Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 12, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Yew Bio-Pharm Group, Inc. | |
Entity Central Index Key | 0001548240 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 51,700,000 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash | $ 1,224,293 | $ 742,294 |
Accounts receivable | 2,180,937 | 7,692,613 |
Accounts receivable - related parties, net | 7,113,073 | 198,829 |
Inventories, net | 2,623,359 | 2,637,389 |
Prepaid expenses and other receivables | 88,215 | 51,140 |
VAT input credit | 367,083 | 349,096 |
Total Current Assets | 13,596,960 | 11,671,361 |
LONG-TERM ASSETS: | ||
Long-term inventories, net | 1,232,714 | 1,579,615 |
Property and equipment, net | 486,151 | 474,903 |
Intangible assets, net | 29,254 | 32,325 |
Land use rights and yew forest assets, net | 40,868,364 | 40,048,696 |
Long-term advance for yew forest assets | 114,227 | |
Operating lease right-of-use assets | 337,962 | 399,817 |
Total Long-term Assets | 43,068,672 | 42,535,356 |
Total Assets | 56,665,632 | 54,206,717 |
CURRENT LIABILITIES: | ||
Accounts payable for acquisition of yew forests and others | 678,519 | 920,459 |
Accounts payable for acquisition of yew forests and others - related parties | 103,363 | 16,629 |
Advance from customers | 182,534 | 50,071 |
Accrued expenses and other payables | 344,516 | 266,749 |
Due to related parties | 660,756 | 633,779 |
Short-term borrowings | 8,166,609 | 8,541,517 |
Operating lease liabilities, current | 61,773 | 52,104 |
Total Current Liabilities | 10,198,070 | 10,481,308 |
NONCURRENT LIABILITIES: | ||
Taxes payable, noncurrent | 973,647 | 1,088,194 |
Long-term deferred income | 1,137,236 | 892,375 |
Operating lease liabilities, noncurrent | 295,368 | 351,145 |
Total Noncurrent Liabilities | 2,406,251 | 2,331,714 |
Total Liabilities | 12,604,321 | 12,813,022 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Common Stock: $0.001 par value; 140,000,000 shares authorized; 51,700,000 shares issued and outstanding as of September 30, 2020 and December 31, 2019 | 51,700 | 51,700 |
Additional paid-in capital | 9,645,143 | 9,819,828 |
Retained earnings | 31,835,676 | 29,950,723 |
Statutory reserves | 3,762,288 | 3,762,288 |
Accumulated other comprehensive loss | (1,233,496) | (2,190,844) |
Total Shareholders' Equity | 44,061,311 | 41,393,695 |
Total Liabilities and Shareholders' Equity | $ 56,665,632 | $ 54,206,717 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares issued | 51,700,000 | 51,700,000 |
Common stock, shares outstanding | 51,700,000 | 51,700,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
REVENUES: | ||||
Revenues | $ 498,346 | $ (16,652) | $ 679,844 | $ 9,799,286 |
Revenues - related parties | 9,856,869 | 684,178 | 21,266,710 | 14,947,466 |
Total Revenues | 10,355,215 | 667,526 | 21,946,554 | 24,746,752 |
COST OF REVENUES: | ||||
Cost of revenues | 463,359 | (224,076) | 845,929 | 9,632,431 |
Cost of revenues - related parties | 8,366,498 | 932,810 | 17,847,629 | 13,350,942 |
Total Cost of Revenues | 8,829,857 | 708,734 | 18,693,558 | 22,983,373 |
GROSS PROFIT (LOSS) | 1,525,358 | (41,208) | 3,252,996 | 1,763,379 |
OPERATING EXPENSES: | ||||
Selling, general and administrative | 203,561 | 391,812 | 720,505 | 905,216 |
Bad debt (recovery) expense | (172,381) | (1,505,239) | 24,425 | (1,895,531) |
Total Operating Expenses, Net | 31,180 | (1,113,427) | 744,930 | (990,315) |
INCOME FROM OPERATIONS | 1,494,178 | 1,072,219 | 2,508,066 | 2,753,694 |
OTHER INCOME (EXPENSES): | ||||
Interest expense | (125,615) | (97,181) | (361,209) | (278,925) |
Other income (expense), net | 27,235 | (230,487) | 40,652 | 61,298 |
Foreign currency transaction (loss) gain | (372,672) | 398,149 | (275,404) | 471,585 |
Total Other (Expenses) Income, Net | (471,052) | 70,481 | (595,961) | 253,958 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,023,126 | 1,142,700 | 1,912,105 | 3,007,652 |
(PROVISION) BENEFIT FOR INCOME TAXES | (27,152) | 40,933 | (27,152) | (10,554) |
NET INCOME | 995,974 | 1,183,633 | 1,884,953 | 2,997,098 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Foreign currency translation adjustment | 1,671,103 | (1,651,817) | 957,348 | (1,603,089) |
COMPREHENSIVE INCOME (LOSS) | $ 2,667,077 | $ (468,184) | $ 2,842,301 | $ 1,394,009 |
NET INCOME PER COMMON SHARE: | ||||
Basic and diluted | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.06 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic and diluted | 51,700,000 | 51,700,000 | 51,700,000 | 51,781,044 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,884,953 | $ 2,997,098 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Bad debt expense (recovery) | 24,425 | (1,895,531) |
Depreciation and amortization | 40,362 | 44,959 |
Gain on disposal of PPE | (9,379) | |
Inventory reserves (recovery) | 338,912 | (39,586) |
Amortization of land use rights and yew forest assets and intangible assets | 2,045,199 | 1,448,738 |
Sale of yew forest assets as inventory | 8,769,387 | 4,788,466 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,602,258 | (7,982,832) |
Accounts receivable - related parties | (6,816,982) | 4,217,576 |
Prepaid expenses and other current assets | (20,159) | (34,384) |
Inventories | 94,847 | 5,880,686 |
VAT input credit | (9,332) | 929,492 |
Accounts payable | (55,418) | 121,911 |
Accounts payable - related parties | (16,746) | 1,268,312 |
Accrued expenses and other payables | 75,319 | (28,446) |
Advance from customer | 129,025 | |
Advance from customer-related parties | (7,957) | |
Due to related parties | 21,583 | 2,405 |
Taxes payable | (116,387) | (160,316) |
Deferred income | 219,371 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 12,210,618 | 11,541,212 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (152,531) | (18,733) |
Purchase of land use rights and yew forest assets | (10,934,655) | (14,005,315) |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (11,087,186) | (14,024,048) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term borrowings | 10,420,110 | 10,543,374 |
Repayments of short-term borrowings | (10,920,492) | (8,044,687) |
Proceeds from government loans | 79,920 | |
Proceeds from related parties | 2,457 | 30,000 |
Repayment to related parties | (10,000) | |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (418,005) | 2,518,687 |
EFFECT OF EXCHANGE RATE ON CASH | (223,428) | 70,223 |
NET INCREASE IN CASH | 481,999 | 106,074 |
CASH - Beginning of the year | 742,294 | 521,670 |
CASH - End of the year | 1,224,293 | 627,744 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest | 359,483 | 296,868 |
Income taxes | 27,152 | 162,390 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Operating expense paid by related party | 434 | 874 |
Payable for acquisition of yew forests | 307,674 | |
Payable for acquisition of yew forests-related parties | $ 354,317 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings / Accumulated Deficit [Member] | Statutory Reserve [Member] | Other Comprehensive Income / Loss [Member] | Total |
Balance, at Dec. 31, 2018 | $ 52,075 | $ 9,953,494 | $ 28,965,217 | $ 3,762,288 | $ (1,646,035) | $ 41,087,039 |
Balance, shares at Dec. 31, 2018 | 52,075,000 | |||||
Cancellation of common stocks | $ (375) | 375 | ||||
Cancellation of common stocks, shares | (375,000) | |||||
Net income | 2,997,098 | 2,997,098 | ||||
Purchase of yew forest assets from entity under common control with price over carrying amount | (431,588) | (431,588) | ||||
Foreign currency translation adjustment | (1,603,089) | (1,603,089) | ||||
Balance, at Sep. 30, 2019 | $ 51,700 | 9,522,281 | 31,962,315 | 3,762,288 | (3,249,124) | 42,049,460 |
Balance, shares at Sep. 30, 2019 | 51,700,000 | |||||
Balance, at Dec. 31, 2019 | $ 51,700 | 9,819,828 | 29,950,723 | 3,762,288 | (2,190,844) | 41,393,695 |
Balance, shares at Dec. 31, 2019 | 51,700,000 | |||||
Cancellation of common stocks | ||||||
Cancellation of common stocks, shares | ||||||
Net income | $ 1,884,953 | $ 1,884,953 | ||||
Purchase of yew forest assets from entity under common control with price over carrying amount | (174,685) | (174,685) | ||||
Foreign currency translation adjustment | 957,348 | 957,348 | ||||
Balance, at Sep. 30, 2020 | $ 51,700 | $ 9,645,143 | $ 31,835,676 | $ 3,762,288 | $ (1,233,496) | $ 44,061,311 |
Balance, shares at Sep. 30, 2020 | 51,700,000 |
Organization and Principal Acti
Organization and Principal Activities | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Organization and Principal Activities | NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated balance sheet as of December 31, 2019 was derived from the audited consolidated financial statements of Yew Bio-Pharm Group, Inc. (individually “YBP” and collectively with its subsidiaries and operating variable interest entity, the “Company”). The accompanying unaudited interim consolidated financial statements should be read in conjunction with the summary of significant accounting policies and notes to consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2019. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of September 30, 2020, and the results of operations and cash flows for the nine months ended September 30, 2020 and 2019, have been presented. The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company continually evaluates its estimates, including those related to bad debts, inventories, income taxes, and the valuation of equity transactions. The Company bases its estimates on historical experience and on various other assumptions that it believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Certain amounts from prior period financial statements have been reclassified to conform to the current period presentation. This reclassification has resulted in no changes to the Company’s financial position or results of operations presented. Details of the Company’s subsidiaries, variable interest entity (“VIE”) and VIE’s subsidiary are as follows: Name Domicile and Date of Incorporation Registered Capital Effective Ownership Principal Activities Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”) PRC US$100,000 100% Holding company Yew Bio-Pharm Holdings Limited (“Yew Bio-Pharm (HK)”) Hong Kong HK$10,000 100% Holding company of JSJ Harbin Yew Science and Technology Development Co., Ltd. (“HDS”) PRC RMB45,000,000 Contractual arrangements Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings; the manufacture of yew tree wood handicrafts; and the sales of candle, pine needle extract, yew essential oil soap, complex taxus cuspidate extract, and northeast yew extract Harbin Yew Food Co., Ltd (“HYF”) PRC RMB100,000 100% (1) Sales of wood ear mushroom drink MC Commerce Holding Inc. (“MC”) State of California, 100% (2) Sales of yew oil candles and yew oil soaps Harbin Jingchibai Bio-Technology Development Co., Limited (“JCB”) PRC RMB1,000,000 51% Sales of yew oil candles and yew oil soaps, no active operation since its incorporation (1) Wholly owned subsidiary of HDS (2) 51% owned by YBP and 49% owned by HDS |
Principles of Consolidation
