Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | ||
Jan. 31, 2014 | Mar. 16, 2014 | Oct. 31, 2012 | |
Document and Entity Information: | ' | ' | ' |
Entity Registrant Name | 'SUNWIN STEVIA INTERNATIONAL, INC. | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 31-Jan-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000806592 | ' | ' |
Current Fiscal Year End Date | '--04-30 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 173,882,803 | ' |
Entity Public Float | ' | ' | $24,365,308 |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Current Reporting Status | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
SUNWIN_STEVIA_INTERNATIONAL_IN
SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $830,035 | $517,106 |
Accounts receivable, net of allowance for doubtful accounts of $1,134,102 and $1,000,291, respectively | 1,397,527 | 1,614,152 |
Accounts receivable - related party | 644,448 | 1,239,222 |
Notes receivable | ' | 41,851 |
Loan receivable | ' | 43,614 |
Inventories, net | 4,829,146 | 4,927,971 |
Prepaid expenses and other current assets | 1,300,365 | 1,189,416 |
Total Current Assets | 9,001,521 | 9,573,332 |
Investment in real estate held for resale | 1,981,879 | 1,947,042 |
Property and equipment, net | 14,936,633 | 15,725,384 |
Intangible assets, net | 1,165,209 | 1,409,090 |
Land use rights, net | 2,287,635 | 2,289,544 |
Total Assets | 29,372,877 | 30,944,392 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable and accrued expenses | 3,310,019 | 3,626,117 |
Loan payable | ' | 804,829 |
Deferred grant income | 764,614 | ' |
Due to related party | 220,883 | 174,404 |
Total Current Liabilities | 4,295,516 | 4,605,350 |
STOCKHOLDERS' EQUITY: | ' | ' |
Common stock, $0.001 par value, 200,000,000 shares authorized; 173,882,803 and 173,882,803 shares issued and outstanding as of January 31, 2013 and April 30, 2013, respectively | 173,883 | 173,883 |
Additional paid-in capital | 33,479,529 | 33,479,529 |
Accumulated deficit | -14,539,152 | -12,829,706 |
Accumulated other comprehensive income | 5,963,101 | 5,515,336 |
Total Stockholders' Equity | 25,077,361 | 26,339,042 |
Total Liabilities and Stockholders' Equity | $29,372,877 | $30,944,392 |
SUNWIN_STEVIA_INTERNATIONAL_IN1
"SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | |
Revenues: | ' | ' | ' | ' |
Revenues | $2,394,691 | $1,798,944 | $6,201,563 | $6,091,339 |
Revenues - related party | 833,657 | 171,547 | 2,567,648 | 1,576,463 |
Total revenues | 3,228,348 | 1,970,491 | 8,769,211 | 7,667,802 |
Cost of revenues | 2,549,994 | 1,572,761 | 7,344,223 | 6,212,586 |
Gross profit | 678,354 | 397,730 | 1,424,988 | 1,455,216 |
Operating expenses: | ' | ' | ' | ' |
Loss on disposition of property and equipment | ' | 209,194 | ' | 209,194 |
Selling expenses | 361,417 | 261,452 | 930,684 | 751,873 |
General and administrative expenses | 818,861 | 737,802 | 2,621,703 | 3,551,722 |
Total operating expenses | 1,180,278 | 1,208,448 | 3,552,387 | 4,512,789 |
Loss from operations | -501,924 | -810,718 | -2,127,399 | -3,057,573 |
Other income (expense): | ' | ' | ' | ' |
Other income (expenses) | 371,343 | -20,204 | 486,858 | -15,553 |
Interest (expenses) income | -35,481 | 637 | -68,731 | 8,170 |
Total other income | 335,862 | -19,567 | 418,217 | -7,383 |
Loss before income taxes | -166,062 | -830,285 | -1,709,446 | -3,064,956 |
Income taxes expense | ' | 3,444 | -174 | ' |
Net loss | -166,062 | -826,841 | -1,709,446 | -3,064,956 |
Comprehensive loss | ' | ' | ' | ' |
Net loss | -166,062 | -826,841 | -1,709,446 | -3,064,956 |
Foreign currency translation adjustment | 30,286 | 11,377 | 447,765 | 74,779 |
Total Comprehensive loss | ($135,776) | ($815,464) | ($1,261,681) | ($2,990,177) |
Net Loss per share-basic and diluted | ($0.00) | ($0.01) | ($0.01) | ($0.02) |
Weighted average common shares outstanding - basic and diluted | 173,882,803 | 173,347,671 | 173,882,803 | 165,946,391 |
SUNWIN_STEVIA_INTERNATIONAL_IN2
SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($1,709,446) | ($3,064,956) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ' | ' |
Depreciation expense | 1,346,728 | 1,240,136 |
Amortization of intangible assets | 243,881 | 135,490 |
Amortization of land use right | 43,090 | 42,022 |
Realized comprehensive loss | 1,535 | ' |
Loss on disposition of property and equipment | ' | 209,194 |
Stock issued for employee compensation | ' | 810,000 |
Stock issued for services | ' | 614,959 |
Inventory impairment change | ' | -3,593 |
Allowance for doubtful accounts | 115,101 | -91,648 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable and notes receivable | 170,984 | 982,660 |
Accounts receivable - related party | 612,620 | -175,178 |
Inventories | 185,685 | -968,145 |
Prepaid expenses and other current assets | -185,478 | -937,729 |
Due from related party | ' | -792,126 |
Tax receivable | ' | -135,966 |
Accounts payable and accrued expenses | -391,893 | -263,390 |
Deferred grant income | 759,252 | ' |
Taxes payable | 110,144 | -73,310 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 1,302,203 | -2,471,580 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | -273,794 | -2,677,493 |
Increase in loan receivable | ' | -1,718 |
Proceeds from loan receivable | 43,614 | 1,921,358 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | -230,180 | -757,853 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Repayment of short-term loan | -813,484 | ' |
Advance due to related party | ' | 351,873 |
Proceed from (repayment of) related party advances | 43,052 | -12,546 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | -770,432 | 339,327 |
EFFECT OF EXCHANGE RATE ON CASH | 12,894 | -495 |
NET CHANGE IN CASH | 312,929 | -2,890,601 |
Cash | 517,106 | 2,958,895 |
Cash | 830,035 | 68,294 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ' | ' |
Cash paid for income taxes | 174 | 35,092 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ' | ' |
Intangible assets acquired from acquistion | ' | $1,625,874 |
Shares issued for acquisition | ' | 1,625,874 |
Note_1_Organization_and_Operat
Note 1 - Organization and Operations | 9 Months Ended |
Jan. 31, 2014 | |
Notes | ' |
Note 1 - Organization and Operations | ' |
NOTE 1 - ORGANIZATION AND OPERATIONS | |
DESCRIPTION OF BUSINESS | |
Sunwin Stevia International, Inc., a Nevada corporation, and its subsidiaries are referred to in this report as “we”, “us”, "our”, or “Sunwin”. We changed our name from Sunwin Neutraceuticals International Inc. to Sunwin Stevia International, Inc. on April 23, 2012 to more accurately reflect our business operations. | |
We sell stevioside, a natural sweetener, as well as herbs used in traditional Chinese medicines and veterinary products. 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 Stevioside and Chinese Medicine product lines. | |
Stevioside Segment | |
In our Stevioside segment, we produce and sell a variety of purified steviol glycosides with rebaudioside A and stevioside as the principal components, an all natural, low calorie sweetener, and OnlySweet, a stevioside based table top sweetener. | |
Chinese Medicine Segment | |
In our Chinese Medicine Segment, we manufacture and sell a variety of traditional Chinese medicine formula extracts which are used in products made for use by both humans and animals. | |
Qufu Shengwang | |
In fiscal 2009, Qufu Natural Green acquired a 60% interest in Qufu Shengwang from its shareholder, Shandong Group, for $4,026,851. The purchase price represented 60% of the value of the net tangible assets of Qufu Shengwang as of April 30, 2008. Shandong Group is owned by Laiwang Zhang, our President and Chairman of the Board of Directors. Qufu Shengwang manufactures and sells stevia -based fertilizers and feed additives. | |
On September 30, 2011, Qufu Shengwang purchased the 40% equity interest in Qufu Shengwang owned by our Korean partner, Korea Stevia Company, Limited, for $626,125 in cash, and as a result of this repurchase transaction we now own 100% equity interest in all of the net assets of our subsidiary Qufu Shengwang. Therefore, the non-controlling interest of $2,109,028 in our balance sheet as of April 30, 2012 has been eliminated to reflect our 100% interest in Qufu Shengwang. On July 1, 2012, Qufu Shengwang entered the Cooperation Agreement with Hegeng (Beijing) Organic Farm Technology Co, Ltd. (“Hegeng”), a Chinese manufacturer and distributor of bio-fertilizers and pesticides, to jointly develop bio-bacterial fertilizers based on the residues from our stevia extraction. Under the Cooperation Agreement, Hegeng provides strain and formula that we apply to the stevia residues to produce bio-bacterial fertilizers in the current facility of Qufu Shengwang. The bio-bacterial fertilizers will be distributed under Qufu Shengwang’s name. No additional investment in the facility would be required. During the third quarter of fiscal 2013, we decided to suspend the agreement with Hegeng due to a lack of sales since the reaction to the products was lower than anticipated in fertilizer market. Currently we plan to use these assets to manufacture a variety of traditional Chinese medicine formula extracts. We expect to start production in fiscal 2014. | |
Qufu Shengren | |
