Document and Entity Information
Document and Entity Information - USD ($) | 3 Months Ended | ||
Jul. 31, 2016 | Sep. 12, 2016 | Oct. 31, 2015 | |
Document and Entity Information: | |||
Entity Registrant Name | SUNWIN STEVIA INTERNATIONAL, INC. | ||
Document Type | 10-Q | ||
Document Period End Date | Jul. 31, 2016 | ||
Trading Symbol | suwn | ||
Amendment Flag | false | ||
Entity Central Index Key | 806,592 | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Common Stock, Shares Outstanding | 199,632,803 | ||
Entity Public Float | $ 24,781,423 | ||
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 | 2,017 | ||
Document Fiscal Period Focus | Q1 |
SUNWIN STEVIA INTERNATIONAL, IN
SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 174,912 | $ 900,071 |
Accounts receivable, net of allowance for doubtful accounts of $1,347,009 and $1,202,610, respectively | 2,194,915 | 2,099,503 |
Accounts receivable - related party | 3,277,616 | 3,632,876 |
Inventories, net | 5,692,671 | 4,526,580 |
Prepaid expenses and other current assets | 3,015,322 | 2,787,371 |
Total Current Assets | 14,355,436 | 13,946,401 |
Investment in real estate held for resale | 311,467 | |
Property and equipment, net | 9,047,224 | 9,154,077 |
Intangible assets, net | 352,272 | 433,565 |
Land use rights, net | 1,966,530 | 2,032,693 |
Other long-term asset | 1,782,249 | 2,092,778 |
Total Assets | 27,503,711 | 27,970,981 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 8,364,740 | 6,860,826 |
Loans payable | 2,265,560 | 2,263,387 |
Due to related party | 510,529 | 1,277,248 |
Total Current Liabilities | 11,140,829 | 10,401,461 |
STOCKHOLDERS' EQUITY: | ||
Common stock, $0.001 par value, 200,000,000 shares authorized; 199,632,803 and 199,632,803 shares issued and outstanding as of July 31, 2016 and April 30, 2016, respectively | 199,633 | 199,633 |
Additional paid-in capital | 37,681,279 | 37,681,279 |
Accumulated deficit | (26,047,699) | (25,214,532) |
Accumulated other comprehensive income | 4,529,669 | 4,903,140 |
Total Stockholders' Equity | 16,362,882 | 17,569,520 |
Total Liabilities and Stockholders' Equity | $ 27,503,711 | $ 27,970,981 |
"SUNWIN STEVIA INTERNATIONAL, I
"SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Revenues: | ||
Revenues | $ 2,874,779 | $ 1,902,677 |
Revenues - related party | 1,513,738 | 3,075,656 |
Total revenues | 4,388,517 | 4,978,333 |
Cost of revenues | 3,764,523 | 4,193,436 |
Gross profit | 623,994 | 784,897 |
Operating expenses: | ||
Selling expenses | 414,150 | 318,714 |
General and administrative expenses | 981,778 | 725,119 |
Research and development expenses | 39,059 | 11,542 |
Total operating expenses, net | 1,434,987 | 1,055,375 |
Loss from operations | (810,993) | (270,478) |
Other income (expenses): | ||
Other income (expenses) | 59,160 | 4,160 |
Grant income | 110,865 | |
Interest income | 268 | 489 |
Interest expense - related party | (25,645) | (41,466) |
Interest expense | (55,957) | (37,379) |
Total other income (expense) | (22,174) | 36,669 |
Loss before income taxes | (833,167) | (233,809) |
Provision for income taxes | 1,036 | |
Net loss | (833,167) | (234,845) |
Comprehensive loss | ||
Net loss | (833,167) | (234,845) |
Foreign currency translation adjustment | (373,471) | (355,541) |
Total Comprehensive loss | $ (1,206,638) | $ (590,386) |
Net loss per common share: | ||
Net Loss per share-basic and diluted | $ (0.005) | $ (0.001) |
Weighted average common shares outstanding - basic and diluted | 182,066,546 | 174,687,151 |
SUNWIN STEVIA INTERNATIONAL, I4
SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (833,167) | $ (234,845) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||
Depreciation expense | 324,049 | 386,484 |
Amortization of intangible assets | 81,293 | 81,293 |
Amortization of land use right | 13,382 | 14,492 |
Allowance for doubtful accounts | 176,448 | 33,959 |
Stock issued for services | 36,250 | 100,625 |
Stock issued for employees' compensation | 306,668 | |
Loss from sales of real estate investment held for resale | 2,425 | |
Changes in operating assets and liabilities: | ||
Accounts receivable and notes receivable | (311,352) | (452,433) |
Accounts receivable - related party | 263,908 | 325,520 |
Inventories | (1,291,021) | 405,724 |
Prepaid expenses and other current assets | (316,399) | (318,334) |
Accounts payable and accrued expenses | 1,648,293 | 681,395 |
Deferred grant income | (110,865) | |
Taxes payable | (127,724) | (1,580) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (26,947) | 911,435 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (299,181) | (4,478) |
Proceeds from disposal of real estate investment | 303,149 | |
NET CASH USED IN INVESTING ACTIVITIES | 3,968 | (4,478) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from loans | 60,630 | |
Repayment of short-term loans | (365,443) | |
Advance due from related parties | 1,200,657 | 2,175,574 |
Repayment of related party advances | (1,945,238) | (2,579,703) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | (683,951) | (769,572) |
EFFECT OF EXCHANGE RATE ON CASH | (18,229) | 142,210 |
NET CHANGE IN CASH | (725,159) | 279,595 |
Cash | 900,071 | 241,967 |
Cash | 174,912 | 521,562 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||
Cash paid for income taxes | 1,036 | |
Cash paid for interest | 25,645 | 78,845 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Property and equipments acquired on credit as payable | $ 168,651 | $ 98,530 |
Note 1 - Organization and Opera
Note 1 - Organization and Operations | 3 Months Ended |
Jul. 31, 2016 | |
Notes | |
Note 1 - Organization and Operations | NOTE 1 - ORGANIZATION AND OPERATIONS DESCRIPTION OF BUSINESS Sunwin Stevia International, Inc. ("Sunwin Stevia International"), a Nevada corporation, and its subsidiaries are referred to in this report as "we", "us", "our", "Sunwin" or the "Company". We sell stevioside, a natural sweetener, 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., and subsidiaries included in continuing operations consisted of the following: - Qufu Natural Green Engineering Co., Ltd. ( "Qufu Natural Green"), a wholly owned by Sunwin Stevia International; - QufuShengren Pharmaceutical Co., Ltd. ("QufuShengren"), a wholly owned by Qufu Natural Green; - QufuShengwang Stevia Biology and Science Co., Ltd. ("QufuShengwang"), a wholly owned by Qufu Natural Green; - Sunwin Tech Group, Inc. ("Sunwin Tech"), a wholly owned by Sunwin Stevia International; and - Sunwin USA, LLC. ("Sunwin USA"), a wholly owned by Sunwin Stevia International. 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. QufuShengwang In fiscal 2009, Qufu Natural Green acquired a 60% interest in QufuShengwang from its shareholder, Shandong Group, for $4,026,851. The purchase price represented 60% of the value of the net tangible assets of QufuShengwang as of April 30, 2008. Shandong Group is owned by Laiwang Zhang, our President and Chairman of the Board of Directors. QufuShengwang manufactures and sells stevia -based fertilizers and feed additives. On September 30, 2011, Qufu Natural Green purchased the 40% equity interest in QufuShengwang 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 QufuShengwang. On July 1, 2012, QufuShengwang 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 QufuShengwang. The bio-bacterial fertilizers will be distributed under QufuShengwang'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. QufuShengren In fiscal 2009, Qufu Natural Green acquired QufuShengren for $3,097,242. The purchase price was equal to the value of the assets of QufuShengren as determined by an independent asset appraisal in accordance with asset appraisal principles in the PRC. Prior to being acquired by us, QufuShengren was engaged in the production and distribution of bulk drugs and pharmaceuticals. Subsequent to the acquisition, QufuShengren 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. 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. This agreement is still in effect as of today. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended |
Jul. 31, 2016 | |
