Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Jan. 29, 2015 | Apr. 30, 2014 | |
StockIssuedForServices | |||
Entity Registrant Name | Advanced Biomedical Technologies Inc. | ||
Entity Central Index Key | 1385799 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Oct-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -21 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $8,436,210 | ||
Entity Common Stock, Shares Outstanding | 56,874,850 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
CURRENT ASSETS | ||
Cash and cash equivalents | $74,354 | $48,380 |
Other receivables and prepaid expenses | 18,768 | 21,105 |
Total Current Assets | 93,122 | 69,485 |
PROPERTY AND EQUIPMENT, NET | 108,254 | 126,568 |
DEPOSIT FOR PURCHASE OF PROPERTY AND EQUIPMENT | 16,238 | 1,140 |
TOTAL ASSETS | 217,614 | 197,193 |
CURRENT LIABILITIES | ||
Other payables and accrued expenses | 105,771 | 59,237 |
Due to directors | 402,510 | 455,574 |
Due to a stockholder | 459,131 | 349,911 |
Due to related parties | 2,988,738 | 2,266,916 |
Total Current Liabilities | 3,956,150 | 3,131,638 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' DEFICIT | ||
Common stock, $0.00001 par value, 100,000,000 shares authorized, 56,874,850 shares issued and outstanding as of October 31, 2014 and October 31, 2013 | 569 | 569 |
Additional paid-in capital | 1,927,968 | 1,907,889 |
Accumulated deficit | -5,400,107 | -4,572,351 |
Accumulated other comprehensive loss | -266,966 | -270,552 |
Total Deficit | -3,738,536 | -2,934,445 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $217,614 | $197,193 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Condensed Consolidated Balance Sheets Parenthetical | ||
Common Stock Shares Par Value | $0.00 | $0.00 |
Common Stock Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock Shares Issued | 56,874,850 | 56,874,850 |
Common Stock Shares Outstanding | 56,874,850 | 56,874,850 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
OPERATING EXPENSES | ||
General and administrative expenses | $543,414 | $661,794 |
Depreciation | 26,640 | 26,201 |
Research and development | 47,700 | 30,749 |
Total Operating Expenses | 617,754 | 718,744 |
LOSS FROM OPERATIONS | -617,754 | -718,744 |
OTHER EXPENSES | ||
Interest income | 137 | 70 |
Interest paid to a stockholder and related parties | -181,393 | -137,502 |
Imputed interest | -20,079 | -22,936 |
Others, net | -8,667 | -11,231 |
Total Other Expenses, net | -210,002 | -171,599 |
LOSS FROM OPERATIONS BEFORE TAXES | -827,756 | -890,343 |
Income tax expense | 0 | 0 |
NET LOSS ATTRIBUTABLE TO ABMT COMMON STOCKHOLDERS | -827,756 | -890,343 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation income/(loss) | 3,586 | -55,510 |
COMPREHENSIVE LOSS ATTRIBUTABLE TO ABMT COMMON STOCKHOLDERS | ($824,170) | ($945,853) |
Net loss per share-basic and diluted | ($0.01) | ($0.02) |
Weighted average number of shares outstanding during the year - basic and diluted | 56,874,850 | 56,578,138 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS DEFICIT (UNAUDITED) (USD $) | Common Stock | Additional Paid-In Capital | Deferred stock compensation | Accumulated deficit | Accumulated Other Comprehensive Loss | Total |
Beginning Balance, Amount at Oct. 31, 2012 | $566 | $1,671,956 | ($1,667) | ($3,682,008) | ($215,042) | ($2,226,195) |
Beginning Balance, Shares at Oct. 31, 2012 | 56,574,850 | |||||
Amortisation for stock issued for services | 1,667 | 1,667 | ||||
Stock issued for services, Shares | 300,000 | |||||
Stock issued for services, Amount | 3 | 212,997 | 213,000 | |||
Imputed interest on advances from directors | 22,936 | 22,936 | ||||
Net loss for the year | -890,343 | |||||
Foreign currency translation gain (loss) | -55,510 | -55,510 | ||||
Ending Balance, Amount at Oct. 31, 2013 | 569 | 1,907,889 | -4,572,351 | -270,552 | -2,934,445 | |
Ending Balance, Shares at Oct. 31, 2013 | 56,874,850 | |||||
Imputed interest on advances from directors | 20,079 | 20,079 | ||||
Net loss for the year | -827,756 | |||||
Foreign currency translation gain (loss) | 3,586 | 3,586 | ||||
Ending Balance, Amount at Oct. 31, 2014 | $569 | $1,927,968 | ($5,400,107) | ($266,966) | ($3,738,536) | |
Ending Balance, Shares at Oct. 31, 2014 | 56,874,850 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | ($827,756) | ($890,343) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 26,640 | 26,201 |
Stock issued for services | 0 | 214,667 |
Imputed interest | 20,079 | 22,936 |
Changes in operating assets and liabilities | ||
Decrease in Other receivables and prepaid expenses | 2,270 | 978 |
Increase in Other payables and accrued expenses | 46,346 | 20,592 |
Net cash used in operating activities | -732,421 | -604,969 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | -8,793 | -8,166 |
(Increase) decrease in deposit for purchase of property and equipment | -15,009 | 562 |
Net cash used in investing activities | -23,802 | -7,604 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Due to a stockholder | 109,253 | 82,142 |
Due to directors | -51,460 | -62,450 |
Due to related parties | 724,435 | 591,492 |
Net cash provided by financing activities | 782,228 | 611,184 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -31 | 677 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 25,974 | -712 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 48,380 | 49,092 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $74,354 | $48,380 |
1_SUMMARY_OF_SIGNIFICANT_ACCOU
