Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 30, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | Yew Bio-Pharm Group, Inc. | ||
Entity Central Index Key | 0001548240 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 5,762,400 | ||
Entity Common Stock, Shares Outstanding | 51,700,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash | $ 563,792 | $ 742,294 |
Accounts receivable | 217,689 | 7,692,613 |
Accounts receivable - related parties, net | 9,045,669 | 198,829 |
Inventories, net | 14,608 | 2,637,389 |
Prepaid expenses and other receivables | 90,989 | 51,140 |
VAT input credit | 56,637 | 349,096 |
Total Current Assets | 9,989,384 | 11,671,361 |
LONG-TERM ASSETS: | ||
Long-term inventories, net | 784,784 | 1,579,615 |
Property and equipment, net | 489,195 | 474,903 |
Intangible assets, net | 27,726 | 32,325 |
Land use rights and yew forest assets, net | 41,952,483 | 40,048,696 |
Long-term advance for yew forest assets | 15,415 | |
Long-term advance for yew forest assets - related parties | 4,854,273 | |
Operating lease right-of-use assets | 333,402 | 399,817 |
Total Long-term Assets | 48,457,278 | 42,535,356 |
Total Assets | 58,446,662 | 54,206,717 |
CURRENT LIABILITIES: | ||
Accounts payable for acquisition of yew forests and others | 423,881 | 920,459 |
Accounts payable for acquisition of yew forests and others - related parties | 16,629 | |
Advance from customers | 985 | 50,071 |
Accrued expenses and other payables | 403,509 | 266,749 |
Due to related parties | 651,360 | 633,779 |
Short-term borrowings | 8,979,899 | 8,541,517 |
Operating lease liabilities, current | 65,476 | 52,104 |
Total Current Liabilities | 10,525,110 | 10,481,308 |
NONCURRENT LIABILITIES: | ||
Taxes payable, noncurrent | 973,647 | 1,088,194 |
Long-term deferred income | 1,172,928 | 892,375 |
Operating lease liabilities, noncurrent | 292,409 | 351,145 |
Total Noncurrent Liabilities | 2,438,984 | 2,331,714 |
Total Liabilities | 12,964,094 | 12,813,022 |
SHAREHOLDERS' EQUITY: | ||
Common Stock: $0.001 par value; 140,000,000 shares authorized; 51,700,000 shares issued and outstanding | 51,700 | 51,700 |
Additional paid-in capital | 9,644,731 | 9,819,828 |
Retained earnings | 31,415,605 | 29,950,723 |
Statutory reserves | 3,762,288 | 3,762,288 |
Accumulated other comprehensive income (loss) | 608,244 | (2,190,844) |
Total Shareholders' Equity | 45,482,568 | 41,393,695 |
Total Liabilities and Shareholders' Equity | $ 58,446,662 | $ 54,206,717 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
REVENUES: | ||
Revenues | $ 889,238 | $ 10,033,273 |
Revenues - related parties | 26,418,449 | 17,850,376 |
Total Revenues | 27,307,687 | 27,883,649 |
COST OF REVENUES: | ||
Cost of revenues | 1,395,137 | 10,002,609 |
Cost of revenues - related parties | 22,385,535 | 17,106,909 |
Total Cost of Revenues | 23,780,672 | 27,109,518 |
GROSS PROFIT | 3,527,015 | 774,131 |
OPERATING EXPENSES: | ||
Selling, general and administrative | 988,974 | 1,166,557 |
Bad debt recovery | (30,658) | (1,688,406) |
Stock-based compensation | 284,461 | |
Total Operating Expenses (Gain) | 958,316 | (237,388) |
INCOME FROM OPERATIONS | 2,568,699 | 1,011,519 |
OTHER INCOME (EXPENSES): | ||
Interest expense | (481,852) | (390,380) |
Other income | 15,239 | 57,386 |
Exchange (loss) gain | (608,436) | 318,195 |
Total Other Expenses | (1,075,049) | (14,799) |
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,493,650 | 996,720 |
PROVISION FOR INCOME TAXES | (28,768) | (11,214) |
NET INCOME | 1,464,882 | 985,506 |
COMPREHENSIVE INCOME (LOSS): | ||
NET INCOME | 1,464,882 | 985,506 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||
Foreign currency translation adjustment | 2,799,088 | (544,809) |
COMPREHENSIVE INCOME | $ 4,263,970 | $ 440,697 |
NET INCOME PER COMMON SHARE: | ||
Basic and diluted | $ 0.03 | $ 0.02 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||
Basic and diluted | 51,700,000 | 51,760,616 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Statutory Reserve [Member] | Accumulated 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) | |||||
Stock-based compensation | 284,461 | 284,461 | ||||
Purchase of yew forest assets from entity under common control with price over carrying amount | (418,502) | (418,502) | ||||
Net income | 985,506 | 985,506 | ||||
Foreign currency translation adjustment | (544,809) | (544,809) | ||||
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 | |||||
Purchase of yew forest assets from entity under common control with price over carrying amount | (175,097) | (175,097) | ||||
Net income | 1,464,882 | 1,464,882 | ||||
Foreign currency translation adjustment | 2,799,088 | 2,799,088 | ||||
Balance, at Dec. 31, 2020 | $ 51,700 | $ 9,644,731 | $ 31,415,605 | $ 3,762,288 | $ 608,244 | $ 45,482,568 |
Balance, shares at Dec. 31, 2020 | 51,700,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,464,882 | $ 985,506 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Bad debt recovery | (30,658) | (1,688,406) |
Depreciation and amortization | 56,272 | 59,703 |
Gain on disposal of PPE | (9,046) | |
Inventory E&O reserve | 733,052 | 168,415 |
Stock-based compensation | 284,461 | |
Amortization of land use rights and yew forest assets | 2,760,715 | 1,767,342 |
Sale of yew forest assets | 10,065,095 | 7,643,574 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 7,560,527 | (7,741,823) |
Accounts receivable - related parties | (8,336,068) | 6,052,985 |
Prepaid expenses and other current assets | (15,644) | (623) |
Prepaid expenses - related parties | 5,884 | 26,294 |
Inventories | 2,738,890 | 3,588,572 |
VAT input credit | 298,768 | 629,327 |
Accounts payable | (96,937) | (136,529) |
Accounts payable - related parties | (16,785) | 16,772 |
Accrued expenses and other payables | 122,189 | (91,545) |
Advances from customer | (49,609) | 50,358 |
Advance from customer-related party | (21,200) | |
Due to related parties | (14,157) | (4,054) |
Taxes payable | (115,729) | (187,724) |
Deferred income | 209,399 | 561,298 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 17,340,086 | 11,953,657 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Prepayments made to related parties for purchase of yew forest assets | (4,594,469) | |
Purchase of property and equipment | (54,921) | (25,950) |
Purchase of intangible assets | (632) | |
Proceeds from disposal of property and equipment | 12,758 | |
Purchase of land use rights and yew forest assets | (12,706,707) | (14,655,364) |
NET CASH USED IN INVESTING ACTIVITIES | (17,356,097) | (14,669,188) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term borrowings | 11,813,654 | 11,905,059 |
Repayments of short-term borrowings | (11,933,584) | (9,059,529) |
Proceeds from SBA loans | 79,920 | |
Proceeds from related parties | 25,532 | 89,221 |
Repayments to related parties | (30,000) | |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (14,478) | 2,904,751 |
EFFECT OF EXCHANGE RATE ON CASH | (148,013) | 31,404 |
NET (DECREASE) INCREASE IN CASH | (178,502) | 220,624 |
CASH - Beginning of the year | 742,294 | 521,670 |
CASH - End of the year | 563,792 | 742,294 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for: Interest | 352,434 | 400,986 |
Cash paid for: Income taxes | 115,327 | 198,573 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Operating expense paid by related party | 1,737 | |
Payable for acquisition of yew forests | 795,547 | |
Payable for acquisition of yew forests-related parties | $ 175,097 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization and Principal Activities | NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES Yew Bio-Pharm Group, Inc. (individually “YBP” and collectively with its subsidiaries and affiliates, the “Company”) was incorporated under the law of the State of Nevada on November 13, 2007. On October 29, 2009, YBP established a wholly-owned subsidiary, Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”), a wholly-owned foreign enterprise (“WOFE”) incorporated in the People’s Republic of China (“PRC”), as part of a restructure of the Company (the “First Restructure”). Harbin Yew Science and Technology Development Co., Ltd. (“HDS”) is a limited liability company incorporated under the laws of the PRC on August 22, 1996. Until February 23, 2010, HDS was primarily owned by Zhiguo Wang (“Mr. Wang”) (62.81%) and his wife Guifang Qi directly and indirectly (91.96%) and two PRC individuals (total 9.04%) (collectively as the “Original Shareholders”). Mr. Wang was the President and a director of the Company. Madame Qi is the wife of Mr. Wang and was an officer and director of the Company. Pursuant to the First Restructure, on February 23, 2010, the Company, through JSJ, entered into an Equity Transfer Agreement (collectively, the “First Transfer Agreements”) with each of the Original Shareholders. Pursuant to the First Transfer Agreements, the terms of which are substantially identical to each other, the Original Shareholders transferred all of their respective ownership in HDS to JSJ for an aggregate RMB45,000,000, which represents the amount of the then registered capital of HDS. As a result of this transaction, HDS became a wholly-owned subsidiary of JSJ. At February 23, 2010, the Company did not have sufficient working capital to pay the purchase amount and, accordingly, the Company recorded this amount as a liability. JSJ and the Original Shareholders also entered into a Supplemental Agreement dated February 26, 2010 (the “First Supplemental Agreement”), pursuant to which JSJ had the right to put the shares of HDS back to the Original Shareholders for the original purchase price of an aggregate RMB45,000,000, in the event that the transaction did not close or PRC governmental approval was not received, within six months following the execution of the First Transfer Agreements. Upon execution of the First Transfer Agreement, Mr. Wang, Madame Qi and Mr. Han (collectively, the “HDS Shareholders”) owned approximately 41.5% of YBP’s common stock (the “Common Stock”) and no other individual shareholder owned more than 2.5% of YBP’s Common Stock. Before, during and after the First Restructure, the HDS Shareholders served as the sole directors and principal executive officers of the Company and are responsible for all decisions and operations of the Company and HDS, and control the assets of the Company and HDS. On May 10, 2010, JSJ, Mr. Wang entered into a Debtor’s and Creditors’ Rights Agreement (the “Creditors’ Agreement”) with the rest Original Shareholders except Madame Qi, who agree to assign their rights, including the right to be paid for the HDS shares transferred to JSJ, under their respective First Transfer Agreements, to Mr. Wang, and Mr. Wang assumed the obligations of Mr. Jiang and HEFS under their respective First Transfer Agreements. Before, during and after the First Restructure, the HDS Shareholders served as the sole directors and principal executive officers of the Company. In October 2010, the Company determined, in consultation with its professional advisors, that the First Restructure did not meet certain technical PRC legal requirements and that the Company would need to be further reorganized (the “Second Restructure”). Accordingly, on October 28, 2010, JSJ and each of the HDS Shareholders entered into new Equity Transfer Agreement (collectively, the “Second Transfer Agreements”), the terms of which are substantially identical to each other, pursuant to which 100% of the common stock of HDS was transferred by JSJ back to the HDS Shareholders for aggregate consideration of RMB45,000,000. Since the consideration of RMB45,000,000 due to the HDS Shareholders in the First Restructure had not yet been paid, pursuant to a Supplemental Agreement to the Second Equity Transfer Agreements dated February 16, 2011, the aggregate RMB45,000,000 amount payable by the HDS Shareholders to JSJ for the return of their HDS common stock in respect of the Second Restructure, was offset against JSJ’s liability to the HDS Shareholders in the same aggregate amount in respect of the First Transfer Agreements, which amount had not yet been paid by JSJ. As discussed above, Mr. Jiang and HEFS had assigned to Mr. Wang their respective rights and obligations vis-a-vis JSJ resulting from the First Restructure, pursuant to the First Supplemental Agreement and the Creditors’ Agreement, since as of such time Mr. Jiang and HEFS had not yet been paid for the transfer of their interests in HDS to JSJ in the First Restructure in the amount of 3.22% and 10.62% of HDS’s equity interest, respectively. Therefore, in the Second Restructure, pursuant to the Second Transfer Agreements, JSJ transferred to Mr. Wang not only his previous shareholdings in HDS before the First Restructure (representing 62.81% of HDS’s total equity), but also an additional 13.84% of the equity in HDS as a result of Mr. Wang’s being assigned Mr. Jiang’s 3.22% equity interest in HDS and HEFS’s 10.62% equity interest in HDS. After the foregoing transactions were completed, the HDS Shareholders then owned 100% of the shares of HDS in the following percentages: Mr. Wang 76.65 % Madame Qi 18.53 % Mr. Han 4.82 % 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. On November 29, 2010, YBP established a wholly-owned subsidiary, Yew Bio-Pharm Holdings Limited (“Yew Bio-Pharm (HK)”), a limited liability company incorporated under the laws of Hong Kong and on January 26, 2011, YBP transferred its ownership in JSJ to Yew Bio-Pharm (HK). 