R |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE
SECURITIES EXCHANGE ACT OF
1934
|
□ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware
|
77-0632186
|
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer Identification No.)
|
|
415
West Foothill Blvd, Suite 206 Claremont,
California
|
91711-2766
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
accelerated filer □
|
Accelerated
filer □
|
|
Non-accelerated
filer □
|
Smaller
reporting company R
|
Class
|
Outstanding
at May 8, 2008
|
|
Common
Stock, $0.001 par value per share
|
88,191,960
shares
|
PART
I.
|
FINANCIAL
INFORMATION
|
2
|
ITEM
1.
|
FINANCIAL
STATEMENTS
|
2
|
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
21
|
ITEM
3.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
30
|
ITEM
4.
|
CONTROLS
AND PROCEDURES
|
30
|
PART
II.
|
OTHER
INFORMATION
|
32
|
ITEM
1.
|
LEGAL
PROCEEDINGS
|
32
|
ITEM
2.
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
32
|
ITEM
3.
|
DEFAULTS
UPON SENIOR SECURITIES
|
32
|
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS
|
32
|
ITEM
5.
|
OTHER
INFORMATION
|
32
|
ITEM
6.
|
EXHIBITS
|
32
|
SIGNATURES
|
34
|
KIWA
BIO-TECH PRODUCTS GROUP CORPORATION
|
|||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
Item
|
March
31, 2008
|
December
31, 2007
|
|||||
(UNAUDITED)
|
(AUDITED)
|
||||||
ASSETS
|
|
|
|||||
Current
assets
|
|
|
|||||
Cash
and cash equivalents
|
$
|
236,929
|
$
|
61,073
|
|||
Accounts
receivable, net of allowance for doubtful
accounts
of $290,827 and $277,140
|
681,210
|
470,298
|
|||||
Inventories
|
993,098
|
818,329
|
|||||
Prepaid
expenses
|
39,980
|
70,460
|
|||||
Other
current assets
|
116,434
|
67,372
|
|||||
Total
current assets
|
2,067,651
|
1,487,532
|
|||||
Property,
Plant and Equipment
|
|||||||
Buildings
|
1,209,343
|
1,162,060
|
|||||
Machinery
and equipment
|
687,141
|
660,273
|
|||||
Automobiles
|
79,252
|
76,154
|
|||||
Office
equipment
|
97,023
|
93,231
|
|||||
Computer
software
|
10,279
|
9,877
|
|||||
Property,
plant and equipment - total
|
2,083,038
|
2,001,595
|
|||||
Less:
accumulated depreciation
|
(480,350
|
)
|
(433,690
|
)
|
|||
Property,
plant and equipment - net
|
1,602,688
|
1,567,905
|
|||||
Construction
in progress
|
69,998
|
67,262
|
|||||
Intangible
asset - net
|
291,637
|
296,245
|
|||||
Deferred
financing costs
|
109,293
|
129,793
|
|||||
Deposit
to purchase proprietary technology
|
126,443
|
126,443
|
|||||
Total
assets
|
$
|
4,267,710
|
$
|
3,675,180
|
|||
LIABILITIES
AND SHAREHOLDERS’ EQUITY (DEFICIENCY)
|
|||||||
Current
liabilities
|
|||||||
Accounts
payable
|
$
|
2,135,752
|
$
|
1,850,043
|
|||
Construction
costs payable
|
308,425
|
316,902
|
|||||
Due
to related parties - trade
|
220,829
|
177,970
|
|||||
Due
to related parties - non-trade
|
481,949
|
551,654
|
|||||
Current
portion of bank notes payable
|
6,582
|
2,889
|
|||||
Total
current liabilities
|
3,153,537
|
2,854,458
|
|||||
Long-term
liabilities, less current portion