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION | 12 Months Ended | ||||
Oct. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION | (A) | Organization | |||
Advanced Biomedical Technologies, Inc. (fka “Geostar Mineral Corporation” or ”Geostar”) (“ABMT”) was incorporated in Nevada on September 12, 2006 . | |||||
Shenzhen Changhua Biomedical Engineering Co., Ltd. (“Shenzhen Changhua”) was incorporated in the People’s Republic of China (“PRC”) on September 25, 2002 as a limited liability company with a registered capital of $724,017. Shenzhen Changhua is owned by two stockholders in the proportion of 70% and 30% respectively. Shenzhen Changhua plans to develop, manufacture and market self-reinforced, re-absorbable degradable PA screws, robs and binding ties for fixation on human fractured bones. The Company is currently conducting clinical trials on its products and intends to raise additional capital to produce and market its products commercially pending the approval from the China Food and Drug Administration (“CFDA”, formerly known as “SFDA”) of the PRC on its products. The Company has no revenue since its inception and, in accordance with Accounting Standards Codification (“ASC”) Topic 915, “Development Stage Entities”, is considered a Development Stage Company. | |||||
Masterise Holdings Limited (“Masterise”) was incorporated in the British Virgin Islands on May 31, 2007 as an investment holding company. Masterise is owned as to 63% by the spouse of Shenzhen Changhua’s 70% majority stockholder and 37% by a third party corporation. | |||||
On January 29, 2008, Masterise entered into a Share Purchase Agreement (“the Agreement”) with a stockholder of Shenzhen Changhua whereupon Masterise acquired 70% of Shenzhen Changhua for US$64,100 in cash. The acquisition was completed on February 25, 2008. As both Masterise and Shenzhen Changhua are under common control and management, the acquisition was accounted for as a reorganization of entities under common control. Accordingly, the operations of Shenzhen Changhua were included in the consolidated financial statements as if the transactions had occurred retroactively. | |||||
On December 31, 2008, ABMT consummated a Share Exchange Agreement (“the Exchange Agreement”) with the stockholders of Masterise pursuant to which Geostar issued 50,000 shares of Common Stock to the stockholders of Masterise for 100% equity interest in Masterise. | |||||
Concurrently, on December 31, 2008, a major stockholder of ABMT also consummated an Affiliate Stock Purchase Agreement (the “Affiliate Agreement”) with thirteen individuals including all the stockholders of Masterise, pursuant to which the major stockholder sold a total of 5,001,000 shares of ABMT’s common stock for a total aggregate consideration of $5,000, including 4,438,250 shares to the stockholders of Masterise. | |||||
On consummation of the Exchange Agreement and the Affiliate Agreement, the 70% majority stockholder of Masterise became a 80.7% stockholder of ABMT. | |||||
On March 13, 2009, the name of the Company was changed from Geostar Mineral Corporation to Advanced Biomedical Technologies, Inc. | |||||
The merger of ABMT and Masterise was treated for accounting purposes as a capital transaction and recapitalization by Masterise (“the accounting acquirer”) and a re-organization by ABMT (“the accounting acquiree”). The financial statements have been prepared as if the re-organization had occurred retroactively. | |||||
Accordingly, these financial statements include the following: | |||||
-1 | The balance sheet consisting of the net assets of the acquirer at historical cost and the net assets of the acquiree at historical cost. | ||||
-2 | The statement of operations including the operations of the acquirer for the periods presented and the operations of the acquiree from the date of the transaction. | ||||
ABMT, Masterise and Shenzhen Changhua are hereinafter referred to as (“the Company”). | |||||
(B) | Principles of consolidation | ||||
The accompanying consolidated financial statements include the financial statements of ABMT and its wholly owned subsidiaries, Masterise and its 70% owned subsidiary, Shenzhen Changhua. The noncontrolling interests represent the noncontrolling stockholders’ 30% proportionate share of the results of Shenzhen Changhua. | |||||
All significant inter-company balances and transactions have been eliminated in consolidation. | |||||
(C) | Use of estimates | ||||
The preparation of the financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||
(D) | Cash and cash equivalents | ||||
For purpose of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits with a bank with a maturity of less than three months. As of October 31, 2014 and 2013, all the cash and cash equivalents were denominated in United States Dollars (“US$”), Hong Kong Dollars (“HK$”) and Renminbi (“RMB”) and were placed with banks in the United States of America, Hong Kong and PRC. Balances at financial institutions or state-owned banks within the PRC are not freely convertible into foreign currencies and the remittance of these funds out of the PRC is subject to exchange control restrictions imposed by the PRC government. | |||||
(E) | Property and equipment | ||||
Property and equipment are stated at cost, less accumulated depreciation. Expenditures for additions, major renewals and betterments are capitalized and expenditures for maintenance and repairs are charged to expense as incurred. | |||||
