Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 31, 2022 | Jan. 11, 2023 | |
Details | ||
Registrant CIK | 0000806592 | |
Fiscal Year End | --04-30 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-53595 | |
Entity Registrant Name | SUNWIN STEVIA INTERNATIONAL, INC. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 56-2416925 | |
Entity Address, Address Line One | 6 Shengwang Ave., | |
Entity Address, City or Town | Qufu, Shandong, | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 273100 | |
Country Region | (86) | |
City Area Code | 537 | |
Local Phone Number | 4424999 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 199,632,803 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 2,774,026 | $ 321,193 |
Accounts receivable, net | 7,935,814 | 7,404,669 |
Inventories, net | 2,194,443 | 5,564,044 |
Prepaid expenses and other current assets | 3,711,037 | 2,765,819 |
Total Current Assets | 16,615,320 | 16,055,725 |
Property and equipment, net | 6,272,114 | 7,485,733 |
Land use rights, net | 1,731,945 | 1,950,204 |
Total Assets | 24,619,379 | 25,491,662 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 13,282,031 | 12,215,238 |
Short-term loans | 4,320,781 | 4,907,506 |
Due to related parties | 4,416,504 | 4,882,162 |
Total Current Liabilities | 22,019,316 | 22,004,906 |
Total Liabilities | 22,019,316 | 22,004,906 |
Commitments and Contingencies | 0 | 0 |
EQUITY | ||
Preferred stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 200,000,000 shares authorized; 199,632,803 and 199,632,803 shares issued and outstanding as of October 31, 2022 and April 30, 2022, respectively | 199,633 | 199,633 |
Additional paid-in capital | 47,732,350 | 47,732,350 |
Accumulated deficit | (46,606,700) | (46,267,397) |
Accumulated other comprehensive income | 4,888,385 | 5,162,418 |
Total Sunwin Stevia International, Inc. Stockholders' Equity | 6,213,668 | 6,827,004 |
Noncontrolling interest | (3,613,605) | (3,340,248) |
Total Equity | 2,600,063 | 3,486,756 |
Total Liabilities and Equity | $ 24,619,379 | $ 25,491,662 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||||
Revenues | $ 7,403,262 | $ 10,108,124 | $ 15,113,165 | $ 16,376,584 |
Cost of revenues | 6,127,059 | 10,178,745 | 12,680,924 | 15,564,376 |
Gross profit (loss) | 1,276,203 | (70,621) | 2,432,241 | 812,208 |
Operating expenses | ||||
Selling expenses | 258,753 | 379,977 | 658,220 | 748,789 |
General and administrative expenses | 385,344 | 527,010 | 782,258 | 941,653 |
Research and development expenses | 769,184 | 792,367 | 1,204,752 | 1,148,080 |
Total operating expenses, net | 1,413,281 | 1,699,354 | 2,645,230 | 2,838,522 |
Loss from operations | (137,078) | (1,769,975) | (212,989) | (2,026,314) |
Other income (expenses) | ||||
Other income (expenses) | 2,049 | (2,864) | 16,830 | (425,971) |
Interest income | 791 | 490 | 1,179 | 2,142 |
Interest expense - related party | (5,544) | (95,842) | (11,096) | (154,591) |
Interest expense | (119,869) | (24,582) | (247,726) | (38,156) |
Total other expenses | (122,573) | (122,798) | (240,813) | (616,576) |
Loss from operations before income taxes | (259,651) | (1,892,773) | (453,802) | (2,642,890) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | (259,651) | (1,892,773) | (453,802) | (2,642,890) |
Less: net loss attributable to noncontrolling interest | (41,745) | (723,911) | (114,499) | (1,013,835) |
Net loss attributable to Sunwin Stevia International, Inc | (217,906) | (1,168,862) | (339,303) | (1,629,055) |
Comprehensive income (loss) | ||||
Net loss | (259,651) | (1,892,773) | (453,802) | (2,642,890) |
Foreign currency translation adjustment | (384,704) | 62,183 | (432,891) | 72,216 |
Total comprehensive loss | (644,355) | (1,830,590) | (886,693) | (2,570,674) |
Less: comprehensive loss attributable to noncontrolling interest | (163,384) | (701,730) | (273,357) | (987,962) |
Comprehensive loss attributable to Sunwin Stevia International, Inc | $ (480,971) | $ (1,128,860) | $ (613,336) | $ (1,582,712) |
Earnings per common share attributable to Sunwin Stevia International, Inc | ||||
Net loss per common share attributable to Sunwin Stevia International, Inc. - basic and diluted | $ 0 | $ (0.01) | $ 0 | $ (0.01) |
Weighted average common shares outstanding - basic and diluted | 199,632,803 | 199,632,803 | 199,632,803 | 199,632,803 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | USD ($) shares |
Total equity, beginning balances at Apr. 30, 2021 | $ 8,128,531 |
Beginning balances at Apr. 30, 2021 | shares | 47,931,983 |
Common stock and additional paid-in capital | |
Common stock issued | $ 0 |
Ending balances at Oct. 31, 2021 | shares | 47,931,983 |
Beginning balances at Apr. 30, 2021 | $ (43,357,208) |
Retained Earnings | |
Net loss | (1,629,055) |
Ending balances at Oct. 31, 2021 | (44,986,263) |
Beginning balances at Apr. 30, 2021 | 5,193,512 |
Accumulated other comprehensive income (loss) | |
Foreign currency translation adjustment | 46,343 |
Ending balances at Oct. 31, 2021 | 5,239,855 |
Beginning balances at Apr. 30, 2021 | (1,639,756) |
Noncontrolling Interest | |
Noncontrolling Interest Profit Loss | (1,013,835) |
Accumulated other comprehensive income/(loss) Minority Interest | 25,873 |
Ending balances at Oct. 31, 2021 | (2,627,718) |
Total equity, ending balances at Oct. 31, 2021 | 5,557,857 |
Total equity, beginning balances at Jul. 31, 2021 | $ 7,388,447 |
Beginning balances at Jul. 31, 2021 | shares | 47,931,983 |
Common stock and additional paid-in capital | |
Common stock issued | $ 0 |
Ending balances at Oct. 31, 2021 | shares | 47,931,983 |
Beginning balances at Jul. 31, 2021 | $ (43,817,401) |
Retained Earnings | |
Net loss | (1,168,862) |
Ending balances at Oct. 31, 2021 | (44,986,263) |
Beginning balances at Jul. 31, 2021 | 5,199,853 |
Accumulated other comprehensive income (loss) | |
Foreign currency translation adjustment | 40,002 |
Ending balances at Oct. 31, 2021 | 5,239,855 |
Beginning balances at Jul. 31, 2021 | (1,925,988) |
Noncontrolling Interest | |
Noncontrolling Interest Profit Loss | (723,911) |
Accumulated other comprehensive income/(loss) Minority Interest | 22,181 |
Ending balances at Oct. 31, 2021 | (2,627,718) |
Total equity, ending balances at Oct. 31, 2021 | 5,557,857 |
Total equity, beginning balances at Apr. 30, 2022 | $ 3,486,756 |
Beginning balances at Apr. 30, 2022 | shares | 47,931,983 |
Common stock and additional paid-in capital | |
Common stock issued | $ 0 |
Ending balances at Oct. 31, 2022 | shares | 47,931,983 |
Beginning balances at Apr. 30, 2022 | $ (46,267,397) |
Retained Earnings | |
Net loss | (339,303) |
Ending balances at Oct. 31, 2022 | (46,606,700) |
Beginning balances at Apr. 30, 2022 | 5,162,418 |
Accumulated other comprehensive income (loss) | |
Foreign currency translation adjustment | (274,033) |
Ending balances at Oct. 31, 2022 | 4,888,385 |
Beginning balances at Apr. 30, 2022 | (3,340,248) |
Noncontrolling Interest | |
Noncontrolling Interest Profit Loss | (114,499) |
Accumulated other comprehensive income/(loss) Minority Interest | (158,858) |
Ending balances at Oct. 31, 2022 | (3,613,605) |
Total equity, ending balances at Oct. 31, 2022 | $ 2,600,063 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (453,802) | $ (2,642,890) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||
Depreciation and amortization expenses | 651,636 | 736,823 |
(Gain) loss on disposition of equipment | (423) | 386,687 |
Provisions for obsolete inventories | 56,435 | 653,505 |
Changes in operating assets and liabilities | ||
Accounts receivable | (1,335,416) | 317,355 |
Inventories | 2,954,200 | 3,141,942 |
Prepaid expenses and other current assets | (1,294,258) | (3,560,027) |
Accounts payable and accrued expenses | 2,835,852 | (1,488,413) |
Taxes payable | (51,645) | 9,263 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 3,362,579 | (2,445,755) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceed from disposal of equipment | 4,960 | 8,028 |
Purchases of property and equipment | (166,497) | (150,258) |
Purchases of land use rights | 0 | (2,055,960) |
NET CASH USED IN INVESTING ACTIVITIES | (161,537) | (2,198,190) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from short term loans | 0 | 1,008,096 |
Repayment of short term loans | (560,128) | 0 |
Advance from related parties | 2,188 | 6,302,619 |
Repayment of related party advances | (1,779) | (3,541,521) |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (559,719) | 3,769,194 |
EFFECT OF EXCHANGE RATE ON CASH | (188,490) | 7,557 |
NET INCREASE (DECREASE) IN CASH | 2,452,833 | (867,194) |
Cash at the beginning of period | 321,193 | 1,565,829 |
Cash at the end of period | 2,774,026 | 698,635 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION | ||
Cash paid for income taxes | 0 | 0 |
Cash paid for interest | 4,165 | 4,885 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Property and equipment acquired on credit as payable | 1,459 | 30,773 |
Accrued interest enrolled into debt | 445,319 | 0 |
Accrued interest payable to related party | $ 11,096 | $ 171,944 |
NOTE 1 - ORGANIZATION AND OPERA