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, 2016 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, 2016 are not necessarily indicative of the results of operations or cash flows which may be reported for future periods or the full fiscal year. The condensed consolidated balance sheet as of April 30, 2016 contained herein has been derived from the audited consolidated financial statements as of April 30, 2016, but do not include all disclosures required by the U.S. GAAP. Our unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Our subsidiaries include the following: - Qufu Natural Green; - QufuShengren; - QufuShengwang; - Sunwin Tech; and - Sunwin USA As reflected in the accompanying unaudited condensed consolidated financial statements, during the three months ended July 31, 2016, the Company had a net loss of approximately $833,000 and net cash used in operations of approximately $27,000. At July 31, 2016, we had working capital of $3.2 million, including cash of $0.2 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, 2016, we held $174,462 of our cash and cash equivalents with commercial banking institutions in the PRC, and $450 with banks in the United States. As of April 30, 2016, we held $900,071 of our cash and cash equivalents with commercial banking institution in PRC, and $0 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, 2016. ACCOUNTS RECEIVABLE Accounts receivable and other receivable are reported at net realizable value. We have established an allowance for doubtful accounts based upon factors pertaining to the credit risk of specific customers, historical trends, and other information. Delinquent accounts are written off when it is determined that the amounts are uncollectible after exhaustive efforts on collection. On July 31, 2016 and April 30, 2016, the allowance for doubtful accounts was $1,347,009 and $1,202,610, 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, 2016 and April 30, 2016, the Company recorded a reserve for obsolete or slow-moving inventories of $104,898 and $107,658, 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 three to thirty years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. In accordance with paragraph 360-10-35-17 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC"), we examine the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Included in property and equipment is construction-in-progress which consisted of factory improvements and machinery pending installation and included the costs of construction, machinery and equipment, and or any interest charges arising from borrowings used to finance these assets during the period of construction or installation of the assets if applicable. No provision for depreciation is made on construction-in-progress until such time as the relevant assets are completed and ready for their intended use. LONG-LIVED ASSETS In accordance with ASC 360, we review and evaluate our long-lived assets, including property and equipment, intangible assets, and land use rights, for impairment or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets, including goodwill, if any. An impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of future cash flows from other asset groups. Our estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates. Based on our evaluation, we have determined certain long-lived assets that are no longer useful for our operations, and we recorded a disposition loss of $0 and $1,622,762 at July 31, 2016 and April 30, 2016, respectively. FAIR VALUE OF FINANCIAL INSTRUMENTS We adopted ASC Section 820-10-35-37 to measure the fair value of our financial instruments. ASC Section 820-10-35-37 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. The adoption of ASC Section 820-10-35-37 did not have an impact on our financial position or operating results, but did expand certain disclosures. ASC Section 820-10-35-37 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC Section 820-10-35-37 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity's own assumptions. The carrying amounts of our financial assets and liabilities, such as cash, accounts receivable, notes receivable, prepayments and other current assets, accounts payable, taxes payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. TAXES PAYABLE We are required to charge for and to collect value added taxes (VAT) on our sales on behalf of the PRC tax authority. We record VAT that we billed our customers as VAT payable. In addition, we are required to pay value added taxes on our primary purchases. We record VAT that charged by our vendors as VAT receivable. We are required to file VAT return on a monthly basis with the PRC tax authority, which we are entitled to claim the VAT that we charged by vendors as VAT credit and these credits can be applied to our VAT payable that we billed our customers. Accordingly, these VAT payable and receivable are presented as net amounts for financial statement purposes. Taxes payable on July 31, 2016 and April 30, 2016 amounted to $121,378 and $254,759, respectively, consisted primarily of VAT taxes. REVENUE RECOGNITION Pursuant to the guidance of ASC Topic 605, we record revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. 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 The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes We file federal and state income tax returns in the United States for our corporate operations pursuant to the U.S. Internal Revenue Code of 1986, as amended, and file separate foreign tax returns for our Chinese subsidiaries pursuant to the China's Unified Corporate Income Tax Law. We apply the provisions of ASC 740-10-50, "Accounting for Uncertainty in Income Taxes", which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our consolidated financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company's liability for income taxes. Any such adjustment could be material to the Company's results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of July 31, 2016, 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 ours, 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, 2016 2015 Numerator: Net loss attributable to Sunwin Stevia International, Inc. $ (833,167) $ (234,845) Numerator for basic EPS, loss applicable to common stock holders $ (833,167) $ (234,845) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 182,066,546 174,687,151 Stock awards, options, and warrants 0 0 Denominator for diluted earnings per share - adjusted weighted average outstanding average number of common shares outstanding 182,066,546 174,687,151 Basic and diluted loss per common share: Loss per share - basic and diluted $ (0.005) $ (0.001) 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 July 31, 2016 RMB 6.64to $1.00 As of April 30, 2016 RMB 6.47to $1.00 Three months ended July 31, 2016 RMB 6.60to $1.00 Three months ended July 31, 2015 RMB 6.09to $1.00 COMPREHENSIVE LOSS Comprehensive loss is comprised of net loss and all changes to the statements of stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive loss for the three months ended July 31, 2016 and 2015 included net loss and unrealized gains (losses) from foreign currency translation adjustments. 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, 2016, we had $174,462 of cash balance held in PRC banks, which is not insured. We have not experienced any losses in such accounts through July 31, 2016. 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 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). ASC 718 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 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 $39,059 and $11,542 for the three months ended July 31, 2016 and 2015, respectively. SHIPPING COSTS Shipping costs are included in selling expenses and totaled $83,667and $41,690 for the three months ended July 31, 2016 and 2015, respectively. RECLASSIFICATIONS Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings and financial position. RECENT ACCOUNTING PRONOUNCEMENTS In March 2016, the FASB issued ASU 2016-08, " Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)" Revenue from Contracts with Customers (Topic 606) In March 2016, the FASB issued ASU 2016-09, " Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU 2016- 10, " Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, " Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients 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 Est
Note 3 - Investment in Real Estate Held For Resale | 3 Months Ended |
Jul. 31, 2016 | |
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 QufuJinxuan 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 4,500 square meters (48,438 square feet), for a total purchase price of RMB15,120,000 (approximately $2,484,799) (the "Purchase Price"), at RMB 3,360 (US$546) per square meter. The Company prepaid 80% of the Purchase Price, approximately $1,987,839, upon signing the agreement on August 25, 2011, and we classified investment in real estate held for resale as a long-term asset since we did not plan on selling the apartment units during the one year period. On February 9, 2015, the Company decided to award twenty apartment complex units, totaling 3,000 square meters (32,292 square feet), to certain management personnel and outstanding performers in our technical team for their past contribution made to the Company, which also served as an incentive to stimulate improvement in performance of other employees and attract future talents to serve the Company. These apartment units are valued at the fair market price of RMB3,448 (US$561) per square meter. Ms. Dongdong Lin, our Chief Executive Officer, received an apartment valued at $84,206 which was included in her fiscal 2015 compensation. Total non-cash employees' compensation / bonus recorded for this reward amounted to RMB10,344,000 (US$1,684,122) and as a result, we recognized a gain of RMB 264,000 (US$42,989) from the excess fair value of these twenty apartment units transferred to these employees. The non-cash employees' compensation / bonus has been classified and included in the general and administrative expenses in the consolidated statements of operations and comprehensive loss for the fiscal year ended April 30, 2015. On May 5, 2016, Qufu Natural Green entered into an agreement with Shandong Jinglucheng Real Estate Development Co., Ltd., formerly known as QufuJinxuan Real Estate Development Co., Ltd., to sell the remaining ten units of the thirty apartment units in China to Mr. Linghe Zhu, an unaffiliated third party buyer, for a total purchase price of RMB5,024,000 (approximately $766,438). As per the Purchase Agreement, the buyer shall directly pay RMB3,024,000 (approximately $461,327) to Shandong Jinglucheng Real Estate Development Co., Ltd. for the balance that Qufu Natural Green owed to Shandong Jinglucheng Real Estate Development Co., Ltd., and pay RMB2,000,000 (approximately $305,111) to Qufu Natural Green before May 31, 2016. The Company received the payment of RMB2,000,000 on May 24, 2016. The Company has incurred a loss from sales of these remaining ten apartments of RMB16,000 (approximately $2,425) during the three month ended July 31, 2016. As of July 31, 2016 and April 30, 2016, investment in real estate held for resale amounted to $0 and $311,467, respectively. |
