Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2019 | Sep. 16, 2019 | |
Details | ||
Registrant CIK | 0000806592 | |
Fiscal Year End | --04-30 | |
Registrant Name | SUNWIN STEVIA INTERNATIONAL, INC. | |
SEC Form | 10-Q | |
Period End date | Jul. 31, 2019 | |
Tax Identification Number (TIN) | 56-2416925 | |
Number of common stock shares outstanding | 199,632,803 | |
Filer Category | Non-accelerated Filer | |
Current with reporting | Yes | |
Interactive Data Current | Yes | |
Shell Company | false | |
Small Business | true | |
Emerging Growth Company | false | |
Document Quarterly Report | true | |
Entity File Number | 000-53595 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 6 SHENGWANG AVE., | |
Entity Address, City or Town | QUFU, SHANDONG, | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 273100 | |
City Area Code | (86) | |
Local Phone Number | 537-4424999 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false |
Statement of Financial Position
Statement of Financial Position - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 785,383 | $ 294,199 |
Accounts receivable, net of allowance for doubtful accounts of $76,475 and $78,159, respectively | 3,296,157 | 2,985,166 |
Accounts receivable - related party | 2,514,069 | 2,477,659 |
Inventories, net | 12,668,205 | 11,991,956 |
Prepaid expenses and other current assets | 2,318,291 | 1,676,347 |
Assets held for sale | 0 | 4,143,059 |
Total Current Assets | 21,582,105 | 23,568,386 |
Property and equipment, net | 9,231,104 | 8,993,397 |
Non-current assets held for sale | 0 | 2,925,706 |
Total Assets | 30,813,209 | 35,487,489 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 9,427,209 | 7,680,049 |
Short-term loans | 9,174,683 | 6,079,983 |
Due to related parties | 5,999,150 | 6,408,521 |
Current liabilities held for sale | 0 | 988,748 |
Total Current Liabilities | 24,601,042 | 21,157,301 |
Long-term loans | 2,789,806 | 9,845,706 |
Non-current liabilities of held for sale | 0 | 947,445 |
Total Liabilities | 27,390,848 | 31,950,452 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 200,000,000 shares authorized; 199,632,803 and 199,632,803 shares issued and outstanding as of July 31, 2019 and April 30, 2019, respectively | 199,633 | 199,633 |
Additional paid-in capital | 37,681,279 | 37,681,279 |
Accumulated deficit | (39,118,946) | (38,735,711) |
Accumulated other comprehensive income | 4,660,395 | 4,391,836 |
Total Stockholders' Equity | 3,422,361 | 3,537,037 |
Total Liabilities and Stockholders' Equity | $ 30,813,209 | $ 35,487,489 |
Income Statement
Income Statement - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Details | ||
Revenues | $ 5,106,182 | $ 3,597,580 |
Revenues - related parties | 1,783,893 | 1,399,580 |
Total revenues | 6,890,075 | 4,997,160 |
Cost of revenues | 4,120,629 | 3,218,099 |
Cost of revenues - related parties | 1,648,239 | 1,214,610 |
Total cost of revenues | 5,768,868 | 4,432,709 |
Gross profit | 1,121,207 | 564,451 |
Operating expenses: | ||
Selling expenses | 374,432 | 487,655 |
General and administrative expenses | 402,362 | 761,832 |
Research and development expenses | 306,551 | 231,766 |
Total operating expenses, net | 1,083,345 | 1,481,253 |
Income (loss) from operations | 37,862 | (916,802) |
Other (expenses) income | ||
Other expenses | (1,759) | (746) |
Grant income | 14,537 | 0 |
Interest income | 84 | 75 |
Interest expense - related party | (35,741) | (35,718) |
Interest expense | (144,787) | (149,351) |
Total other expense | (167,666) | (185,740) |
Loss from continuing operations before income taxes | (129,804) | (1,102,542) |
Net loss from continuing operations | (129,804) | (1,102,542) |
Discontinued operations | ||
Loss from discontinued operations, net of income tax | (20,016) | (87,795) |
Loss from disposal of discontinued operations | (233,415) | 0 |
Loss from discontinued operations, Total, net of income tax | (253,431) | (87,795) |
Net loss | (383,235) | (1,190,337) |
Comprehensive loss: | ||
Foreign currency translation adjustment | 268,559 | (637,216) |
Total comprehensive loss | $ (114,676) | $ (1,827,553) |
Earnings per common share: | ||
Continuing operations - basic and diluted | $ 0 | $ (0.01) |
Discontinued operations - basic and diluted | 0 | 0 |
Net loss per common share - basic and diluted | $ 0 | $ (0.01) |
Weighted average common shares outstanding - basic and diluted | 199,632,803 | 199,632,803 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (383,235) | $ (1,190,337) |
Loss from discontinued operations | (253,431) | (87,795) |
Net loss from continuing operations | (129,804) | (1,102,542) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation expense | 270,988 | 269,996 |
Loss on disposition of property and equipment | 20,076 | 0 |
Stock issued for employees' compensation | 0 | 306,667 |
Accounts receivable and notes receivable | (233,798) | 493,203 |
Accounts receivable - related party | (89,839) | (191,638) |
Inventories | (935,078) | (839,235) |
Prepaid expenses and other current assets | (820,060) | (2,234,101) |
Accounts payable and accrued expenses | 2,651,845 | (1,660,597) |
Taxes payable | (23,053) | (111,364) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | 711,277 | (5,069,611) |
NET CASH PROVIDED BY DISCONTINUED OPERATING ACTIVITIES FROM DISCONTINUED OPERATIOIN | 3,621,113 | 818,781 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 4,332,391 | (4,250,830) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (665,210) | (633,992) |
Proceed from disposal of equipment | 5,815 | 0 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES FROM CONTINUING OPERATIONS | 67,444 | (633,992) |
Proceed from disposal of discontinued operations | 726,839 | 0 |
NET CASH USED IN INVESTING ACTIVITIES FROM DISCONTINUED OPERATIOIN | 0 | (767) |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 67,444 | (634,759) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from loans | 0 | 5,045,780 |
Repayment of short term loans | 0 | (245,387) |
Repayment of related party advances | (947,046) | (682,451) |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS | (283,360) | 5,430,858 |
Advance from related parties | 663,686 | 1,312,916 |
NET CASH USED IN FINANCING ACTIVITIES FROM DISCONTINUED OPERATIOIN | (3,621,113) | (453,906) |
NET NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (3,904,473) | 4,976,952 |
EFFECT OF EXCHANGE RATE ON CASH | (4,177) | (5,064) |
NET INCREASE IN CASH | 491,184 | 86,299 |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 294,199 | 75,917 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 785,383 | 162,216 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||
Cash paid for income taxes | 0 | 0 |
Cash paid for interest | 31,329 | 31,789 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Property and equipment acquired on credit as payable | 74,989 | 333,596 |
Accrued interest payable to related parties | $ 27,978 | $ 25,619 |
NOTE 1 - ORGANIZATION AND OPERA
NOTE 1 - ORGANIZATION AND OPERATIONS | 3 Months Ended |
Jul. 31, 2019 | |
Notes | |
NOTE 1 - ORGANIZATION AND OPERATIONS | NOTE 1 - ORGANIZATION AND OPERATIONS DESCRIPTION OF BUSINESS Sunwin Stevia International, Inc. ("Sunwin Stevia International"), a Nevada corporation, and its subsidiaries are referred to in this report as "we", "us", "our", "Sunwin" or the "Company". We sell stevioside, a natural sweetener, and other pharmaceutical productions. Substantially all of our operations are located in the People's Republic of China (the "PRC"). We have built an integrated company with the sourcing and production capabilities designed to meet the needs of our customers. Our operations are organized into two operating segments related to our product lines: - Stevioside; and - Corporate and other. For the three months ended July 31, 2019 and fiscal year 2019, our subsidiaries included in continuing operations and discontinued operations consisted of the following: - Sunwin Stevia International; - Qufu Natural Green Engineering Co., Ltd. ("Qufu Natural Green"), wholly owned by Sunwin Stevia International; - Qufu Shengren Pharmaceutical Co., Ltd. ("Qufu Shengren"), wholly owned by Qufu Natural Green; - Qufu Shengwang Stevia Biology and Science Co., Ltd. ("Qufu Shengwang"), wholly owned by Qufu Natural Green; and - Sunwin USA, LLC ("Sunwin USA"), wholly owned by Sunwin Stevia International. 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. Since fiscal 2018 we invested in a new production line for Metformin as one of the new product markets we intend to branch into. Metformin is the raw material of Metformin hydrochloride tablets. Metformin is the first-line medication for the treatment of type 2 diabetes, particularly in people who are not satisfied with simple diet control, especially those with obesity and hyperinsulinemia. This drug not only has a hypoglycemic effect, but also may have the effect of reducing body weight and hyperinsulinemia. It can be effective in patients with poor efficacy of certain sulfonylureas, such as sulfonylureas, intestinal glycosidase inhibitors or thiazolidinedione hypoglycemic agents, which are more effective than single use. It can also be used in patients with insulin therapy to reduce insulin consumption. Sunwin USA In fiscal year 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. In August 2012, the Company entered into an Exchange Agreement with WILD Flavors pursuant to which it purchased its 45% membership interest in Sunwin USA for an aggregate consideration of $1,625,874, which includes the issuance of 7,666,666 shares of our common stock valued at $1,533,333 and a cash payment of $92,541, the purchased included the product development and supply chain for OnlySweet. Qufu Shengwang In fiscal 2009, Qufu Natural Green acquired a 60% interest in Qufu Shengwang from its shareholder, Shandong Group, for $4,026,851. The purchase price represented 60% of the value of the net tangible assets of Qufu Shengwang as of April 30, 2008. Shandong Group is owned by Laiwang Zhang, our President and Chairman of the Board of Directors. Qufu Shengwang manufactures and sells stevia - based fertilizers and feed additives. On September 30, 2011, Qufu Shengwang purchased the 40% equity interest in Qufu Shengwang owned by our Korean partner, Korea Stevia Company, Limited, for $626,125 in cash, and as a result of this repurchase transaction we now own 100% equity interest in all of the net assets of our subsidiary Qufu Shengwang. Therefore, the non-controlling interest of $2,109,028 in our balance sheet as of April 30, 2012 has been eliminated to reflect our 100% interest in Qufu Shengwang. On July 1, 2012, Qufu Shengwang entered into 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 year 2014, 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. On July 30, 2019, Qufu Shengwang was sold to an unaffiliated individual (see Note 3). |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jul. 31, 2019 | |
