Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2020 | Sep. 14, 2020 | |
Details | ||
Registrant CIK | 0000806592 | |
Fiscal Year End | --04-30 | |
Registrant Name | SUNWIN STEVIA INTERNATIONAL, INC. | |
SEC Form | 10-Q | |
Period End date | Jul. 31, 2020 | |
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 | 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false |
Statement of Financial Position
Statement of Financial Position - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 875,632 | $ 1,137,920 |
Accounts receivable, net | 2,109,377 | 2,713,567 |
Accounts receivable - related party | 1,833,476 | 3,034,365 |
Inventories, net | 13,203,055 | 12,874,497 |
Prepaid expenses and other current assets | 1,024,203 | 693,552 |
Total Current Assets | 19,045,743 | 20,453,901 |
Property and equipment, net | 8,834,544 | 8,901,548 |
Total Assets | 27,880,287 | 29,355,449 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 10,816,147 | 8,533,131 |
Short-term loans | 2,739,032 | 3,378,380 |
Due to related parties | 2,878,273 | 5,072,451 |
Total Current Liabilities | 16,433,451 | 16,983,962 |
Total Liabilities | 16,433,451 | 16,983,962 |
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, 2020 and April 30, 2020, respectively | 199,633 | 199,633 |
Additional paid-in capital | 47,732,350 | 47,732,350 |
Accumulated deficit | (40,780,993) | (40,118,394) |
Accumulated other comprehensive income | 4,640,545 | 4,557,898 |
Total Sunwin Stevia International, Inc. Stockholders' Equity | 11,791,535 | 12,371,487 |
Noncontrolling interest | (344,699) | 0 |
Total Stockholders' Equity | 11,446,836 | 12,371,487 |
Total Liabilities and Stockholders' Equity | $ 27,880,287 | $ 29,355,449 |
Income Statement
Income Statement - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Details | ||
Revenues | $ 5,287,855 | $ 5,106,182 |
Revenues - related parties | 1,751,823 | 1,783,893 |
Total revenues | 7,039,678 | 6,890,075 |
Cost of revenues | 5,262,992 | 4,120,629 |
Cost of revenues - related parties | 1,609,508 | 1,648,239 |
Total cost of revenues | 6,872,500 | 5,768,868 |
Gross profit | 167,178 | 1,121,207 |
Operating expenses: | ||
Selling expenses | 310,915 | 374,432 |
General and administrative expenses | 473,176 | 402,362 |
Research and development expenses | 361,438 | 306,551 |
Total operating expenses, net | 1,145,529 | 1,083,345 |
Income (loss) from operations | (978,351) | 37,862 |
Other (expenses) income: | ||
Other (expenses) expenses | 1,065 | (1,759) |
Grant income | 566 | 14,537 |
Interest income | 231 | 84 |
Interest expense - related party | (16,807) | (35,741) |
Interest expense | (62,531) | (144,787) |
Total other expense | (77,476) | (167,666) |
Loss from continuing operations before income taxes | (1,055,827) | (129,804) |
Net loss from continuing operations | (1,055,827) | (129,804) |
Discontinued operations: | ||
Loss from discontinued operations, net of income tax | 0 | (20,016) |
Gain Loss from disposal of discontinued operations | 0 | (233,415) |
Loss from discontinued operations, net of income tax | 0 | (253,431) |
Net loss | (1,055,827) | (383,235) |
Less: net loss attributable to noncontrolling interest | (393,228) | 0 |
Net loss attributable to Sunwin Stevia International, Inc. | (662,599) | (383,235) |
Comprehensive loss: | ||
Net loss | (662,599) | (383,235) |
Foreign currency translation adjustment | 131,176 | 268,559 |
Total comprehensive loss | (531,423) | (114,676) |
Less: comprehensive loss attributable to noncontrolling interest | 48,529 | 0 |
Comprehensive loss attributable to Sunwin Stevia International, Inc. | $ (579,952) | $ (114,676) |
Earnings per common share attributable to Sunwin Stevia International, Inc.: | ||
Continuing operations - basic and diluted | $ 0 | $ 0 |
Discontinued operations - basic and diluted | 0 | 0 |
Net loss per common share attributable to Sunwin Stevia International, Inc. - basic and diluted | $ 0 | $ 0 |
Weighted average common shares outstanding - basic and diluted | 199,632,803 | 199,632,803 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Comprehensive Income | Noncontrolling Interest | Total |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Apr. 30, 2019 | $ 199,633 | $ 37,681,279 | $ (38,735,711) | $ 4,391,836 | $ 0 | $ 3,537,037 |
Foreign currency translation adjustment | 0 | 0 | 0 | 268,559 | 0 | 268,559 |
Balance, July 31, 2020 at Jul. 31, 2019 | 199,633 | 37,681,279 | (39,118,946) | 4,660,395 | 0 | 3,422,361 |
Net loss for the three months ended July 31, 2019 | 0 | 0 | (383,235) | 0 | 0 | (383,235) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Apr. 30, 2020 | 199,633 | 47,732,350 | (40,118,394) | 4,557,898 | 0 | 12,371,487 |
Net loss for the three months ended July 31, 2020 | 0 | 0 | (662,599) | 0 | (393,228) | (1,055,827) |
Foreign currency translation adjustment | 0 | 0 | 0 | 82,647 | 48,529 | 131,176 |
Balance, July 31, 2020 at Jul. 31, 2020 | $ 199,633 | $ 47,732,350 | $ (40,780,993) | $ 4,640,545 | $ (344,699) | $ 11,446,836 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,055,827) | $ (383,235) |
Loss from discontinued operations | 0 | (253,431) |
Net loss from continuing operations | (1,055,827) | (129,804) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation expense | 304,440 | 270,988 |
Loss on disposition of property and equipment | 0 | 20,076 |
Accounts receivable and notes receivable | 595,967 | (233,798) |
Accounts receivable - related party | 1,217,425 | (89,839) |
Inventories | (189,149) | (935,078) |
Prepaid expenses and other current assets | (290,138) | (820,060) |
Accounts payable and accrued expenses | 2,229,074 | 2,651,845 |
Taxes payable | (64,602) | (23,053) |
NET CASH PROVIDED BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | 2,747,190 | 711,277 |
NET CASH PROVIDED BY DISCONTINUED OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS | 0 | 1,453 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 2,747,190 | 712,731 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceed from disposal of discontinued operations | 726,839 | |
Purchases of property and equipment | (137,776) | (665,210) |
Proceed from disposal of equipment | 0 | 5,815 |
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES FROM CONTINUING OPERATIONS | (137,776) | 67,444 |
NET CASH USED IN INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS | 0 | 0 |
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES | (137,776) | 67,444 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of short term loans | (666,667) | 0 |
Advance from related parties | 3,055,118 | 663,686 |
Repayment of related party advances | (5,268,237) | (947,046) |
NET CASH USED IN FINANCING ACTIVITIES FROM CONTINUING OPERATIONS | (2,879,786) | (283,360) |
NET CASH USED IN FINANCING ACTIVITIES FROM DISCONTINUED OPERATIONS | 0 | (1,453) |
NET CASH USED IN FINANCING ACTIVITIES | (2,879,786) | (284,813) |
EFFECT OF EXCHANGE RATE ON CASH | 8,084 | (4,177) |
NET (DECREASE) INCREASE IN CASH | (262,288) | 491,184 |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 1,137,920 | 294,199 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 875,632 | 785,383 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||
Cash paid for income taxes | 0 | 0 |
Cash paid for interest | 16,782 | 31,329 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Property and equipment acquired on credit as payable | 1,362 | 74,989 |
Accrued interest payable to related parties | 4,356 | 27,978 |
Liabilities assumed in connection with sale of discontinued operations | $ 0 | $ 3,619,660 |
NOTE 1 - ORGANIZATION AND OPERA
NOTE 1 - ORGANIZATION AND OPERATIONS | 3 Months Ended |
Jul. 31, 2020 | |
