU assets Right-of-use assets $ 218,195 Total leased assets $ 218,195 Liabilities Current portion Operating lease liabilities Current maturities of operating lease liabilities $ 24,389 Non-current portion Operating lease liabilities Operating lease liabilities 247,147 Total lease liabilities $ 271,536 Weighted average remaining lease term Operating leases 5.86 years Weighted average discount rate Operating leases 6.44 % |
Schedule of cash flow information related to leases | Nine months ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 58,004 |
Schedule of minimum future lease payments | Years Ending December 31, Operating Leases 2019 $ 13,192 2020 30,987 2021 27,318 2022 25,861 2023 25,861 After 2024 311,784 Total lease payments 435,003 Less: Interest (163,467 ) Present value of lease liabilities $ 271,536 |
Concentrations of Credit Risk_2
Concentrations of Credit Risk and Major Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Schedule of cash balances by geographic area | Country September 30, December 31, United States $ 4,245 $ 40,405 China 623,499 481,265 Total Cash $ 627,744 $ 521,670 |
Customer [Member] | |
Schedule of major customers and suppliers | For the Nine months ended September 30, Customer 2019 2018 A (Yew Pharmaceutical, a related party) 31.3 % 56.7 % B (HongKong YIDA Commerce Co., Limited, a related party) 29.2 % * % D (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) 38.8 % * % E (DMSU, a related party) - % 21.9 % * Less than 10% Accounts receivable as of Customer September 30, December 31, A (Yew Pharmaceutical, a related party) - % 31 % B (HongKong YIDA Commerce Co., Limited, a related party) 22 % 24 % D (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) 78 % - |
Supplier [Member] | |
Schedule of major customers and suppliers | For the Nine months ended September 30, Supplier 2019 2018 A (Yew Pharmaceutical, a related party) 44 % 39 % B (Heilongjiang Zishan Technology Co., Ltd., a related party) * % 12 % C (Haixiang Liu) 10 % * % Accounts payable and Supplier September 30, December 31, A (Yew Pharmaceutical, a related party) 58 % - B (Heilongjiang Zishan Technology Co., Ltd., a related party) 13 % - C (Haixiang Liu) - - |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 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 DMSU Digital Technology Limited("DMSU") Significantly influenced by the Company 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 Weihong Zhang Employee of the Company Xue Wang Employee of the Company Cai Wang Employee of 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 | September 30, December 31, Zhiguo Wang and Guifang Qi $ 498,002 $ 477,246 HBP 100,292 102,770 Total $ 598,294 * $ 580,016 * *: The amounts due to related parties bear no interest and are payable on demand. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of geographical distributions of company's financial information | For the Nine months ended September 30, Geographic Areas 2019 2018 Revenue PRC 24,564,383 31,514,139 USA 205,694 376,604 Elimination Adjustment (23,325 ) - Total Revenue $ 24,746,752 $ 31,890,743 Income (Loss) from operations PRC $ 3,178,243 $ 4,925,873 USA (424,549 ) (1,427,087 ) Total Income (Loss) from operations $ 2,753,694 $ 3,498,786 Net income (loss) PRC $ 3,361,756 $ 4,237,913 USA (364,658 ) (2,856,537 ) Total net income (loss) $ 2,997,098 $ 1,381,376 For the Three Months Ended September 30, Geographic Areas 2019 2018 Revenue PRC 604,204 13,830,161 USA 86,647 209,076 Elimination Adjustment (23,325 ) - Total Revenue $ 667,526 $ 14,039,237 Income (Loss) from operations PRC $ 1,067,778 $ 1,350,449 USA 4,441 (137,343 ) Total Income (Loss) from operations $ 1,072,219 $ 1,213,106 Net income (loss) PRC $ 1,138,524 $ 1,188,418 USA 45,109 (1,569,236 ) Total net income (loss) $ 1,183,633 $ (380,818 ) As of As of December 31, Geographic Areas 2019 2018 Long-term assets PRC $ 41,839,253 $ 35,866,829 USA 775,457 1,436,101 Total long-term assets $ 42,614,710 $ 37,302,930 Reportable assets PRC $ 55,244,766 $ 50,107,147 USA 2,169,813 2,289,019 Elimination adjustment (3,129,210 ) (2,704,100 ) Total reportable assets $ 54,285,369 $ 49,692,066 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) | 9 Months Ended | |
Sep. 30, 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 ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | $ 55,639,968 | $ 50,549,243 |
