Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
Jan. 31, 2018 | Mar. 16, 2018 | Oct. 31, 2016 | |
Document and Entity Information: | |||
Entity Registrant Name | SUNWIN STEVIA INTERNATIONAL, INC. | ||
Document Type | 10-Q | ||
Document Period End Date | Jan. 31, 2018 | ||
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 | $ 13,406,525 | ||
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 | 2,018 | ||
Document Fiscal Period Focus | Q3 |
SUNWIN STEVIA INTERNATIONAL, IN
SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 151,129 | $ 51,116 |
Accounts receivable, net of allowance for doubtful accounts of $1,111,599 and $1,182,632, respectively | 2,872,554 | 2,243,621 |
Accounts receivable - related party | 2,479,670 | 339,270 |
Inventories, net | 12,105,911 | 8,816,473 |
Prepaid expenses and other current assets | 3,140,458 | 4,729,865 |
Total Current Assets | 20,749,722 | 16,180,345 |
Property and equipment, net | 8,450,333 | 8,241,197 |
Intangible assets, net | 108,390 | |
Land use rights, net | 1,994,687 | 1,855,055 |
Other long-term asset | 154,956 | 856,878 |
Total Assets | 31,349,698 | 27,241,865 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 9,890,617 | 7,036,471 |
Short-term loans | 4,594,326 | 4,366,389 |
Due to related party | 2,022,032 | 125,312 |
Total Current Liabilities | 16,506,975 | 11,528,172 |
Long-term loans | 4,881,694 | 2,900,484 |
Total Liabilities | 21,388,669 | 14,428,656 |
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 January 31, 2018 and April 30, 2017, respectively | 199,633 | 199,633 |
Additional paid-in capital | 37,681,279 | 37,681,279 |
Accumulated deficit | (32,934,466) | (29,112,556) |
Accumulated other comprehensive income | 5,014,583 | 4,044,853 |
Total Stockholders' Equity | 9,961,029 | 12,813,209 |
Total Liabilities and Stockholders' Equity | $ 31,349,698 | $ 27,241,865 |
"SUNWIN STEVIA INTERNATIONAL, I
"SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Revenues: | ||||
Revenues | $ 4,734,263 | $ 4,280,956 | $ 13,234,376 | $ 10,653,073 |
Revenues - related party | 1,591,329 | 2,129,371 | 1,858,709 | 5,591,740 |
Total revenues | 6,325,592 | 6,410,327 | 15,093,085 | 16,244,813 |
Cost of revenues | 5,588,776 | 5,517,286 | 13,787,493 | 14,095,338 |
Gross profit | 736,816 | 893,041 | 1,305,592 | 2,149,475 |
Operating expenses: | ||||
Selling expenses | 592,042 | 518,153 | 1,447,692 | 1,380,363 |
General and administrative expenses | 774,387 | 904,759 | 2,513,984 | 2,878,408 |
Research and development expenses | 2,430 | 36,964 | 285,150 | 40,543 |
Loss on disposition of property and equipment | 284,351 | 283,815 | 650,654 | 393,143 |
Total operating expenses, net | 1,653,210 | 1,743,691 | 4,897,480 | 4,692,457 |
Loss from operations | (916,394) | (850,650) | (3,591,888) | (2,542,982) |
Other income (expenses): | ||||
Other income (expenses) | 195,253 | 45,224 | 156,906 | 162,874 |
Interest income | 414 | 118 | 785 | 578 |
Interest expense - related party | (25,945) | (38,207) | (71,135) | (96,320) |
Interest expense | (126,138) | (62,169) | (316,578) | (174,414) |
Total other income | 43,584 | (55,034) | (230,022) | (107,282) |
Loss before income taxes | (872,810) | (905,684) | (3,821,910) | (2,650,264) |
Net loss | (872,810) | (905,684) | (3,821,910) | (2,650,264) |
Comprehensive loss | ||||
Net loss | (872,810) | (905,684) | (3,821,910) | (2,650,264) |
Foreign currency translation adjustment | 532,476 | (196,829) | 969,730 | (834,188) |
Total Comprehensive loss | $ (340,334) | $ (1,102,513) | $ (2,852,180) | $ (3,484,452) |
Net loss per common share: | ||||
Net Loss per share-basic and diluted | $ 0 | $ 0 | $ (0.02) | $ (0.01) |
Weighted average common shares outstanding - basic and diluted | 199,632,803 | 182,066,546 | 199,632,803 | 182,066,546 |
SUNWIN STEVIA INTERNATIONAL, I4
SUNWIN STEVIA INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (3,821,910) | $ (2,650,264) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation expense | 1,054,856 | 992,590 |
Amortization of intangible assets | 108,390 | 243,880 |
Amortization of land use right | 39,736 | 39,398 |
Loss on disposition of property and equipment | 285,150 | 40,543 |
Allowance for doubtful accounts | 55,145 | |
Recovery of bad debt reserve | (216,910) | |
Stock issued for employee compensation | 920,001 | 920,001 |
Stock issued for services | 108,750 | |
Loss from sales of real estate investment held for resale | 2,410 | |
Changes in operating assets and liabilities: | ||
Accounts receivable and notes receivable | (261,918) | (877,513) |
Accounts receivable - related party | (1,988,620) | (47,363) |
Inventories | (2,301,254) | (3,324,235) |
Prepaid expenses and other current assets | 1,715,157 | (304,584) |
Accounts payable and accrued expenses | 2,062,513 | 3,968,486 |
Taxes payable | (37,968) | (144,194) |
NET CASH USED IN OPERATING ACTIVITIES | (2,442,777) | (976,950) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (707,890) | (750,583) |
Proceeds from disposal of equipment | 1,505 | |
Proceeds from disposal of real estate investment | 297,513 | |
NET CASH USED IN INVESTING ACTIVITIES | (706,385) | (453,070) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from loans | 1,665,342 | 909,302 |
Repayment of short-term loan | (375,077) | |
Advance due from related party | 5,068,601 | 2,595,313 |
Repayment of related party advances | (3,251,990) | (2,768,284) |
NET CASH USED IN FINANCING ACTIVITIES | 3,106,876 | 736,331 |
EFFECT OF EXCHANGE RATE ON CASH | 142,299 | (36,379) |
NET CHANGE IN CASH | 100,013 | (730,068) |
Cash | 51,116 | 900,071 |
Cash | 151,129 | 170,003 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||
Cash paid for income taxes | 1,859 | |
Cash paid for interest | 38,484 | 96,320 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Property and equipments acquired on credit as payable | 28,024 | $ 451,786 |
Accrued interests enrolled into debts | $ 132,747 |
Note 1 - Organization and Opera
Note 1 - Organization and Operations | 9 Months Ended |
Jan. 31, 2018 | |
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 subsidiary wholly owned by Sunwin Stevia International; - Qufu Shengren Pharmaceutical Co., Ltd. ("Qufu Shengren"), a subsidiary wholly owned by Qufu Natural Green; - Qufu Shengwang Stevia Biology and Science Co., Ltd. ("Qufu Shengwang"), a subsidiary wholly owned by Qufu Natural Green; - Sunwin Tech Group, Inc. ("Sunwin Tech"), a subsidiary wholly owned by Sunwin Stevia International; and - Sunwin USA, LLC. ("Sunwin USA"), a subsidiary 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. Qufu Shengwang In fiscal 2009, Qufu Natural Green acquired a 60% interest in Qufu Shengwang from its shareholder, Shandong Group, for $4,026,851. The purchase price represented 60% of the value of the net tangible assets of Qufu Shengwang as of April 30, 2008. Shandong Group is owned by Laiwang Zhang, our President and Chairman of the Board of Directors. Qufu Shengwang manufactures and sells stevia - based fertilizers and feed additives. On September 30, 2011, Qufu Natural Green purchased the 40% equity interest in Qufu Shengwang owned by our Korean partner, Korea Stevia Company, Limited, for $626,125 in cash, and as a result of this repurchase transaction we now own 100% equity interest in all of the net assets of our subsidiary Qufu Shengwang. On July 1, 2012, Qufu Shengwang entered a Cooperation Agreement with Hegeng (Beijing) Organic Farm Technology Co, Ltd. ("Hegeng"), a Chinese manufacturer and distributor of bio-fertilizers and pesticides, to jointly develop bio-bacterial fertilizers based on the residues from our stevia extraction. Under the Cooperation Agreement, Hegeng provides strain and formula that we apply to the stevia residues to produce bio-bacterial fertilizers in the current facility of Qufu Shengwang. The bio-bacterial fertilizers will be distributed under Qufu Shengwang's name. No additional investment in the facility would be required. During the third quarter of fiscal 2013, we decided to suspend the agreement with Hegeng due to a lack of sales since the reaction to the products was lower than anticipated in fertilizer market. Currently we plan to use these assets to manufacture a variety of traditional Chinese medicine formula extracts. We started production in last quarter of fiscal 2014. Qufu Shengren In fiscal 2009, Qufu Natural Green acquired Qufu Shengren for $3,097,242. The purchase price was equal to the value of the assets of Qufu Shengren as determined by an independent asset appraisal in accordance with asset appraisal principles in the PRC. Prior to being acquired by us, Qufu Shengren was engaged in the production and distribution of bulk drugs and pharmaceuticals. Subsequent to the acquisition, Qufu Shengren produces and distributes steviosides with a full range of grades from rebaudioside-A 10 to 99. Sunwin USA In fiscal 2009, we entered into a distribution agreement with WILD Flavors to assist our 55% owned subsidiary, Sunwin USA, in the marketing and worldwide distribution of our stevioside-based sweetener products and issued WILD Flavors a 45% interest in Sunwin USA. On August 8, 2012, we entered into an Exchange Agreement with WILD Flavors pursuant to which we purchased its 45% membership interest in Sunwin USA for an aggregate consideration of approximately $1,625,874, which includes the issuance of 7,666,666 shares of our common stock valued at approximately $1,533,333 and a cash payment of $92,541. The transaction closed on August 20, 2012. On August 22, 2012, we issued 7,666,666 shares of our common stock and paid $92,541 cash to WILD Flavors. 