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, such as Metformin. 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, 2020 and fiscal year 2020, our subsidiaries included in continuing operations and discontinued operations consisted of the following: - Sunwin Stevia International; - Sunwin USA, LLC ("Sunwin USA"), wholly owned by 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"), 100% owned by Qufu Natural Green. On April 30, 2020, the Company increased the total amount of capital of Qufu Shengren through a series of debt transfer and conversion agreements with investors, ownership of Qufu Natural Green became 61%; (see Note 12) - Qufu Shengwang Stevia Biology and Science Co., Ltd. ("Qufu Shengwang"), 100% owned by Qufu Natural Green. On July 30, 2019, Qufu Natural Green sold its 100% interest of Qufu Shengwang to a third party; and - Qufu Shengren Import and Export Co., Ltd. (Qufu Shengren Import and Export), wholly owned subsidiary of Qufu Shengren. 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. On July 10, 2019, our wholly owned subsidiary Qufu Shengren entered into a management agreement with Ru Yuan, an unaffiliated individual (the "Contractor"), to contract out the operation of the Metformin production line. In April 2020, management made the decision to increase the operating capital of Qufu Shengren from the original RMB 19,680,000 (approximately $2,800,000) to RMB 183,000,000 (approximately $26,000,000); this will allow the Company to better focus on our Stevia operation and increase investment in our research and production. Qufu Shengren Import and Export On October 9, 2019, Qufu Shengren invested RMB2,000,000 (approximately $288,000) in a new entity, Qufu Shengren Import and Export Co., Ltd., (Qufu Shengren Import and Export), a Chinese limited liability company, a 100% owned subsidiary of Qufu Shengren. Qufu Shengren Import and Export focuses on the export of our Stevia products, and the import and export of technology and other relevant products; we expect to increase operations in this subsidiary in the near future. 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 purchase 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 a 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 the fertilizer market. On July 30, 2019, Qufu Shengwang was sold to an unaffiliated individual (see Note 4). |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jul. 31, 2020 | |
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, 2020 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, 2020 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, 2020 contained herein has been derived from the audited consolidated financial statements as of April 30, 2020, 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 with discontinued operations and our subsidiaries for continuing operations include the following: - Qufu Natural Green; - Qufu Shengren; - Sunwin USA; and - Qufu Shengren Import and Export 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, 2020, we held $820,149 of our cash and cash equivalents with commercial banking institutions in the PRC, and $55,483 with banks in the United States. As of April 30, 2020, we held $1,054,090 of our cash and cash equivalents with commercial banking institution in PRC, and $83,830 in the United States. PRC banks protect consumers against loss if their bank or thrift institution fails, and each of our PRC bank account is insured up to RMB500,000 (approximately $71,000), As a result, cash held in PRC financial institutions of $721,996 and $946,274 is not insured as of July 31, 2020 and April 30, 2020, respectively. We have not experienced any losses in such bank accounts through July 31, 2020. 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, 2020 and April 30, 2020, the allowance for doubtful accounts was $75,460 and $74,665, respectively. INVENTORIES Inventories, consisting of raw materials, work in process, and finished goods related to our products, are stated at the lower of cost or estimated net realizable value that can be estimated utilizing the weighted moving 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. As of July 31, 2020, the Company did not record a reserve for 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, 2020 and April 30, 2020, the Company wrote down inventories of $202,903 and $113,155, 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 two to thirty years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. In accordance with paragraph 360-10-35-17 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC"), we examine the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Included in property and equipment is construction-in-progress which consisted of factory improvements and machinery pending installation and included the costs of construction, machinery and equipment, and or any interest charges arising from borrowings used to finance these assets during the period of construction or installation of the assets if applicable. No provision for depreciation is made on construction-in-progress until such time as the relevant assets are completed and ready for their intended use. LONG-LIVED ASSETS In accordance with ASC 360, we review and evaluate our long-lived assets, including property and equipment, intangible assets, and land use rights, for impairment or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets, including goodwill, if any. An impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of future cash flows from other asset groups. Our estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates. Based on our evaluation, we have determined certain long-lived assets that are no longer useful for our operations, and we recorded a loss on disposition of property and equipment of $0 and $19,842 at July 31, 2020 and April 30, 2020, 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 are 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, 2020 and April 30, 2020 amounted to $204,109 and $266,708, 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 unaudited 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. Identify the contract with a customer; Identify the performance obligations in the contract; Determine the transaction price; Allocate the transaction price to the performance obligations in the contract; and Recognize revenue when (or as) the entity satisfies a performance obligation. The Company is also a lessor, which is an entity that is lease underlying asset to the third party, The Companys lease revenue is recognized under ASC Topic 842, Leases, (ASC 842), which was adopted on May 1, 2019. In general, the Company commences rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. The Companys lease has been accounted for as operating lease. Rental revenue is recognized on a straight-line basis over the terms of the lease of five years. Actual amounts billed in accordance with the lease during any given period may have been higher or lower than the amount of rental revenue recognized for the period. The difference by which straight-line rental revenue exceeded rents billed in accordance with lease agreements is recorded as accounts receivable. The difference by which rents billed in accordance with lease agreements exceeded straight-line rental revenue is recorded as advances from customer. The Company does not offset lease income and lease expense. GRANT INCOME Grants received from PRC government agencies are recognized as deferred grant income and recognized in the unaudited 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, 2020, 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, 2020 2019 Numerator: Net Loss attributable to Sunwin Stevia International, Inc. $ (662,599) $ (383,235) Net loss from continuing operations $ (662,599) $ (129,804) Net loss from discontinued operation 0 (253,431) 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) $ (0.00) Net loss from discontinued operations - basic and diluted 0 (0.00) Net loss per common share - basic and diluted $ (0.00) (0.00) 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, 2020 RMB 6.97 to $1.00 As of April 30, 2020 RMB 7.05 to $1.00 Three months ended July 31, 2020 RMB 7.07 to $1.00 Three months ended July 31, 2019 RMB 6.88 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, 2020 and 2019 included net loss and unrealized gains from foreign currency translation adjustments. 