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. As required by ASC 810-10, the Company performs a qualitative assessment to determine whether the Company is the primary beneficiary of HDS which is identified as a VIE of the Company. A quality assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities including terms of the contracts entered into by the entity, ownership interests issued by the entity and the parties involved in the design of the entity. The Company’s assessment on the involvement with HDS reveals that the Company has the absolute power to direct the most significant activities that impact the economic performance of HDS. JSJ is obligated to absorb a majority of the risk of loss from HDS activities and entitles JSJ to receive a majority of HDS’s expected residual returns. In addition, HDS’s shareholders have pledged their equity interest in HDS to JSJ, irrevocably granted JSJ an exclusive option to purchase, to the extent permitted under PRC Law, all or part of the equity interests in HDS and agreed to entrust all the rights to exercise their voting power to the person(s) appointed by JSJ. Under the accounting guidance, the Company is deemed to be the primary beneficiary of HDS and the results of HDS are consolidated in the Company’s consolidated financial statements for financial reporting purposes. Accordingly, as a VIE, HDS’s sales are included in the Company’s total sales, its income from operations is consolidated with the Company’s and the Company’s net income includes all of HDS’s net income. The Company does not have any non-controlling interest and, accordingly, did not subtract any net income in calculating the net income attributable to the Company. Because of the Contractual Arrangements, YBP has a pecuniary interest in HDS that requires consolidation of HDS’s financial statements with those of the Company. Additionally, pursuant to ASC 805, as YBP and HDS are under the common control of the HDS Shareholders, the Second Restructure was accounted for in a manner similar to a pooling of interests. As a result, the Company’s historical amounts in the accompanying consolidated financial statements give retrospective effect to the Second Restructure, whereby the assets and liabilities of the Company are reflected at the historical carrying values and their operations are presented as if they were consolidated for all periods presented, with the results of the Company being consolidated from the date of the Second Transfer Agreement. The accounts of HDS are consolidated in the accompanying financial statements. As of December 31, 2020, the Company agreed to waive all management fees to be payable by HDS and the Company expects to waive such management fees in the near future due to a need of working capital in HDS to expand HDS’s operations. On November 4, 2014, HDS established a new subsidiary, Harbin Yew Food Co. Ltd. (“HYF”), to develop and cultivate wood ear mushroom. The Company plans to operate three production lines, including wood ear mushroom polysaccharide, powder, tea and other packaged wood ear mushroom products. The move marks the Company’s entrance into the organic food and functional beverage market. HYF had limited operation activities for the years ended December 31, 2020 and 2019. On June 8, 2016, YBP established a new subsidiary, MC Commerce Holding Inc. (“MC”), in the State of California to sell yew oil candles and yew oil soaps in American market. MC had limited operation activities for the years ended December 31, 2020 and 2019. On July 26, 2016, YBP transferred its 49% equity interest in MC to HDS. The Company is principally engaged in (1) processing and selling yew raw materials used in the manufacture of traditional Chinese medicine (“TCM”); (2) growing and selling yew tree seedlings and mature trees, including potted miniature yew trees; (3) manufacturing and selling furniture and handicrafts made of yew tree timber; and (4) selling agricultural products and export products (Yew candles, pine needle extracts, complex taxus cuspidate extract, composite northeast yew extract, and yew essential oil soap). The Company’s operating VIE and its subsidiary are located in Harbin, Heilongjiang Province, China. 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. At December 31, 2020 and 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: December 31, 2020 December 31, 2019 Assets Cash $ 549,771 $ 688,863 Accounts receivable 250,000 7,692,600 Accounts receivable - related parties, net 9,045,669 193,000 Inventories (current and noncurrent), net 416,304 2,991,237 Prepaid expenses and other assets 75,866 37,202 Prepaid expenses - related parties - 5,829 Advance to suppliers 15,415 - Advance to suppliers - related parties 4,854,273 - Property and equipment, net 483,139 466,025 Long-term investment in an affiliate 4,172,550 3,009,527 Land use rights and yew forest assets, net 41,952,483 40,048,696 Operating lease right of use 236,833 259,331 VAT input credit 56,637 349,096 Total assets of VIE and its subsidiary $ 62,108,940 $ 55,741,406 Liabilities Accrued expenses and other payables $ 271,312 $ 131,420 Accounts payable for acquisition of yew forests and others 389,028 796,346 Accounts payable for acquisition of yew forests and others - related parties - 16,629 Advance from customer 985 50,071 Short-term borrowings 8,899,979 8,541,517 Operating lease liability, current and noncurrent 259,686 262,763 Long-term deferred income 1,172,928 892,375 Due to related parties and VIE holding companies 97,461 614,265 Total liabilities of VIE and its subsidiary $ 11,091,379 $ 11,305,386 Although the structure the Company has adopted is consistent with longstanding industry practice, and is commonly adopted by comparable companies in China, the PRC government may not agree that these arrangements comply with PRC licensing, registration or other regulatory requirements, with existing policies or with requirements or policies that may be adopted in the future. There are uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the Company’s contractual arrangements, which could limit the Company’s ability to enforce these contractual arrangements. If the Company or any of its variable interest entities are found to be in violation of any existing or future PRC laws, rules or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion to take action in dealing with such violations or failures, including levying fines, revoking business and other licenses of the Company’s variable interest entities, requiring the Company to discontinue or restrict its operations, restricting its right to collect revenue, requiring the Company to restructure its operations or taking other regulatory or enforcement actions against the Company. In addition, it is unclear what impact the PRC government actions would have on the Company and on its ability to consolidate the financial results of its variable interest entities in the consolidated financial statements, if the PRC government authorities were to find the Company’s legal structure and contractual arrangements to be in violation of PRC laws, rules and regulations. If the imposition of any of these government actions causes the Company to lose its right to direct the activities of HDS and through HDS’s equity interest in its subsidiary or the right to receive their economic benefits, the Company would no longer be able to consolidate the HDS and its subsidiary. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Principles of Consolidation [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. Details of the Company’s subsidiaries and variable interest entities (“VIE”) are as follows: Name Domicile and Date of Incorporation Registered Capital Effective Ownership Principal Activities Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”) PRC October 29, 2009 US$ 100,000 100 % Holding company Yew Bio-Pharm Holdings Limited (“Yew Bio-Pharm (HK)”) Hong Kong November 29, 2010 HK$ 10,000 100 % Holding company of JSJ Harbin Yew Science and Technology Development Co., Ltd. (“HDS”) PRC August 22, 1996 RMB 45,000,000 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 composite northeast yew extract Harbin Yew Food Co., Ltd (“HYF”) PRC November 4, 2014 RMB 100,000 100 % (1) Sales of wood ear mushroom drink MC Commerce Holding Inc.(“MC”) State of California, United State June 8, 2016 100 % (2) Sales of yew oil candles and yew oil soaps Harbin Jingchibai Bio-Technology Development Co., Limited (“JCB”) PRC March 18, 2020 RMB 1,000,000 51 % (3) Sales of yew oil candles and yew oil soaps, no active operation since its incorporation Yew (Guangzhou) Bio-Technology Co., Ltd PRC December RMB 10,000,000 80 % Cosmetic marketing and sales (1) Wholly-owned subsidiary of HDS (2) 51% owned by YBP and 49% owned by HDS (3) JCB was cancelled of its registration on December 3, 2020 Method of accounting The Company maintains its general ledger and journals with the accrual method accounting for financial reporting purposes. The consolidated financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of consolidated financial statements. Use of estimates The preparation of consolidated financial statements in accordance with generally accepted accounting principles in the United State of America (“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 may differ from these estimates under different assumptions or conditions. Significant estimates include allowance for accounts receivable, slow-moving and obsolete inventory, the classification of short and long-term inventory, the useful life of property and equipment and land use rights and yew forest assets, assumptions used in assessing impairment of long-term assets, write-down in value of inventory and the valuation of stock-based compensation. Fair value of financial instruments The Company adopted the guidance of Accounting Standards Codification (“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: ● Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. ● Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. ● Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash, accounts receivable, accounts payable, and short-term borrowings, approximate their fair market value based on the short-term maturity of these instruments. The Company did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2020 and 2019. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, freemarket dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature Concentrations of credit risk The Company’s operations are mainly conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. Substantially all of the Company’s cash is maintained with state-owned banks in the PRC, and part of deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. At December 31, 2020 and 2019, the Company’s cash balances by geographic area were as follows: December 31, 2020 December 31, 2019 Country: United States $ 3,071 0.5 % $ 46,855 6.3 % China 560,721 99.5 % 695,439 93.7 % Total cash $ 563,792 100.0 % $ 742,294 100.0 % 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 December 31, 2020, approximately $242,000 of the Company’s cash held by financial institutions, was insured, and the remaining balance of approximately $322,000 was not insured. As of December 31, 2019, approximately $216,000 of the Company’s cash held by financial institutions, was insured, and the remaining balance of approximately $526,000 was not insured. Cash For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments purchased with original maturities of three months or less and money market accounts to be cash equivalents. As of December 31, 2020 and 2019, the Company has no cash equivalents. Accounts receivable Accounts receivable are presented net of an allowance for doubtful accounts. If necessary, the Company shall maintain allowances for doubtful accounts for estimated losses. The Company reviews accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and economic trends. Accounts are written off after exhaustive efforts at collection. At December 31, 2020 and 2019, the Company has an allowance for doubtful accounts in the amount of $386,000 and $193,000, respectively. Inventories Inventories, consisting of raw materials, yew seedlings and finished goods related to the Company’s yew products are stated at the lower of cost or net realizable value, with cost computed on a weighted-average basis. Raw materials primarily include yew wood used in the production of yew products such as furniture, ornaments, and other products containing yew wood, yew foliage and tender conifer foliage. Finished goods consist of yew handicrafts, yew candles, pine needle extracts, yew essential oil soap, complex taxus cuspidate extract and composite northeast yew extract products. The Company estimates the amount of the excess inventories by comparing inventory on hand with the estimated sales that can be sold within its normal operating cycle of one year. Any inventory in excess of the Company’s current requirements based on historical and anticipated levels of sales is classified as long-term on its consolidated balance sheets. The Company’s classification of long-term inventory requires it to estimate the portion of inventory value that can be realized over the next 12 months. To estimate the amount of slow-moving or obsolete inventories, the Company analyzes movement of its products, monitors competing products and technologies and evaluates acceptance of its products. Periodically, the Company identifies inventories that cannot be sold at all or can only be sold at deeply discounted prices. An allowance will be established if management determines that certain inventories may not be saleable. If inventory costs exceed expected net realizable value due to obsolescence or slow-moving, the Company will record reserves for the difference between the carrying cost and the net realizable value, with cost computed on a weighted-average basis. In accordance with Accounting Standards Codification (“ASC”) 905, “Agriculture”, our costs of growing Yew seedlings are accumulated until the time of harvest and are reported at the lower of cost or net realizable value, with cost computed on a weighted-average basis. Property and equipment Property and equipment are carried at cost and are depreciated on a straight-line basis (after taking into account their respective estimated residual value) over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The estimated useful lives are as follows: Building 10-20 years Machinery and equipment 3-10 years Office equipment 2-5 years Motor vehicles 4-10 years Land use rights and yew forest assets All land in the PRC is owned by PRC government and cannot be sold to any individual or company. The Company has recorded the amounts paid to the PRC government to acquire long-term interests to utilize land use rights and yew forests. This type of arrangement is common for the use of land in the PRC. Yew trees on land containing yew tree forests will be used to supply raw materials such as branches, leaves and fruit to the Company. The Company amortizes land use rights based on their terms and yew forest assets over the shorter of the respective land use rights or expected useful lives, which generally ranges from 15 to 50 years. The lease agreements do not have any renewal option and the Company has no further obligations to the lessor. The Company records the amortization of these land use rights and yew forest assets as part of its cost of revenues. Impairment of long-lived assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. For the years ended December 31, 2020 and 2019, the Company determined that there was no impairment of long-lived assets. 