In fiscal 2009, Qufu Natural Green acquired Qufu Shengren for $3,097,242. The purchase price was equal to the value of the assets of Qufu Shengren as determined by an independent asset appraisal in accordance with asset appraisal principles in the PRC. Prior to being acquired by us, Qufu Shengren was engaged in the production and distribution of bulk drugs and pharmaceuticals. Subsequent to the acquisition, Qufu Shengren produces and distributes steviosides with a full range of grades from rebaudioside-A 10 to 98. | |
Sunwin USA | |
In fiscal 2009, we entered into a distribution agreement with WILD Flavors to assist our 55% owned subsidiary, Sunwin USA, in the marketing and worldwide distribution of our stevioside-based sweetener products and issued WILD Flavors a 45% interest in Sunwin USA. | |
On August 8, 2012, we entered into an Exchange Agreement with WILD Flavors pursuant to which we purchased its 45% membership interest in Sunwin USA for an aggregate consideration of approximately $1,625,874, which includes the issuance of 7,666,666 shares of our common stock valued at approximately $1,533,333 and a cash payment of $92,541. The transaction closed on August 20, 2012. On August 22, 2012, we issued 7,666,666 shares of our common stock and paid $92,541 cash to WILD Flavors. The $92,541 cash payment was paid by China Direct Investment, Inc. (“CDI”), our corporate management services provider, and reimbursed by us to CDI through the issuance of our common shares as part of the terms of the consulting agreement with CDI dated May 1, 2012. The net tangible assets of Sunwin USA were reduced from $1,825,804 to $1,625,874 as a result of the application of generally accepted accounting principles (“U.S. GAAP”) which requires elimination of the difference between the purchase price of the 45% membership interest in Sunwin USA and cost basis of the intangible assets recorded by Sunwin USA. Intangible assets include the product development and supply chain for OnlySweet. | |
Under the terms of the agreement, WILD Flavors assumed certain pre-closing obligations of Sunwin USA totaling approximately $694,000, including trade accounts receivable, loans, health care and monthly expenses of an employee, potential chargebacks, bank fees and broker commissions incurred prior to the closing date. The agreement also contained customary joint indemnification and general releases. As a result of this transaction, we began consolidating the operations of Sunwin USA from the date of acquisition (August 20, 2012). | |
In addition to the Exchange Agreement, on August 8, 2012 we entered into the following additional agreements with WILD Flavors or its affiliate: | |
- We entered into an Amendment to Operating Agreement with WILD Flavors pursuant to which we are now the sole manager of Sunwin USA and certain sections of the original agreement dated April 29, 2009 were cancelled as they were no longer relevant following our purchase of the minority interest in Sunwin USA described above; | |
- We entered into a Termination of Distribution Agreement with WILD Flavors and Sunwin USA pursuant to which the Distribution Agreement dated February 5, 2009 was terminated; and | |
- We entered into a Distributorship Agreement with WILD Procurement Gmbh, a Swiss corporation (“WILD Procurement”) which is an affiliate of WILD Flavors. Under the terms of this agreement, we appointed WILD Procurement as a non-exclusive world-wide distributor for the resale of our stevia products. There are no minimum purchase quantities under the agreement, and the pricing and terms of each order will be negotiated by the parties at the time each purchase order is placed. The agreement restricts WILD Procurement from purchasing steviosides or other forms of stevia that are included in our products from sources other than our company under certain circumstances. In addition, at such time as we desire to offer new products, we must first offer WILD Procurement the non-exclusive right to distribute those products and the parties will have 60 days to reach mutually agreeable terms. The agreement contains certain representations by us as to the quality of the products we may sell WILD Procurement and the products’ compliance with applicable laws and good manufacturing practices, as well as customary confidentiality and indemnification provisions. | |
In the event WILD Procurement should fund research on stevia used in food, beverage or dietary supplement applications, and as a result of this research it develops new intellectual property, such intellectual property shall be the sole property of WILD Procurement. In the event we should jointly fund research, any new intellectual property developed from this effort will be jointly owned and each party will have the right to use the developed intellectual property in stevia-based products. | |
The agreement is for an initial term of 12 months and will automatically renew for successive 12 month terms unless the agreement has been terminated by either party upon 45 days prior written notice. There are no assurances any purchase orders will be placed under the terms of the Distribution Agreement. The agreement may also be terminated by either party upon a material breach by the other party, or upon the filing of a bankruptcy petition, both subject to certain cure periods. In the event the agreement is terminated, WILD Procurement has the right to continue to distribute our products on a non-exclusive basis for 24 months upon terms and conditions to be negotiated by the parties. |
Note_2_Summary_of_Significant_
Note 2- Summary of Significant Accounting Policies | 9 Months Ended | ||||
Jan. 31, 2014 | |||||
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 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. | |||||
These unaudited condensed consolidated interim financial statements should be read in conjunction with the financial statements and footnotes for the year ended April 30, 2013 included in our Form 10-K as filed with the SEC. The results of operations and cash flows for the nine months ended January 31, 2014 are not necessarily indicative of the results of operations or cash flows which may be reported for future periods or the full fiscal year. | |||||
Our unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Our subsidiaries include the following: | |||||
- | Qufu Natural Green; | ||||
- | Qufu Shengren; | ||||
- | Qufu Shengwang; | ||||
- | Sunwin Tech; and | ||||
- | Sunwin USA | ||||
As reflected in the accompanying unaudited condensed consolidated financial statements, during the first nine months of fiscal year 2014, the Company had a net loss of approximately $1.7 million and net cash provided by operations of $1.3 million. At January 31, 2014, we had working capital of $4.7million, including cash of $830,000. We believe the Company has the ability to further implement its business plan, raise additional capital, generate more revenues, and collect receivables from the third party and related parties to increase the working capital. | |||||
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 | |||||
We consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash and equivalents. As of January 31, 2014, we held $825,525 of our cash and cash equivalents with commercial banking institutions in the PRC, and $4,510 with banks in the United States. As of April 30, 2013, we held $516,071 of our cash and cash equivalents with commercial banking institution in PRC, and $1,035 in the United States. In China, there is no equivalent federal deposit insurance as in the United States, so the amounts held in banks in China are not insured. We have not experienced any losses in such bank accounts through January 31, 2014. | |||||
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. At January 31, 2014 and April 30, 2013, the allowance for doubtful accounts was $1,134,102 and $1,000,291, 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 market (estimated net realizable value) utilizing the weighted average method. An allowance is established when management determines that certain inventories may not be saleable. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record reserves for the difference between the cost and the market value. These reserves are recorded based on estimates. At January 31, 2014 and April 30, 2013, the Company recorded a reserve for obsolete or slow-moving inventories of $971,178 and $954,108, 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 five to twenty 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. | |||||
LONG-LIVED ASSETS | |||||
In accordance with ASC Topic 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, for the three and nine month ended January 31, 2013, we recorded an impairment loss of $209,194 and $209,194, related to impairment of the carrying amounts certain machinery and equipment deemed unusable as, respectively. | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
We follow the FASB ASC 825-10-50-10 for disclosures regarding the fair value of financial instruments and have adopted ASC 820-10-35-37 to measure the fair value of our financial instruments. ASC 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 820-10-35-37 did not have an impact on our financial position or operating results, but did expand certain disclosures. | |||||