NOTE 1 - ORGANIZATION AND OPERATIONS | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 1 - ORGANIZATION AND OPERATIONS | NOTE 1 - ORGANIZATION AND OPERATIONS DESCRIPTION OF BUSINESS Sunwin Stevia International, Inc. ("Sunwin Stevia International"), a Nevada corporation, and its subsidiaries are referred to in this report as "we", "us", "our", "Sunwin" or the "Company". We sell stevioside, a natural sweetener, and other pharmaceutical productions, such as Metformin. Substantially all of our operations are located in the People's Republic of China (the "PRC"). We have built an integrated company with the sourcing and production capabilities designed to meet the needs of our customers. Our operations are organized into two operating segments related to our product lines: - Stevioside; and - Corporate and other. For the six months ended October 31, 2022 and fiscal year 2023, our subsidiaries included in operations and discontinued operations consisted of the following: - Sunwin Stevia International; - Qufu Natural Green Engineering Co., Ltd. ("Qufu Natural Green"), wholly owned by Sunwin Stevia International; - Qufu Shengren Pharmaceutical Co., Ltd. ("Qufu Shengren"), 61% owned by Qufu Natural; - Qufu Shengwang Stevia Biology and Science Co., Ltd. ("Qufu Shengwang"), wholly owned by Qufu Natural Green; - Sunwin USA, LLC ("Sunwin USA"), wholly owned by Sunwin Stevia International; and - Qufu Shengren Import and Export Co., Ltd. (“Qufu Shengren Import and Export”), wholly owned subsidiary of Qufu Shengren. |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial reporting. The accompanying unaudited condensed consolidated financial statements for the interim periods presented are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the periods presented. Certain financial statement amounts relating to prior periods have been reclassified to conform to the current period presentation. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements should be read in conjunction with the financial statements and footnotes for the year ended April 30, 2022 included in our Form 10-K as filed with the SEC. The results of operations and cash flows for the six months ended October 31, 2022 are not necessarily indicative of the results of operations or cash flows which may be reported for future periods or the full fiscal year. The condensed consolidated balance sheet as of April 30, 2022 contained herein has been derived from the audited consolidated financial statements as of April 30, 2022, but do not include all disclosures required by the U.S. GAAP. Our unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries included in operations and discontinued operations. All intercompany accounts and transactions have been eliminated in consolidation. Qufu Shengwang is the subsidiary with discontinued operations and our subsidiaries for operations include the following: - 5 - - Qufu Natural Green; - Qufu Shengren; - Sunwin USA; and - Qufu Shengren Import and Export USE OF ESTIMATES The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the allowance for doubtful accounts, the allowance for obsolete inventory, the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets, and the value of stock-based compensation. Actual results could differ from those estimates. CASH AND CASH EQUIVALENTS Cash includes cash on hand and cash in time deposits, certificates of deposit and all highly liquid instruments with original maturities of three months or less. ACCOUNTS RECEIVABLE Accounts receivable and other receivable are reported at net realizable value. We have established an allowance for doubtful accounts based upon factors pertaining to the credit risk of specific customers, historical trends, and other information. Delinquent accounts are written off when it is determined that the amounts are uncollectible after exhaustive efforts on collection. We had no bad debt expense for allowance of doubtful accounts during the six months ended October 31, 2022 and 2021. The balances for allowance of doubtful accounts were $72,090 and $79,886 on October 31, 2022 and April 30, 2022, respectively. INVENTORIES Inventories, consisting of raw materials, work in process, and finished goods related to our products, are stated at the lower of cost or estimated net realizable value that can be estimated utilizing the weighted moving average method. Adjustments are recorded to write down the carrying amount of any obsolete and excess inventory to its estimated net realizable value. We continually evaluate the recoverability based on assumptions about future customer demand and market conditions. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record a write down of inventories for the difference between the lower of cost or estimated net realizable value. In the six months ended October 31, 2022 and 2021, the Company wrote down inventories of $56,435 and $653,505, respectively. PROPERTY AND EQUIPMENT Property and equipment are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated economic lives of the assets, which range from two to thirty years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. In accordance with paragraph 360-10-35-17 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC"), we examine the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The residual value rate and useful life of property and equipment are summarized as follows: Property and Equipment Residual value rate Useful life Office equipment 10% or 5% or 0% 3-15 years Auto and trucks 10% or 5% or 0% 2-10 Years Manufacturing equipment 10% or 5% or 0% 2-15 Years Buildings 10% or 5% or 0% 5-30 Years - 6 - Included in property and equipment is construction-in-progress which consisted of factory improvements and machinery pending installation and included the costs of construction, machinery and equipment, and or any interest charges arising from borrowings used to finance these assets during the period of construction or installation of the assets if applicable. No provision for depreciation is made on construction-in-progress until such time as the relevant assets are completed and ready for their intended use. LONG-LIVED ASSETS In accordance with ASC 360, we review and evaluate our long-lived assets, including property and equipment, intangible assets, and land use rights, for impairment or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets, including goodwill, if any. An impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of future cash flows from other asset groups. Our estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates. Based on our evaluation, we have determined certain long-lived assets that are no longer useful for our operations, and we recorded a gain from disposition of property and equipment of $423 in the six months ended October 31, 2022 but we recorded a loss on disposition of property and equipment of $386,687 in the six months ended October 31, 2021. LAND USE RIGHTS According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. Land use rights are being amortized using the straight-line method over the periods the rights are granted. FAIR VALUE OF FINANCIAL INSTRUMENTS We adopted ASC Section 820-10-35-37 to measure the fair value of our financial instruments. ASC Section 820-10-35-37 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. The adoption of ASC Section 820-10-35-37 did not have an impact on our financial position or operating results, but did expand certain disclosures. ASC Section 820-10-35-37 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC Section 820-10-35-37 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity's own assumptions. The carrying amounts of our financial assets and liabilities, such as cash, accounts receivable, notes receivable, prepayments and other current assets, accounts payable, taxes payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. TAXES PAYABLE We are required to charge for and to collect value added taxes (VAT) on our sales on behalf of the PRC tax authority. We record VAT that we billed our customers as VAT payable. In addition, we are required to pay value added taxes on our primary purchases. We record VAT that is charged by our vendors as VAT receivable. We are required to file VAT return on a monthly basis with the PRC tax authority, in which we are entitled to claim the VAT that we are charged by vendors as VAT credit and these credits can be applied to our VAT payable that we billed our customers. Accordingly, these VAT payable and receivable are presented as net amounts for financial statement purposes. Taxes payable as of October 31, 2022 and April 30, 2022 amounted to $684,759 and $812,545, respectively, consisted primarily of VAT taxes. - 7 - REVENUE RECOGNITION Pursuant to the guidance of ASC 606, we record revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The adoption of this guidance did not have a material impact on our unaudited condensed consolidated financial statements. In accordance with ASC 606, we recognize revenues from the sale of stevia and other productions upon shipment and transfer of title based on the trade terms. All product sales with customer specific acceptance provisions are recognized upon customer acceptance and the delivery of the products. We report revenues net of applicable sales taxes and related surcharges. • Identify the contract with a customer; • Identify the performance obligations in the contract; • Determine the transaction price; • Allocate the transaction price to the performance obligations in the contract; and • Recognize revenue when (or as) the entity satisfies a performance obligation. The Company is also a lessor, which is an entity that is lease underlying asset to the third party, The Company’s lease revenue is recognized under ASC Topic 842, Leases, (“ASC 842”), which was adopted on May 1, 2019. In general, the Company commences rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. The Company’s lease has been accounted for as operating lease. Rental revenue is recognized on a straight-line basis over the terms of the lease of five years. Actual amounts billed in accordance with the lease during any given period may have been higher or lower than the amount of rental revenue recognized for the period. The difference by which straight-line rental revenue exceeded rents billed in accordance with lease agreements is recorded as “accounts receivable”. The difference by which rents billed in accordance with lease agreements exceeded straight-line rental revenue is recorded as “advances from customer”. The Company does not offset lease income and lease expense. GRANT INCOME Grants received from PRC government agencies are recognized as deferred grant income and recognized in the unaudited condensed consolidated