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”) 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 14 - SEGMENT INFORMATION. Stock-based compensation The Company accounts for stock options and other equity-based compensation issued in accordance with ASC 718 “Stock Compensation” after adoption of ASC 2018-07 on January 1, 2019, which requires the measurement and recognition of compensation expense related to the fair value of equity-based compensation awards that are ultimately expected to vest. Stock-based compensation expense recognized includes the compensation cost for all share-based compensation payments granted to employees and nonemployees, net of estimated forfeitures, over the employees’ requisite service period or the non-employee performance period based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled during the periods reported. Please see Note 9 for additional information. Advertising Advertising is expensed as incurred and included in selling, general and administrative expenses in the accompanying Consolidated Statements of Operations and Comprehensive Income (loss). The Company incurred $Nil for the years ended December 31, 2020 and 2019. Employee benefits The Company’s major operations and most employees are located in the PRC. The Company makes mandatory contributions to the PRC government’s health, retirement benefit and unemployment funds in accordance with the relevant Chinese social security laws. The costs of these payments are charged to the same accounts and in the same period as the related salary costs and are not material. Income taxes The Company is governed by the Income Tax Law of the People’s Republic of China, Hong Kong and the United States. The Company accounts for income tax using the liability method prescribed by ASC 740, “ Income Taxes” The Company applied the provisions of ASC 740-10-50, “Accounting for Uncertainty in Income Taxes”, which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of December 31, 2020, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. Value added tax The Company is subject to value added tax (“VAT”). The applicable VAT rate is 13% for agricultural products, 16% for handicraft products, yew essential oil soap, yew candles, complex taxus cuspidate extract, composite northeast yew extract and pine needle extracts sold in the PRC for the years of 2020 and 2019. The amount of VAT liability is determined by applying the applicable tax rate to the amount of goods sold (output VAT) less VAT accrued on purchases made with the relevant supporting invoices (input VAT). Sales and purchases are recorded net of VAT (the amount of VAT is excluded from revenues and costs) collected and paid as the Company acts as an agent for the government. Government grants Government grants include cash and other subsidies received from the PRC government by the Company and its subsidiaries. Government grants are recognized when received and all the conditions specified in the grants have been met. As of December 31, 2020 and 2019, the Company has received government grants in the amounts of $1,172,928 and $892,375, respectively, for afforestation that were recorded initially as deferred income and recognized over the terms of the land use rights related to the yew forest assets the grants awarded to. Foreign currency translation The accompanying consolidated financial statements are presented in U.S. dollars (“USD”). The reporting currency of the Company is the USD. The functional currency of Yew Bio-Pharm (HK) is the Hong Kong dollar, and the functional currency of the Company’s VIEs and subsidiaries located in the PRC is the RMB. For the subsidiaries whose functional currencies are the Hong Kong dollar or RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income. The foreign currency translation adjustment included in comprehensive income (loss) for the years ended December 31, 2020 and 2019 amounted to $2,799,088 and $(544,809), respectively. The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions. The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the consolidated financial statements are as follows: 2020 2019 Exchange rate on balance sheet dates: USD: RMB exchange rate 6.5326 6.9668 Average exchange rate for the year USD: RMB exchange rate 6.9020 6.9072 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. In addition, the current foreign exchange control policies applicable in PRC also restrict the transfer of assets or dividends outside the PRC. Net income per share of common stock ASC 260 “ Earnings per Share Comprehensive income (loss) The Company follows ASC 220, “Comprehensive Income” to recognize the elements of comprehensive income. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive income (loss) for the years ended December 31, 2020 and 2019 included net income and unrealized gains (losses) from foreign currency translation adjustments. Operating leases The Company adopted ASC 842 “Leases” on January 1. 2019. The Company determines if an arrangement is a lease at inception and whether a contract is or contains a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. If the contract provides us the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, we consider it to be, or contain, a lease. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liability, and operating lease liability, non-current in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available in the market at commencement date in determining the present value of lease payments. Segment reporting The Company managed and reviewed its business as two operating segments: the business of HDS, JSJ and HYF in PRC was managed and reviewed as PRC segment and 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. Related party transactions A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities including such person’s immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Collaborative arrangement HDS entered into a Joint Venture Planting Agreement with Wuchang City Forestry Bureau on March 21, 2004 and four more Joint Venture Planting Agreements with Qingan State-owned Bureau (the “Qingan Forest Bureau”) in June 2018 and May 2019, respectively (see Note 6), which are considered collaborative arrangements under U.S. GAAP. The purpose of this arrangement is to share some of the risks and rewards associated with this Joint Venture Planting Agreement. The Company’s current shares of profits are 80% and 70% for the collaborative agreements with Wuchang City Forestry Bureau and Qingan State-owned Bureau entered dated on June 2018 and May 2019, respectively. The Company accounts for this collaborative arrangement under ASC 808, “Collaborative Arrangements” and related topics, and records revenue at a gross basis as the Company acts as a principal pursuant to ASC Topic 808-10-15. For the years ended December 31, 2020 and 2019, the Company has not generated any revenues or activity from this collaborative agreements. Recent Accounting Pronouncements Adopted 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. The Company adopted Topic 842 on its effective date of January 1, 2019 using a modified retrospective transition approach. 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 years ended December 31, 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 financial position and results of operations. Recent Accounting Pronouncements Not 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 December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which is intended to simplify various aspects related to accounting for income taxes. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020, with early adoption permitted. The standard will be adopted upon the effective date for us beginning January 1, 2021. The Company is currently evaluating the effects of the standard on our consolidated financial statements and related disclosures. 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. The management does not believe that other than disclosed above, accounting pronouncements the recently issued but not yet adopted will have a material impact on its financial position, results of operations or cash flows. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | NOTE 3 – 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 December 31, 2020 and 2019, inventories consisted of the following: December 31, 2020 December 31, 2019 Current portion Long-term portion Total Current portion Long-term portion Total Raw materials $ - $ 97,109 $ 97,109 $ 16,761 $ 91,056 $ 107,817 Finished goods 80,999 2,589,696 2,670,695 2,770,352 2,613,724 5,384,076 Total 80,999 2,686,805 2,767,804 2,787,113 2,704,780 5,491,893 Inventory reserve (66,391 ) (1,902,021 ) (1,968,412 ) (149,724 ) (1,125,165 ) (1,274,889 ) Inventories, net $ 14,608 $ 784,784 $ 799,392 $ 2,637,389 $ 1,579,615 $ 4,217,004 Inventories as of December 31, 2020 and 2019 consisted of the inventory purchased from related parties as follows: December 31, 2020 2019 Inventories, net $ - $ - Inventories - related parties, net 14,608 2,637,389 Total $ 14,608 $ 2,637,389 December 31, 2020 2019 Long-term inventories, net $ 416,305 $ 395,032 Long-term inventories - related parties, net 368,479 1,184,583 Total $ 784,784 $ 1,579,615 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | NOTE 4 - PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following as of December 31, 2020 and 2019: December 31, 2020 2019 Buildings and building improvements $ 671,491 $ 629,641 Motor vehicles 459,809 498,137 Machinery and equipment 535,061 501,713 Office equipment 144,189 35,424 1,810,550 1,664,915 Less: accumulated depreciation (1,321,355 ) (1,190,012 ) Total property and equipment, net $ 489,195 $ 474,903 For the years ended December 31, 2020 and 2019, depreciation expenses amounted to $56,272 and $59,703, respectively. |
Land Use Rights and Yew Forest
Land Use Rights and Yew Forest Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Land Use Rights and Yew Forest Assets, Net | NOTE 5 - LAND USE RIGHTS AND YEW FOREST ASSETS, NET There is no private ownership of land in PRC. Land is owned by the government and the government grants land use rights for specified terms. The following summarizes land use rights acquired by the Company: Yew trees on land containing yew tree forests will be used to supply raw materials, such as branches and leaves, the Company’s customers for production of TCM. The Company amortizes land use rights based on their terms and amortizes yew forest assets over the term of the respective land use rights or expected useful lives. The lease agreements do not have any renewal option and the Company has no further obligations to the lessor. The Company records the amortization of these land use rights and yew forest assets as part of its cost of revenues. At December 31, 2020 and 2019, land use rights and yew forest assets consisted of the following: Useful Life December 31, 2020 December 31, 2019 Land use rights and yew forest assets 15-50 years $ 46,281,816 $ 44,760,976 Less: accumulated amortization (4,329,333 ) (4,712,280 ) Land use rights and yew forest assets, net $ 41,952,483 $ 40,048,696 December 31, 2020 2019 Land use rights, net $ 268,199 $ 243,877 Yew forest assets, net 41,684,284 39,804,819 Land use rights and yew forest assets, net $ 41,952,483 $ 40,048,696 Amortization of land use rights and yew forest assets attributable to future periods is as follows: Years ending December 31: Land Use Right Yew Forest Assets Total Amortization 2021 $ 10,153 $ 2,901,814 $ 2,911,967 2022 10,153 2,901,814 2,911,967 2023 10,153 2,901,814 2,911,967 2024 10,153 2,901,814 2,911,967 2025 10,153 2,901,814 2,911,967 2026 and thereafter 217,434 27,175,214 27,392,648 Total, net $ 268,199 $ 41,684,284 $ 41,952,483 Joint Venture Planting Agreements On March 21, 2004, HDS entered into a Joint Venture Planting Agreement (the “Joint Venture Planting Agreement(s)”) with Wuchang City Forestry Bureau (the “Forest Bureau”), pursuant to which the Forest Bureau has given HDS access to 1,000,000 mu of forest land located in Wuchang City to develop yew tree forests and produce yew seedlings. The Company is required to plant and maintain yew trees on this forest land from 2004 to 2034. Any profits from the planting and sales of yew trees and other agriculture shall be distributed 80% to the Company and 20% to the Forest Bureau. For the years ended December 31, 2020 and 2019, the Company has not generated any revenues or activity on this land. On June 14, 2018 and May 16, 2019, HDS entered into four Joint Venture Planting Agreements with Qingan State-owned Forestry Bureau (the “Qingan Forest Bureau”), pursuant to which the Qingan Forest Bureau grant HDS access to the forest land totally 15,730 mu located in Qingan City to develop yew tree forests and produce yew seedlings and foliage. Pursuant to the Joint Venture Agreement, the Company is required to plant and maintain yew trees on this forest land for 20 and 30 years, respectively. Any profits from the planting and/or sale of yew trees and other agriculture shall be distributed 70-80% to the Company and 20-30% to the Qingan Forest Bureau. The Company accounts for the collaborative arrangements in accordance with ASC 808, “Collaborative Arrangements” and related topics, and records the forest lands grant under yew forest assets and revenue at a gross basis as the Company acts as a principal pursuant to the Joint Venture Planning Agreement. For the year ended December 31, 2020, the Company has not generated any revenues from the forest lands governed by the Joint Venture Agreements. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Taxes | NOTE 6 - TAXES (a) Federal Income Tax and Enterprise Income Taxes Provision for income taxes for the years ended December 31, 2020 and 2019 consisted of: Year ended December 31, 2020 Federal State Foreign Total Current $ - $ 780 $ 27,968 $ 28,768 Deferred - - - - Total $ - $ 780 $ 27,968 $ 28,768 Year ended December 31, 2019 Federal State Foreign Total Current $ (9,889 ) $ - $ 21,103 $ 11,214 Deferred - - - - Total $ (9,889 ) $ - $ 21,103 $ 11,214 Significant components of the deferred tax assets and liabilities for income taxes as of December 31, 2020 and 2019 consisted of the following: December 31, 2020 2019 Deferred tax assets Net operating loss carry-forward $ 384,987 $ 361,712 Inventory write-down - 311,536 Total 384,987 673,248 Valuation allowance (384,987 ) (673,248 ) Net deferred tax assets $ - $ - The Company, YBP, registered in the State of Nevada, and its subsidiary, MC, registered in the State of California, are subject to the United States federal income tax at a tax rate of 21%. $780 and $(9,889) of provision for income taxes for YBP has been made as of December 31, 2020 and 2019, respectively. No provision for income taxes for MC has been made as MC had no U.S. taxable income as of December 31, 2020 and 2019. The Company’s subsidiary, Yew Bio-Pharm (HK), is incorporated in Hong Kong and has no operating profit or tax liabilities during the years. Yew Bio-Pharm (HK) is subject to tax at 16.5% on the assessable profits arising in or derived from Hong Kong. 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 the exception of sales of handicrafts, yew candle, pine needle extracts and yew essential oil soap which are not within the scope of agricultural area. For the years ended December 31, 2020 and 2019, the provision for income taxes was $28,768 and $11,214, respectively. As of December 31, 2020, the income tax payable, current and noncurrent were $115,327 and $973,647, respectively. The table below summarizes the difference between the U.S. statutory federal tax rate and the Company’s effective tax rate for the years ended December 31, 2020 and 2019: Years Ended December 31, 2020 2019 U.S. federal income tax rate 21.0 % 21.0 % Tax rate difference 7.4 % 8.0 % PRC tax exemption (44.6 )% (51.6 )% Income tax from previous year - % (1.0 )% Income tax on undistributed earnings - % - % GILTI tax - % - % Others 0.1 % 2.1 % Valuation allowance 18.0 % 22.6 % Effective tax rate 1.9 % 1.1 % For U.S. income tax purposes, the Company has no cumulative undistributed earnings of foreign subsidiary and VIE as of December 31, 2020 and 2019, respectively. Accordingly, no provision has been made for U.S. deferred taxes related to future repatriation of these earnings, nor is it practicable to estimate the amount of income taxes that would have to be provided if we concluded that such earnings will be remitted to the U.S. in the future. The U.S. Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017 and imposed a mandatory one-time tax on accumulated earnings of foreign subsidiaries, introducing new tax regimes, and imposed a mandatory one-time tax on accumulated earnings of foreign subsidiaries, introducing new tax regimes, and changing how foreign earnings are subject to U.S. tax. The one-time transition tax, based on the Company’s total post-1986 earnings and profits (“E&P”) that it previously deferred from U.S. income taxes, is recognized a one-time transition tax of $1,431,835 for the transition tax on accumulated undistributed earnings of non-U.S. subsidiaries during the year ended December 31, 2018. The Company elected to pay the one-time transition tax over eight years commencing in 2018. For the years ended December 31, 2020 and 2019, $114,547 and $114,547 transition tax payments have been made, 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. 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 years ended December 31, 2020 and 2019, no GILTI tax expense was recorded and no GILTI tax payable outstanding as of December 31, 2020 and 2019. ASC 740 requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. The management evaluated the Company’s tax positions and considered that no provision for uncertainty in income taxes was necessary as of December 31, 2020 and 2019. In the normal course of business, the Company is subject to examination by taxing authorities. With few exceptions, the Company is no longer subject to U.S. federal income tax examinations for years before 2017. (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, 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 up to December 31, 2020. 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 credits. 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. As of December 31, 2020 and 2019, the Company held $56,637 and $349,096 VAT input credit, respectively. |