ASC 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 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. In addition, we pay value added taxes on our primary purchases, recorded as a receivable. These amounts are presented as net amounts for financial statement purposes. Taxes payable at January 31, 2014 and April 30, 2013 amounted to $13,801 and $0, respectively, consisting primarily of VAT taxes payable. | |||||
REVENUE RECOGNITION | |||||
In general, we record revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. | |||||
GRANT INCOME | |||||
Grants received from PRC government agencies are recognized as deferred grant income and recognized in the consolidated statements of operations as and when they are incurred for the specific research and development projects or general operation purpose for which these grants are received. | |||||
INCOME TAXES | |||||
We file federal and state income tax returns in the United States for our corporate operations, and file separate foreign tax returns for our Chinese subsidiaries. We account for income taxes under the provisions of ASC 740-10-30, which is an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. | |||||
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 January 31, 2014, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. | |||||
BASIC AND DILUTED LOSS PER SHARE | |||||
Pursuant to ASC 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 us, subject to anti-dilution limitations. The following table presents a reconciliation of basic and diluted net income per ordinary share: | |||||
Three Months Ended | Nine Months Ended | ||||
January 31, | January 31, | ||||
2014 | 2013 | 2014 | 2013 | ||
Net Net loss allocable to common shareholders for basic and diluted net loss per common share | $ (166,062) | $ (826,841) | $ (1,709,446) | $ (3,064,956) | |
Weighted average common shares outstanding - basic | 173,882,803 | 173,374,671 | 173,882,803 | 165,946,391 | |
Effect of dilutive securities: | |||||
Warrants | 0 | 0 | 0 | 0 | |
Weighted average common shares outstanding – diluted | 173,882,803 | 173,374,671 | 173,882,803 | 165,946,391 | |
Net loss per common share - basic | $ (0.001) | $ (0.005) | $ (0.009) | $ (0.018) | |
Net loss per common share - diluted | $ (0.001) | $ (0.005) | $ (0.009) | $ (0.018) | |
For the three and nine months ended January 31, 2014 and 2013, the effect of 26,666,666 outstanding common stock purchase warrants were anti-dilutive as we reported a net loss applicable to our common shareholders for both periods., and these outstanding purchase warrants re anti-dilutive as the exercise price of the warrants exceeded the average market price. As a result, basic loss per share was equal to diluted loss per share for the three and nine months ended January 31, 2014 and 2013. | |||||
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 April 30, 2013 | RMB 6.21 to $1.00 | ||||
As of January 31, 2014 | RMB 6.10 to $1.00 | ||||
Nine months ended January 31, 2014 | RMB 6.15 to $1.00 | ||||
Nine months ended January 31, 2013 | RMB 6.30 to $1.00 | ||||
CONCENTRATIONS OF CREDIT RISK | |||||
Substantially all of our operations are carried out in the PRC. Accordingly, our business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. Our operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America. Our results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. | |||||
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 China. At January 31, 2014, we had $825,525 on deposit in China, which is not insured. We have not experienced any losses in such accounts through January 31, 2014. | |||||
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. | |||||
STOCK-BASED COMPENSATION | |||||
Stock-based compensation is accounted for based on the requirements of the Share-Based Payment topic of ASC Topic 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). “FASB” ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. | |||||
Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company records compensation expense based on the fair value of the award at the reporting date. The awards to consultants and other third-parties are then revalued, or the total compensation is recalculated, based on the then current fair value, at each subsequent reporting date. | |||||
RESEARCH AND DEVELOPMENT | |||||
Research and development costs are expensed as incurred and are included in general and administrative expenses in the accompanying consolidated statements of operations. Research and development costs are incurred on a project specific basis. Research and development costs were $24,343 and $64,541 for the nine months ended January 31, 2014 and 2013, respectively. | |||||
RECENT ACCOUNTING PRONOUNCEMENTS | |||||
In March 2013, the FASB issued ASU 2013-05 “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 addresses the accounting for the cumulative translation adjustment when a parent either sells part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. For public entities, the ASU is effective prospectively for fiscal years, and interim periods, within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU 2013-05 is not expected to have a material impact on the Company’s 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_3_investment_in_Real_Esta
Note 3 -investment in Real Estate Held For Resale | 9 Months Ended |
Jan. 31, 2014 | |
Notes | ' |
Note 3 -investment in Real Estate Held For Resale | ' |
NOTE 3 - INVESTMENT IN REAL ESTATE HELD FOR RESALE | |
On August 25, 2011, Qufu Natural Green entered into an agreement with Qufu Jinxuan Real Estate Development Co., Ltd., an unaffiliated third party, to purchase thirty apartment units in China for investment. The total area of the apartment complex units is 41,979 square feet, with 6,458 square feet of storage area for a total purchase price of RMB15,120,000 (approximately $2,390,325) (the “Purchase Price”). Under the terms of the agreement, the apartment units were expected to be delivered by December 30, 2012. As of January 31, 2014, we are processing the deed and other legal documents for the apartment; the apartment units are expected to be delivered by the fourth quarter of fiscal year 2014. We prepaid 30% of the Purchase Price, approximately $717,097, upon signing the agreement on August 25, 2011. An additional 50% of the Purchase Price, or approximately $1,195,162, was paid on December 8, 2011, with the balance of approximately $478,066 due upon completion of the ownership documents and transfer of the apartment units to us. As of January 31, 2014 and April 30, 2013, we classified investment in real estate held for resale as a long-term asset since we do not plan on selling the apartment units within one year. As of January 31, 2014 and April 30, 2013, investment in real estate held for resale amounted to 3XJJTZZL|Tag=-gaap:RealEstateInvestments|Label=vestment in real estate held for resale|Time 14-01-31»$1,981,879 and $1,947,042, respectively. |
Note_4_Inventories
Note 4 - Inventories | 9 Months Ended | ||
Jan. 31, 2014 | |||
Notes | ' | ||
Note 4 - Inventories | ' | ||
NOTE 4 - INVENTORIES | |||
At January 31, 2014 and April 30, 2013, inventories consisted of the following: | |||
January 31, 2014 (Unaudited) | 30-Apr-13 | ||
Raw materials | $ 1,149,987 | $ 1,099,001 | |
Work in process | 863,664 | 659,631 | |
Finished goods | 3,786,673 | 4,123,447 | |
Inventories, gross | 5,800,324 | 5,882,079 | |
Less: reserve for obsolete inventory | (971,178) | (954,108) | |
Inventories, net | $ 4,829,146 | $ 4,927,971 |
Note_5_Property_and_Equipment
Note 5 - Property and Equipment | 9 Months Ended | ||
Jan. 31, 2014 | |||
Notes | ' | ||
Note 5 - Property and Equipment | ' | ||
NOTE 5 - PROPERTY AND EQUIPMENT | |||
At January 31, 2014 and April 30, 2013, property and equipment consisted of the following: | |||
(Estimated Life) | January 31, 2014 (Unaudited) | 30-Apr-13 | |
Office Equipment (5-7 Years) | $ 55,282 | $ 48,741 | |
Auto and Trucks (10 Years) | 936,520 | 907,480 | |
Manufacturing Equipment (20 Years) | 12,083,165 | 11,687,057 | |
Buildings (20 Years) | 10,401,306 | 10,192,769 | |
Construction in Process | 734,772 | 668,330 | |
Property and Equipment, gross | 24,211,045 | 23,504,377 | |
Less: Accumulated Depreciation | (9,274,412) | (7,778,993) | |
Property and equipment, net | $ 14,936,633 | $ 15,725,384 | |
For the nine months ended January 31, 2014 and 2013, depreciation expense totaled $1,346,728 and $1,240,136, respectively. 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_6_Intangible_Assets
Note 6 - Intangible Assets | 9 Months Ended | ||
Jan. 31, 2014 | |||
Notes | ' | ||
Note 6 - Intangible Assets | ' | ||
NOTE 6 - INTANGIBLE ASSETS | |||
