ADVANCED
BATTERY TECHNOLOGIES, INC.
|
|
(Exact
name of registrant as specified in its charter)
|
|
Delaware
|
22-2497491
|
(State
of other jurisdiction of
|
(IRS
Employer
|
incorporation
or organization
|
Identification
No.)
|
15
West 39th
Street, Suite 14A, New York, New York
|
10018
|
(Address
of principal executive offices)
|
(Zip
Code)
|
212-391-2752
|
|
(Registrant’s
telephone number including area
code)
|
Item
2.01
|
Completion
of Acquisition of Assets
|
Item
3.02
|
Unregistered
Sale of Equity Securities
|
10-a
|
Share
Purchase Agreement dated April 2009 among Wuxi Baoshiyun Autocycle Co.,
Ltd., Bao Jin, Cashtech Investment Limited and Advanced Battery
Technologies, Inc. – filed as an exhibit to the Current Report on Form 8-K
dated April 28, 2009 and filed on April 30, 2009, and incorporated herein
by reference.
|
10-b
|
Share
Purchase Supplemental Agreement dated April 28 2009 among Wuxi Baoshiyun
Autocycle Co., Ltd., Bao Jin, Cashtech Investment Limited and Advanced
Battery Technologies, Inc.
|
|
ADVANCED
BATTERY TECHNOLOGIES, INC.
|
||
Dated:
July 20, 2009
|
By:
|
/s/ Fu
Zhiguo
|
Fu
Zhiguo, Chief Executive Officer
|
||
Financial
Statements for the Three Month Periods Ended
|
|
March
31, 2009 and 2008
|
|
Balance
Sheet as of March 31, 2009 (Unaudited)
|
F-2
|
Statements
of Operation for the three months ended March 31, 2009 and 2008
(Unaudited)
|
F-3
|
Statements
of Cash Flows for the three months ended March 31, 2009 and 2008
(Unaudited)
|
F-4
|
Notes
to Financial Statements (Unaudited)
|
F-5-17
|
Financial
Statements for the Years Ended
|
|
December
31, 2008 and 2007
|
|
Report
of Independent Registered Public Accounting Firm
|
F-18
|
Balance
Sheets as of December 31, 2008 and 2007
|
F-19
|
Statements
of Operation for the years ended December 31, 2008 and
2007
|
F-20
|
Statements
of Shareholder’s Equity for the years ended
December 31, 2008 and 2007
|
F-21
|
Statements
of Cash Flows for the years ended December 31, 2008 and
2007
|
F-22
|
Notes
to Financial Statements
|
F-23-36
|
ADVANCED
BATTERY TECHNOLOGIES, INC.
|
|
INDEX
TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
STATEMENTS
|
|
Introduction
to Unaudited Pro Forma Condensed Combined Financial
Statements
|
F-37
|
Unaudited
Pro Forma Condensed Combined Balance Sheet- March 31, 2009
|
F-38
|
Unaudited
Pro Forma Condensed Combined Statement of Income for the three months
ended March 31, 2009
|
F-39
|
Unaudited
Pro Forma Condensed Combined Statement of Income for the year ended
December 31, 2008
|
F-40
|
Notes
to Unaudited Pro Forma Condensed Combined Financial
Statements
|
F-41-42
|
WUXI ANGELL AUTOCYCLE, CO.,
LTD
|
||||
BALANCE
SHEET
|
||||
(UNAUDITED)
|
||||
March 31,
2009
|
||||
ASSETS
|
||||
CURRENT
ASSETS
|
||||
Cash & cash
equivalents
|
$ | 193,603 | ||
Accounts receivable, net of
allowance for doubtful accounts
|
632,090 | |||
Other receivables, net of
allowance
|
62,947 | |||
Loan to related
parties
|
731,923 | |||
Inventory
|
1,377,852 | |||
Advances to suppliers, net of
allowance
|
1,824,498 | |||
Total current
assets
|
4,822,912 | |||
PROPERTY AND EQUIPMENT,
NET
|
19,575,484 | |||
INTANGIBLE ASSET,
NET
|
5,999,893 | |||
TOTAL
ASSETS
|