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, 2019 included in our Form 10-K as filed with the SEC. The results of operations and cash flows for the three months ended July 31, 2019 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, 2019 contained herein has been derived from the audited consolidated financial statements as of April 30, 2019, but do not include all disclosures required by the U.S. GAAP. Our unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries included in continuing operations and discontinued operations. All intercompany accounts and transactions have been eliminated in consolidation. Qufu Shengwang is the subsidiary of discontinued operations and our subsidiaries for continuing operations include the following: - Qufu Natural Green; - Qufu Shengren; 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 July 31, 2019, we held $684,127 of our cash and cash equivalents with commercial banking institutions in the PRC, and $101,256 with banks in the United States. As of April 30, 2019, we held $294,199 of our cash and cash equivalents with commercial banking institution in PRC, and $88,506 in the United States. In China, there is no equivalent federal deposit insurance as in the United States, so the amounts held in banks in China are not insured. We have not experienced any losses in such bank accounts through July 31, 2019. 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. As of July 31, 2019 and April 30, 2019, the allowance for doubtful accounts was $76,475 and $78,159, respectively. INVENTORIES Inventories, consisting of raw materials, work in process, and finished goods related to our products, are stated at the lower of cost and net realizable value that can be estimated utilizing the weighted average method. A reserve is established when management determines that certain slow-moving inventories may be sold at below book value. These reserves are recorded based on estimates. 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 or estimated net realizable value. As of July 31, 2019 and April 30, 2019, the Company did not record a reserve for obsolete or slow-moving inventories. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record a write down of inventories for the difference between the lower of cost or estimated net realizable value. As of July 31, 2019 and April 30, 2019, the Company wrote down inventories in the amount of $0 and $999,548, 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 $20,076 and $0 at July 31, 2019 and April 30, 2019, 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 is charged by our vendors as VAT receivable. We are required to file VAT return on a monthly basis with the PRC tax authority, in which we are entitled to claim the VAT that we charged by vendors as VAT credit and these credits can be applied to our VAT payable that we billed our customers. Accordingly, these VAT payable and receivable are presented as net amounts for financial statement purposes. Taxes payable as of July 31, 2019 and April 30, 2019 amounted to $100,099 and $125,854, respectively, consisted primarily of VAT taxes. REVENUE RECOGNITION Pursuant to the guidance of ASC 606, we record revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. In accordance with ASC 606, we recognize revenues from the sale of stevia and other productions upon shipment and transfer of title based on the trade terms. All product sales with customer specific acceptance provisions are recognized upon customer acceptance and the delivery of the products. We report revenues net of applicable sales taxes and related surcharges. GRANT INCOME Grants received from PRC government agencies are recognized as deferred grant income and recognized in the condensed consolidated statements of operations and comprehensive loss as and when they are earned for the specific research and development projects for which these grants are designated for. INCOME TAXES The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes We file federal and state income tax returns in the United States for our corporate operations pursuant to the U.S. Internal Revenue Code of 1986, as amended, and file separate foreign tax returns for our Chinese subsidiaries pursuant to the China's Unified Corporate Income Tax Law. We apply the provisions of ASC 740-10-50, "Accounting for Uncertainty in Income Taxes", which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our consolidated financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company's liability for income taxes. Any such adjustment could be material to the Company's results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of July 31, 2019, 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: For Three Months Ended July 31, 2019 2018 Numerator: Net Loss for basic and diluted attributable to common shareholders $ (383,235) $ (1,190,337) Net loss from continuing operations $ (129,804) $ (1,102,542) Net loss from discontinued operation (253,431) (87,795) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 Stock awards, options, and warrants 0 0 Denominator for diluted earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 Basic and diluted loss per common share: Net loss from continuing operations - basic and diluted $ (0.00) $ (0.01) Net loss from discontinued operations - basic and diluted (0.00) (0.00) Net loss per common share - basic and diluted $ (0.00) (0.01) FOREIGN CURRENCY TRANSLATION Transactions and balances originally denominated in U.S. dollars are presented at their original amounts. Transactions and balances in other currencies are converted into U.S. dollars in accordance with ASC Section 830-20-35 and are included in determining net income or loss. The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company's operating subsidiaries is the Chinese Renminbi ("RMB"). In accordance with ASC 830-20-35, the consolidated financial statements were translated into United States dollars using balance sheet date rates of exchange for assets and liabilities, and average rates of exchange for the period for the income statements and cash flows. Equity accounts were stated at their historical rate. Net gains and losses resulting from foreign exchange transactions are included in the consolidated statements of operations. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in other comprehensive income or loss. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People's Bank of China (the "PBOC") or other institutions authorized to buy and sell foreign exchange. The exchange rate adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand. Translation of amounts from RMB into United States dollars ("$") was made at the following exchange rates for the respective periods: As of July 31, 2019 RMB 6.88 to $1.00 As of April 30, 2019 RMB 6.73 to $1.00 Three months ended July 31, 2019 RMB 6.88 to $1.00 Three months ended July 31, 2018 RMB 6.52 to $1.00 COMPREHENSIVE LOSS Comprehensive loss is comprised of net loss and all changes to the statements of stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive loss for the three months ended July 31, 2019 and 2018 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. As of July 31, 2019, we had $684,127 of cash balance held in PRC banks, which is not insured. We have not experienced any losses in such accounts through July 31, 2019. 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 costs were $306,551 and $231,766 for the three months ended July 31, 2019 and 2018, respectively. SHIPPING COSTS Shipping costs are included in selling expenses and totaled $22,895 and $36,765 for the three months ended July 31, 2019 and 2018, respectively. ADVERTISING Advertising is expensed as incurred and is included in selling expenses and totaled $39,354 and $93,570 for the three months ended July 31, 2019 and 2018, respectively. RECLASSIFICATIONS Certain prior year amounts have been reclassified to conform to the current period presentation for amounts related to the discontinue operations (see Note 3). These reclassifications had no impact on net earnings and financial position. SEGMENT REPORTING The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The Company's chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU 2014-09, " Revenue from contracts with Customers (Topic 606) In February 2018, the FASB issued ASU 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". These amendments provide financial statement preparers with an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of ASU 2018-02 is permitted, including adoption in any interim period for the public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company has adopted this guidance in fiscal 2019. In March 2018, the FASB issued ASU 2018-05, "Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118". The amendments in this ASU add SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 - the date on which the Tax Cuts and Jobs Act was signed into law. The amendments are effective upon addition to the FASB Accounting Standards Codification. The adoption of this guidance is did not have a material impact on our consolidated financial statements. A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, we have not determined whether implementation of such proposed standards would be material to our consolidated financial statements. 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 $383,000 for the three months ended July 31, 2019 and has a significant accumulated deficit of $39.1 million as of July 31, 2019. 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 - DISCONTINUED OPERATION