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. In fiscal year 2018, WILD is still one of our customers continuing to purchase enzyme treated products from us. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended |
Jan. 31, 2018 | |
Notes | |
Note 2 - Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial reporting. The accompanying unaudited condensed consolidated financial statements for the interim periods presented are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the periods presented. Certain financial statement amounts relating to prior periods have been reclassified to conform to the current period presentation. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements should be read in conjunction with the financial statements and footnotes for the year ended April 30, 2017 included in our Form 10-K as filed with the SEC. The results of operations and cash flows for the nine months ended January 31, 2018 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, 2017 contained herein has been derived from the audited consolidated financial statements as of April 30, 2017, 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; - Qufu Shengren; - Qufu Shengwang; - Sunwin Tech; and - Sunwin USA USE OF ESTIMATES The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the allowance for doubtful accounts, the allowance for obsolete inventory, the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets, and the value of stock-based compensation. Actual results could differ from those estimates. CASH AND CASH EQUIVALENTS We consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash and equivalents. As of January 31, 2018, we held $150,344 of our cash and cash equivalents with commercial banking institutions in the PRC, and $785 with banks in the United States. As of April 30, 2017, we held $30,781 of our cash and cash equivalents with commercial banking institution in PRC, and $20,335 in the United States. In China, there is no equivalent federal deposit insurance as in the United States, so the amounts held in banks in China are not insured. We have not experienced any losses in such bank accounts through January 31, 2018. 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. At January 31, 2018 and April 30, 2017, the allowance for doubtful accounts was $1,111,599 and $1,182,632, respectively. We had recovery of bad debt for $216,910 and recognized bad debt expenses of $55,145 for the nine months ended January 31, 2018 and 2017, respectively. INVENTORIES Inventories, consisting of raw materials, work in process, and finished goods related to our products, are stated at the lower of cost or market (estimated net realizable value) utilizing the weighted average method. An allowance is established when management determines that certain inventories may not be saleable. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record reserves for the difference between the cost and the market value. These reserves are recorded based on estimates. At January 31, 2018 and April 30, 2017, the Company recorded a reserve for obsolete or slow-moving inventories of $178,776 and $163,048, 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 twenty years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. In accordance with paragraph 360-10-35-17 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC"), we examine the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. 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 loss on disposition of property and equipment of $285,150 and $122,285 at January 31, 2018 and April 30, 2017, respectively. We received $1,505 and $0 in cash proceeds from disposal of equipment for the nine months ended January 31, 2018 and 2017, 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 January 31, 2018 and April 30, 2017 amounted to $92,568 and $121,127, 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 January 31, 2018, 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 loss per common share is computed by dividing loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of ours, subject to anti-dilution limitations. The following table presents a reconciliation of basic and diluted net income per common share: Three Months Ended January 31, Nine Months Ended January 31, Numerator: 2018 2017 2018 2017 Net loss attributable to Sunwin Stevia International, Inc. $ (872,810) $ (905,684) $ (3,821,910) $ (2,650,264) Numerator for basic EPS, loss applicable to common stock holders $ (872,810) $ (905,684) $ (3,821,910) $ (2,650,264) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 199,632,803 182,066,546 199,632,803 182,066,546 Stock awards, options, and warrants 0 0 0 0 Denominator for diluted earnings per share - adjusted weighted average outstanding average number of common shares outstanding 199,632,803 182,066,546 199,632,803 182,066,546 Basic and diluted loss per common share: Loss per share - basic and diluted $ (0.00) $ (0.00) $ (0.02) $ (0.01) FOREIGN CURRENCY TRANSLATION Transactions and balances originally denominated in U.S. dollars are presented at their original amounts. Transactions and balances in other currencies are converted into U.S. dollars in accordance with ASC Section 830-20-35 and are included in determining net income or loss. The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company's operating subsidiaries is the Chinese Renminbi ("RMB"). In accordance with ASC 830-20-35, the consolidated financial statements were translated into United States dollars using balance sheet date rates of exchange for assets and liabilities, and average rates of exchange for the period for the income statements and cash flows. Equity accounts were stated at their historical rate. Net gains and losses resulting from foreign exchange transactions are included in the consolidated statements of operations. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in other comprehensive income or loss. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People's Bank of China (the "PBOC") or other institutions authorized to buy and sell foreign exchange. The exchange rate adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand. Translation of amounts from RMB into United States dollars ("$") was made at the following exchange rates for the respective periods: As of January 31, 2018 RMB 6.29 to $1.00 As of April 30, 2017 RMB 6.90 to $1.00 Nine months ended January 31, 2018 RMB 6.67 to $1.00 Nine months ended January 31, 2017 RMB 6.72 to $1.00 COMPREHENSIVE LOSS Comprehensive loss is comprised of net loss and all changes to the statements of stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive loss for the nine months ended January 31, 2018 and 2017 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 January 31, 2018, we had $150,344 of cash balance held in PRC banks, which is not insured. We have not experienced any losses in such accounts through January 31, 2018. 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. 