|
|||||||
Unsecured
loans payable
|
1,638,410
|
1,574,350
|
|||||
Bank
notes payable
|
12,819
|
17,988
|
|||||
Long-term
convertible notes payable
|
2,116,104
|
2,058,625
|
|||||
Less:
discount relating to long-term
convertible notes payable
|
(734,764
|
)
|
(856,308
|
)
|
|||
Long-term
convertible notes payable - net
|
1,381,340
|
1,202,317
|
|||||
Total
long-term liabilities
|
3,032,569
|
2,794,655
|
|||||
|
|||||||
Minority
interest in a subsidiary
|
90,462
|
110,838
|
|||||
|
|||||||
Shareholders’
equity (deficiency)
|
|||||||
Common
stock - $0.001 par value
Authorized
200,000,000 shares. Issued and
outstanding
87,548,642 and 81,519,676 shares at
March
31, 2008 and December 31, 2007
|
87,549
|
81,520
|
|||||
Preferred
stock - $0.001 par value
Authorized
20,000,000 shares, none issued
|
-
|
-
|
|||||
Additional
paid-in capital
|
9,940,335
|
9,217,876
|
|||||
Stock-based
compensation reserve
|
(265,909
|
)
|
(307,053
|
)
|
|||
Deficit
accumulated
|
(11,760,717
|
)
|
(11,074,522
|
)
|
|||
Accumulated
other comprehensive income
|
(10,116
|
)
|
(2,592
|
)
|
|||
Total
shareholders’ equity (deficiency)
|
(2,008,858
|
)
|
(2,084,771
|
)
|
|||
Total
liabilities and stockholders’ equity
|
$
|
4,267,710
|
$
|
3,675,180
|
SEE
ACCOMPANYING NOTES
|
KIWA
BIO-TECH PRODUCTS GROUP CORPORATION
|
|||||
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
|
|||||
(UNAUDITED)
|
Item
|
Three
Months Ended March 31,
|
||||||
2008
|
2007
|
||||||
Net
sales
|
$
|
2,184,271
|
$
|
1,384,093
|
|||
Cost
of sales
|
2,121,566
|
1,245,770
|
|||||
Gross
profit
|
62,705
|
138,323
|
|||||
|
|||||||
Operating
expenses
|
|||||||
Consulting
and professional fees
|
118,467
|
189,461
|
|||||
Officers’
compensation
|
59,032
|
65,042
|
|||||
General
and administrative
|
245,370
|
179,024
|
|||||
Selling
expenses
|
48,454
|
143,625
|
|||||
Research
and development
|
45,717
|
49,304
|
|||||
Depreciation
and amortization
|
26,177
|
31,273
|
|||||
Allowance
and provision
|
2,381
|
266
|
|||||
Total
operating expenses
|
545,598
|
657,995
|
|||||
Operating
loss
|
(482,893
|
)
|
(519,672
|
)
|
|||
|
|||||||
Interest
expenses
|
(219,547
|
)
|
(125,758
|
)
|
|||
Loss
before minority interest in a subsidiary’s deficit
|
(702,440
|
)
|
(645,430
|
)
|
|||
Minority
interest in a subsidiary’s deficit
|
16,245
|
6,171
|
|||||
Net
loss
|
$
|
(686,195
|
)
|
$
|
(639,259
|
)
|
|
|
|||||||
Other
comprehensive loss
|
|||||||
Translation
adjustment
|
(7,524
|
)
|
(123,794
|
)
|
|||
Comprehensive
loss
|
$
|
(693,719
|
)
|
$
|
(763,053
|
)
|
|
|
|||||||
Net
(loss) per common share -basic and diluted
|
$
|
(0.008
|
)
|
$
|
(0.011
|
)
|
|
Weighted
average number of common
shares
outstanding-basic and diluted
|
83,043,939
|
71,794,704
|
SEE
ACCOMPANYING NOTES
|
KIWA
BIO-TECH PRODUCTS GROUP CORPORATION
|
|||||
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||
(UNAUDITED)
|
Item
|
Three
Months Ended March 31,
|
||||||
2008
|
2007
