Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended | ||
Jul. 31, 2014 | Sep. 12, 2014 | Oct. 31, 2013 | |
Document and Entity Information: | ' | ' | ' |
Entity Registrant Name | 'SUNWIN STEVIA INTERNATIONAL, INC. | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 31-Jul-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 | ' | ' | $15,215,567 |
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 | '2015 | ' | ' |
Document Fiscal Period Focus | 'Q1 | ' | ' |
SUNWIN_STEVIA_INTERNATIONAL_IN
SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (USD $) | Jul. 31, 2014 | Apr. 30, 2014 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $1,287,270 | $1,195,563 |
Accounts receivable, net of allowance for doubtful accounts of $1,142,604 and $1,143,550, respectively | 1,084,881 | 2,012,036 |
Accounts receivable - related party | 880,319 | 953,400 |
Inventories, net | 3,480,243 | 3,253,365 |
Prepaid expenses and other current assets | 977,776 | 1,192,649 |
Total Current Assets | 7,710,489 | 8,607,013 |
Investment in real estate held for resale | 1,962,267 | 1,963,891 |
Property and equipment, net | 14,786,373 | 14,938,358 |
Intangible assets, net | 1,002,621 | 1,083,915 |
Land use rights, net | 2,236,066 | 2,252,275 |
Total Assets | 27,697,816 | 28,845,452 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable and accrued expenses | 2,990,442 | 3,545,377 |
Loan payable | 811,122 | 811,794 |
Deferred grant income | 536,242 | 631,395 |
Due to related party | 381,462 | 355,181 |
Total Current Liabilities | 4,719,268 | 5,343,747 |
Commitments | 0 | 0 |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 200,000,000 shares authorized; 173,882,803 and 173,882,803 shares issued and outstanding as of July 31, 2014 and April 30, 2013, respectively | 173,883 | 173,883 |
Additional paid-in capital | 33,479,529 | 33,479,529 |
Accumulated deficit | -16,399,732 | -15,895,527 |
Accumulated other comprehensive income | 5,724,868 | 5,743,820 |
Total Stockholders' Equity | 22,978,548 | 23,501,705 |
Total Liabilities and Stockholders' Equity | $27,697,816 | $28,845,452 |
SUNWIN_STEVIA_INTERNATIONAL_IN1
SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (USD $) | 3 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Revenues: | ' | ' |
Revenues | $2,950,901 | $1,573,595 |
Revenues - related party | 885,608 | 1,143,311 |
Total revenues | 3,836,509 | 2,716,906 |
Cost of revenues | 3,168,510 | 2,266,692 |
Gross profit | 667,999 | 450,214 |
Operating expenses: | ' | ' |
Selling expenses | 327,135 | 283,178 |
General and administrative expenses | 831,862 | 789,562 |
Research and development expenses | 725 | 57,268 |
Total operating expenses | 1,159,722 | 1,130,008 |
Loss from operations | -491,723 | -679,794 |
Other income (expense): | ' | ' |
Other income (expenses) | -16,655 | 109,808 |
Grant income | 94,660 | 0 |
Interest income | 563 | 564 |
Interest expense - related party | -47,739 | 0 |
Interest expense | -15,778 | -15,952 |
Total other income(expense) | 15,051 | 94,420 |
Loss before income taxes | -476,672 | -585,374 |
Income taxes expense | 27,532 | 0 |
Net loss | -504,204 | -585,374 |
Comprehensive loss | ' | ' |
Net loss | -504,204 | -585,374 |
Foreign currency translation adjustment | -18,952 | 156,497 |
Total Comprehensive loss | ($523,156) | ($428,877) |
Net Loss per share-basic and diluted | ($0.00) | ($0.00) |
Weighted average common shares outstanding - basic and diluted | 173,882,803 | 173,882,803 |
SUNWIN_STEVIA_INTERNATIONAL_IN2
SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($504,204) | ($585,374) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation expense | 610,792 | 450,085 |
Amortization of intangible assets | 81,294 | 81,294 |
Amortization of land use right | 14,326 | 14,286 |
Realized comprehensive loss | 0 | 1,535 |
Allowance for doubtful accounts | 0 | 149,560 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 972,007 | -137 |
Accounts receivable - related party | 72,314 | -86,480 |
Inventories | -229,641 | -29,965 |
Prepaid expenses and other current assets | 167,718 | -232,342 |
Accounts payable and accrued expenses | -549,785 | 245,289 |
Deferred grant income | -94,660 | 0 |
Taxes payable | -2,397 | 55,374 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 537,764 | 63,125 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | -471,605 | -16,495 |
Proceeds from loan receivable | 0 | 35,000 |
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES | -471,605 | 18,505 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Advances due to related party | 91,377 | 0 |
Repayment of related party advances | -64,813 | -175,327 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 26,564 | -175,327 |
EFFECT OF EXCHANGE RATE ON CASH | -1,016 | 412 |
NET INCREASE (DECREASE) IN CASH | 91,707 | -93,285 |
Cash | 1,195,563 | 517,106 |
Cash | 1,287,270 | 423,821 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ' | ' |
Cash paid for income taxes | 2,696 | 0 |
Cash paid for interest | $63,517 | $0 |
Note_1_Organization_and_Operat
Note 1 - Organization and Operations | 3 Months Ended |
Jul. 31, 2014 | |
Note 1 - Organization and Operations: | ' |
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”, "ur”, 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 Natural Green 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 started production in last quarter of 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 99. | |
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 management 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 | 3 Months Ended | |||
Jul. 31, 2014 | ||||
Note 2 - Summary of Significant Accounting Policies: | ' | |||