NOTE 3 - DISCONTINUED OPERATIONS | 3 Months Ended |
Jul. 31, 2019 | |
Notes | |
NOTE 3 - DISCONTINUED OPERATIONS | NOTE 3 - DISCONTINUED OPERATIONS On July 30, 2019, Qufu Natural Green entered into an Asset Transfer Agreement with Na Li, an unaffiliated individual (the "Buyer") for the sale of 100% equity ownership of Qufu Shengwang. Pursuant to the Asset Transfer Agreement, the Buyer shall pay to Qufu Natural Green a total cash consideration of RMB8,000,000 (approximately $1,162,790) based on the estimated net book value as of July 30, 2019, payable in two installments of RMB5,000,000 (approximately $726,744) on July 30, 2019 and RMB3,000,000 (approximately $436,046) on September 30, 2019. The Buyer assumed all assets and liabilities of Qufu Shengwang including the amount of Qufu Shengwang owes to Qufu Natural Green of approximately RMB26,000,000 (approximately $3,779,070), and Qufu Natural Green shall assist in completing all documents required for the equity transfer after confirming the receipt of the first payment. The Company received the first installment of RMB5,000,000 on July 30, 2019. Prior to July 30, 2019, Qufu Shangwang engaged in our Chinese medicine segment. In our Chinese medicine segment, we manufactured and sold traditional Chinese medicine formula extracts which are used in products made for use by both humans and animals. As a result of the sale, Qufu Shengwang, our Chinese medicine segment is treated as a discontinued operation. Pursuant to ASC Topic 205-20, Presentation of Financial Statements - Discontinued Operations, the results of operations from the Chinese medicine segment for the three months ended July 31, 2019 and 2018 have been classified as discontinue operations and included in the line caption of to the loss from discontinued operations line in the accompanying consolidated statements of operations and comprehensive loss presented herein. The assets and liabilities also have been classified as discontinued operations under the line captions of current assets held for sale, non-current assets held for sale, current liabilities held for sale and non-current liabilities held for sale in the Company's condensed consolidated balance sheets as of July 31, 2019 and April 30, 2019. The assets and liabilities classified as discontinued operations in the Company's condensed consolidated financial statements as of July 31, 2019 and April 30, 2019 were set forth below. July 31, 2019 April 30, 2019 Assets: Current assets: Cash $ 0 $ 426,766 Accounts receivable, net 0 322,902 Inventories, net 0 949,705 Due from related parties 0 2,308,159 Prepaid expenses and other 0 135,527 Total current assets 0 4,143,059 Property and equipment, net 0 985,630 Land use rights, net 0 1,795,362 Other long-term asset 0 144,714 Total assets $ 0 $ 7,068,765 Liabilities: Current liabilities: Accounts payable $ 0 $ 389,521 Accrued expenses and other liabilities 0 599,227 Total current liabilities 0 988,748 Long-term loans 0 947,445 Total liabilities * $ 0 $ 1,936,193 * Not including intercompany loan of Qufu Shengwang payable to Qufu Natural Green in the amount of RMB27,354,608 (approximately $3,975,960) which was not reflected on the condensed consolidated financial statements as of April 30, 2019 due to consolidation. The following table presents the results of discontinued operations in the three months ended July 31, 2019 and 2018: For the Three Months Ended July 31, 2019 2018 Revenues $ 733,441 $ 836,166 Cost of revenues 572,357 731,997 Gross profit 161,084 104,169 Operating expenses 172,142 192,484 Other income, net 8,958 520 Loss before income taxes 20,016 87,795 Income tax expense 0 0 Loss from discontinued operations 20,016 87,795 Loss from disposal, net of taxes 233,415 0 Total loss from discontinued operations $ 253,431 $ 87,795 For the three months ended July 31, 2019 and 2018, loss from discontinued operations amounted to $20,016 and $87,795. The Company realized a loss of $233,415 from the disposal of 100% equity of Qufu Shengwang, which was reflected as loss from sale of discontinued operations on the condensed consolidated statement of operations for the three months ended July 31, 2019. |
NOTE 4 - INVENTORIES
NOTE 4 - INVENTORIES | 3 Months Ended |
Jul. 31, 2019 | |
Notes | |
NOTE 4 - INVENTORIES | NOTE 4 - INVENTORIES As of July 31, 2019 and April 30, 2019, inventories consisted of the following: July 31, 2019 (unaudited) April 30, 2019 Raw materials $ 6,142,384 $ 5,639,260 Work in process 2,078,277 3,426,545 Finished goods 4,447,544 2,926,151 Inventories, gross 12,668,205 11,991,956 Less: reserve for obsolete inventory 0 0 Inventories, net $ 12,668,205 $ 11,991,956 |
NOTE 5 - PROPERTY AND EQUIPMENT
NOTE 5 - PROPERTY AND EQUIPMENT | 3 Months Ended |
Jul. 31, 2019 | |
Notes | |
NOTE 5 - PROPERTY AND EQUIPMENT | NOTE 5 - PROPERTY AND EQUIPMENT As of July 31, 2019 and April 30, 2019, property and equipment consisted of the following: July 31, 2019 (unaudited) April 30, 2019 (Estimated Life ) Office equipment (3-5 Years) $ 77,174 $ 77,738 Auto and trucks (2-10 Years) 598,454 599,154 Manufacturing equipment (2-10 Years) 5,184,512 5,353,752 Buildings (5-30 Years) 8,262,924 8,082,483 Construction in process 2,252,766 2,001,045 Gross Property and Equipment 16,375,830 16,114,172 Less: accumulated depreciation (7,144,726) (7,120,775) Property and equipment, net $ 9,231,104 $ 8,993,397 For the three months ended July 31, 2019 and 2018, depreciation expense totaled $270,988 and $269,996, of which $232,587 and $230,658 were included in cost of revenues, respectively, and of which $38,401 and $39,338 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 6 - RELATED PARTY TRANSACT
NOTE 6 - RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jul. 31, 2019 | |
Notes | |
NOTE 6 - RELATED PARTY TRANSACTIONS | NOTE 6 - RELATED PARTY TRANSACTIONS Accounts receivable - related party and revenue - related party As of July 31, 2019 and April 30, 2019, $2,514,069 and $2,477,659 in accounts receivable - related party, respectively, were 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 July 31, 2019 and 2018, we recorded revenue - related party and cost of revenue – related party of $1,783,893 and $1,399,580, $1,648,239 and $1,214,610, 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 three months ended July 31, 2019 and 2018, we received advances from related parties for working capital that totaled $663,686 and $1,312,916, respectively, and we repaid to related parties a total of $947,046 and $682,451, respectively. In the three months ended July 31, 2019 and 2018, interest expense related to due to related parties amounted to $35,741 and $35,718, respectively, which were included in interest expense in the accompanying consolidated statements of operations and comprehensive loss, and in connection with the advances of $742,512 (RMB5,000,000) and $1,188,019 (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 7.0% and 6.3% per annum, respectively. The other advances bear no interest and are payable on demand. As of July 31, 2019, the balance we owed Pharmaceutical Corporation, Qufu Shengwang Import and Export and Mr. Weidong Chai, a management member of Qufu Shengren Pharmaceutical Co., Ltd., amounted to $5,243,619, $574,592 and $180,939, respectively. On April 30, 2019, the balances we owed to Pharmaceutical Corporation, Qufu Shengwang Import and Export and Mr. Weidong Chai amounted to $5,669,776, $557,976 and $180,769, respectively. As of July 31, 2019 and April 30, 2019, balances due to (from) related party activities consisted of the following: Shandong Shengwang Pharmaceutical Co., Ltd. Qufu Shengwang Import and Export Co., Ltd. Mr. Wedong Chai Total Balance due to related parties, April 30, 2019 $ 5,669,776 $ 557,976 $ 180,769 $ 6,408,521 Working capital advances from related parties 559,829 99,790 4,067 663,686 Repayments (876,724) (70,322) 0 (947,046) Effect of foreign currency exchange (109,262) (12,852) (3,897) (126,011) Balance due to related parties, July 31, 2019 $ 5,243,619 $ 574,592 $ 180,939 $ 5,999,150 |
NOTE 7 - PREPAID EXPENSES AND O
NOTE 7 - PREPAID EXPENSES AND OTHER CURRENT ASSETS | 3 Months Ended |
Jul. 31, 2019 | |
Notes | |
NOTE 7 - PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 7 - PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets as of July 31, 2019 and April 30, 2019 totaled $2,318,291 and $1,676,347, respectively. As of July 31, 2019, prepaid expenses and other current assets includes $1,611,011 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us, $14,530 for security deposit and $692,750 for business related employees' advances. As of April 30, 2019, prepaid expenses and other current assets includes $1,389,963 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us, $14,850 for security deposit and $271,534 for business related employees' advances. |