statements of operations and comprehensive loss as and when they are earned for the specific research and development projects for which these grants are designated for. INCOME TAXES The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes We file federal and state income tax returns in the United States for our corporate operations pursuant to the U.S. Internal Revenue Code of 1986, as amended, and file separate foreign tax returns for our Chinese subsidiaries pursuant to the China's Unified Corporate Income Tax Law. We apply the provisions of ASC 740-10-50, "Accounting for Uncertainty in Income Taxes", which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our consolidated financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company's liability for income taxes. Any such adjustment could be material to the Company's results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of October 31, 2022, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. - 8 - BASIC AND DILUTED EARNINGS PER SHARE Pursuant to ASC Section 260-10-45, basic loss per common share is computed by dividing loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted loss 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 ours, subject to anti-dilution limitations. The following table presents a reconciliation of basic and diluted net income per common share: Three Months Ended October 31, Six Months Ended October 31, Numerator: 2022 2021 2022 2021 Net Loss attributable to Sunwin Stevia International, Inc. $ (217,906) $ (1,168,862) $ (339,303) $ (1,629,055) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 199,632,803 199,632,803 Stock awards, options, and warrants - - - - Denominator for diluted earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 199,632,803 199,632,803 Basic and diluted loss per common share : Net loss per common share - basic and diluted $ (0.00) $ (0.01) $ (0.00) $ (0.01) FOREIGN CURRENCY TRANSLATION Transactions and balances originally denominated in U.S. dollars are presented at their original amounts. Transactions and balances in other currencies are converted into U.S. dollars in accordance with ASC Section 830-20-35 and are included in determining net income or loss. The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company's operating subsidiaries is the Chinese Renminbi ("RMB"). In accordance with ASC 830-20-35, the consolidated financial statements were translated into United States dollars using balance sheet date rates of exchange for assets and liabilities, and average rates of exchange for the period for the income statements and cash flows. Equity accounts were stated at their historical rate. Net gains and losses resulting from foreign exchange transactions are included in the consolidated statements of operations. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in other comprehensive income or loss. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People's Bank of China (the "PBOC") or other institutions authorized to buy and sell foreign exchange. The exchange rate adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand. Translation of amounts from RMB into United States dollars ("$") was made at the following exchange rates for the respective periods: As of October 31, 2022 RMB 7.30 to $1.00 As of April 30, 2022 RMB 6.59 to $1.00 Six months ended October 31, 2022 RMB 6.85 to $1.00 Six months ended October 31, 2021 RMB 6.45 to $1.00 COMPREHENSIVE LOSS Comprehensive loss is comprised of net loss and all changes to the statements of stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive loss for the three and six months ended October 31, 2022 and 2021 included net loss and unrealized gains (loss) from foreign currency translation adjustments. - 9 - RESEARCH AND DEVELOPMENT Research and development costs are expensed as incurred and are included in general and administrative expenses in the accompanying statements of operations. Research and development costs are incurred on a project specific basis. Research and development costs were $769,184 and $792,367 for the three months ended October 31, 2022 and 2021, and $1,204,752 and $1,148,080 for the six months ended October 31, 2022 and 2021, respectively. SHIPPING COSTS Shipping costs are included in selling expenses and totaled $18,259 and $29,927 for the three months ended October 31, 2022 and 2021, and $42,511 and $50,088 for the six months ended October 31, 2022 and 2021, respectively. SEGMENT REPORTING The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The Company's chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU provides an exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. This update also (1) requires an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (2) requires an entity to evaluate when a step-up in the tax basis of goodwill should be considered part of the business combination in which goodwill was originally recognized for accounting purposes and when it should be considered a separate transaction, and (3) requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, excluding entities eligible to be smaller reporting company. For all other entities, the requirements are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-13 has been amended by ASU 2019-04, ASU 2019-05, and ASU 2019-11. For entities that have not yet adopted ASU No. 2016-13, the effective dates and transition methodology for ASU 2019-04, ASU 2019-05, and ASU 2019-11 are the same as the effective dates and transition methodology in ASU 2016-13. The Company did not adopt this standard yet due to the status of smaller reporting company. We plan to adopt this standard for the year beginning May 1, 2023. We do not expect the adoption of this standard will have material impact on our consolidated financial statements. A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, we have not determined whether implementation of such proposed standards would be material to our consolidated financial statements. - 10 - GOING CONCERN Our unaudited condensed consolidated financial statements have been prepared assuming we will continue as a going concern. The Company has incurred recurring losses with a net loss of approximately $260,000 and $454,000 for the three and six months ended October 31, 2022 and has a significant accumulated deficit of $46.6 million as of October 31, 2022. The Company's cash balance and revenues generated are not currently sufficient and cannot be projected to cover operating expenses for the next twelve months from the date of this report. These factors raise doubt as to the ability of the Company to continue as a going concern. Management's plans include attempting to improve its business profitability, its ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working capital funds through debt and equity financings, and restructure on-going operations to eliminate inefficiencies to raise cash balance in order to meet its anticipated cash requirements for the next twelve months from the date of this report. Management intends to make every effort to identify and develop sources of funds. The outcome of these matters cannot be predicted at this time. There can be no assurance that any additional financings will be available to the Company on satisfactory terms and conditions, if at all. The ability of the Company to continue as a going concern is dependent upon its ability to achieve profitable operations and raise additional capital. The accompanying unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amount or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern. |
NOTE 3 - NONCONTROLLING INTERES
NOTE 3 - NONCONTROLLING INTEREST | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 3 - NONCONTROLLING INTEREST | NOTE 3 - NONCONTROLLING INTEREST Noncontrolling interest on the consolidated balance sheets resulted from the consolidation of Shengren, a 61.3% owned subsidiary starting from April 30, 2020. An individual investor and Shandong Yulong Mining Group Co., Ltd. (“Yulong”) hold 38.4% and 0.3% of the equity interest in Shengren effective at the end of date, April 30, 2020, respectively, pursuant to a series of debt transfer and conversion agreements entered into on April 30, 2020 between seven individual creditors and three suppliers, an individual investor with Yulong and Qufu Shengren. Noncontrolling interest amounted to a deficit of $3,613,605 and $3,340,248 as of October 31, 2022 and April 30, 2022. |
NOTE 4 - INVENTORIES
NOTE 4 - INVENTORIES | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 4 - INVENTORIES | NOTE 4 - INVENTORIES As of October 31, 2022 and April 30, 2022, inventories consisted of the following: October 31, 2022 April 30, 2022 Raw materials $ 1,074,444 $ 2,417,724 Work in process 217,459 1,029,797 Finished goods 902,540 2,116,523 Inventories, gross 2,194,443 5,564,044 Less: reserve for obsolete inventory - - Inventories, net $ 2,194,443 $ 5,564,044 In the three months ended October 31, 2022 and 2021, the Company wrote down inventories of $nil and $465,801, respectively. In the six months ended October 31, 2022 and 2021, the Company wrote down the obsolete inventories of $56,435 and $653,505, respectively. As a result, the Company had no reserve of obsolete inventories as of October 31, 2022 and April 30, 2022, respectively. |
NOTE 5 - PREPAID EXPENSES AND O
NOTE 5 - PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 5 - PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 5 - PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets as of October 31, 2022 and April 30, 2022 totaled $3,711,037 and $2,765,819, respectively. As of October 31, 2022, prepaid expenses and other current assets includes $2,456,119 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us, and $1,254,918 for business related employees' advances and advances to the third party. As of April 30, 2022, prepaid expenses and other current assets includes $1,510,032 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us, $1,255,787 for business related employees' advances and advances to the third party. |