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 $284,351 and $283,815 for the three months ended January 31, 2018 and 2017, and $650,654 and $393,143 for the nine months ended January 31, 2018 and 2017, respectively. SHIPPING COSTS Shipping costs are included in selling expenses and totaled $82,237 and $91,522 for the three months ended January 31, 2018 and 2017, and $244,488 and $342,913 for the nine months ended January 31, 2018 and 2017, 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 January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, in an effort to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments of this ASU are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of this guidance is not expected to have a material impact on our financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from contracts with Customers (Topic 606)" and issued subsequent amendments to the initial guidance or implementation guidance between August 2015 and November 2017 within ASU 2015-04, ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-13, and ASU 2017-14 (collectively, including ASU 2014-09, "ASC 606"). ASC 606 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. ASU 606 will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. ASU 606 also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchanged for those goods or services. ASC 606 is effective for public entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The amendments may be applied retrospectively to each prior period (full retrospective) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective). The provisions of this new guidance are effective as of the beginning of the Company's first quarter of fiscal year 2019, May 1, 2018. The Company is currently evaluating the transition method to be used and the potential impact of this standard on its consolidated financial statements. The Company intends to adopt ASU 2014-09 effective May 1, 2018 and apply the modified retrospective approach. 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. GOING CONCERN Our unaudited condensed consolidated financial statements have been prepared assuming we will continue as a going concern. The Company has incurred recurring losses with a net loss of approximately $873,000 and $3,822,000 for the three and nine months ended January 31, 2018, respectively, and has a significant accumulated deficit of $33.0 million at January 31, 2018. The Company's cash balance and revenues generated are not currently sufficient and cannot be projected to cover operating expenses for the next twelve months from the date of this report. These factors raise doubt as to the ability of the Company to continue as a going concern. Management's plans include attempting to improve its business profitability, its ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working capital funds through debt and equity financings, and restructure on-going operations to eliminate inefficiencies to raise cash balance in order to meet its anticipated cash requirements for the next twelve months from the date of this report. Management intends to make every effort to improve its current sales force as to further develop and expand the international markets for its new products as well as continuing with the current sources of funds to meet working capital needs on as needed basis. There can be no assurance that these plans and arrangements will be successful. The ability of the Company to continue as a going concern is dependent upon its ability to achieve profitable operations and raise additional capital. The accompanying unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amount or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern. |
Note 3 - Inventories
Note 3 - Inventories | 9 Months Ended |
Jan. 31, 2018 | |
Notes | |
Note 3 - Inventories | NOTE 3 - INVENTORIES At January 31, 2018 and April 30, 2017, inventories consisted of the following: January 31, 2018 (unaudited) April 30, 2017 Raw materials $ 7,406,466 $ 4,087,036 Work in process 1,740,132 1,802,782 Finished goods 3,138,089 3,089,703 Inventories, gross 12,284,687 8,979,521 Less: reserve for obsolete inventory (178,776) (163,048) Inventories, net $ 12,105,911 $ 8,816,473 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment | 9 Months Ended |
Jan. 31, 2018 | |
Notes | |
Note 4 - Property and Equipment | NOTE 4 - PROPERTY AND EQUIPMENT At January 31, 2018 and April 30, 2017, property and equipment consisted of the following: (Estimated Life ) January 31, 2018 (unaudited) April 30, 2017 Office equipment (3-10 Years) $ 70,062 $ 67,091 Auto and trucks (2-10 Years) 516,187 446,968 Manufacturing equipment (2-20 Years) 5,016,056 5,109,816 Buildings (5-20 Years) 9,243,773 8,136,080 Construction in process 528,851 815,471 Gross Property and Equipment 15,374,929 14,575,426 Less: accumulated depreciation (6,924,596) (6,334,229) Property and equipment, net $ 8,450,333 $ 8,241,197 For the three months ended January 31, 2018 and 2017, depreciation expense totaled $320,878 and $332,714, of which $274,270 and $261,775 were included in cost of revenues, respectively, and of which $46,608 and $70,939 were included in general and administrative expenses, respectively. For the nine months ended January 31, 2018 and 2017, depreciation expense totaled $1,054,856 and $992,590, of which $897,938 and $763,806 was included in cost of revenues, respectively, and of which $156,918 and $228,784 were 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 5 - Land Use Rights
Note 5 - Land Use Rights | 9 Months Ended |
Jan. 31, 2018 | |
Notes | |
Note 5 - Land Use Rights | NOTE 5 - LAND USE RIGHTS Land use right consisted of the following: (Estimated Life) January 31, 2018 (unaudited) April 30, 2017 Land use right (45 Years) $ 2,528,138 $ 2,303,168 Less: accumulated amortization (533,451) (448,113) Land use right, net $ 1,994,687 $ 1,855,055 In conjunction with our acquisition of Qufu Shengwang, we acquired land use rights for properties located in the PRC until March 14, 2054. For the three month periods ended January 31, 2018 and 2017, amortization expense related to land use rights amounted to $13,471 and $12,812, respectively. For the nine month periods ended January 31, 2018 and 2017, amortization expense amounted to $39,736 and $39,398. |
Note 6 - Related Party Transact
Note 6 - Related Party Transactions | 9 Months Ended |
Jan. 31, 2018 | |
Notes | |
Note 6 - Related Party Transactions | NOTE 6 - RELATED PARTY TRANSACTIONS Accounts receivable - related party and revenue - related party On January 31, 2018 and April 30, 2017, we reported $2,479,670 and $339,270 in accounts receivable - related party, respectively, related to sales of products to Qufu Shengwang Import and Export Co., Ltd. ("Qufu Shengwang Import and Export"), a Chinese entity owned by our Chairman, Mr. Laiwang Zhang. For the three months ended January 31, 2018 and 2017, we had revenue - related party of $1,591,329 and $2,129,371, respectively. For the nine months ended January 31, 2018 and 2017, we had revenue - related party of $1,858,709 and $5,591,740, respectively, from Qufu Shengwang Import and Export. 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 nine months ended January 31, 2018 and 2017, we received advances from related parties for working capital totaled $5,068,601 and $2,595,313, respectively, and we repaid to related parties a total of $3,251,990 and $2,768,284, respectively. During the three and nine months ended January 31, 2018 and 2017, interest expense related to due to related parties amounted to $25,945 and $38,207, and $71,135 and $96,320, respectively, which were included in interest expense in the accompanying consolidated statements of operations and comprehensive loss, and in connection with the advances of $743,196 (RMB5,000,000) and $1,189,114 (RMB8,000,000) from Shangdong Shengwang Pharmaceutical Co., Ltd. ("Pharmaceutical Corporation"), a Chinese entity owned by our Chairman, Mr. Laiwang Zhang. These advances bear interest at the rate of 7.87% per annum and we have repaid one of the loans of RMB5,000,000 with its accrued interests on April 1, 2017. The other advances bear no interest and are payable on demand. On January 31, 2018, the balance we owed to Pharmaceutical Corporation, Qufu Shengwang Import and Export, Mr. Weidong Chai, a management member of Qufu Shengren Pharmaceutical Co., Ltd., and Mr. Laiwang Zhang is $1,336,203, $126,676, $161,621 and $397,532, respectively. On April 30, 2017, the balance we owed to Qufu Shengwang Import and Export and Mr. Weidong Chai totaled $21,878 and $134,002, respectively, the balance due from Pharmaceutical Corporation was $30,568, which was repaid on July 28, 2017. On January 31, 2018 and April 30, 2017, the balance of due to (from) related parties consisted of the following: Shandong Shengwang Pharmaceutical Co., Ltd. Qufu Shengwang Import and Export Co., Ltd. Weidong Chai Laiwang Zhang Total Balance due to related parties, April 30, 2017 $ (30,568) $ 21,878 $ 134,002 $ 0 $ 125,312 Working capital advances from related parties 4,191,461 465,863 13,745 397,532 5,068,601 Repayments (2,865,717) (386,273) 0 0 (3,251,990) Effect of foreign currency exchange 41,027 25,208 13,874 0 80,109 Balance due to related parties, January 31, 2018 $ 1,336,203 $ 126,676 $ 161,621 $ 397,532 $ 2,022,032 |