NOTE 8 - ACCOUNTS PAYABLE AND A
NOTE 8 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 3 Months Ended |
Jul. 31, 2019 | |
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 July 31, 2019 and April 30, 2019: Account July 31, 2019 (unaudited) April 30, 2019 Accounts payable $ 6,756,099 $ 5,298,580 Advanced from customers 229,340 26,921 Accrued salary payable 242,010 284,671 Tax payable 100,099 125,854 Deferred revenue 13,388 13,683 Other payable* 2,086,273 1,803,972 Total accounts payable and accrued expenses $ 9,427,209 $ 7,680,049 * As of on July 31, 2019, other payables consists of general liability, worker's compensation, and medical insurance payable of $510,793, consulting fee payable of $276,423, union and education fees payable of $128,849, interest payables for short-term loans of $502,435, advances from the employees of $403,625, security deposit for sub-contractor of $145,302 and other miscellaneous payables of $118,846. As of April 30, 2019, other payables consists of general liability, worker's compensation, and medical insurance payable of $448,528, consulting fee payable of $136,770, union and education fees payable of $131,688, interest payables for short-term loans of $765,061, advances from the employees of $221,081 and other miscellaneous payables of $100,844. |
NOTE 9 - LOAN PAYABLE
NOTE 9 - LOAN PAYABLE | 3 Months Ended |
Jul. 31, 2019 | |
Notes | |
NOTE 9 - LOAN PAYABLE | NOTE 9 -LOAN PAYABLE Short-term loan payable Short-term loans are obtained from various individual lenders that are due within one year for working capital purpose. These loans are unsecured and can be renewed with 10 days advance notice prior to maturity date. As of July 31, 2019 and April 30, 2019, short-term loans consisted of the following: July 31, 2019 (unaudited) April 30, 2019 Loan from Min Wu, an employee of Qufu Shengren, due on October 5, 2019, with an annual interest rate of 10%, renewed at October 6, 2018. $ 31,967 $ 32,671 Loans from Jianjun Yan, non-related individual, due on October 6, 2019, with an annual interest rate of 10% at October 7, 2017, renewed at on October 7, 2018. 1,163,581 1,189,207 Loan from Jianjun Yan, non-related individual, due on March 31, 2020, with annual interest rate of 4%, renewed at April 1, 2019. 1,184,737 1,210,829 Loan from Junzhen Zhang, non-related individual, due on October 5, 2019, with an annual interest rate of 10%, renewed at October 6, 2018. 23,248 23,760 Loan from Jian Chen, non-related individual, due on January 27, 2020 and April 11, 2020, bearing an annual interest rate of 10%, with the principle amount of RMB770,000 ($114,347) and RMB330,000 ($49,006), renewed on January 27, 2019 and April 11, 2019, respectively. 159,833 163,353 Loan from Qing Kong, non-related individual, due on March 6, 2020, with an annual interest rate of 10%, renewed on March 7, 2019. 77,359 79,063 Loan from Qing Kong, non-related individual, due on January 8, 2020, with an annual interest rate of 10%, renewed on January 9, 2019. 31,967 32,671 Loan from Guihai Chen, non-related individual, due on March 9, 2020, with an annual interest rate of 10%, renewed on March 10, 2019. 19,180 19,602 Loan from Guihai Chen, non-related individual, due on September 20, 2019, with an annual interest rate of 10%, renewed at September 21, 2018. 29,060 29,700 Loan Weifeng Kong, non-related individual, due on November 28, 2019, with an annual interest rate of 10%, renewed on November 29, 2018. 29,060 29,700 Loan Shidong Wang, non-related individual, due on March 8, 2020, with an annual interest rate of 4%, renewed on March 9, 2019. 1,571,590 1,606,200 Loan from Huagui Yong, non-related individual, due on April 8, 2020, with an annual interest rate of 6.3% at April 9, 2019. 72,651 74,251 Loan from Xuxu Gu, non-related individual, due on September 27, 2019, with an annual interest rate of 4% at September 28, 2017. 0 1,588,976 Loan Xuxu Gu, non-related individual, due on July 13, 2020, with an annual interest rate of 4% at July 14, 2018. * 421,377 0 Loan Yuehu Zhou, non-related individual, due on June 12, 2020, with an annual interest rate of 4% at June 13, 2018. * 1,307,722 0 Loan Mingbang Ma, non-related individual, due on May 22, 2020, with an annual interest rate of 4% at May 23, 2018. * 290,605 0 Loan Weiwei Lian, non-related individual, due on May 29, 2020, with an annual interest rate of 4% at May 30, 2018. * 1,453,024 0 Loan Guanghua Xia, non-related individual, due on June 8, 2020, with an annual interest rate of 4% at June 9, 2018. * 1,307,722 0 Total $ 9,174,683 $ 6,079,983 * The Company recorded these loans as long-term loans as of April 30, 2019. Long-term loan payable Long-term loans are obtained from various individual lenders that are due more than one year for working capital purpose. These loans are unsecured and can be renewed with one month advance notice prior to maturity date. As of July 31, 2019 and April 30, 2019, long-term loans consisted of the following: July 31, 2019 (unaudited) April 30, 2019 Loan from Xuxu Gu, non-related individual, due on March 8, 2019, with an annual interest rate of 4% at March 9, 2017, extended another two years at on March 9, 2019. $ 0 $ 1,603,825 Loan Xuxu Gu, non-related individual, due on July 13, 2020, with an annual interest rate of 4% at July 14, 2018. # 0 430,657 Loan Xuxu Gu, non-related individual, due on August 15, 2020, with an annual interest rate of 4% at August 16, 2018. 0 504,908 Loan from Dadong Mei, non-related individual, due on March 8, 2021, with an annual interest rate of 4%, renewed on March 9, 2019. 1,569,266 1,603,825 Loan Mingbang Ma, non-related individual, due on May 22, 2020, with an annual interest rate of 4% at May 23, 2018. # 0 297,005 Loan Weiwei Lian, non-related individual, due on May 29, 2020, with an annual interest rate of 4% at May 30, 2018. # 0 1,485,024 Loan Guanghua Xia, non-related individual, due on June 8, 2020, with an annual interest rate of 4% at June 9, 2018. # 0 1,336,521 Loan Guanghua Xia, non-related individual, due on December 31, 2020, with an annual interest rate of 4% at January 1, 2019. 406,847 415,807 Loan Guanghua Xia, non-related individual, due on January 10, 2021, with an annual interest rate of 4% at January 11, 2019. 813,693 831,613 Loan Yuehu Zhou, non-related individual, due on June 12, 2020, with an annual interest rate of 4% at June 13, 2018. # 0 1,336,521 Total: $ 2,789,806 $ 9,845,706 * The Company recorded these loans as short-term loans as of July 31, 2019. For the three months ended July 31, 2019 and 2018, interest expense related to short-term loans and long-term loans amounted to $144,787 and $149,351, respectively, which were included in interest expense in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss. |
NOTE 10 - SEGMENT INFORMATION
NOTE 10 - SEGMENT INFORMATION | 3 Months Ended |
Jul. 31, 2019 | |
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 July 31, 2019 and 2018; we accounted for two reportable business segments - (1) natural sweetener (stevioside), and (2) corporate and other pharmaceutical. Our reportable segments are strategic business units that offer different products and are managed separately based on the fundamental differences in their operations. Condensed financial information with respect to these reportable business segments for the three months ended July 31, 2019 and 2018 is as follows: Three Months Ended July 31, 2019 2018 Revenues: Stevioside - third party $ 4,527,666 $ 2,807,351 Stevioside - related party 1,783,893 1,399,580 Total Stevioside 6,311,559 4,206,931 Corporate and other – third party 578,516 790,229 Corporate and other – related party 0 0 Total Corporate and other 578,516 790,229 Total segment and consolidated revenues $ 6,890,075 $ 4,997,160 Interest expense: Stevioside $ 180,444 $ 184,994 Corporate and other 0 0 Total segment and consolidated interest expense $ 180,444 $ 184,994 Depreciation and amortization: Stevioside $ 199,222 $ 269,996 Corporate and other 71,766 0 Total segment and consolidated depreciation and amortization $ 270,988 $ 269,996 Income (loss) from continuing operations before income taxes: Stevioside $ (165,071) $ (692,904) Corporate and other 35,267 (409,638) Total loss from continuing operations before income taxes $ (129,804) $ (1,102,542) July 31, 2019 April 30, 2019 Segment property and equipment: Stevioside $ 8,091,286 $ 7,796,314 Corporate and other 1,139,818 1,197,083 Total property and equipment $ 9,231,104 $ 8,993,397 |
NOTE 11 - CONCENTRATIONS AND CR
NOTE 11 - CONCENTRATIONS AND CREDIT RISK | 3 Months Ended |
Jul. 31, 2019 | |
Notes | |
NOTE 11 - CONCENTRATIONS AND CREDIT RISK | NOTE 11 - CONCENTRATIONS AND CREDIT RISK (i) Customer Concentrations For the three months ended July 31, 2019 and 2018, customers accounting for 10% or more of the Company's revenue were as follows: Three Months Ended July 31, Customer 2019 2018 A (1) 25.9 % 28.0 % B 21.6 % - (1) Qufu Shengwang Import and Export Co., Ltd is a related party. (ii) Vendor Concentrations For the three months ended July 31, 2019 and 2018, suppliers accounting for 10% or more of the Company's purchase were as follows: Three Months Ended July 31, Supplier 2019 2018 A * 18.7 % B 10.8 % 45.2 % C 18.6 % * D 18.0 % * *Less than 10%. (iii) Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and trade accounts receivable. We place our cash with high credit quality financial institutions in the United States and the PRC. As of July 31, 2019, we had $684,127 of cash balance held in PRC banks, where there is no equivalent of federal deposit insurance as in the United States. As a result, cash held in PRC financial institutions is not insured. We have not experienced any losses in such accounts through July 31, 2019. Our cash position by geographic area was as follows: Country: July 31, 2019 April 30, 2019 United States $ 101,256 12.9 % $ 88,506 30.1 % China 684,127 87.1 % 205,693 69.9 % Total cash and cash equivalents $ 785,383 100.00 % $ 294,199 100.00 % Almost all of our sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, we believe that the concentration of credit risk with respect to trade accounts receivable is limited due to generally short payment terms. We also perform ongoing credit evaluations of our customers to help further reduce potential credit risk. |