NOTE 6 - PROPERTY AND EQUIPMENT
NOTE 6 - PROPERTY AND EQUIPMENT | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 6 - PROPERTY AND EQUIPMENT | NOTE 6 - PROPERTY AND EQUIPMENT As of October 31, 2022 and April 30, 2022, property and equipment consisted of the following: October 31, 2022 April 30, 2022 Office equipment $ 420,808 $ 434,867 Auto and trucks 517,964 581,314 Manufacturing equipment 5,925,285 6,481,114 Buildings 8,529,981 9,452,467 Construction in process 15,521 17,200 Property and equipment, gross 15,409,559 16,966,962 Less: accumulated depreciation (9,137,445) (9,481,229) Property and equipment, net $ 6,272,114 $ 7,485,733 For the three months ended October 31, 2022 and 2021, depreciation expense totaled $311,353 and $336,757, of which $268,037 and $285,439 were included in cost of revenues, respectively, and remainder was included in operating expenses. For the six months ended October 31, 2022 and 2021, depreciation expense totaled $621,883 and $705,193, of which $532,156 and $599,172 were included in cost of revenues, respectively, and remainder was included in operating expenses. Depreciation is not taken during the period of construction or equipment installation. Upon completion of the installation of manufacturing equipment or any construction in progress, construction in progress balances will be classified to their respective property and equipment category. |
NOTE 7 - LAND USE RIGHTS
NOTE 7 - LAND USE RIGHTS | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 7 - LAND USE RIGHTS | NOTE 7 – LAND USE RIGHTS As of October 31, 2022 and April 30, 2022, land use rights consisted of the following: (Estimated Life) October 31, 2022 April 30, 2022 Land use rights (33 Years) 1,815,749 2,012,115 Less: accumulated amortization (83,804) (61,911) Land use rights, net 1,731,945 1,950,204 For the three months ended October 31, 2022 and 2021, amortization expense amounted to $14,551 and $15,805, and for the six months ended October 31, 2022 and 2021, amortization expense amounted to $29,753 and $31,630, respectively. |
NOTE 8 - RELATED PARTY TRANSACT
NOTE 8 - RELATED PARTY TRANSACTIONS | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 8 - RELATED PARTY TRANSACTIONS | NOTE 8 - RELATED PARTY TRANSACTIONS Related parties of the Company consist of the following : - - - - Due to related parties The Company mainly finances its operations through proceeds borrowed from related parties. As of October 31, 2022 and April 30, 2022, due to related parties consisted the following: - 12 - October 31, 2022 April 30, 2022 Pharmaceutical Corporation $ 4,191,000 $ 4,646,092 Weidong Chai 225,504 236,070 Total $ 4,416,504 $ 4,882,162 On September 23, 2019, the Company borrowed a one-year loan of RMB1,221,000 (approximately $167,000) from Weidong Chai, bearing an annual interest rate of 10%. On September 23, 2022, 2021 and 2020, the parties extended the loan for another year, under the same terms and conditions, reclassified unpaid interest payable to the principal of this loan, resulting in an increase of principal from RMB1,221,000 (approximately $167,000) to RMB1,625,150 (approximately $223,000). |
NOTE 9 - OPERATING LEASE
NOTE 9 - OPERATING LEASE | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 9 - OPERATING LEASE | NOTE 9 - OPERATING LEASE The Company leased Metformin production line including buildings, manufacturing equipment and construction in process to the third party lessee for five years, effective July 10, 2019. The lessee paid a lease deposit of RMB1,000,000 (approximately $137,000) as guarantee and annual lease fee of RMB3,000,000 (approximately $411,000). The Company recorded revenues of $98,185 and $106,647 from this operating lease in the three months ended October 31, 2022 and 2021, and the Company recorded revenues of $200,765 and $213,429 from this operating lease in the six months ended October 31, 2022 and 2021. |
NOTE 10 - ACCOUNTS PAYABLE AND
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses included the following as of October 31, 2022 and April 30, 2022: Account October 31, 2022 April 30, 2022 Accounts payable $ 9,523,873 $ 7,945,913 Advanced from customers 291,513 121,183 Advanced from third parties* 753,811 1,208,900 Accrued salary payable 153,679 101,829 Tax payable 684,759 812,545 Other payable** 1,874,396 2,024,868 Total accounts payable and accrued expenses $ 13,282,031 $ 12,215,238 * Advanced from third parties for working capital, bearing interest free and due on demands. ** As of October 31, 2022, other payables consists of general liability, worker's compensation, and medical insurance payable of $358,648, consulting fee payable of $185,902, union and education fees payable of $121,325, interest payables for short-term loans of $297,456, safety production fund payable of $627,919, advances from the employees of $126,815, security deposit for sub-contractor of $136,971 and other miscellaneous payables of $19,360. As of April 30, 2022, other payables consists of general liability, worker's compensation, and medical insurance payable of $428,773, consulting and service fee payable of $206,007, union and education fees payable of $134,598, interest payables for short-term loans of $366,249, safety production fund payable of $627,138, advances from the employees of $106,253, deposit for operating lease of $151,784 and other miscellaneous payables of $4,066. |
NOTE 11 -LOAN PAYABLE
NOTE 11 -LOAN PAYABLE | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 11 -LOAN PAYABLE | NOTE 11 -LOAN PAYABLE Short-term loan payable Short-term loans are obtained from various individual lenders that are due within one year for working capital purpose. These loans are unsecured and can be renewed with 10 days advance notice prior to maturity date and accrued interest converted into debt principal. As of October 31, 2022 and April 30, 2022, short-term loans consisted of the following: - 13 - October 31, 2022 April 30, 2022 Loan from Min Wu, an employee of Qufu Shengren, due on October 5, 2023, with an annual interest rate of 10%, renewed on October 6, 2022. $ 30,134 $ 33,393 Loan from Jianjun Yan, due on October 6, 2023, with an annual interest rate of 10%, renewed on October 7, 2022. 1,614,802 1,626,763 Loan from Jianjun Yan, due on April 18, 2023, with annual interest rate of 4%, renewed on April 19, 2022 for the term of one year. 121,494 134,633 Multiple loans from Jianjun Yan, due from May 13, 2023 to August 22, 2023, with annual interest rate of 12%, sign on period from May 14, 2022 to August 23, 2022. Partially repaid RMB2,165,000 ($315,851) in the six months ended October 31, 2022. 1,206,676 1,490,521 Loan from Junzhen Zhang, non-related individual, due on October 5, 2023, with an annual interest rate of 10%, renewed on October 6, 2022. 29,169 29,385 Loan from Junzhen Zhang, non-related individual, due on November 30, 2023, with an annual interest rate of 10%, signed on December 1, 2022. 21,094 23,375 Multiple loans from Jian Chen, non-related individual, due from May 20, 2023 to November 14, 2023, with an annual interest rate of 12%, signed from May 21, 2022 to November 15, 2022. 1,069,644 1,066,928 Loan from Qing Kong, non-related individual, due on March 6, 2023, with an annual interest rate of 10%, renewed on March 7, 2022. 96,126 106,522 Loan from Qing Kong, non-related individual, due on January 8, 2023, with an annual interest rate of 10%, renewed on January 9, 2022. 40,108 44,445 Loan from Guihai Chen, non-related individual, due on March 9, 2023, with an annual interest rate of 10%, renewed on March 10, 2022. 24,032 26,631 Loan from Guihai Chen, non-related individual, due on September 20, 2023, with an annual interest rate of 10%, renewed on September 21, 2022. 40,108 40,405 Loan from Weifeng Kong, non-related individual, due on November 28, 2023, with an annual interest rate of 10%, renewed on November 29, 2022. 27,394 30,357 Loan from Guohui Zhang, non-related individual, due on January 16, 2022, with an annual interest rate of 4% signed on January 17, 2021. - 254,148 Total short-term loan payable $ 4,320,781 $ 4,907,506 For the three and six months ended October 31, 2022 and 2021, interest expense related to short-term loans amounted to $119,869 and $24,582, and $247,726 and $38,156, respectively, which were included in interest expense in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss. |
NOTE 12 - SEGMENT INFORMATION
NOTE 12 - SEGMENT INFORMATION | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 12 - SEGMENT INFORMATION | NOTE 12 - SEGMENT INFORMATION The following information is presented in accordance with ASC Topic 280, "Segment Reporting", for the three and six months ended October 31, 2022 and 2021; we accounted for two reportable business segments - (1) natural sweetener (stevioside), and (2) corporate and other pharmaceutical. Our reportable segments are strategic business units that offer different products and are managed separately based on the fundamental differences in their operations. Condensed financial information with respect to these reportable business segments for the three and six months ended October 31, 2022 and 2021 is as follows: - 14 - Three Months Ended October 31, Six Months Ended October 31, 2022 2021 2022 2021 Revenues: Stevioside $ 7,305,077 $ 10,001,477 $ 14,912,400 $ 16,163,155 Corporate and other 98,185 106,647 200,765 213,429 Total segment and consolidated revenues $ 7,403,262 $ 10,108,124 $ 15,113,165 $ 16,376,584 Interest expense: Stevioside $ (124,622) $ (119,934) $ (257,643) $ (190,605) Corporate and other - - - - Total segment and consolidated interest expense $ (124,622) $ (119,934) $ (257,643) $ (190,605) Depreciation and amortization: Stevioside $ 281,571 $ 312,038 $ 573,745 $ 623,881 Corporate and other 37,537 56,349 77,891 112,942 Total segment and consolidated depreciation and amortization $ 319,108 $ 368,387 $ 651,636 $ 736,823 Income (loss) from operations before income taxes: Stevioside $ (318,921) $ (1,941,725) $ (573,852) $ (2,753,962) Corporate and other 59,270 48,952 120,050 111,072 Total loss from operations before income taxes $ (259,651) $ (1,892,773) $ (453,802) $ (2,642,890) October 31, 2022 April 30, 2022 Segment property and equipment: Stevioside $ 4,873,051 $ 5,854,328 Corporate and other 1,399,063 1,631,405 Total property and equipment $ 6,272,114 $ 7,485,733 |