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, 2014 included in our Form 10-K as filed with the SEC. The results of operations and cash flows for the three months ended July 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 three months of fiscal year 2015, the Company had a net loss of $504,204 and net cash provided by operations of $311,643. At July 31, 2014, we had working capital of $3.2 million, including cash of $1.3 million. 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. However, actual results could differ from our anticipation. | ||||
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 July 31, 2014, we held $1,287,005 of our cash and cash equivalents with commercial banking institutions in the PRC, and $265 with banks in the United States. As of April 30, 2014, we held $1,194,668 of our cash and cash equivalents with commercial banking institution in PRC, and $895 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 July 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 July 31, 2014 and April 30, 2014, the allowance for doubtful accounts was $1,142,604 and $1,143,550, 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 July 31, 2014 and April 30, 2014, the Company recorded a reserve for obsolete or slow-moving inventories of $635,118 and $635,644, 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. | ||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||
We follow the FASB ASC Section 825-10-50-10 for disclosures regarding the fair value of financial instruments and have adopted ASC Section 820-10-35-37 to measure the fair value of our financial instruments. ASC Section 820-10-35-37 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. The adoption of ASC Section 820-10-35-37 did not have an impact on our financial position or operating results, but did expand certain disclosures. | ||||
ASC Section 820-10-35-37 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC Section 820-10-35-37 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: | ||||
Level 1: | Observable inputs such as quoted market prices in active markets for identical assets or liabilities | |||
Level 2: | Observable market-based inputs or unobservable inputs that are corroborated by market data | |||
Level 3: | Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. | |||
The carrying amounts of our financial assets and liabilities, such as cash, accounts receivable, notes receivable, prepayments and other current assets, accounts payable, taxes payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. | ||||
TAXES PAYABLE | ||||
We are required to charge for and to collect value added taxes (VAT) on our sales. We record VAT charged to our customers as VAT payable. In addition, we pay value added taxes on our primary purchases. We record VAT charged by our vendors as VAT receivable. These amounts are presented as net amounts for financial statement purposes. Taxes payable at July 31, 2014 and April 30, 2014 amounted to $57,598 and $69,298, respectively, consisting primarily of VAT taxes. | ||||
REVENUE RECOGNITION | ||||
In general, we recognize 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 and comprehensive loss as and when they are earned for the specific research and development projects for which these grants are received. | ||||
INCOME TAXES | ||||
We account for income taxes using the liability method prescribed by ASC Topic 740, “Income Taxes.” Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. | ||||
We file federal and state income tax returns in the United States for our corporate operations pursuant to the U.S. Internal Revenue Code of 1986, as amended, and file separate foreign tax returns for our Chinese subsidiaries pursuant to the China’s Unified Corporate Income Tax Law. | ||||
We apply the provisions of ASC 740-10-50, “Accounting for Uncertainty in Income Taxes”, which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our consolidated financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of July 31, 2014, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. | ||||
BASIC AND DILUTED EARNINGS PER SHARE | ||||
Pursuant to ASC Section 260-10-45, basic income (loss) per common share is computed by dividing income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted income (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 common share: | ||||
For Three Months Ended July 31, | ||||
2014 | 2013 | |||
Numerator: | ||||
Net loss attributable to Sunwin Stevia International, Inc. | $ (504,204) | $ (585,374) | ||
Numerator for basic EPS, loss applicable to common stock holders | $ (504,204) | $ (585,374) | ||
Denominator: | ||||
Denominator for basic earnings per share - weighted average number of common shares outstanding | 173,882,803 | 173,882,803 | ||
Stock awards, options, and warrants | - | - | ||
Denominator for diluted earnings per share - adjusted weighted average outstanding average number of common shares outstanding | 173,882,803 | 173,882,803 | ||
Basic and diluted loss per common share: | ||||
Loss per share - basic | $ (0.003) | $ (0.003) | ||
Loss per share - diluted | $ (0.003) | $ (0.003) | ||
On July 31, 2014 and 2013, the effect of the 26,666,666 outstanding common stock purchase warrants was anti-dilutive as we reported a net loss attributable to our common shareholders for both periods. Additionally, outstanding purchase warrants which could result in the issuance of 26,666,666 additional common shares were anti-dilutive as the exercise price of the warrants exceeded the average market price. As of July 31, 2014, 26,666,666 outstanding common stock purchase warrants were not exercised and expired. | ||||
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, 2014 | RMB 6.16 to $1.00 | |||
As of July 31, 2014 | RMB 6.16 to $1.00 | |||
Three months ended July 31, 2014 | RMB 6.16 to $1.00 | |||
Three months ended July 31, 2013 | RMB 6.18 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 July 31, 2014, we had $1,287,005 on deposit in China, which is not insured. We have not experienced any losses in such accounts through July 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 statements of operations. Research and development costs are incurred on a project specific basis. Research and development cost were $725 and $57,268 for the three months ended July 31, 2014 and 2013, respectively. | ||||
