Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 14, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | YBCC, Inc. | |
Entity Central Index Key | 822,997 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 9,894,214 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 | |
Entity Small Business | true | |
Entity Emerging Growth | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 29,430 | $ 369,607 |
Accounts receivable - net | 6,458 | 0 |
Inventory | 465,347 | 127,335 |
Other receivable | 52,264 | 33,251 |
Advance to suppliers | 78,191 | 20,007 |
Prepaid expenses | 30,503 | 50,753 |
Total current assets | 662,193 | 600,953 |
Property, plant and equipment - net | 2,463,367 | 2,538,580 |
Intangible assets - net | 676,637 | 726,043 |
Other assets | ||
Deposits | 2,563 | 6,052 |
Total Assets | 3,804,760 | 3,871,628 |
Current Liabilities | ||
Accounts payable | 159,154 | 160,625 |
Accrued expenses | 130,186 | 124,714 |
Customer deposits | 169,939 | 31,314 |
Customer deposits - related party | 2,912 | 0 |
Taxes payable | 102,661 | 92,122 |
Other payable | 170,095 | 313,806 |
Other payable - related parties | 2,724,736 | 2,900,912 |
Loan payable | 152,883 | 0 |
Total current liabilities | 3,612,566 | 3,623,493 |
Total liabilities | 3,612,566 | 3,623,493 |
Equity | ||
Convertible preferred shares: $0.0001 par value, 50,000,000 shares authorized, 974,370 series A issued and outstanding as of September 30, 2018 and December 31, 2017, respectively | 98 | 98 |
Common stock: $0.001 par value, 900,000,000 shares authorized, 9,894,214 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively | 9,894 | 9,894 |
Additional paid-in capital | 1,162,328 | 1,162,328 |
Accumulated foreign currency exchange loss | (57,026) | (36,581) |
Accumulated deficit | (1,276,114) | (1,179,676) |
Total YBCC, Inc. stockholders' equity | (160,820) | (43,937) |
Non-controlling interest | 353,014 | 292,072 |
Total equity | 192,194 | 248,135 |
Total liabilities and equity | $ 3,804,760 | $ 3,871,628 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Convertible preferred shares authorized | 50,000,000 | 50,000,000 |
Convertible preferred shares par value | $ 0.0001 | $ 0.0001 |
Preferred stock shares issued | 974,730 | 974,730 |
Preferred stock shares outstanding | 974,730 | 974,730 |
Common stock shares authorized | 900,000,000 | 900,000,000 |
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares issued | 9,894,214 | 9,894,214 |
Common stock shares outstanding | 9,894,214 | 9,894,214 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 606,123 | $ 570,099 | $ 1,541,744 | $ 1,454,187 |
Cost of goods sold | 448,142 | 477,093 | 1,146,292 | 1,316,750 |
Gross profit | 157,981 | 93,006 | 395,452 | 137,437 |
Operating Expenses | ||||
Selling expenses | 4,365 | 5,119 | 14,613 | 18,269 |
General and administrative expenses | 138,680 | 161,966 | 407,533 | 505,876 |
Total operating expenses | 143,045 | 167,085 | 422,146 | 524,145 |
Income (loss) from operations | 14,936 | (74,079) | (26,694) | (386,708) |
Other income (expenses) | ||||
Other income (expense) | (246) | 6,938 | 10,681 | 9,897 |
Interest income | 26 | 0 | 159 | 0 |
Total other income | (220) | 6,938 | 10,840 | 9,897 |
Income (loss) before income taxes | 14,716 | (67,141) | (15,854) | (376,811) |
Provision for income tax | 0 | 0 | 0 | 0 |
Net Income (Loss) | 14,716 | (67,141) | (15,854) | (376,811) |
Less: net income (loss) attributable to non-controlling interest | 40,435 | 10,745 | 80,584 | (38,861) |
Net income (loss) attributable to YBCC, Inc. stockholders | (25,719) | (77,886) | (96,438) | (337,950) |
Net Income (Loss) | 14,716 | (67,141) | (15,854) | (376,811) |
Other Comprehensive Income | ||||
Foreign currency translation gain (loss) | (26,936) | 5,951 | (40,088) | 12,950 |
Comprehensive income (loss) | (12,220) | (61,190) | (55,942) | (363,861) |
Less: comprehensive income (loss) attributable to non-controlling interest | (13,199) | 10,745 | (19,643) | (38,861) |
Comprehensive income (loss) attributable to YBCC, Inc. stockholders | $ 979 | $ (71,935) | $ (36,299) | $ (325,000) |
Net income (loss) per share - basic and diluted | $ 0 | $ (0.01) | $ 0 | $ (0.03) |
Weighted average shares outstanding - basic and diluted | 9,894,214 | 9,891,214 | 9,894,214 | 9,872,236 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (15,854) | $ (376,811) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 169,511 | 150,211 |
Amortization | 11,781 | 11,276 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6,811) | 123,256 |
Accounts receivable-related party | 0 | (7,290) |
Other receivable | (22,756) | 20,372 |
Advance to suppliers | (62,476) | 30,114 |
Prepaid expenses | 19,893 | 7,885 |
Inventory | (363,557) | (136,146) |
Deposits | 132 | 5,879 |
Accounts payable | 7,369 | 85,487 |
Accrued expense | 6,358 | 38,514 |
Customer deposit | 147,940 | 60,208 |
Customer deposit - related party | 3,071 | (35,083) |
Tax payable | 16,232 | 19,865 |
Other payable | (134,135) | (62,894) |
Cash used in operating activities | (223,302) | (65,157) |
Cash flows from investing activities: | ||
Deferred cost | 0 | 15,095 |
Purchase of property and equipment | (92,777) | (50,855) |
Construction in progress | (138,204) | 0 |
Cash used in investing activities | (230,981) | (35,760) |
Cash flows from financing activities: | ||
Advance from (repayment to) related party | (46,432) | 430,943 |
Proceeds from (repayment of) short term borrowing | 161,238 | (74,961) |
Net cash provided by financing activities | 114,806 | 355,982 |
Effects of currency translation on cash and cash equivalents | (700) | 1,733 |
Net increase (decrease) in cash and cash equivalents | (340,177) | 256,798 |
Cash and cash equivalents at beginning of period | 369,607 | 339,147 |
Cash and cash equivalents at end of period | 29,430 | 595,945 |
Supplementary Disclosures of Cash Flow | ||
Income taxes | 0 | 0 |
Interest | 0 | 0 |
Non-cash investing and financing activities | ||
Issuance of common stock for subscription received previously | $ 0 | $ 300,000 |
1. Organizations and Summary of
