Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 10, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | CHINA PHARMA HOLDINGS, INC. | |
Trading Symbol | CPHI | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 32,951,673 | |
Amendment Flag | false | |
Entity Central Index Key | 0001106644 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-34471 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 75-1564807 | |
Entity Address, Address Line One | Second Floor, No. 17, Jinpan Road | |
Entity Address, Address Line Two | Haikou | |
Entity Address, City or Town | Hainan Province | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 570216 | |
City Area Code | 86 | |
Local Phone Number | 898-6681-1730 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 1,369,871 | $ 2,029,971 |
Banker’s acceptances | 13,784 | |
Trade accounts receivable, less allowance for doubtful accounts of $16,214,032 and $16,739,527, respectively | 368,227 | 421,531 |
Other receivables, less allowance for doubtful accounts of $26,452 and $27,149, respectively | 28,929 | 29,139 |
Advances to suppliers | 4,759 | 444,637 |
Inventory | 3,767,014 | 2,947,787 |
Prepaid expenses | 268,498 | 77,697 |
Total Current Assets | 5,807,298 | 5,964,546 |
Property, plant and equipment, net | 7,768,497 | 9,973,065 |
Operating lease right of use asset | 134,205 | 39,046 |
Intangible assets, net | 1,642,357 | 1,807,486 |
TOTAL ASSETS | 15,352,357 | 17,784,143 |
Current Liabilities: | ||
Trade accounts payable | 831,298 | 667,082 |
Accrued expenses | 119,669 | 404,807 |
Other payables | 1,992,535 | 2,390,063 |
Advances from customers | 172,110 | 520,295 |
Operating lease liability | 76,000 | 40,445 |
Current portion of lines of credit | 1,016,741 | 2,440,915 |
Convertible, redeemable note payable, net of issue discount | 1,740,000 | 3,800,000 |
Total Current Liabilities | 7,057,806 | 12,739,447 |
Non-current Liabilities: | ||
Operating lease liability, net of current portion | 58,794 | |
Lines of credit, net of current portion | 1,392,797 | |
Deferred tax liability | 732,078 | 754,698 |
Total Liabilities | 9,241,475 | 13,494,145 |
Commitments and Contingencies (Note 13) | ||
Stockholders’ Equity: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding | ||
Common stock, $0.001 par value; 500,000,000 shares authorized; 28,723,624 shares and 7,490,896 shares issued and outstanding, respectively | 104,773 | 74,909 |
Additional paid-in capital | 32,738,108 | 28,853,520 |
Retained deficit | (38,058,101) | (36,211,496) |
Accumulated other comprehensive income | 11,326,102 | 11,573,065 |
Total Stockholders’ Equity | 6,110,882 | 4,289,998 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 15,352,357 | 17,784,143 |
Related Party | ||
Current Liabilities: | ||
Borrowings from related parties | $ 1,109,453 | $ 2,475,840 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, less allowance for doubtful accounts (in Dollars) | $ 16,214,032 | $ 16,739,527 |
Other receivables, allowance for doubtful accounts (in Dollars) | $ 26,452 | $ 27,149 |
Preferred stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 28,723,624 | 7,490,896 |
Common stock, shares outstanding | 28,723,624 | 7,490,896 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,803,461 | $ 1,965,931 | $ 4,861,613 | $ 5,183,092 |
Cost of revenue | 2,036,651 | 2,103,687 | 5,063,540 | 5,719,690 |
Gross profit (loss) | (233,190) | (137,756) | (201,927) | (536,598) |
Operating expenses: | ||||
Selling expenses | 206,524 | 259,376 | 520,776 | 705,388 |
General and administrative expenses | 246,267 | 276,611 | 776,299 | 1,063,835 |
Research and development expenses | 45,773 | 88,747 | 92,528 | 157,859 |
Bad debt expense (benefit) | (18,212) | (73,836) | (24,201) | (83,715) |
Total operating expenses | 480,352 | 550,898 | 1,365,402 | 1,843,367 |
Loss from operations | (713,542) | (688,654) | (1,567,329) | (2,379,965) |
Other income (expense): | ||||
Interest income | 2,182 | 1,857 | 4,072 | 9,752 |
Interest expense | (66,240) | (103,976) | (283,348) | (338,444) |
Net other expense | (64,058) | (102,119) | (279,276) | (328,692) |
Loss before income taxes | (777,600) | (790,773) | (1,846,605) | (2,708,657) |
Income tax expense | ||||
Net loss | (777,600) | (790,773) | (1,846,605) | (2,708,657) |
Other comprehensive (loss) income - foreign currency translation adjustment | (6) | (598,986) | (246,963) | (1,174,295) |
Comprehensive loss | $ (777,606) | $ (1,389,759) | $ (2,093,568) | $ (3,882,952) |
Loss per share: | ||||
Basic (in Dollars per share) | $ (0.06) | $ (0.16) | $ (0.18) | $ (0.56) |
Weighted average shares outstanding (in Shares) | 13,216,345 | 5,002,851 | 10,422,589 | 4,863,818 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Diluted | $ (0.06) | $ (0.16) | $ (0.18) | $ (0.56) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive Income | Total |
Balance at Dec. 31, 2021 | $ 47,340 | $ 25,645,367 | $ (32,238,655) | $ 12,563,829 | $ 6,017,881 |
Balance (in Shares) at Dec. 31, 2021 | 4,733,956 | ||||
Conversions of Note Payable to common stock | $ 960 | 299,040 | 300,000 | ||
Conversions of Note Payable to common stock (in Shares) | 96,041 | ||||
Net loss for the period | (1,029,490) | (1,029,490) | |||
Foreign currency translation adjustment | 51,649 | 51,649 | |||
Balance at Mar. 31, 2022 | $ 48,300 | 25,944,407 | (33,268,145) | 12,615,478 | 5,340,040 |
Balance (in Shares) at Mar. 31, 2022 | 4,829,997 | ||||
Balance at Dec. 31, 2021 | $ 47,340 | 25,645,367 | (32,238,655) | 12,563,829 | 6,017,881 |
Balance (in Shares) at Dec. 31, 2021 | 4,733,956 | ||||
Net loss for the period | (2,708,657) | ||||
Balance at Sep. 30, 2022 | $ 50,450 | 26,342,257 | (34,947,312) | 11,389,534 | 2,834,929 |
Balance (in Shares) at Sep. 30, 2022 | 5,044,967 | ||||
Balance at Mar. 31, 2022 | $ 48,300 | 25,944,407 | (33,268,145) | 12,615,478 | 5,340,040 |
Balance (in Shares) at Mar. 31, 2022 | 4,829,997 | ||||
Conversions of Note Payable to common stock | $ 1,010 | 198,990 | 200,000 | ||
Conversions of Note Payable to common stock (in Shares) | 101,010 | ||||
Net loss for the period | (888,394) | (888,394) | |||
Foreign currency translation adjustment | (626,958) | (626,958) | |||
Balance at Jun. 30, 2022 | $ 49,310 | 26,143,397 | (34,156,539) | 11,988,520 | 4,024,688 |
Balance (in Shares) at Jun. 30, 2022 | 4,931,007 | ||||
Conversions of Note Payable to common stock | $ 1,140 | 198,860 | 200,000 | ||
Conversions of Note Payable to common stock (in Shares) | 113,960 | ||||
Net loss for the period | (790,773) | (790,773) | |||
Foreign currency translation adjustment | (598,986) | (598,986) | |||
Balance at Sep. 30, 2022 | $ 50,450 | 26,342,257 | (34,947,312) | 11,389,534 | 2,834,929 |
Balance (in Shares) at Sep. 30, 2022 | 5,044,967 | ||||
Balance at Dec. 31, 2022 | $ 74,909 | 28,853,520 | (36,211,496) | 11,573,065 | 4,289,998 |
Balance (in Shares) at Dec. 31, 2022 | 7,490,896 | ||||
Conversions of Note Payable to common stock | $ 9,591 | 640,409 | 650,000 | ||
Conversions of Note Payable to common stock (in Shares) | 959,029 | ||||
Net loss for the period | (475,976) | (475,976) | |||
Foreign currency translation adjustment | 205,322 | 205,322 | |||
Balance at Mar. 31, 2023 | $ 84,500 | 29,493,929 | (36,687,472) | 11,778,387 | 4,669,344 |
Balance (in Shares) at Mar. 31, 2023 | 8,449,925 | ||||
Balance at Dec. 31, 2022 | $ 74,909 | 28,853,520 | (36,211,496) | 11,573,065 | 4,289,998 |
Balance (in Shares) at Dec. 31, 2022 | 7,490,896 | ||||
Net loss for the period | (1,846,605) | ||||
Balance at Sep. 30, 2023 | $ 104,773 | 32,738,108 | (38,058,101) | 11,326,102 | 6,110,882 |
Balance (in Shares) at Sep. 30, 2023 | 28,723,624 | ||||
Balance at Mar. 31, 2023 | $ 84,500 | 29,493,929 | (36,687,472) | 11,778,387 | 4,669,344 |
Balance (in Shares) at Mar. 31, 2023 | 8,449,925 | ||||
Conversions of Note Payable to common stock | $ 2,974 | 797,026 | 800,000 | ||
Conversions of Note Payable to common stock (in Shares) | 2,974,707 | ||||
Net loss for the period | (593,029) | (593,029) | |||
Foreign currency translation adjustment | (523,687) | (523,687) | |||
Balance at Jun. 30, 2023 | $ 87,474 | 30,290,955 | (37,280,501) | 11,254,700 | 4,352,628 |
Balance (in Shares) at Jun. 30, 2023 | 11,424,632 | ||||
Conversions of Note Payable to common stock | $ 3,542 | 606,458 | 610,000 | ||
Conversions of Note Payable to common stock (in Shares) | 3,541,929 | ||||
Conversion of related party note and interest | $ 13,757 | 1,840,695 | 1,854,452 | ||
Conversion of related party note and interest (in Shares) | 13,757,063 | ||||
Net loss for the period | (777,600) | (777,600) | |||
Foreign currency translation adjustment | 71,402 | 71,402 | |||
Balance at Sep. 30, 2023 | $ 104,773 | $ 32,738,108 | $ (38,058,101) | $ 11,326,102 | $ 6,110,882 |
Balance (in Shares) at Sep. 30, 2023 | 28,723,624 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (1,846,605) | $ (2,708,657) |
Depreciation and amortization | 2,057,818 | 2,061,108 |
Bad debt (benefit) expense | (24,201) | (83,715) |
Loss on disposal of property, plant & equipment | 45,592 | |
Changes in assets and liabilities: | ||
Trade accounts and other receivables | (573,763) | (62,908) |
Advances to suppliers | 436,582 | (8,394) |
Inventory | (275,717) | 496,202 |
Trade accounts payable | 204,123 | (426,219) |
Other payables and accrued expenses | (163,108) | (112,149) |
Advances from customers | (340,412) | (112,362) |