NOTE 13 - SUBSEQUENT EVENTS
NOTE 13 - SUBSEQUENT EVENTS | 3 Months Ended |
Jul. 31, 2019 | |
Notes | |
NOTE 13 - SUBSEQUENT EVENTS | NOTE 12 - SUBSEQUENT EVENTS Our management has evaluated all activities subsequent to our balance sheet date through the issuance date of this report and concluded that no subsequent events have occurred that would require adjustments or disclosures to the accompanying unaudited condensed consolidated financial statements. |
NOTE 2 - SUMMARY OF SIGNIFICA_2
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: USE OF ESTIMATES (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
USE OF ESTIMATES | USE OF ESTIMATES The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the allowance for doubtful accounts, the allowance for obsolete inventory, the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets, and the value of stock-based compensation. Actual results could differ from those estimates. |
NOTE 2 - SUMMARY OF SIGNIFICA_3
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: CASH AND CASH EQUIVALENTS (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS We consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash and equivalents. As of July 31, 2019, we held $684,127 of our cash and cash equivalents with commercial banking institutions in the PRC, and $101,256 with banks in the United States. As of April 30, 2019, we held $294,199 of our cash and cash equivalents with commercial banking institution in PRC, and $88,506 in the United States. In China, there is no equivalent federal deposit insurance as in the United States, so the amounts held in banks in China are not insured. We have not experienced any losses in such bank accounts through July 31, 2019. |
NOTE 2 - SUMMARY OF SIGNIFICA_4
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ACCOUNTS RECEIVABLE (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
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. As of July 31, 2019 and April 30, 2019, the allowance for doubtful accounts was $76,475 and $78,159, respectively. |
NOTE 2 - SUMMARY OF SIGNIFICA_5
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: INVENTORIES (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
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 and net realizable value that can be estimated utilizing the weighted average method. A reserve is established when management determines that certain slow-moving inventories may be sold at below book value. These reserves are recorded based on estimates. 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 or estimated net realizable value. As of July 31, 2019 and April 30, 2019, the Company did not record a reserve for obsolete or slow-moving inventories. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record a write down of inventories for the difference between the lower of cost or estimated net realizable value. As of July 31, 2019 and April 30, 2019, the Company wrote down inventories in the amount of $0 and $999,548, respectively. |
NOTE 2 - SUMMARY OF SIGNIFICA_6
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: PROPERTY AND EQUIPMENT (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
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 SIGNIFICA_7
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: LONG-LIVED ASSETS (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
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 $20,076 and $0 at July 31, 2019 and April 30, 2019, respectively. |
NOTE 2 - SUMMARY OF SIGNIFICA_8
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: FAIR VALUE OF FINANCIAL INSTRUMENTS (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
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 SIGNIFICA_9
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: TAXES PAYABLE (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
TAXES PAYABLE | TAXES PAYABLE We are required to charge for and to collect value added taxes (VAT) on our sales on behalf of the PRC tax authority. We record VAT that we billed our customers as VAT payable. In addition, we are required to pay value added taxes on our primary purchases. We record VAT that is charged by our vendors as VAT receivable. We are required to file VAT return on a monthly basis with the PRC tax authority, in which we are entitled to claim the VAT that we charged by vendors as VAT credit and these credits can be applied to our VAT payable that we billed our customers. Accordingly, these VAT payable and receivable are presented as net amounts for financial statement purposes. Taxes payable as of July 31, 2019 and April 30, 2019 amounted to $100,099 and $125,854, respectively, consisted primarily of VAT taxes. |
NOTE 2 - SUMMARY OF SIGNIFIC_10
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: REVENUE RECOGNITION (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
REVENUE RECOGNITION | REVENUE RECOGNITION Pursuant to the guidance of ASC 606, we record revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. In accordance with ASC 606, we recognize revenues from the sale of stevia and other productions upon shipment and transfer of title based on the trade terms. All product sales with customer specific acceptance provisions are recognized upon customer acceptance and the delivery of the products. We report revenues net of applicable sales taxes and related surcharges. |
NOTE 2 - SUMMARY OF SIGNIFIC_11
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: GRANT INCOME (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
GRANT INCOME | GRANT INCOME Grants received from PRC government agencies are recognized as deferred grant income and recognized in the condensed consolidated statements of operations and comprehensive loss as and when they are earned for the specific research and development projects for which these grants are designated for. |
NOTE 2 - SUMMARY OF SIGNIFIC_12
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: INCOME TAXES (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
INCOME TAXES | INCOME TAXES The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes We file federal and state income tax returns in the United States for our corporate operations pursuant to the U.S. Internal Revenue Code of 1986, as amended, and file separate foreign tax returns for our Chinese subsidiaries pursuant to the China's Unified Corporate Income Tax Law. We apply the provisions of ASC 740-10-50, "Accounting for Uncertainty in Income Taxes", which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our consolidated financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company's liability for income taxes. Any such adjustment could be material to the Company's results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of July 31, 2019, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. |
NOTE 2 - SUMMARY OF SIGNIFIC_13
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BASIC AND DILUTED LOSS PER SHARE (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
BASIC AND DILUTED LOSS 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: For Three Months Ended July 31, 2019 2018 Numerator: Net Loss for basic and diluted attributable to common shareholders $ (383,235) $ (1,190,337) Net loss from continuing operations $ (129,804) $ (1,102,542) Net loss from discontinued operation (253,431) (87,795) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 Stock awards, options, and warrants 0 0 Denominator for diluted earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 Basic and diluted loss per common share: Net loss from continuing operations - basic and diluted $ (0.00) $ (0.01) Net loss from discontinued operations - basic and diluted (0.00) (0.00) Net loss per common share - basic and diluted $ (0.00) (0.01) |
NOTE 2 - SUMMARY OF SIGNIFIC_14
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: FOREIGN CURRENCY TRANSLATION (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
FOREIGN CURRENCY TRANSLATION | FOREIGN CURRENCY TRANSLATION Transactions and balances originally denominated in U.S. dollars are presented at their original amounts. Transactions and balances in other currencies are converted into U.S. dollars in accordance with ASC Section 830-20-35 and are included in determining net income or loss. The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company's operating subsidiaries is the Chinese Renminbi ("RMB"). In accordance with ASC 830-20-35, the consolidated financial statements were translated into United States dollars using balance sheet date rates of exchange for assets and liabilities, and average rates of exchange for the period for the income statements and cash flows. Equity accounts were stated at their historical rate. Net gains and losses resulting from foreign exchange transactions are included in the consolidated statements of operations. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in other comprehensive income or loss. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People's Bank of China (the "PBOC") or other institutions authorized to buy and sell foreign exchange. The exchange rate adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand. Translation of amounts from RMB into United States dollars ("$") was made at the following exchange rates for the respective periods: As of July 31, 2019 RMB 6.88 to $1.00 As of April 30, 2019 RMB 6.73 to $1.00 Three months ended July 31, 2019 RMB 6.88 to $1.00 Three months ended July 31, 2018 RMB 6.52 to $1.00 |