Total liabilities of VIE and its subsidiary | 10,872,078 | 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 | 607,788 | 478,293 |
Accounts receivable [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 7,692,600 | |
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 | 2,200,000 | 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 | 773,634 | 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 | 70,958 | 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 | 11,382 | 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 | 461,731 | 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 | 2,866,080 | 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 | 40,698,641 | 34,914,793 |
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 | 200,963 | |
VAT recoverables [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total assets of VIE and its subsidiary | 56,191 | 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 | 114,919 | 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 | 7,409 | 10,410 |
Accounts payable-related parties [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 878,875 | |
Payable for acquisition of yew forests [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 295,852 | |
Payable for acquisition of yew forests - related party [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 340,702 | |
Advance from customer [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 140 | 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 | 12,869 | 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 | 8,039,381 | 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 | 8,827 | |
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 | 245,827 | |
Deferred income [Member] | ||
Schedule of carrying amount of assets and liabilities related to variable interest entity | ||
Total liabilities of VIE and its subsidiary | 327,915 | 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 | $ 599,362 | $ 658,501 |
Principles of Consolidation (_2
Principles of Consolidation (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 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"). Within ninety (90) days after the end of each fiscal year, HDS shall (a) deliver to JSJ financial statements of HDS for such fiscal year, which shall be audited and certified by an independent certified public accountant approved by JSJ, and (b) pay an amount to JSJ equal to the shortfall, if any, of the aggregate net income of HDS for such fiscal year, as shown in such audited financial statements, as compared to the aggregate amount of the Monthly Payments paid by HDS to JSJ in such fiscal year. HDS also granted an irrevocable and exclusive option to JSJ to purchase any and all of the assets of HDS, to the extent permitted under PRC law, at the lowest price permitted by PRC law. Unless earlier terminated in accordance with the provisions of the Business Cooperation Agreement or other agreements separately executed between JSJ and HDS, the Business Cooperation Agreement is for a term of ten years and expires on November 5, 2020; | |
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. The term of each Option Agreement is ten years commencing on November 5, 2020 and may be extended at the sole election of JSJ. | |
Recognized operating lease liabilities | $ 350,000 | |
Allowance for doubtful account, net | $ 0 | $ 837,929 |
Inventories (Details)
Inventories (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Schedule of inventories | ||
Inventories, net, Current portion | $ 990,474 | $ 6,204,954 |
Inventories, net, Long-term portion | 1,180,568 | 1,824,128 |
Inventory write-down, Current portion | (130,618) | (29,993) |
Inventory write-down, Long-term portion | (922,198) | (1,079,031) |
Inventory write-down, Total | (1,052,816) | (1,109,024) |
Inventories, net, Total | 2,171,042 | 8,029,082 |
Raw materials [Member] | ||
Schedule of inventories | ||
Inventories, net, Current portion | 16,364 | 40,240 |
Inventories, net, Long-term portion | 88,897 | 92,801 |
Inventories, net, Total | 105,261 | 133,041 |
Finished goods [Member] | ||
Schedule of inventories | ||
Inventories, net, Current portion | 1,104,728 | 6,194,707 |
Inventories, net, Long-term portion | 2,013,869 | 2,794,335 |