Note 7 - Prepaid Expenses and O
Note 7 - Prepaid Expenses and Other Current Assets | 9 Months Ended |
Jan. 31, 2018 | |
Notes | |
Note 7 - Prepaid Expenses and Other Current Assets | NOTE 7 - PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets on January 31, 2018 and April 30, 2017 totaled $3,140,458 and $4,729,865, respectively. As of January 31, 2018, prepaid expenses and other current assets includes $1,799,838 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us, $1,022,220 prepayment for employees' stock-based compensation and $318,400 for business related employees' advances. As of April 30, 2017, prepaid expenses and other current assets includes $3,286,808 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 for shares issued, and $216,389 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 $920,001, $1,226,668 and $511,111 as stock-based compensation expenses during the nine months ended January 31, 2018, fiscal year ended April 30, 2017 and fiscal year ended April 30, 2016, respectively. We also have recorded the remaining balance of the stock-based compensation of $1,022,220 as prepaid compensation at January 31, 2018. During the third quarter of fiscal 2013, Qufu Shengwang paid Qufu Public Auction Center (the "Center") $618,758 as deposit for renewing the land use right. The deposit is required for the Center to appraise the land use right, which we do not know when we can receive the remaining refund. We received a total refund of $463,802 as of January 31, 2018 and the remaining balance of $154,956 and $154,956 has been classified to other long-term asset at January 31, 2018 and April 30, 2017, respectively. |
Note 8 - Accounts Payable and A
Note 8 - Accounts Payable and Accrued Expenses | 9 Months Ended |
Jan. 31, 2018 | |
Notes | |
Note 8 - Accounts Payable and Accrued Expenses | NOTE 8 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses included the following as of January 31, 2018 and April 30, 2017: Account January 31, 2018 (unaudited) April 30, 2017 Accounts payable $ 6,623,798 $ 5,096,599 Advanced from customers 177,666 40,900 Accrued salary payable 359,610 160,244 Tax payable 92,568 121,127 Deferred revenue 25,719 82,581 Other payable* 2,611,256 1,535,020 Total accounts payable and accrued expenses $ 9,890,617 $ 7,036,471 On January 31, 2018, other payables consists of commission payable of $201,310, general liability, worker's compensation, and medical insurance payable of $575,687, consulting fee payable of $209,905, union and education fees payable of $297,754, interest payables for short-term loans of $521,012, advanced from the employees of $602,037 and other miscellaneous payables of $203,551. On April 30, 2017, other payables consists of commission payable of $133,712, general liability, worker's compensation, and medical insurance payable of $465,505, consulting fee payable of $266,852, union and education fees payable of $280,404, interest payables for short-term loans of $213,153, advanced from the employees of $172,435 and other miscellaneous payables of $2,959. |
Note 10 - Segment Information
Note 10 - Segment Information | 9 Months Ended |
Jan. 31, 2018 | |
Notes | |
Note 10 - Segment Information | NOTE 10 - SEGMENT INFORMATION The following information is presented in accordance with ASC Topic 280, "Segment Reporting", for the three months ended January 31, 2018 and 2017; we operated in three reportable business segments - (1) natural sweetener (stevioside), (2) traditional Chinese medicines and (3) corporate and other. Our reportable segments are strategic business units that offer different products and are managed separately based on the fundamental differences in their operations. Condensed financial information with respect to these reportable business segments for the three and nine months ended January 31, 2018 and 2017 is as follows: Three Months Ended January 31, Nine Months Ended January 31, 2018 2017 2018 2017 Revenues: Chinese medicine - third party $ 675,927 $ 859,933 $ 2,099,147 $ 2,240,055 Chinese medicine - related party 0 0 0 0 Total Chinese medicine 675,927 859,933 2,099,147 2,240,055 Stevioside - third party 4,058,336 3,421,023 11,135,229 8,413,018 Stevioside - related party 1,591,329 2,129,371 1,858,709 5,591,740 Total Stevioside 5,649,665 5,550,394 12,993,938 14,004,758 Total segment and consolidated revenues $ 6,325,592 $ 6,410,327 $ 15,093,085 $ 16,244,813 Interest income (expense): Chinese medicine $ 386 $ 105 $ 742 $ 178 Stevioside (152,055) (100,363) (387,670) (270,334) Total segment and consolidated interest expense $ (151,669) $ (100,258) $ (386,928) $ (270,156) Depreciation and amortization: Chinese medicine $ 33,531 $ 70,011 $ 170,961 $ 218,060 Stevioside 300,818 356,809 1,032,021 1,057,808 Total segment and consolidated depreciation and amortization $ 334,349 $ 426,820 $ 1,202,982 $ 1,275,868 Loss before income taxes: Chinese medicine $ (6,964) $ (38,147) $ (521,873) $ (188,043 Stevioside (551,179) (508,840) (2,278,166) (1,336,510 Corporate and other (314,667) (358,697) (1,021,871) (1,125,711 Total consolidated loss before income taxes $ (872,810) $ (905,684) $ (3,821,910) $ (2,650,264 January 31, 2018 April 30, 2017 Segment tangible assets: Chinese medicine $ 1,088,871 $ 1,319,227 Stevioside 7,361,462 6,921,970 Corporate and other 0 0 Total consolidated assets $ 8,450,333 $ 8,241,197 |
Note 11 - Concentrations and Cr
Note 11 - Concentrations and Credit Risk | 9 Months Ended |
Jan. 31, 2018 | |
Notes | |
Note 11 - Concentrations and Credit Risk | NOTE 11 - CONCENTRATIONS AND CREDIT RISK (i) Customer Concentrations For the three months ended January 31, 2018and 2017, customers accounting for 10% or more of the Company's revenue were as follows: Net Sales For the three months ended January 31, 2018 For the three months ended January 31, 2017 Chinese Medicine Stevioside Chinese Medicine Stevioside A (1) - 25.2% - 33.2% B - 16.5% - * Total - 41.7% - 33.2% For the nine months ended January 31, 2018 and 2017, customers accounting for 10% or more of the Company's revenue were as follows: Net Sales For the nine months ended January 31, 2018 For the nine months ended January 31, 2017 Chinese Medicine Stevioside Chinese Medicine Stevioside A (1) - 12.3% - 34.4% B - 10.6% - 14.1% Total - 22.9% - 48.5% (1) Qufu Shengwang Import and Export Co., Ltd is a related party, an entity owned by Mr. Laiwang Zhang. * This represents less than 10% of the Company's revenue for the three and nine months ended January 31, 2018 and 2017. (ii) Vendor Concentrations For the three months ended January 31, 2018 and 2017, suppliers accounting for 10% or more of the Company's purchase were as follows: Net Purchases For the three months ended January 31, 2018 For the three months ended January 31, 2017 Chinese Medicine Stevioside Chinese Medicine Stevioside A - * - 18.7 B - 11.3% - * C - * - 15.9 D - * - 13.6 Total - 11.3% - 48.2 For the nine months ended January 31, 2018 and 2017, suppliers accounting for 10% or more of the Company's purchase were as follows: Net Purchases For the nine months ended January 31, 2018 For the nine months ended January 31, 2017 Chinese Medicine Stevioside Chinese Medicine Stevioside A - 12.7% - 13.0% B - 14.7% - * C - * - 21.3% D - * - 12.0% Total - 27.4% - 46.3% * This represents less than 10% of the Company's purchase for the three and nine months ended January 31, 2018 and 2017. (iii) Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and trade accounts receivable. We place our cash with high credit quality financial institutions in the United States and the PRC. At January 31, 2018, we had $150,344 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 January 31, 2018. 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 12 - Subsequent Events
Note 12 - Subsequent Events | 9 Months Ended |
Jan. 31, 2018 | |
Notes | |
Note 12 - Subsequent Events | NOTE 12 - SUBSEQUENT EVENTS On March 7, 2018 we renewed the amount of RMB484,000 ($76,962) loan from Qing Kong, non-related individual, with an annual interest rate of 10% and new due date on March 6, 2019. On March 8, 2018 we renewed the amount of RMB10,000,000 ($1,590,128) loan from Shidong Wang, non-related individual, with an annual interest rate of 10% and new due date on March 7, 2019. On March 11, 2018 we renewed the amount of RMB120,000 ($19,082) loan from Guihai Chen, non-related individual, with an annual interest rate of 10% and new due date on March 10, 2019. |