On August 8, 2012 the Company entered into an Exchange Agreement with WILD Flavors pursuant to which it purchased its 45% membership interest in Sunwin USA for an aggregate consideration of approximately $1,625,874, which includes the issuance of 7,666,666 shares of our common stock valued at approximately $1,533,333 and a cash payment of $92,541. In connection with the Exchange Agreement, WILD Flavor granted, transferred and assigned to Sunwin USA all of its rights, title and interest, and the trade name Only Sweet, including any trademarks, trademark registrations and applications, service marks, service mark registrations and applications, copyrights, copyright registrations and applications, trade dress, trade names (whether or not registered or by whatever name or designation), owned, applied for, or registered in the name of, the WILD Flavor (the "Only Sweet Name Rights"). Additionally, we entered into a new Distributorship Agreement with WILD Procurement which is an affiliate of WILD Flavors, as discussed in Note 1. The transaction closed on August 20, 2012. The tangible assets of Sunwin USA were reduced from $1,825,804 to $1,625,874 as a result of the application of U.S. GAAP which requires elimination of the difference between the purchase price of the 45% membership interest in Sunwin USA and cost basis of the intangible assets recorded by Sunwin USA. Intangible assets have a useful life of five years and consist of the cost of Only Sweet Name Rights and related technologies as well as the fair value of the Wild Flavors distribution Agreement. For the nine months ended January 31, 2014 and 2013, amortization expense amounted to $243,881 and $135,490, respectively. | |||
Intangible assets consisted of the following: | |||
(Estimated Life) | January 31, | April 30, | |
2014 (Unaudited) | 2013 | ||
Only Sweet name rights and related technologies (5 Years) | $ 587,183 | $ 587,183 | |
Distribution agreement and related distribution channels (5 Years) | 1,038,691 | 1,038,691 | |
Intangible assets, gross | 1,625,874 | 1,625,874 | |
Less: accumulated amortization | (460,665) | (216,784) | |
Intangible Assets, net | $ 1,165,209 | $ 1,409,090 |
Note_7_Land_Use_Rights
Note 7- Land Use Rights | 9 Months Ended | ||
Jan. 31, 2014 | |||
Notes | ' | ||
Note 7- Land Use Rights | ' | ||
NOTE 7 - LAND USE RIGHTS | |||
Land use right consisted of the following: | |||
(Estimated Life) | January 31, | April 30, | |
2014 (Unaudited) | 2013 | ||
Land use right (41-65 Years) | $ 2,605,862 | $ 2,559,545 | |
Less: accumulated amortization | (318,227) | (270,001) | |
Land use right, net | $ 2,287,635 | $ 2,289,544 | |
In conjunction with our acquisition of Qufu Shengwang, we acquired land use rights for properties located in the PRC until March 14, 2054. For the nine month ended January 31, 2014 and 2013, amortization expense amounted to $43,090 and $42,022, respectively. |
Note_8_Loan_Receivable
Note 8 - Loan Receivable | 9 Months Ended |
Jan. 31, 2014 | |
Notes | ' |
Note 8 - Loan Receivable | ' |
NOTE 8 - LOAN RECEIVABLE | |
On December 22, 2010, we loaned $500,000 to CDI China, Inc., a subsidiary of CD International Enterprises, Inc., and an affiliate of CDI our corporate management services provider. The loan bears interest at the rate of 3% per annum and the principal balance and accrued interest were due March 30, 2011. Principal balance of $305,459 was repaid and part of accrued interest of $171,720 was repaid to us by CDI China, Inc. during fiscal 2012 and 2013. As of January 31, 2014, CDI China, Inc. repaid all remaining principal balances and accrued interest. |
Note_9_Related_Party_Transacti
Note 9 - Related Party Transactions | 9 Months Ended | |||
Jan. 31, 2014 | ||||
Notes | ' | |||
Note 9 - Related Party Transactions | ' | |||
NOTE 9 - RELATED PARTY TRANSACTIONS | ||||
Accounts receivable – related party | ||||
At January 31, 2014 and April 30, 2013, we reported $644,448 and $1,239,222 in accounts receivable – related party, respectively. Accounts receivable – related party reflected amounts due from Qufu Shengwang Import and Export Corporation, a Chinese entity owned by our Chairman, Mr. Laiwang Zhang, for merchandise that has been delivered. For the three months ended January 31, 2014 and 2013, related party revenues were $833,657and $171,547, respectively. For the nine months ended January 31, 2014 and 2013, related party revenues were $2,567,648 and $1,576,463, respectively. | ||||
Due to (from) related parties | ||||
From time to time, we received advances from related parties and advanced funds to related parties for working capital purposes. The advances bear no interest and are payable on demand. For the nine months ended January 31, 2014, due to (from) related party activities consisted of the following: | ||||
Pharmaceutical | Qufu | Total | ||
Corporation | Shengwang | |||
Import and Export | ||||
Balance due to related parties, April 30, 2013 | $ 110,018 | «3ZJJUFA0|Tag=l:DueToQufuShengwang|Type=edit|Period=stant|Label=e to Qufu Shengwang|Time 13-04-30»$ 64,386 | $ 174,404 | |
Working capital advances from related parties | 305,509 | 249,220 | 554,729 | |
Repayments | (195,624) | (313,606) | (509,230) | |
Effect of foreign currency exchange | 980 | 0 | 980 | |
Balance due from related parties, January 31, 2014 | $ 220,883 | $ 0 | $ 220,883 | |
Note_10_Prepaid_Expenses_and_O
Note 10 - Prepaid Expenses and Other Current Assets | 9 Months Ended |
Jan. 31, 2014 | |
Notes | ' |
Note 10 - Prepaid Expenses and Other Current Assets | ' |
NOTE 10 - PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Prepaid expenses and other current assets at January 31, 2014 and April 30, 2013 totaled $1,300,365 and $1,189,416, respectively. As of January 31, 2014, prepaid expenses and other current assets includes $929,656 of prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us; $178,274 for employee advances and a $192,435 deposit for renewing land use rights. During the third quarter of fiscal 2013, Qufu Shengwang paid Qufu Public Auction Center $608,920 as deposit for renewing the land use right. The deposit is required for the Center to do the appraisal of the land use right. In the fourth quarter of fiscal 2013 and in the third quarter of fiscal 2014, we received a refund of this deposit of $388,631 and $27,854, respectively. | |
As of April 30, 2013, prepaid expenses and other current assets includes $718,437 of prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us; $159,149 for employee advances; $95,413 of prepaid VAT and a $216,417 in a deposit for renewing land use rights. |
Note_11_Grant_Income
Note 11 - Grant Income | 9 Months Ended |
Jan. 31, 2014 | |
Notes | ' |
Note 11 - Grant Income | ' |
NOTE 11 – GRANT INCOME | |
Deferred grant income at January 31, 2014 and April 30, 2013 totaled $764,614 and $0, respectively. On January 26, 2014, we received grant funding of $1,146,921 (RMB 7,000,000), in exchange for commitments made by us to the local government of Qufu city to provide research and development for the planting of stevia plants, for the development of biological methods to improve lower-grade stevia product to higher grade stevia, and applying biological method to change the taste of stevia to meet market demand. The grant term is for three years, from January 1, 2013 through December 2015. Deferred grant income is being amortized as an increase to other income and amortized over a 3-year period by straight line method from January of 2013. |
Note_12_Loan_Payable
Note 12- Loan Payable | 9 Months Ended |
Jan. 31, 2014 | |
Notes | ' |
Note 12- Loan Payable | ' |
NOTE 12 - LOAN PAYABLE | |
In March 18, 2013, we entered to a loan agreement for approximately $809,822 (RMB 5,000,000) with China Construction Bank. According to the terms of the agreement with China Construction Bank, the loan bears interest at the rate of 7.8% per annum and the principal balance with accrued interest was due on March 17, 2014. We repaid the principal amounts of the loan with all accrued interest in January 2014. At January 31, 2014 and April 30, 2013, loans payable amounted to $0 and $804,829, respectively. | |
Note_13_Stockholders_Equity
Note 13 - Stockholders' Equity | 9 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Notes | ' | |||||||||||||||
Note 13 - Stockholders' Equity | ' | |||||||||||||||
NOTE 13 - STOCKHOLDERS' EQUITY | ||||||||||||||||
Common stock | ||||||||||||||||
At January 31, 2014, we are authorized to issue 200,000,000 shares of common stock. We had 173,882,803 and 173,882,803 shares outstanding at January 31, 2014 and April 30, 2013, respectively. | ||||||||||||||||
Common stock purchase warrants | ||||||||||||||||
A summary of the changes to our outstanding stock warrants during the nine months ended January 31, 2014 is as follows: | ||||||||||||||||
Shares | Weighted | |||||||||||||||
Average | ||||||||||||||||
Exercise Price | ||||||||||||||||
Outstanding at April 30, 2013 | 26,666,666 | $ 0.35 | ||||||||||||||
Granted | 0 | 0 | ||||||||||||||
Exercised | 0 | 0 | ||||||||||||||
Forfeited | 0 | 0 | ||||||||||||||
Warrants exercisable at January 31, 2014 (unaudited) | 26,666,666 | $ 0.35 | ||||||||||||||
Common stock purchase warrants (continued) | ||||||||||||||||
The following information applies to all warrants outstanding at January 31, 2014: | ||||||||||||||||
Warrants Outstanding | Warrants Exercisable | |||||||||||||||
Shares | Weighted | Weighted | Shares | Weighted | ||||||||||||
Exercise Prices | Average | Average | Average | |||||||||||||
Remaining | Exercise Price | Exercise Price | ||||||||||||||