Prepaid expenses | (197,672) | (37,045) |
Net Cash Used in Operating Activities | (677,363) | (994,139) |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | (6,990) | (429,232) |
Net Cash Used in Investing Activities | (6,990) | (429,232) |
Cash Flows from Financing Activities: | ||
Payments of line of credit | (456,176) | (893,019) |
Proceeds from lines of credit | 498,943 | |
Borrowings and interest from related party | 22,114 | |
Repayments to related party | (227,039) | |
Net Cash (Used In) Provided By Financing Activities | 42,767 | (1,097,944) |
Effect of Exchange Rate Changes on Cash | (18,514) | (251,447) |
Net decrease in Cash, Cash Equivalents and Restricted Cash | (660,100) | (2,772,762) |
Cash and Cash Equivalents at Beginning of Period | 2,029,971 | 4,859,060 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 1,369,871 | 2,086,298 |
Supplemental Cash Flow Information: | ||
Cash paid for income taxes | ||
Cash paid for interest | 192,548 | 113,392 |
Supplemental Noncash Investing and Financing Activities: | ||
Accounts receivable collected with banker’s acceptances | 421,458 | 355,778 |
Inventory purchased with banker’s acceptances | 351,463 | 375,798 |
Conversions of Note Payable to common stock | 2,060,000 | 700,000 |
Right of use assets | 158,926 | |
Conversion of related party note and interest to common stock | $ 1,854,542 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations – Onny acquired 100% of the ownership in Helpson on May 25, 2005, by entering into an Equity Transfer Agreement with Helpson’s three former shareholders. The transaction was approved by the Commercial Bureau of Hainan Province on June 12, 2005 and Helpson received the Certificate of Approval for Establishment of Enterprises with Foreign Investment in the PRC on the same day. Helpson received its business license evidencing its Wholly Foreign Owned Enterprise (“WFOE”) status on June 21, 2005. Helpson is principally engaged in the development, manufacture and marketing of pharmaceutical products for human use in connection with a variety of high-incidence and high-mortality diseases and medical conditions prevalent in the PRC. All of its operations are conducted in the PRC, where its manufacturing facilities are located. Helpson manufactures pharmaceutical products in the form of dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions. The majority of its pharmaceutical products are sold on a prescription basis and all have been approved for at least one or more therapeutic indications by the National Medical Products Administration (the “NMPA”, formerly China Food and Drug Administration, or CFDA) based upon demonstrated safety and efficacy. Liquidity and Going Concern As of September 30, 2023, the Company had cash and cash equivalents of $1.4 million and an accumulated deficit of $38.1 million. The Company’s Chairperson, Chief Executive Officer and Interim Chief Financial Officer (“Chairperson Li”) has advanced an aggregate of $1,109,453 as of September 30, 2023 to provide working capital and enabled the Company to make the required payments related to its former construction loan facility. The Company anticipates operating losses to continue for the foreseeable future due to, among other things, costs related to the production of its existing products, debt service costs and selling and administrative costs. These conditions raise substantial doubt about its ability to continue as a going concern within one year after the date that the financial statements are issued. To alleviate the conditions that raise substantial doubt about the Company’s ability to continue as a going concern, management plans to enhance the sales model of advance payment, and further strengthen its collection of accounts receivable. Further, the Company is currently exploring strategic alternatives to accelerate the launch of nutrition products. In addition, management believes that the Company’s existing fixed assets can serve as collateral to support additional bank loans. While the current plans will allow the Company to fund its operations in the next twelve months, there can be no assurance that the Company will be able to achieve its future strategic alternatives raising substantial doubt about its ability to continue as a going concern. Pursuant to the requirements of Accounting Standards Codification (ASC) 205-40, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Under ASC 205-40, the strategic alternatives being pursued by the Company cannot be considered probable at this time because none of the Company’s current plans have been finalized at the time of the issuance of these financial statements and the implementation of any such plan is not probable of being effectively implemented as none of the plans are entirely within the Company’s control. Accordingly, substantial doubt is deemed to exist about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above. Reverse Stock Split Consolidation and Basis of Presentation Helpson’s functional currency is the Chinese Renminbi. Helpson’s revenue and expenses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating Helpson’s financial statements are included in accumulated other comprehensive income, which is a component of stockholders’ equity. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity that is party to the transaction are included in the results of operations. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated on consolidation. However, the results of operations included in such financial statements may not necessary be indicative of annual results. Such financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2023 (“2022 Annual Report”). Accounting Estimates – The Company uses the same accounting policies in preparing its quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Loss Per Share The potentially dilutive common shares related to the convertible, redeemable note payable of 14,627,372 and 3,836,070 at September 30, 2023 and December 31, 2022 as discussed in Note 8, respectively, and the option to purchase 66,500 shares of common stock at September 30, 2023 and December 31, 2022 are excluded from the computation of diluted net loss per share for all periods presented because the effect is anti-dilutive due to net losses of the Company. Recent Accounting Pronouncements From time to time, the FASB or other standards setting bodies issue new accounting pronouncements. Updates to the FASB ASC are communicated through issuance of ASUs. Unless otherwise discussed, the Company believes that the recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on its consolidated financial statements upon adoption. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2023 | |
Inventory [Abstract] | |
INVENTORY | NOTE 2 – INVENTORY Inventory consisted of the following: September 30, December 31, 2023 2022 Raw materials 1,878,310 1,839,641 Work in process 676,885 557,146 Finished goods 1,211,819 551,000 Total Inventory $ 3,767,014 $ 2,947,787 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 3 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: September 30, December 31, 2023 2022 Permit of land use $ 392,305 $ 404,427 Building 9,109,944 9,391,433 Plant, machinery and equipment 26,936,505 27,780,585 Motor vehicle 299,590 438,138 Office equipment 383,482 308,847 Total 37,121,826 38,323,430 Less: accumulated depreciation (29,353,329 ) (28,350,365 ) Property, plant and equipment, net $ 7,768,497 $ 9,973,065 Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: Asset Life - years Permit of land use 40 - 70 Building 20 - 49 Plant, machinery and equipment 5 - 10 Motor vehicle 5 - 10 Office equipment 3 - 5 Depreciation relating to office equipment was included in general and administrative expenses, while all other depreciation was included in cost of revenue. Depreciation expense was $630,579 and $655,386 for the three months ended September 30, 2023 and 2022, respectively and $1,896,279 and $2,033,194 for the nine months ended September 30, 2023 and 2022, respectively. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | NOTE 4 – INTANGIBLE ASSETS Intangible assets represent the cost of medical formulas approved for production by the NMPA and the intellectual property acquired in November 2022 from Chengdu Bonier Medical Technology Development Co., Ltd (“Bonier”). On November 28, 2022, Helpson entered into a Technology Transfer Contract (the “Bonier Agreement”) with Bonier regarding a technical invention and creation of an ophthalmic oxygen enriched atomization therapeutic instrument, pursuant to which Helpson has been granted a utility model patent (the “Utility Model Patent”) and applied for an invention patent (the “Invention Patent”). No costs were reclassified from advances to intangible assets during the nine months ended September 30, 2023 and 2022, respectively. On August 9, 2023, the Company obtained the “Drug Supplementary Application Approval Notice” from the NMPA for the indicating that the Company’s Candesartan tablets have passed the quality and efficacy consistency evaluation of generic drugs. Approved medical formulas are amortized from the date NMPA approval is obtained over their individually identifiable estimated useful life, which range from ten to thirteen years. It is at least reasonably possible that a change in the estimated useful lives of the medical formulas could occur in the near term due to changes in the demand for the drugs and medicines produced from these medical formulas. Amortization expense relating to intangible assets was $52,514 and $8,951 for the three months ended September 30, 2023 and 2022, respectively and $161,538 and $27,914 for the nine months ended September 30, 2023 and 2022, respectively Based on the Bonier Agreement, Helpson will pay a service fee of 15% of the net profit of the corresponding product sales revenue, which will be paid in cash annually after it launches to the market, contingent on the successful authorization of the Invention Patent. There were no service fees paid for the three and nine months ended September 30, 2023 and 2022, respectively. The Company evaluates each approved medical formula for impairment at the date of NMPA approval, when indications of impairment are present and also at the date of each financial statement. The Company’s evaluation is based on an estimated undiscounted net cash flow model, which considers currently available market data for the related drug and the Company’s estimated market share. If the carrying value of the medical formula exceeds the estimated future net cash flows, an impairment loss is recognized for the excess of the carrying value over the fair value of the medical formula, which is determined by the estimated discounted future net cash flows. No impairment loss was recognized during the three and nine months ended September 30, 2023 and 2022. Intangible assets consisted of NMPA approved medical formulas, a Utility Model Patent and an Invention Patent as follows: September 30, December 31, 2023 2022 Gross carrying amount $ 6,405,040 $ 6,554,628 Accumulated amortization (4,762,683 ) (4,747,142 ) Net carrying amount $ 1,642,357 $ 1,807,486 |
Other Payables
Other Payables | 9 Months Ended |
Sep. 30, 2023 | |
Other Payables [Abstract] | |
OTHER PAYABLES | NOTE 5 – OTHER PAYABLES Other Payables consisted of the following: September 30, December 31, 2023 2022 Compensation payable to officer $ 963,506 $ 951,506 Compensation and interest to related parties 8,000 372,578 Business taxes and other 1,021,029 1,065,979 Total Other Payables $ 1,992,535 $ 2,390,063 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 6 – RELATED PARTY TRANSACTIONS A member of the Company’s board of directors (“Board”) had previously advanced to the Company an aggregate amount of $0 and $1,354,567 as of September 30, 2023 and December 31, 2022, respectively, which is recorded as “Borrowings from related parties” on the accompanying unaudited interim condensed consolidated balance sheets. The advances bear interest at a rate of 1.0% per year. Total interest expense for each of the three months ended September 30, 2023 and 2022 was $0 and $3,387, respectively and $6,773 and $10,159 for the nine months ended September 30, 2023 and 2022, respectively. Compensation and interest payable to the board member is included in Other payables in the accompanying unaudited interim condensed consolidated balance sheet totaling $8,000 and $372,578 as of September 30, 2023 and December 31, 2022, respectively. On August 23, 2023, the director entered into a certain debt transfer agreement with Chairperson Li, pursuant to which the rights to collect the $1,354,567 loan payment and $499,975 of related interest and compensation was assigned to Chairperson Li. On September 28, 2023, Chairperson Li entered into a certain loan settlement agreement, pursuant to which both parties agreed to convert the aggregate amount of $1,854,452 owed by the Company into 13,757,063 shares of restricted common stock of the Company. Such issuance was completed on September 29, 2023. The Company had previously received advances from Chairperson Li. Total amounts owed were $1,109,453 and $1,121,273 and are recorded as “Borrowings from related parties” on the accompanying condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022, respectively. On July 8, 2019 the Company entered into a loan agreement in exchange for cash of RMB 4,770,000 ($738,379) with Chairperson Li. The loan bears interest at a rate of 4.35% and was payable within one year of the loan agreement. The due date of the loan agreement has been extended annually on identical terms, and is due July 9, 2024. Total interest expense related to the loan for the three months ended September 30, 2023 and 2022 was $6,942 and $7,731, respectively and $20,827 and $22,114 for the nine months ended September 30, 2023 and 2022, respectively. Compensation payable to Chairperson Li is included in “Other payables” in the accompanying condensed consolidated balance sheet totaling $963,506 and $951,506 as of September 30, 2023 and December 31, 2022, respectively. |
Lines of Credit
Lines of Credit | 9 Months Ended |
Sep. 30, 2023 | |
Lines of Credit [Abstract] | |
LINES OF CREDIT | NOTE 7 – LINES OF CREDIT On June 25, 2021 the Company entered into a new loan with Bank of Communications bearing an interest rate of 4.17%. The Company paid all principal and interest on June 21, 2022 and on June 22, 2022 entered into a loan for the same principal amount bearing interest at 4.17% and due December 21, 2022. On December 21, 2022 the Company repaid the loan in full and entered into a new line of credit for an aggregate amount of RMB 7,300,000 (approximately $1.0 million) with interest payable monthly at a rate of 3.9%. The line of credit is payable on December 20, 2023. The Company received an advance on the line of credit in the amount of RMB 3,800,000 (approximately $0.56 million) on December 30, 2022. On February 24, 2023 the Company received an advance on the line in the amount of RMB 3,500,000 (approximately $0.51 million). The Company has no further availability on this line of credit. In September 2021, the Company entered into a line of credit with China CITIC Bank in the amount of RMB 3,200,000 (approximately $0.8 million). The loan bears interest at the rate of 4.50% per annum. The line of credit was paid in full on September 6, 2022. On September 9, 2022, the Company received a new line of credit in the same amount. The loan bears interest at a rate of 4.5% and is due on September 7, 2023. In addition, Chairperson Li personally guaranteed the new line of credit and pledged personal assets as collateral for the loan. Total interest for the three months ended September 30, 2023 and 2022 was $4,243 and $5,178, respectively and $14,750 and $16,407 for the nine months ended September 30, 2023 and 2022, respectively. On September 7, 2023 the loan was repaid in full. On September 18, 2021 the Company obtained a line of credit for RMB 10,000,000 (approximately $1.4 million) with Bank of China. The loan bears interest at the rate of 3.85% per annum. The line of credit was paid in full on the due date of September 18, 2022. On September 30, 2022 the Company received a new line of credit in the same amount. The loan bears interest at the rate of 3.45% and is due September 28, 2023. The loan is collateralized by the Company’s new production facility and the included production line equipment and machinery. In addition, Chairperson Li personally guaranteed the new line of credit. Total interest for the three months ended September 30, 2023 and 2022 was $12,398 and $13,400, respectively and $37,569 and $30,021 for the nine months ended September 30, 2023 and 2022, respectively. On September 22, 2023 the Company repaid this note in full. On September 25, 2023 the Company entered into a three year revolving loan and received proceeds of RMB 10,000,000 (approximately $1.4 million). The interest rate for the loan is 3.35% for the first twelve months of the loan and adjusts based on the latest one-year loan market quotation rate less 10 basis points as published by the China National Interbank Funding Center on the working day prior to each twelve month anniversary of the loan. The loan is due on September 24, 2026. Principal payments required for the remaining terms of the loan facility and lines of credit as of September 30, 2023 are as follows: Year Lines of Credit 2023 $ 1,016,741 2024 - 2025 - 2026 1,392,796 $ 2,409,538 Fair Value of Lines of Credit |
Convertible Note Payable
Convertible Note Payable | 9 Months Ended |
Sep. 30, 2023 | |
Convertible Note Payable [Abstract] | |