Note 2 - Summary of Significa16
Note 2 - Summary of Significant Accounting Policies: Use of Estimates (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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 Significa17
Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
Policies | |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS We consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash and equivalents. As of January 31, 2018, we held $150,344 of our cash and cash equivalents with commercial banking institutions in the PRC, and $785 with banks in the United States. As of April 30, 2017, we held $30,781 of our cash and cash equivalents with commercial banking institution in PRC, and $20,335 in the United States. In China, there is no equivalent federal deposit insurance as in the United States, so the amounts held in banks in China are not insured. We have not experienced any losses in such bank accounts through January 31, 2018. |
Note 2 - Summary of Significa18
Note 2 - Summary of Significant Accounting Policies: Accounts Receivable (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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. At January 31, 2018 and April 30, 2017, the allowance for doubtful accounts was $1,111,599 and $1,182,632, respectively. We had recovery of bad debt for $216,910 and recognized bad debt expenses of $55,145 for the nine months ended January 31, 2018 and 2017, respectively. |
Note 2 - Summary of Significa19
Note 2 - Summary of Significant Accounting Policies: Inventories (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
Policies | |
Inventories | INVENTORIES Inventories, consisting of raw materials, work in process, and finished goods related to our products, are stated at the lower of cost or market (estimated net realizable value) utilizing the weighted average method. An allowance is established when management determines that certain inventories may not be saleable. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record reserves for the difference between the cost and the market value. These reserves are recorded based on estimates. At January 31, 2018 and April 30, 2017, the Company recorded a reserve for obsolete or slow-moving inventories of $178,776 and $163,048, respectively. |
Note 2 - Summary of Significa20
Note 2 - Summary of Significant Accounting Policies: Property and Equipment (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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 twenty years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. In accordance with paragraph 360-10-35-17 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC"), we examine the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. 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 Significa21
Note 2 - Summary of Significant Accounting Policies: Long-lived Assets (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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 loss on disposition of property and equipment of $285,150 and $122,285 at January 31, 2018 and April 30, 2017, respectively. We received $1,505 and $0 in cash proceeds from disposal of equipment for the nine months ended January 31, 2018 and 2017, respectively. |
Note 2 - Summary of Significa22
Note 2 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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 Significa23
Note 2 - Summary of Significant Accounting Policies: Taxes Payable (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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 January 31, 2018 and April 30, 2017 amounted to $92,568 and $121,127, respectively, consisted primarily of VAT taxes. |
Note 2 - Summary of Significa24
Note 2 - Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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 Significa25
Note 2 - Summary of Significant Accounting Policies: Grant Income (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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 Significa26
Note 2 - Summary of Significant Accounting Policies: Income Taxes (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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 January 31, 2018, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. |
Note 2 - Summary of Significa27
Note 2 - Summary of Significant Accounting Policies: Basic and Diluted Earnings Per Share (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
Policies | |
Basic and Diluted Earnings Per Share | BASIC AND DILUTED EARNINGS PER SHARE Pursuant to ASC Section 260-10-45, basic loss per common share is computed by dividing loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of ours, subject to anti-dilution limitations. The following table presents a reconciliation of basic and diluted net income per common share: Three Months Ended January 31, Nine Months Ended January 31, Numerator: 2018 2017 2018 2017 Net loss attributable to Sunwin Stevia International, Inc. $ (872,810) $ (905,684) $ (3,821,910) $ (2,650,264) Numerator for basic EPS, loss applicable to common stock holders $ (872,810) $ (905,684) $ (3,821,910) $ (2,650,264) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 199,632,803 182,066,546 199,632,803 182,066,546 Stock awards, options, and warrants 0 0 0 0 Denominator for diluted earnings per share - adjusted weighted average outstanding average number of common shares outstanding 199,632,803 182,066,546 199,632,803 182,066,546 Basic and diluted loss per common share: Loss per share - basic and diluted $ (0.00) $ (0.00) $ (0.02) $ (0.01) |
Note 2 - Summary of Significa28
Note 2 - Summary of Significant Accounting Policies: Foreign Currency Translation (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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 January 31, 2018 RMB 6.29 to $1.00 As of April 30, 2017 RMB 6.90 to $1.00 Nine months ended January 31, 2018 RMB 6.67 to $1.00 Nine months ended January 31, 2017 RMB 6.72 to $1.00 |
Note 2 - Summary of Significa29
Note 2 - Summary of Significant Accounting Policies: Comprehensive Loss (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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 nine months ended January 31, 2018 and 2017 included net loss and unrealized gains (losses) from foreign currency translation adjustments. |
Note 2 - Summary of Significa30
Note 2 - Summary of Significant Accounting Policies: Concentrations of Credit Risk (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
Policies | |
Concentrations of Credit Risk | CONCENTRATIONS OF CREDIT RISK Substantially all of our operations are carried out in the PRC. Accordingly, our business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC's economy. Our operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America. Our results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and trade accounts receivable. We place our cash with high credit quality financial institutions in the United States and China. At January 31, 2018, we had $150,344 of cash balance held in PRC banks, which is not insured. We have not experienced any losses in such accounts through January 31, 2018. 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 Significa31
Note 2 - Summary of Significant Accounting Policies: Stock Based Compensation (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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. |
Note 2 - Summary of Significa32
Note 2 - Summary of Significant Accounting Policies: Research and Development (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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 $284,351 and $283,815 for the three months ended January 31, 2018 and 2017, and $650,654 and $393,143 for the nine months ended January 31, 2018 and 2017, respectively. |
Note 2 - Summary of Significa33
Note 2 - Summary of Significant Accounting Policies: Shipping Costs (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
Policies | |
Shipping Costs | SHIPPING COSTS Shipping costs are included in selling expenses and totaled $82,237 and $91,522 for the three months ended January 31, 2018 and 2017, and $244,488 and $342,913 for the nine months ended January 31, 2018 and 2017, respectively. |