Short-Term Borrowings and Note
Short-Term Borrowings and Note Payable | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Note Payable | NOTE 7 - SHORT-TERM BORROWINGS AND NOTE PAYABLE Loans from China Everbright Bank 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, resulted the initial line of credit was paid off in its entirety. As of December 31, 2020 and 2019, the Company held approximately Loans from Bank of Yingkou On August 2018, HDS entered into two loan agreements with Bank of Yingkou Harbin Branch (“Yingkou Bank”), through which HDS obtained two bank loans in the amounts of RMB15 million (approximately $2,153,000) and RMB5 million (approximately $718,000) each with one year term. 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 July 26, 2019, HDS entered into a loan agreement with Bank of Yingkou Harbin Branch (“Yingkou Bank”), through which HDS obtained a bank loan in the amount of RMB15 million (approximately $2,153,000), payable on July 25, 2020. The loan carried 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 December 31, 2020 and 2019, approximately $2,300,000 (RMB 15 million) and $2,153,000 (RMB 15 million) were outstanding under the loan agreement, 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 December 31, 2020 and 2019, approximately $765,000 (RMB5 million) and $718,000 (RMB5 million) were outstanding under the loan agreement, respectively. Loan from Postal Saving Bank of China On May 13, 2019, HDS entered into a credit agreement with Postal Saving Bank of China who 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 December 31, 2020 and 2019, approximately $3,100,000 (RMB20 million) and $2,900,00 (RMB20 million) were outstanding under the line of credit, respectively. SBA loans On May 1, 2020, the Company got a Promissory Note (the “Note”) of $70,920 from 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 the program terms, 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. $70,920 PPP Loan was outstanding as of December 31, 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. Other loan 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. During the years ended December 31, 2020 and 2019, interest expense was $481,852 and $390,380, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | NOTE 8 – STOCK-BASED COMPENSATION The Company’s board of Directors adopted 2012 Equity Incentive Plan (“2012 Plan”) and 2019 Equity Incentive Plan (“2019 Plan”) on September 25, 2012 and October 29, 2019, respectively. Pursuant to the 2012 Plan and 2019 Plan, the Company authorized to issue and reserved up to 15,000,000 and 5,000,000 shares of common stock for grants to employees and non-employees, respectively. The per share price upon exercise of an option will be determined by the Company’s compensation committee in its discretion on the date of grant, provided that such price will not be less than 100% and 80% of the fair market Value of the common stock on the date of grant to a qualified and a non-qualified stock option, respectively. Vesting terms of stock options are determined in the discretion of our compensation committee. The maximum term of stock options granted under the both Plans is 10 years. As of December 31, 2020 and 2019, the Company has totally grant 7,738,737 shares of options with life term from two to four years, and the shares available to grant under the 2012 Equity Incentive Plan was 2,261,263. On February 28, 2019, the Company entered into an agreement with Chineseinvestor.com, pursuant to which both parties reached an agreement to cancel to issue the common shares of 375,000 to Chineseinvestor. On October 3, 2019 the Board approved to extend the expiration date of 5,000,000 options issued to Zhiguo Wang and 2,488,737 options issued to Guifang Qi from December 31, 2019 to December 31, 2021, and 200,000 options issued to William B. Barnett from October 11, 2019 to December 31, 2021. The Company treated these extensions as modifications of the awards upon their extraordinary services rendered to the Company and recognized incremental compensation cost. The Company measured the incremental compensation cost as the excess of the fair value of the modified award over the fair value of the original award immediately before its terms were modified. As a result of these modifications, the Company recognized incremental compensation cost of $284,461 in stock-based compensation expense during the year ended December 31, 2019, and the weighted average remaining contractual life was changed to 2 years. The fair value of the Company’s option as of the date of revaluation upon modification on October 3, 2019 was determined using the following management assumptions: Name of Optionee Expected Terms (In Years) Computed Volatility Risk free Interest Rate (%) Expected Dividends Fair Value Before the modification Zhiguo Wang 0.25 125 % 1.70 - 9,285 Guifang Qi 0.25 125 % 1.70 - 4,622 William B. Barnett 0.02 29 % 1.78 - - After the modification Zhiguo Wang 2.25 127 % 1.39 - 194,285 Guifang Qi 2.25 127 % 1.39 - 96,705 William B. Barnett 2.25 127 % 1.39 - 7,378 Stock option activities for the years ended December 31, 2020 and 2019 are summarized in the following table. Year Ended December 31, 2020 Year Ended December 31, 2019 Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Balance at beginning of year 7,738,737 $ 0.22 2.0 7,738,737 $ 0.22 3.0 Issued - - - - Exercised - - - - Expired - - - - Forfeited - - - - Balance at end of year 7,738,737 $ 0.22 1.0 7,738,737 $ 0.22 2.0 Options exercisable at end of year 7,738,737 $ 0.22 1.0 7,738,737 $ 0.22 2.0 The following table summarizes the shares of the Company’s common stock issuable upon exercise of options outstanding at December 31, 2020: Stock Options Outstanding Stock Options Exercisable Range of Exercise Price Number Outstanding at December 31, 2020 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable at December 31, 2020 Weighted Average Exercise Price $ 0.22-0.25 7,738,737 1.00 $ 0.22 7,738,737 $ 0.22 The Company’s outstanding stock options and exercisable stock options had intrinsic value of $0, based upon the Company’s closing stock price of $0.11 as of December 31, 2020. Stock option expense recognized during the years ended December 31, 2020 and 2019 amounted to $Nil and $284,461, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 9 - EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted net income per share for the years ended December 31, 2020 and 2019: For the Years Ended December 31, 2020 2019 Net income (loss) available to common stockholders for basic and diluted net income per share of common stock $ 2,180,982 $ 985,506 Weighted average common stock outstanding - basic 51,700,000 51,760,616 Effect of dilutive securities: Stock options issued to directors/officers/employees - - Weighted average common stock outstanding - diluted 51,700,000 51,760,616 Net income (loss) per common share - basic $ 0.04 $ 0.02 Net income (loss) per common share - diluted $ 0.04 $ 0.02 Diluted net income (loss) per share is computed using the weighted average number of common shares and dilutive potential common shares outstanding during the respective periods. The anti-dilutive securities included options to purchase common shares are 7,738,737 and 7,738,737 on a weighted average basis for the years ended December 31, 2020 and 2019, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | NOTE 10 - 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 For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 Operating lease cost Selling, general and administrative expense $ 74,172 $ 128,664 Net lease cost $ 74,172 $ 128,664 Balance sheet information related to leases consists of the following: Classification As of December 31, As of December 31, Assets Operating lease ROU assets Right-of-use assets $ 333,402 $ 399,817 Total leased assets $ 333,402 $ 399,817 Liabilities Current portion Operating lease liabilities Current maturities of operating lease liabilities $ 65,476 $ 52,104 Non-current portion Operating lease liabilities Operating lease liabilities 292,409 351,145 Total lease liabilities $ 357,885 $ 403,249 Weighted average remaining lease term Operating leases 10.9 years 6.2 years Weighted average discount rate Operating leases 6.44 6.44 Cash flow information related to leases consists of the following: For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 74,401 $ 127,127 The minimum future lease payments as of December 31, 2020 are as follows: Years Ending December 31, Operating Leases 2021 $ 79,997 2022 80,327 2023 33,594 2024 29,332 2025 26,314 Thereafter 211,830 Total lease payments 461,393 Less: Interest (76,608 ) Present value of lease liabilities $ 384,785 |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Major Customers | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk and Major Customers | NOTE 11 - CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS Customers For the years ended December 31, 2020 and 2019, customers accounting for 10% or more of the Company’s revenue were as follows: Revenue For the Years Ended AR as of December 31, December 31, Customer 2020 2019 2020 2019 A (Yew Pharmaceutical, a related party) 61.0 % 38.4 % 32.2 % - B (HongKong YIDA Commerce Co., Limited, a related party) * 25.6 % * 2.5 % C (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) * 34.1 % * 97.6 % D (LIFEFORFUN LIMITED, a related party) 25.8 % - 65.2 % - * Less than 10% Suppliers For the years ended December 31, 2020 and 2019, suppliers accounting for 10% or more of the Company’s purchase were and major suppliers whose accounts payable accounted for 10% or more of the Company’s total accounts payable as follows: Purchase For the Years Ended AP as of December 31, December 31, Customer 2020 2019 2020 2019 A (Yew Pharmaceutical, a related party) 40.1 % 47 % - - E (Heilongjiang Weishahe Agriculture Technology Co., Ltd) 10.2 % *% 68.3 % 85.3 % F (Xingcai Shi) *% *% 18.1 % - * Less than 10% |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 12 - 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 HongKong 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 years ended December 31, 2020 and 2019, total revenues from Yew Pharmaceutical under the above agreement amounted to $16,659,547 and $10,705,727, and the corresponding cost of revenues amounted to $14,792,713 and $9,962,940, respectively. At December 31, 2020 and 2019, the Company had $2,982,114 and $Nil accounts receivable from Yew Pharmaceutical, respectively. For the years ended December 31, 2020 and 2019, the total purchase of yew candles, yew essential oil soap, complex taxus cuspidate extract, composite northeast yew extract, wood ear mushroom extract, and pine needle extracts from Yew Pharmaceutical amounted to $7,980,296 and $13,299,780, respectively. For the years ended December 31, 2020 and 2019, the products purchased from Yew Pharmaceutical in the amount of $ 10,059,610 Transactions with HBP For the years ended December 31, 2020 and 2019, HBP paid off operation expense on behalf of HYF in the amount of $Nil and $1,737. As of December 31, 2020 and 2019, HYF had due to HBP in the amount of $96,282 and $103,158, respectively, which was included in due to related parties in the accompanying consolidated balance sheets. Transactions with Lifeforfun Limited For the years ended December 31, 2020 and 2019, total revenues from Lifeforfun Limited amounted to $7,056,000 and $Nil. As of December 31, 2020 and 2019, the Company had $6,036,080 and $Nil accounts receivable from Lifeforfun Limited, respectively. 