|
||||||
Cash
flows from operating activities:
|
|
|
|||||
Net
loss
|
$
|
(686,195
|
)
|
$
|
(639,259
|
)
|
|
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
|||||||
Depreciation
and amortization
|
83,624
|
176,233
|
|||||
Amortization
of detachable warrants, options and stocks as compensation
|
271,120
|
122,322
|
|||||
Provision
for doubtful debt and inventory impairment
|
2,381
|
2,758
|
|||||
Minority
interest in a subsidiary
|
16,245
|
(6,171
|
)
|
||||
Changes
in operating assets and liabilities:
|
|||||||
Accounts
receivable
|
(213,293
|
)
|
699,548
|
||||
Inventories
|
(174,769
|
)
|
(328,105
|
)
|
|||
Prepaid
expenses
|
(6,963
|
)
|
617
|
||||
Other
current assets
|
(49,062
|
)
|
9,878
|
||||
Accounts
payable
|
390,076
|
297,953
|
|||||
Due
to related parties-trade
|
35,618
|
-
|
|||||
Net
cash provided by (used in) operating activities
|
(331,218
|
)
|
335,774
|
||||
Cash
flows from investing activities:
|
|||||||
Purchase
of property and equipment
|
-
|
(89,493
|
)
|
||||
Net
cash used in investing activities
|
-
|
(89,493
|
)
|
||||
Cash
flows from financing activities:
|
|||||||
Proceeds
from issuance of common stock
|
650,000
|
-
|
|||||
Proceeds
from related parties
|
180,457
|
55,818
|
|||||
Repayment
to related parties
|
(319,572
|
)
|
(47,085
|
)
|
|||
Repayment
of long-term borrowings
|
(2,325
|
)
|
(1,364
|
)
|
|||
Net
cash provided by financing activities
|
508,560
|
7,369
|
|||||
Effect
of exchange rate changes on cash and cash
equivalents
|
(1,486
|
)
|
21,904
|
||||
Cash
and cash equivalents:
|
|
|
|||||
Net
increase (decrease)
|
175,856
|
275,554
|
|||||
Balance
at beginning of period
|
61,073
|
498,103
|
|||||
Balance
at end of period
|
$
|
236,929
|
$
|
773,657
|
|||
|
|||||||
Supplemental
Disclosures of Cash flow Information:
|
|||||||
Cash
paid for interest
|
$
|
519
|
$
|
-
|
|||
Cash
paid for taxes
|
$
|
-
|
$
|
-
|
|||
Non-cash
investing and financing activities:
|
|||||||
Issuance
of common stock for long-term convertible notes
payable and interest
|
58,888
|
89,482
|
|||||
Issuance
of stock as compensation to consultants
|
19,600
|
-
|
|||||
Issuance
of stock to repay related-party
|
-
|
-
|
|||||
Issuance
of stock for cashless exercise of warrants
|
-
|
1,000
|
|||||
Conversion
of accrued interests into principal
|
112,917
|
-
|
|||||
|
|||||||
SEE
ACCOMPANYING NOTES
|
KIWA
BIO-TECH PRODUCTS GROUP CORPORATION
|
|||||||||||||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(DEFICIENCY)
|
|||||||||||||||||||
(UNAUDITED)
|
|||||||||||||||||||
Item
|
Common
Stock
|
Additional
Paid-in
|
Stock-based
Compensation
|
Accumulated
|
Other
Comprehensive
|
Total
Stockholders’
|
||||||||||||||||
Shares
|
Amount
|
Capital
|
Reserve
|
Deficits
|
Income
|
Deficiency
|
||||||||||||||||
Balance,
January 1, 2007
|
70,149,556
|
70,150
|
8,311,975
|
(523,468
|
)
|
(7,766,654
|
)
|
1,166
|
93,169
|
|||||||||||||
Issuance
of common stock for exercise of warrants at January 5,