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 $361,438 and $306,551 for the three months ended July 31, 2020 and 2019, respectively. SHIPPING COSTS Shipping costs are included in selling expenses and totaled $16,516 and $22,895 for the three months ended July 31, 2020 and 2019, respectively. ADVERTISING Advertising is expensed as incurred and is included in selling expenses and totaled $14,433 and $39,354 for the three months ended July 31, 2020 and 2019, 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 4). 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 December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU provides an exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. This update also (1) requires an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (2) requires an entity to evaluate when a step-up in the tax basis of goodwill should be considered part of the business combination in which goodwill was originally recognized for accounting purposes and when it should be considered a separate transaction, and (3) requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its 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 $1,056,000 for the three months ended July 31, 2020 and has a significant accumulated deficit of $40.8 million as of July 31, 2020. 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 identify and develop sources of funds. The outcome of these matters cannot be predicted at this time. There can be no assurance that any additional financings will be available to the Company on satisfactory terms and conditions, if at all. 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 - NONCONTROLLING INTERES
NOTE 3 - NONCONTROLLING INTEREST | 3 Months Ended |
Jul. 31, 2020 | |
Notes | |
NOTE 3 - NONCONTROLLING INTEREST | NOTE 3 - NONCONTROLLING INTEREST Noncontrolling interest on the consolidated balance sheets resulted from the consolidation of Shengren, a 61.3% owned subsidiary starting from April 30, 2020. An individual investor and Shandong Yulong Mining Group Co., Ltd. (Yulong) hold 38.4% and 0.3% of the equity interest in Shengren effective at the end of date, April 30, 2020, respectively, pursuant to a series of debt transfer and conversion agreements entered into on April 30, 2020 between seven individual creditors and three suppliers, an individual investor with Yulong and Qufu Shengren. Noncontrolling interest amounted to a deficit of $344,699 as of July 31, 2020. |
NOTE 4 - DISCONTINUED OPERATION
NOTE 4 - DISCONTINUED OPERATIONS | 3 Months Ended |
Jul. 31, 2020 | |
Notes | |
NOTE 4 - DISCONTINUED OPERATIONS | NOTE 4 - 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 $1,163,000) based on the estimated net book value as of July 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 $3,779,000), 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, and received the second installment of RMB3,000,000 on August 20, 2019. The Buyer settled all liabilities of Qufu Shengwang due to Natural Green by assuming the liabilities on behalf of Qufu Shengren in the amount of approximately RMB 26,000,000 (approximately $3,779,000) due to another third party. The Company did not have assets and liabilities on discontinued operations in the Company's condensed consolidated financial statements as of July 31, 2020 and April 30, 2020. The following table presents the results of discontinued operations in the three months ended July 31, 2020 and 2019: For the Three Months Ended July 31, 2020 2019 Revenues $ 0 $ 733,441 Cost of revenues 0 572,357 Gross profit 0 161,084 Operating expenses 0 172,142 Other income, net 0 8,958 Loss before income taxes 0 20,016 Income tax expense 0 0 Loss from discontinued operations 0 20,016 Loss from disposal, net of taxes 0 233,415 Total loss from discontinued operations $ 0 $ 253,431 For the three months ended July 31, 2020 and 2019, loss from discontinued operations amounted to $0 and $20,016. 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 5 - INVENTORIES
NOTE 5 - INVENTORIES | 3 Months Ended |
Jul. 31, 2020 | |
Notes | |
NOTE 5 - INVENTORIES | NOTE 5 - INVENTORIES As of July 31, 2020 and April 30, 2020, inventories consisted of the following: July 31, 2020 (unaudited) April 30, 2020 Raw materials $ 3,541,783 $ 4,676,361 Work in process 4,358,351 3,235,156 Finished goods 5,302,921 4,962,980 Inventories, gross 13,203,055 12,874,497 Less: reserve for obsolete inventory 0 0 Inventories, net $ 13,203,055 $ 12,874,497 |
NOTE 6 - PREPAID EXPENSES AND O
NOTE 6 - PREPAID EXPENSES AND OTHER CURRENT ASSETS | 3 Months Ended |
Jul. 31, 2020 | |
Notes | |
NOTE 6 - PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 6 - PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets as of July 31, 2020 and April 30, 2020 totaled $1,024,203 and $693,552, respectively. As of July 31, 2020, prepaid expenses and other current assets includes $841,201 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us, and $183,002 for business related employees' advances. As of April 30, 2020, prepaid expenses and other current assets includes $510,723 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us and $182,829 for business related employees' advances. |
NOTE 7 - PROPERTY AND EQUIPMENT
NOTE 7 - PROPERTY AND EQUIPMENT | 3 Months Ended |
Jul. 31, 2020 | |
Notes | |
NOTE 7 - PROPERTY AND EQUIPMENT | NOTE 7 - PROPERTY AND EQUIPMENT As of July 31, 2020 and April 30, 2020, property and equipment consisted of the following: (Estimated Life) July 31, 2020 (unaudited) April 30, 2020 Office equipment (3-15 Years) $ 398,210 $ 394,019 Auto and trucks (2-10 Years) 592,602 586,364 Manufacturing equipment (2-15 Years) 6,772,918 6,559,726 Buildings (5-30 Years) 9,349,881 9,248,227 Construction in process 7,917 7,834 Gross Property and Equipment 17,121,528 16,796,170 Less: accumulated depreciation (8,286,984) (7,894,622) Property and equipment, net $ 8,834,544 $ 8,901,548 For the three months ended July 31, 2020 and 2019, depreciation expense totaled $304,440 and $270,988, of which $282,725 and $232,587 were included in cost of revenues, respectively, and of which $21,716 and $38,401 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 8 - RELATED PARTY TRANSACT
NOTE 8 - RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jul. 31, 2020 | |
Notes | |
NOTE 8 - RELATED PARTY TRANSACTIONS | NOTE 8 - RELATED PARTY TRANSACTIONS Accounts receivable - related party and revenue - related party As of July 31, 2020 and April 30, 2020, $1,833,476 and $3,034,365 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, 2020 and 2019, we recorded revenue - related party and cost of revenue related party of $1,751,823 and $1,783,893, and $1,609,508 and $1,648,239, 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, 2020 and 2019, we received advances from related parties for working capital that totaled $3,055,118 and $663,686, respectively, and we repaid to related parties a total of $5,268,237 and $947,046, respectively. In the three months ended July 31, 2020 and 2019, interest expense related to due to related parties amounted to $16,807 and $35,741, respectively, which were included in interest expense in the accompanying condensed consolidated statements of operations and comprehensive loss, and in connection with the advances of RMB5,000,000 (approximately $717,000) and RMB8,000,000 (approximately $1,147,000) 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. On December 12, 2019 and August 9, 2020, we repaid in full amount of the above advance of RMB8,000,000 and RMB5,000,000 with accrued interests, respectively. On September 23, 2018, the Company borrowed a one-year loan of RMB1,110,000 (approximately $159,000) from Weidong Cai, a management member of Qufu Shengren, bearing an annual interest rate of 10%. On September 23, 2019, the parties extended the loan for another year, under the same terms and conditions, reclassified unpaid interest payable to the principal of this loan, resulting in an increase of principal from RMB1,110,000 (approximately $159,000) to RMB1,221,000 (approximately $175,000). As of July 31, 2020, the balance we owed Pharmaceutical Corporation, and Mr. Weidong Chai amounted to $3,275,854, and $190,023, respectively. Qufu Shengwang Import and Export owed the Company $587,604 as of July 31, 2020. On April 30, 2020, the balance we owed to Pharmaceutical Corporation, Qufu Shengwang Import and Export and Mr. Weidong Chai amounted to $3,981,915, $906,879, and $183,657, respectively. As of July 31, 2020 and April 30, 2020, balance 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, 2020 $ 3,981,915 $ 906,879 $ 183,657 $ 5,072,451 Working capital advances from related parties 0 3,050,762 4,355 3,055,117 Repayments (738,867) (4,529,370) 0 (5,268,237) Effect of foreign currency exchange 32,806 (15,875) 2,011 18,942 Balance due to related parties, July 31, 2020 $ 3,275,854 $ (587,604) $ 190,023 $ 2,878,273 |