Depreciation is provided on a straight-line basis, less estimated residual value over the assets estimated useful lives. The estimated useful lives of the assets are 5 years. | |||||
(F) | Long-lived assets | ||||
The Company accounts for long-lived assets under the FASB Codification Topic 360 (ASC 360) “Accounting for Impairment or Disposal of Long-Lived Assets”. In accordance with ASC Topic 360, long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. The long-lived assets of the Company, which are subject to evaluation, consist primarily of property and equipment. For the years ended October 31, 2014 and 2013, the Company has not recognized any allowances for impairment. | |||||
(G) | Fair value of financial instruments | ||||
FASB Codification Topic 825(ASC Topic 825), "Disclosure About Fair Value of Financial Instruments," requires certain disclosures regarding the fair value of financial instruments. The carrying amounts of other receivables and prepaid expenses other payables and accrued liabilities and due to directors, a stockholder and related parties approximate their fair values because of the short-term nature of the instruments. The management of the Company is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial statements. | |||||
(H) | Income taxes | ||||
The Company accounts for income taxes under the FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period included the enactment date. | |||||
We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is greater than 50% likelihood that a tax benefit will be sustained, we have recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is a 50% or less likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. | |||||
(I) | Research and development | ||||
Research and development costs related to both present and future products are expensed as incurred. Total expenditure on research and development charged to general and administrative expenses for the years ended October 31, 2014 and 2013 were $47,700 and $30,749 respectively. | |||||
(J) | Foreign currency translation | ||||
The reporting currency of the Company is the US dollar. ABMT, Masterise and Shenzhen Changhua maintain their accounting records in their functional currencies of US$, HK$ and RMB respectively. | |||||
Foreign currency transactions during the year are translated to the functional currency at the approximate rates of exchange on the dates of transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the approximate rates of exchange at that date. Non-monetary assets and liabilities are translated at the rates of exchange prevailing at the time the asset or liability was acquired. Exchange gains or losses are recorded in the statement of operations. | |||||
The financial statements of Masterise and Shenzhen Changhua (whose functional currency is HK$ and RMB respectively) are translated into US$ using the closing rate method. The balance sheet items are translated into US$ using the exchange rates at the respective balance sheet dates. The capital and various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses items are translated at the average exchange rate for the year. All exchange differences are recorded within equity. | |||||
The exchange rates used to translate amounts in HK$ and RMB into US$ for the purposes of preparing the financial statements were as follows: | |||||
31-Oct-14 | 31-Oct-13 | ||||
Balance sheet items, except for share capital, additional paid-in capital and accumulated deficits, as of year end | US$1=$7.7551=B6.1124 | US$1=$7.7530=B6.0943 | |||
Amounts included in the statements of operations and cash flows for the year | US$1=$7.7543=B6.1498 | US$1=$7.7561=B6.1717 | |||
The translation (gain)/loss recorded for the years ended October 31, 2014 and 2013 were ($3,586) and $55,510 respectively. | |||||
No presentation is made that RMB amounts have been, or would be, converted into US$ at the above rates. Although the Chinese government regulations now allow convertibility of RMB for current account transactions, significant restrictions still remain. Hence, such translations should not be construed as representations that RMB could be converted into US$ at that rate or any other rate. | |||||
The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in China’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. | |||||
(K) | Other comprehensive loss | ||||
The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB and HK$ to US$ is reported as other comprehensive gain or loss in the statements of operations and stockholders’ deficit. Other comprehensive (gain)/loss for the years ended October 31, 2014 and 2013 were ($3,586) and $55,510 respectively. | |||||
(L) | Loss per share | ||||
Basic loss per share are computed by dividing income available to stockholders by the weighted average number of shares outstanding during the year. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional shares that would have been outstanding if the potential shares had been issued and if the additional shares were diluted. There were no potentially dilutive securities for 2014 and 2013. | |||||
(M) | Segments | ||||
The Company operates in only one segment, thereafter segment disclosure is not presented. | |||||
(N) | Recent Accounting Pronouncements | ||||
On June 10, 2014, FASB issued a new accounting standard that reduces disclosure and reporting requirements for development stage entities. Among other things, development stage entities will no longer be required to report inception-to-date information. The change will be effective for interim and annual reporting periods beginning after December 15, 2014, with early adoption permitted. The Company has elected to early adopt these amendments. | |||||