NOTE 2 - SUMMARY OF SIGNIFIC_15
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: COMPREHENSIVE LOSS (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
COMPREHENSIVE LOSS | COMPREHENSIVE LOSS Comprehensive loss is comprised of net loss and all changes to the statements of stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive loss for the three months ended July 31, 2019 and 2018 included net loss and unrealized gains (losses) from foreign currency translation adjustments. |
NOTE 2 - SUMMARY OF SIGNIFIC_16
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: CONCENTRATIONS OF CREDIT RISK (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
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. As of July 31, 2019, we had $684,127 of cash balance held in PRC banks, which is not insured. We have not experienced any losses in such accounts through July 31, 2019. 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 SIGNIFIC_17
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: STOCK-BASED COMPENSATION (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
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 SIGNIFIC_18
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RESEARCH AND DEVELOPMENT (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT Research and development costs are expensed as incurred and are included in general and administrative expenses in the accompanying statements of operations. Research and development costs are incurred on a project specific basis. Research and development costs were $306,551 and $231,766 for the three months ended July 31, 2019 and 2018, respectively. |
NOTE 2 - SUMMARY OF SIGNIFIC_19
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: SHIPPING COSTS (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
SHIPPING COSTS | SHIPPING COSTS Shipping costs are included in selling expenses and totaled $22,895 and $36,765 for the three months ended July 31, 2019 and 2018, respectively. |
NOTE 2 - SUMMARY OF SIGNIFIC_20
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ADVERTISING (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
ADVERTISING | ADVERTISING Advertising is expensed as incurred and is included in selling expenses and totaled $39,354 and $93,570 for the three months ended July 31, 2019 and 2018, respectively. |
NOTE 2 - SUMMARY OF SIGNIFIC_21
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RECLASSIFICATIONS (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
RECLASSIFICATIONS | RECLASSIFICATIONS Certain prior year amounts have been reclassified to conform to the current period presentation for amounts related to the discontinue operations (see Note 3). These reclassifications had no impact on net earnings and financial position. |
NOTE 2 - SUMMARY OF SIGNIFIC_22
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: SEGMENT REPORTING (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
SEGMENT REPORTING | SEGMENT REPORTING The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The Company's chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. |
NOTE 2 - SUMMARY OF SIGNIFIC_23
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Jul. 31, 2019 | |
Policies | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU 2014-09, " Revenue from contracts with Customers (Topic 606) In February 2018, the FASB issued ASU 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". These amendments provide financial statement preparers with an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of ASU 2018-02 is permitted, including adoption in any interim period for the public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company has adopted this guidance in fiscal 2019. In March 2018, the FASB issued ASU 2018-05, "Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118". The amendments in this ASU add SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 - the date on which the Tax Cuts and Jobs Act was signed into law. The amendments are effective upon addition to the FASB Accounting Standards Codification. The adoption of this guidance is did not have a material impact on our consolidated financial statements. A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, we have not determined whether implementation of such proposed standards would be material to our consolidated financial statements. |
NOTE 2 - SUMMARY OF SIGNIFIC_24
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BASIC AND DILUTED LOSS PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | For Three Months Ended July 31, 2019 2018 Numerator: Net Loss for basic and diluted attributable to common shareholders $ (383,235) $ (1,190,337) Net loss from continuing operations $ (129,804) $ (1,102,542) Net loss from discontinued operation (253,431) (87,795) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 Stock awards, options, and warrants 0 0 Denominator for diluted earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 Basic and diluted loss per common share: Net loss from continuing operations - basic and diluted $ (0.00) $ (0.01) Net loss from discontinued operations - basic and diluted (0.00) (0.00) Net loss per common share - basic and diluted $ (0.00) (0.01) |
NOTE 3 - DISCONTINUED OPERATI_2
NOTE 3 - DISCONTINUED OPERATIONS: Schedule of Discontinued Operations Balance Sheet (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Tables/Schedules | |
Schedule of Discontinued Operations Balance Sheet | July 31, 2019 April 30, 2019 Assets: Current assets: Cash $ 0 $ 426,766 Accounts receivable, net 0 322,902 Inventories, net 0 949,705 Due from related parties 0 2,308,159 Prepaid expenses and other 0 135,527 Total current assets 0 4,143,059 Property and equipment, net 0 985,630 Land use rights, net 0 1,795,362 Other long-term asset 0 144,714 Total assets $ 0 $ 7,068,765 Liabilities: Current liabilities: Accounts payable $ 0 $ 389,521 Accrued expenses and other liabilities 0 599,227 Total current liabilities 0 988,748 Long-term loans 0 947,445 Total liabilities * $ 0 $ 1,936,193 |
NOTE 3 - DISCONTINUED OPERATI_3
NOTE 3 - DISCONTINUED OPERATIONS: Schedule of Discontinued Operations Income Statement (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Tables/Schedules | |
Schedule of Discontinued Operations Income Statement | For the Three Months Ended July 31, 2019 2018 Revenues $ 733,441 $ 836,166 Cost of revenues 572,357 731,997 Gross profit 161,084 104,169 Operating expenses 172,142 192,484 Other income, net 8,958 520 Loss before income taxes 20,016 87,795 Income tax expense 0 0 Loss from discontinued operations 20,016 87,795 Loss from disposal, net of taxes 233,415 0 Total loss from discontinued operations $ 253,431 $ 87,795 For the three months ended July 31, 2019 and 2018, loss from discontinued operations amounted to $20,016 and $87,795. The Company realized a loss of $233,415 from the disposal of 100% equity of Qufu Shengwang, which was reflected as loss from sale of discontinued operations on the condensed consolidated statement of operations for the three months ended July 31, 2019. |
NOTE 4 - INVENTORIES_ Schedule
NOTE 4 - INVENTORIES: Schedule of Inventory, Current (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Tables/Schedules | |
Schedule of Inventory, Current | July 31, 2019 (unaudited) April 30, 2019 Raw materials $ 6,142,384 $ 5,639,260 Work in process 2,078,277 3,426,545 Finished goods 4,447,544 2,926,151 Inventories, gross 12,668,205 11,991,956 Less: reserve for obsolete inventory 0 0 Inventories, net $ 12,668,205 $ 11,991,956 |
NOTE 5 - PROPERTY AND EQUIPME_2
NOTE 5 - PROPERTY AND EQUIPMENT: Schedule of Property and equipment (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Tables/Schedules | |
Schedule of Property and equipment | July 31, 2019 (unaudited) April 30, 2019 (Estimated Life ) Office equipment (3-5 Years) $ 77,174 $ 77,738 Auto and trucks (2-10 Years) 598,454 599,154 Manufacturing equipment (2-10 Years) 5,184,512 5,353,752 Buildings (5-30 Years) 8,262,924 8,082,483 Construction in process 2,252,766 2,001,045 Gross Property and Equipment 16,375,830 16,114,172 Less: accumulated depreciation (7,144,726) (7,120,775) Property and equipment, net $ 9,231,104 $ 8,993,397 |
NOTE 8 - ACCOUNTS PAYABLE AND_2
NOTE 8 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES: Schedule of Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Tables/Schedules | |
Schedule of Accounts Payable and Accrued Liabilities | Account July 31, 2019 (unaudited) April 30, 2019 Accounts payable $ 6,756,099 $ 5,298,580 Advanced from customers 229,340 26,921 Accrued salary payable 242,010 284,671 Tax payable 100,099 125,854 Deferred revenue 13,388 13,683 Other payable* 2,086,273 1,803,972 Total accounts payable and accrued expenses $ 9,427,209 $ 7,680,049 |
NOTE 9 - LOAN PAYABLE_ Schedule
NOTE 9 - LOAN PAYABLE: Schedule of Short-term loan payable (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Tables/Schedules | |