SHIPPING COSTS | ||||
Shipping costs are included in selling expenses and totaled $82,777 and $71,697 for the three months ended July 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 2013-05 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 have no 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 | 3 Months Ended |
Jul. 31, 2014 | |
Note 3 - Investment in Real Estate Held For Resale: | ' |
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 July 31, 2014, we did not receive the deed and other legal documents for the apartment units; the apartment units are expected to be delivered before the end of calendar 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 July 31, 2014 and April 30, 2014, we classified these payments made toward the Purchase Price as 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 July 31, 2014 and April 30, 2014, investment in real estate held for resale amounted to $1,962,267 and $1,963,891, respectively. |
Note_4_Inventories
Note 4 - Inventories | 3 Months Ended | ||
Jul. 31, 2014 | |||
Note 4 - Inventories: | ' | ||
Note 4 - Inventories | ' | ||
NOTE 4 - INVENTORIES | |||
At July 31, 2014 and April 30, 2014, inventories consisted of the following: | |||
July 31, 2014 (unaudited) | 30-Apr-14 | ||
Raw materials | $ 1,469,348 | 1,548,181 | |
Work in process | 199,141 | 44,898 | |
Finished goods | 2,446,872 | 2,295,930 | |
Inventories, gross | 4,115,361 | 3,889,009 | |
Less: reserve for obsolete inventory | (635,118) | (635,644) | |
Inventories, net | $ 3,480,243 | 3,253,365 | |
Note_5_Property_and_Equipment
Note 5 - Property and Equipment | 3 Months Ended | ||
Jul. 31, 2014 | |||
Note 5 - Property and Equipment: | ' | ||
Note 5 - Property and Equipment | ' | ||
NOTE 5 - PROPERTY AND EQUIPMENT | |||
At July 31, 2014 and April 30, 2014, property and equipment consisted of the following: | |||
(Estimated Life) | July 31, 2014 (unaudited) | 30-Apr-14 | |
Office Equipment (5-7 Years) | $ 58,216 | $ 58,266 | |
Auto and Trucks (10 Years) | 928,262 | 929,042 | |
Manufacturing Equipment (20 Years) | 12,011,777 | 11,987,404 | |
Buildings (20 Years) | 10,294,687 | 10,303,529 | |
Construction in Process | 1,720,154 | 1,284,199 | |
Gross Property and Equipment | 25,013,096 | 24,562,440 | |
Less: Accumulated Depreciation | (10,226,723) | (9,624,082) | |
Property and equipment, net | $ 14,786,373 | $ 14,938,358 | |
For the three months ended July 31, 2014 and 2013, depreciation expense totaled $610,792 and $450,085, respectively, of which $131,512 and $139,145 was included in cost of revenues, respectively, of which $479,280 and $310,940 was included in general and administrative expenses, 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. |
Intangible_Assets_Disclosure
Intangible Assets Disclosure | 3 Months Ended | ||
Jul. 31, 2014 | |||
Intangible Assets Disclosure: | ' | ||
Intangible Assets Disclosure | ' | ||
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 address, 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 three months ended July 31, 2014 and 2013, amortization expense amounted to $81,294 and $81,294, respectively. | |||
Intangible assets consisted of the following: | |||
(Estimated Life) | July 31, 2014 (unaudited) | 30-Apr-14 | |
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 | (623,253) | (541,959) | |
Intangible Assets, net | $ 1,002,621 | $ 1,083,915 |
Note_7_Land_Use_Rights
Note 7 - Land Use Rights | 3 Months Ended | ||
Jul. 31, 2014 | |||
Note 7 - Land Use Rights: | ' | ||
Note 7 - Land Use Rights | ' | ||
NOTE 7 - LAND USE RIGHTS | |||
Land use right consisted of the following: | |||
(Estimated Life) | July 31, 2014 (unaudited) | 30-Apr-14 | |
Land use right, gross (41-65 Years) | $ 2,579,787 | $ 2,581,947 | |
Less: accumulated amortization | (343,721) | (329,672) | |
Land use right, net | $ 2,236,066 | $ 2,252,275 | |
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 three month periods ended July 31, 2014 and 2013, amortization expense amounted to $14,326 and $14,286, respectively. |
Note_8_Related_Party_Transacti
Note 8 - Related Party Transactions | 3 Months Ended | |||
Jul. 31, 2014 | ||||
Note 8 - Related Party Transactions: | ' | |||
Note 8 - Related Party Transactions | ' | |||
NOTE 8 - RELATED PARTY TRANSACTIONS | ||||
Accounts receivable – related party and revenue – related party | ||||
On July 31, 2014 and April 30, 2014, we reported $880,319 and $953,400 in accounts receivable – related party, respectively, related to sales of products to Qufu Shengwang Import and Export Corporation, a Chinese entity owned by our Chairman, Mr. Laiwang Zhang. For the three months ended July 31, 2014 and 2013, we had revenue – related party of $885,608 and $1,143,311, respectively, from Qufu Shengwang Import and Export Corporation, | ||||
Due to (from) related parties | ||||
From time to time, we received advances from related parties and advance funds to related parties for working capital purposes. During the three months ended July 31, 2014, we paid interest of $47,739 to Pharmaceutical Corporation related to the reimbursement of interest expense incurred by Pharmaceutical Corporation in order for Pharmaceutical Corporation to advance working capital to the Company. The advances and any accrued interest are due on demand and non-interest bearing. On July 31, 2014 and April 30, 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, 2014 | $ 248,873 | $ 106,308 | $ 355,181 | |
Working capital advances from related parties | 0 | 91,377 | 91,377 | |
Repayments | (64,813) | 0 | (64,813) | |
Effect of foreign currency exchange | (283) | 0 | (283) | |
Balance due to related parties, July 31, 2014 | $ 183,777 | $ 197,685 | $ 381,462 | |