2007
|
1,000,000
|
1,000
|
(1,000
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||
Issuance
of common stock for cashless exercise of warrants on April 11,
2007
|
610,278
|
610
|
(610
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||
Issuance
of common stock for cashless exercise of warrants on April 20,
2007
|
97,844
|
98
|
(98
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||
Issuance
of common stock for conversion of principal and interest of 6%
Notes
during 12 months ended December 31, 2007
|
5,821,998
|
5,822
|
353,405
|
-
|
-
|
-
|
359,227
|
|||||||||||||||
Issuance
of 700,000 shares of common stock to a consultant on April 18,
2007
|
700,000
|
700
|
125,300
|
-
|
-
|
-
|
126,000
|
|||||||||||||||
Issuance
of 140,000 shares of common stock to an investor relations consultant
on
October 24, 2007
|
140,000
|
140
|
20,860
|
-
|
-
|
-
|
21,000
|
|||||||||||||||
Issuance
of 3,000,000 shares to two Chinese citizens designated by a related
party
on October 30, 2007
|
3,000,000
|
3,000
|
222,300
|
-
|
-
|
-
|
225,300
|
|||||||||||||||
Issuance
of 250,000 shares of warrants to a consultant
|
-
|
-
|
44,414
|
-
|
-
|
-
|
44,414
|
|||||||||||||||
Amortizaton
of fair value of warrants issued to a financing consultant during
fiscal
year ended December 31, 2007
|
-
|
-
|
-
|
77,181
|
-
|
-
|
77,181
|
|||||||||||||||
Amortization
of fair value of employee stock option cancelled
|
-
|
-
|
-
|
55,792
|
-
|
-
|
55,792
|
|||||||||||||||
Amortization
of fair value of employee stock options granted in 2006
|
-
|
-
|
-
|
83,442
|
-
|
-
|
83,442
|
|||||||||||||||
Fair
value of warrants issued to a related party in June
|
-
|
-
|
15,172
|
-
|
-
|
-
|
15,172
|
|||||||||||||||
Fair
value of warrants issued to a related party in September
|
-
|
-
|
60,742
|
-
|
-
|
-
|
60,742
|
|||||||||||||||
Fair
value of warrants issued to a related party in December
|
-
|
-
|
65,416
|
-
|
-
|
-
|
65,416
|
|||||||||||||||
Net
loss for fiscal ended December 31, 2007
|
-
|
-
|
-
|
-
|
(3,307,868
|
)
|
-
|
(3,307,868
|
)
|
|||||||||||||
Other
comprehensive income fiscal year ended December 31, 2007
|
-
|
-
|
-
|
-
|
-
|
(3,758
|
)
|
(3,758
|
)
|
|||||||||||||
Balance,
December 31, 2007
|
81,519,676
|
81,520
|
9,217,876
|
(307,053
|
)
|
(11,074,522
|
)
|
(2,592
|
)
|
(2,084,771
|
)
|
|||||||||||
Issuance
of 140,000 shares of common stock to an Investor Relations consultant
on
February 27, 2008
|
140,000
|
140
|
19,460
|
-
|
-
|
-
|
19,600
|
|||||||||||||||
Issuance
of 5,000,000 shares of common stock to an investor for the consideration
of $650,000 on March 14, 2008
|
5,000,000
|
5,000
|
645,000
|
-
|
-
|
-
|
650,000
|
|||||||||||||||
Issuance
of common stock for conversion of principal and interest of 6%
Notes
during three months ended March, 31, 2008
|
888,966
|
889
|
57,999
|
-
|
-
|
-
|
58,888
|
|||||||||||||||
Amortizaton
of fair value of warrants issued to a financing consultant during