Schedule of Short-term loan payable | July 31, 2019 (unaudited) April 30, 2019 Loan from Min Wu, an employee of Qufu Shengren, due on October 5, 2019, with an annual interest rate of 10%, renewed at October 6, 2018. $ 31,967 $ 32,671 Loans from Jianjun Yan, non-related individual, due on October 6, 2019, with an annual interest rate of 10% at October 7, 2017, renewed at on October 7, 2018. 1,163,581 1,189,207 Loan from Jianjun Yan, non-related individual, due on March 31, 2020, with annual interest rate of 4%, renewed at April 1, 2019. 1,184,737 1,210,829 Loan from Junzhen Zhang, non-related individual, due on October 5, 2019, with an annual interest rate of 10%, renewed at October 6, 2018. 23,248 23,760 Loan from Jian Chen, non-related individual, due on January 27, 2020 and April 11, 2020, bearing an annual interest rate of 10%, with the principle amount of RMB770,000 ($114,347) and RMB330,000 ($49,006), renewed on January 27, 2019 and April 11, 2019, respectively. 159,833 163,353 Loan from Qing Kong, non-related individual, due on March 6, 2020, with an annual interest rate of 10%, renewed on March 7, 2019. 77,359 79,063 Loan from Qing Kong, non-related individual, due on January 8, 2020, with an annual interest rate of 10%, renewed on January 9, 2019. 31,967 32,671 Loan from Guihai Chen, non-related individual, due on March 9, 2020, with an annual interest rate of 10%, renewed on March 10, 2019. 19,180 19,602 Loan from Guihai Chen, non-related individual, due on September 20, 2019, with an annual interest rate of 10%, renewed at September 21, 2018. 29,060 29,700 Loan Weifeng Kong, non-related individual, due on November 28, 2019, with an annual interest rate of 10%, renewed on November 29, 2018. 29,060 29,700 Loan Shidong Wang, non-related individual, due on March 8, 2020, with an annual interest rate of 4%, renewed on March 9, 2019. 1,571,590 1,606,200 Loan from Huagui Yong, non-related individual, due on April 8, 2020, with an annual interest rate of 6.3% at April 9, 2019. 72,651 74,251 Loan from Xuxu Gu, non-related individual, due on September 27, 2019, with an annual interest rate of 4% at September 28, 2017. 0 1,588,976 Loan Xuxu Gu, non-related individual, due on July 13, 2020, with an annual interest rate of 4% at July 14, 2018. * 421,377 0 Loan Yuehu Zhou, non-related individual, due on June 12, 2020, with an annual interest rate of 4% at June 13, 2018. * 1,307,722 0 Loan Mingbang Ma, non-related individual, due on May 22, 2020, with an annual interest rate of 4% at May 23, 2018. * 290,605 0 Loan Weiwei Lian, non-related individual, due on May 29, 2020, with an annual interest rate of 4% at May 30, 2018. * 1,453,024 0 Loan Guanghua Xia, non-related individual, due on June 8, 2020, with an annual interest rate of 4% at June 9, 2018. * 1,307,722 0 Total $ 9,174,683 $ 6,079,983 |
NOTE 9 - LOAN PAYABLE_ Schedu_2
NOTE 9 - LOAN PAYABLE: Schedule of Long-term loan payable (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Tables/Schedules | |
Schedule of Long-term loan payable | July 31, 2019 (unaudited) April 30, 2019 Loan from Xuxu Gu, non-related individual, due on March 8, 2019, with an annual interest rate of 4% at March 9, 2017, extended another two years at on March 9, 2019. $ 0 $ 1,603,825 Loan Xuxu Gu, non-related individual, due on July 13, 2020, with an annual interest rate of 4% at July 14, 2018. # 0 430,657 Loan Xuxu Gu, non-related individual, due on August 15, 2020, with an annual interest rate of 4% at August 16, 2018. 0 504,908 Loan from Dadong Mei, non-related individual, due on March 8, 2021, with an annual interest rate of 4%, renewed on March 9, 2019. 1,569,266 1,603,825 Loan Mingbang Ma, non-related individual, due on May 22, 2020, with an annual interest rate of 4% at May 23, 2018. # 0 297,005 Loan Weiwei Lian, non-related individual, due on May 29, 2020, with an annual interest rate of 4% at May 30, 2018. # 0 1,485,024 Loan Guanghua Xia, non-related individual, due on June 8, 2020, with an annual interest rate of 4% at June 9, 2018. # 0 1,336,521 Loan Guanghua Xia, non-related individual, due on December 31, 2020, with an annual interest rate of 4% at January 1, 2019. 406,847 415,807 Loan Guanghua Xia, non-related individual, due on January 10, 2021, with an annual interest rate of 4% at January 11, 2019. 813,693 831,613 Loan Yuehu Zhou, non-related individual, due on June 12, 2020, with an annual interest rate of 4% at June 13, 2018. # 0 1,336,521 Total: $ 2,789,806 $ 9,845,706 |
NOTE 10 - SEGMENT INFORMATION_
NOTE 10 - SEGMENT INFORMATION: Schedule of Segment Income Statement (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Tables/Schedules | |
Schedule of Segment Income Statement | Three Months Ended July 31, 2019 2018 Revenues: Stevioside - third party $ 4,527,666 $ 2,807,351 Stevioside - related party 1,783,893 1,399,580 Total Stevioside 6,311,559 4,206,931 Corporate and other – third party 578,516 790,229 Corporate and other – related party 0 0 Total Corporate and other 578,516 790,229 Total segment and consolidated revenues $ 6,890,075 $ 4,997,160 Interest expense: Stevioside $ 180,444 $ 184,994 Corporate and other 0 0 Total segment and consolidated interest expense $ 180,444 $ 184,994 Depreciation and amortization: Stevioside $ 199,222 $ 269,996 Corporate and other 71,766 0 Total segment and consolidated depreciation and amortization $ 270,988 $ 269,996 Income (loss) from continuing operations before income taxes: Stevioside $ (165,071) $ (692,904) Corporate and other 35,267 (409,638) Total loss from continuing operations before income taxes $ (129,804) $ (1,102,542) |
NOTE 10 - SEGMENT INFORMATION_2
NOTE 10 - SEGMENT INFORMATION: Schedule of Segment Property (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Tables/Schedules | |
Schedule of Segment Property | July 31, 2019 April 30, 2019 Segment property and equipment: Stevioside $ 8,091,286 $ 7,796,314 Corporate and other 1,139,818 1,197,083 Total property and equipment $ 9,231,104 $ 8,993,397 |
NOTE 11 - CONCENTRATIONS AND _2
NOTE 11 - CONCENTRATIONS AND CREDIT RISK: Schedule of Customer Concentrations (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Tables/Schedules | |
Schedule of Customer Concentrations | Three Months Ended July 31, Customer 2019 2018 A (1) 25.9 % 28.0 % B 21.6 % - |
NOTE 11 - CONCENTRATIONS AND _3
NOTE 11 - CONCENTRATIONS AND CREDIT RISK: Schedule of Vendor Concentrations (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Tables/Schedules | |
Schedule of Vendor Concentrations | Three Months Ended July 31, Supplier 2019 2018 A * 18.7 % B 10.8 % 45.2 % C 18.6 % * D 18.0 % * *Less than 10%. |
NOTE 11 - CONCENTRATIONS AND _4
NOTE 11 - CONCENTRATIONS AND CREDIT RISK: Schedule of Cash position by geographic area (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Tables/Schedules | |
Schedule of Cash position by geographic area | Country: July 31, 2019 April 30, 2019 United States $ 101,256 12.9 % $ 88,506 30.1 % China 684,127 87.1 % 205,693 69.9 % Total cash and cash equivalents $ 785,383 100.00 % $ 294,199 100.00 % |
NOTE 1 - ORGANIZATION AND OPE_2
NOTE 1 - ORGANIZATION AND OPERATIONS (Details) | Apr. 30, 2008USD ($) |
Details | |
Qufu Natural Green acquired a 60% interest in Qufu Shengwang | $ 4,026,851 |
NOTE 2 - SUMMARY OF SIGNIFIC_25
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: CASH AND CASH EQUIVALENTS (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
Cash and cash equivalents held in PRC | $ 684,127 | $ 294,199 |
Cash and cash equivalents held in USA | $ 101,256 | $ 88,506 |
NOTE 2 - SUMMARY OF SIGNIFIC_26
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ACCOUNTS RECEIVABLE (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
Allowance for Doubtful Accounts Receivable | $ 76,475 | $ 78,159 |
NOTE 2 - SUMMARY OF SIGNIFIC_27
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: INVENTORIES (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
Reserve for obsolete or slow-moving inventories | $ 0 | $ 999,548 |
NOTE 2 - SUMMARY OF SIGNIFIC_28
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: LONG-LIVED ASSETS (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
Loss on disposition of property and equipment | $ 20,076 | $ 0 |
NOTE 2 - SUMMARY OF SIGNIFIC_29
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: TAXES PAYABLE (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
VAT payable | $ 100,099 | $ 125,854 |
NOTE 2 - SUMMARY OF SIGNIFIC_30
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BASIC AND DILUTED LOSS PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Details | ||
Net loss attributable to Sunwin Stevia International, Inc. | $ (383,235) | $ (1,190,337) |
Numerator for basic EPS, Net loss from continuing operations | (129,804) | (1,102,542) |
Numerator for basic EPS, Net loss from discontinued operation | $ (253,431) | $ (87,795) |
Weighted Average Number of Shares Issued, Basic | 199,632,803 | 199,632,803 |
Weighted Average Number of Shares Outstanding, Diluted | 199,632,803 | 199,632,803 |
Continuing operations - basic and diluted | $ 0 | $ (0.01) |
Discontinued operations - basic and diluted | 0 | 0 |
Net loss per common share - basic and diluted | $ 0 | $ (0.01) |
NOTE 2 - SUMMARY OF SIGNIFIC_31
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: FOREIGN CURRENCY TRANSLATION (Details) | 3 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Apr. 30, 2019 | |
Details | |||
Foreign Currency Exchange Rate, Translation | 6.88 | 6.73 | |
Average exchange rates | 6.88 | 6.52 |
NOTE 2 - SUMMARY OF SIGNIFIC_32
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: CONCENTRATIONS OF CREDIT RISK (Details) | Jul. 31, 2019USD ($) |
Details | |
Cash in PRC Banks | $ 684,127 |
NOTE 2 - SUMMARY OF SIGNIFIC_33
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RESEARCH AND DEVELOPMENT (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Details | ||
Research and development included in general and administrative expenses | $ 306,551 | $ 231,766 |
NOTE 2 - SUMMARY OF SIGNIFIC_34
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: SHIPPING COSTS (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Details | ||
Shipping costs included in selling expenses | $ 22,895 | $ 36,765 |
NOTE 3 - DISCONTINUED OPERATI_4
NOTE 3 - DISCONTINUED OPERATIONS (Details) - USD ($) | Sep. 30, 2019 | Jul. 30, 2019 |
Details | ||
Cash consideration for Sale of Qufu Shengwang | $ 1,162,790 | |