Note 4 - Inventories
Note 4 - Inventories | 3 Months Ended |
Jul. 31, 2016 | |
Notes | |
Note 4 - Inventories | NOTE 4 - INVENTORIES At July 31, 2016 and April 30, 2016, inventories consisted of the following: July 31, 2016 (unaudited) April 30, 2016 Raw materials $ 2,759,604 $ 2,287,572 Work in process 944,706 1,221,115 Finished goods 2,093,259 1,125,551 Inventories, gross 5,797,569 4,634,238 Less: reserve for obsolete inventory (104,898) (107,658) Inventories, net $ 5,692,671 $ 4,526,580 |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 3 Months Ended |
Jul. 31, 2016 | |
Notes | |
Note 5 - Property and Equipment | NOTE 5 - PROPERTY AND EQUIPMENT At July 31, 2016 and April 30, 2016, property and equipment consisted of the following: (Estimated Life) July 31, 2016 (unaudited) April 30, 2016 Office equipment (1-10 Years) $ 44,761 $ 39,800 Auto and trucks (3-10 Years) 498,159 492,620 Manufacturing equipment (2-20 Years) 5,105,932 5,240,451 Buildings (5-30 Years) 8,435,733 8,667,889 Construction in process 1,004,559 583,954 Gross Property and Equipment 15,089,144 15,024,714 Less: accumulated depreciation (6,041,920) (5,870,637) Property and equipment, net $ 9,047,224 $ 9,154,077 For the three months ended July 31, 2016 and 2015, depreciation expense totaled $324,049 and $386,484, of which $252,239 and $281,871 was included in cost of revenues, respectively, and of which $71,810 and $104,613was 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. |
Note 6 - Intangible Assets
Note 6 - Intangible Assets | 3 Months Ended |
Jul. 31, 2016 | |
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 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, 2016 and 2015, amortization expense amounted to $81,293 and $81,293, respectively. Intangible assets consisted of the following: (Estimated Life) July 31, 2016 (unaudited) April 30, 2016 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 (1,273,602) (1,192,309) Intangible assets, net $ 352,272 $ 433,565 |
Note 7 - Land Use Rights
Note 7 - Land Use Rights | 3 Months Ended |
Jul. 31, 2016 | |
Notes | |
Note 7 - Land Use Rights | NOTE 7 - LAND USE RIGHTS Land use right consisted of the following: (Estimated Life) July 31, 2016 (unaudited) April 30, 2016 Land use right (45 Years) $ 2,391,803 $ 2,455,519 Less: accumulated amortization (425,273) (422,826) Land use right, net $ 1,966,530 $ 2,032,693 In conjunction with our acquisition of QufuShengwang, we acquired land use rights for properties located in the PRC until March 14, 2054. For the three month periods ended July 31, 2016 and 2015, amortization expense related to land use rights amounted to $13,382 and $14,492, respectively. |
Note 8 - Related Party Transact
Note 8 - Related Party Transactions | 3 Months Ended |
Jul. 31, 2016 | |
Notes | |
Note 8 - Related Party Transactions | NOTE 8 - RELATED PARTY TRANSACTIONS Accounts receivable - related party and revenue - related party On July 31, 2016 and April 30, 2016, we reported $3,277,616 and $3,632,876 in accounts receivable - related party, respectively, related to sales of products to QufuShengwang Import and Export Corporation, a Chinese entity owned by our Chairman, Mr. Laiwang Zhang. For the three months ended July 31, 2016 and 2015, we had revenue - related party of $1,513,738 and $3,075,656, respectively, from QufuShengwang Import and Export Corporation, Due to (from) related parties From time to time, we receive advances from related parties and advance funds to related parties for working capital purposes. In the three months ended July 31, 2016 and 2015, we received advances from related parties for working capital totaled $1,200,657 and $2,175,574, respectively, and we repaid to related parties a total of $1,945,238 and $2,579,703, respectively. In the three months ended July 31, 2016 and 2015, interest expense related to due to related parties amounted to $25,645 and $41,466, respectively, which were included in interest expense in the accompanying consolidated statements of operations and comprehensive loss, and in connection with the advances of $821,693 (RMB5,000,000) and $1,314,708 (RMB8,000,000) from ShangdongShengwang Pharmaceutical., Co., Ltd. (0„3Pharmaceutical Corporation0„3), a Chinese entity owned by our Chairman, Mr. Laiwang Zhang. These advances bear interest at the rate of 9.225% per annum and we have repaid these two loans with all accrued interests on May 8, 2015 and June 11, 2015, respectively. On May 22, 2015 and June 17, 2015, we received additional advances of $788,825 (RMB4,800,000) and $1,314,708 (RMB8,000,000) from the Pharmaceutical Corporation, at a lowered interest rate of 7.65% per annum. On May 4, 2016, we have repaid one of these two loans, RMB4,800,000 with its accrued interests. The other advances bear no interest and are payable on demand. On July 31, 2016, the balance we owed QufuShengwang Import Export Co., Ltd. and Shandong Shengwang Pharmaceutical Co., Ltd. of $324,560 and $185,969, respectively. On April 30, 2016, the balance we owed QufuShengwang Import and Export Co., Ltd. and Shandong Shengwang Pharmaceutical Co., Ltd. of $366,875 and $910,373, respectively. On July 31, 2016 and April 30, 2016, due to (from) related party activities consisted of the following: Shandong Shengwang Pharmaceutical Co., Ltd. Qufu Shengwang Import and Export Co., Ltd. Total Balance due to related parties, April 30, 2016 $ 910,373 $ 366,875 $ 1,277,248 Working capital advances from related parties 914,048 286,609 1,200,657 Repayments (1,628,425) (316,813) (1,945,238) Effect of foreign currency exchange (10,027) (12,111) (22,138) Balance due to related parties, July 31, 2016 $ 185,969 $ 324,560 $ 510,529 |
Note 9 - Prepaid Expenses and O
Note 9 - Prepaid Expenses and Other Current Assets | 3 Months Ended |
Jul. 31, 2016 | |
Notes | |
Note 9 - Prepaid Expenses and Other Current Assets | NOTE 9 - PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets on July 31, 2016 and April 30, 2016 totaled $3,015,322 and $2,787,371, respectively. As of July 31, 2016, prepaid expenses and other current assets includes $1,593,300 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us, $1,226,668 prepayment for employees' stock-based compensation and $195,354 for business related employees' advances. As of April 30, 2016, prepaid expenses and other current assets includes $1,220,523 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us, $1,371,667 prepayment for employees' stock-based compensation, and $195,181 for business related employees' advances. On December 1, 2015, we entered into three year employment agreements with four employees. Pursuant to employment agreements, we issued a total of 23 million shares of the Company's common stock to them, valued at $3,680,000, as employees' stock-based compensations over three-year term of their employment from December 1, 2015 through November 30, 2018. We will amortize these compensations over three years from December 1, 2015 to November 30, 2018 and we recognized $306,667 and $511,111 as stock-based compensation expenses during the first quarter of fiscal year 2017 and fiscal year 2016, respectively. We also have recorded the remaining balance of the stock-based compensation of $2,862,222 as prepaid compensation, of which $1,226,668 included in prepaid expenses and other current assets and $1,635,554 included in the other long-term asset in the accompanying consolidated balance sheet at July 31, 2016. On April 25, 2016, we entered into an one year consulting service agreement with Dr. Yuejian (James) Wang. Pursuant to the terms of the consulting service agreement for fiscal year 2017, we will issue a total of 1,000,000 shares of the Company's common stock to Dr. Yuejian (James) Wang as compensation for the services to be provided from May 1, 2016 through April 30, 2017. On April 27, 2016, we issued 1,000,000 shares of the Company's common stock to Dr. Yuejian (James) Wang as a prepaid payment of the consulting service fee, valued at $145,000, which included in the prepaid expenses and other current assets in the accompanying consolidated balance at April 30, 2016. We will amortize this prepaid consulting service fee through fiscal 2017 over twelve months. We have recorded $36,250 as stock-based compensation expense during the first quarter of fiscal 2017 and the balance of prepaid expense is $108,750 as of July 31, 2016. During the third quarter of fiscal 2013, QufuShengwang paid Qufu Public Auction Center $610,751 as deposit for renewing the land use right. The deposit is required for the Center to appraise the land use right, which we originally expected to receive the refund during fiscal year 2014. We received a total refund of $464,056 as of July 31, 2016 and the remaining balance of $146,695 and $150,556 has been classified to other long-term asset at July 31, 2016 and April 30, 2016, respectively. |