1. Organizations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Organizations and Summary of Significant Accounting Policies | NOTE 1 - ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Operations On July 2, 2007, the Company through its wholly-owned subsidiary, YesRx.com (“YesRx”) acquired all the outstanding shares of H&H Glass, Inc. (“H&H Glass”), in exchange for 3,915,000 shares of its common stock in a reverse triangular merger. On May 15, 2016, the Company and Xiuhua Song (the “Purchaser”) entered into a Stock Purchase Agreement (the “Purchase Agreement”), pursuant to which IPLO (the “Seller”) would sell to the Purchaser, and the Purchaser will purchase from the Seller, an aggregate of 3,915,000 newly issued shares of IPLO Common Stock (the “Shares”), which Shares represented 87% of the issued and outstanding shares of common stock. On July 1, 2016, this transaction was completed. On July 1, 2016, Standard Resources Ltd. (“Standard”), previously IPLO’s majority stockholder, and IPLO entered into a share purchase agreement (“H&H Vend Out”) whereby Standard would cancel 3,915,000 shares of IPLO common stock held by it in exchange for all of the outstanding shares of H&H Glass. The H&H Glass Vend Out was completed on August 31, 2016. On July 1, 2016, the Company executed a Share Exchange Agreement (“ Exchange Agreement Yibaoccyb Yibaoccyb Shareholders YibaoHK Yibao PRC China Confucian The Exchange Agreement was completed on August 31, 2016 concurrent with the H&H Vend Out. The Company issued 2,040,000 shares of the Company’s common stock (the “ IPLO Shares On December 22, 2016, the Company amended its Certificate of Incorporation (the “Amendment”). As a result of the Amendment, the Company’s corporate name was changed from International Packaging and Logistics Group, Inc. to YBCC, Inc. Yibaoccyb is a limited liability company incorporated under the laws of the British Virgin Islands on May 30, 2016. Other than all the issued and outstanding shares of YibaoHK, Yibaoccyb has no other assets or operations. YibaoHK is a limited liability company incorporated under the laws of the Hong Kong on June 15, 2016, which was formed by Yibaoccyb. Confucian was founded on October 31, 2012. Confucian is in the Food Industrial Park inside the economic development Zone of JinXiang County, Jining City in the province of Shandong in China. Confucian possesses manufacturing permits for food product, hygienic products, sanitary products, and health products. The Company's main business includes research and development of chondroitin and garlic oil; trading, cold storage, and pretreating of garlic, fruit, and vegetables products; trading of chemical products (excluding hazardous chemicals); import and export of goods and technology (excluding those restricted by China government); and, the manufacturing and sale of health products including powder, granules, tablets, hard capsule, soft capsule products. Details of the Company’s structure as of September 30, 2018 is as follow: [graph of structure here] Reverse Merger Accounting Basis of Presentation Principles of Consolidation Intercompany accounts and transactions have been eliminated upon consolidation. Use of Estimates Cash and Cash Equivalents Accounts Receivable As of September 30, 2018 and December 31, 2017, accounts receivable were $6,458 and $0, respectively. The Company believes that its accounts receivables are fully collectable and determined that an allowance for doubtful accounts was not necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. Inventories Inventory, comprised principally of finished goods, raw material and packaging material, are valued at the lower of cost or net realizable value. September 30, December 31, Finished goods $ 139,001 $ 7,106 Work in progress 96,476 47,292 Raw materials 157,784 46,902 Packaging material 72,086 26,035 Total $ 465,347 $ 127,335 The Company periodically estimates an inventory allowance for estimated unmarketable inventories. Inventory amounts are reported net of such allowances, if any. There were no allowances for inventory as of September 30, 2018 and December 31, 2017. Property, Plant and Equipment Expenditures for maintenance and repairs are charged to operations; major expenditures for renewals and betterments are capitalized. Assets that are still kept in service after reaching the end of their estimated useful lives are depreciated over the estimated useful life of their residual value. Gain or loss on disposal of property, plant, and equipment is recognized as non-operating income or expenses. Depreciation is computed by applying the following methods and estimated lives: Category Estimated Life Method Manufacturing equipment 10 Straight Line Office equipment 5 Straight Line Buildings 20 Straight Line Intangible Assets Non-Controlling Interest Revenue Recognition Cost of goods sold Impairment of Long-Live Assets Foreign Currency Translation The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the financial statements were as follows: Balance sheet Balance sheet as of September 30, 2018 RMB 6.87 to US $1.00 Balance sheet as of December 31, 2017 RMB 6.51 to US $1.00 Statement of operation and other comprehensive income Statement of operation and other comprehensive income for three months ended September 30, 2018 RMB 6.81 to US $1.00 Statement of operation and other comprehensive income for three months ended September 30, 2017 RMB 6.67 to US $1.00 Statement of operation and other comprehensive income for nine months ended September 30, 2018 RMB 6.51 to US $1.00 Statement of operation and other comprehensive income for nine months ended September 30, 2017 RMB 6.80 to US $1.00 Fair Value of Financial Instruments Level 1 Inputs— Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. Level 2 Inputs— Inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 Inputs— Inputs based on valuation techniques that are both unobservable and significant to the overall fair value measurements ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure, fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company did not identify any assets or liabilities that are required to be presented at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash and cash equivalents, accounts receivable, inventories, prepaid expenses, advances from customers, accounts payable, taxes payable, accrued liabilities and other payables, and loan from bank, approximated their fair values due to the short maturity of these financial instruments. There were no changes in methods or assumptions during the periods presented. Net Earnings (Loss) Per Share Reclassifications Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in ASC 605 - Revenue Recognition (“ASC 605”) and most industry-specific guidance throughout ASC 605. The FASB has issued numerous updates that provide clarification on a number of specific issues as well as requiring additional disclosures. The core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance may be adopted through either retrospective application to all periods presented in the financial statements (full retrospective approach) or through a cumulative effect adjustment to retained earnings at the effective date (modified retrospective approach). The Company had evaluated the effect that will result from adopting the guidance in this standard and concluded that the new revenue standards are not expected to have a material impact on the amount and timing of revenue recognized in the Company’s consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): In February 2018, the FASB issued ASU No. 2018-02 Income Statement—Reporting Comprehensive Income (Topic 220)—Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information. |