Contractual Life | ||||||||||||||||
$ 0.35 | 26,666,666 | $ 0.35 | 26,666,666 | ] | ||||||||||||
0.01 | ||||||||||||||||
26,666,666 | $ 0.35 | 26,666,666 | $ 0.35 | |||||||||||||
Note_14_Segment_Information
Note 14 - Segment Information | 9 Months Ended | ||||
Jan. 31, 2014 | |||||
Notes | ' | ||||
Note 14 - Segment Information | ' | ||||
NOTE 14 - SEGMENT INFORMATION | |||||
The following information is presented in accordance with ASC Topic 280, “Segment Reporting”, for the three and nine months ended January 31, 2014 and 2013; we operated in three reportable business segments - (1) natural sweetener (stevioside), (2) traditional Chinese medicines and (3) corporate and other. 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 nine months ended January 31, 2014 and 2013 is as follows: | |||||
Three Months Ended January 31, | Nine Months Ended January 31, | ||||
2014 | 2013 | 2014 | 2013 | ||
Revenues: | |||||
Chinese medicine – third party | $ 713,896 | $ 1,111,530 | $ 1,862,718 | $ 2,475,830 | |
Chinese medicine – related party | 0 | 0 | 0 | 0 | |
Total Chinese medicine | 713,896 | 1,111,530 | 1,862,718 | 2,475,830 | |
Stevioside – third party | 1,680,795 | 687,414 | 4,338,845 | 3,615,509 | |
Stevioside – related party | 833,657 | 171,547 | 2,567,648 | 1,576,463 | |
Total Stevioside | 2,514,452 | 858,961 | 6,906,493 | 5,191,972 | |
Total segment and consolidated revenues | $ 3,228,348 | $ 1,970,491 | $ 8,769,211 | $ 7,667,802 | |
Interest income (expense): | |||||
Chinese medicine | $ 92 | $ 1,667 | $ 370 | $ 1,733 | |
Stevioside | (35,573) | (1,030) | (69,101) | 4,719 | |
Corporate and other | 0 | 0 | 0 | 1,718 | |
Total segment and consolidated interest income (expense) | $ (35,481) | $ 637 | $ (68,731) | $ 8,170 | |
Depreciation and amortization: | |||||
Chinese medicine | $ 31,963 | $ 19,811 | $ 77,996 | $ 59,197 | |
Stevioside | 432,169 | 532,909 | 1,311,822 | 1,358,451 | |
Corporate and other | 81,294 | 0 | 243,881 | 0 | |
Total segment and consolidated depreciation and amortization | $ 545,426 | $ 552,720 | $ 1,633,699 | $ 1,417,648 | |
Three Months Ended January 31, | Nine Months Ended January 31, | ||||
2014 | 2013 | 2014 | 2013 | ||
(Loss) income before income taxes: | |||||
Chinese medicine | $ 98,689 | $ 137,625 | $ 47,689 | $ 149,002 | |
Stevioside | (238,493) | (806,192) | (1,705,763) | (1,495,243) | |
Corporate and other | (26,258) | (161,718) ) | (51,198) | (1,718,715 | |
Total consolidated (loss) income before income taxes | $ (166,062) ) | $ (830,285) | $ (1,709,272) | $ (3,064,956) | |
January 31, | April 30, | ||||
2014 | 2013 | ||||
Segment tangible assets: | |||||
Chinese medicine | $ 648,711 | $ 644,073 | |||
Stevioside | 14,287,922 | 15,081,311 | |||
Corporate and other | 0 | 0 | |||
Total consolidated assets | $ 14,936,633 | $ 15,725,384 |
Note_15commitments_and_Conting
Note 15-commitments and Contingencies | 9 Months Ended |
Jan. 31, 2014 | |
Notes | ' |
Note 15-commitments and Contingencies | ' |
NOTE 15 - COMMITMENTS AND CONTINGENCIES | |
We lease office and manufacturing space under leases in Shandong, China that expire through 2014. | |
All facilities related to traditional Chinese medicine segment are leased from Pharmaceutical Corporation, a related party. The term of this lease expired in October, 2012 and provides for annual lease payments of $23,400. We paid the rent for this facility in fiscal 2012 which was included in the management fee we paid to Pharmaceutical Corporation during fiscal 2012. After October 1, 2012 Pharmaceutical Corporation agreed to waive the lease payments. | |
On August 25, 2011, Qufu Natural Green entered into an agreement with Qufu Jinxuan Real Estate Development Co., Ltd., an unaffiliated third party, to purchase thirty apartment units in China for investment. The total area of the apartment complex units is 41,979 square feet, with 6,458 square feet of storage area for a total purchase price of RMB15,120,000 (approximately $2,390,325) (the “Purchase Price”). Under the terms of the agreement, the apartment units were expected to be delivered by December 30, 2012. As of April 30, 2014, we did not receive the deed and other legal documents for the apartment because the local government did not finish inspection; the company does not know when the apartment units can be delivered. We prepaid 30% of the Purchase Price, approximately $717,097, upon signing the agreement on August 25, 2011. An additional 50% of the Purchase Price, or approximately $1,195,162, was paid on December 8, 2011, with the balance, or approximately $478,066 due upon completion of the ownership documents and transfer of the apartment units to us. As January 31, 2014 and April 30, 2013, we classified investment in real estate held for resale as a long-term asset since we do not plan on selling the apartment units within one year. As of January 31, 2014 and April 30, 2013, investment in real estate held for resale amounted to $1,981,879 and $1,947,042, respectively. |
Note_16_Concentrations_and_Cre
Note 16 - Concentrations and Credit Risk | 9 Months Ended | ||||
Jan. 31, 2014 | |||||
Notes | ' | ||||
Note 16 - Concentrations and Credit Risk | ' | ||||
NOTE 16 - CONCENTRATIONS AND CREDIT RISK | |||||
(i) Customer Concentrations | |||||
For the nine months ended January 31, 2014 and 2013, customers accounting for 10% or more of the Company’s revenue were as follows: | |||||
Net Revenues | |||||
For the nine months ended | For the nine months ended | ||||
31-Jan-14 | 31-Jan-13 | ||||
Chinese | Stevioside | Chinese | Stevioside | ||
Medicine | Medicine | ||||
Qufu Shengwang Import and Export Trade Co., Ltd (1) | 0 | 41.2% | 0 | 46.0% | |
Guangdong Tengjun Veterinary Medicine Co., Ltd | 0 | 0 | 11.6% | 0 | |
Total | 0% | 41.2% | 11.6% | 46.0% | |
-1 | Qufu Shengwang Import and Export Trade Co., Ltd is a related party, a Chinese entity managed by our Chairman, Mr. Laiwang Zhang. | ||||
(ii) Vendor Concentrations | |||||
For the nine months ended January 31, 2014 and 2013, suppliers accounting for 10% or more of the Company’s purchase were as follows: | |||||
Net Purchases | |||||
For the nine months ended | For the nine months ended | ||||
31-Jan-14 | 31-Jan-13 | ||||
Chinese | Stevioside | Chinese | Stevioside | ||
Medicine | Medicine | ||||
Shandong Heze Zhongshun Pharmaceutical Co., Ltd | 16.7% | 0 | 38.1% | 0 | |
Qufu Longheng Materials Co., Ltd | 18.7% | 0 | 34.9% | 0 | |
Jiuquan Jiale Biotech Co., Ltd | 0 | 0 | 0 | 20.0% | |
Gansu Fanzhi Biology Technology Co.,Ltd | 17.2% | 0 | 0 | 0 | |
Qingdao Runhao Stevia Technology Co., Ltd | 0 | 0 | 0 | 13.0% | |
Total | 52.6% | 0% | 73.0% | 33.0% | |
(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. At January 31, 2014, we had $825,525 on deposit in the PRC, where there is no equivalent of federal deposit insurance as in the United States. As a result, cash held in PRC financial institutions is not insured. We have not experienced any losses in such accounts through January 31, 2014. | |||||
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_17_Subsequent_Events
Note 17 - Subsequent Events | 9 Months Ended |
Jan. 31, 2014 | |
Notes | ' |
Note 17 - Subsequent Events | ' |
NOTE 17 - SUBSEQUENT EVENTS | |
The Company has evaluated subsequent events from January 31, 2014 through the date whereupon the financial statements were issued and has determined that there are no items to disclose. |
Note_2_Summary_of_Significant_1
Note 2- Summary of Significant Accounting Policies: Use of Estimates (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
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_Significant_2
Note 2- Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
Policies | ' |
Cash and Cash Equivalents | ' |
CASH AND CASH EQUIVALENTS | |
We consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash and equivalents. As of January 31, 2014, we held $825,525 of our cash and cash equivalents with commercial banking institutions in the PRC, and $4,510 with banks in the United States. As of April 30, 2013, we held $516,071 of our cash and cash equivalents with commercial banking institution in PRC, and $1,035 in the United States. In China, there is no equivalent federal deposit insurance as in the United States, so the amounts held in banks in China are not insured. We have not experienced any losses in such bank accounts through January 31, 2014. |
Note_2_Summary_of_Significant_3
Note 2- Summary of Significant Accounting Policies: Accounts Receivable (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
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. At January 31, 2014 and April 30, 2013, the allowance for doubtful accounts was $1,134,102 and $1,000,291, respectively. | |
Note_2_Summary_of_Significant_4
Note 2- Summary of Significant Accounting Policies: Inventories (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
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 market (estimated net realizable value) utilizing the weighted average method. An allowance is established when management determines that certain inventories may not be saleable. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record reserves for the difference between the cost and the market value. These reserves are recorded based on estimates. At January 31, 2014 and April 30, 2013, the Company recorded a reserve for obsolete or slow-moving inventories of $971,178 and $954,108, respectively. |