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 year ended December 31, 2020, total revenues from DMSU amounted to $2,592,000. The company collected approximately $2,753,000 from DMSU during the year of 2020, of which $161,000 was recorded as recovery of accounts receivable due from DMSU previously written off under 2018 sales contracts. The company further collected approximately $757,000 from DMSU subsequently during the first quarter. For the year ended December 31, 2019, there was $Nil sales transaction the Company conducted with DMSU. The Company recovered approximately $1,034,000 of accounts receivable previously written off from DMSU. The amount 1,034,000 was recorded in bad debt recovery. Transactions with YIDA For the years ended December 31, 2020 and 2019, total revenues from YIDA amounted to $Nil and $7,144,649. As of December 31, 2020 and 2019, the Company had $Nil and $193,000 accounts receivable, which were net of allowance for doubtful account $386,000 and $193,000 from YIDA, respectively. Transactions with ZTC For the years ended December 31, 2020 and 2019, HDS purchased yew forest assets from ZTC in the amount of $1,057,664 and $2,121,880, respectively. Since the assets purchase occurred between entities under common control, the Company recorded the assets received at historical carrying costs recorded by ZTC, which amounted to $935,885 and $1,729,793, respectively. The differences between the actual contract price and carrying costs are recorded as additional paid-in capital in the amount of $121,779 and $392,087, respectively. As of December 31, 2020 and 2019, the Company had $124,150 and $Nil advance to ZTC, respectively. Transactions with Xinlin For the years ended December 31, 2020 and 2019, HDS purchased yew forest assets from Xinlin in the amount of $463,634 and $148,396, respectively. Since the assets purchase occurred between entities under common control, the Company recorded the assets received at historical carrying costs recorded by Xinlin, which amounted to $410,316 and $121,981, respectively. The differences between the actual contract price and carrying costs are recorded as additional paid-in capital in the amount of $53,318 and $26,415, respectively. As of December 31, 2020 and 2019, the Company had no balance payable to Xinlin. Transactions with Jinguo Wang For the years ended December 31, 2020 and 2019, HDS purchased yew forest assets and yew seedlings from Jinguo Wang in the amount of $1,124,312 and $1,078,121, respectively. As of December 31, 2020 and 2019, the Company had no accounts payable to Jinguo Wang. Transactions with Weihong Zhang For the years ended December 31, 2020 and 2019, HDS purchased yew forest assets from Weihong Zhang in the amount of $28,977 and $789,032, respectively. Transactions with Chunping Wang For the years ended December 31, 2020 and 2019, HDS purchased yew forest assets from Chunping Wang in the amount of $870,762 and $1,653,347, respectively. Transactions with Xue Wang For the years ended December 31, 2020 and 2019, HDS purchased yew forest assets from Xue Wang in the amount of $751,956 and $157,054, respectively. Transactions with Cai Wang For the years ended December 31, 2020 and 2019, HDS purchased yew forest assets from Cai Wang in the amount of $391,191 and $81,075, respectively. Loans Guaranteed As of December 31, 2020 and 2019, the Company’s certain loans were guaranteed by related parties (see note 8). 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 years ended December 31, 2020 and 2019, rent expense related to the ZTC Lease amounted to approximately approximately On January 1, 2010, the Company entered into a lease for office space with Mr. Wang (the “Office Lease”). Pursuant to the Office Lease, annual payments of RMB15,000 (approximately $2,000) are due for each of the term. The term of the Office Lease is 15 years and expires on December 31, 2025. For the years ended December 31, 2020 and 2019, rent expense related to the Office Lease amounted to approximately $2,200 and $2,200, respectively. As of December 31, 2020 and 2019, the Company had no unpaid rent related to the Office Lease. On July 1, 2012, the Company entered into a lease for office space with Mr. Wang (the “JSJ Lease”). Pursuant to the JSJ Lease, JSJ leases approximately 30 square meter of office space from Mr. Wang in Harbin. Rent under the JSJ Lease is RMB10,000 (approximately $1,500) annually. The term of the JSJ Lease is three years and expires on June 30, 2015. On July 1, 2015, the Company and Mr. Wang renewed the JSJ Lease. The renewed lease expires on June 30, 2018. On July 1, 2018, the Company renewed JSJ Lease for three years, which will now expire on June 30, 2021. Pursuant to the renewed lease agreement, the annual payment will be RMB 10,000 (approximately $1,500). For the years ended December 31, 2020 and 2019, rent expense related to the JSJ Lease amounted to approximately $1,400 and $1,400, respectively. As of December 31, 2020 and 2019, the unpaid rent was approximately $Nil and $700 respectively, which was included in due to related parties in the accompanying consolidated balance sheets. The Company entered into two forest land leases with Mr. Wang. Pursuant to the Leases, Mr.Wang leases two forest land with area of 20 mu and 73 mu, respectively, to the Company for free. The leases terms are for the periods from January 9, 2008 to November 24, 2022 and from January 30, 2007 to December 30, 2026, respectively. On January 1, 2015, HYF entered into a lease agreement with HBP, pursuant to which HBP leases 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, to HYF in exchange for no consideration for the period from January 1, 2015 to December 31, 2020. The Company leased office space in the A’cheng district in Harbin (the “A’cheng Lease”) from HDS Development on March 20, 2002. The A’cheng Lease is for a term of 23 years and expires on March 19, 2025. Pursuant to the A’cheng Lease, lease payment shall be made as follows: Period Annual lease amount Payment due date March 2002 to February 2012 RMB 25,000 Before December 2012 March 2012 to February 2017 RMB 25,000 Before December 2017 March 2017 to March 2025 RMB 25,000 Before December 2025 For the years ended December 31, 2020 and 2019, rent expense related to the A’cheng Lease amounted approximately $3,600 and $3,600, respectively. At December 31, 2020 and 2019, the prepaid rent was $Nil. The Company leased an apartment 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 years ended December 31, 2020 and 2019, rent expense related to the Jixing Lease amounted approximately $Nil and $1,100, respectively. Due to Related Parties The Company’s officers, directors and other related parties, from time to time, provided advances to the Company for working capital purpose. These advances and payables are usually short-term in nature, non-interest bearing, unsecured and payable on demand. The following summarized the Company’s due to related parties as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Zhiguo Wang and Guifang Qi $ 555,078 $ 530,621 HBP 96,282 103,158 Total $ 651,360 $ 633,779 |
Statutory Reserves
Statutory Reserves | 12 Months Ended |
Dec. 31, 2020 | |
Statutory Reserves [Abstract] | |
Statutory Reserves | NOTE 13 - STATUTORY RESERVES The Company is required to make appropriations to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriation to the statutory surplus reserve is required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities’ registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the board of directors. The statutory surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital. The accumulated balance of the statutory reserve of the Company as of December 31, 2020 and 2019 was $3,762,288, which has reached the 50% of the entities registered capital. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 14 - SEGMENT INFORMATION The Company managed and reviewed its business as two operating segments. The business of HDS, JSJ and HYF 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 year ended December 31, 2020 and 2019 were as follows: For the Years Ended December 31, Geographic Areas 2020 2019 Revenue PRC $ 27,261,876 $ 27,552,181 USA 100,831 354,725 Elimination Adjustment (55,020 ) (23,257 ) Total Revenue $ 27,307,687 $ 27,883,649 Income (Loss) from operations PRC $ 3,848,461 $ 2,047,256 USA (1,279,761 ) (1,031,772 ) Elimination Adjustment - (3,965 ) Total Income from operations $ 2,568,700 $ 1,011,519 Net income (loss) PRC $ 2,729,064 $ 1,977,627 USA (1,264,181 ) (988,156 ) Elimination Adjustment - (3,965 ) Total net income $ 1,464,883 $ 985,506 The geographical distribution of the Company’s financial information as of December 31, 2020 and 2019 were as follows: As of December 31, Geographic Areas 2020 2019 Long-term assets PRC $ 52,130,997 $ 44,547,842 USA 498,830 1,363,586 Elimination adjustment (4,172,549 ) (3,376,072 ) Total long-term assets $ 48,457,078 $ 42,535,356 Reportable assets PRC $ 61,362,889 $ 55,407,391 USA 1,278,250 2,146,518 Elimination adjustment (4,194,477 ) (3,347,192 ) Total reportable assets $ 58,446,662 $ 54,206,717 The Company does not allocate any selling, general and administrative expenses, other income/expenses to its reportable segments because these activities are managed at a corporate level. In addition, the specified amounts for interest expense and income tax expense are not included in the measure of segment profit or loss reviewed by the chief operating decision maker and these specified amounts are not regularly provided to the chief operating decision maker. Asset information by reportable segment is not reported to or reviewed by the chief operating decision maker and, therefore, the Company has not disclosed asset information for each reportable segment. The Company’s operations are located in the PRC. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15 - SUBSEQUENT EVENT 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Principles of Consolidation [Abstract] | |
Principles of Consolidation | 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. Details of the Company’s subsidiaries and variable interest entities (“VIE”) are as follows: Name Domicile and Date of Incorporation Registered Capital Effective Ownership Principal Activities Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”) PRC October 29, 2009 US$ 100,000 100 % Holding company Yew Bio-Pharm Holdings Limited (“Yew Bio-Pharm (HK)”) Hong Kong November 29, 2010 HK$ 10,000 100 % Holding company of JSJ Harbin Yew Science and Technology Development Co., Ltd. (“HDS”) PRC August 22, 1996 RMB 45,000,000 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 composite northeast yew extract Harbin Yew Food Co., Ltd (“HYF”) PRC November 4, 2014 RMB 100,000 100 % (1) Sales of wood ear mushroom drink MC Commerce Holding Inc.(“MC”) State of California, United State June 8, 2016 100 % (2) Sales of yew oil candles and yew oil soaps Harbin Jingchibai Bio-Technology Development Co., Limited (“JCB”) PRC March 18, 2020 RMB 1,000,000 51 % (3) Sales of yew oil candles and yew oil soaps, no active operation since its incorporation Yew (Guangzhou) Bio-Technology Co., Ltd PRC December RMB 10,000,000 80 % Cosmetic marketing and sales (1) Wholly-owned subsidiary of HDS (2) 51% owned by YBP and 49% owned by HDS (3) JCB was cancelled of its registration on December 3, 2020 |
Method of Accounting | Method of accounting The Company maintains its general ledger and journals with the accrual method accounting for financial reporting purposes. The consolidated financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of consolidated financial statements. |
Use of Estimates | Use of estimates The preparation of consolidated financial statements in accordance with generally accepted accounting principles in the United State of America (“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 may differ from these estimates under different assumptions or conditions. Significant estimates include allowance for accounts receivable, slow-moving and obsolete inventory, the classification of short and long-term inventory, the useful life of property and equipment and land use rights and yew forest assets, assumptions used in assessing impairment of long-term assets, write-down in value of inventory and the valuation of stock-based compensation. |
Fair Value of Financial Instruments | Fair value of financial instruments The Company adopted the guidance of Accounting Standards Codification (“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: ● Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. ● Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. ● Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash, accounts receivable, accounts payable, and short-term borrowings, approximate their fair market value based on the short-term maturity of these instruments. The Company did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2020 and 2019. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, freemarket dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature |
Concentrations of Credit Risk | Concentrations of credit risk The Company’s operations are mainly conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. Substantially all of the Company’s cash is maintained with state-owned banks in the PRC, and part of deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. At December 31, 2020 and 2019, the Company’s cash balances by geographic area were as follows: December 31, 2020 December 31, 2019 Country: United States $ 3,071 0.5 % $ 46,855 6.3 % China 560,721 99.5 % 695,439 93.7 % Total cash $ 563,792 100.0 % $ 742,294 100.0 % 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 December 31, 2020, approximately $242,000 of the Company’s cash held by financial institutions, was insured, and the remaining balance of approximately $322,000 was not insured. As of December 31, 2019, approximately $216,000 of the Company’s cash held by financial institutions, was insured, and the remaining balance of approximately $526,000 was not insured. |
Cash | Cash For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments purchased with original maturities of three months or less and money market accounts to be cash equivalents. As of December 31, 2020 and 2019, the Company has no cash equivalents. |
Accounts Receivable | Accounts receivable Accounts receivable are presented net of an allowance for doubtful accounts. If necessary, the Company shall maintain allowances for doubtful accounts for estimated losses. The Company reviews accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and economic trends. Accounts are written off after exhaustive efforts at collection. At December 31, 2020 and 2019, the Company has an allowance for doubtful accounts in the amount of $386,000 and $193,000, respectively. |
Inventories | Inventories Inventories, consisting of raw materials, yew seedlings and finished goods related to the Company’s yew products are stated at the lower of cost or net realizable value, with cost computed on a weighted-average basis. Raw materials primarily include yew wood used in the production of yew products such as furniture, ornaments, and other products containing yew wood, yew foliage and tender conifer foliage. Finished goods consist of yew handicrafts, yew candles, pine needle extracts, yew essential oil soap, complex taxus cuspidate extract and composite northeast yew extract products. The Company estimates the amount of the excess inventories by comparing inventory on hand with the estimated sales that can be sold within its normal operating cycle of one year. Any inventory in excess of the Company’s current requirements based on historical and anticipated levels of sales is classified as long-term on its consolidated balance sheets. The Company’s classification of long-term inventory requires it to estimate the portion of inventory value that can be realized over the next 12 months. To estimate the amount of slow-moving or obsolete inventories, the Company analyzes movement of its products, monitors competing products and technologies and evaluates acceptance of its products. Periodically, the Company identifies inventories that cannot be sold at all or can only be sold at deeply discounted prices. An allowance will be established if management determines that certain inventories may not be saleable. If inventory costs exceed expected net realizable value due to obsolescence or slow-moving, the Company will record reserves for the difference between the carrying cost and the net realizable value, with cost computed on a weighted-average basis. In accordance with Accounting Standards Codification (“ASC”) 905, “Agriculture”, our costs of growing Yew seedlings are accumulated until the time of harvest and are reported at the lower of cost or net realizable value, with cost computed on a weighted-average basis. |