Note 10 - Accounts Payable and
Note 10 - Accounts Payable and Accrued Expenses | 3 Months Ended |
Jul. 31, 2016 | |
Notes | |
Note 10 - Accounts Payable and Accrued Expenses | NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses included the following as of July 31, 2016 and April 30, 2016: Account July 31, 2016 (unaudited) April 30, 2016 Accounts payable $ 6,167,932 $ 4,869,026 Advanced from customers 220,129 10,042 Accrued salary payable 162,962 105,131 Tax payable 121,237 254,615 Deferred revenue 147,988 71,604 Other payable* 1,544,492 1,550,408 Total accounts payable and accrued expenses $ 8,364,740 $ 6,860,826 On July 31, 2016, other payables consists of commission payable of $65,947, general liability, worker's compensation, and medical insurance payable of $438,320; union and education fees payable of $291,060, consulting fee of $266,666, interest payables for short-term loans of $145,699, advanced from the employees of $219,053 and other miscellaneous payables of $117,747. On April 30, 2016, other payables consists of commission payable of $67,683; general liability, worker's compensation, and medical insurance payable of $439,706; accrued R&D payable of $78,794; consulting fee payable of $248,748, union and education fees payable of $297,728, interest payables for short-term loans of $72,731, advanced from the employees of $131,282 and other miscellaneous payables of $213,736. |
Note 11 -loan Payable
Note 11 -loan Payable | 3 Months Ended |
Jul. 31, 2016 | |
Notes | |
Note 11 -loan Payable | NOTE 11 -LOAN PAYABLE Loans payable consisted of short-term loans obtained from various individual lenders that are due within one year for working capital purpose. These loans are unsecured and can be renewed with 10 days advance notice prior to maturity date. At July 31, 2016 and April 30, 2016, short-term loans consisted of the following: July 31, 2016 (unaudited) April 30, 2016 Loan from Min Wu, an employee of QufuShengren, due on October 5, 2016 with annual interest rate of 10% at October 6, 2015 $ 22,580 $ 23,175 Loan from WeidongCai, an employee of QufuShengren, due on September 21, 2016 with annual interest rate of 10% at September 22, 2015 126,450 129,778 Loan from Jianjun Yan, non-related individual, due on October 6, 2015 with annual interest rate of 10% at October 7, 2014, which renewed on October 7, 2015 978,480 1,004,232 Multiple loans from Jianjun Yan, non-related individual, due from October 5, 2016 through April 9, 2017, with annual interest rate of 10%, which were obtained during October 6, 2015 through April 10, 2016 870,096 892,995 Multiple loans from Jianjun Yan, non-related individual, due from June 19, 2017 through July 11, 2017, with annual interest rate of 10%, which were obtained during June 20, 2016 through July 12, 2016 60,215 0 Loan from Junzhen Zhang, non-related individual, due on October 5, 2016, with annual interest rate of 10% at October 6, 2015 22,580 23,175 Loan from Jian Chen, non-related individual, due on January 26, 2017, with annual interest rate of 10% at January 27, 2016 109,891 112,783 Loan from Qing Kong, non-related individual, due on March 6, 2017, with annual interest rate of 10% at March 7, 2016 60,214 61,799 Loan from Guihai Chen, non-related individual, due on March 10, 2017, with annual interest rate of 10% at March 11, 2016 15,054 15,450 Total $ 2,265,560 $ 2,263,387 For the three months ended July 31, 2016 and 2015, interest expense related to short-term loans amounted to $55,957 and $37,379, respectively, which were included in interest expense in the accompanying consolidated statements of operations and comprehensive loss. |
Note 12 - Stockholders' Equity
Note 12 - Stockholders' Equity | 3 Months Ended |
Jul. 31, 2016 | |
Notes | |
Note 12 - Stockholders' Equity | NOTE 12 - STOCKHOLDERS' EQUITY Common stock At July 31, 2016 and April 30, 2016, we are authorized to issue 200,000,000 shares of common stock. We had 199,632,803 and 199,632,803 shares issued and outstanding at July 31, 2016 and April 30, 2016, respectively. On May 6, 2015, we issued a total of 1,000,000 shares of our common stock to Dr. Yuejian (James) Wang for consulting services, valued at $252,500, for one year term of service agreement during fiscal 2016. We amortized this consulting service fee through fiscal 2016 over twelve months and recorded $252,500 as stock-based compensation expense during fiscal 2016. On August 11, 2015, we entered into an one year consulting service agreement with Dr. Yuejian (James) Wang. Pursuant to the terms of the consulting service agreement, we issued a total of 750,000 shares of the Company's common stock to Dr. Yuejian (James) Wang as compensation for the services provided or to be provided from May 1, 2015 through April 30, 2016. On August 11, 2015 and January 14, 2016, we issued 500,000 and 250,000 shares of the Company's common stock to Dr. Yuejian (James) Wang as payment of the consulting service fee, valued at $100,000 and $50,000, respectively. We amortized this consulting service fee through fiscal 2016 over twelve months and recorded $150,000 as stock-based compensation expense during fiscal 2016. On December 1, 2015, we entered into three years employment agreements with four employees. Pursuant to employment agreements, we issued a total of 23 million shares of the Company's common stock, valued at $3,680,000, as employees' stock-based compensations over three-year term of their employment from December 1, 2015 through November 30, 2018. We will amortize these compensations over three years from December 1, 2015 to November 30, 2018 and we recognized $306,667 and $511,111 as stock-based compensation expenses during the first quarter of fiscal year 2017 and fiscal year 2016, respectively. We also have recoded the remaining balance of the stock-based compensation of $2,862,222 as prepaid compensation, of $1,226,667 included in prepaid expenses and other current assets and $1,635,555 included in the other long-term asset in the accompanying condensed consolidated balance sheet as of July 31, 2016. On April 25, 2016, we entered into an one year consulting service agreement with Dr. Yuejian (James) Wang. Pursuant to the terms of the consulting service agreement for fiscal year 2017, we will issue a total of 1,000,000 shares of the Company's common stock to Dr. Yuejian (James) Wang as compensation for the services to be provided from May 1, 2016 through April 30, 2017. On April 27, 2016, we issued 1,000,000 shares of the Company's common stock to Dr. Yuejian (James) Wang as prepaid payment of the consulting service fee, valued at $145,000, which included in the prepaid expenses and other current assets in the accompanying consolidated balance at April 30, 2016. We will amortize this prepaid consulting service fee through fiscal 2017 over twelve months.We have recorded $36,250 as stock-based compensation expense during the first quarter of fiscal 2017 and the balance of prepaid expense is $108,750 as of July 31, 2016. |
Note 13 - Segment Information
Note 13 - Segment Information | 3 Months Ended |
Jul. 31, 2016 | |
Notes | |
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, 2016 and 2015; 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, 2016 and 2015 is as follows: Three Months Ended July 31, 2016 2015 Revenues: Chinese medicine - third party $ 674,007 $ 544,173 Chinese medicine - related party 0 0 Total Chinese medicine $ 674,007 $ 544,173 Stevioside - third party 2,200,772 1,358,504 Stevioside - related party 1,513,738 3,075,656 Total Stevioside 3,714,510 4,434,160 Total segment and consolidated revenues $ 4,388,517 $ 4,978,333 Interest income (expense): Chinese medicine $ 54 $ 69 Stevioside (81,388) (78,425) Corporate and other 0 0 Total segment and consolidated interest expense $ (81,334) $ (78,356) Depreciation and amortization: Chinese medicine $ 75,193 $ 92,039 Stevioside 343,531 390,230 Corporate and other 0 0 Total segment and consolidated depreciation and amortization $ 418,724 $ 482,269 Income (loss) before income taxes: Chinese medicine $ 41,649 $ (24,194) Stevioside (458,799) (26,046) Corporate and other (416,017) (183,569) Total consolidated loss before income taxes $ (833,167) $ (233,809) July 31, 2016 April 30, 2016 Segment tangible assets: Chinese medicine $ 1,513,337 $ 1,614,531 Stevioside 7,533,887 7,539,546 Corporate and other 0 0 Total consolidated assets $ 9,047,224 $ 9,154,077 |