Note_9_Prepaid_Expenses_and_Ot
Note 9 - Prepaid Expenses and Other Current Assets | 3 Months Ended |
Jul. 31, 2014 | |
Note 9 - Prepaid Expenses and Other Current Assets: | ' |
Note 9 - Prepaid Expenses and Other Current Assets | ' |
NOTE 9 - PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Prepaid expenses and other current assets at July 31, 2014 and April 30, 2014 totaled $977,776 and $1,192,649, respectively. As of July 31, 2014, prepaid expenses and other current assets includes $486,812 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us; $230,968 for employee advances; $77,576 prepaid VAT and a $182,420 deposit for renewing land use rights. During the third quarter of fiscal 2013, Qufu Shengwang paid Qufu Public Auction Center $603,393 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 2014 and 2013, we received the refund of this deposit of $46,044 and $375,078, respectively. | |
As of April 30, 2014, prepaid expenses and other current assets includes $823,768 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us; $186,610 for employee advances; and a $182,271 deposit for renewing land use rights. During the third quarter of fiscal 2013, Qufu Shengwang paid Qufu Public Auction Center $603,393 as deposit for renewing the land use right. The deposit is required for the Center to appraise the land use right. As of April 30, 2014, we totally received the refund of this deposit of $421,122. |
Note_10_Grant_Income
Note 10 - Grant Income | 3 Months Ended |
Jul. 31, 2014 | |
Note 10 - Grant Income: | ' |
Note 10 - Grant Income | ' |
NOTE 10 – GRANT INCOME | |
On January 26, 2014, we received grant funding of $1,146,921 (RMB7,000,000), 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 approved by local government totaled RMB10,000,000 of which we received RMB 7,000,000 and the grant term is for three years, from January 1, 2013 through December 31, 2015. The Company will pay 10% of this total grant to Shandong Chinese Medicine University for the collaboration with Professor Jingzhen Tian on the related research and development project and a research report is to be submitted to the local government by the end of December 2015 in order to pass inspection and examination for the completion of this commitment. Deferred grant income is being amortized as an increase to other income over a 3-year period using the straight line method over the grant term. At July 31, 2014 and April 30, 2014, the balance of deferred grant income is $536,242 and $631,395, respectively. For the three months ended July 31, 2014 and 2013, grant income amounted to $94,660 and $0, respectively. |
Note_11_Loan_Payable
Note 11 - Loan Payable | 3 Months Ended |
Jul. 31, 2014 | |
Note 11 - Loan Payable: | ' |
Note 11 - Loan Payable | ' |
NOTE 11 - LOAN PAYABLE | |
On April 30, 2014, we borrowed a short-term loan of $811,794 (RMB5,000,000) from China Construction Bank. According to the terms of the agreement with China Construction Bank, the loan bears interest at the rate of 8.4% per annum, is unsecured, and the principal balance with accrued interest is due on April 29, 2015. |
Note_12_Stockholders_Equity
Note 12 - Stockholders' Equity | 3 Months Ended |
Jul. 31, 2014 | |
Note 12 - Stockholders' Equity: | ' |
Note 12 - Stockholders' Equity | ' |
NOTE 12 - STOCKHOLDERS' EQUITY | |
Common stock | |
At July 31, 2014 and April 30, 2014, we are authorized to issue 200,000,000 shares of common stock. We had 173,882,803 and 173,882,803 shares issued and outstanding at July 31, 2014 and April 30, 2014, respectively. |
Note_13_Segment_Information
Note 13 - Segment Information | 3 Months Ended | ||
Jul. 31, 2014 | |||
Note 13 - Segment Information: | ' | ||
Note 13 - Segment Information | ' | ||
NOTE 13 - SEGMENT INFORMATION | |||
The following information is presented in accordance with ASC Topic 280, “Segment Reporting”, for the three months ended July 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 months ended July 31, 2014 and 2013 is as follows: | |||
Three Months Ended July 31, | |||
2014 | 2013 | ||
Revenues: | |||
Chinese medicine – third party | $ 522,194 | $ 571,560 | |
Chinese medicine – related party | 0 | 0 | |
Total Chinese medicine | 522,194 | $ 571,560 | |
Stevioside – third party | 2,428,707 | 1,002,035 | |
Stevioside – related party | 885,608 | 1,143,311 | |
Total Stevioside | 3,314,315 | 2,145,346 | |
Total segment and consolidated revenues | $ 3,836,509 | $ 2,716,906 | |
Interest income (expense): | |||
Chinese medicine | $ 139 | $ 144 | |
Stevioside | (63,093) | (15,532) | |
Corporate and other | 0 | 0 | |
Total segment and consolidated interest expense | $ (62,954) | $ (15,388) | |
Depreciation and amortization: | |||
Chinese medicine | $ 20,608 | $ 0 | |
Stevioside | 685,804 | 545,665 | |
Corporate and other | 0 | 0 | |
Total segment and consolidated depreciation and amortization | $ 706,412 | $ 545,665 | |
Income (loss) before income taxes: | |||
Chinese medicine | $ 24,115 | $ (8,858) | |
Stevioside | (459,138) | (623,506) | |
Corporate and other | (69,181) | 46,990 | |
Total consolidated loss before income taxes | $ (504,204 | $ (585,374 | |
31-Jul-14 | 30-Apr-14 | ||
Segment tangible assets: | |||
Chinese medicine | $ 637,914 | $ 605,918 | |
Stevioside | 14,148,459 | 14,332,440 | |
Corporate and other | 0 | 0 | |
Total consolidated assets | $ 14,786,373 | $ 14,938,358 | |
Note_14_Commitments_and_Contin
Note 14 - Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2014 | |
Note 14 - Commitments and Contingencies: | ' |
Note 14 - Commitments and Contingencies | ' |
NOTE 14 - COMMITMENTS AND CONTINGENCIES | |