NOTE 13 - CONCENTRATIONS AND CR
NOTE 13 - CONCENTRATIONS AND CREDIT RISK | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 13 - CONCENTRATIONS AND CREDIT RISK | NOTE 13 - CONCENTRATIONS AND CREDIT RISK (i) Customer Concentrations For the three and six months ended October 31, 2022 and 2021, customers accounting for 10% or more of the Company's revenue were as follows: For the three months ended October 31, For the six months ended October 31, Customer 2022 2021 2022 2021 A 44.4% 39.7% 47.7% 39.0% B - 18.5% - 11.5% (ii) Vendor Concentrations For the three and six months ended October 31, 2022 and 2021, suppliers accounting for 10% or more of the Company's purchase were as follows: - 15 - For the three months ended October 31, For the six months ended October 31, Supplier 2022 2021 2022 2021 A - 40.5% 29.3% 53.6% B - - - 13.6% C 25.0% - - - D 20.6% - - - E 18.9% - - - F 14.6% - - - - (iii) Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and trade accounts receivable. We place our cash with high credit quality financial institutions in the United States and the PRC. As of October 31, 2022 and April 30, 2022, we had $2,707,425 and $293,408 of cash balance held in PRC banks, respectively. PRC banks protect consumers against loss if their bank or thrift institution fails, and each of our PRC bank account is insured up to RMB500,000 (approximately $68,000). As a result, cash held in PRC financial institutions of $2,548,462 and $119,250 are not insured as of October 31, 2022 and April 30, 2022. We have not experienced any losses in such accounts through October 31, 2022. Our cash position by geographic area was as follows: Country: October 31, 2022 April 30, 2022 United States $ 59,918 2.2% $ 18,033 5.6% China 2,714,108 97.8% 303,160 94.4% Total cash and cash equivalents $ 2,774,026 100.00% $ 321,193 100.00% Almost all of our sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, we believe that the concentration of credit risk with respect to trade accounts receivable is limited due to generally short payment terms. We also perform ongoing credit evaluations of our customers to help further reduce potential credit risk. |
NOTE 14 - SUBSEQUENT EVENTS
NOTE 14 - SUBSEQUENT EVENTS | 6 Months Ended |
Oct. 31, 2022 | |
Notes | |
NOTE 14 - SUBSEQUENT EVENTS | NOTE 14 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. Based on our evaluation, no other event has occurred requiring adjustment or disclosure in the notes to the consolidated financial statements. |
NOTE 2 - SUMMARY OF SIGNIFICA_2
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial reporting. The accompanying unaudited condensed consolidated financial statements for the interim periods presented are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the periods presented. Certain financial statement amounts relating to prior periods have been reclassified to conform to the current period presentation. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements should be read in conjunction with the financial statements and footnotes for the year ended April 30, 2022 included in our Form 10-K as filed with the SEC. The results of operations and cash flows for the six months ended October 31, 2022 are not necessarily indicative of the results of operations or cash flows which may be reported for future periods or the full fiscal year. The condensed consolidated balance sheet as of April 30, 2022 contained herein has been derived from the audited consolidated financial statements as of April 30, 2022, but do not include all disclosures required by the U.S. GAAP. Our unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries included in operations and discontinued operations. All intercompany accounts and transactions have been eliminated in consolidation. Qufu Shengwang is the subsidiary with discontinued operations and our subsidiaries for operations include the following: - 5 - - Qufu Natural Green; - Qufu Shengren; - Sunwin USA; and - Qufu Shengren Import and Export |
NOTE 2 - SUMMARY OF SIGNIFICA_3
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: USE OF ESTIMATES (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
USE OF ESTIMATES | USE OF ESTIMATES The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the allowance for doubtful accounts, the allowance for obsolete inventory, the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets, and the value of stock-based compensation. Actual results could differ from those estimates. |
NOTE 2 - SUMMARY OF SIGNIFICA_4
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: CASH AND CASH EQUIVALENTS (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS Cash includes cash on hand and cash in time deposits, certificates of deposit and all highly liquid instruments with original maturities of three months or less. |
NOTE 2 - SUMMARY OF SIGNIFICA_5
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ACCOUNTS RECEIVABLE (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable and other receivable are reported at net realizable value. We have established an allowance for doubtful accounts based upon factors pertaining to the credit risk of specific customers, historical trends, and other information. Delinquent accounts are written off when it is determined that the amounts are uncollectible after exhaustive efforts on collection. We had no bad debt expense for allowance of doubtful accounts during the six months ended October 31, 2022 and 2021. The balances for allowance of doubtful accounts were $72,090 and $79,886 on October 31, 2022 and April 30, 2022, respectively. |
NOTE 2 - SUMMARY OF SIGNIFICA_6
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: INVENTORIES (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
INVENTORIES | INVENTORIES Inventories, consisting of raw materials, work in process, and finished goods related to our products, are stated at the lower of cost or estimated net realizable value that can be estimated utilizing the weighted moving average method. Adjustments are recorded to write down the carrying amount of any obsolete and excess inventory to its estimated net realizable value. We continually evaluate the recoverability based on assumptions about future customer demand and market conditions. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record a write down of inventories for the difference between the lower of cost or estimated net realizable value. In the six months ended October 31, 2022 and 2021, the Company wrote down inventories of $56,435 and $653,505, respectively. |
NOTE 2 - SUMMARY OF SIGNIFICA_7
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: PROPERTY AND EQUIPMENT (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated economic lives of the assets, which range from two to thirty years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. In accordance with paragraph 360-10-35-17 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC"), we examine the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The residual value rate and useful life of property and equipment are summarized as follows: Property and Equipment Residual value rate Useful life Office equipment 10% or 5% or 0% 3-15 years Auto and trucks 10% or 5% or 0% 2-10 Years Manufacturing equipment 10% or 5% or 0% 2-15 Years Buildings 10% or 5% or 0% 5-30 Years - 6 - Included in property and equipment is construction-in-progress which consisted of factory improvements and machinery pending installation and included the costs of construction, machinery and equipment, and or any interest charges arising from borrowings used to finance these assets during the period of construction or installation of the assets if applicable. No provision for depreciation is made on construction-in-progress until such time as the relevant assets are completed and ready for their intended use. |
NOTE 2 - SUMMARY OF SIGNIFICA_8
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: LONG-LIVED ASSETS (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
LONG-LIVED ASSETS | LONG-LIVED ASSETS In accordance with ASC 360, we review and evaluate our long-lived assets, including property and equipment, intangible assets, and land use rights, for impairment or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets, including goodwill, if any. An impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of future cash flows from other asset groups. Our estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates. Based on our evaluation, we have determined certain long-lived assets that are no longer useful for our operations, and we recorded a gain from disposition of property and equipment of $423 in the six months ended October 31, 2022 but we recorded a loss on disposition of property and equipment of $386,687 in the six months ended October 31, 2021. |
NOTE 2 - SUMMARY OF SIGNIFICA_9
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: LAND USE RIGHTS (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
LAND USE RIGHTS | LAND USE RIGHTS According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. Land use rights are being amortized using the straight-line method over the periods the rights are granted. |
NOTE 2 - SUMMARY OF SIGNIFIC_10