Principles of Consolidation | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | NOTE 2 - PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the financial statements of YBP, its subsidiaries and operating VIE and its subsidiary in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated on consolidation. Certain reclassifications have been made to the consolidated financial statements for prior year to the current year’s presentation. Such reclassifications have no effect on net income as previously reported. Pursuant to a restructuring plan intended to ensure compliance with applicable PRC laws and regulations (the “Second Restructure”), on November 5, 2010, JSJ entered into a series of contractual arrangements (the “Contractual Arrangements”) with HDS and/or Zhiguo Wang, his wife Guifang Qi and Xingming Han (collectively with Mr. Wang and Madame Qi, the “HDS Shareholders”), as described below: ● Exclusive Business Cooperation Agreement ● Exclusive Option Agreement ● Equity Interest Pledge Agreement ● Power of Attorney To the extent that the Contractual Arrangements are enforceable under PRC law, as from time to time interpreted by relevant state agencies, they constitute the valid and binding obligations of each of the parties to each such agreement. The Company believes that HDS is considered a VIE under ASC 810 “Consolidation”, because the equity investors in HDS no longer have the characteristics of a controlling financial interest, and the Company, through JSJ, is the primary beneficiary of HDS and controls HDS’s operations. Accordingly, HDS has been consolidated as a deemed subsidiary into YBP as a reporting company under ASC 810. YBP has no direct or indirect legal or equity ownership interest in HDS. However, through the Contractual Arrangements, the stockholders of HDS have assigned all their rights as stockholders, including voting rights and disposition rights of their equity interests in HDS to JSJ, our indirect, wholly owned subsidiary. YBP is deemed to be the primary beneficiary of HDS and the financial statements of HDS are consolidated in the Company’s consolidated financial statements. On September 30, 2020 and December 31, 2019, the carrying amount and classification of the assets and liabilities in the Company’s balance sheets that relate to the Company’s variable interest in the VIE and VIE’s subsidiary are as follows: September 30, December 31, (Unaudited) Assets Cash $ 1,211,352 $ 688,863 Accounts receivable 2,167,353 7,692,600 Accounts receivable - related parties, net 7,113,073 198,829 Inventories (current and noncurrent), net 3,066,451 2,991,237 Prepaid expenses and other receivables 83,832 37,202 Advance to suppliers 114,227 - Property and equipment, net 479,390 466,025 Long-term investment in an affiliate 3,908,641 3,009,527 Land use rights and yew forest assets, net 40,868,364 40,048,696 Operating lease right of use assets 229,557 259,331 VAT input credit 367,083 349,096 Total assets of VIE and its subsidiary $ 59,609,323 $ 55,741,406 Liabilities Accounts Payable for acquisition of yew forests and others $ 603,606 $ 796,346 Accounts Payable for acquisition of yew forests and others - related parties 103,363 16,629 Advances from customers 182,534 50,071 Short-term borrowings 8,086,689 8,541,517 Accrued expenses and other payables 198,291 131,420 Operating lease liability, current and noncurrent 246,228 262,763 Long-term deferred income 1,137,235 892,375 Due to related parties and VIE holding companies 128,094 614,265 Total liabilities of VIE and its subsidiary $ 10,686,040 $ 11,305,386 Basis of Presentation The consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement of the financial statements have been included. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. These consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2019, which were included in the Company’s 2019 Annual Report on Form 10-K (“2019 Form 10-K”). The accompanying consolidated balance sheet as of December 31, 2019, has been derived from the Company’s audited consolidated financial statements as of that date. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued new leasing guidance (“Topic 842”) that replaced the existing lease guidance (“Topic 840”). Topic 842 established a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and lease liability on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. This guidance also expanded the requirements for lessees to record leases embedded in other arrangements and the required quantitative and qualitative disclosures surrounding leases. The Company adopted Topic 842 on its effective date of January 1, 2019 using a modified retrospective transition approach; as such, Topic 842 will not be applied to periods prior to adoption and the adoption had no impact on the Company’s previously reported results. The Company elected the package of practical expedients permitted under the transition guidance within Topic 842, which allowed the Company to carry forward its identification of contracts that are or contain leases, its historical lease classification and its accounting for initial direct costs for existing leases. The impact of adopting Topic 842 was not material to the Company’s result of operations or cash flows for the three and nine months ended September 30, 2020 and 2019. The Company recognized operating lease liabilities of approximately $350,000 upon adoption, with corresponding ROU assets on its balance sheet as of January 1, 2019. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment”, which eliminates the requirement to calculate the implied fair value of goodwill, but rather requires an entity to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company adopted ASU No. 2017-04 on January 01, 2020 and the adoption did not have an impact on the Company’s interim financial position and results of operations. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses”. The standard, including subsequently issued amendments (ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10 and ASU 2019-11), requires a financial asset measured at amortized cost basis, such as accounts receivable and certain other financial assets, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the impact of this guidance on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The standard provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions in which the reference LIBOR or another reference rate are expected to be discontinued as a result of the Reference Rate Reform. The standard is effective for all entities. The standard may be adopted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. The Company is currently evaluating the effects of the standard on our consolidated financial statements and related disclosures. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NOTE 3 - REVENUE RECOGNITION The Company accounts for revenue arising from contracts and customers in accordance with Accounting Standards Update (ASU or Update) No. 2014-09, Revenue from Contracts with Customers (“ASC 606”), which was adopted on January 1, 2018 using the full retrospective method. The adoption of ASC 606 did not impact the Company’s previously reported financial statements in any prior period nor did it result in a cumulative effect adjustment to retained earnings. Under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that Company will collect the consideration it is entitled to in exchange for the goods it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods promised within each contract and determines those that are performance obligations and assesses whether each promised good is distinct. The Company then recognizes as revenue the amount of the transaction price, which is allocated to the respective performance obligation, when the performance obligation is satisfied. Generally, the Company’s performance obligations are satisfied when the customers take possession of the products, which normally occurs upon shipment or delivery depending on the terms of the contracts. In general, the Company’s products within its segments are aligned according to the nature and economic characteristics of its products and provide meaningful disaggregation of each business segment’s results of operations. Disaggregation of revenue by business segment are included in Note 12 - SEGMENT INFORMATION. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | NOTE 4 – INVENTORIES, NET Inventories consisted of raw materials, finished goods including handicrafts, yew essential oil soap, complex cuspidate extract, composite northeast yew extract, yew candles and pine needle extracts, yew seedlings and other trees, which consist of larix, spruce and poplar trees. The Company classifies its inventories based on its historical and anticipated levels of sales; any inventory in excess of its normal operating cycle of one year is classified as long-term on its consolidated balance sheets. As of September 30, 2020, and December 31, 2019 inventories consisted of the following: September 30, 2020 December 31, 2019 Current Long-term Total Current Long-term Total Raw materials $ 17,169 $ 93,272 $ 110,441 $ 16,761 $ 91,056 $ 107,817 Finished goods 2,752,157 2,612,259 5,364,416 2,770,352 2,613,724 5,384,076 Total 2,769,326 2,705,531 5,474,857 2,787,113 2,704,780 5,491,893 Inventory reserves (145,967 ) (1,472,817 ) (1,618,784 ) (149,724 ) (1,125,165 ) (1,274,889 ) Inventories, net $ 2,623,359 $ 1,232,714 $ 3,856,073 $ 2,637,389 $ 1,579,615 $ 4,217,004 Inventories as of September 30, 2020 and December 31, 2019 consisted of inventories purchased from related parties are as follows: September 30, December 31, 2020 2019 Inventories, net $ 47,029 $ - Inventories - related parties, net 2,576,330 2,637,389 Total $ 2,623,359 $ 2,637,389 September 30, December 31, 2020 2019 Long-term inventories, net $ 411,232 $ 395,032 Long-term inventories - related parties, net 821,482 1,184,583 Total $ 1,232,714 $ 1,579,615 |
Taxes
Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Taxes | NOTE 5 - TAXES (a) Federal Income Tax and Enterprise Income Taxes The table below summarizes the difference between the U.S. statutory federal tax rate and the Company’s effective tax rate for the Nine Months Ended September 30, 2020 and 2019: Nine Months Ended September 30, 2020 2019 U.S. federal income tax rate 21.00 % 21.00 % State income tax rate 8.84 % 8.84 % Tax rate difference 5.57 % 4.51 % PRC tax exemption and reduction (45.64 )% (38.15 )% GILTI - % - % Valuation allowance 11.69 % 3.80 % Others (0.04 )% 0.35 % Effective tax rate 1.42 % 0.35 % The U.S. Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act among other changes, reduces the U.S. federal corporate tax rate from 35% to 21%. The Company recognized provisional tax impacts related to the revaluation of deferred tax assets and liabilities and corresponding valuation allowances in its consolidated financial statements for the year ended December 31, 2018. Accordingly, the Company recognized a one-time transition tax of $1,431,835 during 2018 that represented management’s estimate of the amount of U.S. corporate income tax based on the deemed repatriation to the United States of the Company’s share of previously deferred earnings of certain non-U.S. subsidiaries of the Company mandated by the U.S. Tax Reform. The Company elected to pay the one-time transition tax over eight years commencing in 2018. The actual impact of the U.S. Tax Reform on the Company may differ from management’s estimates, and management may update its judgments based on future regulations or guidance issued or changes in the interpretations taken that would adjust the provisional amounts recorded. As of September 30, 2020, and December 31, 2019, the Company had current income tax payable of $114,600 and $116,440 and noncurrent income tax payable of $973,647 and $1,088,194, respectively. In addition, the 2017 Tax Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income (“GILTI”)) earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFCs’ U.S. shareholder income. GILTI is the excess of the shareholder’s net CFC tested income over the net deemed tangible income return, which is currently defined as the excess of (1) 10 percent of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. For the Nine Months Ended September 30, 2020 and 2019, the GILTI tax expense was nil. As of September 30, 2020, and December 31, 2019, the Company had no GILTI tax payable outstanding. The Company’s subsidiary, JSJ, and VIE and its subsidiary, HDS and HYF, incorporated in the PRC, are subject to PRC’s Enterprise Income Tax. Pursuant to the PRC Income Tax Laws, Enterprise Income Taxes (“EIT”) is generally imposed at 25%. However, HDS has been named as a leading enterprise in the agricultural industry and awarded with a tax exemption through December 31, 2058 with an exception of sales of handicrafts, yew candle, pine needle extracts and yew essential oil soap which are not within the scope of agricultural area. (b) Value Added Taxes (“VAT”) The applicable VAT tax rate is 13% for agricultural products, 17% and 16% for handicrafts, yew candles complex taxus cuspidate extract, composite northeast yew extract and pine needle extracts sold in the PRC prior to and after May 1, 2018, respectively. In accordance with VAT regulations in the PRC, the Company is exempt from paying VAT on its yew raw materials and yew trees sales as an agricultural corps cultivating company. The company’s sales of yew candles, handmade essence oil soaps, and pine needle extracts and export products are under VAT tax-exempt treaty and thus are eligible for return of VAT input. VAT payable in the PRC is charged on an aggregated basis at the applicable rate on the full price collected for the goods sold or taxable services provided and less any deductible VAT already paid by the taxpayer on purchases of goods in the same fiscal year. |
Short-term Borrowings