NOTE 9 - OPERATING LEASE
NOTE 9 - OPERATING LEASE | 3 Months Ended |
Jul. 31, 2020 | |
Notes | |
NOTE 9 - OPERATING LEASE | NOTE 9 - OPERATING LEASE On July 10, 2019, we entered into the Metformin Production Line Operation Management Agreement (the Agreement) with Ru Yuan, an unaffiliated individual, to contract out the Metformin production line which was built by the Company. Under the terms of this agreement, Ru Yuan's (lessee) lease includes the fixed assets of Metformin production line including buildings, manufacturing equipment and construction in process. The lessee will pay to Qufu Shengren an annual contract fee of RMB3,000,000 (approximately $436,000) in July every year. On August 1, 2019, the Company (lessor) signed an addendum for Agreement with lessee to clarify the term of lease for five years, with conditional renewal options and the Company has the right to monitor operating and provide maintenance service for the underlying assets of the Metformin production line. The Company also has the right to terminate the Agreement if lessee fails to make payment timely. Under our analysis with the new lease standard, this lease agreement is classified as a cancellable operating lease. The Company received a total amount of RMB3,000,000 lease payment and the lease deposit of RMB1,000,000 as guarantee in 2019. The Company recorded a revenue of $308,770 from this operating lease in fiscal 2020, and the Company recorded a revenue of $97,392 from this operating lease for the first quarter of fiscal 2021. The Company received the second year's lease payment in August 2020. |
NOTE 10 - ACCOUNTS PAYABLE AND
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 3 Months Ended |
Jul. 31, 2020 | |
Notes | |
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses included the following as of July 31, 2020 and April 30, 2020: Account July 31, 2020 (unaudited) April 30, 2020 Accounts payable $ 8,064,960 $ 6,443,200 Advanced from customers 67,268 172,512 Accrued salary payable 256,991 142,199 Tax payable 204,109 266,708 Other payable* 2,222,819 1,508,512 Total accounts payable and accrued expenses $ 10,816,147 $ 8,533,131 * As of on July 31, 2020, other payables consists of general liability, worker's compensation, and medical insurance payable of $404,780, consulting fee payable of $212,238, union and education fees payable of $127,139, interest payables for short-term loans of $325,831, safety production fund payable of $171,083, advances from the employees of $284,453, security deposit for sub-contractor of $143,373 and other miscellaneous payables of $553,922. As of April 30, 2020, other payables consists of general liability, worker's compensation, and medical insurance payable of $409,811, consulting and service fee payable of $256,304, union and education fees payable of $125,800, interest payables for short-term loans of $129,976, safety production fund payable of $140,274, advances from the employees of $98,775, deposit for operating lease of $141,864 and other miscellaneous payables of $205,708. |
NOTE 11 - LOAN PAYABLE
NOTE 11 - LOAN PAYABLE | 3 Months Ended |
Jul. 31, 2020 | |
Notes | |
NOTE 11 - LOAN PAYABLE | NOTE 11 -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, 2020 and April 30, 2020, short-term loans consisted of the following: July 31, 2020 (unaudited) April 30, 2020 Loan from Min Wu, an employee of Qufu Shengren, due on October 5, 2020, with an annual interest rate of 10%, renewed at October 6, 2019. $ 31,542 $ 31,210 Loans from Jianjun Yan, non-related individual, due on October 6, 2020, with an annual interest rate of 10% at October 7, 2017, renewed at on October 7, 2019. 1,269,928 1,256,562 Loan from Jianjun Yan, non-related individual, due on March 31, 2021, with annual interest rate of 4%, renewed at April 1, 2020. 713,956 1,202,965 Loan from Junzhen Zhang, non-related individual, due on October 5, 2020, with an annual interest rate of 10%, renewed at October 6, 2019. 22,940 22,698 Loan from Jian Chen, non-related individual, due on January 27, 2021 and April 11, 2021, bearing an annual interest rate of 10%, with the principal amount of RMB770,000 ($109,236) and RMB440,000 ($62,420), renewed on January 27, 2020 and April 11, 2020, respectively. The Company repaid off these loans and accrued interest to him as of July 31, 2020. 0 171,656 Loan from Qing Kong, non-related individual, due on March 6, 2021, with an annual interest rate of 10%, renewed on March 7, 2020. 83,157 82,281 Loan from Qing Kong, non-related individual, due on January 8, 2021, with an annual interest rate of 10%, renewed on January 9, 2020. 34,696 34,331 Loan from Guihai Chen, non-related individual, due on March 9, 2021, with an annual interest rate of 10%, renewed on March 10, 2020. 20,789 20,570 Loan from Guihai Chen, non-related individual, due on September 20, 2020, with an annual interest rate of 10%, renewed at September 21, 2019. 31,542 31,210 Loan Weifeng Kong, non-related individual, due on November 28, 2020, with an annual interest rate of 10%, renewed on November 29, 2019. 28,675 28,373 Loan from Huagui Yong, non-related individual, due on April 8, 2021, with an annual interest rate of 6.3% at April 9, 2020. 71,687 70,932 Loan from Guohui Zhang, non-related individual, due on January 16, 2021, with an annual interest rate of 4% at January 17, 2020. 430,120 425,592 Total $ 2,739,032 $ 3,378,380 For the three months ended July 31, 2020 and 2019, interest expense related to short-term loans amounted to $62,531 and $144,787, respectively, which were included in interest expense in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss. |
NOTE 12 - STOCKHOLDERS' EQUITY
NOTE 12 - STOCKHOLDERS' EQUITY | 3 Months Ended |
Jul. 31, 2020 | |
Notes | |
NOTE 12 - STOCKHOLDERS' EQUITY | NOTE 12 - STOCKHOLDERS' EQUITY As of July 31, 2020, we are authorized to issue 200,000,000 shares of common stock. We had 199,632,803 shares issued and outstanding as of July 31, 2020 and April 30, 2020. In April 2020, management made the decision to increase the operating capital of Qufu Shengren from the original RMB 19,680,000 (approximately $2,800,000) to RMB 183,000,000 (approximately $26,000,000), this will allow the Company to better focus on our Stevia operation and increase investment in our research and production. The increase of capital will come from additional funding of RMB 92,470,000 (approximately $13,100,000) from Qufu Natural Green, and RMB 70,850,000 (approximately $10,000,000) debt to equity conversion of multiple creditors. On April 30, 2020, seven individual creditors and three suppliers, an individual investor and Qufu Shengren entered into a series of debt transfer and conversion agreements, the individual creditors and suppliers agreed to transfer the full amount of their receivable, including principal and interest due from Qufu Shengren, at full value, to the individual investor. The individual investor then converted the full amount of the debts into equity and transferred a part of that equity to Shangdong Yulong Mining Group Co., Ltd. ("Yulong"). The individual investor and Yulong became minority shareholders of Qufu Shengren as of April 30, 2020, accounting for 38.4% and 0.3%, respectively. |