CONVERTIBLE NOTE PAYABLE | NOTE 8 – CONVERTIBLE NOTE PAYABLE On November 17, 2021, China Pharma entered into a Securities Purchase Agreement (the “Agreement”) pursuant to which the Company issued an unsecured convertible promissory note (the “Note”) to an institutional accredited investor Streeterville Capital, LLC (the “Investor”). The transaction contemplated under the Agreement was closed on November 19, 2021. The Note matured on February 17, 2023. On April 13, 2023 China Pharma entered into an Amendment (the “Amendment”) with the Investor which extended the maturity date of the Convertible Note Payable to May 19, 2024. As consideration for the extension, China Pharma agreed to an extension fee of $65,639, representing 2.0% of the balance of the Note and accrued interest on the date of the Amendment. The amount was satisfied by increasing the Note balance by the amount of the extension fee. The Company recorded this as additional interest expense during the second quarter of 2023. In addition, China Pharma decreased the price at which the Investor can convert the balance from 85% to 82% of the lowest daily volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion, and assumed an additional obligation to redeem a portion of the outstanding balance of the Note monthly or be subject to additional penalty fees. The Note was originally convertible into 350,000 shares of China Pharma’s common stock at a price of $15.00 per share through April 19, 2022. Thereafter, the Note was convertible into 175,000 shares at a price of $30.00 per share. As of September 30, 2023 the Note is convertible into 58,000 shares of common stock. Interest accrues on the outstanding balance of the Note at 5% per annum compounded daily. Upon the occurrence of an Event of Default as defined in the Note, interest accrues at the lesser of 22% per annum or the maximum rate permitted by applicable law. In addition, upon any Event of Default, the Investor may accelerate the outstanding balance payable under the Note, which will increase automatically upon such acceleration by 15% or 5%, depending on the nature of the Event of Default. Pursuant to the terms of the Agreement and the Note, the Company must obtain Investor’s consent for certain fundamental transactions such as consolidation, merger with or into another entity (excerpt for a reincorporation merger), disposition of substantial assets, change of control, reorganization or recapitalization. Any occurrence of a fundamental transaction without Investor’s prior written consent will be deemed an Event of Default. Investor may redeem all or any part the outstanding balance of the Note, subject to $500,000 per calendar month, at any time after one hundred twenty-one (121) days from the Purchase Price Date, as defined in the Note, upon three trading days’ notice, in cash or converting into shares of China Pharma’s common stock, at a price equal to 82% multiplied by the lowest daily volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion, subject to certain adjustments and ownership limitations specified in the Note. The Note provides for liquidated damages upon failure to comply with any of the terms or provisions of the Note. The Company may prepay the outstanding balance of the Note with the Investor’s consent. At inception, the Note was redeemable into 881,143 shares based on the lowest volume weighted average price of $5.95817 on the inception date of November 19, 2021. As of September 30, 2023, the Note was redeemable into 14,627,372 shares of common stock based on 82% of the lowest volume weighted average price of $0.1399 on that date. Total interest expense for the three months ended September 30, 2023 and 2022 was $52,859 and $61,508, respectively and $184,130 and $192,779 for the nine months ended September 30, 2023 and 2022, respectively. On January 5, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.763, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 196,592 shares of common stock to the Investor on January 6, 2023. On January 18, 2023 the Investor delivered its notice of redemption for $250,000 of the Note and related interest at the conversion price of $0.763, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 327,654 shares of common stock to the Investor on January 19, 2023. On March 2, 2023 the Investor delivered its notice of redemption for $250,000 of the Note and related interest at the conversion price of $0.575, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 434,783 shares of common stock to the Investor on March 7, 2023. On April 7, 2023 the Investor delivered its notice of redemption for $200,000 of the Note and related interest at the conversion price of $0.2808, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, issued a total of 712,250 shares of common stock to the Investor on April 13, 2023. On May 1, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2644, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, issued a total of 567,322 shares of common stock to the Investor on May 4, 2023. On May 24, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2487, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, issued a total of 603,136 shares of common stock to the Investor on May 25, 2023. On June 6, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2656, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, issued a total of 564,759 shares of common stock to the Investor on June 14, 2023. On June 23, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2845, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, issued a total of 527,240 shares of common stock to the Investor on June 27, 2023. On August 9, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2143, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 699,953 shares of common stock to the Investor on August 11, 2023. On August 21, 2023 the Investor delivered its notice of redemption for $245,000 of the Note and related interest at the conversion price of $0.2143, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 1,143,257 shares of common stock to the Investor on August 22, 2023. On September 1, 2023, the Investor delivered its notice of redemption for $140,000 of the Note and related interest at the conversion price of $0.1332, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 1,051,051 shares of common stock to the Investor on September 6, 2023. On September 12, 2023, the Investor delivered its notice of redemption for $75,000 of the Note and related interest at the conversion price of $0.1158, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 647,668 shares of common stock to the Investor on September 13, 2023. Subsequent to September 30, 2023 the Investor delivered additional notices of redemption as discussed in Note 14. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 9 – LEASES The Company has leases for certain office and production facilities in the PRC which are classified as operating leases. The leases contain payment terms for fixed amounts. Options to extend are recognized as part of the lease liabilities and recognized as right to use assets when management estimates to renew the lease. There are no residual value guarantees, no variable lease payments, and no restrictions or covenants imposed by leases. The discount rate used in measuring the lease liabilities and right of use assets was determined by reviewing the Company’s incremental borrowing rate at the initial measurement date. For the , operating lease cost was $19,413 and $19,101, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $20,142 and $20,060, respectively. For the nine months ended September 30, 2023 and 2022, operating lease cost was $57,048 and $40,519, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $59,667 and $42,554, respectively. Minimum lease payments for the Company’s operating lease liabilities were as follows for the twelve month periods ended September 30: 2024 $ 79,557 2025 59,667 Total undiscounted cash flows 139,224 Less: Imputed interest (4,430 ) 134,794 Less: Operating lease liabilities, current portion (76,000 ) Operating lease liabilities, net of current portion $ 58,794 The Company has leases with terms less than one year for certain provincial sales offices that are not material. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 10 – INCOME TAXES Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Liabilities are established for uncertain tax positions expected to be taken in income tax returns when such positions are judged to meet the “more-likely-than-not” threshold based on the technical merits of the positions. Estimated interest and penalties related to uncertain tax positions are included as a component of other expenses. Through December 31, 2022, the Company has not identified any uncertain tax positions that it has taken. U.S. income tax returns for the years ended December 31, 2018 through December 31, 2022 and the Chinese income tax return for the year ended December 31, 2022 are open for possible examination. Under the current tax law in the PRC, the Company is and will be subject to the enterprise income tax rate of 25%. There was no provision for income taxes for the three and nine months ended September 30, 2023 and 2022, respectively due to continued net losses of the Company. As of September 30, 2023, Helpson had net operating loss carryforwards for PRC tax purposes of approximately $20.8 million which are available to offset any future taxable income through 2028. Approximately $3.3 million of these carryforwards will expire in December 2023. The Company also has net operating losses for United States federal income tax purposes of approximately $9.4 million of which $5.1 million is available to offset future taxable income, if any, through 2039, and $4.3 million are available for carryforward indefinitely subject to a limitation of 80% of taxable income for each tax year. U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transition tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible or tax loss carry forwards are utilized. Management considers projected future taxable income and tax planning strategies in making this assessment. Based upon an assessment of the level of historical taxable income and projections for future taxable income over the periods on which the deferred tax assets are deductible or can be utilized, management believes it is not likely for the Company to realize all benefits of the deferred tax assets as of September 30, 2023 and December 31, 2022. Therefore, the Company provided for a valuation allowance against its deferred tax assets of $21,812,226 and $21,985,554 as of September 30, 2023 and December 31, 2022, respectively. The Company also incurred various other taxes, comprised primarily of business taxes, value-added taxes, urban construction taxes, education surcharges and others. Any unpaid amounts are reflected on the balance sheets as accrued taxes payable. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 11 – FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, a hierarchy has been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data; and Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The Company uses fair value to measure the value of the banker’s acceptance notes it holds at September 30, 2023 and December 31, 2022. The banker’s acceptance notes are recorded at cost which approximates fair value. The Company held the following assets and liabilities recorded at fair value: Fair Value Measurements at Reporting Date Using Description September 30, Level 1 Level 2 Level 3 Banker’s acceptance notes $ - $ - $ - $ - Total $ - $ - $ - $ - Fair Value Measurements at Reporting Date Using Description December 31, Level 1 Level 2 Level 3 Banker’s acceptance notes $ 13,784 $ - $ 13,784 $ - Total $ 13,784 $ - $ 13,784 $ - |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 12 – STOCKHOLDERS’ EQUITY China Pharma is authorized to issue 500,000,000 shares of common stock, $0.001 par value, and 5,000,000 shares of preferred stock, $0.001 par value. The preferred stock may be issued in series with such designations, preferences, stated values, rights, qualifications or limitations as determined solely by the Board of China Pharma. According to relevant PRC laws, companies registered in the PRC, including China Pharma’s PRC subsidiary, Helpson, are required to allocate at least 10% of their after tax income, as determined under the accounting standards and regulations in the PRC, to statutory surplus reserve accounts until the reserve account balances reach 50% of the company’s registered capital prior to their remittance of funds out of the PRC. Allocations to these reserves and funds can only be used for specific purposes and are not transferrable to the parent company in the form of loans, advances or cash dividends. The amount designated for general and statutory capital reserves is $8,145,000 at September 30, 2023 and December 31, 2022. Effective March 6, 2023 China Pharma implemented a 1-for-10 reverse split of its common stock. The reverse stock split was approved by the Company’s Board of Directors through unanimous written consent and ’s stockholders at its Annual Meeting for the fiscal year ended on December 31, 2021, which was held on December 27, 2022. Upon the effectiveness of the reverse stock split, every 10 shares of ’s issued and outstanding common stock were automatically converted into one share of issued and outstanding common stock. No fractional shares were issued as a result of the reverse stock split. Instead, any fractional shares that resulted from the split were rounded up to the next whole number. The reverse stock split affects all stockholders uniformly and does not alter any stockholder’s percentage interest in ’s outstanding common stock, except for adjustments that may result from the treatment of fractional shares. All share and per share amounts have been retroactively restated for all periods presented in the accompanying unaudited condensed consolidated financial statements. 2023 Share Issuances On January 5, 2023 the Investor as discussed in Note 8 delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.763, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 196,592 shares of common stock to the Investor on January 6, 2023. On January 18, 2023 the Investor as discussed in Note 8 delivered its notice of redemption for $250,000 of the Note and related interest at the conversion price of $0.763, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 327,654 shares of common stock to the Investor on January 19, 2023. On March 2, 2023 the Investor as discussed in Note 8 delivered its notice of redemption for $250,000 of the Note and related interest at the conversion price of $0.575, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, China Pharma issued a total of 434,783 shares of common stock to the Investor on March 7, 2023. On April 7, 2023 the Investor delivered its notice of redemption for $200,000 of the Note and related interest at the conversion price of $0.2808, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, issued a total of 712,250 shares of common stock to the Investor on April 13, 2023. On May 1, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2644, which was 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, issued a total of 567,322 shares of common stock to the Investor on May 4, 2023. On May 24, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2487, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, issued a total of 603,136 shares of common stock to the Investor on May 25, 2023. On June 6, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2656, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, issued a total of 564,759 shares of common stock to the Investor on June 14, 2023. On June 23, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2845, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, issued a total of 527,240 shares of common stock to the Investor on June 27, 2023. On August 9, 2023 the Investor delivered its notice of redemption for $150,000 of the Note and related interest at the conversion price of $0.2143, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 699,953 shares of common stock to the Investor on August 11, 2023. On August 21, 2023 the Investor delivered its notice of redemption for $245,000 of the Note and related interest at the conversion price of $0.2143, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 1,143,257 shares of common stock to the Investor on August 22, 2023. On September 1, 2023 the Investor delivered its notice of redemption for $ 1400,000 On September 12, 2023 the Investor delivered its notice of redemption for $75,000 of the Note and related interest at the conversion price of $0.1158, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 647,668 shares of common stock to the Investor on September 13, 2023. On September 28, 2023 the Company issued 13,757,063 shares of common stock upon conversion of certain amounts owed to Chairperson Li pursuant to a certain loan settlement agreement as discussed in Note 6. 2010 Incentive Plan On November 12, 2010, China Pharma’s Board adopted the 2010 Incentive Plan (the “Plan”), which was then approved by stockholders on December 22, 2010. On October 17, 2019, the Board of Directors approved the First Amendment to the 2010 Incentive Plan (the “Amendment”), pursuant to which the term of the 2010 Incentive Plan was extended to December 31, 2029. The Amendment was adopted by the stockholders on December 19, 2019. On October 25, 2021, the Board of Directors approved, and on December 27, 2021 our stockholders adopted the Amendment No.2 to the Plan to increase the number of shares of the Common Stock, that are reserved thereunder by 500,000 shares from 400,000 shares to 900,000 shares. On October 27, 2022 the Board of Directors approved and on December 27, 2022, the stockholders adopted the Amended and Restated 2010 Long Term Incentive Plan to increase the number of shares of common stock that are reserved thereunder by an additional 500,000 shares from 900,000 to 1,400,000. The Plan gave China Pharma the ability to grant stock options, restricted stock, stock appreciation rights and performance units to its employees, directors and consultants, or those who will become employees, directors and consultants of China Pharma and/or its subsidiaries. The Plan currently allows for equity awards of up to 1,400,000 shares of common stock. Through September 30, 2023, there were 490,000 shares of stock and stock options granted under the Plan. A total of 66,500 options were outstanding as of September 30, 2023 under the Plan. As such, there are 910,000 additional shares available for issuance under the Plan. As of September 30, 2023, there was no remaining unrecognized compensation expense related to stock options or restricted stock grants. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 – COMMITMENTS AND CONTINGENCIES Current vulnerability due to certain concentrations For the nine months ended September 30, 2023, no customer accounted for greater than 10.0% of sales and three customers accounted for 53.1%, 11.5% and 10.4% of accounts receivable. Two suppliers accounted for 13.4% and 10.4% of raw material purchases, and four different products accounted for 20.9%, 19.4%, 18.2% and 10.5% of revenue. For the nine months ended September 30, 2022, one customer accounted for 10.2% of sales and three customers accounted for 52.8%, 11.4% and 10.4% of accounts receivable. Three suppliers accounted for 24.1%, 12.6% and 10.8% of raw material purchases, and four different products accounted for 25.5%, 25.0%, 14.9% and 11.2% of revenue. Nature of Operations Economic environment - In addition, all of the Company’s revenue is denominated in the PRC’s currency of Renminbi (RMB), which must be converted into other currencies before remittance out of the PRC. Both the conversion of RMB into foreign currencies and the remittance of foreign currencies abroad require approval of the PRC government. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS On October 6, 2023 the Investor discussed in Note 8 delivered its notice of redemption for $100,000 of the Note and related interest at the conversion price of $0.1092, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 915,750 shares of common stock to the Investor on October 9, 2023. On October 12, 2023 the Investor discussed in Note 8 delivered its notice of redemption for $115,000 of the Note and related interest at the conversion price of $0.1026, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 1,120,857 shares of common stock to the Investor on October 17, 2023. On October 17, 2023 the Investor discussed in Note 8 delivered its notice of redemption for $115,000 of the Note and related interest at the conversion price of $0.1026, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 1,120,857 shares of common stock to the Investor on October 17, 2023. On November 6, 2023 the Investor discussed in Note 8 delivered its notice of redemption for $80,000 of the Note and related interest at the conversion price of $0.0753, which was 82% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 1,062,216 shares of common stock to the Investor on November 7, 2023. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Liquidity and Going Concern | Liquidity and Going Concern As of September 30, 2023, the Company had cash and cash equivalents of $1.4 million and an accumulated deficit of $38.1 million. The Company’s Chairperson, Chief Executive Officer and Interim Chief Financial Officer (“Chairperson Li”) has advanced an aggregate of $1,109,453 as of September 30, 2023 to provide working capital and enabled the Company to make the required payments related to its former construction loan facility. The Company anticipates operating losses to continue for the foreseeable future due to, among other things, costs related to the production of its existing products, debt service costs and selling and administrative costs. These conditions raise substantial doubt about its ability to continue as a going concern within one year after the date that the financial statements are issued. To alleviate the conditions that raise substantial doubt about the Company’s ability to continue as a going concern, management plans to enhance the sales model of advance payment, and further strengthen its collection of accounts receivable. Further, the Company is currently exploring strategic alternatives to accelerate the launch of nutrition products. In addition, management believes that the Company’s existing fixed assets can serve as collateral to support additional bank loans. While the current plans will allow the Company to fund its operations in the next twelve months, there can be no assurance that the Company will be able to achieve its future strategic alternatives raising substantial doubt about its ability to continue as a going concern. Pursuant to the requirements of Accounting Standards Codification (ASC) 205-40, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Under ASC 205-40, the strategic alternatives being pursued by the Company cannot be considered probable at this time because none of the Company’s current plans have been finalized at the time of the issuance of these financial statements and the implementation of any such plan is not probable of being effectively implemented as none of the plans are entirely within the Company’s control. Accordingly, substantial doubt is deemed to exist about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above. |
Reverse Stock Split | Reverse Stock Split |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation Helpson’s functional currency is the Chinese Renminbi. Helpson’s revenue and expenses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating Helpson’s financial statements are included in accumulated other comprehensive income, which is a component of stockholders’ equity. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity that is party to the transaction are included in the results of operations. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated on consolidation. However, the results of operations included in such financial statements may not necessary be indicative of annual results. Such financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2023 (“2022 Annual Report”). |
Accounting Estimates | Accounting Estimates – The Company uses the same accounting policies in preparing its quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. |
Loss Per Share | Loss Per Share The potentially dilutive common shares related to the convertible, redeemable note payable of 14,627,372 and 3,836,070 at September 30, 2023 and December 31, 2022 as discussed in Note 8, respectively, and the option to purchase 66,500 shares of common stock at September 30, 2023 and December 31, 2022 are excluded from the computation of diluted net loss per share for all periods presented because the effect is anti-dilutive due to net losses of the Company. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, the FASB or other standards setting bodies issue new accounting pronouncements. Updates to the FASB ASC are communicated through issuance of ASUs. Unless otherwise discussed, the Company believes that the recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on its consolidated financial statements upon adoption. |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory [Abstract] | |
Schedule of Inventory | Inventory consisted of the following: September 30, December 31, 2023 2022 Raw materials 1,878,310 1,839,641 Work in process 676,885 557,146 Finished goods 1,211,819 551,000 Total Inventory $ 3,767,014 $ 2,947,787 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following: September 30, December 31, 2023 2022 Permit of land use $ 392,305 $ 404,427 Building 9,109,944 9,391,433 Plant, machinery and equipment 26,936,505 27,780,585 Motor vehicle 299,590 438,138 Office equipment 383,482 308,847 Total 37,121,826 38,323,430 Less: accumulated depreciation (29,353,329 ) (28,350,365 ) Property, plant and equipment, net $ 7,768,497 $ 9,973,065 |
Schedule of Estimated Useful Lives of The Assets | Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: Asset Life - years Permit of land use 40 - 70 Building 20 - 49 Plant, machinery and equipment 5 - 10 Motor vehicle 5 - 10 Office equipment 3 - 5 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of NMPA approved medical formulas, a Utility Model Patent and an Invention Patent as follows: September 30, December 31, 2023 2022 Gross carrying amount $ 6,405,040 $ 6,554,628 Accumulated amortization (4,762,683 ) (4,747,142 ) Net carrying amount $ 1,642,357 $ 1,807,486 |
Other Payables (Tables)
Other Payables (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Payables [Abstract] | |
Schedule of Other Payables | Other Payables consisted of the following: September 30, December 31, 2023 2022 Compensation payable to officer $ 963,506 $ 951,506 Compensation and interest to related parties 8,000 372,578 Business taxes and other 1,021,029 1,065,979 Total Other Payables $ 1,992,535 $ 2,390,063 |
Lines of Credit (Tables)
Lines of Credit (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Lines of Credit [Abstract] | |
Schedule of principal payments | Principal payments required for the remaining terms of the loan facility and lines of credit as of September 30, 2023 are as follows: Year Lines of Credit 2023 $ 1,016,741 2024 - 2025 - 2026 1,392,796 $ 2,409,538 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | Minimum lease payments for the Company’s operating lease liabilities were as follows for the twelve month periods ended September 30: 2024 $ 79,557 2025 59,667 Total undiscounted cash flows 139,224 Less: Imputed interest (4,430 ) 134,794 Less: Operating lease liabilities, current portion (76,000 ) Operating lease liabilities, net of current portion $ 58,794 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements [Abstract] | |
Schedule of Assets and Liabilities Recorded at Fair Value | The banker’s acceptance notes are recorded at cost which approximates fair value. The Company held the following assets and liabilities recorded at fair value: Fair Value Measurements at Reporting Date Using Description September 30, Level 1 Level 2 Level 3 Banker’s acceptance notes $ - $ - $ - $ - Total $ - $ - $ - $ - Fair Value Measurements at Reporting Date Using Description December 31, Level 1 Level 2 Level 3 Banker’s acceptance notes $ 13,784 $ - $ 13,784 $ - Total $ 13,784 $ - $ 13,784 $ - |
Organization and Significant _2
Organization and Significant Accounting Policies (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Mar. 06, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | May 25, 2005 | |
Organization and Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents (in Dollars) | $ 1,369,871 | $ 2,029,971 | ||
Accumulated deficit (in Dollars) | $ (38,058,101) | $ (36,211,496) | ||
Reverse stock split, description | more fully discussed in Note 14 | 1-for-10 | ||
Onny Investment Limited [Member] | ||||
Organization and Significant Accounting Policies [Line Items] | ||||
Ownership percentage | 100% | |||