Note 2 - Summary of Significa34
Note 2 - Summary of Significant Accounting Policies: Reclassifications (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
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 Significa35
Note 2 - Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
Policies | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, in an effort to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments of this ASU are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of this guidance is not expected to have a material impact on our financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from contracts with Customers (Topic 606)" and issued subsequent amendments to the initial guidance or implementation guidance between August 2015 and November 2017 within ASU 2015-04, ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-13, and ASU 2017-14 (collectively, including ASU 2014-09, "ASC 606"). ASC 606 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. ASU 606 will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. ASU 606 also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchanged for those goods or services. ASC 606 is effective for public entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The amendments may be applied retrospectively to each prior period (full retrospective) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective). The provisions of this new guidance are effective as of the beginning of the Company's first quarter of fiscal year 2019, May 1, 2018. The Company is currently evaluating the transition method to be used and the potential impact of this standard on its consolidated financial statements. The Company intends to adopt ASU 2014-09 effective May 1, 2018 and apply the modified retrospective approach. 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 Significa36
Note 2 - Summary of Significant Accounting Policies: Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended January 31, Nine Months Ended January 31, Numerator: 2018 2017 2018 2017 Net loss attributable to Sunwin Stevia International, Inc. $ (872,810) $ (905,684) $ (3,821,910) $ (2,650,264) Numerator for basic EPS, loss applicable to common stock holders $ (872,810) $ (905,684) $ (3,821,910) $ (2,650,264) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 199,632,803 182,066,546 199,632,803 182,066,546 Stock awards, options, and warrants 0 0 0 0 Denominator for diluted earnings per share - adjusted weighted average outstanding average number of common shares outstanding 199,632,803 182,066,546 199,632,803 182,066,546 Basic and diluted loss per common share: Loss per share - basic and diluted $ (0.00) $ (0.00) $ (0.02) $ (0.01) |
Note 2 - Summary of Significa37
Note 2 - Summary of Significant Accounting Policies: Foreign Currency Translation: FOREIGN EXCHANGE RATE Table (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
FOREIGN EXCHANGE RATE Table | As of January 31, 2018 RMB 6.29 to $1.00 As of April 30, 2017 RMB 6.90 to $1.00 Nine months ended January 31, 2018 RMB 6.67 to $1.00 Nine months ended January 31, 2017 RMB 6.72 to $1.00 |
Note 3 - Inventories_ Schedule
Note 3 - Inventories: Schedule of Inventory, Current (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Schedule of Inventory, Current | January 31, 2018 (unaudited) April 30, 2017 Raw materials $ 7,406,466 $ 4,087,036 Work in process 1,740,132 1,802,782 Finished goods 3,138,089 3,089,703 Inventories, gross 12,284,687 8,979,521 Less: reserve for obsolete inventory (178,776) (163,048) Inventories, net $ 12,105,911 $ 8,816,473 |
Note 4 - Property and Equipme39
Note 4 - Property and Equipment: Property and equipment Table (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Property and equipment Table | (Estimated Life ) January 31, 2018 (unaudited) April 30, 2017 Office equipment (3-10 Years) $ 70,062 $ 67,091 Auto and trucks (2-10 Years) 516,187 446,968 Manufacturing equipment (2-20 Years) 5,016,056 5,109,816 Buildings (5-20 Years) 9,243,773 8,136,080 Construction in process 528,851 815,471 Gross Property and Equipment 15,374,929 14,575,426 Less: accumulated depreciation (6,924,596) (6,334,229) Property and equipment, net $ 8,450,333 $ 8,241,197 |
Note 5 - Land Use Rights_ Land
Note 5 - Land Use Rights: Land use right Table (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Land use right Table | (Estimated Life) January 31, 2018 (unaudited) April 30, 2017 Land use right (45 Years) $ 2,528,138 $ 2,303,168 Less: accumulated amortization (533,451) (448,113) Land use right, net $ 1,994,687 $ 1,855,055 |
Note 6 - Related Party Transa41
Note 6 - Related Party Transactions: Schedule of Related Party Transactions (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Schedule of Related Party Transactions | Shandong Shengwang Pharmaceutical Co., Ltd. Qufu Shengwang Import and Export Co., Ltd. Weidong Chai Laiwang Zhang Total Balance due to related parties, April 30, 2017 $ (30,568) $ 21,878 $ 134,002 $ 0 $ 125,312 Working capital advances from related parties 4,191,461 465,863 13,745 397,532 5,068,601 Repayments (2,865,717) (386,273) 0 0 (3,251,990) Effect of foreign currency exchange 41,027 25,208 13,874 0 80,109 Balance due to related parties, January 31, 2018 $ 1,336,203 $ 126,676 $ 161,621 $ 397,532 $ 2,022,032 |
Note 8 - Accounts Payable and42
Note 8 - Accounts Payable and Accrued Expenses: Schedule of Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Schedule of Accounts Payable and Accrued Liabilities | Account January 31, 2018 (unaudited) April 30, 2017 Accounts payable $ 6,623,798 $ 5,096,599 Advanced from customers 177,666 40,900 Accrued salary payable 359,610 160,244 Tax payable 92,568 121,127 Deferred revenue 25,719 82,581 Other payable* 2,611,256 1,535,020 Total accounts payable and accrued expenses $ 9,890,617 $ 7,036,471 |
Short-term loan payable Table (
Short-term loan payable Table (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Short-term loan payable Table | January 31, 2018 (unaudited) April 30, 2017 Loan from Min Wu, an employee of Qufu Shengren, due on October 5, 2017, with an annual interest rate of 10% at October 6, 2016. Renewed on October 6, 2017 and accrued interest of RMB20,000 ($3,180) added to the original principal amount of RMB200,000 ($31,803), terms were not changed, with new due date on October 5, 2018. $ 34,983 $ 29,005 Loans from Jianjun Yan, non-related individual, due on October 6, 2017, with an annual interest rate of 10% at October 7, 2016. Renewed on October 7, 2017 and accrued interest of RMB800,800 ($127,336) added to the original principal amount of RMB8,008,000 ($1,273,375), terms were not changed, with new due date on October 6, 2018. 1,400,711 1,161,354 Loans from Jianjun Yan, non-related individual, due on March 30, 2018, with annual interest rate of 4% at March 31, 2017. Repaid partial principal amount of $375,077 on August 23, 2017. 1,192,596 1,450,242 Loan from Junzhen Zhang, non-related individual, due on October 5, 2017, with an annual interest rate of 10% at October 6, 2016. Renewed on October 6, 2017 and accrued interest ofRMB10,000 ($1,590) added to the original principal amount of RMB150,000 ($23,852), terms were not changed, with new due date on October 5, 2018. 25,442 21,754 Loan from Jian Chen, non-related individual, due on January 26, 2018 and April 10, 2018, bearing an annual interest rate of 10%, with the principle amount of RMB700,000 ($111,309) and RMB300,000 ($47,704) at January 27, 2017 and April 11, 2017, respectively. On January 27, 2018, principle amount of RMB700,000 loan was extended anther one year. 159,013 145,024 Loan from Qing Kong, non-related individual, due on March 6, 2017, with an annual interest rate of 10% at March 7, 2016, which renewed on March 7, 2017 and accrued interest of RMB44,000 ($6,996) added to the original principal amount of RMB440,000 ($69,966), terms were not changed, with new due date on March 6, 2018.See Note 12 76,962 63,811 Loan from Qing Kong, non-related individual, due on January 8,2019, with an annual interest rate of 10% at January 9,2018. 31,803 0 Loan from Guihai Chen, non-related individual, due on March 10, 2017, with an annual interest rate of 10% at March 11, 2016, which renewed on March 11, 2017 and accrued interest of RMB10,000 ($1,590) added to the original principal of RMB110,000 ($17,492), terms were not changed, with new due date on March 10, 2018. See Note 12 19,082 15,953 Loan from Guihai Chen, non-related individual, due on September 20, 2018, with an annual interest rate of 10% at September 21, 2017. 31,803 0 Loan from Weifeng Kong, non-related individual, due on November 28, 2017, with an annual interest rate of 10% at November 29, 2016, extended another one year at on November 29, 2017. 31,803 29,004 Loan from Shidong Wang, non-related individual, due on March 7, 2018, with an annual interest rate of 4% at March 8, 2017. See Note 12 1,590,128 1,450,242 Total $ 4,594,326 $ 4,366,389 |