$ | 30,398,289 | ||
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
||||
CURRENT
LIABILITIES
|
||||
Accounts
payable
|
$ | 6,216,585 | ||
Advances from
customers
|
1,313,928 | |||
Short term bank
loans
|
7,316,295 | |||
Advance from
investor
|
3,814,946 | |||
Loan payable-
other
|
1,862,601 | |||
Accrued expenses and other current
liabilities
|
206,260 | |||
Total current
liabilities
|
20,730,614 | |||
TOTAL
LIABILITIES
|
20,730,614 | |||
SHAREHOLDERS'
EQUITY
|
||||
Registered capital
|
5,082,315 | |||
Additional paid in
capital
|
2,292,512 | |||
Accumulated other comprehensive
income
|
3,154,660 | |||
Retained earnings
(loss)
|
(861,811 | ) | ||
Total shareholders'
equity
|
9,667,676 | |||
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$ | 30,398,289 |
WUXI
ANGELL AUTOCYCLE, CO., LTD
|
||||||||
STATEMENTS
OF OPERATIONS
|
||||||||
(UNAUDITED)
|
||||||||
For
The Three Months Ended March
31,
|
||||||||
2009
|
2008
|
|||||||
Net
sales
|
$ | 749,092 | $ | 2,697,485 | ||||
Cost
of goods sold
|
(636,339 | ) | (1,895,432 | ) | ||||
Gross
profit
|
112,753 | 802,053 | ||||||
Selling
, general and administrative
expenses
|
(957,210 | ) | (311,806 | ) | ||||
Income
(Loss) from operations
|
(844,457 | ) | 490,247 | |||||
Other
income (expenses):
|
||||||||
Interest
income (expenses)
|
(177,587 | ) | (127,263 | ) | ||||
Other
expenses
|
- | (27,733 | ) | |||||
Total
other income (expenses)
|
(177,587 | ) | (154,996 | ) | ||||
Income
(Loss) before income taxes
|
(1,022,044 | ) | 335,251 | |||||
Income
taxes
|
- | - | ||||||
Net
Income (loss)
|
(1,022,044 | ) | 335,251 | |||||
Other
comprehensive income
|
||||||||
Foreign
currency translation gain
(loss)
|
(33,855 | ) | 746,230 | |||||
Comprehensive
Income (loss)
|
$ | (1,055,899 | ) | $ | 1,081,482 | |||
Basic
and diluted earnings (loss) per common
share
|
(0.02 | ) | 0.01 | |||||
Weighted
average number of common
shares
|
40,997,103 | 40,997,103 |
For
The Three Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income (loss)
|
$ | (1,022,044 | ) | $ | 335,251 | |||
Adjustments
to reconcile net income to net cash provided
by (used in) operating
activities:
|
||||||||
Depreciation
and amortization
|
386,571 | 412,932 | ||||||
Bad
debts
|
662,553 | - | ||||||
(Increase)
decrease in current assets:
|
||||||||
Accounts
receivable
|
(494,602 | ) | 401,583 | |||||
Loan
to shareholders and related parties
|
(771,650 | ) | (531,271 | ) | ||||
Other
receivables
|
- | (416 | ) | |||||
Inventory
|
21,404 | (909,364 | ) | |||||
Advance
to suppliers
|
(125,654 | ) | (1,119,457 | ) | ||||
Increase
(decrease) in current liabilities:
|
||||||||
Accounts
payables
|
(2,208,210 | ) | 1,188,337 | |||||
Advances
from customers
|
(166,017 | ) | 1,144,503 | |||||
Accured
expense and other liabilities
|
(423,121 | ) | (212,662 | ) | ||||
|
||||||||
Net
cash provided by (used in) operating
activities
|
(4,140,770 | ) | 709,437 | |||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Acquisition
of property & equipment
|
(256 | ) | - | |||||
|
||||||||
Net
cash used in investing activities
|
(256 | ) | - | |||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Repayment
of short term loans
|