Note_2_Summary_of_Significant_5
Note 2- Summary of Significant Accounting Policies: Property and Equipment (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
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 five to twenty 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. |
Note_2_Summary_of_Significant_6
Note 2- Summary of Significant Accounting Policies: Long-lived Assets (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
Policies | ' |
Long-lived Assets | ' |
LONG-LIVED ASSETS | |
In accordance with ASC Topic 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, for the three and nine month ended January 31, 2013, we recorded an impairment loss of $209,194 and $209,194, related to impairment of the carrying amounts certain machinery and equipment deemed unusable as, respectively. | |
Note_2_Summary_of_Significant_7
Note 2- Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 9 Months Ended | |
Jan. 31, 2014 | ||
Policies | ' | |
Fair Value of Financial Instruments | ' | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
We follow the FASB ASC 825-10-50-10 for disclosures regarding the fair value of financial instruments and have adopted ASC 820-10-35-37 to measure the fair value of our financial instruments. ASC 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 820-10-35-37 did not have an impact on our financial position or operating results, but did expand certain disclosures. | ||
ASC 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 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_Significant_8
Note 2- Summary of Significant Accounting Policies: Taxes Receivable (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
Policies | ' |
Taxes Receivable | ' |
TAXES PAYABLE | |
We are required to charge for and to collect value added taxes (VAT) on our sales. In addition, we pay value added taxes on our primary purchases, recorded as a receivable. These amounts are presented as net amounts for financial statement purposes. Taxes payable at January 31, 2014 and April 30, 2013 amounted to $13,801 and $0, respectively, consisting primarily of VAT taxes payable. | |
Note_2_Summary_of_Significant_9
Note 2- Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
Policies | ' |
Revenue Recognition | ' |
REVENUE RECOGNITION | |
In general, we record revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. |
Recovered_Sheet1
Note 2- Summary of Significant Accounting Policies: Grant Income (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
Policies | ' |
Grant Income | ' |
GRANT INCOME | |
Grants received from PRC government agencies are recognized as deferred grant income and recognized in the consolidated statements of operations as and when they are incurred for the specific research and development projects or general operation purpose for which these grants are received. |
Recovered_Sheet2
Note 2- Summary of Significant Accounting Policies: Income Taxes (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
Policies | ' |
Income Taxes | ' |
INCOME TAXES | |
We file federal and state income tax returns in the United States for our corporate operations, and file separate foreign tax returns for our Chinese subsidiaries. We account for income taxes under the provisions of ASC 740-10-30, which is an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. | |
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 January 31, 2014, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. | |
Recovered_Sheet3
Note 2- Summary of Significant Accounting Policies: Basic and Diluted Earnings Per Share (Policies) | 9 Months Ended | ||||
Jan. 31, 2014 | |||||
Policies | ' | ||||
Basic and Diluted Earnings Per Share | ' | ||||
BASIC AND DILUTED LOSS PER SHARE | |||||
Pursuant to ASC 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 us, subject to anti-dilution limitations. The following table presents a reconciliation of basic and diluted net income per ordinary share: | |||||
Three Months Ended | Nine Months Ended | ||||
January 31, | January 31, | ||||
2014 | 2013 | 2014 | 2013 | ||
Net Net loss allocable to common shareholders for basic and diluted net loss per common share | $ (166,062) | $ (826,841) | $ (1,709,446) | $ (3,064,956) | |
Weighted average common shares outstanding - basic | 173,882,803 | 173,374,671 | 173,882,803 | 165,946,391 | |
Effect of dilutive securities: | |||||
Warrants | 0 | 0 | 0 | 0 | |
Weighted average common shares outstanding – diluted | 173,882,803 | 173,374,671 | 173,882,803 | 165,946,391 | |
Net loss per common share - basic | $ (0.001) | $ (0.005) | $ (0.009) | $ (0.018) | |
Net loss per common share - diluted | $ (0.001) | $ (0.005) | $ (0.009) | $ (0.018) | |
For the three and nine months ended January 31, 2014 and 2013, the effect of 26,666,666 outstanding common stock purchase warrants were anti-dilutive as we reported a net loss applicable to our common shareholders for both periods., and these outstanding purchase warrants re anti-dilutive as the exercise price of the warrants exceeded the average market price. As a result, basic loss per share was equal to diluted loss per share for the three and nine months ended January 31, 2014 and 2013. |
Recovered_Sheet4
Note 2- Summary of Significant Accounting Policies: Foreign Currency Translation (Policies) | 9 Months Ended | |
Jan. 31, 2014 | ||
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 April 30, 2013 | RMB 6.21 to $1.00 | |
As of January 31, 2014 | RMB 6.10 to $1.00 | |
Nine months ended January 31, 2014 | RMB 6.15 to $1.00 | |
Nine months ended January 31, 2013 | RMB 6.30 to $1.00 | |
Recovered_Sheet5
Note 2- Summary of Significant Accounting Policies: Concentrations of Credit Risk (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
Policies | ' |
Concentrations of Credit Risk | ' |
CONCENTRATIONS OF CREDIT RISK | |
Substantially all of our operations are carried out in the PRC. Accordingly, our business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. Our operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America. Our results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. | |
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 China. At January 31, 2014, we had $825,525 on deposit in China, which is not insured. We have not experienced any losses in such accounts through January 31, 2014. | |
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. |
Recovered_Sheet6
Note 2- Summary of Significant Accounting Policies: Stock Based Compensation (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
Policies | ' |
Stock Based Compensation | ' |
STOCK-BASED COMPENSATION | |
Stock-based compensation is accounted for based on the requirements of the Share-Based Payment topic of ASC Topic 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). “FASB” ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. | |
Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company records compensation expense based on the fair value of the award at the reporting date. The awards to consultants and other third-parties are then revalued, or the total compensation is recalculated, based on the then current fair value, at each subsequent reporting date. |
Recovered_Sheet7
Note 2- Summary of Significant Accounting Policies: Research and Development (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
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 consolidated statements of operations. Research and development costs are incurred on a project specific basis. Research and development costs were $24,343 and $64,541 for the nine months ended January 31, 2014 and 2013, respectively. |
Recovered_Sheet8
Note 2- Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
Policies | ' |
Recent Accounting Pronouncements | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | |
In March 2013, the FASB issued ASU 2013-05 “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 addresses the accounting for the cumulative translation adjustment when a parent either sells part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. For public entities, the ASU is effective prospectively for fiscal years, and interim periods, within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU 2013-05 is not expected to have a material impact on the Company’s 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_4_Inventories_Schedule_of
Note 4 - Inventories: Schedule of Inventory, Current (Tables) | 9 Months Ended | ||
Jan. 31, 2014 | |||
Tables/Schedules | ' | ||
Schedule of Inventory, Current | ' | ||
January 31, 2014 (Unaudited) | 30-Apr-13 | ||
Raw materials | $ 1,149,987 | $ 1,099,001 | |
Work in process | 863,664 | 659,631 | |
Finished goods | 3,786,673 | 4,123,447 | |
Inventories, gross | 5,800,324 | 5,882,079 | |
Less: reserve for obsolete inventory | (971,178) | (954,108) | |
Inventories, net | $ 4,829,146 | $ 4,927,971 |
Note_5_Property_and_Equipment_
Note 5 - Property and Equipment: Property and equipment table (Tables) | 9 Months Ended | ||