2. Going Concern
2. Going Concern | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOte 2 - going concern Net income and net losses for the three months ended September 30, 2018 and 2017 were $14,716 and $67,141, respectively. The Company sustained net losses of $15,854 and $376,811 during the nine months ended September 30, 2018 and 2017, respectively. The Company has accumulated deficit of $1,276,114 and $1,179,676 as of September 30, 2018 and December 31, 2017, respectively. The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations and/or obtain additional financing, as may be required. The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern; however, the above condition raises substantial doubt about the Company’s ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern. Management’s Plan to Continue as a Going Concern In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital from the sale of its equity securities, (2) sales of the Company’s products, (3) short-term and long-term borrowings from banks, and (4) short-term borrowings from stockholders or other related party(ies) when needed. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing and attain profitable operations. |
3. Concentration of Credit Risk
3. Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Concentration of Credit Risk | NOte 3 - concentration of credit risk We maintain our cash balance in several banks in China and United States. The consolidated cash balances as of September 30, 2018 and December 31, 2017 were $29,430 and $369,607, respectively. The cash balances in China as of September 30, 2018 and December 31, 2017 were $7,771 and $307,361, respectively. The accounts in China were not insured which we believe were exposed to credit risks on cash. As of September 30, 2018, the balance of our US account was $21,659 which is within federal insured limit of $250,000. As of December 31, 2017, the balance of our US account was $62,246, which is within federal insured limit of $250,000. |
4. Other Receivable
4. Other Receivable | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Other Receivable | NOTe 4 - other receivable Total other receivable consists of balances of VAT receivable of $29,347 and $33,251 as of September 30, 2018 and December 31, 2017, respectively and other temporary funding receivable from a third party of $19,702 and $0 as of September 30, 2018 and December 31, 2017, respectively. The temporary funding was transferred to the Company’s consulting firm, which makes payments of operating expenses on behalf of the Company. |
5. Prepaid Expenses
5. Prepaid Expenses | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses | NOTe 5 - prepaid expenses Prepaid expenses were comprised of the following: September 30, 2018 December 31, 2017 Utilities $ 1,456 $ 1,537 Professional fees 25,407 44,974 Other 3,640 4,242 Total $ 30,503 $ 50,753 |
6. Property, Plant and Equipmen
6. Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 6 - property, plant and equipment Property, plant and equipment as of September 30, 2018 and December 31, 2017 are summarized as following: September 30, 2018 December 31, 2017 Buildings $ 1,758,779 $ 1,858,989 Vehicles 11,284 11,912 Manufacturing equipment 1,161,343 1,133,045 Office equipment 89,283 93,961 Construction in progres 133,349 – Property, plant, and equipment - total 3,154,038 3,097,907 Less: accumulated depreciation (690,671 ) (559,327 ) Fixed assets, net $ 2,463,367 $ 2,538,580 For the three months ended September 30, 2018 and 2017, depreciation expenses were $54,385 and $51,356, respectively. For the nine months ended September 30, 2018 and 2017, depreciation expenses were $169,511 and $150,211, respectively. |
7. Intangible Assets - Net
7. Intangible Assets - Net | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets - Net | note 7 - intangible assets -net All land in the PRC is owned by the government and cannot be sold to any individual or entity. Instead, the government grants landholders a "land use right" after a purchase price for such "land use right" is paid to the government. The "land use right" allows the holder to use the land for 50 years and enjoys all the incidents of ownership of the land. As of September 30, 2018 and December 31, 2017, the land use rights net of accumulated amortization was $676,637 and $726,043, respectively. The use term was 50 years. The summary of land use rights as of September 30, 2018 and December 31, 2017 are summarized as following: The land use right term September 30, 2018 December 31, 2017 May, 2013 - Apr. 2063 $ 524,190 $ 553,332 Dec. 2015 - Sept. 2065 196,564 207,491 Dec. 2015 – Sept. 2065 23,923 25,252 Intangible assets- total 744,677 786,075 Less: accumulated amortization (68,040 ) (60,032 ) Intangible assets, net $ 676,637 $ 726,043 For the three months ended September 30, 2018 and 2017, amortization expenses were $3,746 and $3,835, respectively. For the nine months ended September 30, 2018 and 2017, amortization expenses were $11,781 and $11,276, respectively. |
8. Commitments and Contingencie
8. Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8 - COMMITMENTS AND CONTINGENCIES The Company’s lease in City of Industry, California was terminated on September 1, 2018. There are no future commitments. |
9. Income Tax