Inventories, net, Total | 3,118,597 | 8,989,042 |
Yew Seedlings [Member] | ||
Schedule of inventories | ||
Inventories, net, Current portion | ||
Inventories, net, Long-term portion | 16,023 | |
Inventories, net, Total | 16,023 | |
Total [Member] | ||
Schedule of inventories | ||
Inventories, net, Current portion | 1,121,092 | 6,234,947 |
Inventories, net, Long-term portion | 2,102,766 | 2,903,159 |
Inventories, net, Total | $ 3,223,858 | $ 9,138,106 |
Inventories (Details 1)
Inventories (Details 1) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Inventories, net | $ 60,008 | $ 182,905 |
Inventories - related parties, net | 930,466 | 6,022,049 |
Total | 990,474 | 6,204,954 |
Long-term inventories, net | 474,986 | 894,357 |
Long-term inventories - related parties, net | 705,582 | 929,771 |
Total | $ 1,180,568 | $ 1,824,128 |
Taxes (Details)
Taxes (Details) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 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 | 4.48% | 4.00% |
Loss not subject income tax | 2.60% | 12.81% |
PRC tax exemption and reduction | (28.09%) | (37.81%) |
GILTI | 0.35% | (50.90%) |
Other | (0.69%) | |
Effective tax rate | (0.35%) | (50.90%) |
Taxes (Details Textual)
Taxes (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Dec. 22, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Taxes (Textual) | ||||||
United States federal income tax rate | 21.00% | 21.00% | ||||
Provision for income taxes | $ (40,933) | $ 1,431,836 | $ 10,554 | $ 1,431,836 | ||
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 September 30, 2019 and December 31, 2018, the Company had current income tax payable of $114,547 and $114,547 and noncurrent income tax payable of $1,088,194 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 | 29,000 | 29,000 | $ 60,000 | |||
Current income tax payable | 114,547 | 114,547 | 114,547 | |||
Noncurrent income tax payable | $ 1,088,194 | $ 1,088,194 | $ 1,202,741 | |||
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 | 9 Months Ended | |||||||||||||||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Aug. 20, 2019USD ($) | Jul. 26, 2019USD ($) | May 13, 2019USD ($) | May 13, 2019CNY (¥) | Aug. 27, 2018USD ($) | Aug. 27, 2018CNY (¥) | Aug. 06, 2018USD ($) | Aug. 06, 2018CNY (¥) | Jun. 30, 2018USD ($) | Nov. 15, 2017USD ($) | Nov. 15, 2017CNY (¥) | Dec. 22, 2016USD ($) | Dec. 22, 2016CNY (¥) | Nov. 10, 2016USD ($) | Nov. 10, 2016CNY (¥) | |
Short-Term Borrowings (Textual) | |||||||||||||||||||
Loans borrowed from CEB | $ 10,543,374 | $ 7,331,599 | |||||||||||||||||
Total amount paid off | 4,714,000 | 4,406,000 | |||||||||||||||||
Balance of short-term loans | $ 2,434,000 | 2,434,000 | $ 2,851,000 | ||||||||||||||||
Interest expense | $ 97,181 | $ 45,549 | 278,925 | 182,659 | |||||||||||||||
Yingkou Bank [Member] | |||||||||||||||||||
Short-Term Borrowings (Textual) | |||||||||||||||||||
Bank loan amount | $ 700,000 | $ 2,102,000 | $ 700,000 | $ 2,102,000 | |||||||||||||||
Loan interest rate | 5.4375% | 5.4375% | 5.4375% | 5.4375% | |||||||||||||||
Yingkou Bank [Member] | RMB [Member] | |||||||||||||||||||
Short-Term Borrowings (Textual) | |||||||||||||||||||
Bank loan amount | $ 5,000,000 | $ 15,000,000 | ¥ 5,000,000 | ¥ 15,000,000 | |||||||||||||||
Loan interest rate | 6.525% | 6.525% | |||||||||||||||||
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 | ||||||||||||||||||
Loans borrowed from CEB | 4,714,000 | 4,406,000 | |||||||||||||||||
Total amount paid off | $ 5,130,000 | $ 5,133,000 | |||||||||||||||||
CEB [Member] | RMB [Member] | |||||||||||||||||||
Short-Term Borrowings (Textual) | |||||||||||||||||||
Bank loan amount | ¥ | ¥ 20,000,000 | ||||||||||||||||||
Postal Saving Bank [Member] | |||||||||||||||||||
Short-Term Borrowings (Textual) | |||||||||||||||||||
Bank loan amount | $ 1,023,000 | ||||||||||||||||||
Loan interest rate | 5.22% | 5.22% | |||||||||||||||||
Postal Saving Bank [Member] | RMB [Member] | |||||||||||||||||||
Short-Term Borrowings (Textual) | |||||||||||||||||||
Bank loan amount | ¥ | ¥ 7,300,000 | ||||||||||||||||||
Postal Saving Bank One [Member] | |||||||||||||||||||
Short-Term Borrowings (Textual) | |||||||||||||||||||
Bank loan amount | $ 1,135,000 | ||||||||||||||||||
Loan interest rate | 5.22% | 5.22% | |||||||||||||||||