We did not incur rent expense in both first quarter fiscal 2015 and fiscal 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. 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 July 31, 2014, we did not receive the deed and other legal documents for the apartment units; the apartment units are expected to be delivered before the end of the calendar 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, or approximately $478,066 due upon completion of the ownership documents and transfer of the apartment units to us. As of July 31, 2014 and April 30, 2014, 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 July 31, 2014 and April 30, 2014, investment in real estate held for resale amounted to $1,962,267 and $1,963,891, respectively. |
Note_15_Concentrations_and_Cre
Note 15 - Concentrations and Credit Risk | 3 Months Ended | ||||
Jul. 31, 2014 | |||||
Note 15 - Concentrations and Credit Risk: | ' | ||||
Note 15 - Concentrations and Credit Risk | ' | ||||
NOTE 15 - CONCENTRATIONS AND CREDIT RISK | |||||
(i) Customer Concentrations | |||||
The top customer concentrations, which the sales income is over 10% of total sales for the three months ended July 31, 2014 and 2013 are as follows: | |||||
Net Sales | |||||
For the three months ended July 31, 2014 | For the three months ended July 31, 2013 | ||||
Chinese Medicine | Stevioside | Chinese Medicine | Stevioside | ||
Qufu Shengwang Import and Export Trade Co., Ltd | 27.4% | 0 | 53.3% | ||
Qingdao Runde Biological Technology Co.Ltd | 0 | 26.6% | 0 | 0 | |
Zhonghua (Qingdao) Industrial Co., Ltd. | 0 | 15.4% | 0 | 0 | |
Guangdong Tengjun Veterinary Medicine Co., Ltd | 10.8% | 0 | 11.7% | 0 | |
Total | 10.8% | 69.4% | 11.7% | 53.3% | |
(ii) Vendor Concentrations | |||||
The top vendor concentrations, which the purchase from those vendor is over 10% of total cost of goods sold, for the three months ended July 31, 2014 and 2013 are as follows: | |||||
Net Purchases | |||||
For the three months ended July 31, 2014 | For the three months ended July 31, 2013 | ||||
Chinese Medicine | Stevioside | Chinese Medicine | Stevioside | ||
Shandong Heze Zhongshun Pharmaceutical Co., Ltd | 0 | 0 | 17.2% | 0 | |
Bozhou Weitao Pharmaceutical Co., Ltd | 0 | 0 | 15.5% | 0 | |
Qufu Longheng Materials Co., Ltd | 0 | 0 | 21.6% | 0 | |
Shandong Xiwang Sugar Industry Co., Ltd | 14.3% | 0 | 0 | 0 | |
Gansu Fanzhi Biology Techonology Co.,Ltd | 11.3% | 0 | 23.1% | 0 | |
Qufu Electricity Corp. | 13.6% | 0 | 0 | 0 | |
Jiangyin Suxin Dry Equipment Co., Ltd | 13.6% | 0 | 0 | 0 | |
Gansu DunHuang Agriculture Products Co.,Ltd | 0 | 0 | 0 | 15.1% | |
Jiuquan Deyizhi Ecological Argriculture Co.,Ltd | 0 | 0 | 0 | 12.9% | |
Gansu Puhua Stevia Develop Co., Ltd | 0 | 21.3% | 0 | 0 | |
Shandong Jinhuaxia Environment Engineering Co. Ltd. | 0 | 0 | 0 | 26.2% | |
Mingguang Xingshi Stevia Corp. | 0 | 31.8% | 0 | 0 | |
Ganzhou Julong High Tech Co., Ltd | 0 | 18.3% | 0 | 0 | |
Total | 52.8% | 71.4% | 77.4% | 54.2% | |
(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 July 31, 2014, we had $1,287,005 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 July 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_16_Subsequent_Events
Note 16 - Subsequent Events | 3 Months Ended |
Jul. 31, 2014 | |
Note 16 - Subsequent Events: | ' |
Note 16 - Subsequent Events | ' |
NOTE 16 - SUBSEQUENT EVENTS | |
The Company has evaluated subsequent events from July 31, 2014 through the filing date of this report 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) | 3 Months Ended |
Jul. 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) | 3 Months Ended |
Jul. 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 July 31, 2014, we held $1,287,005 of our cash and cash equivalents with commercial banking institutions in the PRC, and $265 with banks in the United States. As of April 30, 2014, we held $1,194,668 of our cash and cash equivalents with commercial banking institution in PRC, and $895 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 July 31, 2014. |
Note_2_Summary_of_Significant_3
Note 2 - Summary of Significant Accounting Policies: Accounts Receivable (Policies) | 3 Months Ended |
Jul. 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 July 31, 2014 and April 30, 2014, the allowance for doubtful accounts was $1,142,604 and $1,143,550, respectively. |
Note_2_Summary_of_Significant_4
Note 2 - Summary of Significant Accounting Policies: Inventories (Policies) | 3 Months Ended |
Jul. 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 July 31, 2014 and April 30, 2014, the Company recorded a reserve for obsolete or slow-moving inventories of $635,118 and $635,644, respectively. |
Note_2_Summary_of_Significant_5
Note 2 - Summary of Significant Accounting Policies: Property and Equipment (Policies) | 3 Months Ended |
Jul. 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: Fair Value of Financial Instruments (Policies) | 3 Months Ended | |
Jul. 31, 2014 | ||
Policies | ' | |
Fair Value of Financial Instruments | ' | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
We follow the FASB ASC Section 825-10-50-10 for disclosures regarding the fair value of financial instruments and have adopted ASC Section 820-10-35-37 to measure the fair value of our financial instruments. ASC Section 820-10-35-37 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. The adoption of ASC Section 820-10-35-37 did not have an impact on our financial position or operating results, but did expand certain disclosures. | ||
ASC Section 820-10-35-37 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC Section 820-10-35-37 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: | ||
Level 1: | Observable inputs such as quoted market prices in active markets for identical assets or liabilities | |
Level 2: | Observable market-based inputs or unobservable inputs that are corroborated by market data | |
Level 3: | Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. | |
The carrying amounts of our financial assets and liabilities, such as cash, accounts receivable, notes receivable, prepayments and other current assets, accounts payable, taxes payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. |