In August 2014, FASB issued Accounting Standards Update (ASU) No. 2014-15 Preparation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under generally accepted accounting principles (GAAP), continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial Statements—Liquidation Basis of Accounting. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this Update should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in this Accounting Standards Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company will evaluate the going concern considerations in this ASU, however, at the current period, management does not believe that it has met conditions which would subject these financial statements for additional disclosure. | |||||
2_PROPERTY_AND_EQUIPMENT
2. PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
2. PROPERTY AND EQUIPMENT | The following is a summary of property and equipment at October 31, 2014 and 2013: | ||||||||
October 31, | |||||||||
2014 | 2013 | ||||||||
Plant and machinery | $ | 272,214 | $ | 266,931 | |||||
Motor vehicles | 45,105 | 45,239 | |||||||
Office equipment | 34,523 | 31,824 | |||||||
Computer software | 5,017 | 5,017 | |||||||
Office improvements | 131,439 | 131,829 | |||||||
488,298 | 480,840 | ||||||||
Less: accumulated depreciation | 380,044 | 354,272 | |||||||
Property and equipment, net | $ | 108,254 | $ | 126,568 | |||||
Depreciation expense for the year ended October 31, 2014 and 2013 was $26,640 and $26,201 respectively. |
3_OTHER_PAYABLES_AND_ACCRUED_E
3. OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
3. OTHER PAYABLES AND ACCRUED EXPENSES | Other payables and accrued expenses at October 31, 2014 and 2013 consisted of the following: | ||||||||
October 31, | |||||||||
2014 | 2013 | ||||||||
Other payables | $ | 929 | $ | 790 | |||||
Accrued expenses | 104,842 | 58,447 | |||||||
$ | 105,771 | $ | 59,237 | ||||||
4_RELATED_PARTY_TRANSACTIONS
4. RELATED PARTY TRANSACTIONS | 12 Months Ended |
Oct. 31, 2014 | |
Notes to Financial Statements | |
4. RELATED PARTY TRANSACTIONS | |
As of October 31, 2014 and 2013, the Company owed $459,131 and $349,911 respectively to a stockholder which is unsecured and repayable on demand. Interest is charged at 7% per annum on the amount owed. | |
As of October 31, 2014 and 2013, the Company owed $2,988,738 and $2,266,916 to two related parties which are unsecured and repayable on demand. Interests are charged at 7% per annum on the amount owed. | |
Total interest expenses on advances from a stockholder and the related parties accrued for the years ended October 31, 2014 and 2013 were $181,393 and $137,502 respectively. | |
As of October 31, 2014 and 2013, the Company owed $402,510 and $455,574 respectively to two directors for advances made. These advances were made on an unsecured basis, repayable on demand and interest free. | |
Imputed interest on the amounts owed to two directors are $20,079 and $22,936 for the years ended October 31, 2014, and 2013 respectively. | |
For the years ended October 31, 2014 and 2013, the Company issued restricted common stock as directors’ services compensation for past services nil shares and 300,000 shares valued at $0 and $213,000 respectively. Please refer to Item 11 for details of directors’ emoluments. | |
5_STOCKHOLDERS_DEFICIT
5. STOCKHOLDERS DEFICIT | 12 Months Ended |
Oct. 31, 2014 | |
Notes to Financial Statements | |
5. STOCKHOLDERS DEFICIT | Common stock |
On December 8, 2011, the Company issued 100,000 shares of restricted common stock at $0.2 to Dr. John Lynch, the Company’s chief officer of dental technologies, for services for a term of twelve months. The shares were valued at the closing price on the date of grant yielding an aggregate fair value of $20,000. In this respect, the Company recognized $0 and $1,667 for the year ended October 31, 2014 and 2013 respectively as consultancy fees included in general and administrative expenses. | |
On October 28, 2013, the Company issued 150,000 shares of restricted common stock as directors’ services compensation for past services to each of Mr. Chi Ming Yu and Kai Gui, directors of the Company. The shares were valued at the closing price of $0.71 per share on the date of grant, yielding an aggregate fair value of $213,000. | |
For the years ended October 31, 2014 and 2013 the Company recognized $0 and $214,667 respectively as consultancy fees included in general and administrative expenses. | |
6_COMMITMENTS_AND_CONTINGENCIE
6. COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Oct. 31, 2014 | |||||
Notes to Financial Statements | |||||
6. COMMITMENTS AND CONTINGENCIES | |||||
(A) | Employee benefits | ||||
The full time employees of the Company are entitled to employee benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a Chinese government mandated multi-employer defined contribution plan. The Company is required to accrue for these benefits based on certain percentages of the employees’ salaries and make contributions to the plans out of the amounts accrued for medical and pension benefits. The total provisions and contributions made for such employee benefits was $74,189 and $68,711 for the years ended October 31, 2014 and 2013 respectively. The Chinese government is responsible for the medical benefits and the pension liability to be paid to these employees. | |||||