Note 14 - Commitments and Conti
Note 14 - Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2016 | |
Notes | |
Note 14 - Commitments and Contingencies | NOTE 14 - COMMITMENTS AND CONTINGENCIES On August 25, 2011, Qufu Natural Green entered into an agreement with QufuJinxuan 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 4,500 square meters (48,438 square feet), for a total purchase price of RMB15,120,000 (approximately $2,484,799) (the "Purchase Price"), at RMB 3,360 (US$546) per square meter. The Company prepaid 80% of the Purchase Price, approximately $1,987,839, upon signing the agreement on August 25, 2011, and we classified investment in real estate held for resale as a long-term asset since we did not plan on selling the apartment units during the one year period. On February 9, 2015, the Company decided to award twenty apartment complex units, totaling 3,000 square meters (32,292 square feet), to certain management personnel and outstanding performers in our technical team for their past contribution made to the Company, which also served as an incentive to stimulate improvement in performance of other employees and attract future talents to serve the Company. These apartment units are valued at the fair market price of RMB3,448 (US$561) per square meter. Ms. Dongdong Lin, our Chief Executive Officer, received an apartment valued at $84,206 which was included in her fiscal 2015 compensation. Total non-cash employees' compensation / bonus recorded for this reward amounted to RMB10,344,000 (US$1,684,122) and as a result, we recognized a gain of RMB 264,000 (US$42,989) from the excess fair value of these twenty apartment units transferred to these employees. The non-cash employees' compensation / bonus has been classified and included in the general and administrative expenses in the consolidated statements of operations and comprehensive loss for the fiscal year ended April 30, 2015. On May 5, 2016, Qufu Natural Green entered into an agreement with Shandong Jinglucheng Real Estate Development Co., Ltd., formerly known as QufuJinxuan Real Estate Development Co., Ltd., to sell the remaining ten units of the thirty apartment units in China to Mr. Linghe Zhu, an unaffiliated third party buyer, for a total purchase price of RMB5,024,000 (approximately $776,507). As per the Purchase Agreement, the buyer shall directly pay RMB3,024,000 (approximately $467,388) to Shandong Jinglucheng Real Estate Development Co., Ltd. for the balance that Qufu Natural Green owed to Shandong Jinglucheng Real Estate Development Co., Ltd., and pay RMB2,000,000 (approximately $303,149) to Qufu Natural Green before May 31, 2016. The Company received the payment of RMB2,000,000 on May 24, 2016, and we recorded loss on disposal of real estate investments of $2,425 for the three months ended July 31, 2016. As of July 31, 2016 and April 30, 2016, investment in real estate held for resale amounted to $0 and $311,467, respectively. |
Note 15 - Concentrations and Cr
Note 15 - Concentrations and Credit Risk | 3 Months Ended |
Jul. 31, 2016 | |
Notes | |
Note 15 - Concentrations and Credit Risk | NOTE 15 - CONCENTRATIONS AND CREDIT RISK (i) Customer Concentrations For the three months ended July 31, 2016 and 2015, customers accounting for 10% or more of the Company's revenue were as follows: Net Sales For the three months ended July 31, 2016 For the three months ended July 31, 2015 Chinese Medicine Stevioside Chinese Medicine Stevioside QufuShengwang Import and Export Trade Co., Ltd(1) - 34.3% - 69.4% Shandong Yidatong Enterprises Co., Ltd - 19.1% - - Guangdong Tengjun Veterinary Medicine Co., Ltd - - 12.5% - Beijing HaomiaoHuifeng Pharmaceutical Co., Ltd - - 11.3% - Total - 53.4% 23.8% 69.4% (1) QufuShengwang Import and Export Co., Ltd is a related party, an entity owned by Mr. Laiwang Zhang. (ii) Vendor Concentrations For the three months ended July 31, 2016 and 2015, suppliers accounting for 10% or more of the Company's purchase were as follows: Net Purchases For the three months ended July 31, 2016 For the three months ended July 31, 2015 Chinese Medicine Stevioside Chinese Medicine Stevioside Gansu Fanzhi Biology Technology Co.,Ltd - - 15.1% - Qufu Electricity Corp. - - 13.3% - SishuiRuijin Pharmaceutical Co., Ltd - - 27.2% - AnguoQiyetang Pharmaceutical Co., Ltd - - 10.3% - DongtaiYandun Stevia Corp. - - - 23.8 DongtaiJiangrongfeng Stevia Corp. - 26.1% - - Gansu Puhua Stevia Develop Co., Ltd - 13.1% - 11.2 ZhuchengHaotian Pharmaceutical Co., Ltd - 18.6% - 11.9 Total - 57.8% 65.9% 46.9 (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, 2016, we had $174,462 of cash balance held in PRC banks, 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, 2016. 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, 2016 | |
Notes | |
Note 16 - Subsequent Events | NOTE 16 - SUBSEQUENT EVENTS There have been no material subsequent events to evaluate through the date of this filing with the SEC. |
Note 2 - Summary of Significa21
Note 2 - Summary of Significant Accounting Policies: Use of Estimates (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
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 Significa22
Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
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, 2016, we held $174,462 of our cash and cash equivalents with commercial banking institutions in the PRC, and $450 with banks in the United States. As of April 30, 2016, we held $900,071 of our cash and cash equivalents with commercial banking institution in PRC, and $0 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, 2016. |
Note 2 - Summary of Significa23
Note 2 - Summary of Significant Accounting Policies: Accounts Receivable (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
Policies | |
Accounts Receivable | ACCOUNTS RECEIVABLE Accounts receivable and other receivable are reported at net realizable value. We have established an allowance for doubtful accounts based upon factors pertaining to the credit risk of specific customers, historical trends, and other information. Delinquent accounts are written off when it is determined that the amounts are uncollectible after exhaustive efforts on collection. On July 31, 2016 and April 30, 2016, the allowance for doubtful accounts was $1,347,009 and $1,202,610, respectively. |
Note 2 - Summary of Significa24
Note 2 - Summary of Significant Accounting Policies: Inventories (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
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, 2016 and April 30, 2016, the Company recorded a reserve for obsolete or slow-moving inventories of $104,898 and $107,658, respectively. |
Note 2 - Summary of Significa25
Note 2 - Summary of Significant Accounting Policies: Property and Equipment (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
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 three to thirty years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. In accordance with paragraph 360-10-35-17 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC"), we examine the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Included in property and equipment is construction-in-progress which consisted of factory improvements and machinery pending installation and included the costs of construction, machinery and equipment, and or any interest charges arising from borrowings used to finance these assets during the period of construction or installation of the assets if applicable. No provision for depreciation is made on construction-in-progress until such time as the relevant assets are completed and ready for their intended use. |
Note 2 - Summary of Significa26
Note 2 - Summary of Significant Accounting Policies: Long-lived Assets (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
Policies | |
Long-lived Assets | LONG-LIVED ASSETS In accordance with ASC 360, we review and evaluate our long-lived assets, including property and equipment, intangible assets, and land use rights, for impairment or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets, including goodwill, if any. An impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of future cash flows from other asset groups. Our estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates. Based on our evaluation, we have determined certain long-lived assets that are no longer useful for our operations, and we recorded a disposition loss of $0 and $1,622,762 at July 31, 2016 and April 30, 2016, respectively. |
Note 2 - Summary of Significa27
Note 2 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