NOTE 13 - SEGMENT INFORMATION
NOTE 13 - SEGMENT INFORMATION | 3 Months Ended |
Jul. 31, 2020 | |
Notes | |
NOTE 13 - SEGMENT INFORMATION | NOTE 13 - SEGMENT INFORMATION The following information is presented in accordance with ASC Topic 280, "Segment Reporting", for the three months ended July 31, 2020 and 2019; 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, 2020 and 2019 is as follows: Three Months Ended July 31, 2020 2019 Revenues: Stevioside - third party $ 5,190,463 $ 4,527,666 Stevioside - related party 1,751,823 1,783,893 Total Stevioside 6,942,286 6,311,559 Corporate and other third party 97,392 578,516 Corporate and other related party 0 0 Total Corporate and other 97,392 578,516 Total segment and consolidated revenues $ 7,039,678 $ 6,890,075 Interest expense: Stevioside $ 79,107 $ 180,444 Corporate and other 0 0 Total segment and consolidated interest expense $ 79,107 $ 180,444 Depreciation and amortization: Stevioside $ 253,776 $ 199,222 Corporate and other 50,664 71,766 Total segment and consolidated depreciation and amortization $ 304,440 $ 270,988 Income (loss) from continuing operations before income taxes: Stevioside $ (1,064,253) $ (165,071) Corporate and other 8,426 35,267 Total loss from continuing operations before income taxes $ (1,055,827) $ (129,804) July 31,2020 April 30,2020 Segment property and equipment: Stevioside $ 6,994,948 $ 6,976,153 Corporate and other 1,839,596 1,925,395 Total property and equipment $ 8,834,544 $ 8,901,548 |
NOTE 14 - CONCENTRATIONS AND CR
NOTE 14 - CONCENTRATIONS AND CREDIT RISK | 3 Months Ended |
Jul. 31, 2020 | |
Notes | |
NOTE 14 - CONCENTRATIONS AND CREDIT RISK | NOTE 14 - CONCENTRATIONS AND CREDIT RISK (i) Customer Concentrations For the three months ended July 31, 2020 and 2019, customers accounting for 10% or more of the Company's revenue were as follows: Three Months Ended July 31, Customer 2020 2019 A (1) 24.9% 25.9% B 0 21.6% C 37.1% * (1) * Less than 10%. (ii) Vendor Concentrations For the three months ended July 31, 2020 and 2019, suppliers accounting for 10% or more of the Company's purchase were as follows: Three Months Ended July 31, Supplier 2020 2019 A 27.2% 0 B 18.0% 10.8% C 10.1% 18.6% D 0 18.0% E 10.8% 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, 2020 and April 30, 2020, we had $820,149 and $1,054,090 of cash balance held in PRC banks, respectively. PRC banks protect consumers against loss if their bank or thrift institution fails, and each of our PRC bank account is insured up to RMB500,000 (approximately $71,000). As a result, cash held in PRC financial institutions of $721,996 and $946,274 are not insured as of July 31, 2020 and April 30, 2020. We have not experienced any losses in such accounts through July 31, 2020. Our cash position by geographic area was as follows: Country: July 31, 2020 April 30, 2020 United States $ 55,483 6.3% $ 83,830 7.4% China 820,149 93.7% 1,054,090 92.6% Total cash and cash equivalents $ 875,632 100.00% $ 1,137,920 100.00% 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 15 - SUBSEQUENT EVENTS
NOTE 15 - SUBSEQUENT EVENTS | 3 Months Ended |
Jul. 31, 2020 | |
Notes | |
NOTE 15 - SUBSEQUENT EVENTS | NOTE 15 - 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, 2020 | |
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, 2020 | |
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, 2020, we held $820,149 of our cash and cash equivalents with commercial banking institutions in the PRC, and $55,483 with banks in the United States. As of April 30, 2020, we held $1,054,090 of our cash and cash equivalents with commercial banking institution in PRC, and $83,830 in the United States. PRC banks protect consumers against loss if their bank or thrift institution fails, and each of our PRC bank account is insured up to RMB500,000 (approximately $71,000), As a result, cash held in PRC financial institutions of $721,996 and $946,274 is not insured as of July 31, 2020 and April 30, 2020, respectively. We have not experienced any losses in such bank accounts through July 31, 2020. |
NOTE 2 - SUMMARY OF SIGNIFICA_4
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ACCOUNTS RECEIVABLE (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
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, 2020 and April 30, 2020, the allowance for doubtful accounts was $75,460 and $74,665, respectively. |
NOTE 2 - SUMMARY OF SIGNIFICA_5
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: INVENTORIES (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
Policies | |
INVENTORIES | INVENTORIES Inventories, consisting of raw materials, work in process, and finished goods related to our products, are stated at the lower of cost or estimated net realizable value that can be estimated utilizing the weighted moving 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. As of July 31, 2020, the Company did not record a reserve for 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, 2020 and April 30, 2020, the Company wrote down inventories of $202,903 and $113,155, respectively. |
NOTE 2 - SUMMARY OF SIGNIFICA_6
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: PROPERTY AND EQUIPMENT (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
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 two to thirty years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. In accordance with paragraph 360-10-35-17 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC"), we examine the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Included in property and equipment is construction-in-progress which consisted of factory improvements and machinery pending installation and included the costs of construction, machinery and equipment, and or any interest charges arising from borrowings used to finance these assets during the period of construction or installation of the assets if applicable. No provision for depreciation is made on construction-in-progress until such time as the relevant assets are completed and ready for their intended use. |
NOTE 2 - SUMMARY OF SIGNIFICA_7
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: LONG-LIVED ASSETS (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
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 $0 and $19,842 at July 31, 2020 and April 30, 2020, 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, 2020 | |
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, 2020 | |
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 are 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, 2020 and April 30, 2020 amounted to $204,109 and $266,708, 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, 2020 | |
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 unaudited 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. Identify the contract with a customer; Identify the performance obligations in the contract; Determine the transaction price; Allocate the transaction price to the performance obligations in the contract; and Recognize revenue when (or as) the entity satisfies a performance obligation. The Company is also a lessor, which is an entity that is lease underlying asset to the third party, The Companys lease revenue is recognized under ASC Topic 842, Leases, (ASC 842), which was adopted on May 1, 2019. In general, the Company commences rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. The Companys lease has been accounted for as operating lease. Rental revenue is recognized on a straight-line basis over the terms of the lease of five years. Actual amounts billed in accordance with the lease during any given period may have been higher or lower than the amount of rental revenue recognized for the period. The difference by which straight-line rental revenue exceeded rents billed in accordance with lease agreements is recorded as accounts receivable. The difference by which rents billed in accordance with lease agreements exceeded straight-line rental revenue is recorded as advances from customer. The Company does not offset lease income and lease expense. |