three
months ended March 31, 2008
|
-
|
-
|
-
|
19,295
|
-
|
-
|
19,295
|
|||||||||||||||
Amortization
of fari value of employee stock options granted in 2006
|
-
|
-
|
-
|
21,849
|
-
|
-
|
21,849
|
|||||||||||||||
Net
loss for the three months ended March 31, 2008
|
-
|
-
|
-
|
-
|
(686,195
|
)
|
-
|
(686,195
|
)
|
|||||||||||||
Other
comprehensive income for the three months ended March 31,
2008
|
-
|
-
|
-
|
-
|
-
|
(7,524
|
)
|
(7,524
|
)
|
|||||||||||||
Balance,
March 31, 2008
|
87,548,642
|
87,549
|
9,940,335
|
(265,909
|
)
|
(11,760,717
|
)
|
(10,116
|
)
|
(2,008,858
|
)
|
SEE
ACCOMPANYING NOTES
|
Buildings
|
20-35
years
|
Machinery
and equipment
|
4-12
years
|
Automobiles
|
8
years
|
Office
equipments
|
5
years
|
Computer
software
|
3
years
|
Item
|
March
31, 2008
|
December
31, 2007
|
|||||
Accounts
receivables - gross
|
$
|
972,037
|
$
|
747,438
|
|||
Allowance
for doubtful accounts
|
(290,827
|
)
|
(277,140
|
)
|
|||
Accounts
receivables - net
|
$
|
681,210
|
$
|
470,298
|
Item
|
March
31, 2008
|
December
31, 2007
|
|||||
Raw
materials
|
$
|
890,101
|
$
|
686,290
|
|||
Finished
goods
|
102,997
|
132,039
|
|||||
Total
|
$
|
993,098
|
$
|
818,329
|
Item
|
March
31, 2008
|
December
31, 2007
|
|||||
Prepaid
stock-based compensation to consultants
|
$
|
14,061
|
$
|
46,865
|
|||
Others
|
25,919
|
23,595
|
|||||
Total
|
$
|
39,980
|
$
|
70,460
|
Item
|
March
31, 2008
|
December
31, 2007
|
|||||
Property
plant and equipment:
|
|||||||
Buildings
|
$
|
1,209,343
|
$
|
1,162,060
|
|||
Machinery
and equipment
|
687,141
|
660,273
|
|||||
Automobiles
|
79,252
|
76,154
|
|||||
Office
equipment
|
97,023
|
93,231
|
|||||
Computer
software
|
10,279
|
9,877
|
|||||
Property
plant and equipment - total
|
$
|
2,083,038
|
$
|
2,001,595
|
|||
Less:
Accumulated depreciation
|
(480,350
|
)
|
(433,690
|
)
|
|||
Property
plant and equipment - net
|
$
|
1,602,688
|
$
|
1,567,905
|
|
Accumulated
|
|
Net
value
|
||||||||||
|
Gross
carrying
|
amount
of
|
Net
Value at
|
at
December 31,
|
|||||||||
Amortization
Year
|
value
|
amortization
|
March
31, 2008
|
2007
|
|||||||||
8.5
|
$
|
480,411
|
$
|
188,774
|
$
|
291,637
|
$
|
296,245
|
Future
expected amortization
|
Amount
|
|||
2008
|
$
|
42,389
|
||
2009
|
56,519
|
|||
2010
|
56,519
|
|||
2011
|
56,519
|
|||
2012
|
56,519
|
|||
Thereafter
|
$
|
23,172
|
Item
|
March
31, 2008
|
December
31, 2007
|
|||||
Consulting
and professional payables
|
$
|
354,017
|
$
|
436,381
|
|||
Payables
to material suppliers
|
895,922
|
425,306
|
|||||
Interest
payable
|
116,275
|
192,275
|
|||||
Salary
payable
|
253,266
|
212,219
|
|||||
Insurance
payable
|
99,981
|
95,247
|
|||||
Office
rental payable
|
84,255
|
80,960
|
|||||
Credit
card balance
|
81,966
|
84,042
|
|||||
Advances
from customers
|
138,683
|
169,553
|
|||||
Others
|
111,387
|
109,059
|
|||||
Total
|
$
|
2,135,752
|
$
|
1,805,043
|
Item
|
Nature
|
Notes
|
March
31, 2008
|
|
December
31, 2007
|
||||||||
Mr.