Policies | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS We adopted ASC Section 820-10-35-37 to measure the fair value of our financial instruments. ASC Section 820-10-35-37 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. The adoption of ASC Section 820-10-35-37 did not have an impact on our financial position or operating results, but did expand certain disclosures. ASC Section 820-10-35-37 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC Section 820-10-35-37 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity's own assumptions. The carrying amounts of our financial assets and liabilities, such as cash, accounts receivable, notes receivable, prepayments and other current assets, accounts payable, taxes payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. |
Note 2 - Summary of Significa28
Note 2 - Summary of Significant Accounting Policies: Taxes Payable (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
Policies | |
Taxes Payable | TAXES PAYABLE We are required to charge for and to collect value added taxes (VAT) on our sales on behalf of the PRC tax authority. We record VAT that we billed our customers as VAT payable. In addition, we are required to pay value added taxes on our primary purchases. We record VAT that charged by our vendors as VAT receivable. We are required to file VAT return on a monthly basis with the PRC tax authority, which we are entitled to claim the VAT that we charged by vendors as VAT credit and these credits can be applied to our VAT payable that we billed our customers. Accordingly, these VAT payable and receivable are presented as net amounts for financial statement purposes. Taxes payable on July 31, 2016 and April 30, 2016 amounted to $121,378 and $254,759, respectively, consisted primarily of VAT taxes. |
Note 2 - Summary of Significa29
Note 2 - Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
Policies | |
Revenue Recognition | REVENUE RECOGNITION Pursuant to the guidance of ASC Topic 605, we record revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. |
Note 2 - Summary of Significa30
Note 2 - Summary of Significant Accounting Policies: Grant Income (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
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. |
Note 2 - Summary of Significa31
Note 2 - Summary of Significant Accounting Policies: Income Taxes (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
Policies | |
Income Taxes | INCOME TAXES The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes We file federal and state income tax returns in the United States for our corporate operations pursuant to the U.S. Internal Revenue Code of 1986, as amended, and file separate foreign tax returns for our Chinese subsidiaries pursuant to the China's Unified Corporate Income Tax Law. We apply the provisions of ASC 740-10-50, "Accounting for Uncertainty in Income Taxes", which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our consolidated financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company's liability for income taxes. Any such adjustment could be material to the Company's results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of July 31, 2016, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. |
Note 2 - Summary of Significa32
Note 2 - Summary of Significant Accounting Policies: Basic and Diluted Earnings Per Share (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
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 ours, 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, 2016 2015 Numerator: Net loss attributable to Sunwin Stevia International, Inc. $ (833,167) $ (234,845) Numerator for basic EPS, loss applicable to common stock holders $ (833,167) $ (234,845) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 182,066,546 174,687,151 Stock awards, options, and warrants 0 0 Denominator for diluted earnings per share - adjusted weighted average outstanding average number of common shares outstanding 182,066,546 174,687,151 Basic and diluted loss per common share: Loss per share - basic and diluted $ (0.005) $ (0.001) |
Note 2 - Summary of Significa33
Note 2 - Summary of Significant Accounting Policies: Foreign Currency Translation (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
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 July 31, 2016 RMB 6.64to $1.00 As of April 30, 2016 RMB 6.47to $1.00 Three months ended July 31, 2016 RMB 6.60to $1.00 Three months ended July 31, 2015 RMB 6.09to $1.00 |
Note 2 - Summary of Significa34
Note 2 - Summary of Significant Accounting Policies: Comprehensive Loss (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
Policies | |
Comprehensive Loss | COMPREHENSIVE LOSS Comprehensive loss is comprised of net loss and all changes to the statements of stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive loss for the three months ended July 31, 2016 and 2015 included net loss and unrealized gains (losses) from foreign currency translation adjustments. |
Note 2 - Summary of Significa35
Note 2 - Summary of Significant Accounting Policies: Concentrations of Credit Risk (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
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, 2016, we had $174,462 of cash balance held in PRC banks, which is not insured. We have not experienced any losses in such accounts through July 31, 2016. 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 2 - Summary of Significa36
Note 2 - Summary of Significant Accounting Policies: Stock Based Compensation (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
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 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). ASC 718 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 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. |
Note 2 - Summary of Significa37
Note 2 - Summary of Significant Accounting Policies: Research and Development (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
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 $39,059 and $11,542 for the three months ended July 31, 2016 and 2015, respectively. |
Note 2 - Summary of Significa38
Note 2 - Summary of Significant Accounting Policies: Shipping Costs (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
Policies | |
Shipping Costs | SHIPPING COSTS Shipping costs are included in selling expenses and totaled $83,667and $41,690 for the three months ended July 31, 2016 and 2015, respectively. |
Note 2 - Summary of Significa39
Note 2 - Summary of Significant Accounting Policies: Reclassifications (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
Policies | |
Reclassifications | RECLASSIFICATIONS Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings and financial position. |
Note 2 - Summary of Significa40
Note 2 - Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
Policies | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In March 2016, the FASB issued ASU 2016-08, " Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)" Revenue from Contracts with Customers (Topic 606) In March 2016, the FASB issued ASU 2016-09, " Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU 2016- 10, " Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, " Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, we have not determined whether implementation of such proposed standards would be material to our consolidated financial statements. |
Note 2 - Summary of Significa41
Note 2 - Summary of Significant Accounting Policies: Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | For Three Months Ended July 31, 2016 2015 Numerator: Net loss attributable to Sunwin Stevia International, Inc. $ (833,167) $ (234,845) Numerator for basic EPS, loss applicable to common stock holders $ (833,167) $ (234,845) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 182,066,546 174,687,151 Stock awards, options, and warrants 0 0 Denominator for diluted earnings per share - adjusted weighted average outstanding average number of common shares outstanding 182,066,546 174,687,151 Basic and diluted loss per common share: Loss per share - basic and diluted $ (0.005) $ (0.001) |
Note 2 - Summary of Significa42
Note 2 - Summary of Significant Accounting Policies: Foreign Currency Translation: Exchange rates Table (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Tables/Schedules | |
Exchange rates Table | As of July 31, 2016 RMB 6.64to $1.00 As of April 30, 2016 RMB 6.47to $1.00 Three months ended July 31, 2016 RMB 6.60to $1.00 Three months ended July 31, 2015 RMB 6.09to $1.00 |
Note 4 - Inventories_ Schedule
Note 4 - Inventories: Schedule of Inventory, Current (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Tables/Schedules | |
Schedule of Inventory, Current | July 31, 2016 (unaudited) April 30, 2016 Raw materials $ 2,759,604 $ 2,287,572 Work in process 944,706 1,221,115 Finished goods 2,093,259 1,125,551 Inventories, gross 5,797,569 4,634,238 Less: reserve for obsolete inventory (104,898) (107,658) Inventories, net $ 5,692,671 $ 4,526,580 |
Note 5 - Property and Equipme44
Note 5 - Property and Equipment: Property and equipment Table (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Tables/Schedules | |