Short-term Borrowings | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings | NOTE 6 - SHORT-TERM BORROWINGS On December 22, 2016, HDS entered into a credit agreement with China Everbright Bank (“CEB”) which agreed to provide a line of credit of $2,800,000 (approximately RMB20 million) to the Company for the period of three years. On February 25, 2020, the Company entered into another credit agreement with CEB, pursuant to which CEB provides another line of credit of RMB20 million (approximately $2,820,000) to the Company for the period of three years. These loans carry interest rates ranging from 4.30% to 5.65% per annum and the interests are payable when the loans are due. The loans with CEB are secured by properties and land use rights of Yew Pharmaceutical. In addition, Zhiguo Wang, Madame Qi, Yew Pharmaceutical, and ZTC provided personal guarantees to the loans. HDS paid two $1,400,000 back in March and April 2020, totaling $2,800,000 under the initial line of credit, through which the initial line of credit was paid off in its entirety. As of September 30, 2020, and December 31, 2019, the Company held $2,205,461 (RMB15 million) and $2,800,000 loans from CEB, respectively. During the three and nine months ended September 30, 2020, the Company recorded $63,247 and $134,041 interest expense in connection with the CEB loans, respectively. On August, 2018, HDS entered into two loan agreements with Bank of Yingkou Harbin Branch (“Yingkou Bank”), pursuant to which HDS obtained two bank loan in the amounts of RMB15 million (approximately $2,153,000) and RMB5 million (approximately $718,000) with one year term, respectively. The loans carry 5.4375% interest rate annum and is payable monthly. Heilongjiang Zishan Technology Co., Ltd. (“ZTC”), a related party controlled by Zhiguo Wang and his wife Madame Qi, collateralized its buildings and land use right with Yingkou Bank to secure the loan. In addition, HEFS, HBP, Yew Pharmaceutical, and ZTC provided guarantees to the loans. HDS paid off the two loans in their entireties in July and August 2019. On May 13, 2019, HDS entered into a credit agreement with Postal Saving Bank of China which agreed to provide a line of credit of RMB20 million (approximately $2,830,000) to the Company for the period of ten years. These loans have interest rate of 5.22% per annum payable monthly. Zhiguo Wang and his wife Madame Qi, pledged buildings and land use rights they owned with Postal Saving Bank of China to secure the loans. In addition, Zhiguo Wang and his wife Madame Qi, Yicheng Wang and Lei Zhang provided personal guarantees to the loans. As of September 30, 2020, and December 31, 2019, $2,940,614 (RMB20 million) and $2,870,758 (RMB11.9 million) were outstanding under the line of credit, respectively. HDS recorded $42,264 and $112,753 interest expense associated with the loans for the three and nine months ended September 30, 2020, respectively. On July 26, 2019, HDS entered into a loan agreement with Bank of Yingkou Harbin Branch (“Yingkou Bank”), pursuant to which HDS obtained a bank loan in the amount of RMB15 million (approximately $2,153,000), payable on July 25, 2020. The loan carries an interest rate of 6.525% per annum and is payable monthly. Heilongjiang Zishan Technology Co., Ltd. (“ZTC”), a related party controlled by Zhiguo Wang and his wife Madame Qi, collateralized its buildings and land use right with Yingkou Bank to secure the loan. In addition, HEFS, HBP, Yew Pharmaceutical, and ZTC provided guarantees to the loan. HDS renewed the RMB15 million (approximately $2,200,000) bank loan with Yingkou Bank on July 24, 2020 with the expiration date on July 23, 2021. As of September 30, 2020, and December 31, 2019, $2,205,461 (RMB 15 million) and $2,153,069 (RMB 15 million) were outstanding under the loan agreement, respectively. HDS recorded $36,943 and $107,676 interest expense associated with the loans for the three and nine months ended September 30, 2020, respectively. On August 20, 2019, HDS entered into another loan agreement with Yingkou Bank, pursuant to which HDS obtained a bank loan in the amount of RMB5 million (approximately $718,000), payable on August 19, 2020. The loan carries an interest rate of 6.525% per annum and is payable monthly. ZTC, a related party controlled by Zhiguo Wang and his wife Madame Qi, collateralized its buildings and land use right with Yingkou Bank to secure the loan. In addition, HEFS, HBP, Yew Pharmaceutical, and ZTC provided guarantees to the loan. HDS renewed the RMB5 million (approximately $735,000) for another year with maturity date on July 23, 2021. As of September 30, 2020, and December 31, 2019, $735,154 (RMB5 million) and $717,690 (RMB5 million) were outstanding under the loan agreement, respectively. HDS recorded $12,314 and $35,892 interest expense associated with the loans for the three and nine months ended September 30, 2020, respectively. On January 30, 2020, Yicheng Wang entered into a loan agreement with the Company, pursuant to which the Company lent RMB600,000 to Yicheng Wang for the period from January 30, 2020 to January 29, 2021 at the interest rate of 5.00%. On February 24 and 25, 2020, Yicheng Wang paid the entire loan amount off. On May 1, 2020, the Company got a Promissory Note (the “Note”) in the amount of $70,920 approved from the Paycheck Protection Program (the “PPP Loan”) through Bank of America (the “Lender”) under the CARES Act excused by government due to the COVID-19 crisis. The interest rate on this Note is a fixed rate of 1.00% per annum. The loan will be due in one payment of all outstanding principal plus all accrued unpaid interest in two years after the date of this Note (“Maturity Date”). According to SBA’s PPP description, the PPP loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities. Loan payments will also be deferred for six months. No collateral or personal guarantees are required. The Company received $70,920 PPP Loan on May 4, 2020, which was outstanding as of September 30, 2020. On July 2020, the Company received advances of the SBA Economic Injury Disaster Loans (“EIDL”) totaling $9,000 under the CARES Act. The advances will reduce the amount that will ultimately be forgiven under the PPP program. For the three months ended September 30, 2020 and 2019, interest expense was approximately $126,000 and $97,000, respectively. For the nine months Ended September 30, 2020 and 2019, interest expense was approximately $361,000 and $279,000, respectively. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 7 - STOCKHOLDERS’ EQUITY On February 28, 2019, the Company entered into an agreement with Chineseinvestors.com, Inc., pursuant to which the Company cancelled the common shares of 375,000 issued to Chineseinvestors.com, Inc. Stock option activities for the nine months ended September 30, 2020 and 2019 were summarized in the following table. Nine Months Ended September 30, Nine Months Ended September 30, Number of Weighted Number of Weighted Balance at beginning of period 7,738,737 $ 0.22 7,738,737 $ 0.22 Issued - - - - Exercised - - - - Expired - - - - Forfeited - - - - Balance at end of period 7,738,737 $ 0.22 7,738,737 $ 0.22 Option exercisable at end of period 7,738,737 $ 0.22 7,738,737 $ 0.22 The following table summarizes the shares of the Company’s common stock issuable upon exercise of options outstanding on September 30, 2020: Stock Options Outstanding Stock Options Exercisable Range of Exercise Number Outstanding at September 30, 2020 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Number Exercisable at September 30, 2020 Weighted Average Exercise $ 0.22-0.25 7,738,737 1.25 $ 0.22 7,738,737 $ 0.22 The Company’s outstanding stock options and exercisable stock options had intrinsic value in the amount of $Nil, based upon the Company’s closing stock price of $0.11 as of September 30, 2020. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 8 - EARNINGS PER SHARE Under the provisions of ASC 260, “Earnings Per Share”, basic income per common share is computed by dividing net income attributable to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of the company, subject to anti-dilution limitations. The following table presents a reconciliation of basic and diluted net income per share for the three and nine months ended September 30, 2020 and 2019: For the Three Months Ended September 30, For the Nine Months Ended 2020 2019 2020 2019 Net income available to common stockholders for basic and diluted net income per share of common stock $ 995,974 $ 1,183,633 $ 1,884,953 $ 2,997,098 Weighted average common stock outstanding - basic 51,700,000 51,700,000 51,700,000 51,781,044 Effect of dilutive securities: Non-vested restricted common stock - - - - Stock options issued to directors/officers/employees - - - - Weighted average common stock outstanding - diluted 51,700,000 51,700,000 51,700,000 51,781,044 Net income per common share – basic $ 0.02 $ 0.02 $ 0.04 $ 0.06 Net income per common share - diluted $ 0.02 $ 0.02 $ 0.04 $ 0.06 For the three months ended September 30, 2020 and 2019, and for the nine months ended September 30, 2020 and 2019, outstanding options of 7,738,737 were excluded from the computation of diluted net income per share as the impact of including those option shares would be anti-dilutive. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | NOTE 9 - LEASES The Company leases office space from third parties and related parties. Leases is classified as operating at inception of the lease. Operating leases result in the recognition of ROU assets and lease liabilities on the balance sheet. ROU assets represent the Company’s right to use the leased asset for the lease term and lease liabilities represent the obligation to make lease payments. The liability is calculated as the present value of the remaining minimum rental payments for existing operating leases using either the rate implicit in the lease or, if none exists, the Company’s incremental borrowing rate. The Company uses incremental borrowing rate at 6.44% annum. Lease expense for these leases is recognized on a straight-line basis over the lease term. The components of lease expense consist of the following: Classification Nine Months Ended Nine Months Ended Operating lease cost Selling, general and administrative expense $ 54,550 $ 113,476 Net lease cost $ 54,550 $ 113,476 Balance sheet information related to leases consists of the following: Classification September 30, September 30, Assets Operating lease ROU assets Right-of-use assets $ 337,962 $ 218,195 Total leased assets $ 337,962 $ 218,195 Liabilities Current Operating Current maturities of operating lease liabilities $ 61,773 $ 24,389 Non-current Operating Operating lease liabilities 295,368 247,147 Total lease liabilities $ 357,141 $ 271,536 Weighted average remaining lease term Operating leases 10.7 years 5.9 years Weighted average discount rate Operating leases 6.44 % 6.44 % Cash flow information related to leases consists of the following: Nine Months Ended Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 60,264 $ 58,004 The minimum future lease payments as of September 30, 2020 are as follows: Years Ending December 31, Operating The remaining of 2020 $ 14,064 2021 80,452 2022 80,761 2023 34,028 2024 29,766 2025 26,703 Thereafter 214,966 Total lease payments 480,740 Less: Interest (123,599 ) Present value of lease liabilities $ 356,105 |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Major Customers | 9 Months Ended |