Hainan Helpson Medical & Biotechnology Co., Ltd [Member] | ||||
Organization and Significant Accounting Policies [Line Items] | ||||
Ownership percentage | 100% | 100% | ||
Convertible, Redeemable Note Payable [Member] | ||||
Organization and Significant Accounting Policies [Line Items] | ||||
Potentially dilutive securities | 14,627,372 | 3,836,070 | ||
Options [Member] | ||||
Organization and Significant Accounting Policies [Line Items] | ||||
Potentially dilutive securities | 66,500 | 66,500 | ||
Chief Executive Officer [Member] | ||||
Organization and Significant Accounting Policies [Line Items] | ||||
Working capital (in Dollars) | $ 1,109,453 |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of Inventory - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Raw materials | $ 1,878,310 | $ 1,839,641 |
Work in process | 676,885 | 557,146 |
Finished goods | 1,211,819 | 551,000 |
Total Inventory | $ 3,767,014 | $ 2,947,787 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expanse | $ 630,579 | $ 655,386 | $ 1,896,279 | $ 2,033,194 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of Property, Plant and Equipment - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 37,121,826 | $ 38,323,430 |
Less: accumulated depreciation | (29,353,329) | (28,350,365) |
Property, plant and equipment, net | 7,768,497 | 9,973,065 |
Permit of land use [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 392,305 | 404,427 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 9,109,944 | 9,391,433 |
Plant, machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 26,936,505 | 27,780,585 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 299,590 | 438,138 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 383,482 | $ 308,847 |
Property, Plant and Equipment_4
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets | Sep. 30, 2023 |
Permit of land use [Member] | Minimum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 40 years |
Permit of land use [Member] | Maximum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 70 years |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 20 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 49 years |
Plant, machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 5 years |
Plant, machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 10 years |
Motor vehicle [Member] | Minimum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 5 years |
Motor vehicle [Member] | Maximum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 10 years |
Office equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 3 years |
Office equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment (Details) - Schedule of Estimated Useful Lives of The Assets [Line Items] | |
Estimated useful lives | 5 years |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Intangible Assets [Abstract] | ||||
Amortization intangible by useful life, descriptions | Approved medical formulas are amortized from the date NMPA approval is obtained over their individually identifiable estimated useful life, which range from ten to thirteen years. | |||
Amortization expense relating to intangible assets | $ 52,514 | $ 8,951 | $ 161,538 | $ 27,914 |
Service fee percentage | 15% |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Intangible Assets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Intangible Assets [Abstract] | ||
Gross carrying amount | $ 6,405,040 | $ 6,554,628 |
Accumulated amortization | (4,762,683) | (4,747,142) |
Net carrying amount | $ 1,642,357 | $ 1,807,486 |
Other Payables (Details) - Sche
Other Payables (Details) - Schedule of Other Payables - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Other Payables [Abstract] | ||
Compensation payable to officer | $ 963,506 | $ 951,506 |
Compensation and interest to related parties | 8,000 | 372,578 |
Business taxes and other | 1,021,029 | 1,065,979 |
Total Other Payables | $ 1,992,535 | $ 2,390,063 |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Aug. 23, 2023 USD ($) | Jul. 08, 2019 USD ($) | Jul. 08, 2019 CNY (¥) | Sep. 28, 2023 USD ($) shares | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Related Party Transactions (Details) [Line Items] | |||||||||
Loan payment | $ 1,354,567 | ||||||||
Related interest and compensation | $ 499,975 | ||||||||
Aggregate amount | $ 1,854,452 | ||||||||
Restricted common stock (in Shares) | shares | 13,757,063 | ||||||||
Board of Directors Chairman [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Borrowings from related parties | $ 0 | $ 0 | $ 1,354,567 | ||||||
Interest rate | 1% | 1% | |||||||
Interest expense | $ 0 | $ 3,387 | $ 6,773 | $ 10,159 | |||||
Other payables | 8,000 | 8,000 | 372,578 | ||||||
Chairperson Li [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Borrowings from related parties | 1,109,453 | 1,109,453 | 1,121,273 | ||||||
Interest expense | 6,942 | $ 7,731 | 20,827 | $ 22,114 | |||||
Other payables | $ 963,506 | $ 963,506 | $ 951,506 | ||||||
Proceeds from loan agreement | $ 738,379 | ¥ 4,770,000 | |||||||
Management [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Interest rate | 4.35% | 4.35% |
Lines of Credit (Details)
Lines of Credit (Details) | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 28, 2023 | Sep. 25, 2023 | Sep. 22, 2023 USD ($) | Sep. 22, 2023 CNY (¥) | Sep. 09, 2023 | Feb. 24, 2023 USD ($) | Feb. 24, 2023 CNY (¥) | Dec. 30, 2022 USD ($) | Dec. 30, 2022 CNY (¥) | Dec. 21, 2022 USD ($) | Dec. 21, 2022 CNY (¥) | Jun. 22, 2022 | Jun. 21, 2022 | Sep. 30, 2021 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 18, 2021 USD ($) | Sep. 18, 2021 CNY (¥) | Jun. 25, 2021 | |
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Line of credit, amount | $ 560,000 | ¥ 3,800,000 | $ 1,000,000 | ¥ 7,300,000 | $ 1,400,000 | ¥ 10,000,000 | ||||||||||||||||
Total interest expense | $ 12,398 | $ 13,400 | $ 37,569 | $ 30,021 | ||||||||||||||||||
Loan and received proceeds | $ 1,400,000 | ¥ 10,000,000 | ||||||||||||||||||||
Loans Payable [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Interest rate | 3.85% | 4.17% | 4.17% | 4.17% | ||||||||||||||||||
Interest rate per annum | 4.50% | 3.90% | 3.90% | 4.50% | 4.50% | |||||||||||||||||
Bank of Communications [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Line of credit, amount | $ 510,000 | ¥ 3,500,000 | ||||||||||||||||||||
Total interest expense | 10,164 | 12,759 | 26,848 | 40,684 | ||||||||||||||||||
CITIC Bank [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Interest rate | 3.45% | 3.35% | ||||||||||||||||||||
Line of credit, amount | $ 800,000 | ¥ 3,200,000 | ||||||||||||||||||||
China CITIC Bank [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Total interest expense | $ 4,243 | $ 5,178 | $ 14,750 | $ 16,407 |
Lines of Credit (Details) - Sch
Lines of Credit (Details) - Schedule of Principal Payments - Lines of Credit [Member] | Sep. 30, 2023 USD ($) |
Line of Credit Facility [Line Items] | |
2023 | $ 1,016,741 |
2024 | |
2025 | |
2026 | 1,392,796 |
Total | $ 2,409,538 |
Convertible Note Payable (Detai
Convertible Note Payable (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 13, 2023 shares | Sep. 12, 2023 USD ($) $ / shares | Sep. 06, 2023 shares | Sep. 01, 2023 USD ($) $ / shares | Aug. 22, 2023 shares | Aug. 21, 2023 USD ($) $ / shares | Aug. 11, 2023 shares | Aug. 09, 2023 USD ($) $ / shares | Jun. 27, 2023 shares | Jun. 23, 2023 USD ($) $ / shares | Jun. 14, 2023 shares | Jun. 06, 2023 USD ($) $ / shares | May 25, 2023 shares | May 24, 2023 USD ($) $ / shares | May 04, 2023 shares | May 01, 2023 USD ($) $ / shares | Apr. 13, 2023 USD ($) shares | Apr. 07, 2023 USD ($) $ / shares | Mar. 07, 2023 shares | Mar. 02, 2023 USD ($) $ / shares | Jan. 19, 2023 shares | Jan. 18, 2023 USD ($) $ / shares | Jan. 06, 2023 shares | Jan. 05, 2023 USD ($) $ / shares | Apr. 20, 2022 $ / shares | Apr. 19, 2022 $ / shares | Nov. 19, 2021 $ / shares | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) | |
Convertible Note Payable [line Items] | |||||||||||||||||||||||||||||||
Debt extension fee (in Dollars) | $ 65,639 | ||||||||||||||||||||||||||||||
Percentage of balance note and accrued interest | 2% | ||||||||||||||||||||||||||||||
Interest accrues on note, description | Interest accrues on the outstanding balance of the Note at 5% per annum compounded daily. Upon the occurrence of an Event of Default as defined in the Note, interest accrues at the lesser of 22% per annum or the maximum rate permitted by applicable law. In addition, upon any Event of Default, the Investor may accelerate the outstanding balance payable under the Note, which will increase automatically upon such acceleration by 15% or 5%, depending on the nature of the Event of Default. | ||||||||||||||||||||||||||||||
Redeem of outstanding note (in Dollars) | $ 500,000 | ||||||||||||||||||||||||||||||
Debt instrument redemption price percentage | 82% | 82% | 82% | 82% | 82% | 82% | 82% | 85% | 85% | 85% | 85% | 85% | 82% | ||||||||||||||||||
Note redeemable into shares (in Shares) | shares | 14,627,372 | ||||||||||||||||||||||||||||||
Debt redemptions weighted average price | 82% | ||||||||||||||||||||||||||||||
Weighted average price (in Dollars per share) | $ / shares | $ 0.1399 | ||||||||||||||||||||||||||||||
Interest expense (in Dollars) | $ 12,398 | $ 13,400 | $ 37,569 | $ 30,021 | |||||||||||||||||||||||||||