Postal Saving Bank One [Member] | RMB [Member] | |||||||||||||||||||
Short-Term Borrowings (Textual) | |||||||||||||||||||
Bank loan amount | ¥ | ¥ 8,100,000 | ||||||||||||||||||
Postal Saving Bank One [Member] | |||||||||||||||||||
Short-Term Borrowings (Textual) | |||||||||||||||||||
Bank loan amount | $ 645,000 | ||||||||||||||||||
Loan interest rate | 5.22% | 5.22% | |||||||||||||||||
Postal Saving Bank One [Member] | RMB [Member] | |||||||||||||||||||
Short-Term Borrowings (Textual) | |||||||||||||||||||
Bank loan amount | $ 4,600,000 | ||||||||||||||||||
Maximum [Member] | |||||||||||||||||||
Short-Term Borrowings (Textual) | |||||||||||||||||||
Loan interest rate | 4.80% | 4.80% | |||||||||||||||||
Minimum [Member] | |||||||||||||||||||
Short-Term Borrowings (Textual) | |||||||||||||||||||
Loan interest rate | 4.30% | 4.30% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Stock option [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 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 | 200,000 | |
Number of Stock Options, Expired | 15,503,475 | |
Number of Stock Options, Forfeited | ||
Number of Stock Options, Ending balance | 7,738,737 | 9,168,737 |
Number of Stock Options, Options exercisable | 7,738,737 | 9,068,737 |
Weighted Average Exercise Price, Beginning balance | $ 0.22 | $ 0.22 |
Weighted Average Exercise Price, Issued | ||
Weighted Average Exercise Price, Exercised | ||
Weighted Average Exercise Price, Expired | 0.22 | |
Weighted Average Exercise Price, Forfeited | ||
Weighted Average Exercise Price, Ending balance | 0.22 | 0.22 |
Weighted Average Exercise Price, Options exercisable | $ 0.22 | $ 0.22 |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) | 9 Months Ended |
Sep. 30, 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) | 2 months 30 days |
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 | 9 Months Ended | ||
Feb. 28, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stockholders' Equity (Textual) | |||||
Common stock exercise price | $ 0.081 | $ 0.081 | |||
Stock option expense | $ 2,548 | $ 1,067,548 | |||
Outstanding stock options intrinsic value | |||||
Exercisable stock options intrinsic value | |||||
Chineseinvestor [Member] | |||||
Stockholders' Equity (Textual) | |||||
Issuance of restricted common stock, shares | 375,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income available to common stockholders for basic and diluted net income per share of common stock | $ 1,183,633 | $ (380,818) | $ 2,997,098 | $ 1,381,376 |
Weighted average common stock outstanding - basic | 51,700,000 | 52,018,478 | 51,781,044 | 51,923,352 |
Effect of dilutive securities: | ||||
Non-vested restricted common stock | ||||
Stock options issued to directors/officers/employees | ||||
Weighted average common stock outstanding - diluted | 51,700,000 | 52,018,478 | 51,781,044 | 54,808,280 |
Net income per common share - basic | $ 0.02 | $ (0.01) | $ 0.06 | $ 0.03 |
Net income per common share - diluted | $ 0.02 | $ (0.01) | $ 0.06 | $ 0.03 |
Leases (Details)
Leases (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost, Selling, general and administrative expense | $ 113,476 |
Net lease cost | $ 113,476 |
Leases (Details 1)
Leases (Details 1) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Operating lease ROU assets | $ 218,195 | |
Total leased assets | 218,195 | |
Current portion | ||
Current maturities of operating lease liabilities | 24,389 | |
Non-current portion | ||
Operating lease liabilities | 247,147 | |
Total lease liabilities | $ 271,536 | |
Weighted average remaining lease term | ||
Operating leases | 5 years 10 months 10 days | |
Weighted average discount rate | ||
Operating leases | 6.44% |
Leases (Details 2)
Leases (Details 2) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 58,004 |
Leases (Details 3)
Leases (Details 3) | Sep. 30, 2019USD ($) |
Years Ending December 31, | |
2019 | $ 13,192 |
2020 | 30,987 |
2021 | 27,318 |
2022 | 25,861 |
2023 | 25,861 |
After 2024 | 311,784 |
Total lease payments | 435,003 |
Less: Interest | (163,467) |
Present value of lease liabilities | $ 271,536 |
Leases (Details Textual)
Leases (Details Textual) | Sep. 30, 2019 |
Leases (Textual) | |
Incremental borrowing rate | 6.44% |
Concentrations of Credit Risk_3