9. Income Tax | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax | NOTE 9 - INCOME TAX At September 30, 2018 and December 31, 2017, based on the weight of available evidence, management determined that it was unlikely that the Company's deferred tax assets would be realized and have provided for a full valuation allowance associated with the net deferred tax assets. The Company periodically analyzes its tax positions taken and expected to be taken and has determined that since inception there has been no need to record a liability for uncertain tax positions. The Company classifies income tax penalties and interest, if any, as part of selling, general and administrative expenses in the accompanying statements of operations. There was no accrued interest or penalties as of September 30, 2018 and December 31, 2017. The Company is neither under examination by any taxing authority, nor has it been notified of any impending examination. Under the Law of People’s Republic of China on Enterprise Income Tax (“EIT Law”), which was effective from January 1, 2008, domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%. The potential benefit of the Company’s net operating losses has not been recognized in these financial statements because it is more likely-than-not the Company will not utilize the net operating losses carried forward as it does not expect to generate sufficient taxable income in future or the amount involved is not significant. September 30, 2018 December 31, 2017 Current USA $ – $ – China 41,115 – Deferred USA Deferred tax assets for NOL carryforwards 37,865 37,893 Valuation allowance (37,865 ) (37,893 ) Net changes in deferred income tax under non-current portion – – China NOL carryforwards (41,115 ) 18,256 Valuation allowance – (18,256 ) Net changes in deferred income tax under non-current portion (41,115 ) – Total provision for income tax $ – $ – The tax effects of temporary differences that gave rise to significant portions of deferred tax assets at September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 December 31, 2017 Deferred Tax Assets: Net operating loss carry forwards $ 324,060 $ 327,310 Valuation allowance (324,060 ) (327,310 ) Net deferred tax assets $ – $ – A reconciliation between the income tax computed at the U.S. statutory rate and the Company’s provision for income tax in the PRC is as follows: September 30, 2018 December 31, 2017 Tax expense at statutory rate-US 21 % 34 % Foreign income not recognized in the US (21 %) (34 %) PRC enterprise income tax rate 25 % 25 % Loss not subject to income tax (25 %) (25 %) Effective income tax rates – – On December 22, 2017, the Tax Cuts and Jobs Act (the Tax Act) was enacted, significantly altering U.S. corporate income tax law. The SEC issued Staff Accounting Bulletin 118, which allows companies to record reasonable estimates of enactment impacts where all of the underlying analysis and calculations are not yet complete. The provisional estimates must be finalized within a one-year measurement period. The Company reduced its net domestic deferred tax asset balance by $88,781 due to the reduction in corporate tax rate from 34% to 21%. These adjustments are fully offset by a change in the Company’s U.S. valuation allowance. |
10. Equity
10. Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity | |
Equity | note 10 - equity Common Stock: On July 1, 2016, the Company issued 3,915,000 shares of common stock to Ms. Song in connection with the change of control. On August 31, 2016, the Company cancelled 3,915,000 shares of outstanding shares belonging to Standard. On August 31, 2016, the Company issued 2,040,000 shares to Yibaoccyb Shareholders in exchange for 51% of the common stock of Yibaoccyb to complete the share exchange and restructuring of entities under common control. On December 22, 2016, the Company issued 350,000 shares for legal counsel services valued at $35,000. On December 23, 2016, the Company received cash payment of $300,000 in advance for issuance of 3,000,000 shares of common stock, or $0.10 per share. On January 3, 2017, 3,000,000 shares were issued to seven investors, none of which is a related-party to the Company. As a result of all common stock issuances, the total issued and outstanding shares of common stock were 9,894,214 as of September 30, 2018 and December 31, 2017, respectively. Series A Preferred Shares: The Series A Preferred shares are convertible into common shares on a 1:1 ratio at a fixed rate of $3 per share. Preferred shares have no voting rights, have no redemption rights and earn no dividends. Holders of Series A Convertible Preferred Stock are not permitted to convert their stock into common shares until the Company’s market capital reaches $15,000,000. Upon dissolution, liquidation or winding up of the Company, whether voluntary or involuntary, the holders of the then outstanding shares of Series A Convertible Preferred Stock shall be entitled to receive out of the assets of the Company the sum of $0.0001 per share (the “Liquidation Rate”) before any payment or distribution shall be made on any other class of capital stock of the Company ranking junior to the Series A Convertible Preferred Stock. ASC Topic 480, “Distinguishing Liabilities from Equity,” establishes standards for how an issuer classifies and measures certain financial instruments with characteristics of both liabilities and equity. A mandatorily redeemable financial instrument shall be classified as a liability unless the redemption is required to occur only upon the liquidation or termination of the reporting entity. A financial instrument issued in the form of shares is mandatorily redeemable if it embodies an unconditional obligation requiring the issuer to redeem the instrument by transferring its assets at a specified or determinable date (or dates) or upon an event certain to occur. A financial instrument that embodies a conditional obligation to redeem the instrument by transferring assets upon an event not certain to occur becomes mandatorily redeemable—and, therefore becomes a liability—if that event occurs, the condition is resolved, or the event becomes certain to occur. The Company determined that the preferred shares are not mandatorily or conditionally redeemable and are properly classified as permanent equity in the accompanying unaudited condensed consolidated financial statements. |
11. Non-Controlling Interest