NOTE 2 - SUMMARY OF SIGNIFIC_11
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: GRANT INCOME (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
Policies | |
GRANT INCOME | GRANT INCOME Grants received from PRC government agencies are recognized as deferred grant income and recognized in the unaudited 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, 2020 | |
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, 2020, 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, 2020 | |
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, 2020 2019 Numerator: Net Loss attributable to Sunwin Stevia International, Inc. $ (662,599) $ (383,235) Net loss from continuing operations $ (662,599) $ (129,804) Net loss from discontinued operation 0 (253,431) 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) $ (0.00) Net loss from discontinued operations - basic and diluted 0 (0.00) Net loss per common share - basic and diluted $ (0.00) (0.00) |
NOTE 2 - SUMMARY OF SIGNIFIC_14
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: FOREIGN CURRENCY TRANSLATION (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
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, 2020 RMB 6.97 to $1.00 As of April 30, 2020 RMB 7.05 to $1.00 Three months ended July 31, 2020 RMB 7.07 to $1.00 Three months ended July 31, 2019 RMB 6.88 to $1.00 |
NOTE 2 - SUMMARY OF SIGNIFIC_15
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: COMPREHENSIVE LOSS (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
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, 2020 and 2019 included net loss and unrealized gains from foreign currency translation adjustments. |
NOTE 2 - SUMMARY OF SIGNIFIC_16
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: STOCK-BASED COMPENSATION (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
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_17
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RESEARCH AND DEVELOPMENT (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
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 $361,438 and $306,551 for the three months ended July 31, 2020 and 2019, respectively. |
NOTE 2 - SUMMARY OF SIGNIFIC_18
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: SHIPPING COSTS (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
Policies | |
SHIPPING COSTS | SHIPPING COSTS Shipping costs are included in selling expenses and totaled $16,516 and $22,895 for the three months ended July 31, 2020 and 2019, respectively. |
NOTE 2 - SUMMARY OF SIGNIFIC_19
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ADVERTISING (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
Policies | |
ADVERTISING | ADVERTISING Advertising is expensed as incurred and is included in selling expenses and totaled $14,433 and $39,354 for the three months ended July 31, 2020 and 2019, respectively. |
NOTE 2 - SUMMARY OF SIGNIFIC_20
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RECLASSIFICATIONS (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
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 4). These reclassifications had no impact on net earnings and financial position. |
NOTE 2 - SUMMARY OF SIGNIFIC_21
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: SEGMENT REPORTING (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
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_22
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
Policies | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU provides an exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. This update also (1) requires an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (2) requires an entity to evaluate when a step-up in the tax basis of goodwill should be considered part of the business combination in which goodwill was originally recognized for accounting purposes and when it should be considered a separate transaction, and (3) requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its 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_23
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, 2020 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | For Three Months Ended July 31, 2020 2019 Numerator: Net Loss attributable to Sunwin Stevia International, Inc. $ (662,599) $ (383,235) Net loss from continuing operations $ (662,599) $ (129,804) Net loss from discontinued operation 0 (253,431) 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) $ (0.00) Net loss from discontinued operations - basic and diluted 0 (0.00) Net loss per common share - basic and diluted $ (0.00) (0.00) |
NOTE 4 - DISCONTINUED OPERATI_2
NOTE 4 - DISCONTINUED OPERATIONS: Schedule of Discontinued Operations Income Statement (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Tables/Schedules | |
Schedule of Discontinued Operations Income Statement | For the Three Months Ended July 31, 2020 2019 Revenues $ 0 $ 733,441 Cost of revenues 0 572,357 Gross profit 0 161,084 Operating expenses 0 172,142 Other income, net 0 8,958 Loss before income taxes 0 20,016 Income tax expense 0 0 Loss from discontinued operations 0 20,016 Loss from disposal, net of taxes 0 233,415 Total loss from discontinued operations $ 0 $ 253,431 |
NOTE 5 - INVENTORIES_ Schedule
NOTE 5 - INVENTORIES: Schedule of Inventory, Current (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Tables/Schedules | |
Schedule of Inventory, Current | July 31, 2020 (unaudited) April 30, 2020 Raw materials $ 3,541,783 $ 4,676,361 Work in process 4,358,351 3,235,156 Finished goods 5,302,921 4,962,980 Inventories, gross 13,203,055 12,874,497 Less: reserve for obsolete inventory 0 0 Inventories, net $ 13,203,055 $ 12,874,497 |
NOTE 7 - PROPERTY AND EQUIPME_2
NOTE 7 - PROPERTY AND EQUIPMENT: Schedule of Property and equipment (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Tables/Schedules | |
Schedule of Property and equipment | (Estimated Life) July 31, 2020 (unaudited) April 30, 2020 Office equipment (3-15 Years) $ 398,210 $ 394,019 Auto and trucks (2-10 Years) 592,602 586,364 Manufacturing equipment (2-15 Years) 6,772,918 6,559,726 Buildings (5-30 Years) 9,349,881 9,248,227 Construction in process 7,917 7,834 Gross Property and Equipment 17,121,528 16,796,170 Less: accumulated depreciation (8,286,984) (7,894,622) Property and equipment, net $ 8,834,544 $ 8,901,548 |
NOTE 10 - ACCOUNTS PAYABLE AN_2
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES: Schedule of Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Tables/Schedules | |
Schedule of Accounts Payable and Accrued Liabilities | Account July 31, 2020 (unaudited) April 30, 2020 Accounts payable $ 8,064,960 $ 6,443,200 Advanced from customers 67,268 172,512 Accrued salary payable 256,991 142,199 Tax payable 204,109 266,708 Other payable* 2,222,819 1,508,512 Total accounts payable and accrued expenses $ 10,816,147 $ 8,533,131 |
NOTE 11 - LOAN PAYABLE_ Schedul
NOTE 11 - LOAN PAYABLE: Schedule of loan payable (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Tables/Schedules | |