Property and Equipment | Property and equipment Property and equipment are carried at cost and are depreciated on a straight-line basis (after taking into account their respective estimated residual value) over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The estimated useful lives are as follows: Building 10-20 years Machinery and equipment 3-10 years Office equipment 2-5 years Motor vehicles 4-10 years |
Land Use Rights and Yew Forest Assets | Land use rights and yew forest assets All land in the PRC is owned by PRC government and cannot be sold to any individual or company. The Company has recorded the amounts paid to the PRC government to acquire long-term interests to utilize land use rights and yew forests. This type of arrangement is common for the use of land in the PRC. Yew trees on land containing yew tree forests will be used to supply raw materials such as branches, leaves and fruit to the Company. The Company amortizes land use rights based on their terms and yew forest assets over the shorter of the respective land use rights or expected useful lives, which generally ranges from 15 to 50 years. The lease agreements do not have any renewal option and the Company has no further obligations to the lessor. The Company records the amortization of these land use rights and yew forest assets as part of its cost of revenues. |
Impairment of Long-lived Assets | Impairment of long-lived assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. For the years ended December 31, 2020 and 2019, the Company determined that there was no impairment of long-lived assets. |
Revenue Recognition | 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”) 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 14 - SEGMENT INFORMATION. |
Stock-based Compensation | Stock-based compensation The Company accounts for stock options and other equity-based compensation issued in accordance with ASC 718 “Stock Compensation” after adoption of ASC 2018-07 on January 1, 2019, which requires the measurement and recognition of compensation expense related to the fair value of equity-based compensation awards that are ultimately expected to vest. Stock-based compensation expense recognized includes the compensation cost for all share-based compensation payments granted to employees and nonemployees, net of estimated forfeitures, over the employees’ requisite service period or the non-employee performance period based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled during the periods reported. Please see Note 9 for additional information. |
Advertising | Advertising Advertising is expensed as incurred and included in selling, general and administrative expenses in the accompanying Consolidated Statements of Operations and Comprehensive Income (loss). The Company incurred $Nil for the years ended December 31, 2020 and 2019. |
Employee Benefits | Employee benefits The Company’s major operations and most employees are located in the PRC. The Company makes mandatory contributions to the PRC government’s health, retirement benefit and unemployment funds in accordance with the relevant Chinese social security laws. The costs of these payments are charged to the same accounts and in the same period as the related salary costs and are not material. |
Income Taxes | Income taxes The Company is governed by the Income Tax Law of the People’s Republic of China, Hong Kong and the United States. The Company accounts for income tax using the liability method prescribed by ASC 740, “ Income Taxes” The Company applied the provisions of ASC 740-10-50, “Accounting for Uncertainty in Income Taxes”, which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of December 31, 2020, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. |
Value Added Tax | Value added tax The Company is subject to value added tax (“VAT”). The applicable VAT rate is 13% for agricultural products, 16% for handicraft products, yew essential oil soap, yew candles, complex taxus cuspidate extract, composite northeast yew extract and pine needle extracts sold in the PRC for the years of 2020 and 2019. The amount of VAT liability is determined by applying the applicable tax rate to the amount of goods sold (output VAT) less VAT accrued on purchases made with the relevant supporting invoices (input VAT). Sales and purchases are recorded net of VAT (the amount of VAT is excluded from revenues and costs) collected and paid as the Company acts as an agent for the government. |
Government Grants | Government grants Government grants include cash and other subsidies received from the PRC government by the Company and its subsidiaries. Government grants are recognized when received and all the conditions specified in the grants have been met. As of December 31, 2020 and 2019, the Company has received government grants in the amounts of $1,172,928 and $892,375, respectively, for afforestation that were recorded initially as deferred income and recognized over the terms of the land use rights related to the yew forest assets the grants awarded to. |
Foreign Currency Translation | Foreign currency translation The accompanying consolidated financial statements are presented in U.S. dollars (“USD”). The reporting currency of the Company is the USD. The functional currency of Yew Bio-Pharm (HK) is the Hong Kong dollar, and the functional currency of the Company’s VIEs and subsidiaries located in the PRC is the RMB. For the subsidiaries whose functional currencies are the Hong Kong dollar or RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income. The foreign currency translation adjustment included in comprehensive income (loss) for the years ended December 31, 2020 and 2019 amounted to $2,799,088 and $(544,809), respectively. The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions. The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the consolidated financial statements are as follows: 2020 2019 Exchange rate on balance sheet dates: USD: RMB exchange rate 6.5326 6.9668 Average exchange rate for the year USD: RMB exchange rate 6.9020 6.9072 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. In addition, the current foreign exchange control policies applicable in PRC also restrict the transfer of assets or dividends outside the PRC. |
Net Income Per Share of Common Stock | Net income per share of common stock ASC 260 “ Earnings per Share |
Comprehensive Income (Loss) | Comprehensive income (loss) The Company follows ASC 220, “Comprehensive Income” to recognize the elements of comprehensive income. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive income (loss) for the years ended December 31, 2020 and 2019 included net income and unrealized gains (losses) from foreign currency translation adjustments. |
Operating Leases | Operating leases The Company adopted ASC 842 “Leases” on January 1. 2019. The Company determines if an arrangement is a lease at inception and whether a contract is or contains a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. If the contract provides us the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, we consider it to be, or contain, a lease. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liability, and operating lease liability, non-current in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available in the market at commencement date in determining the present value of lease payments. |
Segment Reporting | Segment reporting The Company managed and reviewed its business as two operating segments: the business of HDS, JSJ and HYF in PRC was managed and reviewed as PRC segment and 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. |
Related Party Transactions | Related party transactions A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities including such person’s immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. |
Collaborative Arrangement | Collaborative arrangement HDS entered into a Joint Venture Planting Agreement with Wuchang City Forestry Bureau on March 21, 2004 and four more Joint Venture Planting Agreements with Qingan State-owned Bureau (the “Qingan Forest Bureau”) in June 2018 and May 2019, respectively (see Note 6), which are considered collaborative arrangements under U.S. GAAP. The purpose of this arrangement is to share some of the risks and rewards associated with this Joint Venture Planting Agreement. The Company’s current shares of profits are 80% and 70% for the collaborative agreements with Wuchang City Forestry Bureau and Qingan State-owned Bureau entered dated on June 2018 and May 2019, respectively. The Company accounts for this collaborative arrangement under ASC 808, “Collaborative Arrangements” and related topics, and records revenue at a gross basis as the Company acts as a principal pursuant to ASC Topic 808-10-15. For the years ended December 31, 2020 and 2019, the Company has not generated any revenues or activity from this collaborative agreements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted 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. The Company adopted Topic 842 on its effective date of January 1, 2019 using a modified retrospective transition approach. 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 years ended December 31, 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 financial position and results of operations. Recent Accounting Pronouncements Not 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 December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which is intended to simplify various aspects related to accounting for income taxes. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020, with early adoption permitted. The standard will be adopted upon the effective date for us beginning January 1, 2021. The Company is currently evaluating the effects of the standard on our consolidated financial statements and related disclosures. 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. The management does not believe that other than disclosed above, accounting pronouncements the recently issued but not yet adopted will have a material impact on its financial position, results of operations or cash flows. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of HDS Shareholders Equity Ownership Percentage | After the foregoing transactions were completed, the HDS Shareholders then owned 100% of the shares of HDS in the following percentages: Mr. Wang 76.65 % Madame Qi 18.53 % Mr. Han 4.82 % |
Schedule of Carrying Amount of Assets and Liabilities Related to Variable Interest Entity | At December 31, 2020 and 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: December 31, 2020 December 31, 2019 Assets Cash $ 549,771 $ 688,863 Accounts receivable 250,000 7,692,600 Accounts receivable - related parties, net 9,045,669 193,000 Inventories (current and noncurrent), net 416,304 2,991,237 Prepaid expenses and other assets 75,866 37,202 Prepaid expenses - related parties - 5,829 Advance to suppliers 15,415 - Advance to suppliers - related parties 4,854,273 - Property and equipment, net 483,139 466,025 Long-term investment in an affiliate 4,172,550 3,009,527 Land use rights and yew forest assets, net 41,952,483 40,048,696 Operating lease right of use 236,833 259,331 VAT input credit 56,637 349,096 Total assets of VIE and its subsidiary $ 62,108,940 $ 55,741,406 Liabilities Accrued expenses and other payables $ 271,312 $ 131,420 Accounts payable for acquisition of yew forests and others 389,028 796,346 Accounts payable for acquisition of yew forests and others - related parties - 16,629 Advance from customer 985 50,071 Short-term borrowings 8,899,979 8,541,517 Operating lease liability, current and noncurrent 259,686 262,763 Long-term deferred income 1,172,928 892,375 Due to related parties and VIE holding companies 97,461 614,265 Total liabilities of VIE and its subsidiary $ 11,091,379 $ 11,305,386 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Principles of Consolidation [Abstract] | |
Schedule of Company's Subsidiaries and Variable Interest Entities | Details of the Company’s subsidiaries and variable interest entities (“VIE”) are as follows: Name Domicile and Date of Incorporation Registered Capital Effective Ownership Principal Activities Heilongjiang Jinshangjing Bio-Technology Development Co., Limited (“JSJ”) PRC October 29, 2009 US$ 100,000 100 % Holding company Yew Bio-Pharm Holdings Limited (“Yew Bio-Pharm (HK)”) Hong Kong November 29, 2010 HK$ 10,000 100 % Holding company of JSJ Harbin Yew Science and Technology Development Co., Ltd. (“HDS”) PRC August 22, 1996 RMB 45,000,000 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 composite northeast yew extract Harbin Yew Food Co., Ltd (“HYF”) PRC November 4, 2014 RMB 100,000 100 % (1) Sales of wood ear mushroom drink MC Commerce Holding Inc.(“MC”) State of California, United State June 8, 2016 100 % (2) Sales of yew oil candles and yew oil soaps Harbin Jingchibai Bio-Technology Development Co., Limited (“JCB”) PRC March 18, 2020 RMB 1,000,000 51 % (3) Sales of yew oil candles and yew oil soaps, no active operation since its incorporation Yew (Guangzhou) Bio-Technology Co., Ltd PRC December RMB 10,000,000 80 % Cosmetic marketing and sales (1) Wholly-owned subsidiary of HDS (2) 51% owned by YBP and 49% owned by HDS (3) JCB cancelled of registration on December 3, 2020 |
Schedule of Geographic Area Cash Balances | At December 31, 2020 and 2019, the Company’s cash balances by geographic area were as follows: December 31, 2020 December 31, 2019 Country: United States $ 3,071 0.5 % $ 46,855 6.3 % China 560,721 99.5 % 695,439 93.7 % Total cash $ 563,792 100.0 % $ 742,294 100.0 % |
Schedule of Estimated Useful Lives of Fixed Assets | The estimated useful lives are as follows: Building 10-20 years Machinery and equipment 3-10 years Office equipment 2-5 years Motor vehicles 4-10 years |
Schedule of Exchange Rates Used In Translation | The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the consolidated financial statements are as follows: 2020 2019 Exchange rate on balance sheet dates: USD: RMB exchange rate 6.5326 6.9668 Average exchange rate for the year USD: RMB exchange rate 6.9020 6.9072 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of December 31, 2020 and 2019, inventories consisted of the following: December 31, 2020 December 31, 2019 Current portion Long-term portion Total Current portion Long-term portion Total Raw materials $ - $ 97,109 $ 97,109 $ 16,761 $ 91,056 $ 107,817 Finished goods 80,999 2,589,696 2,670,695 2,770,352 2,613,724 5,384,076 Total 80,999 2,686,805 2,767,804 2,787,113 2,704,780 5,491,893 Inventory reserve (66,391 ) (1,902,021 ) (1,968,412 ) (149,724 ) (1,125,165 ) (1,274,889 ) Inventories, net $ 14,608 $ 784,784 $ 799,392 $ 2,637,389 $ 1,579,615 $ 4,217,004 |