Wei Li ("Mr. Li")
|
Non-trade
|
(1)
|
|
$
|
466,041
|
$
|
377,218
|
||||||
Discount
of loans due to Mr. Li with detachable
warrants
|
Non-trade
|
(36,805
|
)
|
(88,195
|
)
|
||||||||
China
Star Investment Management Co., Ltd. ("China
Star")
|
Non-trade
|
(2)
|
|
(22,287
|
)
|
205,631
|
|||||||
Ms.
Yvonne Wang ("Ms. Wang")
|
Non-trade
|
(3)
|
|
75,000
|
57,000
|
||||||||
Subtotal
|
|
$
|
481,949
|
$
|
551,654
|
||||||||
Kiwa-CAU
R&D Center
|
Trade
|
(4)
|
|
206,582
|
164,280
|
||||||||
Tianjin
Challenge Feed Co., Ltd. ("Challenge Feed")
|
Trade
|
(5)
|
|
14,247
|
13,690
|
||||||||
Subtotal
|
$
|
220,829
|
$
|
177,970
|
|||||||||
Total
|
$
|
702,778
|
$
|
729,624
|
Item
|
March
31, 2008
|
December
31, 2007
|
|||||
Unsecured
loan payable to Zoucheng Municipal Government,
|
|||||||
non-interest
bearing, becoming due within three years from
|
|||||||
Kiwa
Shandong’s first profitable year on a formula basis,
|
|||||||
interest
has not been imputed due to the undeterminable
|
|||||||
repayment
date
|
$
|
1,282,234
|
$
|
1,232,100
|
|||
Unsecured
loan payable to Zoucheng Science & Technology
|
|||||||
Bureau,
non-interest bearing, it is due in Kiwa Shandong’s
|
|||||||
first
profitable year, interest has not been imputed due to the
|
|||||||
undeterminable
repayment date
|
356,176
|
342,250
|
|||||
Total
|
$
|
1,638,410
|
$
|
1,574,350
|
Item
|
Bio-fertilizer
|
Livestock
Feed
|
Urea
Entrepot Trade (1) |
Corporate (2)
|
Total
|
|||||||||||
Three
months ended March 31, 2008
|
||||||||||||||||
Net
sales
|
$
|
148,104
|
$
|
2,036,167
|
$
|
-
|
$
|
-
|
$
|
2,184,271
|
||||||
Gross
profit
|
45,332
|
17,373
|
-
|
-
|
62,705
|
|||||||||||
Operating
expenses
|
80,371
|
98,615
|
-
|
366,612
|
545,598
|
|||||||||||
Operating
profit (loss)
|
(35,039
|
)
|
(81,242
|
)
|
-
|
(366,612
|
)
|
(482,893
|
)
|
|||||||
Interest
income (expense)
|
(176
|
)
|
17
|
-
|
(219,388
|
)
|
(219,547
|
)
|
||||||||
Minority
interest in subsidiary
|
-
|
16,245
|
-
|
-
|
16,245
|
|||||||||||
Net
income (loss)
|
$
|
(35,215
|
)
|
$
|
(64,980
|
)
|
$
|
-
|
$
|
(586,000
|
)
|
$
|
(686,195
|
)
|
||
Total
assets as of March 31, 2008
|
$
|
2,213,590
|
$
|
1,431,473
|
$
|
-
|
$
|
622,647
|
$
|
4,267,710
|
||||||
Three
months ended March 31, 2007
|
||||||||||||||||
Net
sales
|
$
|
11,976
|
$
|
1,372,117
|
$
|
-
|
$
|
-
|
$
|
1,384,093
|
||||||
Gross
profit
|
2,863
|
135,460
|
-
|
-
|
138,323
|
|||||||||||
Operating
expenses
|
77,319
|
166,361
|
48,458
|
365,857
|
657,995
|
|||||||||||
Operating
profit (loss)
|
(74,456
|
)
|
(30,901
|
)
|
(48,458
|
)
|
(365,857
|
)
|
(519,672
|
)
|
||||||
Interest
income (expense)
|
(2,545
|
)
|
46
|
-
|
(123,259