Jan. 31, 2014 | |||
Tables/Schedules | ' | ||
Property and equipment table | ' | ||
(Estimated Life) | January 31, 2014 (Unaudited) | 30-Apr-13 | |
Office Equipment (5-7 Years) | $ 55,282 | $ 48,741 | |
Auto and Trucks (10 Years) | 936,520 | 907,480 | |
Manufacturing Equipment (20 Years) | 12,083,165 | 11,687,057 | |
Buildings (20 Years) | 10,401,306 | 10,192,769 | |
Construction in Process | 734,772 | 668,330 | |
Property and Equipment, gross | 24,211,045 | 23,504,377 | |
Less: Accumulated Depreciation | (9,274,412) | (7,778,993) | |
Property and equipment, net | $ 14,936,633 | $ 15,725,384 |
Note_6_Intangible_Assets_Sched
Note 6 - Intangible Assets: Schedule of Intangible Assets and Goodwill (Tables) | 9 Months Ended | ||
Jan. 31, 2014 | |||
Tables/Schedules | ' | ||
Schedule of Intangible Assets and Goodwill | ' | ||
(Estimated Life) | January 31, | April 30, | |
2014 (Unaudited) | 2013 | ||
Only Sweet name rights and related technologies (5 Years) | $ 587,183 | $ 587,183 | |
Distribution agreement and related distribution channels (5 Years) | 1,038,691 | 1,038,691 | |
Intangible assets, gross | 1,625,874 | 1,625,874 | |
Less: accumulated amortization | (460,665) | (216,784) | |
Intangible Assets, net | $ 1,165,209 | $ 1,409,090 |
Note_7_Land_Use_Rights_Land_us
Note 7- Land Use Rights: Land use right table (Tables) | 9 Months Ended | ||
Jan. 31, 2014 | |||
Tables/Schedules | ' | ||
Land use right table | ' | ||
(Estimated Life) | January 31, | April 30, | |
2014 (Unaudited) | 2013 | ||
Land use right (41-65 Years) | $ 2,605,862 | $ 2,559,545 | |
Less: accumulated amortization | (318,227) | (270,001) | |
Land use right, net | $ 2,287,635 | $ 2,289,544 |
Note_13_Stockholders_Equity_Ch
Note 13 - Stockholders' Equity: Changes to Outstanding stock warrants table (Tables) | 9 Months Ended | ||
Jan. 31, 2014 | |||
Tables/Schedules | ' | ||
Changes to Outstanding stock warrants table | ' | ||
Shares | Weighted | ||
Average | |||
Exercise Price | |||
Outstanding at April 30, 2013 | 26,666,666 | $ 0.35 | |
Granted | 0 | 0 | |
Exercised | 0 | 0 | |
Forfeited | 0 | 0 | |
Warrants exercisable at January 31, 2014 (unaudited) | 26,666,666 | $ 0.35 |
Note_13_Stockholders_Equity_Ou
Note 13 - Stockholders' Equity: Outstanding stock warrants table (Tables) | 9 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Tables/Schedules | ' | |||||||||||||||
Outstanding stock warrants table | ' | |||||||||||||||
Warrants Outstanding | Warrants Exercisable | |||||||||||||||
Shares | Weighted | Weighted | Shares | Weighted | ||||||||||||
Exercise Prices | Average | Average | Average | |||||||||||||
Remaining | Exercise Price | Exercise Price | ||||||||||||||
Contractual Life | ||||||||||||||||
$ 0.35 | 26,666,666 | $ 0.35 | 26,666,666 | ] | ||||||||||||
0.01 | ||||||||||||||||
26,666,666 | $ 0.35 | 26,666,666 | $ 0.35 |
Note_14_Segment_Information_Se
Note 14 - Segment Information: Segment Information Table 1 (Tables) | 9 Months Ended | ||||
Jan. 31, 2014 | |||||
Tables/Schedules | ' | ||||
Segment Information Table 1 | ' | ||||
Three Months Ended January 31, | Nine Months Ended January 31, | ||||
2014 | 2013 | 2014 | 2013 | ||
Revenues: | |||||
Chinese medicine – third party | $ 713,896 | $ 1,111,530 | $ 1,862,718 | $ 2,475,830 | |
Chinese medicine – related party | 0 | 0 | 0 | 0 | |
Total Chinese medicine | 713,896 | 1,111,530 | 1,862,718 | 2,475,830 | |
Stevioside – third party | 1,680,795 | 687,414 | 4,338,845 | 3,615,509 | |
Stevioside – related party | 833,657 | 171,547 | 2,567,648 | 1,576,463 | |
Total Stevioside | 2,514,452 | 858,961 | 6,906,493 | 5,191,972 | |
Total segment and consolidated revenues | $ 3,228,348 | $ 1,970,491 | $ 8,769,211 | $ 7,667,802 | |
Interest income (expense): | |||||
Chinese medicine | $ 92 | $ 1,667 | $ 370 | $ 1,733 | |
Stevioside | (35,573) | (1,030) | (69,101) | 4,719 | |
Corporate and other | 0 | 0 | 0 | 1,718 | |
Total segment and consolidated interest income (expense) | $ (35,481) | $ 637 | $ (68,731) | $ 8,170 | |
Depreciation and amortization: | |||||
Chinese medicine | $ 31,963 | $ 19,811 | $ 77,996 | $ 59,197 | |
Stevioside | 432,169 | 532,909 | 1,311,822 | 1,358,451 | |
Corporate and other | 81,294 | 0 | 243,881 | 0 | |
Total segment and consolidated depreciation and amortization | $ 545,426 | $ 552,720 | $ 1,633,699 | $ 1,417,648 |
Note_14_Segment_Information_Se1
Note 14 - Segment Information: Segment Information Table 2 (Tables) | 9 Months Ended | ||||
Jan. 31, 2014 | |||||
Tables/Schedules | ' | ||||
Segment Information Table 2 | ' | ||||
Three Months Ended January 31, | Nine Months Ended January 31, | ||||
2014 | 2013 | 2014 | 2013 | ||
(Loss) income before income taxes: | |||||
Chinese medicine | $ 98,689 | $ 137,625 | $ 47,689 | $ 149,002 | |
Stevioside | (238,493) | (806,192) | (1,705,763) | (1,495,243) | |
Corporate and other | (26,258) | (161,718) ) | (51,198) | (1,718,715 | |
Total consolidated (loss) income before income taxes | $ (166,062) ) | $ (830,285) | $ (1,709,272) | $ (3,064,956) |
Note_14_Segment_Information_Se2
Note 14 - Segment Information: Segment Information Table 3 (Tables) | 9 Months Ended | ||
Jan. 31, 2014 | |||
Tables/Schedules | ' | ||
Segment Information Table 3 | ' | ||
January 31, | April 30, | ||
2014 | 2013 | ||
Segment tangible assets: | |||
Chinese medicine | $ 648,711 | $ 644,073 | |
Stevioside | 14,287,922 | 15,081,311 | |
Corporate and other | 0 | 0 | |
Total consolidated assets | $ 14,936,633 | $ 15,725,384 |
Note_16_Concentrations_and_Cre1
Note 16 - Concentrations and Credit Risk: Customer concentrations table (Tables) | 9 Months Ended | ||||
Jan. 31, 2014 | |||||
Tables/Schedules | ' | ||||
Customer concentrations table | ' | ||||
Net Revenues | |||||
For the nine months ended | For the nine months ended | ||||
31-Jan-14 | 31-Jan-13 | ||||
Chinese | Stevioside | Chinese | Stevioside | ||
Medicine | Medicine | ||||
Qufu Shengwang Import and Export Trade Co., Ltd (1) | 0 | 41.2% | 0 | 46.0% | |
Guangdong Tengjun Veterinary Medicine Co., Ltd | 0 | 0 | 11.6% | 0 | |
Total | 0% | 41.2% | 11.6% | 46.0% | |
Note_16_Concentrations_and_Cre2
Note 16 - Concentrations and Credit Risk: Vendor concentrations table (Tables) | 9 Months Ended | ||||
Jan. 31, 2014 | |||||
Tables/Schedules | ' | ||||
Vendor concentrations table | ' | ||||
Net Purchases | |||||
For the nine months ended | For the nine months ended | ||||
31-Jan-14 | 31-Jan-13 | ||||
Chinese | Stevioside | Chinese | Stevioside | ||
Medicine | Medicine | ||||
Shandong Heze Zhongshun Pharmaceutical Co., Ltd | 16.7% | 0 | 38.1% | 0 | |
Qufu Longheng Materials Co., Ltd | 18.7% | 0 | 34.9% | 0 | |
Jiuquan Jiale Biotech Co., Ltd | 0 | 0 | 0 | 20.0% | |
Gansu Fanzhi Biology Technology Co.,Ltd | 17.2% | 0 | 0 | 0 | |
Qingdao Runhao Stevia Technology Co., Ltd | 0 | 0 | 0 | 13.0% | |
Total | 52.6% | 0% | 73.0% | 33.0% | |
Recovered_Sheet9
Note 2- Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details) (USD $) | Jan. 31, 2014 |
Details | ' |
Cash and cash equivalents held in PRC | $825,525 |
Cash and cash equivalents held in US | $4,510 |
Recovered_Sheet10
Note 2- Summary of Significant Accounting Policies: Accounts Receivable (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Allowance for doubtful accounts | $1,134,102 | $1,000,291 |
Recovered_Sheet11
Note 2- Summary of Significant Accounting Policies: Inventories (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Reserve for obsolete or slow-moving inventories | $971,178 | $954,108 |
Recovered_Sheet12
Note 2- Summary of Significant Accounting Policies: Long-lived Assets (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Impairment Losses | $209,194 | $209,194 |
Recovered_Sheet13
Note 2- Summary of Significant Accounting Policies: Taxes Receivable (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Value Added Tax Receivable | $13,801 | $0 |
Recovered_Sheet14
Note 2- Summary of Significant Accounting Policies: Basic and Diluted Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | |
Details | ' | ' | ' | ' |
Income (Loss) Attributable to Parent | ($166,062) | ($826,841) | ($1,709,446) | ($3,064,956) |
Weighted Average Number of Shares Issued, Basic | 173,882,803 | 173,374,671 | 173,882,803 | 165,946,391 |
Weighted Average Number of Shares Outstanding, Diluted | 173,882,803 | 173,374,671 | 173,882,803 | 165,946,391 |
Earnings Per Share, Basic | ($0.00) | ($0.01) | ($0.01) | ($0.02) |
Earnings Per Share, Diluted | ($0.00) | ($0.01) | ($0.01) | ($0.02) |
Recovered_Sheet15
Note 2- Summary of Significant Accounting Policies: Foreign Currency Translation (Details) | 9 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Apr. 30, 2013 | |
Details | ' | ' | ' |
Foreign Currency Exchange Rate, Translation | 6.1 | ' | 6.21 |
Average exchange rates | 6.15 | 6.3 | ' |
Recovered_Sheet16
Note 2- Summary of Significant Accounting Policies: Concentrations of Credit Risk (Details) (USD $) | Jan. 31, 2014 |
Details | ' |
Cash and cash equivalents held in PRC | $825,525 |
Recovered_Sheet17
Note 2- Summary of Significant Accounting Policies: Research and Development (Details) (USD $) | 9 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Details | ' | ' |
Research and Development Expense | $24,343 | $64,541 |