11. Non-Controlling Interest | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interest | NOTE 11 - NON-CONTROLLING INTEREST On July 1, 2016, the Company executed the Exchange Agreement with Yibaoccyb and the Yibaoccyb Shareholders. From and after the Closing Date, Yibaoccyb became a 51% owned subsidiary of the Company. Yibaoccyb owns 100% of YibaoHK. YibaoHK will own 100% of Shenzhen Confucian Biologics Co. Ltd. (yet to be formed, “Yibao WFOE”), which will be wholly foreign-owned enterprise (“WFOE”) under the laws of the Peoples’ Republic of China (“PRC” or “China”). On August 31, 2016, YibaoHK entered into a series of contractual arrangements with Confucian and currently is 100% owner of Confucian. Non-controlling interest consisted of the following: September 30, December 31, 2018 2017 Beginning balance $ 292,072 $ 304,291 Net income (loss) attributed to non-controlling interest 80,584 (31,538 ) Foreign currency translation gain (loss) attributable to non-controlling interest (19,642 ) 19,319 Ending balance $ 353,014 $ 292,072 |
12. Related Party Transactions
12. Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | note 12 - related party transactions The related parties of the Company with whom transactions are reported in these financial statements are as follows: Name of Entity or Individual Relationship with the Company and subsidiaries Shandong Yibao Biologics Co, Ltd. Affiliated company with common shareholders Shandong Yibao Import & Export Trading Co, Ltd. Affiliated company with common shareholders Jinxiang Confucian Food Testing Co, Ltd. Affiliated company with common shareholders Ms. Xiuhua Song Director and controlling beneficiary shareholder of the Company Mr. Hengchun Zhang Owner of Shandong Confucian Biologics and Jinxiang Confucian Food Testing Co, Ltd. Transactions: For the Nine Months Ended September 30, 2018 2017 Sales to Shandong Yibao Biologics Co. Ltd. $ 766,592 $ 417,631 Sales to Shandong Yibao Import & Export Trading Co. Ltd. – 45,854 Total $ 766,592 $ 463,485 For the Nine Months Ended September 30, 2018 2017 Purchase from Shandong Yibao Biologics Co. Ltd. $ – $ 227,975 Total $ – $ 227,975 Customer Deposit from related party September 30, December 31, Customer deposit from Shandong Yibao Biologics Co. Ltd. $ 2,912 $ – Total $ 2,912 $ – Due to related parties September 30, December 31, To Shandong Yibao Biologics Co. Ltd $ 14,560 $ – To Jinxiang Confucian Food Testing Co, Ltd. 58,241 – To Xiuhua Song 2,391,385 2,630,912 To Hengchun Zhang 260,550 270,000 Total $ 2,724,736 $ 2,900,912 |
13. Major Suppliers and Custome
13. Major Suppliers and Customers | 9 Months Ended |
Sep. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Major Suppliers and Customers | NOTE 13 - MAJOR SUPPLIERS AND CUSTOMERS The Company purchases majority of its inventory and packaging supplies from one supplier which accounted for 19.97% of the total purchases for the nine months ended September 30, 2018. The Company had three major customers for the nine months ended September 30, 2018: Shandong Yibao Biologics, a related party, accounted for 42.76% of revenue, Anhui Xiancheng Import and Export Company accounted for 27.43% of revenue, Ping Xiang Import and Export Company accounted for 14.85% of revenue for the nine months ended September 30, 2018. The Company purchases majority of its inventory and packaging supplies from three suppliers which accounted for 21.96%, 18.95% and 18.54% of the total purchases for the nine months ended September 30, 2017. The Company had four major customers for the nine months ended September 30, 2017: Shandong Yibao Biologics for 28.72% of revenue, Nanjing Hejian Biologics accounted for 18.51% of revenue, Ping Xiang Import and Export Company accounted for 15.46% of revenue, Jiangshan Huacheng Import and Export Company accounted for 12.32% of revenue for the nine months ended September 30, 2017. |
14. Subsequent Events
14. Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 14 - SUBSEQUENT EVENTS Management has evaluated subsequent events through November 14, 2018, the date which the condensed consolidated financial statements were available to be issued. All subsequent events requiring recognition as of September 30, 2018 have been incorporated into these condensed consolidated financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.” |
1. Organizations and Summary _2
1. Organizations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization and Operations | Organization and Operations On July 2, 2007, the Company through its wholly-owned subsidiary, YesRx.com (“YesRx”) acquired all the outstanding shares of H&H Glass, Inc. (“H&H Glass”), in exchange for 3,915,000 shares of its common stock in a reverse triangular merger. On May 15, 2016, the Company and Xiuhua Song (the “Purchaser”) entered into a Stock Purchase Agreement (the “Purchase Agreement”), pursuant to which IPLO (the “Seller”) would sell to the Purchaser, and the Purchaser will purchase from the Seller, an aggregate of 3,915,000 newly issued shares of IPLO Common Stock (the “Shares”), which Shares represented 87% of the issued and outstanding shares of common stock. On July 1, 2016, this transaction was completed. On July 1, 2016, Standard Resources Ltd. (“Standard”), previously IPLO’s majority stockholder, and IPLO entered into a share purchase agreement (“H&H Vend Out”) whereby Standard would cancel 3,915,000 shares of IPLO common stock held by it in exchange for all of the outstanding shares of H&H Glass. The H&H Glass Vend Out was completed on August 31, 2016. On July 1, 2016, the Company executed a Share Exchange Agreement (“ Exchange Agreement Yibaoccyb Yibaoccyb Shareholders YibaoHK Yibao PRC China Confucian The Exchange Agreement was completed on August 31, 2016 concurrent with the H&H Vend Out. The Company issued 2,040,000 shares of the Company’s common stock (the “ IPLO Shares On December 22, 2016, the Company amended its Certificate of Incorporation (the “Amendment”). As a result of the Amendment, the Company’s corporate name was changed from International Packaging and Logistics Group, Inc. to YBCC, Inc. Yibaoccyb is a limited liability company incorporated under the laws of the British Virgin Islands on May 30, 2016. Other than all the issued and outstanding shares of YibaoHK, Yibaoccyb has no other assets or operations. YibaoHK is a limited liability company incorporated under the laws of the Hong Kong on June 15, 2016, which was formed by Yibaoccyb. Confucian was founded on October 31, 2012. Confucian is in the Food Industrial Park inside the economic development Zone of JinXiang County, Jining City in the province of Shandong in China. Confucian possesses manufacturing permits for food product, hygienic products, sanitary products, and health products. The Company's main business includes research and development of chondroitin and garlic oil; trading, cold storage, and pretreating of garlic, fruit, and vegetables products; trading of chemical products (excluding hazardous chemicals); import and export of goods and technology (excluding those restricted by China government); and, the manufacturing and sale of health products including powder, granules, tablets, hard capsule, soft capsule products. Details of the Company’s structure as of September 30, 2018 is as follow: [graph of structure here] |