(B) | Lease commitments | ||||
The Company leased from third parties office space and an apartment for a director at monthly rent prevailing at October 31, 2014 of $2,348 and $1,309 (2013: $2,243 and $1,313) respectively. Both of these operating leases expired on July 20, 2014 and June 30, 2014 respectively. The Company continues to lease these premises at same monthly rent pending a formal renewal of these leases. | |||||
The Company also leases eight apartments (2013: seven apartments) and one canteen (2013: one canteen) for staff under three operating leases (2013: two leases) from a third party at monthly rental totaling $965 (2013: $766), all of which will expire in April 2015, June 2015 and July 2015 respectively. | |||||
As of October 31, 2014, the Company had outstanding commitments with respect to the above operating lease, which are due as follows: | |||||
2015 | 8,151 | ||||
Total | $ | 8,151 | |||
(C) | Capital commitments | ||||
As of October 31, 2014, outstanding commitments contracted for, net of deposit paid, in respect of acquisitions of plant and equipment totaled $16,238 (2013: $1,140). | |||||
7_INCOME_TAX
7. INCOME TAX | 12 Months Ended |
Oct. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
7. INCOME TAX | ABMT was incorporated in the United States and has incurred net operating loss for income tax purposes for 2014 and 2013. ABMT has net operating loss carry forwards for income taxes amounting to approximately $1,512,723 and $1,423,563 as of October 31, 2014 and 2013 respectively which may be available to reduce future years’ taxable income. These carry forwards, will expire, if not utilized, commencing in 2029. Management believes that the realization of the benefits from these losses appears uncertain due to the Company’s limited operating history and continuing losses. Accordingly, a full, deferred tax asset valuation allowance has been provided and no deferred tax asset benefit has been recorded. The valuation allowance at October 31, 2014 and 2013 was $514,326 and $484,011 respectively. The net change in the valuation allowance for 2014 was an increase of $30,315. |
Masterise was incorporated in the BVI and under current law of the BVI, is not subject to tax on income. | |
Shenzhen Changhua was incorporated in the PRC and is subject to PRC income tax which is computed according to the relevant laws and regulations in the PRC. The income tax rate has been charged at 25%. No income tax expense has been provided by Shenzhen Changhua as it has incurred losses. The losses cannot be carried forward as Shenzhen Changhua has not yet commenced operation. | |
8_CONCENTRATIONS_AND_RISKS
8. CONCENTRATIONS AND RISKS | 12 Months Ended |
Oct. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
8. CONCENTRATIONS AND RISKS | As at October 31, 2014, 91% and 9% of the Company’s assets were located in the P.R.C. and the United States respectively. |
As at October 31, 2013, 96% and 4% of the Company’s assets were located in the P.R.C. and the United States respectively. |
9_GOING_CONCERN
9. GOING CONCERN | 12 Months Ended |
Oct. 31, 2014 | |
Notes to Financial Statements | |
9. GOING CONCERN | As reflected in the accompanying consolidated financial statements, the Company has an accumulated deficit of $5,400,107 as of October 31, 2014 that includes a net loss of $827,756 for the year ended October 31, 2014. The Company’s total current liabilities exceed its total current assets by $3,863,028 and the Company used cash in operations of $732,421. These factors raise substantial doubt about its ability to continue as a going concern. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to raise additional capital, obtain financing and succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
To continue as a going concern, the Company is actively pursuing additional funding and strategic partners to enable it to implement its business plan. Management believes that these actions, if successful, will allow the Company to continue its operations through the next fiscal year. |
10_SUBSEQUENT_EVENT
10. SUBSEQUENT EVENT | 12 Months Ended |
Oct. 31, 2014 | |
Subsequent Events [Abstract] | |
10. SUBSEQUENT EVENT | The Company has evaluated the existence of significant events subsequent to the balance sheet date through the date the financial statements were issued and has determined that there were no subsequent events or transactions which would require recognition or disclosure in the financial statements other than stated below: |
On November 10, 2014, the Company received cash advance from a related party, Tie Jun Chen, amounted to RMB250,000 (equivalent to approximately $41,000). | |
On November 28, 2014, the Company received cash advance from a related party, Chi Fung Yu, amounted to RMB250,000 (equivalent to approximately $41,000). | |
On December 12, 2014, the Company received cash advance from a related party, Tie Jun Chen, amounted to RMB300,000 (equivalent to approximately $49,000). | |
On January 20, 2015, the Company received cash advance from a related party, Chi Fung Yu,, amounted to RMB250,000 (equivalent to approximately $41,000). |
1_SUMMARY_OF_SIGNIFICANT_ACCOU1
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION (Policies) | 12 Months Ended | ||||
Oct. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Organization | Advanced Biomedical Technologies, Inc. (fka “Geostar Mineral Corporation” or ”Geostar”) (“ABMT”) was incorporated in Nevada on September 12, 2006 . | ||||