Schedule of loan payable | July 31, 2020 (unaudited) April 30, 2020 Loan from Min Wu, an employee of Qufu Shengren, due on October 5, 2020, with an annual interest rate of 10%, renewed at October 6, 2019. $ 31,542 $ 31,210 Loans from Jianjun Yan, non-related individual, due on October 6, 2020, with an annual interest rate of 10% at October 7, 2017, renewed at on October 7, 2019. 1,269,928 1,256,562 Loan from Jianjun Yan, non-related individual, due on March 31, 2021, with annual interest rate of 4%, renewed at April 1, 2020. 713,956 1,202,965 Loan from Junzhen Zhang, non-related individual, due on October 5, 2020, with an annual interest rate of 10%, renewed at October 6, 2019. 22,940 22,698 Loan from Jian Chen, non-related individual, due on January 27, 2021 and April 11, 2021, bearing an annual interest rate of 10%, with the principal amount of RMB770,000 ($109,236) and RMB440,000 ($62,420), renewed on January 27, 2020 and April 11, 2020, respectively. The Company repaid off these loans and accrued interest to him as of July 31, 2020. 0 171,656 Loan from Qing Kong, non-related individual, due on March 6, 2021, with an annual interest rate of 10%, renewed on March 7, 2020. 83,157 82,281 Loan from Qing Kong, non-related individual, due on January 8, 2021, with an annual interest rate of 10%, renewed on January 9, 2020. 34,696 34,331 Loan from Guihai Chen, non-related individual, due on March 9, 2021, with an annual interest rate of 10%, renewed on March 10, 2020. 20,789 20,570 Loan from Guihai Chen, non-related individual, due on September 20, 2020, with an annual interest rate of 10%, renewed at September 21, 2019. 31,542 31,210 Loan Weifeng Kong, non-related individual, due on November 28, 2020, with an annual interest rate of 10%, renewed on November 29, 2019. 28,675 28,373 Loan from Huagui Yong, non-related individual, due on April 8, 2021, with an annual interest rate of 6.3% at April 9, 2020. 71,687 70,932 Loan from Guohui Zhang, non-related individual, due on January 16, 2021, with an annual interest rate of 4% at January 17, 2020. 430,120 425,592 Total $ 2,739,032 $ 3,378,380 |
NOTE 13 - SEGMENT INFORMATION_
NOTE 13 - SEGMENT INFORMATION: Schedule of Segment Income Statement (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Tables/Schedules | |
Schedule of Segment Income Statement | Three Months Ended July 31, 2020 2019 Revenues: Stevioside - third party $ 5,190,463 $ 4,527,666 Stevioside - related party 1,751,823 1,783,893 Total Stevioside 6,942,286 6,311,559 Corporate and other third party 97,392 578,516 Corporate and other related party 0 0 Total Corporate and other 97,392 578,516 Total segment and consolidated revenues $ 7,039,678 $ 6,890,075 Interest expense: Stevioside $ 79,107 $ 180,444 Corporate and other 0 0 Total segment and consolidated interest expense $ 79,107 $ 180,444 Depreciation and amortization: Stevioside $ 253,776 $ 199,222 Corporate and other 50,664 71,766 Total segment and consolidated depreciation and amortization $ 304,440 $ 270,988 Income (loss) from continuing operations before income taxes: Stevioside $ (1,064,253) $ (165,071) Corporate and other 8,426 35,267 Total loss from continuing operations before income taxes $ (1,055,827) $ (129,804) |
NOTE 13 - SEGMENT INFORMATION_2
NOTE 13 - SEGMENT INFORMATION: Schedule of Segment Property (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Tables/Schedules | |
Schedule of Segment Property | July 31,2020 April 30,2020 Segment property and equipment: Stevioside $ 6,994,948 $ 6,976,153 Corporate and other 1,839,596 1,925,395 Total property and equipment $ 8,834,544 $ 8,901,548 |
NOTE 14 - CONCENTRATIONS AND _2
NOTE 14 - CONCENTRATIONS AND CREDIT RISK: Schedule of Customer Concentrations (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Tables/Schedules | |
Schedule of Customer Concentrations | Three Months Ended July 31, Customer 2020 2019 A (1) 24.9% 25.9% B 0 21.6% C 37.1% * |
NOTE 14 - CONCENTRATIONS AND _3
NOTE 14 - CONCENTRATIONS AND CREDIT RISK: Schedule of Vendor Concentrations (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Tables/Schedules | |
Schedule of Vendor Concentrations | Three Months Ended July 31, Supplier 2020 2019 A 27.2% 0 B 18.0% 10.8% C 10.1% 18.6% D 0 18.0% E 10.8% 0 *Less than 10%. |
NOTE 14 - CONCENTRATIONS AND _4
NOTE 14 - CONCENTRATIONS AND CREDIT RISK: Schedule of Cash position by geographic area (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Tables/Schedules | |
Schedule of Cash position by geographic area | Country: July 31, 2020 April 30, 2020 United States $ 55,483 6.3% $ 83,830 7.4% China 820,149 93.7% 1,054,090 92.6% Total cash and cash equivalents $ 875,632 100.00% $ 1,137,920 100.00% |
NOTE 2 - SUMMARY OF SIGNIFIC_24
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: CASH AND CASH EQUIVALENTS (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
Cash and cash equivalents held in PRC | $ 820,149 | $ 1,054,090 |
Cash and cash equivalents held in USA | $ 55,483 | $ 83,830 |
NOTE 2 - SUMMARY OF SIGNIFIC_25
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ACCOUNTS RECEIVABLE (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
Allowance for Doubtful Accounts Receivable | $ 75,460 | $ 74,665 |
NOTE 2 - SUMMARY OF SIGNIFIC_26
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: INVENTORIES (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
Reserve for obsolete or slow-moving inventories | $ 202,903 | $ 113,155 |
NOTE 2 - SUMMARY OF SIGNIFIC_27
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: LONG-LIVED ASSETS (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
Loss on disposition of property and equipment | $ 0 | $ 19,842 |
NOTE 2 - SUMMARY OF SIGNIFIC_28
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: TAXES PAYABLE (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
VAT payable | $ 204,109 | $ 266,708 |
NOTE 2 - SUMMARY OF SIGNIFIC_29
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, 2020 | Jul. 31, 2019 | |
Details | ||
Net loss attributable to Sunwin Stevia International, Inc. | $ (662,599) | $ (383,235) |
Numerator for basic EPS, Net loss from continuing operations | (662,599) | (129,804) |
Numerator for basic EPS, Net loss from discontinued operation | $ 0 | $ (253,431) |
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 |
Discontinued operations - basic and diluted | 0 | 0 |
Net loss per common share attributable to Sunwin Stevia International, Inc. - basic and diluted | $ 0 | $ 0 |
NOTE 2 - SUMMARY OF SIGNIFIC_30
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: FOREIGN CURRENCY TRANSLATION (Details) | 3 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2020 | |
Details | |||
Foreign Currency Exchange Rate, Translation | 6.97 | 7.05 | |
Average exchange rates | 7.07 | 6.88 |
NOTE 2 - SUMMARY OF SIGNIFIC_31
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RESEARCH AND DEVELOPMENT (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Details | ||
Research and development included in general and administrative expenses | $ 361,438 | $ 306,551 |
NOTE 2 - SUMMARY OF SIGNIFIC_32
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: SHIPPING COSTS (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Details | ||
Shipping costs included in selling expenses | $ 16,516 | $ 22,895 |
NOTE 2 - SUMMARY OF SIGNIFIC_33
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ADVERTISING (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Details | ||
Shipping costs included in selling expenses | $ 14,433 | $ 39,354 |
NOTE 3 - NONCONTROLLING INTER_2
NOTE 3 - NONCONTROLLING INTEREST (Details) | Jul. 30, 2019USD ($) |
Details | |
Noncontrolling interest deficit | $ 344,699 |
NOTE 4 - DISCONTINUED OPERATI_3
NOTE 4 - DISCONTINUED OPERATIONS (Details) | Jul. 30, 2019USD ($) |
Details | |
Cash consideration for Sale of Qufu Shengwang | $ 1,163,000 |
NOTE 4 - DISCONTINUED OPERATI_4
NOTE 4 - DISCONTINUED OPERATIONS: Schedule of Discontinued Operations Income Statement (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Details | ||
Qufu Shangwang Revenues | $ 0 | $ 733,441 |
Qufu Shangwang Cost of revenues | 0 | 572,357 |
Qufu Shangwang Gross profit | 0 | 161,084 |
Qufu Shangwang Operating expenses | 0 | 172,142 |
Qufu Shangwang Other income, net | 0 | 8,958 |
Qufu Shangwang Loss before income taxes | 0 | 20,016 |
Qufu Shangwang Income tax expense | 0 | 0 |