Concentrations of Credit Risk and Major Customers (Details) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 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 | 31.30% | 56.70% | |||
Revenue [Member] | B (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 | 29.20% | [1] | |||
Revenue [Member] | D (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) [Member] | |||||
Summary of major customer accounting for 10% or more of the company's revenue | |||||
Concentration of credit risk, percentage | 38.80% | [1] | |||
Revenue [Member] | E (DMSU, a related party) [Member] | |||||
Summary of major customer accounting for 10% or more of the company's revenue | |||||
Concentration of credit risk, percentage | [1] | 21.90% | |||
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] | B (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 | 22.00% | 24.00% | |||
Accounts receivable [Member] | D (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) [Member] | |||||
Summary of major customer accounting for 10% or more of the company's revenue | |||||
Concentration of credit risk, percentage | 78.00% | ||||
[1] | Less than 10% |
Concentrations of Credit Risk_4
Concentrations of Credit Risk and Major Customers (Details 1) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |||
A (Yew Pharmaceutical, a related party) [Member] | |||||
Summary of major suppliers | |||||
Concentration of credit risk, percentage | 44.00% | 39.00% | |||
A (Yew Pharmaceutical, a related party) [Member] | Accounts payable [Member] | |||||
Summary of major suppliers | |||||
Concentration of credit risk, percentage | 58.00% | ||||
B (Heilongjiang Zishan Technology Co., Ltd., a related party) [Member] | |||||
Summary of major suppliers | |||||
Concentration of credit risk, percentage | [1] | 12.00% | |||
B (Heilongjiang Zishan Technology Co., Ltd., a related party) [Member] | Accounts payable [Member] | |||||
Summary of major suppliers | |||||
Concentration of credit risk, percentage | 13.00% | ||||
C (Haixiang Liu) [Member] | |||||
Summary of major suppliers | |||||
Concentration of credit risk, percentage | 10.00% | [1] | |||
C (Haixiang Liu) [Member] | Accounts payable [Member] | |||||
Summary of major suppliers | |||||
Concentration of credit risk, percentage | |||||
[1] | Less than 10% |
Concentrations of Credit Risk_5
Concentrations of Credit Risk and Major Customers (Details 2) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Revenue, Major Customer [Line Items] | ||||
Total Cash | $ 627,744 | $ 521,670 | $ 522,260 | $ 859,830 |
United States [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Cash | 4,245 | 40,405 | ||
China [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Cash | $ 623,499 | $ 481,265 |
Concentrations of Credit Risk_6
Concentrations of Credit Risk and Major Customers (Details Textual) | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018 | Sep. 30, 2019CNY (¥) | Dec. 31, 2018USD ($) | |
Concentrations of Credit Risk and Major Customer (Textual) | ||||
FDIC insured | $ 107,000 | $ 200,000 | ||
FDIC not insured | 521,000 | $ 330,000 | ||
RMB [Member] | ||||
Concentrations of Credit Risk and Major Customer (Textual) | ||||
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] | Revenue [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) | 9 Months Ended |
Sep. 30, 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 |
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 |
DMSU Digital Technology Limited("DMSU") [Member] | |
Schedule of company's transactions with the related parties | |
Nature of Relationship, description | Significantly influenced by the Company |
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 |
Weihong Zhang [Member] | |
Schedule of company's transactions with the related parties | |
Nature of Relationship, description | Employee of the Company |
Xue Wang [Member] | |
Schedule of company's transactions with the related parties | |
Nature of Relationship, description | Employee of the Company |
Cai Wang [Member] | |
Schedule of company's transactions with the related parties | |
Nature of Relationship, description | Employee of the Company |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - A'cheng Lease [Member] | 9 Months Ended |
Sep. 30, 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 ($) | Sep. 30, 2019 | Dec. 31, 2018 | |