Sale of Qufu Shengwang Payment | $ 436,046 | $ 726,744 |
NOTE 3 - DISCONTINUED OPERATI_5
NOTE 3 - DISCONTINUED OPERATIONS: Schedule of Discontinued Operations Balance Sheet (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
Qufu Shangwang Cash | $ 0 | $ 426,766 |
Qufu Shangwang Cash Accounts receivable | 0 | 322,902 |
Qufu Shangwang Inventories | 0 | 949,705 |
Qufu Shangwang Due from related parties | 0 | 2,308,159 |
Qufu Shangwang Prepaid expenses and other | 0 | 135,527 |
Qufu Shangwang Total current assets | 0 | 4,143,059 |
Qufu Shangwang Property and equipment | 0 | 985,630 |
Qufu Shangwang Land use rights | 0 | 1,795,362 |
Qufu Shangwang Other long-term asset | 0 | 144,714 |
Qufu Shangwang Asset | 0 | 7,068,765 |
Qufu Shangwang Accounts payable | 0 | 389,521 |
Qufu Shangwang Accrued expenses and other liabilities | 0 | 599,227 |
Qufu Shangwang Total current liabilities | 0 | 988,748 |
Qufu Shangwang Long-term loans | 0 | 947,445 |
Qufu Shangwang Total liabilities | $ 0 | $ 1,936,193 |
NOTE 3 - DISCONTINUED OPERATI_6
NOTE 3 - DISCONTINUED OPERATIONS: Schedule of Discontinued Operations Income Statement (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Details | ||
Qufu Shangwang Revenues | $ 733,441 | $ 836,166 |
Qufu Shangwang Cost of revenues | 572,357 | 731,997 |
Qufu Shangwang Gross profit | 161,084 | 104,169 |
Qufu Shangwang Operating expenses | 172,142 | 192,484 |
Qufu Shangwang Other income, net | 8,958 | 520 |
Qufu Shangwang Loss before income taxes | 20,016 | 87,795 |
Qufu Shangwang Income tax expense | 0 | 0 |
Qufu Shangwang Loss from discontinued operations | 20,016 | 87,795 |
Qufu Shangwang Loss from disposal, net of taxes | 233,415 | 0 |
Qufu Shangwang Total loss from discontinued operations | $ 253,431 | $ 87,795 |
NOTE 4 - INVENTORIES_ Schedul_2
NOTE 4 - INVENTORIES: Schedule of Inventory, Current (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
Raw materials | $ 6,142,384 | $ 5,639,260 |
Work in process | 2,078,277 | 3,426,545 |
Finished goods | 4,447,544 | 2,926,151 |
Inventory, Gross | 12,668,205 | 11,991,956 |
Reserve for obsolete inventory | 0 | 0 |
Inventories, net | $ 12,668,205 | $ 11,991,956 |
NOTE 5 - PROPERTY AND EQUIPME_3
NOTE 5 - PROPERTY AND EQUIPMENT: Schedule of Property and equipment (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
Office Equipment | $ 77,174 | $ 77,738 |
Auto and Trucks | 598,454 | 599,154 |
Machinery and Equipment, Gross | 5,184,512 | 5,353,752 |
Buildings and Improvements, Gross | 8,262,924 | 8,082,483 |
Construction in Progress, Gross | 2,252,766 | 2,001,045 |
Property, Plant and Equipment, Gross | 16,375,830 | 16,114,172 |
Property and equipment, net | $ 9,231,104 | $ 8,993,397 |
NOTE 5 - PROPERTY AND EQUIPME_4
NOTE 5 - PROPERTY AND EQUIPMENT (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Details | ||
Total Depreciation Expense | $ 270,988 | $ 269,996 |
Depreciation in Cost of Revenue | 232,587 | 230,658 |
Depreciation in General and administrative expenses | $ 38,401 | $ 39,338 |
NOTE 6 - RELATED PARTY TRANSA_2
NOTE 6 - RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Apr. 30, 2019 | |
Details | |||
Accounts receivable - related party Qufu Shengwang | $ 2,514,069 | $ 2,477,659 | |
Revenue from related party - Qufu Shengwang | 1,783,893 | $ 1,399,580 | |
Cost of Revenue from related party - Qufu Shengwang | 1,648,239 | 1,214,610 | |
Advances from related parties for working capital | 663,686 | 1,312,916 | |
Repaid to related parties for working capital | 947,046 | 682,451 | |
Interest expense related to due to related parties | 35,741 | $ 35,718 | |
Due to Pharmaceutical Corporation | 5,243,619 | 5,669,776 | |
Due to Qufu Shengwang | 574,592 | 557,976 | |
Due to Weidong Chai | 180,939 | 180,769 | |
Total Due to Related Party | 5,999,150 | $ 6,408,521 | |
Working capital advances from related parties - Shangdong | 559,829 | ||
Working capital advances from related parties - Qufu | 99,790 | ||
Working capital advances from related parties - Weidong Chai | 4,067 | ||
Working capital advances from related parties | 663,686 | ||
Repayments from related parties - Shandong | (876,724) | ||
Repayments from related parties - Qufu | (70,322) | ||
Repayments from related parties - Weidong Chai | 0 | ||
Repayments from related parties | (947,046) | ||
Effect of foreign currency exchange - Shangdong | (109,262) | ||
Effect of foreign currency exchange - Qufu | (12,852) | ||
Effect of foreign currency exchange - Weidong Chai | (3,897) | ||
Effect of foreign currency exchange | $ (126,011) |
NOTE 7 - PREPAID EXPENSES AND_2
NOTE 7 - PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
Prepaid expenses and other current assets | $ 2,318,291 | $ 1,676,347 |
Prepayments to suppliers | 1,611,011 | 1,389,963 |
Security deposit | 14,530 | 14,850 |
Business related employees' advances | $ 692,750 | $ 271,534 |
NOTE 8 - ACCOUNTS PAYABLE AND_3
NOTE 8 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES: Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
Accounts Payable | $ 6,756,099 | $ 5,298,580 |
Customer Advances, Current | 229,340 | 26,921 |
Accrued salary payable | 242,010 | 284,671 |
Taxes Payable, Current | 100,099 | 125,854 |
Deferred Revenue | 13,388 | 13,683 |
Accounts Payable, Other, Current | 2,086,273 | 1,803,972 |
Accounts payable and accrued expenses | $ 9,427,209 | $ 7,680,049 |
NOTE 8 - ACCOUNTS PAYABLE AND_4
NOTE 8 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
General liability, worker's compensation, and medical insurance payable | $ 510,793 | $ 448,528 |
Consulting fee payable | 276,423 | 136,770 |
Union and education fees payable | 128,849 | 131,688 |
Interest payables for short-term loans | 502,435 | 765,061 |
Advanced from the employees | 403,625 | 221,081 |
Security deposit for sub-contractor | 145,302 | |
Other miscellaneous payables | $ 118,846 | $ 100,844 |
NOTE 9 - LOAN PAYABLE_ Schedu_3
NOTE 9 - LOAN PAYABLE: Schedule of Short-term loan payable (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
Loan from Min Wu at 10% | $ 31,967 | $ 32,671 |
Loan from Jianjun Yan at 10% A | 1,163,581 | 1,189,207 |
Loan from Jianjun Yan at 4% B | 1,184,737 | 1,210,829 |
Loan from Junzhen Zhang | 23,248 | 23,760 |
Loan from Jian Chen | 159,833 | 163,353 |
Loan from Qing Kong A | 77,359 | 79,063 |
Loan from Qing Kong B | 31,967 | 32,671 |
Loan from Guihai Chen0318 | 19,180 | 19,602 |
Loan from Guihai Chen0918 | 29,060 | 29,700 |
Loan from Weifeng Kong | 29,060 | 29,700 |
Loan from Shidong Wang | 1,571,590 | 1,606,200 |
Loan from Huagui Yong | 72,651 | 74,251 |
Loan from Xuxu Gu A | 0 | 1,588,976 |
Loan from Xuxu Gu B | 421,377 | 0 |
Loan from Yuehu Zhou A | 1,307,722 | 0 |
Loan from Mingbang Ma A | 290,605 | 0 |
Loan from Weiwei Lian A | 1,453,024 | 0 |
Loan from Guanghua Xia A S | 1,307,722 | 0 |
Total Short Term Loan Payable | $ 9,174,683 | $ 6,079,983 |
NOTE 9 - LOAN PAYABLE_ Schedu_4
NOTE 9 - LOAN PAYABLE: Schedule of Long-term loan payable (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
Loan from Xuxu Gu 0319 | $ 0 | $ 1,603,825 |
Loan from Xuxu Gu 0720 | 0 | 430,657 |
Loan from Xuxu Gu 0820 | 0 | 504,908 |
Loan from Dadong Mei 0319 | 1,569,266 | 1,603,825 |
Loan from Mingbang Ma | 0 | 297,005 |
Loan from Weiwei Lian | 0 | 1,485,024 |
Loan from Guanghua XiaA | 0 | 1,336,521 |
Loan from Guanghua Xia | 406,847 | 415,807 |
Loan from Guanghua Xia B | 813,693 | 831,613 |
Loan from Yuehu Zhou | 0 | 1,336,521 |
Total Long Term Loan Payable | $ 2,789,806 | $ 9,845,706 |
NOTE 9 - LOAN PAYABLE (Details)
NOTE 9 - LOAN PAYABLE (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Details | ||
Interest expense related to short-term loans and long-term loans | $ 144,787 | $ 149,351 |
NOTE 10 - SEGMENT INFORMATION_3
NOTE 10 - SEGMENT INFORMATION: Schedule of Segment Income Statement (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Details | ||
Net revenues - Stevioside - third party | $ 4,527,666 | $ 2,807,351 |
Net revenues - Stevioside - related party | 1,783,893 | 1,399,580 |
Net revenues - Stevioside - Total | 6,311,559 | 4,206,931 |
Net revenues - Corporate - third party | 578,516 | 790,229 |
Net revenues - Corporate - related party | 0 | 0 |
Net revenues - Corporate - Total | 578,516 | 790,229 |
Net revenues - Total segment and consolidated revenues | 6,890,075 | 4,997,160 |
Interest income - Stevioside | 180,444 | 184,994 |
Interest income - Corporate | 0 | 0 |
Interest income - Total segment and consolidated interest expense | 180,444 | 184,994 |
Depreciation and amortization - Stevioside | 199,222 | 269,996 |
Depreciation and amortization - Corporate | 71,766 | 0 |
Depreciation and amortization - Total segment and consolidated depreciation and amortization | 270,988 | 269,996 |
Loss before taxes and noncontrolling interest - Stevioside | (165,071) | (692,904) |
Loss before taxes and noncontrolling interest - Corporate | 35,267 | (409,638) |
Income (loss) before income taxes - Total segment | $ (129,804) | $ (1,102,542) |
NOTE 10 - SEGMENT INFORMATION_4
NOTE 10 - SEGMENT INFORMATION: Schedule of Segment Property (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Details | ||
Segment assets-Stevioside | $ 8,091,286 | $ 7,796,314 |
Segment assets-Corporate and other | 1,139,818 | 1,197,083 |
Segment assets-Total consolidated assets | $ 9,231,104 | $ 8,993,397 |
NOTE 11 - CONCENTRATIONS AND _5
NOTE 11 - CONCENTRATIONS AND CREDIT RISK: Schedule of Customer Concentrations (Details) | 3 Months Ended |
Jul. 31, 2018 | |
Details | |
Customer A | 28.00% |
Customer B | 0.00% |
NOTE 11 - CONCENTRATIONS AND _6
NOTE 11 - CONCENTRATIONS AND CREDIT RISK: Schedule of Vendor Concentrations (Details) | 3 Months Ended |
Jul. 31, 2018 | |
Details | |
Supplier A | 18.70% |
Supplier B | 45.20% |
Supplier C | 0.00% |
Supplier D | 0.00% |