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: FAIR VALUE OF FINANCIAL INSTRUMENTS (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS We adopted ASC Section 820-10-35-37 to measure the fair value of our financial instruments. ASC Section 820-10-35-37 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. The adoption of ASC Section 820-10-35-37 did not have an impact on our financial position or operating results, but did expand certain disclosures. ASC Section 820-10-35-37 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC Section 820-10-35-37 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity's own assumptions. The carrying amounts of our financial assets and liabilities, such as cash, accounts receivable, notes receivable, prepayments and other current assets, accounts payable, taxes payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. |
NOTE 2 - SUMMARY OF SIGNIFIC_11
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: TAXES PAYABLE (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
TAXES PAYABLE | TAXES PAYABLE We are required to charge for and to collect value added taxes (VAT) on our sales on behalf of the PRC tax authority. We record VAT that we billed our customers as VAT payable. In addition, we are required to pay value added taxes on our primary purchases. We record VAT that is charged by our vendors as VAT receivable. We are required to file VAT return on a monthly basis with the PRC tax authority, in which we are entitled to claim the VAT that we are charged by vendors as VAT credit and these credits can be applied to our VAT payable that we billed our customers. Accordingly, these VAT payable and receivable are presented as net amounts for financial statement purposes. Taxes payable as of October 31, 2022 and April 30, 2022 amounted to $684,759 and $812,545, respectively, consisted primarily of VAT taxes. |
NOTE 2 - SUMMARY OF SIGNIFIC_12
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: REVENUE RECOGNITION (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
REVENUE RECOGNITION | REVENUE RECOGNITION Pursuant to the guidance of ASC 606, we record revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The adoption of this guidance did not have a material impact on our unaudited condensed consolidated financial statements. In accordance with ASC 606, we recognize revenues from the sale of stevia and other productions upon shipment and transfer of title based on the trade terms. All product sales with customer specific acceptance provisions are recognized upon customer acceptance and the delivery of the products. We report revenues net of applicable sales taxes and related surcharges. • Identify the contract with a customer; • Identify the performance obligations in the contract; • Determine the transaction price; • Allocate the transaction price to the performance obligations in the contract; and • Recognize revenue when (or as) the entity satisfies a performance obligation. The Company is also a lessor, which is an entity that is lease underlying asset to the third party, The Company’s lease revenue is recognized under ASC Topic 842, Leases, (“ASC 842”), which was adopted on May 1, 2019. In general, the Company commences rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. The Company’s lease has been accounted for as operating lease. Rental revenue is recognized on a straight-line basis over the terms of the lease of five years. Actual amounts billed in accordance with the lease during any given period may have been higher or lower than the amount of rental revenue recognized for the period. The difference by which straight-line rental revenue exceeded rents billed in accordance with lease agreements is recorded as “accounts receivable”. The difference by which rents billed in accordance with lease agreements exceeded straight-line rental revenue is recorded as “advances from customer”. The Company does not offset lease income and lease expense. |
NOTE 2 - SUMMARY OF SIGNIFIC_13
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: GRANT INCOME (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
GRANT INCOME | GRANT INCOME Grants received from PRC government agencies are recognized as deferred grant income and recognized in the unaudited condensed consolidated statements of operations and comprehensive loss as and when they are earned for the specific research and development projects for which these grants are designated for. |
NOTE 2 - SUMMARY OF SIGNIFIC_14
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: INCOME TAXES (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
INCOME TAXES | INCOME TAXES The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes We file federal and state income tax returns in the United States for our corporate operations pursuant to the U.S. Internal Revenue Code of 1986, as amended, and file separate foreign tax returns for our Chinese subsidiaries pursuant to the China's Unified Corporate Income Tax Law. We apply the provisions of ASC 740-10-50, "Accounting for Uncertainty in Income Taxes", which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our consolidated financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company's liability for income taxes. Any such adjustment could be material to the Company's results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of October 31, 2022, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. |
NOTE 2 - SUMMARY OF SIGNIFIC_15
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BASIC AND DILUTED EARNINGS PER SHARE (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
BASIC AND DILUTED EARNINGS PER SHARE | BASIC AND DILUTED EARNINGS PER SHARE Pursuant to ASC Section 260-10-45, basic loss per common share is computed by dividing loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted loss 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 ours, subject to anti-dilution limitations. The following table presents a reconciliation of basic and diluted net income per common share: Three Months Ended October 31, Six Months Ended October 31, Numerator: 2022 2021 2022 2021 Net Loss attributable to Sunwin Stevia International, Inc. $ (217,906) $ (1,168,862) $ (339,303) $ (1,629,055) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 199,632,803 199,632,803 Stock awards, options, and warrants - - - - Denominator for diluted earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 199,632,803 199,632,803 Basic and diluted loss per common share : Net loss per common share - basic and diluted $ (0.00) $ (0.01) $ (0.00) $ (0.01) |
NOTE 2 - SUMMARY OF SIGNIFIC_16
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: FOREIGN CURRENCY TRANSLATION (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
FOREIGN CURRENCY TRANSLATION | FOREIGN CURRENCY TRANSLATION Transactions and balances originally denominated in U.S. dollars are presented at their original amounts. Transactions and balances in other currencies are converted into U.S. dollars in accordance with ASC Section 830-20-35 and are included in determining net income or loss. The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company's operating subsidiaries is the Chinese Renminbi ("RMB"). In accordance with ASC 830-20-35, the consolidated financial statements were translated into United States dollars using balance sheet date rates of exchange for assets and liabilities, and average rates of exchange for the period for the income statements and cash flows. Equity accounts were stated at their historical rate. Net gains and losses resulting from foreign exchange transactions are included in the consolidated statements of operations. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in other comprehensive income or loss. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People's Bank of China (the "PBOC") or other institutions authorized to buy and sell foreign exchange. The exchange rate adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand. Translation of amounts from RMB into United States dollars ("$") was made at the following exchange rates for the respective periods: As of October 31, 2022 RMB 7.30 to $1.00 As of April 30, 2022 RMB 6.59 to $1.00 Six months ended October 31, 2022 RMB 6.85 to $1.00 Six months ended October 31, 2021 RMB 6.45 to $1.00 |
NOTE 2 - SUMMARY OF SIGNIFIC_17
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: COMPREHENSIVE LOSS (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
COMPREHENSIVE LOSS | COMPREHENSIVE LOSS Comprehensive loss is comprised of net loss and all changes to the statements of stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive loss for the three and six months ended October 31, 2022 and 2021 included net loss and unrealized gains (loss) from foreign currency translation adjustments. |
NOTE 2 - SUMMARY OF SIGNIFIC_18
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RESEARCH AND DEVELOPMENT (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT Research and development costs are expensed as incurred and are included in general and administrative expenses in the accompanying statements of operations. Research and development costs are incurred on a project specific basis. Research and development costs were $769,184 and $792,367 for the three months ended October 31, 2022 and 2021, and $1,204,752 and $1,148,080 for the six months ended October 31, 2022 and 2021, respectively. |
NOTE 2 - SUMMARY OF SIGNIFIC_19
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: SHIPPING COSTS (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
SHIPPING COSTS | SHIPPING COSTS Shipping costs are included in selling expenses and totaled $18,259 and $29,927 for the three months ended October 31, 2022 and 2021, and $42,511 and $50,088 for the six months ended October 31, 2022 and 2021, respectively. |
NOTE 2 - SUMMARY OF SIGNIFIC_20
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: SEGMENT REPORTING (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
SEGMENT REPORTING | SEGMENT REPORTING The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The Company's chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. |