Debt redemption amount (in Dollars) | $ 75,000 | $ 140,000 | $ 245,000 | $ 150,000 | $ 150,000 | $ 150,000 | $ 150,000 | $ 150,000 | $ 200,000 | $ 250,000 | $ 250,000 | $ 150,000 | |||||||||||||||||||
Stock issued during period shares (in Shares) | shares | 647,668 | 1,051,051 | 1,143,257 | 699,953 | |||||||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||||||||
Convertible Note Payable [line Items] | |||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ / shares | $ 15 | ||||||||||||||||||||||||||||||
Stock issued during period shares (in Shares) | shares | 527,240 | 564,759 | 603,136 | 567,322 | 712,250 | 434,783 | 327,654 | 196,592 | |||||||||||||||||||||||
Minimum [Member] | |||||||||||||||||||||||||||||||
Convertible Note Payable [line Items] | |||||||||||||||||||||||||||||||
Percentage on investor conversion | 85% | ||||||||||||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||||||||||||
Convertible Note Payable [line Items] | |||||||||||||||||||||||||||||||
Percentage on investor conversion | 82% | ||||||||||||||||||||||||||||||
Convertible Notes Payable [Member] | |||||||||||||||||||||||||||||||
Convertible Note Payable [line Items] | |||||||||||||||||||||||||||||||
Note converted into common stock | 175,000 | 350,000 | 881,143 | 58,000 | |||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ / shares | $ 0.1158 | $ 0.1332 | $ 0.2143 | $ 0.2143 | $ 0.2845 | $ 0.2656 | $ 0.2487 | $ 0.2644 | $ 0.2808 | $ 0.575 | $ 0.763 | $ 0.763 | $ 30 | $ 5.95817 | |||||||||||||||||
Interest expense (in Dollars) | $ 52,859 | $ 61,508 | $ 184,130 | $ 192,779 |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Leases [Abstract] | |||||
Operating lease cost | $ 19,413 | $ 19,101 | $ 57,048 | $ 40,519 | |
Operating lease payments | 20,142 | $ 20,060 | 59,667 | $ 42,554 | |
Operating lease right of use assets | 134,205 | 134,205 | $ 39,046 | ||
Operating use liabilities | $ 134,794 | $ 134,794 | $ 40,445 | ||
Operating lease weighted average lease term | 1 year 9 months | 1 year 9 months | |||
Operating lease weighted average discount rate | 3.55% | 3.55% |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Operating Lease Liabilities - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 79,557 | |
2025 | 59,667 | |
Total undiscounted cash flows | 139,224 | |
Less: Imputed interest | (4,430) | |
Total | 134,794 | $ 40,445 |
Less: Operating lease liabilities, current portion | (76,000) | (40,445) |
Operating lease liabilities, net of current portion | $ 58,794 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 9 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2023 | Dec. 31, 2022 | |
Income Taxes [Line Items] | |||
Enterprise income tax rate | 25% | ||
Operating loss carryforwards | $ 20,800,000 | ||
Operating loss carryforwards available for future taxable income | $ 5,100,000 | ||
Operating loss carryforwards limitations, descriptions | through 2039, and $4.3 million are available for carryforward indefinitely subject to a limitation of 80% of taxable income for each tax year | ||
Valuation allowance on deferred tax assets | $ 21,812,226 | $ 21,985,554 | |
Minimum [Member] | |||
Income Taxes [Line Items] | |||
U.S. federal corporate income tax rate | 35% | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
U.S. federal corporate income tax rate | 21% | ||
Tax Year 2023 [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 3,300,000 | ||
United States Federal [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | $ 9,400,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Schedule of Assets and Liabilities Recorded at Fair Value - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Measurements [Line Items] | ||
Total | $ 13,784 | |
Banker's Acceptance Notes [Member] | ||
Fair Value Measurements [Line Items] | ||
Total | 13,784 | |
Level 1 [Member] | ||
Fair Value Measurements [Line Items] | ||
Total | ||
Level 1 [Member] | Banker's Acceptance Notes [Member] | ||
Fair Value Measurements [Line Items] | ||
Total | ||
Level 3 [Member] | ||
Fair Value Measurements [Line Items] | ||
Total | ||
Level 3 [Member] | Banker's Acceptance Notes [Member] | ||
Fair Value Measurements [Line Items] | ||
Total | ||
Level 2 [Member] | ||
Fair Value Measurements [Line Items] | ||
Total | 13,784 | |
Level 2 [Member] | Banker's Acceptance Notes [Member] | ||
Fair Value Measurements [Line Items] | ||
Total | $ 13,784 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 12, 2023 | Sep. 01, 2023 | Aug. 21, 2023 | Aug. 09, 2023 | Jun. 23, 2023 | Jun. 06, 2023 | May 24, 2023 | May 01, 2023 | Apr. 07, 2023 | Mar. 06, 2023 | Mar. 02, 2023 | Jan. 18, 2023 | Jan. 05, 2023 | Sep. 30, 2023 | Sep. 28, 2023 | Sep. 13, 2023 | Sep. 06, 2023 | Aug. 22, 2023 | Aug. 11, 2023 | Jun. 27, 2023 | Jun. 14, 2023 | May 25, 2023 | May 04, 2023 | Apr. 13, 2023 | Mar. 07, 2023 | Jan. 19, 2023 | Jan. 06, 2023 | Dec. 31, 2022 | Dec. 27, 2022 | Dec. 27, 2021 | |
Stockholders' Equity [Line Items] | ||||||||||||||||||||||||||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||||||||||||||||||||||||||||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | ||||||||||||||||||||||||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||||||||||||||||||||||||||||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | ||||||||||||||||||||||||||||
After tax income, percentage | 10% | |||||||||||||||||||||||||||||
Reserve account balances, percentage | 50% | |||||||||||||||||||||||||||||
General and statutory capital reserves amount (in Dollars) | $ 8,145,000 | $ 8,145,000 | ||||||||||||||||||||||||||||
Reverse stock split, description | more fully discussed in Note 14 | 1-for-10 | ||||||||||||||||||||||||||||
Note and related interest (in Dollars) | $ 75,000 | $ 1,400,000 | $ 245,000 | $ 150,000 | $ 150,000 | $ 150,000 | $ 150,000 | $ 150,000 | $ 200,000 | $ 250,000 | $ 250,000 | $ 150,000 | ||||||||||||||||||
Weighted average price percentage | 82% | 82% | 82% | 82% | 82% | 82% | 82% | 85% | 85% | 85% | 85% | 85% | ||||||||||||||||||
Share issued | 13,757,063 | 647,668 | 1,051,051 | 1,143,257 | 699,953 | 527,240 | 564,759 | 603,136 | 567,322 | 712,250 | 434,783 | 327,654 | 196,592 | |||||||||||||||||
Common stock reserved shares | 500,000 | 500,000 | ||||||||||||||||||||||||||||
Total option outstanding | 66,500 | |||||||||||||||||||||||||||||
Additional shares available for issuance | 910,000 | |||||||||||||||||||||||||||||
2010 Incentive Plan [Member] | ||||||||||||||||||||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||||||||||||||||||||
Common stock issued | 1,400,000 | |||||||||||||||||||||||||||||
Stock and stock option granted and outstanding | 490,000 | |||||||||||||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||||||||||||||||||||
Common stock reserved shares | 900,000 | 400,000 | ||||||||||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||||||||||||||||||||
Common stock reserved shares | 1,400,000 | 900,000 | ||||||||||||||||||||||||||||
Convertible Note Payable [Member] | ||||||||||||||||||||||||||||||
Stockholders' Equity [Line Items] | ||||||||||||||||||||||||||||||
Conversion price (in Dollars per share) | $ 0.1158 | $ 0.1332 | $ 0.2143 | $ 0.2143 | $ 0.2845 | $ 0.2656 | $ 0.2487 | $ 0.2644 | $ 0.2808 | $ 0.575 | $ 0.763 | $ 0.763 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Concentration risk percentage | 10% | 10.20% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Concentration risk percentage | 53.10% | 52.80% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Concentration risk percentage | 11.50% | 11.40% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Concentration risk percentage | 10.40% | 10.40% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Product One [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Concentration risk percentage | 20.90% | 25.50% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Product Two [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Concentration risk percentage | 19.40% | 25% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Product Three [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Concentration risk percentage | 18.20% | 14.90% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Product Four [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Concentration risk percentage | 10.50% | 11.20% |
Suppliers One [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Concentration risk percentage | 13.40% | 24.10% |
Suppliers Two [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Concentration risk percentage | 10.40% | 12.60% |
Supplier Three [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Concentration risk percentage | 10.80% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | Nov. 07, 2023 | Nov. 06, 2023 | Oct. 17, 2023 | Oct. 12, 2023 | Oct. 09, 2023 | Oct. 06, 2023 |
Subsequent Events [Line Items] | ||||||
Notes redemption | $ 80,000 | $ 115,000 | $ 115,000 | $ 100,000 | ||
Debt redemption weighted average price percentage | 82% | 82% | 82% | 82% | ||
Common Stock [Member] | ||||||
Subsequent Events [Line Items] | ||||||
Stock issued during period shares | 1,062,216 | 1,120,857 | 915,750 | |||
Convertible Notes Payable [Member] | ||||||
Subsequent Events [Line Items] | ||||||
Conversion price | $ 0.0753 | $ 0.1026 | $ 0.1026 | $ 0.1092 | ||
Investor [Member] | Common Stock [Member] | ||||||
Subsequent Events [Line Items] | ||||||
Stock issued during period shares | 1,120,857 |