- | (1,396,215 | ) | |||||
Proceeds
from related party loans
|
- | 1,384,938 | ||||||
Proceeds
from investor advance
|
804,364 | - | ||||||
Loan
proceeds from other source
|
(7,314 | ) | 466,336 | |||||
Net
cash provided by (used in) financing
activities
|
797,050 | 455,059 | ||||||
EFFECT
OF EXCHANGE RATE CHANGE ON CASH & CASH
EQUIVALENTS
|
(6,905 | ) | 77,059 | |||||
NET
INCREASE (DECREASE) IN CASH & CASH
EQUIVALENTS
|
(3,350,882 | ) | 1,241,555 | |||||
CASH
& CASH EQUIVALENTS, BEGINNING OF PERIOD
|
3,544,485 | 1,209,551 | ||||||
CASH
& CASH EQUIVALENTS, END OF PERIOD
|
$ | 193,603 | $ | 2,451,106 | ||||
Supplemental
Cash flow data:
|
||||||||
Income
tax paid
|
$ | - | $ | - | ||||
Interest
paid
|
$ | - | $ | 12,252 |
Buildings and
improvements
|
20 years
|
Machinery, equipment and motor
vehicles
|
5-10
years
|
Raw
Materials
|
$ | 955,602 | ||
Finished
goods
|
422,250 | |||
Total
|
$ | 1,377,852 |
Building
and improvements
|
$ | 19,302,351 | ||
Machinery
and equipment
|
5,662,841 | |||
Motor
Vehicles
|
206,762 | |||
25,171,954 | ||||
less:
Accumulated Depreciation
|
(5,596,470 | ) | ||
Total
property, plant and equipment, net
|
$ | 19,575,484 |
Rights
to use land
|
$ | 6,781,904 | ||
Less:
accumulated amortization
|
(782,011 | ) | ||
Total
Intangible Asset, Net
|
$ | 5,999,893 |
As of March
31,
|
||||
2010
|
$ | 133,422 | ||
2011
|
133,422 | |||
2012
|
133,422 | |||
2013
|
133,422 | |||
2014
|
133,422 | |||
Thereafter
|
5,332,783 | |||
$ | 5,999,893 |
a) Loan payable to Huaxia
Bank
|
||||
from 01/01/08 to
09/21/08,
|
||||
a fixed interest rate of 0.5475%
per month
|
$ | 2,926,518 | ||
b) Loan payable to Huaxia
Bank
|
||||
from 01/01/08 to
09/21/08,
|
||||
a fixed interest rate of 0.6225%
per month
|
4,389,777 | |||
Total
|
$ | 7,316,295 |
Deferred
tax assets:
|
||||
Net
operating loss carry forward
|
$ | 1,474,975 | ||
Less:
valuation allowance
|
(1,474,975 | ) | ||
Net
deferred tax assets
|
$ | - |
WUXI ANGELL AUTOCYCLE, CO.,
LTD
|
||||||||
BALANCE
SHEETS
|
||||||||
As of December
31,
|
||||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS
|
||||||||
Cash & cash
equivalents
|
$ | 3,544,485 | $ | 1,209,551 | ||||
Accounts
receivable, net of allowance of $739,895 as of December 31,
2008
and $647,464 as of December 31,
2007
|
175,645 | 2,770,461 | ||||||
Other receivables, net of
allowance
|
171,966 | - | ||||||
Inventory
|
1,401,632 | 1,306,067 | ||||||
Advances to suppliers, net of
allowance
|
2,178,567 | 28,375 | ||||||
Total current
assets
|
7,472,296 | 5,314,454 | ||||||
PROPERTY AND EQUIPMENT,
NET
|
19,961,815 | 19,964,347 | ||||||
INTANGIBLE ASSET,
net
|
6,043,972 | 5,764,477 | ||||||
TOTAL
ASSETS
|
$ | 33,478,083 | $ | 31,043,278 | ||||
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
payable
|
$ | 8,439,671 | $ | 8,065,768 | ||||
Advances from
customers
|
1,482,497 | 169,233 | ||||||
Short term bank
loans
|
7,328,692 | 8,203,333 | ||||||
Advance from
investor
|
3,000,000 | - | ||||||
Loan from related
parties
|
- | 673,276 | ||||||
Loan payable-
other
|
1,873,085 | - | ||||||
Accrued expenses and other current
liabilities
|
630,563 | 402,733 | ||||||
Total current
liabilities
|
22,754,508 | 17,514,344 | ||||||