NOTE 2 - SUMMARY OF SIGNIFIC_21
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Oct. 31, 2022 | |
Policies | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU provides an exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. This update also (1) requires an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (2) requires an entity to evaluate when a step-up in the tax basis of goodwill should be considered part of the business combination in which goodwill was originally recognized for accounting purposes and when it should be considered a separate transaction, and (3) requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, excluding entities eligible to be smaller reporting company. For all other entities, the requirements are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-13 has been amended by ASU 2019-04, ASU 2019-05, and ASU 2019-11. For entities that have not yet adopted ASU No. 2016-13, the effective dates and transition methodology for ASU 2019-04, ASU 2019-05, and ASU 2019-11 are the same as the effective dates and transition methodology in ASU 2016-13. The Company did not adopt this standard yet due to the status of smaller reporting company. We plan to adopt this standard for the year beginning May 1, 2023. We do not expect the adoption of this standard will have material impact on our consolidated financial statements. A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, we have not determined whether implementation of such proposed standards would be material to our consolidated financial statements. |
NOTE 2 - SUMMARY OF SIGNIFIC_22
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BASIC AND DILUTED EARNINGS PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended October 31, Six Months Ended October 31, Numerator: 2022 2021 2022 2021 Net Loss attributable to Sunwin Stevia International, Inc. $ (217,906) $ (1,168,862) $ (339,303) $ (1,629,055) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 199,632,803 199,632,803 Stock awards, options, and warrants - - - - Denominator for diluted earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 199,632,803 199,632,803 Basic and diluted loss per common share : Net loss per common share - basic and diluted $ (0.00) $ (0.01) $ (0.00) $ (0.01) |
NOTE 4 - INVENTORIES_ Schedule
NOTE 4 - INVENTORIES: Schedule of Inventory, Current (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of Inventory, Current | October 31, 2022 April 30, 2022 Raw materials $ 1,074,444 $ 2,417,724 Work in process 217,459 1,029,797 Finished goods 902,540 2,116,523 Inventories, gross 2,194,443 5,564,044 Less: reserve for obsolete inventory - - Inventories, net $ 2,194,443 $ 5,564,044 |
NOTE 6 - PROPERTY AND EQUIPME_2
NOTE 6 - PROPERTY AND EQUIPMENT: Schedule of property and equipment (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of property and equipment | October 31, 2022 April 30, 2022 Office equipment $ 420,808 $ 434,867 Auto and trucks 517,964 581,314 Manufacturing equipment 5,925,285 6,481,114 Buildings 8,529,981 9,452,467 Construction in process 15,521 17,200 Property and equipment, gross 15,409,559 16,966,962 Less: accumulated depreciation (9,137,445) (9,481,229) Property and equipment, net $ 6,272,114 $ 7,485,733 |
NOTE 7 - LAND USE RIGHTS_ Sched
NOTE 7 - LAND USE RIGHTS: Schedule of Land Use Rights (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of Land Use Rights | (Estimated Life) October 31, 2022 April 30, 2022 Land use rights (33 Years) 1,815,749 2,012,115 Less: accumulated amortization (83,804) (61,911) Land use rights, net 1,731,945 1,950,204 |
NOTE 8 - RELATED PARTY TRANSA_2
NOTE 8 - RELATED PARTY TRANSACTIONS: Schedule of Related Party Transactions (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of Related Party Transactions | October 31, 2022 April 30, 2022 Pharmaceutical Corporation $ 4,191,000 $ 4,646,092 Weidong Chai 225,504 236,070 Total $ 4,416,504 $ 4,882,162 |
NOTE 10 - ACCOUNTS PAYABLE AN_2
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES: Schedule of Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of Accounts Payable and Accrued Liabilities | Account October 31, 2022 April 30, 2022 Accounts payable $ 9,523,873 $ 7,945,913 Advanced from customers 291,513 121,183 Advanced from third parties* 753,811 1,208,900 Accrued salary payable 153,679 101,829 Tax payable 684,759 812,545 Other payable** 1,874,396 2,024,868 Total accounts payable and accrued expenses $ 13,282,031 $ 12,215,238 |
NOTE 11 -LOAN PAYABLE_ Schedule
NOTE 11 -LOAN PAYABLE: Schedule of Short-term loan payable (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of Short-term loan payable | October 31, 2022 April 30, 2022 Loan from Min Wu, an employee of Qufu Shengren, due on October 5, 2023, with an annual interest rate of 10%, renewed on October 6, 2022. $ 30,134 $ 33,393 Loan from Jianjun Yan, due on October 6, 2023, with an annual interest rate of 10%, renewed on October 7, 2022. 1,614,802 1,626,763 Loan from Jianjun Yan, due on April 18, 2023, with annual interest rate of 4%, renewed on April 19, 2022 for the term of one year. 121,494 134,633 Multiple loans from Jianjun Yan, due from May 13, 2023 to August 22, 2023, with annual interest rate of 12%, sign on period from May 14, 2022 to August 23, 2022. Partially repaid RMB2,165,000 ($315,851) in the six months ended October 31, 2022. 1,206,676 1,490,521 Loan from Junzhen Zhang, non-related individual, due on October 5, 2023, with an annual interest rate of 10%, renewed on October 6, 2022. 29,169 29,385 Loan from Junzhen Zhang, non-related individual, due on November 30, 2023, with an annual interest rate of 10%, signed on December 1, 2022. 21,094 23,375 Multiple loans from Jian Chen, non-related individual, due from May 20, 2023 to November 14, 2023, with an annual interest rate of 12%, signed from May 21, 2022 to November 15, 2022. 1,069,644 1,066,928 Loan from Qing Kong, non-related individual, due on March 6, 2023, with an annual interest rate of 10%, renewed on March 7, 2022. 96,126 106,522 Loan from Qing Kong, non-related individual, due on January 8, 2023, with an annual interest rate of 10%, renewed on January 9, 2022. 40,108 44,445 Loan from Guihai Chen, non-related individual, due on March 9, 2023, with an annual interest rate of 10%, renewed on March 10, 2022. 24,032 26,631 Loan from Guihai Chen, non-related individual, due on September 20, 2023, with an annual interest rate of 10%, renewed on September 21, 2022. 40,108 40,405 Loan from Weifeng Kong, non-related individual, due on November 28, 2023, with an annual interest rate of 10%, renewed on November 29, 2022. 27,394 30,357 Loan from Guohui Zhang, non-related individual, due on January 16, 2022, with an annual interest rate of 4% signed on January 17, 2021. - 254,148 Total short-term loan payable $ 4,320,781 $ 4,907,506 |
NOTE 12 - SEGMENT INFORMATION_
NOTE 12 - SEGMENT INFORMATION: Schedule of Segment Income (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of Segment Income | Three Months Ended October 31, Six Months Ended October 31, 2022 2021 2022 2021 Revenues: Stevioside $ 7,305,077 $ 10,001,477 $ 14,912,400 $ 16,163,155 Corporate and other 98,185 106,647 200,765 213,429 Total segment and consolidated revenues $ 7,403,262 $ 10,108,124 $ 15,113,165 $ 16,376,584 Interest expense: Stevioside $ (124,622) $ (119,934) $ (257,643) $ (190,605) Corporate and other - - - - Total segment and consolidated interest expense $ (124,622) $ (119,934) $ (257,643) $ (190,605) Depreciation and amortization: Stevioside $ 281,571 $ 312,038 $ 573,745 $ 623,881 Corporate and other 37,537 56,349 77,891 112,942 Total segment and consolidated depreciation and amortization $ 319,108 $ 368,387 $ 651,636 $ 736,823 Income (loss) from operations before income taxes: Stevioside $ (318,921) $ (1,941,725) $ (573,852) $ (2,753,962) Corporate and other 59,270 48,952 120,050 111,072 Total loss from operations before income taxes $ (259,651) $ (1,892,773) $ (453,802) $ (2,642,890) |
NOTE 12 - SEGMENT INFORMATION_2
NOTE 12 - SEGMENT INFORMATION: Schedule of Segment Property and Equipment (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of Segment Property and Equipment | October 31, 2022 April 30, 2022 Segment property and equipment: Stevioside $ 4,873,051 $ 5,854,328 Corporate and other 1,399,063 1,631,405 Total property and equipment $ 6,272,114 $ 7,485,733 |
NOTE 13 - CONCENTRATIONS AND _2
NOTE 13 - CONCENTRATIONS AND CREDIT RISK: Schedule of Revenue by Major Customers by Reporting Segments (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of Revenue by Major Customers by Reporting Segments | For the three months ended October 31, For the six months ended October 31, Customer 2022 2021 2022 2021 A 44.4% 39.7% 47.7% 39.0% B - 18.5% - 11.5% |
NOTE 13 - CONCENTRATIONS AND _3
NOTE 13 - CONCENTRATIONS AND CREDIT RISK: Schedule of Major Vendors (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of Major Vendors | For the three months ended October 31, For the six months ended October 31, Supplier 2022 2021 2022 2021 A - 40.5% 29.3% 53.6% B - - - 13.6% C 25.0% - - - D 20.6% - - - E 18.9% - - - F 14.6% - - - |
NOTE 13 - CONCENTRATIONS AND _4
NOTE 13 - CONCENTRATIONS AND CREDIT RISK: Schedule of cash position by geographic area (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Tables/Schedules | |
Schedule of cash position by geographic area | Country: October 31, 2022 April 30, 2022 United States $ 59,918 2.2% $ 18,033 5.6% China 2,714,108 97.8% 303,160 94.4% Total cash and cash equivalents $ 2,774,026 100.00% $ 321,193 100.00% |
NOTE 2 - SUMMARY OF SIGNIFIC_23
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ACCOUNTS RECEIVABLE (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Details | ||
Balances for allowance of doubtful accounts | $ 72,090 | $ 79,886 |
NOTE 2 - SUMMARY OF SIGNIFIC_24