Note_2_Summary_of_Significant_7
Note 2 - Summary of Significant Accounting Policies: Taxes Payable (Policies) | 3 Months Ended |
Jul. 31, 2014 | |
Policies | ' |
Taxes Payable | ' |
TAXES PAYABLE | |
We are required to charge for and to collect value added taxes (VAT) on our sales. We record VAT charged to our customers as VAT payable. In addition, we pay value added taxes on our primary purchases. We record VAT charged by our vendors as VAT receivable. These amounts are presented as net amounts for financial statement purposes. Taxes payable at July 31, 2014 and April 30, 2014 amounted to $57,598 and $69,298, respectively, consisting primarily of VAT taxes. |
Note_2_Summary_of_Significant_8
Note 2 - Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 3 Months Ended |
Jul. 31, 2014 | |
Policies | ' |
Revenue Recognition | ' |
REVENUE RECOGNITION | |
In general, we recognize 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. |
Note_2_Summary_of_Significant_9
Note 2 - Summary of Significant Accounting Policies: Grant Income (Policies) | 3 Months Ended |
Jul. 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 and comprehensive loss as and when they are earned for the specific research and development projects for which these grants are received. |
Recovered_Sheet1
Note 2 - Summary of Significant Accounting Policies: Income Taxes (Policies) | 3 Months Ended |
Jul. 31, 2014 | |
Policies | ' |
Income Taxes | ' |
INCOME TAXES | |
We account for income taxes using the liability method prescribed by ASC Topic 740, “Income Taxes.” Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. | |
We file federal and state income tax returns in the United States for our corporate operations pursuant to the U.S. Internal Revenue Code of 1986, as amended, and file separate foreign tax returns for our Chinese subsidiaries pursuant to the China’s Unified Corporate Income Tax Law. | |
We apply the provisions of ASC 740-10-50, “Accounting for Uncertainty in Income Taxes”, which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our consolidated financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of July 31, 2014, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. |
Recovered_Sheet2
Note 2 - Summary of Significant Accounting Policies: Basic and Diluted Earnings Per Share (Policies) | 3 Months Ended | |||
Jul. 31, 2014 | ||||
Policies | ' | |||
Basic and Diluted Earnings Per Share | ' | |||
BASIC AND DILUTED EARNINGS PER SHARE | ||||
Pursuant to ASC Section 260-10-45, basic income (loss) per common share is computed by dividing income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted income (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 common share: | ||||
For Three Months Ended July 31, | ||||
2014 | 2013 | |||
Numerator: | ||||
Net loss attributable to Sunwin Stevia International, Inc. | $ (504,204) | $ (585,374) | ||
Numerator for basic EPS, loss applicable to common stock holders | $ (504,204) | $ (585,374) | ||
Denominator: | ||||
Denominator for basic earnings per share - weighted average number of common shares outstanding | 173,882,803 | 173,882,803 | ||
Stock awards, options, and warrants | - | - | ||
Denominator for diluted earnings per share - adjusted weighted average outstanding average number of common shares outstanding | 173,882,803 | 173,882,803 | ||
Basic and diluted loss per common share: | ||||
Loss per share - basic | $ (0.003) | $ (0.003) | ||
Loss per share - diluted | $ (0.003) | $ (0.003) | ||
On July 31, 2014 and 2013, the effect of the 26,666,666 outstanding common stock purchase warrants was anti-dilutive as we reported a net loss attributable to our common shareholders for both periods. Additionally, outstanding purchase warrants which could result in the issuance of 26,666,666 additional common shares were anti-dilutive as the exercise price of the warrants exceeded the average market price. As of July 31, 2014, 26,666,666 outstanding common stock purchase warrants were not exercised and expired. |
Recovered_Sheet3
Note 2 - Summary of Significant Accounting Policies: Foreign Currency Transactions and Translations Policy (Policies) | 3 Months Ended | |
Jul. 31, 2014 | ||
Policies | ' | |
Foreign Currency Transactions and Translations Policy | ' | |
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, 2014 | RMB 6.16 to $1.00 | |
As of July 31, 2014 | RMB 6.16 to $1.00 | |
Three months ended July 31, 2014 | RMB 6.16 to $1.00 | |
Three months ended July 31, 2013 | RMB 6.18 to $1.00 |
Recovered_Sheet4
Note 2 - Summary of Significant Accounting Policies: Concentrations of Credit Risk (Policies) | 3 Months Ended |
Jul. 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 July 31, 2014, we had $1,287,005 on deposit in China, which is not insured. We have not experienced any losses in such accounts through July 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_Sheet5
Note 2 - Summary of Significant Accounting Policies: Stock Based Compensation (Policies) | 3 Months Ended |
Jul. 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_Sheet6
Note 2 - Summary of Significant Accounting Policies: Research and Development (Policies) | 3 Months Ended |
Jul. 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 statements of operations. Research and development costs are incurred on a project specific basis. Research and development cost were $725 and $57,268 for the three months ended July 31, 2014 and 2013, respectively. |
Recovered_Sheet7
Note 2 - Summary of Significant Accounting Policies: Shipping Costs (Policies) | 3 Months Ended |
Jul. 31, 2014 | |
Policies | ' |
Shipping Costs | ' |
SHIPPING COSTS | |
Shipping costs are included in selling expenses and totaled $82,777 and $71,697 for the three months ended July 31, 2014 and 2013, respectively. |
Recovered_Sheet8