Due to related parties, Total | [1] | $ 598,294 | $ 580,016 |
Zhiguo Wang and Guifang Qi [Member] | |||
Due to related parties, Total | 498,002 | 477,246 | |
HBP [Member] | |||
Due to related parties, Total | $ 100,292 | $ 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. 04, 2018USD ($) | Jul. 03, 2018CNY (¥) | Jan. 01, 2015 | Jul. 01, 2012USD ($)a | Jul. 01, 2012CNY (¥)a | Jan. 09, 2010USD ($) | Jan. 09, 2010CNY (¥) | Jan. 01, 2010USD ($) | Jan. 01, 2010CNY (¥) | Mar. 25, 2005USD ($)a | Mar. 25, 2005CNY (¥)a | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Related Party Transactions (Textual) | ||||||||||||||||
Accounts receivable - related parties | $ 2,200,000 | $ 2,200,000 | $ 4,579,666 | |||||||||||||
Cost of revenues | 708,734 | $ 12,574,660 | 22,983,373 | $ 26,593,314 | ||||||||||||
Revenues from related party | 684,178 | $ 6,035,593 | 14,947,466 | 23,712,429 | ||||||||||||
Additional paid-in capital | 9,522,281 | $ 9,522,281 | 9,953,494 | |||||||||||||
HDS [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Agreement expiration date | Mar. 19, 2025 | |||||||||||||||
Agreement expiration period | 23 years | |||||||||||||||
Agreement for the Lease 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 | $ 18,000 | 19,000 | ||||||||||||||
Prepaid rent | 11,000 | 11,000 | 30,000 | |||||||||||||
Agreement for the Lease of Seedling Land with ZTC [Member] | RMB [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
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 | 1,600 | 1,700 | ||||||||||||||
Unpaid rent | 1,700 | 1,700 | ||||||||||||||
Office Lease [Member] | RMB [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Annual payments under operating lease | ¥ | ¥ 15,000 | |||||||||||||||
JSJ Lease [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Agreement expiration date | Jun. 30, 2021 | Jun. 30, 2015 | Jun. 30, 2015 | |||||||||||||
Agreement expiration period | 3 years | 3 years | 3 years | |||||||||||||
Leased Area | a | 30 | 30 | ||||||||||||||
Annual payments under operating lease | $ 1,500 | $ 1,500 | ||||||||||||||
Operating leases, rent expense | 1,100 | 1,100 | ||||||||||||||
Unpaid rent | 5,300 | 5,300 | 6,500 | |||||||||||||
JSJ Lease [Member] | RMB [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Annual payments under operating lease | ¥ | ¥ 10,000 | ¥ 10,000 | ||||||||||||||
A'cheng Lease [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Operating leases, rent expense | 2,600 | 2,900 | ||||||||||||||
Transactions with Yew Pharmaceutical [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Accounts receivable - related parties | 1,408,313 | |||||||||||||||
Advance from customer | 878,875 | 878,875 | ||||||||||||||
Amount payment to related party | 11,018,135 | 18,033,411 | ||||||||||||||
Transactions with Yew Pharmaceutical [Member] | 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 | $ 146,000 | |||||||||||||||
Sales | 7,755,545 | 18,075,032 | ||||||||||||||
Cost of revenues | 6,159,705 | 13,863,380 | ||||||||||||||
Transactions with Yew Pharmaceutical [Member] | Development Agreement [Member] | RMB [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Cultivation price per metric ton | ¥ | ¥ 1,000,000 | |||||||||||||||
Transactions with DMSU [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Accounts receivable - related parties | 1,034,000 | 1,034,000 | ||||||||||||||
Transactions with HBP [Member] | Harbin Yew Food Co., Ltd [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Amount payment to related party | 874 | 5,834 | ||||||||||||||
Unsecured loan | 100,292 | 100,292 | 102,770 | |||||||||||||
Transactions with HDS Development [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Accounts receivable - related parties | 981,613 | |||||||||||||||
Net of allowance for doubtful account | 763,476 | |||||||||||||||
Transactions with ZTC [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Actual contract price and carrying costs | 404,999 | |||||||||||||||
Accounts payable | 197,064 | 197,064 | ||||||||||||||
Assets received at historical carrying costs | 1,730,920 | |||||||||||||||
Transactions with ZTC [Member] | HDS [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Amount payment to related party | 2,135,919 | 5,616,194 | ||||||||||||||