Schedule of Inventories Purchases | Inventories as of December 31, 2020 and 2019 consisted of the inventory purchased from related parties as follows: December 31, 2020 2019 Inventories, net $ - $ - Inventories - related parties, net 14,608 2,637,389 Total $ 14,608 $ 2,637,389 December 31, 2020 2019 Long-term inventories, net $ 416,305 $ 395,032 Long-term inventories - related parties, net 368,479 1,184,583 Total $ 784,784 $ 1,579,615 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment consisted of the following as of December 31, 2020 and 2019: December 31, 2020 2019 Buildings and building improvements $ 671,491 $ 629,641 Motor vehicles 459,809 498,137 Machinery and equipment 535,061 501,713 Office equipment 144,189 35,424 1,810,550 1,664,915 Less: accumulated depreciation (1,321,355 ) (1,190,012 ) Total property and equipment, net $ 489,195 $ 474,903 |
Land Use Rights and Yew Fores_2
Land Use Rights and Yew Forest Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Land Use Rights and Assets | At December 31, 2020 and 2019, land use rights and yew forest assets consisted of the following: Useful Life December 31, 2020 December 31, 2019 Land use rights and yew forest assets 15-50 years $ 46,281,816 $ 44,760,976 Less: accumulated amortization (4,329,333 ) (4,712,280 ) Land use rights and yew forest assets, net $ 41,952,483 $ 40,048,696 December 31, 2020 2019 Land use rights, net $ 268,199 $ 243,877 Yew forest assets, net 41,684,284 39,804,819 Land use rights and yew forest assets, net $ 41,952,483 $ 40,048,696 |
Schedule of Amortization of Land Use Rights and Yew Forest Assets | Amortization of land use rights and yew forest assets attributable to future periods is as follows: Years ending December 31: Land Use Right Yew Forest Assets Total Amortization 2021 $ 10,153 $ 2,901,814 $ 2,911,967 2022 10,153 2,901,814 2,911,967 2023 10,153 2,901,814 2,911,967 2024 10,153 2,901,814 2,911,967 2025 10,153 2,901,814 2,911,967 2026 and thereafter 217,434 27,175,214 27,392,648 Total, net $ 268,199 $ 41,684,284 $ 41,952,483 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income taxes | Provision for income taxes for the years ended December 31, 2020 and 2019 consisted of: Year ended December 31, 2020 Federal State Foreign Total Current $ - $ 780 $ 27,968 $ 28,768 Deferred - - - - Total $ - $ 780 $ 27,968 $ 28,768 Year ended December 31, 2019 Federal State Foreign Total Current $ (9,889 ) $ - $ 21,103 $ 11,214 Deferred - - - - Total $ (9,889 ) $ - $ 21,103 $ 11,214 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the deferred tax assets and liabilities for income taxes as of December 31, 2020 and 2019 consisted of the following: December 31, 2020 2019 Deferred tax assets Net operating loss carry-forward $ 384,987 $ 361,712 Inventory write-down - 311,536 Total 384,987 673,248 Valuation allowance (384,987 ) (673,248 ) Net deferred tax assets $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation | The table below summarizes the difference between the U.S. statutory federal tax rate and the Company’s effective tax rate for the years ended December 31, 2020 and 2019: Years Ended December 31, 2020 2019 U.S. federal income tax rate 21.0 % 21.0 % Tax rate difference 7.4 % 8.0 % PRC tax exemption (44.6 )% (51.6 )% Income tax from previous year - % (1.0 )% Income tax on undistributed earnings - % - % GILTI tax - % - % Others 0.1 % 2.1 % Valuation allowance 18.0 % 22.6 % Effective tax rate 1.9 % 1.1 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Fair Value Measurement Inputs and Management Assumptions | The fair value of the Company’s option as of the date of revaluation upon modification on October 3, 2019 was determined using the following management assumptions: Name of Optionee Expected Terms (In Years) Computed Volatility Risk free Interest Rate (%) Expected Dividends Fair Value Before the modification Zhiguo Wang 0.25 125 % 1.70 - 9,285 Guifang Qi 0.25 125 % 1.70 - 4,622 William B. Barnett 0.02 29 % 1.78 - - After the modification Zhiguo Wang 2.25 127 % 1.39 - 194,285 Guifang Qi 2.25 127 % 1.39 - 96,705 William B. Barnett 2.25 127 % 1.39 - 7,378 |
Schedule of Stock Option Activities | Stock option activities for the years ended December 31, 2020 and 2019 are summarized in the following table. Year Ended December 31, 2020 Year Ended December 31, 2019 Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Balance at beginning of year 7,738,737 $ 0.22 2.0 7,738,737 $ 0.22 3.0 Issued - - - - Exercised - - - - Expired - - - - Forfeited - - - - Balance at end of year 7,738,737 $ 0.22 1.0 7,738,737 $ 0.22 2.0 Options exercisable at end of year 7,738,737 $ 0.22 1.0 7,738,737 $ 0.22 2.0 |
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 at December 31, 2020: Stock Options Outstanding Stock Options Exercisable Range of Exercise Price Number Outstanding at December 31, 2020 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable at December 31, 2020 Weighted Average Exercise Price $ 0.22-0.25 7,738,737 1.00 $ 0.22 7,738,737 $ 0.22 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2020 and 2019: For the Years Ended December 31, 2020 2019 Net income (loss) available to common stockholders for basic and diluted net income per share of common stock $ 2,180,982 $ 985,506 Weighted average common stock outstanding - basic 51,700,000 51,760,616 Effect of dilutive securities: Stock options issued to directors/officers/employees - - Weighted average common stock outstanding - diluted 51,700,000 51,760,616 Net income (loss) per common share - basic $ 0.04 $ 0.02 Net income (loss) per common share - diluted $ 0.04 $ 0.02 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease Expenses | The components of lease expense consist of the following: Classification For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 Operating lease cost Selling, general and administrative expense $ 74,172 $ 128,664 Net lease cost $ 74,172 $ 128,664 |
Schedule of Balance Sheet Information Related to Leases | Balance sheet information related to leases consists of the following: Classification As of December 31, As of December 31, Assets Operating lease ROU assets Right-of-use assets $ 333,402 $ 399,817 Total leased assets $ 333,402 $ 399,817 Liabilities Current portion Operating lease liabilities Current maturities of operating lease liabilities $ 65,476 $ 52,104 Non-current portion Operating lease liabilities Operating lease liabilities 292,409 351,145 Total lease liabilities $ 357,885 $ 403,249 Weighted average remaining lease term Operating leases 10.9 years 6.2 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: For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 74,401 $ 127,127 |
Schedule of Minimum Future Lease Payments | The minimum future lease payments as of December 31, 2020 are as follows: Years Ending December 31, Operating Leases 2021 $ 79,997 2022 80,327 2023 33,594 2024 29,332 2025 26,314 Thereafter 211,830 Total lease payments 461,393 Less: Interest (76,608 ) Present value of lease liabilities $ 384,785 |
Concentrations of Credit Risk_2
Concentrations of Credit Risk and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |
Schedule of Concentration of Risk Major Customers and Suppliers | For the years ended December 31, 2020 and 2019, customers accounting for 10% or more of the Company’s revenue were as follows: Revenue For the Years Ended AR as of December 31, December 31, Customer 2020 2019 2020 2019 A (Yew Pharmaceutical, a related party) 61.0 % 38.4 % 32.2 % - B (HongKong YIDA Commerce Co., Limited, a related party) * 25.6 % * 2.5 % C (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) * 34.1 % * 97.6 % D (LIFEFORFUN LIMITED, a related party) 25.8 % - 65.2 % - * Less than 10% |
Supplier [Member] | |
Schedule of Concentration of Risk Major Customers and Suppliers | Suppliers For the years ended December 31, 2020 and 2019, suppliers accounting for 10% or more of the Company’s purchase were and major suppliers whose accounts payable accounted for 10% or more of the Company’s total accounts payable as follows: Purchase For the Years Ended AP as of December 31, December 31, Customer 2020 2019 2020 2019 A (Yew Pharmaceutical, a related party) 40.1 % 47 % - - E (Heilongjiang Weishahe Agriculture Technology Co., Ltd) 10.2 % *% 68.3 % 85.3 % F (Xingcai Shi) *% *% 18.1 % - * Less than 10% |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 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 HongKong 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 Party Lease Payment | Pursuant to the A’cheng Lease, lease payment shall be made as follows: Period Annual lease amount Payment due date March 2002 to February 2012 RMB 25,000 Before December 2012 March 2012 to February 2017 RMB 25,000 Before December 2017 March 2017 to March 2025 RMB 25,000 Before December 2025 |
Schedule of Due to Related Parties | The following summarized the Company’s due to related parties as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Zhiguo Wang and Guifang Qi $ 555,078 $ 530,621 HBP 96,282 103,158 Total $ 651,360 $ 633,779 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Company Financial Information Geographical Distributions | The geographical distributions of the Company’s financial information for the year ended December 31, 2020 and 2019 were as follows: For the Years Ended December 31, Geographic Areas 2020 2019 Revenue PRC $ 27,261,876 $ 27,552,181 USA 100,831 354,725 Elimination Adjustment (55,020 ) (23,257 ) Total Revenue $ 27,307,687 $ 27,883,649 Income (Loss) from operations PRC $ 3,848,461 $ 2,047,256 USA (1,279,761 ) (1,031,772 ) Elimination Adjustment - (3,965 ) Total Income from operations $ 2,568,700 $ 1,011,519 Net income (loss) PRC $ 2,729,064 $ 1,977,627 USA (1,264,181 ) (988,156 ) Elimination Adjustment - (3,965 ) Total net income $ 1,464,883 $ 985,506 The geographical distribution of the Company’s financial information as of December 31, 2020 and 2019 were as follows: As of December 31, Geographic Areas 2020 2019 Long-term assets PRC $ 52,130,997 $ 44,547,842 USA 498,830 1,363,586 Elimination adjustment (4,172,549 ) (3,376,072 ) Total long-term assets $ 48,457,078 $ 42,535,356 Reportable assets PRC $ 61,362,889 $ 55,407,391 USA 1,278,250 2,146,518 Elimination adjustment (4,194,477 ) (3,347,192 ) Total reportable assets $ 58,446,662 $ 54,206,717 |
Organization and Principal Ac_3
Organization and Principal Activities (Details Narrative) - USD ($) | Feb. 23, 2010 | Oct. 31, 2010 | Dec. 31, 2020 | Jul. 26, 2016 | Feb. 26, 2010 |
Entity incorporation, date | Nov. 13, 2007 | ||||
MC Commerce Holding Inc [Member] | |||||
Ownership percentage | 49.00% | ||||
Mr. Wang, Madame Qi and Mr. Han [Member] | |||||
Ownership percentage | 13.84% | ||||
Mr. Jiang [Member] | |||||
Ownership percentage | 3.22% | ||||
Mr. Jiang [Member] | Heilongjiang Pingshan Hongdoushan Development Co., Ltd [Member] | |||||
Ownership percentage | 10.62% | ||||
Equity Transfer Agreement [Member] | Harbin Yew Science and Technology Development Co., Ltd [Member] | RMB [Member] | |||||
Aggregate of member's capital | $ 45,000,000 | $ 45,000,000 | |||
First Transfer Agreement [Member] | Mr. Wang, Madame Qi and Mr. Han [Member] | Common Stock [Member] | |||||
Ownership percentage | 41.50% | ||||
First Transfer Agreement [Member] | Mr. Wang, Madame Qi and Mr. Han [Member] | Common Stock [Member] | Maximum [Member] | |||||
Ownership percentage | 2.50% | ||||
Zhiguo Wang [Member] | |||||
Percentage of equity ownership | 62.81% | 76.65% | |||
Guifang Qi [Member] | |||||
Percentage of equity ownership | 91.96% | 18.53% | |||
Two PRC Individuals [Member] | |||||
Percentage of equity ownership | 9.04% | ||||
Mr. Wang, Madame Qi and Mr. Han [Member] | Second Transfer Agreements [Member] | |||||
Percentage of equity ownership | 100.00% |
Organization and Principal Ac_4
Organization and Principal Activities - Schedule of Shareholders Equity Ownership Percentage (Details) | Feb. 23, 2010 | Dec. 31, 2020 |
Zhiguo Wang [Member] | ||
Ownership percentage | 62.81% | 76.65% |
Guifang Qi [Member] | ||
Ownership percentage | 91.96% | 18.53% |
Mr. Han [Member] | ||
Ownership percentage | 4.82% |
Organization and Principal Ac_5
Organization and Principal Activities - Schedule of Carrying Amount of Assets and Liabilities Related to Variable Interest Entity (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable - related parties, net | $ 9,045,669 | $ 198,829 |
Inventories (current and noncurrent), net | 14,608 | 2,637,389 |
Property and equipment, net | 489,195 | 474,903 |
Land use rights and yew forest assets, net | 46,281,816 | 44,760,976 |
Operating lease right of use | 333,402 | 399,817 |
VAT input credit | 56,637 | 349,096 |
Total Assets | 58,446,662 | 54,206,717 |
Short-term borrowings | 8,979,899 | 8,541,517 |
Operating lease liability, current and noncurrent | 357,885 | 403,249 |
Long-term deferred income | 1,172,928 | 892,375 |
Total Liabilities | 12,964,094 | 12,813,022 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Cash | 549,771 | 688,863 |
Accounts receivable | 250,000 | 7,692,600 |
Accounts receivable - related parties, net | 9,045,669 | 193,000 |
Inventories (current and noncurrent), net | 416,304 | 2,991,237 |
Prepaid expenses and other assets | 75,866 | 37,202 |
Prepaid expenses - related parties | 5,829 | |
Advance to suppliers | 15,415 | |
Advance to suppliers - related parties | 4,854,273 | |
Property and equipment, net | 483,139 | 466,025 |
Long-term investment in an affiliate | 4,172,550 | 3,009,527 |
Land use rights and yew forest assets, net | 41,952,483 | 40,048,696 |
Operating lease right of use | 236,833 | 259,331 |
VAT input credit | 56,637 | 349,096 |
Total Assets | 62,108,940 | 55,741,406 |
Accrued expenses and other payables | 271,312 | 131,420 |
Accounts payable for acquisition of yew forests and others | 389,028 | 796,346 |
Accounts payable for acquisition of yew forests and others - related parties | 16,629 | |
Advance from customer | 985 | 50,071 |
Short-term borrowings | 8,899,979 | 8,541,517 |
Operating lease liability, current and noncurrent | 259,686 | 262,763 |
Long-term deferred income | 1,172,928 | 892,375 |
Due to related parties and VIE holding companies | 97,461 | 614,265 |
Total Liabilities | $ 11,091,379 | $ 11,305,386 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Company's Subsidiaries and Variable Interest Entities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Subsidiaries and Variable Interest Entities [Member] | |||
Variable Interest Entity [Line Items] | |||
Domicile and Date of Incorporation | PRC October 29, 2009 | ||
Registered Capital | $ 100,000 | ||
Effective Ownership, Percentage | 100.00% | ||
Principal Activities | Holding company | ||
Yew Bio-Pharm Holdings Limited ("Yew Bio-Pharm (HK)") [Member] | HK [Member] | |||
Variable Interest Entity [Line Items] | |||
Domicile and Date of Incorporation | Hong Kong November 29, 2010 | ||
Registered Capital | $ 10,000 | ||
Effective Ownership, Percentage | 100.00% | ||
Principal Activities | Holding company of JSJ | ||
Harbin Yew Science and Technology Development Co., Ltd. ("HDS") [Member] | |||
Variable Interest Entity [Line Items] | |||
Effective Ownership, Percentage | 49.00% | ||