|
)
|
(125,758
|
)
|
||||||||
Minority
interest in subsidiary
|
-
|
6,171
|
-
|
-
|
6,171
|
|||||||||||
Net
income (loss)
|
$
|
(77,001
|
)
|
$
|
(24,684
|
)
|
$
|
(48,458
|
)
|
$
|
(489,116
|
)
|
$
|
(639,259
|
)
|
|
Total
assets as of March 31, 2007
|
$
|
2,141,060
|
$
|
840,769
|
$
|
833,104
|
$
|
473,083
|
$
|
4,288,016
|
Fiscal
year
|
Amount
|
||
2008
|
$
|
167,490
|
|
2009
|
53,140
|
||
Total
|
$
|
220,630
|
Bio-fertilizer
|
Changes
|
Bio-enhanced
feed
|
Changes
|
||||||||||||||||||||||
2008
Q1
|
2007
Q1
|
Amount
|
Percentage
|
2008
Q1
|
2007
Q1
|
Amount
|
Percentage
|
||||||||||||||||||
Net
Sales
|
$
|
148,104
|
$
|
11,976
|
$
|
136,128
|
1136.7
|
%
|
$
|
2,036,169
|
$
|
1,372,117
|
$
|
664,052
|
48.4
|
%
|
|||||||||
Cost
of Sales
|
102,772
|
9,113
|
93,659
|
1027.8
|
%
|
2,018,794
|
1,236,657
|
782,137
|
63.2
|
%
|
|||||||||||||||
Gross
Profit
|
$
|
45,332
|
$
|
2,863
|
$
|
42,469
|
1483.4
|
%
|
$
|
17,375
|
$
|
135,460
|
$
|
(118,085
|
)
|
-87.2
|
%
|
||||||||
Gross
Profit Margin
|
30.6
|
%
|
23.9
|
%
|
0.9
|
%
|
9.9
|
%
|
Exhibit
No.
|
Description
|
Incorporated
by Reference in Document
|
Exhibit
No. in Incorporated Document
|
3.1
|
Certificate
of Incorporation, effective as of July 21, 2004.
|
Form
8-K filed on July
23
2004
|
3.1
|
3.2
|
Bylaws,
effective as of July 22, 2004.
|
FORM
8-K FILED ON JULY
23, 2004
|
3.2
|
3.3
|
Certificate
of Amendment to Certificate of Incorporation, effective as of September
27, 2006.
|
Form
10-QSB filed on November 15, 2006
|
3.3
|
Exhibit
No.
|
Description
|
Incorporated
by Reference in Document
|
Exhibit
No. in Incorporated Document
|
10.1
|
Consulting
Agreement between the Company and Robert Schechter dated January
10,
2008
|
Filed
herewith.
|
|
21
|
List
of Subsidiaries
|
Form
10-KSB filed on April 2, 2007
|
|
31.1
|
Certification
of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)
of the
Securities Exchange Act of 1934
|
Filed
herewith.
|
|
31.2
|
Certification
of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)
of the
Securities Exchange Act of 1934
|
Filed
herewith.
|
|
32.1
|
Certification
of Principal Executive Officer, pursuant to 18 U.S.C. 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
Filed
herewith.
|
|
32.2
|
Certification
of Principal Financial Officer, pursuant to 18 U.S.C. 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
Filed
herewith.
|
/s/
Wei Li
|
May
8, 2008
|
Chief
Executive Officer and Chairman of the Board of
Directors
|
Wei
Li
|
(Principal
Executive Officer)
|
|
/s/
Lianjun Luo
|
May
8, 2008
|
Chief
Financial Officer and Director
|
Lianjun
Luo
|
(Principal
Financial Officer and Principal Accounting
Officer)
|