Note 2 - Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Jul. 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 2013-05 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 have no 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. |
Items_Tables
Items (Tables) | 3 Months Ended | ||||
Jul. 31, 2014 | |||||
Tables/Schedules | ' | ||||
Earnings per Share Computation Table | ' | ||||
For Three Months Ended July 31, | |||||
2014 | 2013 | ||||
Numerator: | |||||
Net loss attributable to Sunwin Stevia International, Inc. | $ (504,204) | $ (585,374) | |||
Numerator for basic EPS, loss applicable to common stock holders | $ (504,204) | $ (585,374) | |||
Denominator: | |||||
Denominator for basic earnings per share - weighted average number of common shares outstanding | 173,882,803 | 173,882,803 | |||
Stock awards, options, and warrants | - | - | |||
Denominator for diluted earnings per share - adjusted weighted average outstanding average number of common shares outstanding | 173,882,803 | 173,882,803 | |||
Basic and diluted loss per common share: | |||||
Loss per share - basic | $ (0.003) | $ (0.003) | |||
Loss per share - diluted | $ (0.003) | $ (0.003) | |||
Property and equipment table | ' | ||||
(Estimated Life) | July 31, 2014 (unaudited) | 30-Apr-14 | |||
Office Equipment (5-7 Years) | $ 58,216 | $ 58,266 | |||
Auto and Trucks (10 Years) | 928,262 | 929,042 | |||
Manufacturing Equipment (20 Years) | 12,011,777 | 11,987,404 | |||
Buildings (20 Years) | 10,294,687 | 10,303,529 | |||
Construction in Process | 1,720,154 | 1,284,199 | |||
Gross Property and Equipment | 25,013,096 | 24,562,440 | |||
Less: Accumulated Depreciation | (10,226,723) | (9,624,082) | |||
Property and equipment, net | $ 14,786,373 | $ 14,938,358 | |||
Schedule of Intangible Assets and Goodwill | ' | ||||
(Estimated Life) | July 31, 2014 (unaudited) | 30-Apr-14 | |||
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 | (623,253) | (541,959) | |||
Intangible Assets, net | $ 1,002,621 | $ 1,083,915 | |||
Land use right table | ' | ||||
(Estimated Life) | July 31, 2014 (unaudited) | 30-Apr-14 | |||
Land use right, gross (41-65 Years) | $ 2,579,787 | $ 2,581,947 | |||
Less: accumulated amortization | (343,721) | (329,672) | |||
Land use right, net | $ 2,236,066 | $ 2,252,275 | |||
Schedule of due to related parties | ' | ||||
Pharmaceutical | Qufu | Total | |||
Corporation | Shengwang | ||||
Import and Export | |||||
Balance due to related parties, April 30, 2014 | $ 248,873 | $ 106,308 | $ 355,181 | ||
Working capital advances from related parties | 0 | 91,377 | 91,377 | ||
Repayments | (64,813) | 0 | (64,813) | ||
Effect of foreign currency exchange | (283) | 0 | (283) | ||
Balance due to related parties, July 31, 2014 | $ 183,777 | $ 197,685 | $ 381,462 | ||
Schedule of Segment Reporting Information, by Segment | ' | ||||
Three Months Ended July 31, | |||||
2014 | 2013 | ||||
Revenues: | |||||
Chinese medicine – third party | $ 522,194 | $ 571,560 | |||
Chinese medicine – related party | 0 | 0 | |||
Total Chinese medicine | 522,194 | $ 571,560 | |||
Stevioside – third party | 2,428,707 | 1,002,035 | |||
Stevioside – related party | 885,608 | 1,143,311 | |||
Total Stevioside | 3,314,315 | 2,145,346 | |||
Total segment and consolidated revenues | $ 3,836,509 | $ 2,716,906 | |||
Interest income (expense): | |||||
Chinese medicine | $ 139 | $ 144 | |||
Stevioside | (63,093) | (15,532) | |||
Corporate and other | 0 | 0 | |||
Total segment and consolidated interest expense | $ (62,954) | $ (15,388) | |||
Depreciation and amortization: | |||||
Chinese medicine | $ 20,608 | $ 0 | |||
Stevioside | 685,804 | 545,665 | |||
Corporate and other | 0 | 0 | |||
Total segment and consolidated depreciation and amortization | $ 706,412 | $ 545,665 | |||
Income (loss) before income taxes: | |||||
Chinese medicine | $ 24,115 | $ (8,858) | |||
Stevioside | (459,138) | (623,506) | |||
Corporate and other | (69,181) | 46,990 | |||
Total consolidated loss before income taxes | $ (504,204 | $ (585,374 | |||
Schedule of Segment Asset | ' | ||||
31-Jul-14 | 30-Apr-14 | ||||
Segment tangible assets: | |||||
Chinese medicine | $ 637,914 | $ 605,918 | |||
Stevioside | 14,148,459 | 14,332,440 | |||
Corporate and other | 0 | 0 | |||
Total consolidated assets | $ 14,786,373 | $ 14,938,358 | |||
Customer concentrations table | ' | ||||
Net Sales | |||||
For the three months ended July 31, 2014 | For the three months ended July 31, 2013 | ||||
Chinese Medicine | Stevioside | Chinese Medicine | Stevioside | ||
Qufu Shengwang Import and Export Trade Co., Ltd | 27.4% | 0 | 53.3% | ||
Qingdao Runde Biological Technology Co.Ltd | 0 | 26.6% | 0 | 0 | |
Zhonghua (Qingdao) Industrial Co., Ltd. | 0 | 15.4% | 0 | 0 | |
Guangdong Tengjun Veterinary Medicine Co., Ltd | 10.8% | 0 | 11.7% | 0 | |
Total | 10.8% | 69.4% | 11.7% | 53.3% | |
Vendor concentrations table | ' | ||||
Net Purchases | |||||
For the three months ended July 31, 2014 | For the three months ended July 31, 2013 | ||||
Chinese Medicine | Stevioside | Chinese Medicine | Stevioside | ||
Shandong Heze Zhongshun Pharmaceutical Co., Ltd | 0 | 0 | 17.2% | 0 | |
Bozhou Weitao Pharmaceutical Co., Ltd | 0 | 0 | 15.5% | 0 | |
Qufu Longheng Materials Co., Ltd | 0 | 0 | 21.6% | 0 | |
Shandong Xiwang Sugar Industry Co., Ltd | 14.3% | 0 | 0 | 0 | |
Gansu Fanzhi Biology Techonology Co.,Ltd | 11.3% | 0 | 23.1% | 0 | |
Qufu Electricity Corp. | 13.6% | 0 | 0 | 0 | |
Jiangyin Suxin Dry Equipment Co., Ltd | 13.6% | 0 | 0 | 0 | |
Gansu DunHuang Agriculture Products Co.,Ltd | 0 | 0 | 0 | 15.1% | |
Jiuquan Deyizhi Ecological Argriculture Co.,Ltd | 0 | 0 | 0 | 12.9% | |
Gansu Puhua Stevia Develop Co., Ltd | 0 | 21.3% | 0 | 0 | |
Shandong Jinhuaxia Environment Engineering Co. Ltd. | 0 | 0 | 0 | 26.2% | |
Mingguang Xingshi Stevia Corp. | 0 | 31.8% | 0 | 0 | |
Ganzhou Julong High Tech Co., Ltd | 0 | 18.3% | 0 | 0 | |
Total | 52.8% | 71.4% | 77.4% | 54.2% | |
Items_Details