Long-term loan payable Table (T
Long-term loan payable Table (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Long-term loan payable Table | January 31, 2018 (unaudited) April 30, 2017 Loan from Xuxu Gu, non-related individual, due on March 8, 2019, with an annual interest rate of 4% at March 9, 2017. $ 1,590,128 $ 1,450,242 Loan from Dadong Mei, non-related individual, due on March 8, 2019, with an annual interest rate of 4% at March 9, 2017. 1,590,128 1,450,242 Loan from Xuxu Gu, non-related individual, due on September 27, 2019, with an annual interest rate of 4% at September 28, 2017. 1,701,438 0 Total: $ 4,881,694 $ 2,900,484 |
Note 10 - Segment Information_
Note 10 - Segment Information: Schedule of Segment Reporting Information, by Segment (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended January 31, Nine Months Ended January 31, 2018 2017 2018 2017 Revenues: Chinese medicine - third party $ 675,927 $ 859,933 $ 2,099,147 $ 2,240,055 Chinese medicine - related party 0 0 0 0 Total Chinese medicine 675,927 859,933 2,099,147 2,240,055 Stevioside - third party 4,058,336 3,421,023 11,135,229 8,413,018 Stevioside - related party 1,591,329 2,129,371 1,858,709 5,591,740 Total Stevioside 5,649,665 5,550,394 12,993,938 14,004,758 Total segment and consolidated revenues $ 6,325,592 $ 6,410,327 $ 15,093,085 $ 16,244,813 Interest income (expense): Chinese medicine $ 386 $ 105 $ 742 $ 178 Stevioside (152,055) (100,363) (387,670) (270,334) Total segment and consolidated interest expense $ (151,669) $ (100,258) $ (386,928) $ (270,156) Depreciation and amortization: Chinese medicine $ 33,531 $ 70,011 $ 170,961 $ 218,060 Stevioside 300,818 356,809 1,032,021 1,057,808 Total segment and consolidated depreciation and amortization $ 334,349 $ 426,820 $ 1,202,982 $ 1,275,868 Loss before income taxes: Chinese medicine $ (6,964) $ (38,147) $ (521,873) $ (188,043 Stevioside (551,179) (508,840) (2,278,166) (1,336,510 Corporate and other (314,667) (358,697) (1,021,871) (1,125,711 Total consolidated loss before income taxes $ (872,810) $ (905,684) $ (3,821,910) $ (2,650,264 |
Note 10 - Segment Information46
Note 10 - Segment Information: Segment assets Table (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Segment assets Table | January 31, 2018 April 30, 2017 Segment tangible assets: Chinese medicine $ 1,088,871 $ 1,319,227 Stevioside 7,361,462 6,921,970 Corporate and other 0 0 Total consolidated assets $ 8,450,333 $ 8,241,197 |
Note 11 - Concentrations and 47
Note 11 - Concentrations and Credit Risk: Three month Customer Concentrations Table (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Three month Customer Concentrations Table | Net Sales For the three months ended January 31, 2018 For the three months ended January 31, 2017 Chinese Medicine Stevioside Chinese Medicine Stevioside A (1) - 25.2% - 33.2% B - 16.5% - * Total - 41.7% - 33.2% |
Note 11 - Concentrations and 48
Note 11 - Concentrations and Credit Risk: Nine month Customer Concentrations Table (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Nine month Customer Concentrations Table | Net Sales For the nine months ended January 31, 2018 For the nine months ended January 31, 2017 Chinese Medicine Stevioside Chinese Medicine Stevioside A (1) - 12.3% - 34.4% B - 10.6% - 14.1% Total - 22.9% - 48.5% |
Note 11 - Concentrations and 49
Note 11 - Concentrations and Credit Risk: Three month Vendor Concentrations Table (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Three month Vendor Concentrations Table | Net Purchases For the three months ended January 31, 2018 For the three months ended January 31, 2017 Chinese Medicine Stevioside Chinese Medicine Stevioside A - * - 18.7 B - 11.3% - * C - * - 15.9 D - * - 13.6 Total - 11.3% - 48.2 |
Note 11 - Concentrations and 50
Note 11 - Concentrations and Credit Risk: Nine month Vendor Concentrations Table (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Tables/Schedules | |
Nine month Vendor Concentrations Table | Net Purchases For the nine months ended January 31, 2018 For the nine months ended January 31, 2017 Chinese Medicine Stevioside Chinese Medicine Stevioside A - 12.7% - 13.0% B - 14.7% - * C - * - 21.3% D - * - 12.0% Total - 27.4% - 46.3% |
Note 1 - Organization and Ope51
Note 1 - Organization and Operations (Details) - USD ($) | Sep. 30, 2011 | Apr. 30, 2008 |
Details | ||
Qufu Natural Green acquired a 60% interest in Qufu Shengwang | $ 4,026,851 | |
Qufu Natural Green purchased the 40% equity interest in Qufu Shengwang | $ 626,125 |
Note 2 - Summary of Significa52
Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Cash and cash equivalents held in PRC | $ 150,344 | $ 30,781 |
Cash and cash equivalents held in USA | $ 785 | $ 20,335 |
Note 2 - Summary of Significa53
Note 2 - Summary of Significant Accounting Policies: Accounts Receivable (Details) - USD ($) | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Apr. 30, 2017 | |
Details | |||
Allowance for Doubtful Accounts Receivable | $ 1,111,599 | $ 1,182,632 | |
Recovery of bad debt reserve | $ 216,910 | ||
Bad debt expenses | $ 55,145 |
Note 2 - Summary of Significa54
Note 2 - Summary of Significant Accounting Policies: Inventories (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Reserve for obsolete or slow-moving inventories | $ 178,776 | $ 163,048 |
Note 2 - Summary of Significa55
Note 2 - Summary of Significant Accounting Policies: Long-lived Assets (Details) - USD ($) | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Apr. 30, 2017 | |
Details | |||
Loss on disposition of property and equipment | $ 285,150 | $ 122,285 | |
Cash proceed form disposal of equipment | $ 1,505 | $ 0 |
Note 2 - Summary of Significa56
Note 2 - Summary of Significant Accounting Policies: Taxes Payable (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
VAT payable | $ 92,568 | $ 121,127 |
Note 2 - Summary of Significa57
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 | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Details | ||||
Net loss attributable to Sunwin Stevia International, Inc. | $ (872,810) | $ (905,684) | $ (3,821,910) | $ (2,650,264) |
Numerator for basic EPS, loss applicable to common stock holders | $ (872,810) | $ (905,684) | $ (3,821,910) | $ (2,650,264) |
Weighted Average Number of Shares Issued, Basic | 199,632,803 | 182,066,546 | 199,632,803 | 182,066,546 |
Weighted Average Number of Shares Outstanding, Diluted | 199,632,803 | 182,066,546 | 199,632,803 | 182,066,546 |
Net Loss per share-basic and diluted | $ 0 | $ 0 | $ (0.02) | $ (0.01) |
Note 2 - Summary of Significa58
Note 2 - Summary of Significant Accounting Policies: Foreign Currency Translation: FOREIGN EXCHANGE RATE Table (Details) | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Apr. 30, 2017 | |
Details | |||
Foreign Currency Exchange Rate, Translation | 6.29 | 6.90 | |
Average exchange rates | 6.67 | 6.72 |
Note 2 - Summary of Significa59
Note 2 - Summary of Significant Accounting Policies: Concentrations of Credit Risk (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Cash and cash equivalents held in PRC | $ 150,344 | $ 30,781 |
Note 2 - Summary of Significa60
Note 2 - Summary of Significant Accounting Policies: Research and Development (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Details | ||||
Research and Development Expense | $ 284,351 | $ 283,815 | $ 650,654 | $ 393,143 |
Note 2 - Summary of Significa61
Note 2 - Summary of Significant Accounting Policies: Shipping Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Details | ||||
Shipping, Handling and Transportation Costs | $ 82,237 | $ 91,522 | $ 244,488 | $ 342,913 |
Note 3 - Inventories_ Schedul62
Note 3 - Inventories: Schedule of Inventory, Current (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Inventory, Raw Materials, Gross | $ 7,406,466 | $ 4,087,036 |
Inventory, Work in Process, Gross | 1,740,132 | 1,802,782 |
Inventory, Finished Goods, Gross | 3,138,089 | 3,089,703 |
Inventory, Gross | 12,284,687 | 8,979,521 |
Reserve for obsolete inventory | (178,776) | (163,048) |
Inventories, net | $ 12,105,911 | $ 8,816,473 |