Qufu Shangwang Loss from discontinued operations | 0 | 20,016 |
Qufu Shangwang Loss from disposal, net of taxes | 0 | 233,415 |
Qufu Shangwang Total loss from discontinued operations | $ 0 | $ 253,431 |
NOTE 5 - INVENTORIES_ Schedul_2
NOTE 5 - INVENTORIES: Schedule of Inventory, Current (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
Raw materials | $ 3,541,783 | $ 4,676,361 |
Work in process | 4,358,351 | 3,235,156 |
Finished goods | 5,302,921 | 4,962,980 |
Inventory, Gross | 13,203,055 | 12,874,497 |
Reserve for obsolete inventory | 0 | 0 |
Inventories, net | $ 13,203,055 | $ 12,874,497 |
NOTE 6 - PREPAID EXPENSES AND_2
NOTE 6 - PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
Prepaid expenses and other current assets | $ 1,024,203 | $ 693,552 |
Prepayments to suppliers | 841,201 | 510,723 |
Business related employees' advances | $ 183,002 | $ 182,829 |
NOTE 7 - PROPERTY AND EQUIPME_3
NOTE 7 - PROPERTY AND EQUIPMENT: Schedule of Property and equipment (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
Office Equipment | $ 398,210 | $ 394,019 |
Auto and Trucks | 592,602 | 586,364 |
Machinery and Equipment, Gross | 6,772,918 | 6,559,726 |
Buildings and Improvements, Gross | 9,349,881 | 9,248,227 |
Construction in Progress, Gross | 7,917 | 7,834 |
Property, Plant and Equipment, Gross | 17,121,528 | 16,796,170 |
Less: accumulated depreciation | (8,286,984) | (7,894,622) |
Property and equipment, net | $ 8,834,544 | $ 8,901,548 |
NOTE 7 - PROPERTY AND EQUIPME_4
NOTE 7 - PROPERTY AND EQUIPMENT (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Details | ||
Total Depreciation Expense | $ 304,440 | $ 270,988 |
Depreciation in Cost of Revenue | 282,725 | 232,587 |
Depreciation in G and A Expense | $ 21,716 | $ 38,401 |
NOTE 8 - RELATED PARTY TRANSA_2
NOTE 8 - RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2020 | |
Details | |||
Advances from related parties for working capital | $ 3,055,118 | $ 663,686 | |
Repaid to related parties for working capital | 5,268,237 | 947,046 | |
Interest expense related to due to related parties | 16,807 | $ 35,741 | |
Due to Pharmaceutical Corporation | 3,275,854 | $ 3,981,915 | |
Due to Qufu Shengwang | (587,604) | 906,879 | |
Due to Weidong Chai | 190,023 | 183,657 | |
Total Due to Related Party | 2,878,273 | $ 5,072,451 | |
Working capital advances from related parties - Shangdong | 0 | ||
Working capital advances from related parties - Qufu | 3,050,762 | ||
Working capital advances from related parties - Weidong Chai | 4,355 | ||
Working capital advances from related parties | 3,055,117 | ||
Repayments from related parties - Shandong | (738,867) | ||
Repayments from related parties - Qufu | (4,529,370) | ||
Repayments from related parties - Weidong Chai | 0 | ||
Repayments from related parties | (5,268,237) | ||
Effect of foreign currency exchange - Shangdong | 32,806 | ||
Effect of foreign currency exchange - Qufu | (15,875) | ||
Effect of foreign currency exchange - Weidong Chai | 2,011 | ||
Effect of foreign currency exchange | $ 18,942 |
NOTE 9 - OPERATING LEASE (Detai
NOTE 9 - OPERATING LEASE (Details) | Jul. 10, 2019USD ($) |
Details | |
Lease from Metformin Production Line | $ 436,000 |
NOTE 10 - ACCOUNTS PAYABLE AN_3
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES: Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
Accounts Payable | $ 8,064,960 | $ 6,443,200 |
Customer Advances, Current | 67,268 | 172,512 |
Accrued salary payable | 256,991 | 142,199 |
Taxes Payable, Current | 204,109 | 266,708 |
Accounts Payable, Other, Current | 2,222,819 | 1,508,512 |
Accounts payable and accrued expenses | $ 10,816,147 | $ 8,533,131 |
NOTE 10 - ACCOUNTS PAYABLE AN_4
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
General liability, worker's compensation, and medical insurance payable | $ 404,780 | $ 409,811 |
Consulting fee payable | 212,238 | 256,304 |
Union and education fees payable | 127,139 | 125,800 |
Interest payables for short-term loans | 325,831 | 129,976 |
Safety production fund payable | 171,083 | 140,274 |
Advanced from the employees | 284,453 | 98,775 |
Security deposit for sub-contractor | 143,373 | 141,864 |
Other miscellaneous payables | $ 553,922 | $ 205,708 |
NOTE 11 - LOAN PAYABLE_ Sched_2
NOTE 11 - LOAN PAYABLE: Schedule of loan payable (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
Loan from Min Wu at 10% | $ 31,542 | $ 31,210 |
Loan from Jianjun Yan at 10% A | 1,269,928 | 1,256,562 |
Loan from Jianjun Yan at 4% B | 713,956 | 1,202,965 |
Loan from Junzhen Zhang | 22,940 | 22,698 |
Loan from Jian Chen | 0 | 171,656 |
Loan from Qing Kong A | 83,157 | 82,281 |
Loan from Qing Kong B | 34,696 | 34,331 |
Loan from Guihai Chen A | 20,789 | 20,570 |
Loan from Guihai Chen B | 31,542 | 31,210 |
Loan from Weifeng Kong | 28,675 | 28,373 |
Loan from Huagui Yong | 71,687 | 70,932 |
Loan from Guohui Zhang | 430,120 | 425,592 |
Total Short and Long Term Loan Payable | $ 2,739,032 | $ 3,378,380 |
NOTE 11 - LOAN PAYABLE (Details
NOTE 11 - LOAN PAYABLE (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Details | ||
Interest expense related to short-term loans | $ 62,531 | $ 144,787 |
NOTE 12 - STOCKHOLDERS' EQUITY
NOTE 12 - STOCKHOLDERS' EQUITY (Details) | Jul. 31, 2020shares |
Details | |
Income (loss) before income taxes - Total segment and consolidated depreciation and amortization | 200,000,000 |
Income (loss) before income taxes - Total segment and consolidated depreciation and amortization | 199,632,803 |
NOTE 13 - SEGMENT INFORMATION_3
NOTE 13 - SEGMENT INFORMATION: Schedule of Segment Income Statement (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Details | ||
Net revenues - Stevioside - third party | $ 5,190,463 | $ 4,527,666 |
Net revenues - Stevioside - related party | 1,751,823 | 1,783,893 |
Net revenues - Stevioside - Total | 6,942,286 | 6,311,559 |
Net revenues - Corporate - third party | 97,392 | 578,516 |
Net revenues - Corporate - related party | 0 | 0 |
Net revenues - Corporate - Total | 97,392 | 578,516 |
Net revenues - Total segment and consolidated revenues | 7,039,678 | 6,890,075 |
Interest income - Stevioside | 79,107 | 180,444 |
Interest income - Corporate | 0 | 0 |
Interest income - Total segment and consolidated interest expense | 79,107 | 180,444 |
Depreciation and amortization - Stevioside | 253,776 | 199,222 |
Depreciation and amortization - Corporate | 50,664 | 71,766 |
Depreciation and amortization - Total segment and consolidated depreciation and amortization | 304,440 | 270,988 |
Loss before taxes and noncontrolling interest - Stevioside | (1,064,253) | (165,071) |
Loss before taxes and noncontrolling interest - Corporate | 8,426 | 35,267 |
Income (loss) before income taxes - Total segment | $ (1,055,827) | $ (129,804) |
NOTE 13 - SEGMENT INFORMATION_4
NOTE 13 - SEGMENT INFORMATION: Schedule of Segment Property (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
Segment assets-Stevioside | $ 6,994,948 | $ 6,976,153 |
Segment assets-Corporate and other | 1,839,596 | 1,925,395 |
Segment assets-Total consolidated assets | $ 8,834,544 | $ 8,901,548 |
NOTE 14 - CONCENTRATIONS AND _5
NOTE 14 - CONCENTRATIONS AND CREDIT RISK: Schedule of Vendor Concentrations (Details) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Details | ||
Supplier A | 27.20% | 0.00% |
Supplier B | 18.00% | 10.80% |
Supplier C | 10.10% | 18.60% |
Supplier D | 0.00% | 18.00% |
Supplier E | 10.80% | 0.00% |
NOTE 14 - CONCENTRATIONS AND _6
NOTE 14 - CONCENTRATIONS AND CREDIT RISK (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
Cash held in PRC | $ 820,149 | $ 1,054,090 |
NOTE 14 - CONCENTRATIONS AND _7
NOTE 14 - CONCENTRATIONS AND CREDIT RISK: Schedule of Cash position by geographic area (Details) - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Details | ||
Cash held in United States | $ 55,483 | $ 83,830 |
Percent of Cash held in United States | 6.30% | 7.40% |
Cash held in PRC | $ 820,149 | $ 1,054,090 |
Percent of Cash held in PRC | 93.70% | 92.60% |