Sep. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk and Major Customers | NOTE 10 - CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS Customers For the nine months ended September 30, 2020 and 2019, the major customers whose sales and accounts receivable accounted for 10% or more of the Company’s total revenue and accounts receivable, respectively, were as follows: For the Nine Months Ended September 30, Customer 2020 2019 A (Yew Pharmaceutical, a related party) 63.5 % - % B (Hong Kong YIDA Commerce Co., Limited, a related party) - % 22 % C (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) * % 78 % D (DMSU, a related party) 11.8 % - % E (LIFEFORFUN LIMITED, a related party) 21.0 % - % * Less than 10% Accounts receivable as of Customer September 30, December 31, A (Yew Pharmaceutical, a related party) 25.9 % - % B (Hong Kong YIDA Commerce Co., Limited, a related party) - % 2.5 % C (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) 22.9 % 97.5 % E (LIFEFORFUN LIMITED, a related party) 49.6 % - Suppliers For the nine months ended September 30, 2020 and 2019, major suppliers accounting for 10% or more of the Company’s total purchase and major suppliers whose accounts payable accounted for 10% or more of the Company’s total accounts payable were as follows: For the Nine Months Ended September 30, Supplier 2020 2019 A (Yew Pharmaceutical, a related party) 43.5 % 44 % F (Haixiang Liu) * % 10 % * Less than 10% Accounts payable as of Supplier September 30, December 31, G (Heilongjiang Weishahe Agriculture Technology Co., Ltd) 72.1 % 85.3 % On September 30, 2020 and December 31, 2019, the Company’s cash balances by geographic area were as follows: September 30, December 31, Country United States $ 8,119 $ 46,855 China 1,216,174 695,439 Total Cash $ 1,224,293 $ 742,294 In China, a depositor has up to RMB500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”). In the United States, the standard insurance amount is $250,000 per depositor in a bank insured by the Federal Deposit Insurance Corporation (“FDIC”). As of September 30, 2020, and December 31, 2019, approximately $303,000 and $216,000 of the Company’s cash held by financial institutions was insured, and the remaining balance of approximately $921,000 and $526,000 was not insured, respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 11 - RELATED PARTY TRANSACTIONS In addition to several of the Company’s officers and directors, the Company conducted transactions with the following related parties: Company Ownership Heilongjiang Zishan Technology Co., Ltd. (“ZTC”) 51% owned by Heilongjiang Hongdoushan Ecology Forest Co., Ltd., 34% owned by Zhiguo Wang, Chairman and Chief Executive Officer, 11% owned by Guifang Qi, the wife of Mr. Wang and director of the Company, and 4% owned by third parties. Heilongjiang Yew Pharmaceutical Co., Ltd. (“Yew Pharmaceutical”) 95% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 5% owned by Madame Qi. Shanghai Kairun Bio-Pharmaceutical Co., Ltd. (“Kairun”) 60% owned by Heilongjiang Zishan Technology Co., Ltd., 20% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 20% owned by Mr. Wang. Heilongjiang Hongdoushan Ecology Forest Co., Ltd. (“HEFS”) 63% owned by Mr. Wang, 34% owned by Madame Qi, and 3% owned by third parties. Hongdoushan Bio-Pharmaceutical Co., Ltd. (“HBP”) 30% owned by Mr. Wang, 19% owned by Madame Qi and 51% owned by HEFS Heilongjiang Pingshan Hongdoushan Development Co., Ltd. (“HDS Development”) 80% owned by HEFS and 20% owned by Kairun Wuchang City Xinlin Forestry Co., Ltd. (Xinlin) 98% owned by ZTC and 2% owned by HEFS Wonder Genesis Global Ltd. Jinguo Wang is the Company’s director. DMSU Digital Technology Limited(“DMSU”) Significantly influenced by the Company Hong Kong YIDA Commerce Co., Limited(“YIDA”) Significantly influenced by the Company LIFEFORFUN LIMITED Significantly influenced by the Company Jinguo Wang Management of HDS and Legal person of Xinlin Zhiguo Wang Principal shareholder and CEO of the Company Guifang Qi Principal shareholder and the wife of CEO Cai Wang Employee of the Company Weihong Zhang Employee of the Company Xue Wang Employee of the Company Chunping Wang Employee of the Company Jimin Lu Employee of the Company Transactions with Yew Pharmaceutical On January 9, 2010, the Company entered into a Cooperation and Development Agreement (the “Development Agreement”) with Yew Pharmaceutical. Pursuant to the Development Agreement, for a period of ten years expiring on January 9, 2020, the Company shall supply cultivated yew raw materials to Yew Pharmaceutical that will be used by Yew Pharmaceutical to make traditional Chinese medicines and other pharmaceutical products, at price of RMB 1,000,000 (approximately $146,000) per metric ton. In addition, the Company entered into a series of wood ear mushroom selling agreements with Yew Pharmaceuticals, pursuant to which the Company sells wood ear mushroom collected from local peasants to Yew Pharmaceuticals for manufacturing of wood ear mushroom products. Furthermore, the Company entered into a series of yew candles, yew essential oil soaps, complex taxus cuspidate extract, composite northeast yew extract and pine needle extracts purchase agreements with Yew Pharmaceuticals, pursuant to which the Company purchases yew candles and pine needle extracts as finished goods and then sells to third party and related party. The Company has not renewed the Development Agreement with Yew Pharmaceutical yet. We currently enter into individual agreement for each single transaction. For the nine months ended September 30, 2020 and 2019, total revenues from Yew Pharmaceutical under the above agreement amounted to $13,927,843 and $7,755,545, and the corresponding cost of revenues amounted to $12,458,699 and $6,159,705, respectively. On September 30, 2020 and December 31, 2019, the Company had $2,402,152 and $Nil accounts receivable For the nine months ended September 30, 2020 and 2019, the Company purchased various products from Yew Pharmaceutical totaling $7,961,493 and $11,018,135, respectively, such as pine needle extracts, composite northeast yew extract and mixed essential oil and etc. Transactions with DMSU On February 10, 2020, the Company entered a payment schedule agreement with DMSU regarding the outstanding accounts receivable under 2018 and 2020 sales contracts. Pursuant to the payment schedule, DMSU agreed to make payments in 2020 totaling of $1,000,000 out of total $5,304,000 receivable balance under 2018 sales contracts and the remaining will be paid within next three years. Regarding the 2020 sales contracts entered, DMSU will arrange payments of the entire transaction within six months after goods are delivered. For the nine months ended September 30, 2020, total revenues from DMSU amounted to $2,592,000. The company collected approximately $2,753,000 from DMSU during the third quarter of 2020, of which $161,000 was recorded as recovery of accounts receivable due from DMGU previously written off under 2018 sales contracts. For the nine months ended September 30, 2019, there was $Nil sales transaction the Company conducted with DMSU. During the nine months ended September 30, 2019, the Company recovered approximately $1,034,000 of accounts receivable due from DMSU previously written off. The recovered amount was recorded as bad debt recovery Transactions with ZTC During the nine months ended September 30, 2020 and 2019, HDS purchased yew forest assets from ZTC in the amount of $1,055,173 and $2,135,919, respectively. Since the purchases were conducted between entities under common control, the Company recorded the assets received at the carrying costs of $933,680 and $1,730,920 by ZTC, respectively. The differences of $121,493 and $404,999 between the actual purchase amounts and carrying costs were recorded as a deduction of additional paid-in capital. On September 30, 2020 and December 31, 2019, the Company had $Nil balance payable to ZTC. As of September 30, 2020, HDS also prepaid ZTC $102,922 pursuant to a purchase intention contract for mask machines entered on September 12, 2020. Transactions with Xinlin During the nine months ended September 30, 2020 and 2019, HDS purchased yew forest assets from Xinlin in the amount of $462,541 and $ 149,378 Transactions with YIDA For the nine months ended September 30, 2020 and 2019, total revenues from YIDA amounted to $Nil and $7,236,000. On September 30, 2020 and December 31, 2019, the Company had $Nil and $193,000 accounts receivable from YIDA, respectively. Transactions with Lifeforfun Limited For the nine months ended September 30, 2020 and 2019, total revenues from Lifeforfun Limited amounted to $4,608,000 and $Nil. On September 30, 2020 and December 31, 2019, the Company had $4,608,000 and $Nil accounts receivable, respectively. Transactions with Jinguo Wang During the nine months ended September 30, 2020 and 2019, HDS purchased yew forest assets from Jinguo Wang in the amount of $1,121,663 and $1,085,255, respectively. On September 30, 2020 and December 31, 2019, payable to Jinguo Wang for purchase of yew forest assets were $Nil. Transactions with Weihong Zhang During the nine months ended September 30, 2020 and 2019, HDS purchased yew forest assets from Weihong Zhang in the amount of $28,909 and $794,252, respectively. On September 30, 2020 and December 31, 2019, payable to Weihong Zhang for purchase of yew forest assets amounted to $29,406 and $Nil, respectively, included in payable for acquisition of yew forests in the accompanying consolidated balance sheets. Transactions with Chunping Wang During the nine months ended September 30, 2020 and 2019, HDS purchased yew forest assets from Chunping Wang in the amount of $868,711 and $1,285,377, respectively. On September 30, 2020 and December 31, 2019, payable to Chunping Wang for purchase of yew forest assets were $Nil. Transactions with Xue Wang During the nine months ended September 30, 2020 and 2019, HDS purchased yew forest assets from Xue Wang in the amount of $750,184 and $158,093 respectively. On September 30, 2020 and December 31, 2019, payable to Xue Wang for purchase of yew forest assets were $Nil. Transactions with Cai Wang During the nine months ended September 30, 2020 and 2019, HDS purchased yew forest assets from Cai Wang in the amount of $390,269 and $ 81,611 Operating Leases On March 25, 2005, the Company entered into an Agreement for the Lease of Seedling Land with ZTC (the “ZTC Lease”). Pursuant to the ZTC Lease, the Company leased 361 mu of land from ZTC for a period of 30 years, expiring on March 24, 2035. Annual payments under the ZTC Lease are RMB 162,450 (approximately $24,000). The payment for the first five years of the ZTC Lease was due prior to December 31, 2010 and beginning in 2011, the Company is required to make full payment for the land use rights in advance for each subsequent five-year period. For the nine months ended September 30, 2020 and 2019, rent expense related to the ZTC Lease approximately amounted to $18,000 and $18,000, respectively. On September 30, 2020 unpaid rent to ZTC amounted to approximately $12,000, which was included in due to related parties in the accompanying consolidated balance sheets. On December 31, 2019, prepaid rent to ZTC amounted to approximately $5,800, which was included in prepaid expenses-related parties in the accompanying consolidated balance sheets. On March 2002, January 2010 and July 2015, the Company entered three office lease agreements with HDS Development and Mr. Wang in the lease terms of 23 years, 3 years and 15 years. The total annual payments of the three office leases are RMB 50,000 (approximately $7,000). For the nine months ended September 30, 2020 and 2019, the total rent expense related to the three office leases approximately amounted to $5,400 and $5,300 respectively. As of September 30, 2020, and December 31, 2019, the unpaid rent was approximately $5,500 and $7,000, respectively, which were included in due to related parties in the accompanying consolidated balance sheets. On January 1, 2015, HYF leases from HBP a warehouse, with an area of 225 square meters, and a workshop, with an area of 50 square meters, both of which are located at No.1 Zisan Road, Shangzhi economic development district, Shangzhi City, Heilongjiang Province, in exchange for no consideration for the period from January 1, 2015 to December 31, 2020. The Company leased an apartment in the Nangang district (the “Jixing Lease”) in Harbin from Ms. Qi on October 1, 2016. The initial lease term of Jixing Lease is one year and renewed twice currently with the expiration date on September 30, 2019. For the nine months ended September 30, 2020 and 2019, rent expense related to the Jixing Lease amounted $Nil and $1,100, respectively. Due to Related Parties The following summarized the Company’s due to related parties as of September 30, 2020 and December 31, 2019: September 30, December 31, Zhiguo Wang and Guifang Qi $ 553,579 $ 530,621 HBP 92,478 103,158 Others 14,699 - Total $ 660,756 $ 633,779 * *: The amounts due to related parties bear no interest and are payable on demand. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 12 - SEGMENT INFORMATION ASC 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company managed and reviewed its business as two operating segments starting from year 2018. The business of HDS, JSJ, HYF and JCB in PRC was managed and reviewed as PRC segment. The business of YBP, Yew Bio-Pharm (HK), and MC was managed and reviewed as USA segment. PRC and USA segments retain all of the reported consolidated amounts. The geographical distributions of the Company’s financial information for the nine months ended September 30, 2020 and 2019 were as follows: For the Nine Months Ended September 30, Geographic Areas 2020 2019 Revenue PRC $ 21,908,026 $ 24,564,383 USA 93,548 205,694 Elimination Adjustment (55,020 ) (23,325 ) Total Revenue $ 21,946,554 $ 24,746,752 Income (Loss) from operations PRC $ 3,250,334 $ 3,178,243 USA (742,268 ) (424,549 ) Total Income from operations $ 2,508,066 $ 2,753,694 Net income (loss) PRC $ 2,625,091 $ 3,361,756 USA (740,138 ) (364,658 ) Total net income $ 1,884,953 $ 2,997,098 The geographical distributions of the Company’s financial information for the three months ended September 30, 2020 and 2019 were as follows: For the Three Months Ended September 30, Geographic Areas 2020 2019 Revenue PRC $ 10,338,530 $ 604,204 USA 16,685 86,647 Elimination Adjustment - (23,325 ) Total Revenue $ 10,355,215 $ 667,526 Income (Loss) from operations PRC $ 1,587,209 $ 1,067,778 USA (93,031 ) 4,441 Total Income from operations $ 1,494,178 $ 1,072,219 Net income (loss) PRC $ 1,088,255 $ 1,138,524 USA (92,281 ) 45,109 Total net income $ 995,974 $ 1,183,633 The geographical distribution of the Company’s financial information as of September 30, 2020 and December 31, 2019 were as follows: As of As of Geographic Areas 2020 2019 Long-term assets PRC $ 46,012,533 $ 44,547,842 USA 964,780 1,363,586 Elimination adjustment (3,908,641 ) (3,376,072 ) Total long-term assets $ 43,068,672 $ 42,535,356 Reportable assets PRC $ 58,877,433 $ 55,407,391 USA 1,542,675 2,146,518 Elimination adjustment (3,754,476 ) (3,347,192 ) Total reportable assets $ 56,665,632 $ 54,206,717 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 13 - COMMITMENTS AND CONTINGENCIES Operating Lease See future minimum lease payments in Note 9. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 14 - SUBSEQUENT EVENTS The Company has evaluated all subsequent events through the date these consolidated financial statements were issued and determine that there were no subsequent events or transactions that require recognition or disclosures in the consolidated financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Company's Subsidiaries and Variable Interest Entities | Details of the Company’s subsidiaries, variable interest entity (“VIE”) and VIE’s subsidiary are as follows: Name Domicile and Date of Incorporation Registered Capital Effective Ownership Principal Activities Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”) PRC US$100,000 100% Holding company Yew Bio-Pharm Holdings Limited (“Yew Bio-Pharm (HK)”) Hong Kong HK$10,000 100% Holding company of JSJ Harbin Yew Science and Technology Development Co., Ltd. (“HDS”) PRC RMB45,000,000 Contractual arrangements Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings; the manufacture of yew tree wood handicrafts; and the sales of candle, pine needle extract, yew essential oil soap, complex taxus cuspidate extract, and northeast yew extract Harbin Yew Food Co., Ltd (“HYF”) PRC RMB100,000 100% (1) Sales of wood ear mushroom drink MC Commerce Holding Inc. (“MC”) State of California, 100% (2) Sales of yew oil candles and yew oil soaps Harbin Jingchibai Bio-Technology Development Co., Limited (“JCB”) PRC RMB1,000,000 51% Sales of yew oil candles and yew oil soaps, no active operation since its incorporation (1) Wholly owned subsidiary of HDS (2) 51% owned by YBP and 49% owned by HDS |
Principles of Consolidation (Ta
Principles of Consolidation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Carrying Amount of Assets and Liabilities Related to Variable Interest Entity | On September 30, 2020 and December 31, 2019, the carrying amount and classification of the assets and liabilities in the Company’s balance sheets that relate to the Company’s variable interest in the VIE and VIE’s subsidiary are as follows: September 30, December 31, (Unaudited) Assets Cash $ 1,211,352 $ 688,863 Accounts receivable 2,167,353 7,692,600 Accounts receivable - related parties, net 7,113,073 198,829 Inventories (current and noncurrent), net 3,066,451 2,991,237 Prepaid expenses and other receivables 83,832 37,202 Advance to suppliers 114,227 - Property and equipment, net 479,390 466,025 Long-term investment in an affiliate 3,908,641 3,009,527 Land use rights and yew forest assets, net 40,868,364 40,048,696 Operating lease right of use assets 229,557 259,331 VAT input credit 367,083 349,096 Total assets of VIE and its subsidiary $ 59,609,323 $ 55,741,406 Liabilities Accounts Payable for acquisition of yew forests and others $ 603,606 $ 796,346 Accounts Payable for acquisition of yew forests and others - related parties 103,363 16,629 Advances from customers 182,534 50,071 Short-term borrowings 8,086,689 8,541,517 Accrued expenses and other payables 198,291 131,420 Operating lease liability, current and noncurrent 246,228 262,763 Long-term deferred income 1,137,235 892,375 Due to related parties and VIE holding companies 128,094 614,265 Total liabilities of VIE and its subsidiary $ 10,686,040 $ 11,305,386 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of September 30, 2020, and December 31, 2019 inventories consisted of the following: September 30, 2020 December 31, 2019 Current Long-term Total Current Long-term Total Raw materials $ 17,169 $ 93,272 $ 110,441 $ 16,761 $ 91,056 $ 107,817 Finished goods 2,752,157 2,612,259 5,364,416 2,770,352 2,613,724 5,384,076 Total 2,769,326 2,705,531 5,474,857 2,787,113 2,704,780 5,491,893 Inventory reserves (145,967 ) (1,472,817 ) (1,618,784 ) (149,724 ) (1,125,165 ) (1,274,889 ) Inventories, net $ 2,623,359 $ 1,232,714 $ 3,856,073 $ 2,637,389 $ 1,579,615 $ 4,217,004 |
Schedule of Inventories Purchase from Related Parties | Inventories as of September 30, 2020 and December 31, 2019 consisted of inventories purchased from related parties are as follows: September 30, December 31, 2020 2019 Inventories, net $ 47,029 $ - Inventories - related parties, net 2,576,330 2,637,389 Total $ 2,623,359 $ 2,637,389 September 30, December 31, 2020 2019 Long-term inventories, net $ 411,232 $ 395,032 Long-term inventories - related parties, net 821,482 1,184,583 Total $ 1,232,714 $ 1,579,615 |
Taxes (Tables)
Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Difference Between the U.S. Statutory Federal Tax Rate and Company's Effective Tax Rate | The table below summarizes the difference between the U.S. statutory federal tax rate and the Company’s effective tax rate for the Nine Months Ended September 30, 2020 and 2019: Nine Months Ended September 30, 2020 2019 U.S. federal income tax rate 21.00 % 21.00 % State income tax rate 8.84 % 8.84 % Tax rate difference 5.57 % 4.51 % PRC tax exemption and reduction (45.64 )% (38.15 )% GILTI - % - % Valuation allowance 11.69 % 3.80 % Others (0.04 )% 0.35 % Effective tax rate 1.42 % 0.35 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Option Activities | Stock option activities for the nine months ended September 30, 2020 and 2019 were summarized in the following table. Nine Months Ended September 30, Nine Months Ended September 30, Number of Weighted Number of Weighted Balance at beginning of period 7,738,737 $ 0.22 7,738,737 $ 0.22 Issued - - - - Exercised - - - - Expired - - - - Forfeited - - - - Balance at end of period 7,738,737 $ 0.22 7,738,737 $ 0.22 Option exercisable at end of period 7,738,737 $ 0.22 7,738,737 $ 0.22 |
Schedule of Stock Issuable Upon Exercise of Options Outstanding | The following table summarizes the shares of the Company’s common stock issuable upon exercise of options outstanding on September 30, 2020: Stock Options Outstanding Stock Options Exercisable Range of Exercise Number Outstanding at September 30, 2020 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Number Exercisable at September 30, 2020 Weighted Average Exercise $ 0.22-0.25 7,738,737 1.25 $ 0.22 7,738,737 $ 0.22 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted Net Income Per Share | The following table presents a reconciliation of basic and diluted net income per share for the three and nine months ended September 30, 2020 and 2019: For the Three Months Ended September 30, For the Nine Months Ended 2020 2019 2020 2019 Net income available to common stockholders for basic and diluted net income per share of common stock $ 995,974 $ 1,183,633 $ 1,884,953 $ 2,997,098 Weighted average common stock outstanding - basic 51,700,000 51,700,000 51,700,000 51,781,044 Effect of dilutive securities: Non-vested restricted common stock - - - - Stock options issued to directors/officers/employees - - - - Weighted average common stock outstanding - diluted 51,700,000 51,700,000 51,700,000 51,781,044 Net income per common share – basic $ 0.02 $ 0.02 $ 0.04 $ 0.06 Net income per common share - diluted $ 0.02 $ 0.02 $ 0.04 $ 0.06 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease Expenses | The components of lease expense consist of the following: Classification Nine Months Ended Nine Months Ended Operating lease cost Selling, general and administrative expense $ 54,550 $ 113,476 Net lease cost $ 54,550 $ 113,476 |
Schedule of Balance Sheet Information Related to Leases | Balance sheet information related to leases consists of the following: Classification September 30, September 30, Assets Operating lease ROU assets Right-of-use assets $ 337,962 $ 218,195 Total leased assets $ 337,962 $ 218,195 Liabilities Current Operating Current maturities of operating lease liabilities $ 61,773 $ 24,389 Non-current Operating Operating lease liabilities 295,368 247,147 Total lease liabilities $ 357,141 $ 271,536 Weighted average remaining lease term Operating leases 10.7 years 5.9 years Weighted average discount rate Operating leases 6.44 % 6.44 % |
Schedule of Cash Flow Information Related to Leases | Cash flow information related to leases consists of the following: Nine Months Ended Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 60,264 $ 58,004 |
Schedule of Minimum Future Lease Payments | The minimum future lease payments as of September 30, 2020 are as follows: Years Ending December 31, Operating The remaining of 2020 $ 14,064 2021 80,452 2022 80,761 2023 34,028 2024 29,766 2025 26,703 Thereafter 214,966 Total lease payments 480,740 Less: Interest (123,599 ) Present value of lease liabilities $ 356,105 |
Concentrations of Credit Risk_2
Concentrations of Credit Risk and Major Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Schedule of Cash Balances by Geographical Areas | On September 30, 2020 and December 31, 2019, the Company’s cash balances by geographic area were as follows: September 30, December 31, Country United States $ 8,119 $ 46,855 China 1,216,174 695,439 Total Cash $ 1,224,293 $ 742,294 |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |
Schedule of Major Customers and Suppliers | For the nine months ended September 30, 2020 and 2019, the major customers whose sales and accounts receivable accounted for 10% or more of the Company’s total revenue and accounts receivable, respectively, were as follows: For the Nine Months Ended September 30, Customer 2020 2019 A (Yew Pharmaceutical, a related party) 63.5 % - % B (Hong Kong YIDA Commerce Co., Limited, a related party) - % 22 % C (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) * % 78 % D (DMSU, a related party) 11.8 % - % E (LIFEFORFUN LIMITED, a related party) 21.0 % - % * Less than 10% Accounts receivable as of Customer September 30, December 31, A (Yew Pharmaceutical, a related party) 25.9 % - % B (Hong Kong YIDA Commerce Co., Limited, a related party) - % 2.5 % C (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) 22.9 % 97.5 % E (LIFEFORFUN LIMITED, a related party) 49.6 % - |
Supplier [Member] | |
Schedule of Major Customers and Suppliers | For the nine months ended September 30, 2020 and 2019, major suppliers accounting for 10% or more of the Company’s total purchase and major suppliers whose accounts payable accounted for 10% or more of the Company’s total accounts payable were as follows: For the Nine Months Ended September 30, Supplier 2020 2019 A (Yew Pharmaceutical, a related party) 43.5 % 44 % F (Haixiang Liu) * % 10 % * Less than 10% Accounts payable as of Supplier September 30, December 31, G (Heilongjiang Weishahe Agriculture Technology Co., Ltd) 72.1 % 85.3 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Company Transaction with the Related Parties | In addition to several of the Company’s officers and directors, the Company conducted transactions with the following related parties: Company Ownership Heilongjiang Zishan Technology Co., Ltd. (“ZTC”) 51% owned by Heilongjiang Hongdoushan Ecology Forest Co., Ltd., 34% owned by Zhiguo Wang, Chairman and Chief Executive Officer, 11% owned by Guifang Qi, the wife of Mr. Wang and director of the Company, and 4% owned by third parties. Heilongjiang Yew Pharmaceutical Co., Ltd. (“Yew Pharmaceutical”) 95% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 5% owned by Madame Qi. Shanghai Kairun Bio-Pharmaceutical Co., Ltd. (“Kairun”) 60% owned by Heilongjiang Zishan Technology Co., Ltd., 20% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 20% owned by Mr. Wang. Heilongjiang Hongdoushan Ecology Forest Co., Ltd. (“HEFS”) 63% owned by Mr. Wang, 34% owned by Madame Qi, and 3% owned by third parties. Hongdoushan Bio-Pharmaceutical Co., Ltd. (“HBP”) 30% owned by Mr. Wang, 19% owned by Madame Qi and 51% owned by HEFS Heilongjiang Pingshan Hongdoushan Development Co., Ltd. (“HDS Development”) 80% owned by HEFS and 20% owned by Kairun Wuchang City Xinlin Forestry Co., Ltd. (Xinlin) 98% owned by ZTC and 2% owned by HEFS Wonder Genesis Global Ltd. Jinguo Wang is the Company’s director. DMSU Digital Technology Limited(“DMSU”) Significantly influenced by the Company Hong Kong YIDA Commerce Co., Limited(“YIDA”) Significantly influenced by the Company LIFEFORFUN LIMITED Significantly influenced by the Company Jinguo Wang Management of HDS and Legal person of Xinlin Zhiguo Wang Principal shareholder and CEO of the Company Guifang Qi Principal shareholder and the wife of CEO Cai Wang Employee of the Company Weihong Zhang Employee of the Company Xue Wang Employee of the Company Chunping Wang Employee of the Company Jimin Lu Employee of the Company |