Property and equipment Table | (Estimated Life) July 31, 2016 (unaudited) April 30, 2016 Office equipment (1-10 Years) $ 44,761 $ 39,800 Auto and trucks (3-10 Years) 498,159 492,620 Manufacturing equipment (2-20 Years) 5,105,932 5,240,451 Buildings (5-30 Years) 8,435,733 8,667,889 Construction in process 1,004,559 583,954 Gross Property and Equipment 15,089,144 15,024,714 Less: accumulated depreciation (6,041,920) (5,870,637) Property and equipment, net $ 9,047,224 $ 9,154,077 |
Note 6 - Intangible Assets_ Sch
Note 6 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Tables/Schedules | |
Schedule of Finite-Lived Intangible Assets | (Estimated Life) July 31, 2016 (unaudited) April 30, 2016 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 (1,273,602) (1,192,309) Intangible assets, net $ 352,272 $ 433,565 |
Note 7 - Land Use Rights_ Sched
Note 7 - Land Use Rights: Schedule of Other Assets, Noncurrent (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Tables/Schedules | |
Schedule of Other Assets, Noncurrent | (Estimated Life) July 31, 2016 (unaudited) April 30, 2016 Land use right (45 Years) $ 2,391,803 $ 2,455,519 Less: accumulated amortization (425,273) (422,826) Land use right, net $ 1,966,530 $ 2,032,693 |
Note 8 - Related Party Transa47
Note 8 - Related Party Transactions: Schedule of Related Party Transactions (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Tables/Schedules | |
Schedule of Related Party Transactions | Shandong Shengwang Pharmaceutical Co., Ltd. Qufu Shengwang Import and Export Co., Ltd. Total Balance due to related parties, April 30, 2016 $ 910,373 $ 366,875 $ 1,277,248 Working capital advances from related parties 914,048 286,609 1,200,657 Repayments (1,628,425) (316,813) (1,945,238) Effect of foreign currency exchange (10,027) (12,111) (22,138) Balance due to related parties, July 31, 2016 $ 185,969 $ 324,560 $ 510,529 |
Note 10 - Accounts Payable an48
Note 10 - Accounts Payable and Accrued Expenses: Schedule of Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Tables/Schedules | |
Schedule of Accounts Payable and Accrued Liabilities | Account July 31, 2016 (unaudited) April 30, 2016 Accounts payable $ 6,167,932 $ 4,869,026 Advanced from customers 220,129 10,042 Accrued salary payable 162,962 105,131 Tax payable 121,237 254,615 Deferred revenue 147,988 71,604 Other payable* 1,544,492 1,550,408 Total accounts payable and accrued expenses $ 8,364,740 $ 6,860,826 |
Note 11 -loan Payable_ Schedule
Note 11 -loan Payable: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Tables/Schedules | |
Schedule of Accounts, Notes, Loans and Financing Receivable | July 31, 2016 (unaudited) April 30, 2016 Loan from Min Wu, an employee of QufuShengren, due on October 5, 2016 with annual interest rate of 10% at October 6, 2015 $ 22,580 $ 23,175 Loan from WeidongCai, an employee of QufuShengren, due on September 21, 2016 with annual interest rate of 10% at September 22, 2015 126,450 129,778 Loan from Jianjun Yan, non-related individual, due on October 6, 2015 with annual interest rate of 10% at October 7, 2014, which renewed on October 7, 2015 978,480 1,004,232 Multiple loans from Jianjun Yan, non-related individual, due from October 5, 2016 through April 9, 2017, with annual interest rate of 10%, which were obtained during October 6, 2015 through April 10, 2016 870,096 892,995 Multiple loans from Jianjun Yan, non-related individual, due from June 19, 2017 through July 11, 2017, with annual interest rate of 10%, which were obtained during June 20, 2016 through July 12, 2016 60,215 0 Loan from Junzhen Zhang, non-related individual, due on October 5, 2016, with annual interest rate of 10% at October 6, 2015 22,580 23,175 Loan from Jian Chen, non-related individual, due on January 26, 2017, with annual interest rate of 10% at January 27, 2016 109,891 112,783 Loan from Qing Kong, non-related individual, due on March 6, 2017, with annual interest rate of 10% at March 7, 2016 60,214 61,799 Loan from Guihai Chen, non-related individual, due on March 10, 2017, with annual interest rate of 10% at March 11, 2016 15,054 15,450 Total $ 2,265,560 $ 2,263,387 |
Note 13 - Segment Information_
Note 13 - Segment Information: Schedule of Segment Reporting Information, by Segment (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended July 31, 2016 2015 Revenues: Chinese medicine - third party $ 674,007 $ 544,173 Chinese medicine - related party 0 0 Total Chinese medicine $ 674,007 $ 544,173 Stevioside - third party 2,200,772 1,358,504 Stevioside - related party 1,513,738 3,075,656 Total Stevioside 3,714,510 4,434,160 Total segment and consolidated revenues $ 4,388,517 $ 4,978,333 Interest income (expense): Chinese medicine $ 54 $ 69 Stevioside (81,388) (78,425) Corporate and other 0 0 Total segment and consolidated interest expense $ (81,334) $ (78,356) Depreciation and amortization: Chinese medicine $ 75,193 $ 92,039 Stevioside 343,531 390,230 Corporate and other 0 0 Total segment and consolidated depreciation and amortization $ 418,724 $ 482,269 Income (loss) before income taxes: Chinese medicine $ 41,649 $ (24,194) Stevioside (458,799) (26,046) Corporate and other (416,017) (183,569) Total consolidated loss before income taxes $ (833,167) $ (233,809) |
Note 13 - Segment Information51
Note 13 - Segment Information: SEGMENT ASSETS Table (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Tables/Schedules | |
SEGMENT ASSETS Table | July 31, 2016 April 30, 2016 Segment tangible assets: Chinese medicine $ 1,513,337 $ 1,614,531 Stevioside 7,533,887 7,539,546 Corporate and other 0 0 Total consolidated assets $ 9,047,224 $ 9,154,077 |
Note 15 - Concentrations and 52
Note 15 - Concentrations and Credit Risk: Schedule of Revenue by Major Customers by Reporting Segments (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Tables/Schedules | |
Schedule of Revenue by Major Customers by Reporting Segments | Net Sales For the three months ended July 31, 2016 For the three months ended July 31, 2015 Chinese Medicine Stevioside Chinese Medicine Stevioside QufuShengwang Import and Export Trade Co., Ltd(1) - 34.3% - 69.4% Shandong Yidatong Enterprises Co., Ltd - 19.1% - - Guangdong Tengjun Veterinary Medicine Co., Ltd - - 12.5% - Beijing HaomiaoHuifeng Pharmaceutical Co., Ltd - - 11.3% - Total - 53.4% 23.8% 69.4% |
Note 15 - Concentrations and 53
Note 15 - Concentrations and Credit Risk: Vendor Concentrations Table (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Tables/Schedules | |
Vendor Concentrations Table | Net Purchases For the three months ended July 31, 2016 For the three months ended July 31, 2015 Chinese Medicine Stevioside Chinese Medicine Stevioside Gansu Fanzhi Biology Technology Co.,Ltd - - 15.1% - Qufu Electricity Corp. - - 13.3% - SishuiRuijin Pharmaceutical Co., Ltd - - 27.2% - AnguoQiyetang Pharmaceutical Co., Ltd - - 10.3% - DongtaiYandun Stevia Corp. - - - 23.8 DongtaiJiangrongfeng Stevia Corp. - 26.1% - - Gansu Puhua Stevia Develop Co., Ltd - 13.1% - 11.2 ZhuchengHaotian Pharmaceutical Co., Ltd - 18.6% - 11.9 Total - 57.8% 65.9% 46.9 |
Note 2 - Summary of Significa54
Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
Cash and cash equivalents held in PRC | $ 174,462 | $ 900,071 |
Cash and cash equivalents held in USA | $ 450 | $ 0 |
Note 2 - Summary of Significa55
Note 2 - Summary of Significant Accounting Policies: Accounts Receivable (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2015 |
Details | ||
Allowance for Doubtful Accounts Receivable | $ 1,347,009 | $ 1,202,610 |
Note 2 - Summary of Significa56
Note 2 - Summary of Significant Accounting Policies: Inventories (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
Reserve for obsolete or slow-moving inventories | $ 104,898 | $ 107,658 |
Note 2 - Summary of Significa57
Note 2 - Summary of Significant Accounting Policies: Long-lived Assets (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
DispositionLossOfLongLivedAssets | $ 0 | $ 1,622,762 |
Note 2 - Summary of Significa58
Note 2 - Summary of Significant Accounting Policies: Taxes Payable (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
VAT payable | $ 121,378 | $ 254,759 |
Note 2 - Summary of Significa59
Note 2 - Summary of Significant Accounting Policies: Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Details | ||
Net loss attributable to Sunwin Stevia International, Inc. | $ (833,167) | $ (234,845) |
Numerator for basic EPS, loss applicable to common stock holders | $ (833,167) | $ (234,845) |
Weighted Average Number of Shares Issued, Basic | 182,066,546 | 174,687,151 |
Weighted Average Number of Shares Outstanding, Diluted | 182,066,546 | 174,687,151 |
Net Loss per share-basic and diluted | $ (0.005) | $ (0.001) |
Note 2 - Summary of Significa60
Note 2 - Summary of Significant Accounting Policies: Foreign Currency Translation: Exchange rates Table (Details) | 3 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Apr. 30, 2016 | |
Details | |||
Foreign Currency Exchange Rate, Translation | 6.64 | 6.47 | |
Average exchange rates | 6.60 | 6.09 |
Note 2 - Summary of Significa61
Note 2 - Summary of Significant Accounting Policies: Concentrations of Credit Risk (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
Cash and cash equivalents held in PRC | $ 174,462 | $ 900,071 |