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: INVENTORIES (Details) - USD ($) | 6 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||
Inventory Write-down | $ 56,435 | $ 653,505 |
NOTE 2 - SUMMARY OF SIGNIFIC_25
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: LONG-LIVED ASSETS (Details) - USD ($) | 6 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||
Gain on disposition of property and equipment | $ 423 | |
Loss on disposition of property and equipment | $ 386,687 |
NOTE 2 - SUMMARY OF SIGNIFIC_26
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: TAXES PAYABLE (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Details | ||
Taxes payable including VAT | $ 684,759 | $ 812,545 |
NOTE 2 - SUMMARY OF SIGNIFIC_27
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BASIC AND DILUTED EARNINGS PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||||
Net loss attributable to Sunwin Stevia International, Inc. | $ (217,906) | $ (1,168,862) | $ (339,303) | $ (1,629,055) |
Weighted Average Number of Shares Issued, Basic | 199,632,803 | 199,632,803 | 199,632,803 | 199,632,803 |
Weighted Average Number of Shares Outstanding, Diluted | 199,632,803 | 199,632,803 | 199,632,803 | 199,632,803 |
Net loss per common share - basic and diluted | $ 0 | $ (0.01) | $ 0 | $ (0.01) |
NOTE 2 - SUMMARY OF SIGNIFIC_28
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: FOREIGN CURRENCY TRANSLATION (Details) | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Apr. 30, 2022 | |
Details | |||
Foreign Currency Exchange Rate, Translation | 7.30 | 6.59 | |
Average exchange rates | 6.85 | 6.45 |
NOTE 2 - SUMMARY OF SIGNIFIC_29
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RESEARCH AND DEVELOPMENT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||||
Research and development included in general and administrative expenses | $ 769,184 | $ 792,367 | $ 1,204,752 | $ 1,148,080 |
NOTE 2 - SUMMARY OF SIGNIFIC_30
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: SHIPPING COSTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||||
Shipping costs | $ 18,259 | $ 29,927 | $ 42,511 | $ 50,088 |
NOTE 3 - NONCONTROLLING INTER_2
NOTE 3 - NONCONTROLLING INTEREST (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Details | ||
Noncontrolling interest deficit | $ 3,613,605 | $ 3,340,248 |
NOTE 4 - INVENTORIES_ Schedul_2
NOTE 4 - INVENTORIES: Schedule of Inventory, Current (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Details | ||
Raw materials | $ 1,074,444 | $ 2,417,724 |
Work in process | 217,459 | 1,029,797 |
Finished goods | 902,540 | 2,116,523 |
Inventory, Gross | 2,194,443 | 5,564,044 |
Reserve for obsolete inventory | 0 | 0 |
Inventories, net | $ 2,194,443 | $ 5,564,044 |
NOTE 4 - INVENTORIES (Details)
NOTE 4 - INVENTORIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Details | |||
Wrote down inventories | $ 465,801 | $ 56,435 | $ 653,505 |
NOTE 5 - PREPAID EXPENSES AND_2
NOTE 5 - PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Details | ||
Prepaid expenses and other current assets | $ 3,711,037 | $ 2,765,819 |
Prepayments to suppliers | 2,456,119 | 1,510,032 |
Business related employees' advances | $ 1,254,918 | $ 1,255,787 |
NOTE 6 - PROPERTY AND EQUIPME_3
NOTE 6 - PROPERTY AND EQUIPMENT: Schedule of property and equipment (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Details | ||
Office Equipment | $ 420,808 | $ 434,867 |
Auto and Trucks | 517,964 | 581,314 |
Machinery and Equipment, Gross | 5,925,285 | 6,481,114 |
Buildings and Improvements, Gross | 8,529,981 | 9,452,467 |
Construction in Progress, Gross | 15,521 | 17,200 |
Property, Plant and Equipment, Gross | 15,409,559 | 16,966,962 |
Less: accumulated depreciation | (9,137,445) | (9,481,229) |
Property and equipment, net | $ 6,272,114 | $ 7,485,733 |
NOTE 6 - PROPERTY AND EQUIPME_4
NOTE 6 - PROPERTY AND EQUIPMENT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||||
Total Depreciation Expense | $ 311,353 | $ 336,757 | $ 621,883 | $ 705,193 |
Depreciation in Cost of Revenue | $ 268,037 | $ 285,439 | $ 532,156 | $ 599,172 |
NOTE 7 - LAND USE RIGHTS_ Sch_2
NOTE 7 - LAND USE RIGHTS: Schedule of Land Use Rights (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Details | ||
Land use rights for Qufu Shengren | $ 1,815,749 | $ 2,012,115 |
Land use rights accumulated amortization | (83,804) | (61,911) |
Land use rights for Qufu Shengren, net | $ 1,731,945 | $ 1,950,204 |
NOTE 7 - LAND USE RIGHTS (Detai
NOTE 7 - LAND USE RIGHTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||||
Amortization expense for land use rights for Qufu Shengren | $ 14,551 | $ 15,805 | $ 29,753 | $ 31,630 |
NOTE 8 - RELATED PARTY TRANSA_3
NOTE 8 - RELATED PARTY TRANSACTIONS: Schedule of Related Party Transactions (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Details | ||
Due to Pharmaceutical Corporation | $ 4,191,000 | $ 4,646,092 |
Due to Weidong Chai | 225,504 | 236,070 |
Total Due to Related Parties | $ 4,416,504 | $ 4,882,162 |
NOTE 8 - RELATED PARTY TRANSA_4
NOTE 8 - RELATED PARTY TRANSACTIONS (Details) | Sep. 23, 2019 USD ($) |
Details | |
Borrowing from Weidong Cai | $ 167,000 |
NOTE 9 - OPERATING LEASE (Detai
NOTE 9 - OPERATING LEASE (Details) - USD ($) | 6 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||
Revenue - Lease from Metformin Production Line | $ 200,765 | $ 213,429 |
NOTE 10 - ACCOUNTS PAYABLE AN_3
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES: Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Details | ||
Accounts Payable | $ 9,523,873 | $ 7,945,913 |
Customer Advances, Current | 291,513 | 121,183 |
Advanced from third parties | 753,811 | 1,208,900 |
Accrued salary payable | 153,679 | 101,829 |
Taxes Payable, Current | 684,759 | 812,545 |
Accounts Payable, Other, Current | 1,874,396 | 2,024,868 |
Accounts Payable and Accrued Liabilities, Current | $ 13,282,031 | $ 12,215,238 |
NOTE 10 - ACCOUNTS PAYABLE AN_4
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Details | ||
General liability, worker's compensation, and medical insurance payable | $ 358,648 | $ 428,773 |
Consulting fee payable | 185,902 | 206,007 |
Union and education fees payable | 121,325 | 134,598 |
Interest payables for short-term loans | 297,456 | 366,249 |
Safety production fund payable | 627,919 | 627,138 |
Advanced from the employees | 126,815 | 106,253 |
Security deposit for sub-contractor | 136,971 | 151,784 |
Other miscellaneous payables | $ 19,360 | $ 4,066 |
NOTE 11 -LOAN PAYABLE_ Schedu_2
NOTE 11 -LOAN PAYABLE: Schedule of Short-term loan payable (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Details | ||
Loan from Min Wu A | $ 30,134 | $ 33,393 |
Loan from Jianjun Yan A | 1,614,802 | 1,626,763 |
Loan from Jianjun Yan B | 121,494 | 134,633 |
Loan from Jianjun Yan C | 1,206,676 | 1,490,521 |
Loan from Junzhen Zhang A | 29,169 | 29,385 |
Loan from Junzhen Zhang B | 21,094 | 23,375 |
Loan from Jian Chen A | 1,069,644 | 1,066,928 |
Loan from Qing Kong A | 96,126 | 106,522 |
Loan from Qing Kong B | 40,108 | 44,445 |
Loan from Guihai Chen A | 24,032 | 26,631 |
Loan from Guihai Chen B | 40,108 | 40,405 |
Loan from Weifeng Kong A | 27,394 | 30,357 |
Loan from Guohui Zhang A | 0 | 254,148 |
ShortTermLoanPayable | $ 4,320,781 | $ 4,907,506 |
NOTE 12 - SEGMENT INFORMATION_3
NOTE 12 - SEGMENT INFORMATION: Schedule of Segment Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||||
Net revenues - Stevioside - third party | $ 7,305,077 | $ 10,001,477 | $ 14,912,400 | $ 16,163,155 |
Net revenues - Corporate - third party | 98,185 | 106,647 | 200,765 | 213,429 |
Net revenues - Total segment and consolidated revenues | 7,403,262 | 10,108,124 | 15,113,165 | 16,376,584 |
Interest income - Stevioside | (124,622) | (119,934) | (257,643) | (190,605) |
Interest income - Corporate | 0 | 0 | 0 | 0 |
Interest income - Total segment and consolidated interest expense | (124,622) | (119,934) | (257,643) | (190,605) |
Depreciation and amortization - Stevioside | 281,571 | 312,038 | 573,745 | 623,881 |
Depreciation and amortization - Corporate | 37,537 | 56,349 | 77,891 | 112,942 |
Depreciation and amortization - Total segment and consolidated depreciation and amortization | 319,108 | 368,387 | 651,636 | 736,823 |
Loss before taxes and noncontrolling interest - Stevioside | (318,921) | (1,941,725) | (573,852) | (2,753,962) |
Loss before taxes and noncontrolling interest - Corporate | 59,270 | 48,952 | 120,050 | 111,072 |
Income (loss) before income taxes - Total segment | $ (259,651) | $ (1,892,773) | $ (453,802) | $ (2,642,890) |
NOTE 12 - SEGMENT INFORMATION_4
NOTE 12 - SEGMENT INFORMATION: Schedule of Segment Property and Equipment (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Details | ||
Segment assets-Stevioside | $ 4,873,051 | $ 5,854,328 |
Segment assets-Corporate and other | 1,399,063 | 1,631,405 |
Segment assets-Total consolidated assets | $ 6,272,114 | $ 7,485,733 |
NOTE 13 - CONCENTRATIONS AND _5
NOTE 13 - CONCENTRATIONS AND CREDIT RISK: Schedule of Revenue by Major Customers by Reporting Segments (Details) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||||
Vendor A | 44.40% | 39.70% | 47.70% | 39% |
Vendor B | 0% | 18.50% | 0% | 11.50% |
NOTE 13 - CONCENTRATIONS AND _6
NOTE 13 - CONCENTRATIONS AND CREDIT RISK: Schedule of Major Vendors (Details) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Details | ||||
Supplier A | 0% | 40.50% | 29.30% | 53.60% |
Supplier B | 0% | 0% | 0% | 13.60% |
Supplier C | 25% | 0% | 0% | 0% |
Supplier D | 20.60% | 0% | 0% | 0% |
Supplier E | 18.90% | 0% | 0% | 0% |
Supplier F | 14.60% | 0% | 0% | 0% |
NOTE 13 - CONCENTRATIONS AND _7
NOTE 13 - CONCENTRATIONS AND CREDIT RISK: Schedule of cash position by geographic area (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Details | ||
Cash held in United States | $ 59,918 | $ 18,033 |
Percent of Cash held in United States | 2.20% | 5.60% |
Cash held in PRC | $ 2,714,108 | $ 303,160 |
Percent of Cash held in PRC | 97.80% | 94.40% |