Schedule of Related Parties | The following summarized the Company’s due to related parties as of September 30, 2020 and December 31, 2019: September 30, December 31, Zhiguo Wang and Guifang Qi $ 553,579 $ 530,621 HBP 92,478 103,158 Others 14,699 - Total $ 660,756 $ 633,779 * *: The amounts due to related parties bear no interest and are payable on demand. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Geographical Distributions of Company Financial Information | The geographical distributions of the Company’s financial information for the nine months ended September 30, 2020 and 2019 were as follows: For the Nine Months Ended September 30, Geographic Areas 2020 2019 Revenue PRC $ 21,908,026 $ 24,564,383 USA 93,548 205,694 Elimination Adjustment (55,020 ) (23,325 ) Total Revenue $ 21,946,554 $ 24,746,752 Income (Loss) from operations PRC $ 3,250,334 $ 3,178,243 USA (742,268 ) (424,549 ) Total Income from operations $ 2,508,066 $ 2,753,694 Net income (loss) PRC $ 2,625,091 $ 3,361,756 USA (740,138 ) (364,658 ) Total net income $ 1,884,953 $ 2,997,098 The geographical distributions of the Company’s financial information for the three months ended September 30, 2020 and 2019 were as follows: For the Three Months Ended September 30, Geographic Areas 2020 2019 Revenue PRC $ 10,338,530 $ 604,204 USA 16,685 86,647 Elimination Adjustment - (23,325 ) Total Revenue $ 10,355,215 $ 667,526 Income (Loss) from operations PRC $ 1,587,209 $ 1,067,778 USA (93,031 ) 4,441 Total Income from operations $ 1,494,178 $ 1,072,219 Net income (loss) PRC $ 1,088,255 $ 1,138,524 USA (92,281 ) 45,109 Total net income $ 995,974 $ 1,183,633 The geographical distribution of the Company’s financial information as of September 30, 2020 and December 31, 2019 were as follows: As of As of Geographic Areas 2020 2019 Long-term assets PRC $ 46,012,533 $ 44,547,842 USA 964,780 1,363,586 Elimination adjustment (3,908,641 ) (3,376,072 ) Total long-term assets $ 43,068,672 $ 42,535,356 Reportable assets PRC $ 58,877,433 $ 55,407,391 USA 1,542,675 2,146,518 Elimination adjustment (3,754,476 ) (3,347,192 ) Total reportable assets $ 56,665,632 $ 54,206,717 |
Organization and Principal Ac_3
Organization and Principal Activities - Schedule of Company's Subsidiaries and Variable Interest Entities (Details) | 9 Months Ended | |
Sep. 30, 2020 | ||
Heilongjiang Jinshangjing Bio-Technology Development Co., Limited ("JSJ") [Member] | ||
Domicile and date of incorporation | PRC October 29, 2009 | |
Registered capital | US$100,000 | |
Effective ownership | 100.00% | |
Principal activities | Holding company | |
Yew Bio-Pharm Holdings Limited ("Yew Bio-Pharm (HK)") [Member] | ||
Domicile and date of incorporation | Hong Kong November 29, 2010 | |
Registered capital | HK$10,000 | |
Effective ownership | 100.00% | |
Principal activities | Holding company of JSJ | |
Harbin Yew Science and Technology Development Co., Ltd. ("HDS") [Member] | ||
Domicile and date of incorporation | PRC August 22, 1996 | |
Registered capital | RMB45,000,000 | |
Principal activities | Sales of yew tree components for use in pharmaceutical industry; sales of yew tree seedlings; the manufacture of yew tree wood handicrafts; and the sales of candle, pine needle extract, yew essential oil soap, complex taxus cuspidate extract, and northeast yew extract | |
Effective ownership | Contractual arrangements | |
Harbin Yew Food Co., Ltd ("HYF") [Member] | ||
Domicile and date of incorporation | PRC November 4, 2014 | |
Registered capital | RMB100,000 | |
Effective ownership | 100.00% | [1] |
Principal activities | Sales of wood ear mushroom drink | |
MC Commerce Holding Inc. ("MC") [Member] | ||
Domicile and date of incorporation | State of California, United State June 8, 2016 | |
Effective ownership | 100.00% | [2] |
Principal activities | Sales of yew oil candles and yew oil soaps | |
Harbin Jingchibai Bio-Technology Development Co., Limited ("JCB") [Member] | ||
Domicile and date of incorporation | PRC March 18, 2020 | |
Registered capital | RMB1,000,000 | |
Effective ownership | 51.00% | |
Principal activities | Sales of yew oil candles and yew oil soaps, no active operation since its incorporation | |
[1] | Wholly owned subsidiary of HDS | |
[2] | 51% owned by YBP and 49% owned by HDS |
Organization and Principal Ac_4
Organization and Principal Activities - Schedule of Company's Subsidiaries and Variable Interest Entities (Details) (Parenthetical) | 9 Months Ended |
Sep. 30, 2020 | |
Yew Bio Pharm Group Inc [Member] | |
Effective ownership, percentage | 51.00% |
Harbin Yew Science and Technology Development Co., Ltd. ("HDS") [Member] | |
Effective ownership, percentage | 49.00% |
Principles of Consolidation (De
Principles of Consolidation (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jan. 02, 2019 | |
Description of exclusive business cooperation agreement | Pursuant to the Exclusive Business Cooperation Agreement between JSJ and HDS (the "Business Cooperation Agreement"), JSJ has the exclusive right to provide to HDS general business operation services, including advice and strategic planning, as well as consulting services related to technology, research and development, human resources, marketing and other services deemed necessary (collectively, the "Services"). Under the Business Cooperation Agreement, JSJ has exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising out of or created during the performance of the Business Cooperation Agreement, including but not limited to copyrights, patents, patent applications, software and trade secrets. HDS shall pay to JSJ a monthly consulting service fee (the "Service Fee") in RMB that is equal to 100% of the monthly net income of HDS. Upon the prior written consent by JSJ, the rate of Service Fee may be adjusted pursuant to the operational needs of HDS. Within 30 days after the end of each month, HDS shall (a) deliver to JSJ the management accounts and operating statistics of HDS for such month, including the net income of HDS during such month (the "Monthly Net Income"), and (b) pay 80% of such Monthly Net Income to JSJ (each such payment, a "Monthly Payment"). Within ninety (90) days after the end of each fiscal year, HDS shall (a) deliver to JSJ financial statements of HDS for such fiscal year, which shall be audited and certified by an independent certified public accountant approved by JSJ, and (b) pay an amount to JSJ equal to the shortfall, if any, of the aggregate net income of HDS for such fiscal year, as shown in such audited financial statements, as compared to the aggregate amount of the Monthly Payments paid by HDS to JSJ in such fiscal year. HDS also granted an irrevocable and exclusive option to JSJ to purchase any and all of the assets of HDS, to the extent permitted under PRC law, at the lowest price permitted by PRC law. Unless earlier terminated in accordance with the provisions of the Business Cooperation Agreement or other agreements separately executed between JSJ and HDS, the Business Cooperation Agreement is for a term of ten years and expires on November 5, 2020; however, the term of the Business Cooperation Agreement may be extended if confirmed in writing by JSJ prior to the expiration of the term thereof. The period of the extended term shall be determined exclusively by JSJ and HDS shall accept such extended term unconditionally. Unless JSJ commits gross negligence, or a fraudulent act, against HDS, HDS shall not terminate the Business Cooperation Agreement prior to the expiration of the term, including any extended term. Notwithstanding the foregoing, JSJ shall have the right to terminate the Business Cooperation Agreement at any time upon giving 30 days' prior written notice to HDS. | ||
Exclusive option agreement | Under an Exclusive Option Agreement among JSJ, HDS and each HDS Shareholder (individually, an "Option Agreement"), the terms of which are substantively identical to each other, each HDS Shareholder has granted JSJ or its designee the irrevocable and exclusive right to purchase, to the extent permitted under PRC law, all or any part of the HDS Shareholder's equity interests in HDS (the "Equity Interest Purchase Option") for RMB10. If an appraisal is required by PRC laws at the time when and if JSJ exercises the Equity Interest Purchase Option, the parties shall negotiate in good faith and, based upon the appraisal, make a necessary adjustment to the purchase price so that it complies with any and all then applicable PRC laws. Without the consent of JSJ, the HDS Shareholders shall not sell, transfer, mortgage or dispose of their respective shares of HDS stock. Additionally, without the prior consent of JSJ, the HDS Shareholders shall not in any manner supplement, change or amend the articles of association and bylaws of HDS, increase or decrease its registered capital, change the structure of its registered capital in any other manner, or engage in any transactions that could materially affect HDS' assets, liabilities, rights or operations, including, without limitation, the incurrence or assumption of any indebtedness except incurred in the ordinary course of business, execute any major contract over RMB500,000, sell or purchase any assets or rights, incur of any encumbrance on any of its assets or intellectual property rights in favor of a third party or transfer of any agreements relating to its business operation to any third party. The term of each Option Agreement is ten years commencing on November 5, 2020 and may be extended at the sole election of JSJ. | ||
Operating lease liability | $ 357,141 | $ 271,536 | |
Topic 842 [Member] | |||
Operating lease liability | $ 350,000 |
Principles of Consolidation - S
Principles of Consolidation - Schedule of Carrying Amount of Assets and Liabilities Related to Variable Interest Entity (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Accounts receivable - related parties, net | $ 7,113,073 | $ 198,829 | |
Inventories (current and noncurrent), net | 2,623,359 | 2,637,389 | |
Property and equipment, net | 486,151 | 474,903 | |
Operating lease right of use assets | 337,962 | 399,817 | $ 218,195 |
Total Assets | 56,665,632 | 54,206,717 | |
Short-term borrowings | 8,166,609 | 8,541,517 | |
Operating lease liability, current and noncurrent | 357,141 | $ 271,536 | |
Long-term deferred income | 1,137,236 | 892,375 | |
Total Liabilities | 12,604,321 | 12,813,022 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Cash | 1,211,352 | 688,863 | |
Accounts receivable | 2,167,353 | 7,692,600 | |
Accounts receivable - related parties, net | 7,113,073 | 198,829 | |
Inventories (current and noncurrent), net | 3,066,451 | 2,991,237 | |
Prepaid expenses and other receivables | 83,832 | 37,202 | |
Advance to suppliers | 114,227 | ||
Property and equipment, net | 479,390 | 466,025 | |
Long-term investment in an affiliate | 3,908,641 | 3,009,527 | |
Land use rights and yew forest assets, net | 40,868,364 | 40,048,696 | |
Operating lease right of use assets | 229,557 | 259,331 | |
VAT input credit | 367,083 | 349,096 | |
Total Assets | 59,609,323 | 55,741,406 | |
Accounts Payable for acquisition of yew forests and others | 603,606 | 796,346 | |
Accounts Payable for acquisition of yew forests and others - related parties | 103,363 | 16,629 | |
Advances from customers | 182,534 | 50,071 | |
Short-term borrowings | 8,086,689 | 8,541,517 | |
Accrued expenses and other payables | 198,291 | 131,420 | |
Operating lease liability, current and noncurrent | 246,228 | 262,763 | |
Long-term deferred income | 1,137,235 | 892,375 | |
Due to related parties and VIE holding companies | 128,094 | 614,265 | |
Total Liabilities | $ 10,686,040 | $ 11,305,386 |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventories (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Inventories, net, current portion | $ 2,623,359 | $ 2,637,389 |