Reverse Merger Accounting | Reverse Merger Accounting |
Basis of Presentation | Basis of Presentation |
Principles of Consolidation | Principles of Consolidation Intercompany accounts and transactions have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Accounts Receivable | Accounts Receivable As of September 30, 2018 and December 31, 2017, accounts receivable were $6,458 and $0, respectively. The Company believes that its accounts receivables are fully collectable and determined that an allowance for doubtful accounts was not necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. |
Inventories | Inventories Inventory, comprised principally of finished goods, raw material and packaging material, are valued at the lower of cost or net realizable value. September 30, December 31, Finished goods $ 139,001 $ 7,106 Work in progress 96,476 47,292 Raw materials 157,784 46,902 Packaging material 72,086 26,035 Total $ 465,347 $ 127,335 The Company periodically estimates an inventory allowance for estimated unmarketable inventories. Inventory amounts are reported net of such allowances, if any. There were no allowances for inventory as of September 30, 2018 and December 31, 2017. |
Property, Plant and Equipment | Property, Plant and Equipment Expenditures for maintenance and repairs are charged to operations; major expenditures for renewals and betterments are capitalized. Assets that are still kept in service after reaching the end of their estimated useful lives are depreciated over the estimated useful life of their residual value. Gain or loss on disposal of property, plant, and equipment is recognized as non-operating income or expenses. Depreciation is computed by applying the following methods and estimated lives: Category Estimated Life Method Manufacturing equipment 10 Straight Line Office equipment 5 Straight Line Buildings 20 Straight Line |
Intangible Assets | Intangible Assets |
Non-Controlling Interest | Non-Controlling Interest |
Revenue Recognition | Revenue Recognition |
Cost of goods sold | Cost of goods sold |
Impairment of Long-Lived Assets | Impairment of Long-Live Assets |
Foreign Currency Translation | Foreign Currency Translation The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the financial statements were as follows: Balance sheet Balance sheet as of September 30, 2018 RMB 6.87 to US $1.00 Balance sheet as of December 31, 2017 RMB 6.51 to US $1.00 Statement of operation and other comprehensive income Statement of operation and other comprehensive income for three months ended September 30, 2018 RMB 6.81 to US $1.00 Statement of operation and other comprehensive income for three months ended September 30, 2017 RMB 6.67 to US $1.00 Statement of operation and other comprehensive income for nine months ended September 30, 2018 RMB 6.51 to US $1.00 Statement of operation and other comprehensive income for nine months ended September 30, 2017 RMB 6.80 to US $1.00 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Level 1 Inputs— Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. Level 2 Inputs— Inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 Inputs— Inputs based on valuation techniques that are both unobservable and significant to the overall fair value measurements ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure, fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company did not identify any assets or liabilities that are required to be presented at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash and cash equivalents, accounts receivable, inventories, prepaid expenses, advances from customers, accounts payable, taxes payable, accrued liabilities and other payables, and loan from bank, approximated their fair values due to the short maturity of these financial instruments. There were no changes in methods or assumptions during the periods presented. |
Net Earnings (Loss) Per Share | Net Earnings (Loss) Per Share |
Reclassifications | Reclassifications |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in ASC 605 - Revenue Recognition (“ASC 605”) and most industry-specific guidance throughout ASC 605. The FASB has issued numerous updates that provide clarification on a number of specific issues as well as requiring additional disclosures. The core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance may be adopted through either retrospective application to all periods presented in the financial statements (full retrospective approach) or through a cumulative effect adjustment to retained earnings at the effective date (modified retrospective approach). The Company had evaluated the effect that will result from adopting the guidance in this standard and concluded that the new revenue standards are not expected to have a material impact on the amount and timing of revenue recognized in the Company’s consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): In February 2018, the FASB issued ASU No. 2018-02 Income Statement—Reporting Comprehensive Income (Topic 220)—Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information. |
1. Organizations and Summary _3
1. Organizations and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of inventory | September 30, 2018 December 31, 2017 Finished goods $ 139,001 $ 7,106 Work in progress 96,476 47,292 Raw materials 157,784 46,902 Packaging material 72,086 26,035 Total $ 465,347 $ 127,335 |
Property, plant and equipment useful lives | Category Estimated Life Method Manufacturing equipment 10 Straight Line Office equipment 5 Straight Line Buildings 20 Straight Line |
Foreign currency exchange rates | Balance sheet Balance sheet as of September 30, 2018 RMB 6.87 to US $1.00 Balance sheet as of December 31, 2017 RMB 6.51 to US $1.00 Statement of operation and other comprehensive income Statement of operation and other comprehensive income for three months ended September 30, 2018 RMB 6.81 to US $1.00 Statement of operation and other comprehensive income for three months ended September 30, 2017 RMB 6.67 to US $1.00 Statement of operation and other comprehensive income for nine months ended September 30, 2018 RMB 6.51 to US $1.00 Statement of operation and other comprehensive income for nine months ended September 30, 2017 RMB 6.80 to US $1.00 |