Note 4 - Property and Equipme63
Note 4 - Property and Equipment: Property and equipment Table (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Office Equipment | $ 70,062 | $ 67,091 |
Auto and Trucks | 516,187 | 446,968 |
Machinery and Equipment, Gross | 5,016,056 | 5,109,816 |
Buildings and Improvements, Gross | 9,243,773 | 8,136,080 |
Construction in Progress, Gross | 528,851 | 815,471 |
Property, Plant and Equipment, Gross | 15,374,929 | 14,575,426 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (6,924,596) | (6,334,229) |
Property and equipment, net | $ 8,450,333 | $ 8,241,197 |
Note 4 - Property and Equipme64
Note 4 - Property and Equipment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Details | ||||
Total Depreciation Expense | $ 320,878 | $ 332,714 | $ 1,054,856 | $ 992,590 |
Cost of revenues | 274,270 | 261,775 | 897,938 | 763,806 |
General and administrative expenses | $ 46,608 | $ 70,939 | $ 156,918 | $ 228,784 |
Note 5 - Land Use Rights_ Lan65
Note 5 - Land Use Rights: Land use right Table (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Land use right, gross | $ 2,528,138 | $ 2,303,168 |
Accumulated amortization of Land Use Rights | (533,451) | (448,113) |
LandUseRight | $ 1,994,687 | $ 1,855,055 |
Note 5 - Land Use Rights (Detai
Note 5 - Land Use Rights (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Details | ||||
Amortization expense - Land use rights | $ 13,471 | $ 12,812 | $ 39,736 | $ 39,398 |
Note 6 - Related Party Transa67
Note 6 - Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Apr. 30, 2017 | |
Details | |||||
Accounts receivable - related party Qufu Shengwang | $ 2,479,670 | $ 2,479,670 | $ 339,270 | ||
Revenue - related party Qufu Shengwang | 1,591,329 | $ 2,129,371 | 1,858,709 | $ 5,591,740 | |
Advances from related parties for working capital | 5,068,601 | 2,595,313 | |||
Repaid to related parties for working capital | 3,251,990 | 2,768,284 | |||
Interest expense related to due to related parties | $ 25,945 | $ 38,207 | $ 71,135 | $ 96,320 |
Note 6 - Related Party Transa68
Note 6 - Related Party Transactions: Schedule of Related Party Transactions (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Due to Pharmaceutical Corporation | $ 1,336,203 | $ (30,568) |
Due to Qufu Shengwang | 126,676 | 21,878 |
Due to Weidong Chai | 161,621 | 134,002 |
Due to Laiwang Zhang | 397,532 | 0 |
Total Due to Related Party | 2,022,032 | $ 125,312 |
Working capital advances from related parties - Shangdong | 4,191,461 | |
Working capital advances from related parties - Qufu | 465,863 | |
Working capital advances from related parties - Weidong Chai | 13,745 | |
Working capital advances from related parties - Laiwang Zhang | 397,532 | |
Working capital advances from related parties | 5,068,601 | |
Repayments from related parties - Shandong | (2,865,717) | |
Repayments from related parties - Qufu | (386,273) | |
Repayments from related parties - Weidong Chai | 0 | |
Repayments from related parties - Laiwang Zhang | 0 | |
Repayments from related parties | (3,251,990) | |
Effect of foreign currency exchange - Shangdong | 41,027 | |
Effect of foreign currency exchange - Qufu | 25,208 | |
Effect of foreign currency exchange - Weidong Chai | 13,874 | |
Effect of foreign currency exchange - Laiwang Zhang | 0 | |
Effect of foreign currency exchange | $ 80,109 |
Note 7 - Prepaid Expenses and69
Note 7 - Prepaid Expenses and Other Current Assets (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Prepaid expenses and other current assets | $ 3,140,458 | $ 4,729,865 |
Prepayments to suppliers | 1,799,838 | 3,286,808 |
Prepayment for employees' stock-based compensation | 1,022,220 | 1,226,668 |
Business related employees' advances | $ 318,400 | $ 216,389 |
Note 8 - Accounts Payable and70
Note 8 - Accounts Payable and Accrued Expenses: Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Accounts Payable | $ 6,623,798 | $ 5,096,599 |
Customer Advances, Current | 177,666 | 40,900 |
Accrued salary payable | 359,610 | 160,244 |
Taxes Payable, Current | 92,568 | 121,127 |
Deferred Revenue | 25,719 | 82,581 |
Accounts Payable, Other, Current | 2,611,256 | 1,535,020 |
Accounts Payable and Accrued Liabilities, Current | $ 9,890,617 | $ 7,036,471 |
Note 8 - Accounts Payable and71
Note 8 - Accounts Payable and Accrued Expenses (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Commission payable | $ 201,310 | $ 133,712 |
General liability, worker's compensation, and medical insurance payable | 575,687 | 465,505 |
Consulting fee payable | 209,905 | 266,852 |
Union and education fees payable | 297,754 | 280,404 |
Interest payables for short-term loans | 521,012 | 213,153 |
Advanced from the employees | 602,037 | 172,435 |
Other miscellaneous payables | $ 203,551 | $ 2,959 |
Short-term loan payable Table72
Short-term loan payable Table (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Loan from Min Wu at 10% | $ 34,983 | $ 29,005 |
Loan from Jianjun Yan at 10% A | 1,400,711 | 1,161,354 |
Loan from Jianjun Yan at 10% B | 1,192,596 | 1,450,242 |
Loan from Junzhen Zhang | 25,442 | 21,754 |
Loan from Jian Chen | 159,013 | 145,024 |
Loan from Qing Kong A | 76,962 | 63,811 |
Loan from Qing Kong B | 31,803 | 0 |
Loan from Guihai Chen0318 | 19,082 | 15,953 |
Loan from Guihai Chen0918 | 31,803 | 0 |
Loan from Weifeng Kong | 31,803 | 29,004 |
Loan from Shidong Wang | 1,590,128 | 1,450,242 |
Total Short Term Loan Payable | $ 4,594,326 | $ 4,366,389 |
Long-term loan payable Table (D
Long-term loan payable Table (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Loan from Xuxu Gu 0319 | $ 1,590,128 | $ 1,450,242 |
Loan from Dadong Mei | 1,590,128 | 1,450,242 |
Loan from Xuxu Gu 0919 | 1,701,438 | 0 |
Total Long Term Loan Payable | $ 4,881,694 | $ 2,900,484 |
Items (Details)
Items (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Details | ||||
Interest expense related to loans | $ 126,138 | $ 62,169 | $ 316,578 | $ 174,414 |
Note 10 - Segment Information75
Note 10 - Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Details | ||||
Net revenues - Chinese Medicines | $ 675,927 | $ 859,933 | $ 2,099,147 | $ 2,240,055 |
Net revenues - Chinese medicine - related party | 0 | 0 | 0 | 0 |
Net revenues - Chinese medicine - Total | 675,927 | 859,933 | 2,099,147 | 2,240,055 |
Net revenues - Stevioside - third party | 4,058,336 | 3,421,023 | 11,135,229 | 8,413,018 |
Net revenues - Stevioside - related party | 1,591,329 | 2,129,371 | 1,858,709 | 5,591,740 |
Net revenues - Stevioside - Total | 5,649,665 | 5,550,394 | 12,993,938 | 14,004,758 |
Net revenues - Total segment and consolidated revenues | 6,325,592 | 6,410,327 | 15,093,085 | 16,244,813 |
Interest income - Chinese Medicines | 386 | 105 | 742 | 178 |
Interest income - Stevioside | (152,055) | (100,363) | (387,670) | (270,334) |
Interest income - Total segment and consolidated interest expense | (151,669) | (100,258) | (386,928) | (270,156) |
Depreciation and amortization - Chinese Medicines | 33,531 | 70,011 | 170,961 | 218,060 |
Depreciation and amortization - Stevioside | 300,818 | 356,809 | 1,032,021 | 1,057,808 |
Depreciation and amortization - Total segment and consolidated depreciation and amortization | 334,349 | 426,820 | 1,202,982 | 1,275,868 |
Loss before taxes and noncontrolling interest - Chinese Medicines | (6,964) | (38,147) | (521,873) | (188,043) |
Loss before taxes and noncontrolling interest - Stevioside | (551,179) | (508,840) | (2,278,166) | (1,336,510) |
Loss before taxes and noncontrolling interest - Corporate and other | (314,667) | (358,697) | (1,021,871) | (1,125,711) |
Income (loss) before income taxes - Total segment and consolidated depreciation and amortization | $ (872,810) | $ (905,684) | $ (3,821,910) | $ (2,650,264) |
Note 10 - Segment Information76
Note 10 - Segment Information: Segment assets Table (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Segment assets- Chinese Medicines | $ 1,088,871 | $ 1,319,227 |
Segment assets-Stevioside | 7,361,462 | 6,921,970 |
Segment assets-Corporate and other | 0 | 0 |
Segment assets-Total consolidated assets | $ 8,450,333 | $ 8,241,197 |
Note 11 - Concentrations and 77
Note 11 - Concentrations and Credit Risk (Details) - USD ($) | Jan. 31, 2018 | Apr. 30, 2017 |
Details | ||
Cash and cash equivalents held in PRC | $ 150,344 | $ 30,781 |
Note 12 - Subsequent Events (De
Note 12 - Subsequent Events (Details) - USD ($) | Mar. 11, 2018 | Mar. 08, 2018 | Mar. 07, 2018 |
Details | |||
Renewed Loan | $ 19,082 | $ 1,590,128 | $ 76,962 |