Shenzhen Changhua Biomedical Engineering Co., Ltd. (“Shenzhen Changhua”) was incorporated in the People’s Republic of China (“PRC”) on September 25, 2002 as a limited liability company with a registered capital of $724,017. Shenzhen Changhua is owned by two stockholders in the proportion of 70% and 30% respectively. Shenzhen Changhua plans to develop, manufacture and market self-reinforced, re-absorbable degradable PA screws, robs and binding ties for fixation on human fractured bones. The Company is currently conducting clinical trials on its products and intends to raise additional capital to produce and market its products commercially pending the approval from the China Food and Drug Administration (“CFDA”, formerly known as “SFDA”) of the PRC on its products. The Company has no revenue since its inception and, in accordance with Accounting Standards Codification (“ASC”) Topic 915, “Development Stage Entities”, is considered a Development Stage Company. | |||||
Masterise Holdings Limited (“Masterise”) was incorporated in the British Virgin Islands on May 31, 2007 as an investment holding company. Masterise is owned as to 63% by the spouse of Shenzhen Changhua’s 70% majority stockholder and 37% by a third party corporation. | |||||
On January 29, 2008, Masterise entered into a Share Purchase Agreement (“the Agreement”) with a stockholder of Shenzhen Changhua whereupon Masterise acquired 70% of Shenzhen Changhua for US$64,100 in cash. The acquisition was completed on February 25, 2008. As both Masterise and Shenzhen Changhua are under common control and management, the acquisition was accounted for as a reorganization of entities under common control. Accordingly, the operations of Shenzhen Changhua were included in the consolidated financial statements as if the transactions had occurred retroactively. | |||||
On December 31, 2008, ABMT consummated a Share Exchange Agreement (“the Exchange Agreement”) with the stockholders of Masterise pursuant to which Geostar issued 50,000 shares of Common Stock to the stockholders of Masterise for 100% equity interest in Masterise. | |||||
Concurrently, on December 31, 2008, a major stockholder of ABMT also consummated an Affiliate Stock Purchase Agreement (the “Affiliate Agreement”) with thirteen individuals including all the stockholders of Masterise, pursuant to which the major stockholder sold a total of 5,001,000 shares of ABMT’s common stock for a total aggregate consideration of $5,000, including 4,438,250 shares to the stockholders of Masterise. | |||||
On consummation of the Exchange Agreement and the Affiliate Agreement, the 70% majority stockholder of Masterise became a 80.7% stockholder of ABMT. | |||||
On March 13, 2009, the name of the Company was changed from Geostar Mineral Corporation to Advanced Biomedical Technologies, Inc. | |||||
The merger of ABMT and Masterise was treated for accounting purposes as a capital transaction and recapitalization by Masterise (“the accounting acquirer”) and a re-organization by ABMT (“the accounting acquiree”). The financial statements have been prepared as if the re-organization had occurred retroactively. | |||||
Accordingly, these financial statements include the following: | |||||
-1 | The balance sheet consisting of the net assets of the acquirer at historical cost and the net assets of the acquiree at historical cost. | ||||
-2 | The statement of operations including the operations of the acquirer for the periods presented and the operations of the acquiree from the date of the transaction. | ||||
ABMT, Masterise and Shenzhen Changhua are hereinafter referred to as (“the Company”). | |||||
Principles of consolidation | The accompanying consolidated financial statements include the financial statements of ABMT and its wholly owned subsidiaries, Masterise and its 70% owned subsidiary, Shenzhen Changhua. The noncontrolling interests represent the noncontrolling stockholders’ 30% proportionate share of the results of Shenzhen Changhua. | ||||
All significant inter-company balances and transactions have been eliminated in consolidation. | |||||
Use of estimates | The preparation of the financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||
Cash and cash equivalents | For purpose of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits with a bank with a maturity of less than three months. As of October 31, 2014 and 2013, all the cash and cash equivalents were denominated in United States Dollars (“US$”), Hong Kong Dollars (“HK$”) and Renminbi (“RMB”) and were placed with banks in the United States of America, Hong Kong and PRC. Balances at financial institutions or state-owned banks within the PRC are not freely convertible into foreign currencies and the remittance of these funds out of the PRC is subject to exchange control restrictions imposed by the PRC government. | ||||
Property and equipment | Property and equipment are stated at cost, less accumulated depreciation. Expenditures for additions, major renewals and betterments are capitalized and expenditures for maintenance and repairs are charged to expense as incurred. | ||||
Depreciation is provided on a straight-line basis, less estimated residual value over the assets estimated useful lives. The estimated useful lives of the assets are 5 years. | |||||