TOTAL
LIABILITIES
|
22,754,508 | 17,514,344 | ||||||
COMMITMENT
AND CONTINGENCIES
|
- | - | ||||||
SHAREHOLDERS'
EQUITY
|
||||||||
Registered capital
|
5,082,315 | 5,082,315 | ||||||
Additional paid in
capital
|
2,292,512 | 2,292,512 | ||||||
Accumulated other comprehensive
income
|
2,501,592 | 1,579,815 | ||||||
Retained
earnings
|
847,155 | 4,574,292 | ||||||
Total shareholders'
equity
|
10,723,575 | 13,528,934 | ||||||
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$ | 33,478,083 | $ | 31,043,278 |
WUXI ANGELL AUTOCYCLE, CO.,
LTD
|
||||||||
STATEMENTS OF
OPERATIONS
|
||||||||
For The Years Ended December
31,
|
||||||||
2008
|
2007
|
|||||||
Net sales
|
$ | 9,332,105 | $ | 5,874,137 | ||||
Cost of goods
sold
|
(8,455,682 | ) | (4,527,146 | ) | ||||
Gross
profit
|
876,423 | 1,346,991 | ||||||
Selling , general and
administrative expenses
|
(2,882,947 | ) | (1,708,854 | ) | ||||
Research and Development
expenses
|
(411,700 | ) | - | |||||
Loss from
operations
|
(2,418,224 | ) | (361,863 | ) | ||||
Other income
(expenses):
|
||||||||
Interest income
(expenses)
|
(1,093,197 | ) | (767,082 | ) | ||||
Other income
(expenses)
|
(215,715 | ) | 2,421 | |||||
Other
expenses-Penalty
|
- | (24,196 | ) | |||||
Total other income
(expenses)
|
(1,308,912 | ) | (788,856 | ) | ||||
Loss before income
taxes
|
(3,727,136 | ) | (1,150,719 | ) | ||||
Income
taxes
|
- | - | ||||||
Net loss
|
$ | (3,727,136 | ) | $ | (1,150,719 | ) | ||
Other comprehensive
item
|
||||||||
Foreign currency translation
gain
|
921,776 | 799,834 | ||||||
Comprehensive Income
(loss)
|
$ | (2,805,360 | ) | $ | (350,885 | ) | ||
Basic and diluted earnings (loss)
per common share
|
(0.09 | ) | (0.03 | ) | ||||
Weighted average number of common
shares
|
40,997,103 | 35,897,933 |
WUXI ANGELL AUTOCYCLE, CO.,
LTD
|
||||||||||||||||||||
STATEMENTS OF SHAREHOLDERS'
EQUITY
|
||||||||||||||||||||
Registered capital
|
Additional paid in
capital
|
Other comprehensive
income
|
Retained
Earnings
|
Total
|
||||||||||||||||
Balance at December 31,
2006
|
3,300,000 | 1,219,243 | 779,982 | 5,725,011 | 11,024,234 | |||||||||||||||
Capial
contributions
|
1,782,315 | 1,073,269 | - | - | 2,855,584 | |||||||||||||||
Net loss for the
year
|
- | - | (1,150,719 | ) | (1,150,719 | ) | ||||||||||||||
Foreign currency translation
gain
|
- | 799,834 | - | 5,835,287 | ||||||||||||||||
Balance at December 31,
2007
|
5,082,315 | 2,292,512 | 6,615,268 | 4,574,292 | 18,564,387 | |||||||||||||||
Capital
contributions
|
- | - | - | - | ||||||||||||||||
Net loss for the
year
|
- | - | (3,727,136 | ) | (3,727,136 | ) | ||||||||||||||
Foreign currency translation
gain
|
- | 921,776 | - | (4,113,677 | ) | |||||||||||||||
Balance at December 31,
2008
|
$ | 5,082,315 | 2,292,512 | 2,501,592 | 847,155 | 10,723,575 |
WUXI ANGELL AUTOCYCLE, CO.,
LTD
|
||||||||
STATEMENTS OF CASH
FLOWS
|
||||||||
For The Years Ended December
31,
|
||||||||
2008
|
2007
|
|||||||
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
||||||||
Net loss
|
$ | (3,727,136 | ) | $ | (1,150,719 | ) | ||
Adjustments to reconcile net
income to net cash used in operating
activities:
|
||||||||
Gain on disposal of fixed
assets
|