5. Prepaid Expenses (Tables)
5. Prepaid Expenses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses | September 30, 2018 December 31, 2017 Utilities $ 1,456 $ 1,537 Professional fees 25,407 44,974 Other 3,640 4,242 Total $ 30,503 $ 50,753 |
6. Property, Plant and Equipm_2
6. Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | September 30, 2018 December 31, 2017 Buildings $ 1,758,779 $ 1,858,989 Vehicles 11,284 11,912 Manufacturing equipment 1,161,343 1,133,045 Office equipment 89,283 93,961 Construction in progress 133,349 – Property, plant, and equipment - total 3,154,038 3,097,907 Less: accumulated depreciation (690,671 ) (559,327 ) Fixed assets, net $ 2,463,367 $ 2,538,580 |
7. Intangible Assets - Net (Tab
7. Intangible Assets - Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of land use rights | The land use right term September 30, 2018 December 31, 2017 May, 2013 - Apr. 2063 $ 524,190 $ 553,332 Dec. 2015 - Sept. 2065 196,564 207,491 Dec. 2015 – Sept. 2065 23,923 25,252 Intangible assets- total 744,677 786,075 Less: accumulated amortization (68,040 ) (60,032 ) Intangible assets, net $ 676,637 $ 726,043 |
9. Income Tax (Tables)
9. Income Tax (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Calculation of provision for income taxes | September 30, 2018 December 31, 2017 Current USA $ – $ – China 41,115 – Deferred USA Deferred tax assets for NOL carryforwards 37,865 37,893 Valuation allowance (37,865 ) (37,893 ) Net changes in deferred income tax under non-current portion – – China NOL carryforwards (41,115 ) 18,256 Valuation allowance – (18,256 ) Net changes in deferred income tax under non-current portion (41,115 ) – Total provision for income tax $ – $ – |
Deferred tax assets | September 30, 2018 December 31, 2017 Deferred Tax Assets: Net operating loss carry forwards $ 324,060 $ 327,310 Valuation allowance (324,060 ) (327,310 ) Net deferred tax assets $ – $ – |
Reconciliation of effective income tax rate | September 30, 2018 December 31, 2017 Tax expense at statutory rate-US 21 % 34 % Foreign income not recognized in the US (21 %) (34 %) PRC enterprise income tax rate 25 % 25 % Loss not subject to income tax (25 %) (25 %) Effective income tax rates – – |
11. Non-Controlling Interest (T
11. Non-Controlling Interest (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Schedule of non-controlling interests | September 30, December 31, 2018 2017 Beginning balance $ 292,072 $ 304,291 Net income (loss) attributed to non-controlling interest 80,584 (31,538 ) Foreign currency translation gain (loss) attributable to non-controlling interest (19,642 ) 19,319 Ending balance $ 353,014 $ 292,072 |
12. Related Party Transactions
12. Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of related entities | Name of Entity or Individual Relationship with the Company and subsidiaries Shandong Yibao Biologics Co, Ltd. Affiliated company with common shareholders Shandong Yibao Import & Export Trading Co, Ltd. Affiliated company with common shareholders Jinxiang Confucian Food Testing Co, Ltd. Affiliated company with common shareholders Ms. Xiuhua Song Director and controlling beneficiary shareholder of the Company Mr. Hengchun Zhang Owner of Shandong Confucian Biologics and Jinxiang Confucian Food Testing Co, Ltd. |
Related party payables | Transactions: For the Nine Months Ended September 30, 2018 2017 Sales to Shandong Yibao Biologics Co. Ltd. $ 766,592 $ 417,631 Sales to Shandong Yibao Import & Export Trading Co. Ltd. – 45,854 Total $ 766,592 $ 463,485 For the Nine Months Ended September 30, 2018 2017 Purchase from Shandong Yibao Biologics Co. Ltd. $ – $ 227,975 Total $ – $ 227,975 Customer Deposit from related party September 30, 2018 December 31, 2017 Customer deposit from Shandong Yibao Biologics Co. Ltd. $ 2,912 $ – Total $ 2,912 $ – Due to related parties September 30, 2018 December 31, 2017 To Shandong Yibao Biologics Co. Ltd $ 14,560 $ – To Jinxiang Confucian Food Testing Co, Ltd. 58,241 – To Xiuhua Song 2,391,385 2,630,912 To Hengchun Zhang 260,550 270,000 Total $ 2,724,736 $ 2,900,912 |
1. Organizations and Summary _4
1. Organizations and Summary of Significant Accounting Policies (Details - Inventories) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Finished goods | $ 139,001 | $ 7,106 |
Work in progress | 96,476 | 47,292 |
Raw materials | 157,784 | 46,902 |
Packaging material | 72,086 | 26,035 |
Total | $ 465,347 | $ 127,335 |
1. Organizations and Summary _5
1. Organizations and Summary of Significant Accounting Policies (Details - Foreign currency translation) - China, Yuan Renminbi | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Statement of Operations [Member] | |||||
Foreign Currency Exchange Rate Translation | 6.81 | 6.67 | 6.51 | 6.80 | |
Balance Sheet [Member] | |||||
Foreign Currency Exchange Rate Translation | 6.87 | 6.87 | 6.51 |
1. Organizations and Summary _6
1. Organizations and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Accounts receivable | $ 188,179 | $ 0 | |
Asset impairment | 0 | $ 0 | |
Uncertain tax positions | $ 0 | $ 0 | |
Enterprise income tax | 25.00% | ||
Antidilutive securities | 0 | 0 | |
Yibao HK [Member] | |||
Ownership percentage | 100.00% | ||
Place of incorporation | Hong Kong Company | ||
Shandong Confucian Biologics [Member] | |||
Ownership percentage | 100.00% | ||
Place of incorporation | China Operating Company | ||
Yibaoccyb [Member] | |||
Place of incorporation | BVI Company | ||
YibaoccbyMember | |||
Ownership percentage | 51.00% | ||
Noncontrolling interest | 49.00% |
2. Going Concern (Details Narra
2. Going Concern (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Net losses | $ 14,716 | $ (67,141) | $ (15,854) | $ (376,811) | |
Accumulated deficit | $ (1,276,114) | $ (1,276,114) | $ (1,179,676) |
3. Concentration of Credit Ri_2
3. Concentration of Credit Risk (Details Narrative) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Cash | $ 29,430 | $ 369,607 | $ 595,945 | $ 339,147 |
Cash in excess of FDIC limits | 0 | 0 | ||
UNITED STATES | ||||
Cash | 21,659 | 62,246 | ||
CHINA | ||||
Cash | $ 7,771 | $ 307,361 |
4. Other Receivable (Details Na
4. Other Receivable (Details Narrative) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Other receivable | $ 52,264 | $ 33,251 |
Value Added Tax [Member] | ||
Other receivable | 29,347 | 33,251 |
Temporary Funding [Member] | ||
Other receivable | $ 19,702 | $ 0 |
5. Prepaid Expenses (Details)