Long-lived assets | The Company accounts for long-lived assets under the FASB Codification Topic 360 (ASC 360) “Accounting for Impairment or Disposal of Long-Lived Assets”. In accordance with ASC Topic 360, long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. The long-lived assets of the Company, which are subject to evaluation, consist primarily of property and equipment. For the years ended October 31, 2014 and 2013, the Company has not recognized any allowances for impairment. | ||||
Fair value of financial instruments | FASB Codification Topic 825(ASC Topic 825), "Disclosure About Fair Value of Financial Instruments," requires certain disclosures regarding the fair value of financial instruments. The carrying amounts of other receivables and prepaid expenses other payables and accrued liabilities and due to directors, a stockholder and related parties approximate their fair values because of the short-term nature of the instruments. The management of the Company is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial statements. | ||||
Income taxes | The Company accounts for income taxes under the FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period included the enactment date. | ||||
We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is greater than 50% likelihood that a tax benefit will be sustained, we have recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is a 50% or less likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. | |||||
Research and development | Research and development costs related to both present and future products are expensed as incurred. Total expenditure on research and development charged to general and administrative expenses for the years ended October 31, 2014 and 2013 were $47,700 and $30,749 respectively. | ||||
Foreign currency translation | The reporting currency of the Company is the US dollar. ABMT, Masterise and Shenzhen Changhua maintain their accounting records in their functional currencies of US$, HK$ and RMB respectively. | ||||
Foreign currency transactions during the year are translated to the functional currency at the approximate rates of exchange on the dates of transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the approximate rates of exchange at that date. Non-monetary assets and liabilities are translated at the rates of exchange prevailing at the time the asset or liability was acquired. Exchange gains or losses are recorded in the statement of operations. | |||||
The financial statements of Masterise and Shenzhen Changhua (whose functional currency is HK$ and RMB respectively) are translated into US$ using the closing rate method. The balance sheet items are translated into US$ using the exchange rates at the respective balance sheet dates. The capital and various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses items are translated at the average exchange rate for the year. All exchange differences are recorded within equity. | |||||
The exchange rates used to translate amounts in HK$ and RMB into US$ for the purposes of preparing the financial statements were as follows: | |||||
31-Oct-14 | 31-Oct-13 | ||||
Balance sheet items, except for share capital, additional paid-in capital and accumulated deficits, as of year end | US$1=$7.7551=B6.1124 | US$1=$7.7530=B6.0943 | |||
Amounts included in the statements of operations and cash flows for the year | US$1=$7.7543=B6.1498 | US$1=$7.7561=B6.1717 | |||
The translation (gain)/loss recorded for the years ended October 31, 2014 and 2013 were ($3,586) and $55,510 respectively. | |||||
No presentation is made that RMB amounts have been, or would be, converted into US$ at the above rates. Although the Chinese government regulations now allow convertibility of RMB for current account transactions, significant restrictions still remain. Hence, such translations should not be construed as representations that RMB could be converted into US$ at that rate or any other rate. | |||||
The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in China’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. | |||||
Other comprehensive loss | The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB and HK$ to US$ is reported as other comprehensive gain or loss in the statements of operations and stockholders’ deficit. Other comprehensive (gain)/loss for the years ended October 31, 2014 and 2013 were ($3,586) and $55,510 respectively. | ||||
Loss per share | Basic loss per share are computed by dividing income available to stockholders by the weighted average number of shares outstanding during the year. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional shares that would have been outstanding if the potential shares had been issued and if the additional shares were diluted. There were no potentially dilutive securities for 2014 and 2013. | ||||
Segments | The Company operates in only one segment, thereafter segment disclosure is not presented. | ||||
Recent Accounting Pronouncements | On June 10, 2014, FASB issued a new accounting standard that reduces disclosure and reporting requirements for development stage entities. Among other things, development stage entities will no longer be required to report inception-to-date information. The change will be effective for interim and annual reporting periods beginning after December 15, 2014, with early adoption permitted. The Company has elected to early adopt these amendments. | ||||