Transactions with Xinlin [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Actual contract price and carrying costs | 26,589 | |||||||||||||||
Accounts payable | 143,638 | 143,638 | ||||||||||||||
Assets received at historical carrying costs | 122,788 | |||||||||||||||
Transactions with Xinlin [Member] | HDS [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Amount payment to related party | 149,378 | 2,622,473 | ||||||||||||||
Transactions with YIDA [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Accounts receivable - related parties | 2,200,000 | 2,200,000 | 1,108,808 | |||||||||||||
Revenues from related party | 7,236,000 | |||||||||||||||
Transactions with Lifeforfun Limited [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Accounts receivable - related parties | 1,080,912 | |||||||||||||||
Net of allowance for doubtful account | 74,448 | |||||||||||||||
Transactions with Jinguo Wang [Member] | HDS [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Amount payment to related party | 1,085,255 | 1,426,873 | ||||||||||||||
Transactions with Chunping Wang [Member] | HDS [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Amount payment to related party | 1,285,377 | |||||||||||||||
Transactions with Weihong Zhang [Member] | HDS [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Amount payment to related party | 794,252 | |||||||||||||||
Transactions with Xue Wang [Member] | HDS [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Amount payment to related party | 158,093 | |||||||||||||||
Transactions with Cai Wang [Member] | HDS [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Amount payment to related party | $ 81,611 | |||||||||||||||
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 Lease [Member] | ||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||
Agreement expiration date | Sep. 30, 2019 | |||||||||||||||
Agreement expiration period | 1 year | |||||||||||||||
Operating leases, rent expense | $ 1,100 | $ 1,150 | ||||||||||||||
Prepaid rent | 700 | 700 | 1,000 | |||||||||||||
Unpaid rent | $ 2,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Summary of reportable business segments | |||||
Total Revenue | $ 667,526 | $ 14,039,237 | $ 24,746,752 | $ 31,890,743 | |
Total Income (Loss) from operations | 1,072,219 | 1,213,106 | 2,753,694 | 3,498,786 | |
Total net income (loss) | 1,183,633 | (380,818) | 2,997,098 | 1,381,376 | |
Total long-term assets | 42,614,710 | 42,614,710 | $ 37,302,930 | ||
Total reportable assets | 54,285,369 | 54,285,369 | 49,692,066 | ||
PRC [Member] | |||||
Summary of reportable business segments | |||||
Total Revenue | 604,204 | 13,830,161 | 24,564,383 | 31,514,139 | |
Total Income (Loss) from operations | 1,067,778 | 1,350,449 | 3,178,243 | 4,925,873 | |
Total net income (loss) | 1,138,524 | 1,188,418 | 3,361,756 | 4,237,913 | |
Total long-term assets | 41,839,253 | 41,839,253 | 35,866,829 | ||
Total reportable assets | 55,244,766 | 55,244,766 | 50,107,147 | ||
USA [Member] | |||||
Summary of reportable business segments | |||||
Total Revenue | 86,647 | 209,076 | 205,694 | 376,604 | |
Total Income (Loss) from operations | 4,441 | (137,343) | (424,549) | (1,427,087) | |
Total net income (loss) | 45,109 | (1,569,236) | (364,658) | (2,856,537) | |
Total long-term assets | 775,457 | 775,457 | 1,436,101 | ||
Total reportable assets | 169,813 | 169,813 | 2,289,019 | ||
Elimination adjustment [Member] | |||||
Summary of reportable business segments | |||||
Total Revenue | (23,325) | (23,325) | |||
Total reportable assets | $ 3,129,210 | $ 3,129,210 | $ (2,704,100) |
Segment Information (Details Te
Segment Information (Details Textual) | 9 Months Ended |
Sep. 30, 2019Segments | |
Segment Information (Textual) | |
Number of business segments | 2 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - shares | 1 Months Ended | |
Oct. 03, 2019 | Oct. 29, 2019 | |
Subsequent Events (Textual) | ||
Stock options issuance, description | The Board of Directors approved to extend the expiration date of 5,000,000 options issued to Zhiguo Wang and 2,488,737 options issued to Guifang Qi from December 31, 2019 to December 31, 2021, and 200,000 options issued to William B. Barnett from October 11, 2019 to December 31, 2021. | |
2019 Equity Incentive Plan [Member] | ||
Subsequent Events (Textual) | ||
Common stock aggregate to authorized | 5,000,000 |