5. Prepaid Expenses (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Prepaid expenses | $ 30,503 | $ 50,753 |
Utilities [Member] | ||
Prepaid expenses | 1,456 | 1,537 |
Prepaid Professional Fees [Member] | ||
Prepaid expenses | 25,407 | 44,974 |
Other Prepaid Expenses [Member] | ||
Prepaid expenses | $ 3,640 | $ 4,242 |
6. Property and Equipment (Deta
6. Property and Equipment (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Property and equipment gross | $ 3,154,038 | $ 3,097,907 |
Less accumulated depreciation | (690,671) | (559,327) |
Property and equipment net | 2,463,367 | 2,538,580 |
Buildings [Member] | ||
Property and equipment gross | 1,758,779 | 1,858,989 |
Vehicles [Member] | ||
Property and equipment gross | 11,284 | 11,912 |
Manufacturing equipment [Member] | ||
Property and equipment gross | 1,161,343 | 1,133,045 |
Office Equipment [Member] | ||
Property and equipment gross | 89,283 | 93,961 |
Construction in Progress [Member] | ||
Property and equipment gross | $ 133,349 | $ 0 |
6. Property and Equipment (De_2
6. Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 54,385 | $ 51,356 | $ 169,511 | $ 150,211 |
7. Intangible Assets - Net (Det
7. Intangible Assets - Net (Details - land use) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Intangible assets, gross | $ 744,677 | $ 786,075 |
Less: accumulated amortization | (68,040) | (60,032) |
Intangible assets, net | 676,637 | 726,043 |
Land3Member | ||
Intangible assets, gross | 23,923 | 25,252 |
May 2013 - April 2063 [Member] | ||
Intangible assets, gross | 524,190 | 553,332 |
Dec. 2015 to Sept 2065 [Member] | ||
Intangible assets, gross | $ 196,564 | $ 207,491 |
7. Intangible Assets - Net (D_2
7. Intangible Assets - Net (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization | $ 3,746 | $ 3,835 | $ 11,781 | $ 11,276 |
Land use term | 50 years |
9. Income Tax (Details - Income
9. Income Tax (Details - Income Tax Provision) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Current | ||||
USA | $ 0 | $ 0 | ||
China | 0 | 41,115 | ||
Total provision for income tax | $ 0 | $ 0 | 0 | 0 |
China [Member] | ||||
Current | ||||
Deferred tax assets for NOL carryforwards | (41,115) | 18,256 | (41,115) | 18,256 |
Valuation allowance | 0 | (18,256) | 0 | (18,256) |
Net changes in deferred income tax under non-current portion | (41,115) | 0 | (41,115) | 0 |
USA [Member] | ||||
Current | ||||
Deferred tax assets for NOL carryforwards | 37,865 | 37,893 | 37,865 | 37,893 |
Valuation allowance | (37,865) | (37,893) | (37,865) | (37,893) |
Net changes in deferred income tax under non-current portion | $ 0 | $ 0 | $ 0 | $ 0 |
9. Income Tax (Details - Deferr
9. Income Tax (Details - Deferred tax assets) - Temporary Differences [Member] - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Net operating loss carry forwards | $ 324,060 | $ 327,310 |
Valuation allowance | (324,060) | (327,310) |
Net deferred tax assets | $ 0 | $ 0 |
9. Income Tax (Details - Reconc
9. Income Tax (Details - Reconcilation of tax rate) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Tax expense at statutory rate-US | 21.00% | 34.00% |
Foreign income not recognized in the US | (21.00%) | (34.00%) |
PRC enterprise income tax rate | 25.00% | 25.00% |
Loss not subject to income tax | (25.00%) | (25.00%) |
Effective income tax rates | 0.00% | 0.00% |
9. Income Tax (Details Narrativ
9. Income Tax (Details Narrative) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Decrease in deferred tax asset | $ (88,781) |
10. Equity (Details Narrative)
10. Equity (Details Narrative) - shares | Sep. 30, 2018 | Dec. 31, 2017 |
Preferred stock shares issued | 974,730 | 974,730 |
Preferred stock shares outstanding | 974,730 | 974,730 |
Series B Preferred Stock [Member] | ||
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
11. Non-Controlling Interest (D
11. Non-Controlling Interest (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |||||
Beginning balance | $ 292,072 | $ 304,291 | $ 304,291 | ||
Net income (loss) attributed to non-controlling interest | $ 40,435 | $ 10,745 | 80,584 | $ (38,861) | (31,538) |
Foreign currency translation gain (loss) attributable to non-controlling interest | (19,642) | 19,319 | |||
Ending balance | $ 353,014 | $ 353,014 | $ 292,072 |
12. Related Party Transaction_2
12. Related Party Transactions (Details - Income Stmt) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Sales to related parties | $ 766,592 | $ 463,485 |
Purchases from related parties | 0 | 227,975 |
Shandong Yibao Biologics [Member] | ||
Sales to related parties | 766,592 | 417,631 |
Purchases from related parties | 0 | 227,975 |
Shandong Yibao Import & Export Trading [Member] | ||
Sales to related parties | $ 0 | $ 45,854 |
12. Related Party Transaction_3
12. Related Party Transactions (Details - Accounts Receivable) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Customer Deposit from related party | $ 2,912 | $ 0 |
Shandong Yibao Biologics [Member] | ||
Customer Deposit from related party | $ 2,912 | $ 0 |
12. Related Party Transaction_4
12. Related Party Transactions (Details - Due to related parties) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Due to related parties | $ 2,724,736 | $ 2,900,912 |
Shandong Yibao Biologics [Member] | ||
Due to related parties | 14,560 | 0 |
Jinxiang Confucian Food Testing [Member] | ||
Due to related parties | 58,241 | 0 |
Hengchun Zhang [Member] | ||
Due to related parties | 260,550 | 270,000 |
Xiuhua Song [Member] | ||
Due to related parties | $ 2,391,385 | $ 2,630,912 |
13. Major Suppliers and Custo_2
13. Major Suppliers and Customers (Details Narrative) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Supplies [Member] | Supplier 1 [Member] | ||
Concentration risk | 19.97% | |
Supplies [Member] | Supplier A [Member] | ||
Concentration risk | 21.96% | |
Supplies [Member] | Supplier B [Member] | ||
Concentration risk | 18.95% | |
Supplies [Member] | Supplier C [Member] | ||
Concentration risk | 18.54% | |
Sales Revenue, Net [Member] | Shandong Yibao Biologics [Member] | ||
Concentration risk | 42.76% | 28.72% |
Sales Revenue, Net [Member] | Anhui Xiancheng Import and Export Company [Member | ||
Concentration risk | 27.43% | |
Sales Revenue, Net [Member] | Ping Xiang Import and Export [Member] | ||
Concentration risk | 14.85% | 15.46% |
Sales Revenue, Net [Member] | Nanjing Hejian Biologics [Member] | ||
Concentration risk | 18.51% | |
Sales Revenue, Net [Member] | Jiangshan Huacheng Import and Export [Member] | ||
Concentration risk | 12.32% |