In August 2014, FASB issued Accounting Standards Update (ASU) No. 2014-15 Preparation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under generally accepted accounting principles (GAAP), continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial Statements—Liquidation Basis of Accounting. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this Update should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in this Accounting Standards Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company will evaluate the going concern considerations in this ASU, however, at the current period, management does not believe that it has met conditions which would subject these financial statements for additional disclosure. | |||||
1_SUMMARY_OF_SIGNIFICANT_ACCOU2
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION (Tables) | 12 Months Ended | ||||
Oct. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Exchange rates used in translation | 31-Oct-14 | 31-Oct-13 | |||
Balance sheet items, except for share capital, additional paid-in capital and accumulated deficits, as of year end | US$1=$7.7551=B6.1124 | US$1=$7.7530=B6.0943 | |||
Amounts included in the statements of operations and cash flows for the year | US$1=$7.7543=B6.1498 | US$1=$7.7561=B6.1717 |
2_PROPERTY_AND_EQUIPMENT_Table
2. PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and equipment | October 31, | ||||||||
2014 | 2013 | ||||||||
Plant and machinery | $ | 272,214 | $ | 266,931 | |||||
Motor vehicles | 45,105 | 45,239 | |||||||
Office equipment | 34,523 | 31,824 | |||||||
Computer software | 5,017 | 5,017 | |||||||
Office improvements | 131,439 | 131,829 | |||||||
488,298 | 480,840 | ||||||||
Less: accumulated depreciation | 380,044 | 354,272 | |||||||
Property and equipment, net | $ | 108,254 | $ | 126,568 |
3_OTHER_PAYABLES_AND_ACCRUED_E1
3. OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Other payables and accrued expenses | October 31, | ||||||||
2014 | 2013 | ||||||||
Other payables | $ | 929 | $ | 790 | |||||
Accrued expenses | 104,842 | 58,447 | |||||||
$ | 105,771 | $ | 59,237 |
6_COMMITMENTS_AND_CONTINGENCIE1
6. COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Oct. 31, 2014 | |||||
CommitmentsAndContingenciesTablesAbstract | |||||
Operating lease outstanding commitments | |||||
2015 | 8,151 | ||||
Total | $ | 8,151 | |||
1_SUMMARY_OF_SIGNIFICANT_ACCOU3
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION (Details) | Oct. 31, 2014 | Oct. 31, 2013 |
US | Rate For Balance sheet items | ||
Exchange rate | 1 | 1 |
US | Rate For Transactions Occuring Throughout The Year | ||
Exchange rate | 1 | 1 |
HK | Rate For Balance sheet items | ||
Exchange rate | 7.7551 | 7.753 |
HK | Rate For Transactions Occuring Throughout The Year | ||
Exchange rate | 7.7543 | 7.7561 |
RMB | Rate For Balance sheet items | ||
Exchange rate | 6.1124 | 6.0943 |
RMB | Rate For Transactions Occuring Throughout The Year | ||
Exchange rate | 6.1498 | 6.1717 |
2_PROPERTY_AND_EQUIPMENT_Detai
2. PROPERTY AND EQUIPMENT (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Gross Value of property plant and equipment | $488,298 | $480,840 |
Less: accumulated depreciation and amortization | 380,044 | 354,272 |
Total property and equipment, net | 108,254 | 126,568 |
Plant and machinery | ||
Gross Value of property plant and equipment | 272,214 | 266,931 |
Motor vehicles | ||
Gross Value of property plant and equipment | 45,105 | 45,239 |
Office equipment | ||
Gross Value of property plant and equipment | 34,523 | 31,824 |
Computer software | ||
Gross Value of property plant and equipment | 5,017 | 5,017 |
Office improvements | ||
Gross Value of property plant and equipment | $131,439 | $131,829 |
3_OTHER_PAYABLES_AND_ACCRUED_E2
3. OTHER PAYABLES AND ACCRUED EXPENSES (Details) (CNY) | Oct. 31, 2014 | Oct. 31, 2013 |
Payables and Accruals [Abstract] | ||
Other payables | 929 | 790 |
Accrued expenses | 104,842 | 58,447 |
Total | 105,771 | 59,237 |
4_RELATED_PARTY_TRANSACTIONS_D
4. RELATED PARTY TRANSACTIONS (Details Narrative) (CNY) | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | |
Imputed interest on advances from two directors | 20,079 | 22,936 | ||
Interest expenses on advances from stockholder and related parties | 181,393 | 137,502 | 181,393 | 137,502 |
Stockholder | ||||
Related party debt | 459,131 | 349,911 | 459,131 | 349,911 |
Two Related Parties | ||||
Related party debt | 2,988,738 | 2,266,916 | 2,988,738 | 2,266,916 |
Two Directors | ||||
Related party debt | 402,510 | 455,574 | 402,510 | 455,574 |
5_STOCKHOLDERS_EQUITY_Details_
5. STOCKHOLDERS EQUITY (Details Narrative) (CNY) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Consultancy fees | 0 | 214,667 |
General and administrative | Dr. John Lynch | ||
Share based compensation | 0 | 1,667 |
6_COMMITMENTS_AND_CONTINGENCIE2
6. COMMITMENTS AND CONTINGENCIES (Details) (CNY) | Oct. 31, 2014 |
Commitments And Contingencies Details | |
2015 | 8,151 |
Total | 8,151 |
7_INCOME_TAX_Details_Narrative
7. INCOME TAX (Details Narrative) (CNY) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Income Tax Details Narrative | ||
Net operating loss carry forwards | 1,512,723 | 1,423,563 |
Deferred tax asset valuation allowance | 514,326 | 484,011 |
Deferred tax asset | 0 | 0 |
Net change in the valuation allowance | 30,315 |
8_CONCENTRATIONS_AND_RISKS_Det
8. CONCENTRATIONS AND RISKS (Details Narrative) | Oct. 31, 2014 | Oct. 31, 2013 |
RMB | ||
Percent of assets located in country | 91.00% | 96.00% |
US | ||
Percent of assets located in country | 9.00% | 4.00% |
10_GOING_CONCERN_Details_Narra
10. GOING CONCERN (Details Narrative) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Going Concern Details Narrative | ||
Accumulated deficit | ($5,400,107) | ($4,572,351) |
Net loss | ($827,756) | ($890,343) |