Items (Details) (USD $) | 3 Months Ended | ||||||
Jul. 31, 2014 | Jul. 31, 2013 | Apr. 30, 2014 | Jan. 26, 2014 | Aug. 22, 2012 | Dec. 08, 2011 | Aug. 25, 2011 | |
Details | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents held in PRC | $1,287,005 | ' | $1,194,668 | ' | ' | ' | ' |
Cash and cash equivalents held in US | 265 | ' | 895 | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable | 1,142,604 | ' | 1,143,550 | ' | ' | ' | ' |
Reserve for obsolete or slow-moving inventories | 635,118 | ' | 635,644 | ' | ' | ' | ' |
Taxes Payable, Current | 57,598 | ' | 69,298 | ' | ' | ' | ' |
Net loss1 | -504,204 | -585,374 | ' | ' | ' | ' | ' |
Numerator for basic EPS, loss applicable to common stock holders | -504,204 | -585,374 | ' | ' | ' | ' | ' |
Weighted Average Number of Shares Issued, Basic | 173,882,803 | 173,882,803 | ' | ' | ' | ' | ' |
Weighted Average Number of Shares Outstanding, Diluted | 173,882,803 | 173,882,803 | ' | ' | ' | ' | ' |
Earnings Per Share, Basic | ($0.00) | ($0.00) | ' | ' | ' | ' | ' |
Foreign Currency Exchange Rate, Translation | 6.16 | ' | 6.16 | ' | ' | ' | ' |
Average exchange rates | 6.16 | 6.18 | ' | ' | ' | ' | ' |
Research and Development Expense | 725 | 57,268 | ' | ' | ' | ' | ' |
Shipping, Handling and Transportation Costs | 82,777 | 71,697 | ' | ' | ' | ' | ' |
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 | 1,962,267 | ' | 1,963,891 | ' | ' | ' | ' |
Inventory, Raw Materials, Gross | 1,469,348 | ' | 1,548,181 | ' | ' | ' | ' |
Inventory, Work in Process, Gross | 199,141 | ' | 44,898 | ' | ' | ' | ' |
Inventory, Finished Goods, Gross | 2,446,872 | ' | 2,295,930 | ' | ' | ' | ' |
Inventory, Gross | 4,115,361 | ' | 3,889,009 | ' | ' | ' | ' |
Reserve for obsolete inventory | -635,118 | ' | -635,644 | ' | ' | ' | ' |
Inventories, net | 3,480,243 | ' | 3,253,365 | ' | ' | ' | ' |
Office Equipment | 58,216 | ' | 58,266 | ' | ' | ' | ' |
Auto and Trucks | 928,262 | ' | 929,042 | ' | ' | ' | ' |
Machinery and Equipment, Gross | 12,011,777 | ' | 11,987,404 | ' | ' | ' | ' |
Buildings and Improvements, Gross | 10,294,687 | ' | 10,303,529 | ' | ' | ' | ' |
Construction in Progress, Gross | 1,720,154 | ' | 1,284,199 | ' | ' | ' | ' |
Property, Plant and Equipment, Gross | 25,013,096 | ' | 24,562,440 | ' | ' | ' | ' |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -10,226,723 | ' | -9,624,082 | ' | ' | ' | ' |
Property and equipment, net | 14,786,373 | ' | 14,938,358 | ' | ' | ' | ' |
Depreciation expense | 610,792 | 450,085 | ' | ' | ' | ' | ' |
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 | 81,294 | 81,294 | ' | ' | ' | ' | ' |
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 | -623,253 | ' | -541,959 | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Net | 1,002,621 | ' | 1,083,915 | ' | ' | ' | ' |
Land use right, gross | 2,579,787 | ' | 2,581,947 | ' | ' | ' | ' |
Accumulated amortization of Land Use Rights | -343,721 | ' | -329,672 | ' | ' | ' | ' |
LandUseRight | 2,236,066 | ' | 2,252,275 | ' | ' | ' | ' |
Amortization expense - Land use rights | 14,326 | 14,286 | ' | ' | ' | ' | ' |
Accounts receivable - related party | 880,319 | ' | 953,400 | ' | ' | ' | ' |
Revenue from Related Parties | 885,608 | 1,143,311 | ' | ' | ' | ' | ' |
Due to Pharmaceutical Corporation | 183,777 | ' | 248,873 | ' | ' | ' | ' |
Due to Qufu Shengwang | 197,685 | ' | 106,308 | ' | ' | ' | ' |
Prepaid expenses and other current assets | 977,776 | ' | 1,192,649 | ' | ' | ' | ' |
Prepayments to suppliers | 486,812 | ' | ' | ' | ' | ' | ' |
Employee advances and others | 230,968 | ' | ' | ' | ' | ' | ' |
Prepaid VAT | 77,576 | ' | ' | ' | ' | ' | ' |
Deposits for Land Use Right | 182,420 | ' | ' | ' | ' | ' | ' |
Grant funding received | ' | ' | ' | 1,146,921 | ' | ' | ' |
Short-term Bank Loans and Notes Payable | ' | ' | 811,794 | ' | ' | ' | ' |
Net revenues - Chinese Medicines | 522,194 | 571,560 | ' | ' | ' | ' | ' |
Net revenues - Chinese medicine - related party | 0 | 0 | ' | ' | ' | ' | ' |
Net revenues - Chinese medicine - Total | 522,194 | 571,560 | ' | ' | ' | ' | ' |
Net revenues - Stevioside - third party | 2,428,707 | 1,002,035 | ' | ' | ' | ' | ' |
Net revenues - Stevioside - related party | 885,608 | 1,143,311 | ' | ' | ' | ' | ' |
Net revenues - Stevioside - Total | 3,314,315 | 2,145,346 | ' | ' | ' | ' | ' |
Net revenues - Total segment and consolidated revenues | 3,836,509 | 2,716,906 | ' | ' | ' | ' | ' |
Interest income - Chinese Medicines | 139 | 144 | ' | ' | ' | ' | ' |
Interest income - Stevioside | -63,093 | -15,532 | ' | ' | ' | ' | ' |
Interest income - Corporate and other | 0 | 0 | ' | ' | ' | ' | ' |
Interest income - Total segment and consolidated interest expense | -62,954 | -15,388 | ' | ' | ' | ' | ' |
Depreciation and amortization - Chinese Medicines | 20,608 | 0 | ' | ' | ' | ' | ' |
Depreciation and amortization - Stevioside | 685,804 | 545,665 | ' | ' | ' | ' | ' |
Depreciation and amortization - Corporate and other | 0 | 0 | ' | ' | ' | ' | ' |
Depreciation and amortization - Total segment and consolidated depreciation and amortization | 706,412 | 545,665 | ' | ' | ' | ' | ' |
Loss before taxes and noncontrolling interest - Chinese Medicines | 24,115 | -8,858 | ' | ' | ' | ' | ' |
Loss before taxes and noncontrolling interest - Stevioside | -459,138 | -623,506 | ' | ' | ' | ' | ' |
Loss before taxes and noncontrolling interest - Corporate and other | -69,181 | 46,990 | ' | ' | ' | ' | ' |
Segment assets- Chinese Medicines | 637,914 | ' | 605,918 | ' | ' | ' | ' |
Segment assets-Stevioside | 14,148,459 | ' | 14,332,440 | ' | ' | ' | ' |
Segment assets-Corporate and other | 0 | ' | 0 | ' | ' | ' | ' |
Segment assets-Total consolidated assets | 14,786,373 | ' | 14,938,358 | ' | ' | ' | ' |
Investment in real estate held for resale | 1,962,267 | ' | 1,963,891 | ' | ' | ' | ' |
Deposits in PRC | $1,287,005 | ' | ' | ' | ' | ' | ' |