Note 2 - Summary of Significa62
Note 2 - Summary of Significant Accounting Policies: Research and Development (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Details | ||
Research and Development Expense | $ 39,059 | $ 11,542 |
Note 2 - Summary of Significa63
Note 2 - Summary of Significant Accounting Policies: Shipping Costs (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Details | ||
Shipping, Handling and Transportation Costs | $ 83,667 | $ 41,690 |
Note 3 - Investment in Real E64
Note 3 - Investment in Real Estate Held For Resale (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 | Aug. 25, 2011 |
Details | |||
Purchase price for apartment units held for sale | $ 2,484,799 | ||
Payment of purchase price for apartment units held for sale | $ 1,987,839 | ||
Investment in real estate held for resale | $ 0 | $ 311,467 |
Note 4 - Inventories_ Schedul65
Note 4 - Inventories: Schedule of Inventory, Current (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
Inventory, Raw Materials, Gross | $ 2,759,604 | $ 2,287,572 |
Inventory, Work in Process, Gross | 944,706 | 1,221,115 |
Inventory, Finished Goods, Gross | 2,093,259 | 1,125,551 |
Inventory, Gross | 5,797,569 | 4,634,238 |
Reserve for obsolete inventory | (104,898) | (107,658) |
Inventories, net | $ 5,692,671 | $ 4,526,580 |
Note 5 - Property and Equipme66
Note 5 - Property and Equipment: Property and equipment Table (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
Office Equipment | $ 44,761 | $ 39,800 |
Auto and Trucks | 498,159 | 492,620 |
Machinery and Equipment, Gross | 5,105,932 | 5,240,451 |
Buildings and Improvements, Gross | 8,435,733 | 8,667,889 |
Construction in Progress, Gross | 1,004,559 | 583,954 |
Property, Plant and Equipment, Gross | 15,089,144 | 15,024,714 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (6,041,920) | (5,870,637) |
Property and equipment, net | $ 9,047,224 | $ 9,154,077 |
Note 5 - Property and Equipme67
Note 5 - Property and Equipment (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Details | ||
Total Depreciation Expense | $ 324,049 | $ 386,484 |
Cost of revenues | 252,239 | 281,871 |
General and administrative expenses | $ 71,810 | $ 104,613 |
Note 6 - Intangible Assets (Det
Note 6 - Intangible Assets (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | 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 intangible assets | $ 81,293 | $ 81,293 |
Note 6 - Intangible Assets_ S69
Note 6 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
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 | (1,273,602) | (1,192,309) |
Finite-Lived Intangible Assets, Net | $ 352,272 | $ 433,565 |
Note 7 - Land Use Rights_ Sch70
Note 7 - Land Use Rights: Schedule of Other Assets, Noncurrent (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
Land use right, gross | $ 2,391,803 | $ 2,455,519 |
Accumulated amortization of Land Use Rights | (425,273) | (422,826) |
LandUseRight | $ 1,966,530 | $ 2,032,693 |
Note 7 - Land Use Rights (Detai
Note 7 - Land Use Rights (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Details | ||
Amortization expense - Land use rights | $ 13,382 | $ 14,492 |
Note 8 - Related Party Transa72
Note 8 - Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Apr. 30, 2016 | |
Details | |||
Accounts receivable - related party Qufu Shengwang | $ 3,277,616 | $ 3,632,876 | |
Revenue - related party Qufu Shengwang | 1,513,738 | $ 3,075,656 | |
Advances from related parties | 1,200,657 | 2,175,574 | |
Repaid to related parties | 1,945,238 | 2,579,703 | |
Interest Paid, Net | $ 25,645 | $ 41,466 |
Note 8 - Related Party Transa73
Note 8 - Related Party Transactions: Schedule of Related Party Transactions (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
Due to Pharmaceutical Corporation | $ 185,969 | $ 910,373 |
Due to Qufu Shengwang | 324,560 | 366,875 |
Total Due to Related Party | 510,529 | $ 1,277,248 |
Working capital advances from related parties - Shangdong | 914,048 | |
Working capital advances from related parties - Qufu | 286,609 | |
Working capital advances from related parties | 1,200,657 | |
Repayments from related parties - Shandong | (1,628,425) | |
Repayments from related parties - Qufu | (316,813) | |
Repayments from related parties | (1,945,238) | |
Effect of foreign currency exchange - Shangdong | (10,027) | |
Effect of foreign currency exchange - Qufu | (12,111) | |
Effect of foreign currency exchange | $ (22,138) |
Note 9 - Prepaid Expenses and74
Note 9 - Prepaid Expenses and Other Current Assets (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
Prepaid expenses and other current assets | $ 3,015,322 | $ 2,787,371 |
Prepayments to suppliers | 1,593,300 | 1,220,523 |
Prepayment for employees' stock-based compensation | 1,226,668 | 1,371,667 |
Business related employees' advances | $ 195,354 | $ 195,181 |
Note 10 - Accounts Payable an75
Note 10 - Accounts Payable and Accrued Expenses: Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
Accounts Payable | $ 6,167,932 | $ 4,869,026 |
Customer Advances, Current | 220,129 | 10,042 |
Accrued salary payable | 162,962 | 105,131 |
Taxes Payable, Current | 121,237 | 254,615 |
Deferred Revenue | 147,988 | 71,604 |
Accounts Payable, Other, Current | 1,544,492 | 1,550,408 |
Accounts Payable and Accrued Liabilities, Current | $ 8,364,740 | $ 6,860,826 |
Note 10 - Accounts Payable an76
Note 10 - Accounts Payable and Accrued Expenses (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
Commission payable | $ 65,947 | $ 67,683 |
General liability, worker's compensation, and medical insurance payable | 438,320 | 439,706 |
Union and education fees payable | 291,060 | 297,728 |
Consulting fee payable | 266,666 | 248,748 |
Interest payables for short-term loans | 145,699 | 72,731 |
Advanced from the employees | 219,053 | 131,282 |
Other miscellaneous payables | $ 117,747 | 213,736 |
Accrued R&D payable | $ 78,794 |
Note 11 -loan Payable_ Schedu77
Note 11 -loan Payable: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
Loan from Min Wu at 10% | $ 22,580 | $ 23,175 |
Loan from Weidong Cai at 10% | 126,450 | 129,778 |
Loan from Jianjun Yan at 10% | 978,480 | 1,004,232 |
Multiple loans from Jianjun Yan | 870,096 | 892,995 |
Multiple loans from Jianjun Yan July 2016 | 60,215 | 0 |
Loan from Junzhen Zhang | 22,580 | 23,175 |
Loan from Jian Chen | 109,891 | 112,783 |
Loan from Qing Kong | 60,214 | 61,799 |
Loan from Guihai Chen | $ 15,054 | $ 15,450 |
Note 11 -loan Payable (Details)
Note 11 -loan Payable (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Details | ||
Interest expense related to short-term loans | $ 55,957 | $ 37,379 |
Note 12 - Stockholders' Equity
Note 12 - Stockholders' Equity (Details) - shares | Jul. 31, 2016 | Apr. 30, 2016 | Apr. 27, 2016 | Jan. 14, 2016 | Dec. 01, 2015 | Aug. 11, 2015 | May 06, 2015 |
Details | |||||||
Common stock authorized to issue | 200,000,000 | ||||||
Shares, Outstanding | 199,632,803 | 199,632,803 | |||||
Shares, Issued | 1,000,000 | 250,000 | 23,000,000 | 500,000 | 1,000,000 |
Note 13 - Segment Information80
Note 13 - Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Details | ||
Net revenues - Chinese Medicines | $ 674,007 | $ 544,173 |
Net revenues - Chinese medicine - related party | 0 | 0 |
Net revenues - Chinese medicine - Total | 674,007 | 544,173 |
Net revenues - Stevioside - third party | 2,200,772 | 1,358,504 |
Net revenues - Stevioside - related party | 1,513,738 | 3,075,656 |
Net revenues - Stevioside - Total | 3,714,510 | 4,434,160 |
Net revenues - Total segment and consolidated revenues | 4,388,517 | 4,978,333 |
Interest income - Chinese Medicines | 54 | 69 |
Interest income - Stevioside | (81,388) | (78,425) |
Interest income - Total segment and consolidated interest expense | (81,334) | (78,356) |
Depreciation and amortization - Chinese Medicines | 75,193 | 92,039 |
Depreciation and amortization - Stevioside | 343,531 | 390,230 |
Depreciation and amortization - Corporate and other | 0 | 0 |
Depreciation and amortization - Total segment and consolidated depreciation and amortization | 418,724 | 482,269 |
Loss before taxes and noncontrolling interest - Chinese Medicines | 41,649 | (24,194) |
Loss before taxes and noncontrolling interest - Stevioside | (458,799) | (26,046) |
Loss before taxes and noncontrolling interest - Corporate and other | (416,017) | (183,569) |
Income (loss) before income taxes - Total segment and consolidated depreciation and amortization | $ (833,167) | $ (233,809) |
Note 13 - Segment Information81
Note 13 - Segment Information: SEGMENT ASSETS Table (Details) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Details | ||
Segment assets- Chinese Medicines | $ 1,513,337 | $ 1,614,531 |
Segment assets-Stevioside | 7,533,887 | 7,539,546 |
Segment assets-Corporate and other | 0 | 0 |
Segment assets-Total consolidated assets | $ 9,047,224 | $ 9,154,077 |
Note 14 - Commitments and Con82
Note 14 - Commitments and Contingencies (Details) | Aug. 25, 2011USD ($) |
Details | |
Purchase price for apartment units held for sale | $ 2,484,799 |
Payment of purchase price for apartment units held for sale | $ 1,987,839 |