Inventories, net, long-term portion | 1,232,714 | 1,579,615 |
Inventories, net, total | 3,856,073 | 4,217,004 |
Inventory reserves, current portion | (145,967) | (149,724) |
Inventory reserves, long-term portion | (1,472,817) | (1,125,165) |
Inventory reserves | (1,618,784) | (1,274,889) |
Raw materials [Member] | ||
Inventories, net, current portion | 17,169 | 16,761 |
Inventories, net, long-term portion | 93,272 | 91,056 |
Inventories, net, total | 110,441 | 107,817 |
Finished goods [Member] | ||
Inventories, net, current portion | 2,752,157 | 2,770,352 |
Inventories, net, long-term portion | 2,612,259 | 2,613,724 |
Inventories, net, total | 5,364,416 | 5,384,076 |
Inventory Gross [Member] | ||
Inventories, net, current portion | 2,769,326 | 2,787,113 |
Inventories, net, long-term portion | 2,705,531 | 2,704,780 |
Inventories, net, total | $ 5,474,857 | $ 5,491,893 |
Inventories, Net - Schedule o_2
Inventories, Net - Schedule of Inventories Purchase from Related Parties (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Inventories, net | $ 47,029 | |
Inventories - related parties, net | 2,576,330 | 2,637,389 |
Total | 2,623,359 | 2,637,389 |
Long-term inventories, net | 411,232 | 395,032 |
Long-term inventories - related parties, net | 821,482 | 1,184,583 |
Total | $ 1,232,714 | $ 1,579,615 |
Taxes (Details Narrative)
Taxes (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Income tax description | The U.S. Tax Cuts and Jobs Act (the "Tax Act") was enacted on December 22, 2017. The Tax Act among other changes, reduces the U.S. federal corporate tax rate from 35% to 21% | |||
U.S federal corporate tax rate | 21.00% | 21.00% | ||
One time transition tax | $ 1,431,835 | |||
U.S. corporate income tax, description | The Company recognized a one-time transition tax of $1,431,835 during 2018 that represented management's estimate of the amount of U.S. corporate income tax based on the deemed repatriation to the United States of the Company's share of previously deferred earnings of certain non-U.S. subsidiaries of the Company mandated by the U.S. Tax Reform. The Company elected to pay the one-time transition tax over eight years commencing in 2018. | |||
Income tax payable current | $ 114,600 | $ 116,440 | ||
Income tax payable noncurrent | $ 973,647 | 1,088,194 | ||
Controlled foreign corporations, description | GILTI is the excess of the shareholder's net CFC tested income over the net deemed tangible income return, which is currently defined as the excess of (1) 10 percent of the aggregate of the U.S. shareholder's pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred | |||
GILTI tax expenses | $ 0 | $ 0 | ||
GILTI tax payable outstanding | $ 0 | $ 0 | ||
Description of tax exemption date | Pursuant to the PRC Income Tax Laws, Enterprise Income Taxes ("EIT") is generally imposed at 25%. However, HDS has been named as a leading enterprise in the agricultural industry and awarded with a tax exemption through December 31, 2058 with an exception of sales of handicrafts, yew candle, pine needle extracts and yew essential oil soap which are not within the scope of agricultural area. | |||
Agricultural products [Member] | ||||
Value added tax percentage | 13.00% | |||
Handicrafts [Member] | ||||
Value added tax percentage | 17.00% | |||
Yew candles complex [Member] | ||||
Value added tax percentage | 16.00% |
Taxes - Schedule of Difference
Taxes - Schedule of Difference Between the U.S. Statutory Federal Tax Rate and Company's Effective Tax Rate (Details) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal income tax rate | 21.00% | 21.00% |
State income tax rate | 8.84% | 8.84% |
Tax rate difference | 5.57% | 4.51% |
PRC tax exemption and reduction | (45.64%) | (38.15%) |
GILTI | ||
Valuation allowance | 11.69% | 3.80% |
Others | (0.04%) | 0.35% |
Effective tax rate | 1.42% | 0.35% |
Short-term Borrowings (Details
Short-term Borrowings (Details Narrative) - USD ($) | Jul. 31, 2020 | Jul. 24, 2020 | Jul. 23, 2020 | Feb. 25, 2020 | Jan. 30, 2020 | Aug. 20, 2019 | Jul. 26, 2019 | May 13, 2019 | Dec. 22, 2016 | Apr. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2020 | May 04, 2020 | May 01, 2020 | Dec. 31, 2019 | Aug. 31, 2018 |
Interest expense | $ 126,000 | $ 97,000 | $ 361,000 | $ 279,000 | ||||||||||||||||
SBA Economic Injury Disaster Loans [Member] | ||||||||||||||||||||
Loan advances | $ 9,000 | |||||||||||||||||||
Yicheng Wang [Member] | ||||||||||||||||||||
Interest rate on loan issued | 5.00% | |||||||||||||||||||
Pay check protection program loan [Member] | Promissory Note [Member] | ||||||||||||||||||||
Loan amount | $ 70,920 | $ 70,920 | ||||||||||||||||||
Interest rate of loans | 1.00% | |||||||||||||||||||
Loan outstanding | 70,920 | 70,920 | ||||||||||||||||||
Yingkou Bank [Member] | ||||||||||||||||||||
Interest expense | 36,943 | 107,676 | ||||||||||||||||||
Loan amount | $ 2,200,000 | $ 735,000 | $ 718,000 | $ 2,153,000 | ||||||||||||||||
Interest rate of loans | 6.525% | 6.525% | ||||||||||||||||||
Debt instruement maturity date | Jul. 23, 2021 | Jul. 23, 2021 | Aug. 19, 2020 | Jul. 25, 2020 | ||||||||||||||||
Loan outstanding | 2,205,461 | 2,205,461 | $ 2,153,069 | |||||||||||||||||
Yingkou Bank [Member] | Loan Agreement One [Member] | ||||||||||||||||||||
Loan amount | $ 2,153,000 | |||||||||||||||||||
Interest rate of loans | 5.4375% | |||||||||||||||||||
Yingkou Bank [Member] | Loan Agreement Two [Member] | ||||||||||||||||||||
Interest expense | 12,314 | 35,892 | ||||||||||||||||||
Loan amount | $ 718,000 | |||||||||||||||||||
Interest rate of loans | 5.4375% | |||||||||||||||||||
Loan outstanding | 735,154 | 735,154 | 717,690 | |||||||||||||||||
CNY | Yicheng Wang [Member] | ||||||||||||||||||||
Loan issued | $ 600,000 | |||||||||||||||||||
CNY | Yingkou Bank [Member] | ||||||||||||||||||||
Loan amount | $ 15,000,000 | $ 5,000,000 | $ 5,000,000 | $ 15,000,000 | ||||||||||||||||
Loan outstanding | 15,000,000 | 15,000,000 | 15,000,000 | |||||||||||||||||
CNY | Yingkou Bank [Member] | Loan Agreement One [Member] | ||||||||||||||||||||
Loan amount | $ 15,000,000 | |||||||||||||||||||
CNY | Yingkou Bank [Member] | Loan Agreement Two [Member] | ||||||||||||||||||||
Loan amount | $ 5,000,000 | |||||||||||||||||||
Loan outstanding | 5,000,000 | 5,000,000 | 5,000,000 | |||||||||||||||||
China Everbright Bank [Member] | Line of Credit [Member] | ||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 2,820,000 | $ 2,800,000 | ||||||||||||||||||
Debt instruement term | 3 years | 3 years | ||||||||||||||||||
Repayments of line of credit | $ 1,400,000 | $ 1,400,000 | 2,800,000 | |||||||||||||||||
Line of credit remaining borrowing capacity | 2,205,461 | 2,205,461 | $ 2,800,000 | |||||||||||||||||
Interest expense | 63,247 | $ 134,041 | ||||||||||||||||||
China Everbright Bank [Member] | Line of Credit [Member] | Minimum [Member] | ||||||||||||||||||||
Line of credit interest rate | 4.30% | |||||||||||||||||||
China Everbright Bank [Member] | Line of Credit [Member] | Maximum [Member] | ||||||||||||||||||||
Line of credit interest rate | 5.65% | |||||||||||||||||||
China Everbright Bank [Member] | Line of Credit [Member] | CNY | ||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 | ||||||||||||||||||
Line of credit remaining borrowing capacity | 15,000,000 | $ 15,000,000 | ||||||||||||||||||
Postal Saving Bank of China [Member] | Line of Credit [Member] | ||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 2,830,000 | |||||||||||||||||||
Debt instruement term | 10 years | |||||||||||||||||||
Line of credit interest rate | 5.22% | |||||||||||||||||||
Line of credit remaining borrowing capacity | 2,940,614 | 2,940,614 | 2,870,758 | |||||||||||||||||
Interest expense | 42,264 | 112,753 | ||||||||||||||||||
Postal Saving Bank of China [Member] | Line of Credit [Member] | CNY | ||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 20,000,000 | |||||||||||||||||||
Line of credit remaining borrowing capacity | $ 20,000,000 | $ 20,000,000 | $ 11,900,000 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Feb. 28, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Cancellation of common stock | |||
Intrinsic value of options outstanding | |||
Intrinsic value of exercisable stock options | |||
Common stock exercise price | $ 0.11 | ||
Chineseinvestors.com, Inc [Member] | |||
Cancellation of common stock | 375,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Option Activities (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | ||
Number of Stock Options, Beginning Balance | 7,738,737 | 7,738,737 |
Number of Stock Options, Issued | ||
Number of Stock Options, Exercised | ||
Number of Stock Options, Expired | ||
Number of Stock Options, Forfeited | ||
Number of Stock Options, Ending Balance | 7,738,737 | 7,738,737 |
Number of Stock Options, Options exercisable | 7,738,737 | 7,738,737 |
Weighted Average Exercise Price, Beginning Balance | $ 0.22 | $ 0.22 |
Weighted Average Exercise Price, Issued | ||
Weighted Average Exercise Price, Exercised | ||
Weighted Average Exercise Price, Expired | ||
Weighted Average Exercise Price, Forfeited | ||
Weighted Average Exercise Price, Ending Balance | 0.22 | 0.22 |
Weighted Average Exercise Price, Options exercisable | $ 0.22 | $ 0.22 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Stock Issuable Upon Exercise of Options Outstanding (Details) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Stockholders' Equity Note [Abstract] | |
Stock Options Outstanding, Range of Exercise Price, Minimum | $ 0.22 |
Stock Options Outstanding, Range of Exercise Price, Maximum | $ 0.25 |
Stock Options Outstanding, Number Outstanding (in Shares) | shares | 7,738,737 |
Stock Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 2 months 30 days |
Stock Options Outstanding, Weighted Average Exercise Price | $ 0.22 |
Stock Options Exercisable, Number Exercisable (in Shares) | shares | 7,738,737 |
Stock Options Exercisable, Weighted Average Exercise Price | $ 0.22 |
Earnings Per Share (Details Nar
Earnings Per Share (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 7,738,737 | 7,738,737 | 7,738,737 | 7,738,737 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Reconciliation of Basic and Diluted Net Income Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income available to common stockholders for basic and diluted net income per share of common stock | $ 995,974 | $ 1,183,633 | $ 1,884,953 | $ 2,997,098 |
Weighted average common stock outstanding - basic | 51,700,000 | 51,700,000 | 51,700,000 | 51,781,044 |
Non-vested restricted common stock | ||||
Stock options issued to directors/officers/employees | ||||
Weighted average common stock outstanding - diluted | 51,700,000 | 51,700,000 | 51,700,000 | 51,781,044 |
Net income per common share - basic | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.06 |
Net income per common share - diluted | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.06 |
Leases (Details Narrative)
Leases (Details Narrative) | Sep. 30, 2020 |
Leases [Abstract] | |
Incremental borrowing rate | 6.44% |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expenses (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Net lease cost | $ 54,550 | $ 113,476 |
Selling, General and Administrative Expenses [Member] | ||
Operating lease cost | $ 54,550 | $ 113,476 |
Leases - Schedule of Balance Sh
Leases - Schedule of Balance Sheet Information Related to Leases (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Leases [Abstract] | |||
Operating lease ROU assets | $ 337,962 | $ 399,817 | $ 218,195 |
Total leased assets | 337,962 | 218,195 | |
Current operating lease liabilities | 61,773 | 52,104 | 24,389 |
Non-current operating lease liabilities | 295,368 | $ 351,145 | 247,147 |
Total operating lease liabilities | $ 357,141 | $ 271,536 | |
Operating leases | 10 years 8 months 12 days | 5 years 10 months 25 days | |
Operating leases | 6.44% | 6.44% |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information Related to Leases (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 60,264 | $ 58,004 |
Leases - Schedule of Minimum Fu
Leases - Schedule of Minimum Future Lease Payments (Details) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Leases [Abstract] | ||
The remaining of 2020 | $ 14,064 | |
2021 | 80,452 | |
2022 | 80,761 | |
2023 | 34,028 | |
2024 | 29,766 | |
2025 | 26,703 | |
Thereafter | 214,966 | |
Total lease payments | 480,740 | |
Less: Interest | (123,599) | |
Present value of lease liabilities | $ 357,141 | $ 271,536 |
Concentrations of Credit Risk_3
Concentrations of Credit Risk and Major Customers (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
China financial stability bureau insured (in yuan renminbi) | $ 250,000 | ||