Note_3_investment_in_Real_Esta1
Note 3 -investment in Real Estate Held For Resale (Details) (USD $) | Apr. 30, 2013 | Dec. 08, 2011 | Aug. 25, 2011 |
Details | ' | ' | ' |
Purchase price for apartment units held for sale | ' | ' | $2,390,325 |
Payment of purchase price for apartment units held for sale | ' | 1,195,162 | 717,097 |
Investment in real estate held for resale | $1,947,042 | ' | ' |
Note_4_Inventories_Schedule_of1
Note 4 - Inventories: Schedule of Inventory, Current (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Inventory, Raw Materials, Gross | $1,149,987 | $1,099,001 |
Inventory, Work in Process, Gross | 863,664 | 659,631 |
Inventory, Finished Goods, Gross | 3,786,673 | 4,123,447 |
Inventory, Gross | 5,800,324 | 5,882,079 |
Reserve for obsolete inventory | -971,178 | -954,108 |
Inventories, net | $4,829,146 | $4,927,971 |
Note_5_Property_and_Equipment_1
Note 5 - Property and Equipment: Property and equipment table (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Furniture and Fixtures, Gross | $55,282 | $48,741 |
Auto and Trucks | 936,520 | 907,480 |
Machinery and Equipment, Gross | 12,083,165 | 11,687,057 |
Buildings and Improvements, Gross | 10,401,306 | 10,192,769 |
Construction in Progress, Gross | 734,772 | 668,330 |
Property, Plant and Equipment, Gross | 24,211,045 | 23,504,377 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -9,274,412 | -7,778,993 |
Property and equipment, net | $14,936,633 | $15,725,384 |
Note_5_Property_and_Equipment_2
Note 5 - Property and Equipment (Details) (USD $) | 9 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Details | ' | ' |
Depreciation expense | $1,346,728 | $1,240,136 |
Note_6_Intangible_Assets_Detai
Note 6 - Intangible Assets (Details) (USD $) | 9 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Aug. 22, 2012 | |
Details | ' | ' | ' |
Share issued for acquisition | ' | ' | 7,666,666 |
Value of Shares issued for Acquisition | ' | ' | $1,533,333 |
Cash paid for acquisition | ' | ' | 92,541 |
Amortization of Acquired Intangible Assets | $243,881 | $135,490 | ' |
Note_6_Intangible_Assets_Sched1
Note 6 - Intangible Assets: Schedule of Intangible Assets and Goodwill (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Only Sweet name rights and related technologies | $587,183 | $587,183 |
Distribution agreement and related distribution channels | 1,038,691 | 1,038,691 |
Finite-Lived Intangible Assets, Gross | 1,625,874 | 1,625,874 |
Accumulated amortization of Intangible Assets | -460,665 | -216,784 |
Intangible Assets, Current | $1,165,209 | $1,409,090 |
Note_7_Land_Use_Rights_Land_us1
Note 7- Land Use Rights: Land use right table (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Land use right, gross | $2,605,862 | $2,559,545 |
Accumulated amortization of Land Use Rights | -318,227 | -270,001 |
LandUseRight | $2,287,635 | $2,289,544 |
Note_8_Loan_Receivable_Details
Note 8 - Loan Receivable (Details) (USD $) | Dec. 22, 2010 |
Details | ' |
Loan Receivable from CDI China | $500,000 |
Note_9_Related_Party_Transacti1
Note 9 - Related Party Transactions (Details) (USD $) | 9 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Apr. 30, 2013 | |
Details | ' | ' | ' |
Accounts receivable - related party | $644,448 | ' | $1,239,222 |
Revenue from Related Parties | 2,567,648 | 1,576,463 | ' |
Due to Pharmaceutical Corporation for Working Capital | 220,883 | ' | 110,018 |
Total Due To Related Parties | 220,883 | ' | 174,404 |
Due from Qufu Shengwang | $0 | ' | ' |
Note_10_Prepaid_Expenses_and_O1
Note 10 - Prepaid Expenses and Other Current Assets (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Prepaid expenses and other current assets | $1,300,365 | $1,189,416 |
Prepayments to suppliers | 929,656 | 718,437 |
Employee advances and others | 178,274 | 159,149 |
Deposits for Land Use Right | 192,435 | 216,417 |
Prepaid VAT | ' | $95,413 |
Note_12_Loan_Payable_Details
Note 12- Loan Payable (Details) (USD $) | Mar. 18, 2013 |
Details | ' |
Short-term Bank Loans and Notes Payable | $809,822 |
Note_13_Stockholders_Equity_De
Note 13 - Stockholders' Equity (Details) | Jan. 31, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Common stock authorized to issue | 200,000,000 | ' |
Shares, Outstanding | 173,882,803 | 173,882,803 |
Note_13_Stockholders_Equity_Ch1
Note 13 - Stockholders' Equity: Changes to Outstanding stock warrants table (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Warrants and Rights Outstanding | $26,666,666 | $26,666,666 |
Stock Warrants Exercise Price | $0.35 | $0.35 |
Note_13_Stockholders_Equity_Ou1
Note 13 - Stockholders' Equity: Outstanding stock warrants table (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Stock Warrants Exercise Price | $0.35 | $0.35 |
Warrants and Rights Outstanding | $26,666,666 | $26,666,666 |
Weighted Average Remaining Contractual Life | 0.01 | ' |
Stock Warrants Weighted Average Exercise Price | $0.35 | ' |
Warrants Exercisable | 26,666,666 | ' |
Note_14_Segment_Information_Se3
Note 14 - Segment Information: Segment Information Table 1 (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | |
Details | ' | ' | ' | ' |
Revenue Chinese medicine - third party | $713,896 | $1,111,530 | $1,862,718 | $2,475,830 |
Revenue Chinese medicine - related party | 0 | 0 | 0 | 0 |
Revenue Chinese medicine | 713,896 | 1,111,530 | 1,862,718 | 2,475,830 |
Revenue Stevioside - third party | 1,680,795 | 687,414 | 4,338,845 | 3,615,509 |
Revenue Stevioside - related party | 833,657 | 171,547 | 2,567,648 | 1,576,463 |
Revenue Stevioside | 2,514,452 | 858,961 | 6,906,493 | 5,191,972 |
Total segment and consolidated revenues | 3,228,348 | 1,970,491 | 8,769,211 | 7,667,802 |
Interest income (expense) Chinese medicine | 92 | 1,667 | 370 | 1,733 |
Interest income (expense) Stevioside | -35,573 | -1,030 | -69,101 | 4,719 |
Interest income (expense) Corporate and other | 0 | 0 | 0 | 1,718 |
Total segment and consolidated interest income (expense) | -35,481 | 637 | -68,731 | 8,170 |
Depreciation and amortization Chinese medicine | 31,963 | 19,811 | 77,996 | 59,197 |
Depreciation and amortization Stevioside | 432,169 | 532,909 | 1,311,822 | 1,358,451 |
Depreciation and amortization Corporate and other | 81,294 | 0 | 243,881 | 0 |
Total segment and consolidated depreciation and amortization | $545,426 | $552,720 | $1,633,699 | $1,417,648 |
Note_14_Segment_Information_Se4
Note 14 - Segment Information: Segment Information Table 2 (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | |
Details | ' | ' | ' | ' |
(Loss) income before income taxes Chinese medicine | $98,689 | $137,625 | $47,689 | $149,002 |
(Loss) income before income taxes Stevioside | -238,493 | -806,192 | -1,705,763 | -1,495,243 |
(Loss) income before income taxes Corporate and other | -26,258 | -161,718 | -51,198 | -1,718,715 |
Total consolidated (loss) income before income taxes | ($166,062) | ($830,285) | ($1,709,272) | ($3,064,956) |
Note_14_Segment_Information_Se5
Note 14 - Segment Information: Segment Information Table 3 (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Segment tangible assets Chinese medicine | $648,711 | $644,073 |
Segment tangible assets Stevioside | 14,287,922 | 15,081,311 |
Segment tangible assets Corporate and other | 0 | 0 |
Total consolidated assets | $14,936,633 | $15,725,384 |
Note_15commitments_and_Conting1
Note 15-commitments and Contingencies (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Dec. 08, 2011 | Aug. 25, 2011 |
Details | ' | ' | ' | ' |
Purchase price for apartment units held for sale | ' | ' | ' | $2,390,325 |
Payment of purchase price for apartment units held for sale | ' | ' | 1,195,162 | 717,097 |
Investment in real estate held for resale | $1,981,879 | $1,947,042 | ' | ' |
Note_16_Concentrations_and_Cre3
Note 16 - Concentrations and Credit Risk: Customer concentrations table (Details) | 9 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Details | ' | ' |
Percent of sales to Qufu Shengwang Import and Export - Stevioside | 41.20% | 46.00% |
Percent of sales to Guangdong Tengjun Veterinary Medicine Co., Ltd - Chinese Medicine | ' | 11.60% |
Total percent of sales to major customers - Chinese Medicine | 0.00% | 11.60% |
Total percent of sales to major customers - Stevioside | 41.20% | 46.00% |
Note_16_Concentrations_and_Cre4
Note 16 - Concentrations and Credit Risk: Vendor concentrations table (Details) | 9 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Details | ' | ' |
Percent of purchase from Shandong Heze Zhongshun Pharmaceutical - Chinese Medicine | 16.70% | 38.10% |
Percent of purchase from Qufu Longheng Materials - Chinese Medicine | 18.70% | 34.90% |
Percent of purchase from Jiuquan Jiale Biotech Co., Ltd - Stevioside | ' | 20.00% |
Percent of purchase from Gansu Fanzhi Biology Techonology Co.,Ltd - Chinese Medicine | 17.20% | ' |
Percent of purchase from Qingdao Runhao Stevia Technology Co., Ltd - Stevioside | ' | 13.00% |
Total percent of purchase from major suppliers - Chinese Medicine | 52.60% | 73.00% |
Total percent of purchase from major suppliers - Stevioside | 0.00% | 33.00% |
Note_16_Concentrations_and_Cre5
Note 16 - Concentrations and Credit Risk (Details) (USD $) | Jan. 31, 2014 |
Details | ' |
Deposits in PRC | $825,525 |