(51,358 | ) | - | |||||
Depreciation and
amortization
|
1,526,594 | 1,516,162 | ||||||
Bad debts
|
166,438 | (318 | ) | |||||
(Increase) decrease in current
assets:
|
||||||||
Accounts
receivable
|
2,699,178 | 1,485,244 | ||||||
Note
receivable
|
- | 6,564 | ||||||
Loan to shareholders and related
parties
|
- | 3,560,822 | ||||||
Other
receivables
|
(177,758 | ) | 251,145 | |||||
Other
receivables
|
- | |||||||
Inventory
|
(1,429 | ) | 1,858,189 | |||||
Advance to
suppliers
|
(2,222,069 | ) | 449,767 | |||||
Increase (decrease) in current
liabilities:
|
||||||||
Accounts
payables
|
(203,551 | ) | (7,522,258 | ) | ||||
Advances from
customers
|
1,277,645 | (3,981 | ) | |||||
Note
payable
|
- | (4,338,865 | ) | |||||
Accrued expense and other
liabilities
|
195,231 | 262,396 | ||||||
Net cash used in operating
activities
|
(518,213 | ) | (3,625,853 | ) | ||||
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
||||||||
Acquisition of intangible
assets
|
- | (60,560 | ) | |||||
Acquisition of property &
equipment
|
- | (581,232 | ) | |||||
Sale of property &
equipment
|
73,317 | - | ||||||
Net cash provided by (used in)
investing activities
|
73,317 | (641,792 | ) | |||||
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
||||||||
Capital
contributions
|
- | 1,782,315 | ||||||
Proceeds from investor
advance
|
3,000,000 | |||||||
Repayment of short term bank
loans
|
(1,439,349 | ) | (2,481,227 | ) | ||||
Proceeds from related party
loans
|
(708,794 | ) | 646,485 | |||||
Loan proceeds from other
sources
|
1,839,362 | - | ||||||
Net cash provided by (used in)
financing activities
|
2,691,218 | (52,427 | ) | |||||
EFFECT OF EXCHANGE RATE CHANGE ON
CASH & CASH EQUIVALENTS
|
88,611 | 202,524 | ||||||
NET INCREASE (DECREASE) IN CASH
& CASH EQUIVALENTS
|
2,334,934 | (4,117,548 | ) | |||||
CASH & CASH EQUIVALENTS,
BEGINNING OF YEAR
|
1,209,551 | 5,327,099 | ||||||
CASH & CASH EQUIVALENTS, END
OF YEAR
|
$ | 3,544,485 | $ | 1,209,551 | ||||
Supplemental Cash flow
data:
|
||||||||
Income tax
paid
|
$ | - | $ | - | ||||
Interest
paid
|
$ | (1,093,197 | ) | $ | (767,082 | ) | ||
Non-cash financing and investing
activities
|
||||||||
Capital contribution in the form
of equipments and machinery
|
$ | - | $ | 1,073,269 |
Buildings and
improvements
|
20 years
|
Machinery, equipment and motor
vehicles
|
5-10
years
|
December
31, 2008
|
December
31, 2007
|
|||||||
Raw
Materials
|
$ | 1,121,248 | $ | 1,151,855 | ||||
Finished
goods
|
280,384 | 154,212 | ||||||
Total
|
$ | 1,401,632 | $ | 1,306,067 |
December
31, 2008
|
December
31, 2007
|
|||||||
Building
and improvements
|
$ | 19,335,057 | $ | 18,033,829 | ||||
Machinery
and equipment
|
5,672,179 | 5,287,051 | ||||||
Motor
Vehicles
|
207,113 | 396,370 | ||||||
25,214,349 | 23,717,250 | |||||||
less:
Accumulated Depreciation
|
(5,252,534 | ) | (3,752,903 | ) | ||||
Total
property, plant and equipment, net
|
$ | 19,961,815 | $ | 19,964,347 |
December
31, 2008
|
December
31, 2007
|
|||||||
Rights
to use land
|
$ | 6,793,395 | $ | 6,336,793 | ||||
Less:
accumulated amortization
|
(749,423 | ) | (572,316 | ) | ||||
Total
Intangible Assets, Net
|
$ | 6,043,972 | $ | 5,764,477 |
As of December
31,
|