FDIC insured | 303,000 | $ 216,000 | |
FDIC not insured | 921,000 | $ 526,000 | |
CNY | |||
China financial stability bureau insured (in yuan renminbi) | $ 500,000 | ||
Accounts payable [Member] | |||
Concentration of credit risk, percentage | 10.00% | 10.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentration of credit risk, percentage | 10.00% | 10.00% | |
Suppliers [Member] | |||
Concentration of credit risk, percentage | 10.00% | 10.00% |
Concentrations of Credit Risk_4
Concentrations of Credit Risk and Major Customers - Schedule of Major Customers and Suppliers (Details) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Concentration of credit risk, percentage | 10.00% | 10.00% | ||
A (Yew Pharmaceutical, a related party) {Member] | Accounts Receivable [Member] | ||||
Concentration of credit risk, percentage | 25.90% | |||
A (Yew Pharmaceutical, a related party) {Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Concentration of credit risk, percentage | 63.50% | |||
A (Yew Pharmaceutical, a related party) {Member] | Accounts Payable [Member] | Supplier [Member] | ||||
Concentration of credit risk, percentage | 43.50% | 44.00% | ||
B (Hong Kong YIDA Commerce Co., Limited, a related party) [Member] | Accounts Receivable [Member] | ||||
Concentration of credit risk, percentage | 2.50% | |||
B (Hong Kong YIDA Commerce Co., Limited, a related party) [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Concentration of credit risk, percentage | 22.00% | |||
C (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) {Member] | Accounts Receivable [Member] | ||||
Concentration of credit risk, percentage | 22.90% | 97.50% | ||
C (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) {Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Concentration of credit risk, percentage | [1] | 78.00% | ||
D (DMSU, a related party) [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Concentration of credit risk, percentage | 11.80% | |||
E (LIFEFORFUN LIMITED, a related party) [Member] | Accounts Receivable [Member] | ||||
Concentration of credit risk, percentage | 49.60% | |||
E (LIFEFORFUN LIMITED, a related party) [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Concentration of credit risk, percentage | 21.00% | |||
F (Haixiang Liu) [Member] | Accounts Payable [Member] | Supplier [Member] | ||||
Concentration of credit risk, percentage | [1] | 10.00% | ||
G (Heilongjiang Weishahe Agriculture Technology Co., Ltd) [Member] | Accounts Payable [Member] | Supplier [Member] | ||||
Concentration of credit risk, percentage | 72.10% | 85.30% | ||
[1] | Less than 10% |
Concentrations of Credit Risk_5
Concentrations of Credit Risk and Major Customers - Schedule of Cash Balances by Geographical Areas (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Total Cash | $ 1,224,293 | $ 742,294 |
United States [Member] | ||
Total Cash | 8,119 | 46,855 |
China [Member] | ||
Total Cash | $ 1,216,174 | $ 695,439 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | Feb. 10, 2020USD ($) | Oct. 02, 2016 | Jul. 31, 2015USD ($) | Jan. 01, 2015USD ($)m² | Jan. 30, 2010USD ($) | Jan. 09, 2010USD ($) | Mar. 25, 2005USD ($)m² | Mar. 31, 2002USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2002 |
Revenue | $ 10,355,215 | $ 667,526 | $ 21,946,554 | $ 24,746,752 | ||||||||||
Cost of revenues | 8,829,857 | 708,734 | 18,693,558 | 22,983,373 | ||||||||||
DMSU [Member] | ||||||||||||||
Revenue | 2,592,000 | |||||||||||||
Collection of receivables | 2,753,000 | |||||||||||||
Recovery of accounts receviable | 161,000 | 1,034,000 | ||||||||||||
DMSU [Member] | Under 2018 [Member] | ||||||||||||||
Accounts receivable - related parties | $ 5,304,000 | |||||||||||||
Collection of receivables | $ 1,000,000 | |||||||||||||
ZTC [Member] | ||||||||||||||
Payments for purchase of assets | 1,055,173 | 2,135,919 | ||||||||||||
Carrying costs of received assets | 933,680 | 1,730,920 | ||||||||||||
Deduction of additional paid in capital | 121,493 | 404,999 | 121,493 | 404,999 | ||||||||||
Amount prepaid to purchase intention | 102,922 | 102,922 | ||||||||||||
Due to related parties | 12,000 | 12,000 | ||||||||||||
Leased areaof land | m² | 361 | |||||||||||||
Operating lease term | 30 years | |||||||||||||
Lease expiration date | Mar. 24, 2035 | |||||||||||||
Annual payments under operating lease | $ 24,000 | |||||||||||||
Operating lease description | The payment for the first five years of the ZTC Lease was due prior to December 31, 2010 and beginning in 2011, the Company is required to make full payment for the land use rights in advance for each subsequent five-year period. | |||||||||||||
Operating lease rent expenses | 18,000 | 18,000 | ||||||||||||
Prepaid rent | 5,800 | |||||||||||||
Xinlin [Member] | ||||||||||||||
Payments for purchase of assets | 462,541 | 149,378 | ||||||||||||
Carrying costs of received assets | 409,349 | 122,788 | ||||||||||||
Deduction of additional paid in capital | 53,192 | $ 26,590 | 53,192 | 26,590 | ||||||||||
Due to related parties | ||||||||||||||
YIDA [Member] | ||||||||||||||
Revenue | 7,236,000 | |||||||||||||
Accounts receivable - related parties | 193,000 | |||||||||||||
Lifeforfun Limited [Member] | ||||||||||||||
Revenue | 4,608,000 | |||||||||||||
Accounts receivable - related parties | 4,608,000 | 4,608,000 | ||||||||||||
Jinguo Wang [Member] | ||||||||||||||
Payments for purchase of assets | 1,121,663 | 1,085,255 | ||||||||||||
Due to related parties | ||||||||||||||
Weihong Zhang [Member] | ||||||||||||||
Payments for purchase of assets | 28,909 | 794,252 | ||||||||||||
Due to related parties | 29,406 | 29,406 | ||||||||||||
Chunping Wang [Member] | ||||||||||||||
Payments for purchase of assets | 868,711 | 1,285,377 | ||||||||||||
Due to related parties | ||||||||||||||
Xue Wang [Member] | ||||||||||||||
Payments for purchase of assets | 750,184 | 158,093 | ||||||||||||
Due to related parties | ||||||||||||||
Cai Wang [Member] | ||||||||||||||
Payments for purchase of assets | 390,269 | 81,611 | ||||||||||||
Due to related parties | ||||||||||||||
CNY [Member] | ZTC [Member] | ||||||||||||||
Annual payments under operating lease | $ 162,450 | |||||||||||||
Yew Pharmaceutical [Member] | ||||||||||||||
Cost of raw materials | $ 146,000 | |||||||||||||
Revenue | 13,927,843 | 7,755,545 | ||||||||||||
Cost of revenues | 12,458,699 | 6,159,705 | ||||||||||||
Accounts receivable - related parties | 2,402,152 | 2,402,152 | ||||||||||||
Purchase of products | 7,961,493 | 11,018,135 | ||||||||||||
Yew Pharmaceutical [Member] | CNY [Member] | ||||||||||||||
Cost of raw materials | $ 1,000,000 | |||||||||||||
HDS [Member] | ||||||||||||||
Due to related parties | $ 5,500 | 5,500 | $ 7,000 | |||||||||||
Operating lease term | 15 years | 3 years | 23 years | |||||||||||
Annual payments under operating lease | $ 7,000 | $ 7,000 | $ 7,000 | |||||||||||
Operating lease rent expenses | 5,400 | 5,300 | ||||||||||||
HDS [Member] | CNY [Member] | ||||||||||||||
Annual payments under operating lease | $ 50,000 | |||||||||||||
HYF [Member] | ||||||||||||||
Leased areaof land | m² | 225 | |||||||||||||
HBP [Member] | ||||||||||||||
Leased areaof land | m² | 50 | |||||||||||||
Operating lease rent expenses | ||||||||||||||
Jixing Lease [Member] | ||||||||||||||
Operating lease term | 1 year | |||||||||||||
Lease expiration date | Sep. 30, 2019 | |||||||||||||
Operating lease rent expenses | $ 1,100 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Company Transaction with the Related Parties (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Heilongjiang Zishan Technology Co., Ltd. ("ZTC") [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | 51% owned by Heilongjiang Hongdoushan Ecology Forest Co., Ltd., 34% owned by Zhiguo Wang, Chairman and Chief Executive Officer, 11% owned by Guifang Qi, the wife of Mr. Wang and director of the Company, and 4% owned by third parties. |
Heilongjiang Yew Pharmaceutical Co Ltd [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | 95% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 5% owned by Madame Qi. |
Shanghai Kairun Bio-Pharmaceutical Co., Ltd. ("Kairun") [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | 60% owned by Heilongjiang Zishan Technology Co., Ltd., 20% owned by Heilongjiang Hongdoushan Ecology Forest Stock Co., Ltd., and 20% owned by Mr. Wang. |
Heilongjiang Hongdoushan Ecology Forest Co., Ltd. ("HEFS") [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | 63% owned by Mr. Wang, 34% owned by Madame Qi, and 3% owned by third parties. |
Hongdoushan Bio Pharmaceutical Co Ltd HBP [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | 30% owned by Mr. Wang, 19% owned by Madame Qi and 51% owned by HEFS |
Heilongjiang Pingshan Hongdoushan Development Co Ltd [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | 80% owned by HEFS and 20% owned by Kairun |
Wuchang City Xinlin Forestry Co Ltd [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | 98% owned by ZTC and 2% owned by HEFS |
Wonder Genesis Global Ltd [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | Jinguo Wang is the Company's director. |
DMSU Digital Technology Limited [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | Significantly influenced by the Company |
Hong Kong Yida Commerce Co Limited [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | Significantly influenced by the Company |
Lifeforfun Limited [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | Significantly influenced by the Company |
Jinguo Wang [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | Management of HDS and Legal person of Xinlin |
Zhiguo Wang [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | Principal shareholder and CEO of the Company |
Guifang Qi [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | Principal shareholder and the wife of CEO |
Cai Wang [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | Employee of the Company |
Weihong Zhang [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | Employee of the Company |
Xue Wang [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | Employee of the Company |
Chunping Wang [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | Employee of the Company |
Jimin Lu [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship, description | Employee of the Company |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Parties (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | |
Due to related parties | $ 660,756 | $ 633,779 | [1] |
Zhiguo Wang and Guifang Qi [Member] | |||
Due to related parties | 553,579 | 530,621 | |
HBP [Member] | |||
Due to related parties | 92,478 | 103,158 | |
Others [Member] | |||
Due to related parties | $ 14,699 | ||
[1] | The amounts due to related parties bear no interest and are payable on demand. |
Segment Information (Details Na
Segment Information (Details Narrative) | 9 Months Ended |
Sep. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Geographical Distributions of Company Financial Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenue | $ 10,355,215 | $ 667,526 | $ 21,946,554 | $ 24,746,752 | |
Income (Loss) from operations | 1,494,178 | 1,072,219 | 2,508,066 | 2,753,694 | |
Net income (loss) | 995,974 | 1,183,633 | 1,884,953 | 2,997,098 | |
Long-term assets | 43,068,672 | 43,068,672 | $ 42,535,356 | ||
Reportable assets | 56,665,632 | 56,665,632 | 54,206,717 | ||
Operating Segments [Member] | |||||
Revenue | 667,526 | 10,355,215 | 21,946,554 | 24,746,752 | |
Income (Loss) from operations | 1,072,219 | 1,494,178 | 2,508,066 | 2,753,694 | |
Net income (loss) | 1,183,633 | 995,974 | 1,884,953 | 2,997,098 | |
Long-term assets | 43,068,672 | 43,068,672 | 42,535,356 | ||
Reportable assets | 56,665,632 | 56,665,632 | 54,206,717 | ||
Operating Segments [Member] | China [Member] | |||||
Revenue | 10,338,530 | 604,204 | 21,908,026 | 24,564,383 | |
Income (Loss) from operations | 1,587,209 | 1,067,778 | 3,250,334 | 3,178,243 | |
Net income (loss) | 1,088,255 | 1,138,524 | 2,625,091 | 3,361,756 | |
Long-term assets | 46,012,533 | 46,012,533 | 44,547,842 | ||
Reportable assets | 58,877,433 | 58,877,433 | 55,407,391 | ||
Operating Segments [Member] | United States [Member] | |||||
Revenue | 16,685 | 86,647 | 93,548 | 205,694 | |
Income (Loss) from operations | (93,031) | 4,441 | (742,268) | (424,549) | |
Net income (loss) | (92,281) | 45,109 | (740,138) | (364,658) | |
Long-term assets | 964,780 | 964,780 | 1,363,586 | ||
Reportable assets | 1,542,675 | 1,542,675 | 2,146,518 | ||
Eliminations [Member] | |||||
Revenue | $ (23,325) | (55,020) | $ (23,325) | ||
Long-term assets | (3,908,641) | (3,908,641) | (3,376,072) | ||
Reportable assets | $ (3,754,476) | $ (3,754,476) | $ (3,347,192) |