Harbin Yew Science and Technology Development Co., Ltd. ("HDS") [Member] | RMB [Member] | |||
Variable Interest Entity [Line Items] | |||
Domicile and Date of Incorporation | PRC August 22, 1996 | ||
Registered Capital | $ 45,000,000 | ||
Effective Ownership | Contractual arrangements | ||
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 composite northeast yew extract | ||
Harbin Yew Food Co., Ltd ("HYF") [Member] | RMB [Member] | |||
Variable Interest Entity [Line Items] | |||
Domicile and Date of Incorporation | PRC November 4, 2014 | ||
Registered Capital | $ 100,000 | ||
Effective Ownership, Percentage | [1] | 100.00% | |
Principal Activities | Sales of wood ear mushroom drink | ||
MC Commerce Holding Inc. ("MC") [Member] | |||
Variable Interest Entity [Line Items] | |||
Domicile and Date of Incorporation | State of California, United State June 8, 2016 | ||
Effective Ownership, Percentage | [2] | 100.00% | |
Principal Activities | Sales of yew oil candles and yew oil soaps | ||
Harbin Jingchibai Bio-Technology Development Co., Limited ("JCB") [Member] | RMB [Member] | |||
Variable Interest Entity [Line Items] | |||
Domicile and Date of Incorporation | PRC March 18, 2020 | ||
Registered Capital | $ 1,000,000 | ||
Effective Ownership, Percentage | [3] | 51.00% | |
Principal Activities | Sales of yew oil candles and yew oil soaps, no active operation since its incorporation | ||
Yew (Guangzhou) Bio-Technology Co., Ltd [Member] | RMB [Member] | |||
Variable Interest Entity [Line Items] | |||
Domicile and Date of Incorporation | PRC December 24, 2020 | ||
Registered Capital | $ 10,000,000 | ||
Effective Ownership, Percentage | 80.00% | ||
Principal Activities | Cosmetic marketing and sales | ||
Yew Bio Pharm Group Inc [Member] | |||
Variable Interest Entity [Line Items] | |||
Effective Ownership, Percentage | 51.00% | 51.00% | |
[1] | Wholly-owned subsidiary of HDS | ||
[2] | 51% owned by YBP and 49% owned by HDS | ||
[3] | JCB was cancelled of its registration on December 3, 2020 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Company's Subsidiaries and Variable Interest Entities (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Yew Bio Pharm Group Inc [Member] | ||
Effective ownership, percentage | 51.00% | 51.00% |
Harbin Yew Science and Technology Development Co., Ltd. ("HDS") [Member] | ||
Effective ownership, percentage | 49.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Geographic Area Cash Balances (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Line Items] | ||
Total cash | $ 563,792 | $ 742,294 |
Total cash (Percentage) | 100.00% | 100.00% |
United States [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash | $ 3,071 | $ 46,855 |
Total cash (Percentage) | 5.00% | 6.30% |
China [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash | $ 560,721 | $ 695,439 |
Total cash (Percentage) | 99.50% | 93.70% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Exchange Rates Used In Translation (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Maximum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Maximum [Member] | Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Maximum [Member] | Motor Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Minimum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Minimum [Member] | Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Minimum [Member] | Motor Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 4 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Fixed Assets (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Exchange rate on balance sheet dates: USD : RMB exchange rate | 6.5326 | 6.9668 |
Average exchange rate for the year USD : RMB exchange rate | 6.9020 | 6.9072 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Jan. 02, 2019USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Insured amount | $ 242,000 | $ 216,000 | |
Remaining balance | 322,000 | 526,000 | |
Allowance for doubtful accounts | 386,000 | 193,000 | |
Impairment charges | |||
Advertising expenses | |||
Uncertain tax positions | |||
Percentage of value added tax for agricultural products | 13.00% | ||
Percentage of value added tax handicraft products | 16.00% | ||
Government grants received | $ 1,172,928 | 892,375 | |
Foreign currency translation adjustment | 2,799,088 | (544,809) | |
Inventory allowance and reserve | |||
Number of reportable business segments | Segment | 2 | ||
Percentage share of profit held by parent in joint venture | 80.00% | ||
Operating lease liabilities | $ 357,885 | 403,249 | |
Operating lease right-of-use assets | $ 333,402 | $ 399,817 | |
Topic 842 [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Operating lease liabilities | $ 350,000 | ||
Operating lease right-of-use assets | $ 350,000 | ||
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Land use rights and yew forest assets | 15 years | 15 years | |
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Land use rights and yew forest assets | 50 years | 50 years | |
China Financial Stability Bureau [Member] | RMB [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Insurance amount | $ 500,000 | ||
Federal Deposit Insurance Corporation [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Insurance amount | $ 250,000 | ||
Yew Bio Pharm Group Inc [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Related party transactions, description | (i) any person that holds 10% or more of the Company's securities including such person's immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. | ||
Effective ownership, percentage | 51.00% | 51.00% |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventories (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Inventories, net, current portion | $ 14,608 | $ 2,637,389 |
Inventories, net, long-term portion | 784,784 | 1,579,615 |
Inventories, net, total | 799,392 | 4,217,004 |
Inventory reserves, current portion | (66,391) | (149,724) |
Inventory reserves, long-term portion | (1,902,021) | (1,125,165) |
Inventory reserves | (1,968,412) | (1,274,889) |
Raw materials [Member] | ||
Inventories, net, current portion | 16,761 | |
Inventories, net, long-term portion | 97,109 | 91,056 |
Inventories, net, total | 97,109 | 107,817 |
Finished goods [Member] | ||
Inventories, net, current portion | 80,999 | 2,770,352 |
Inventories, net, long-term portion | 2,589,696 | 2,613,724 |
Inventories, net, total | 2,670,695 | 5,384,076 |
Inventory Gross [Member] | ||
Inventories, net, current portion | 80,999 | 2,787,113 |
Inventories, net, long-term portion | 2,686,805 | 2,704,780 |
Inventories, net, total | $ 2,767,804 | $ 5,491,893 |
Inventories, Net - Schedule o_2
Inventories, Net - Schedule of Inventories Purchase from Related Parties (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Inventories, net | ||
Inventories - related parties, net | 14,608 | 2,637,389 |
Total | 14,608 | 2,637,389 |
Long-term inventories, net | 416,305 | 395,032 |
Long-term inventories - related parties, net | 368,479 | 1,184,583 |
Total | $ 784,784 | $ 1,579,615 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property and equipment, gross | $ 1,810,550 | $ 1,664,915 |
Less: accumulated depreciation | (1,321,355) | (1,190,012) |
Total property and equipment, net | 489,195 | 474,903 |
Building and Building Improvements [Member] | ||
Property and equipment, gross | 671,491 | 629,641 |
Motor Vehicles [Member] | ||
Property and equipment, gross | 459,809 | 498,137 |
Machinery and Equipment [Member] | ||
Property and equipment, gross | 535,061 | 501,713 |
Office Equipment [Member] | ||
Property and equipment, gross | $ 144,189 | $ 35,424 |
Property and Equipment, Net (De
Property and Equipment, Net (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expenses | $ 56,272 | $ 59,703 |
Land Use Rights and Yew Fores_3
Land Use Rights and Yew Forest Assets, Net - Schedule of Land Use Rights and Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Land use rights and yew forest assets | $ 46,281,816 | $ 44,760,976 |
Less: accumulated amortization | (4,329,333) | (4,712,280) |
Land use rights and yew forest assets, net | 41,952,483 | 40,048,696 |
Yew Forest Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Land use rights and yew forest assets, net | 41,684,284 | 39,804,819 |
Use Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Land use rights and yew forest assets, net | $ 268,199 | $ 243,877 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 15 years | 15 years |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 50 years | 50 years |
Land Use Rights and Yew Fores_4
Land Use Rights and Yew Forest Assets, Net - Schedule of Amortization of Land Use Rights and Yew Forest Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
2021 | $ 2,911,967 | |
2022 | 2,911,967 | |
2023 | 2,911,967 | |
2024 | 2,911,967 | |
2025 | 2,911,967 | |
2026 and thereafter | 27,392,648 | |
Total, net | 41,952,483 | $ 40,048,696 |
Yew Forest Assets [Member] | ||
2021 | 2,901,814 | |
2022 | 2,901,814 | |
2023 | 2,901,814 | |
2024 | 2,901,814 | |
2025 | 2,901,814 | |
2026 and thereafter | 27,175,214 | |
Total, net | 41,684,284 | 39,804,819 |
Use Rights [Member] | ||
2021 | 10,153 | |
2022 | 10,153 | |
2023 | 10,153 | |
2024 | 10,153 | |
2025 | 10,153 | |
2026 and thereafter | 217,434 | |
Total, net | $ 268,199 | $ 243,877 |
Land Use Rights and Yew Fores_5
Land Use Rights and Yew Forest Assets, Net (Details Narrative) | May 16, 2019m² | Jun. 14, 2018m² | Mar. 21, 2004m² | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Revenue from forest land | $ | $ 26,418,449 | $ 17,850,376 | |||
Joint Venture Planting Agreements [Member] | |||||
Revenue from forest land | $ | |||||
Joint Venture Planting Agreements [Member] | Wuchang City Xinlin Forestry Co Ltd [Member] | |||||
Forest the land | m² | 1,000,000 | ||||
Yew trees land period, description | The Company is required to plant and maintain yew trees on this forest land from 2004 to 2034. | ||||
Profits and other agriculture distributed, description | Any profits from the planting and sales of yew trees and other agriculture shall be distributed 80% to the Company and 20% to the Forest Bureau. | ||||
Joint Venture Planting Agreements [Member] | Qingan Forest Bureau [Member] | |||||
Forest the land | m² | 15,730 | 15,730 | |||
Yew trees land period, description | Pursuant to the Joint Venture Agreement, the Company is required to plant and maintain yew trees on this forest land for 20 and 30 years, respectively. | Pursuant to the Joint Venture Agreement, the Company is required to plant and maintain yew trees on this forest land for 20 and 30 years, respectively. | |||
Profits and other agriculture distributed, description | Any profits from the planting and/or sale of yew trees and other agriculture shall be distributed 70-80% to the Company and 20-30% to the Qingan Forest Bureau. | Any profits from the planting and/or sale of yew trees and other agriculture shall be distributed 70-80% to the Company and 20-30% to the Qingan Forest Bureau. |
Taxes - Schedule of Provision f
Taxes - Schedule of Provision for Income taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Federal | ||
Current | $ (9,889) | |
Deferred | ||
Total | (9,889) | |
State | ||
Current | 780 | |
Deferred | ||
Total | 780 | |
Foreign | ||
Current | 27,968 | 21,103 |
Deferred | ||
Total | 27,968 | 21,103 |
Total | ||
Current | 28,768 | 11,214 |
Deferred | ||
Total | $ 28,768 | $ 11,214 |
Taxes - Schedule of Deferred Ta
Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets Net operating loss carry-forward | $ 384,987 | $ 361,712 |
Deferred tax assets Inventory write-down | 311,536 | |
Total | 384,987 | 673,248 |
Valuation allowance | (384,987) | (673,248) |
Net deferred tax assets |
Taxes - Schedule of Effective I
Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal income tax rate | 21.00% | 21.00% |
Tax rate difference | 7.40% | 8.00% |
PRC tax exemption | (44.60%) | (51.60%) |
Income tax from previous year | (1.00%) | |
Income tax difference under different tax jurisdictions | ||
GILTI tax | ||
Other | 0.10% | 2.10% |
Valuation allowance | 18.00% | 22.60% |
Effective tax rate | 1.90% | 1.00% |
Taxes (Details Narrative)
Taxes (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 22, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | ||||
United States federal income tax rate | 21.00% | 21.00% | ||
Provision for income taxes | $ 28,768 | $ 11,214 | ||
Tax rate percentage | ||||
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 the exception of sales of handicrafts, yew candle, pine needle extracts and yew essential oil soap which are not within the scope of agricultural area. | |||
Income tax payable | $ 115,327 | $ 973,647 | ||
Cumulative undistributed earnings of foreign subsidiary and VIE | ||||
One-time transition tax | $ 1,431,835 | |||
Payment of transition tax | $ 114,547 | $ 114,547 | ||
U.S. corporate income tax, description | The one-time transition tax, based on the Company’s total post-1986 earnings and profits (“E&P”) that it previously deferred from U.S. income taxes, is recognized a one-time transition tax of $1,431,835 for the transition tax on accumulated undistributed earnings of non-U.S. subsidiaries during the year ended December 31, 2018. The Company elected to pay the one-time transition tax over eight years commencing in 2018. For the years ended December 31, 2020 and 2019, $114,547 and $114,547 transition tax payments have been made, respectively. | |||
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 expense | ||||
Value added tax for agricultural products | 13.00% | |||
Value added tax input credit | 56,637 | $ 349,096 | ||
HONG KONG | ||||
Income Tax Contingency [Line Items] | ||||
Tax rate percentage | 16.50% | |||
Yew Bio Pharm Group Inc [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Provision for income taxes | $ 780 | $ (9,889) | ||
Minimum [Member] | ||||
Income Tax Contingency [Line Items] | ||||
United States federal income tax rate | 21.00% | |||
Value added tax for handicrafts | 16.00% | |||
Maximum [Member] | ||||
Income Tax Contingency [Line Items] | ||||
United States federal income tax rate | 35.00% | |||
Value added tax for handicrafts | 17.00% |
Short-Term Borrowings and Not_2
Short-Term Borrowings and Note Payable (Details Narrative) - USD ($) | Jul. 31, 2020 | Jul. 24, 2020 | Jul. 23, 2020 | Feb. 25, 2020 | Aug. 20, 2019 | Jul. 26, 2019 | May 13, 2019 | Dec. 22, 2016 | Apr. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | May 01, 2020 | Jan. 30, 2020 | Aug. 31, 2018 |
Interest expense | $ 481,852 | $ 390,380 | |||||||||||||
SBA Economic Injury Disaster Loans [Member] | |||||||||||||||
Loan advances | $ 9,000 | ||||||||||||||
Pay check protection program loan [Member] | Promissory Note [Member] | |||||||||||||||
Loan amount | $ 70,920 | ||||||||||||||
Interest rate of loans | 1.00% | ||||||||||||||
Loan outstanding | 70,920 | ||||||||||||||
Yingkou Bank [Member] | |||||||||||||||
Loan amount | $ 2,200,000 | $ 735,000 | $ 718,000 | $ 2,153,000 | |||||||||||
Interest rate of loans | 6.525% | 6.525% | |||||||||||||
Debt instrument maturity date | Jul. 23, 2021 | Jul. 23, 2021 | Aug. 19, 2020 | Jul. 25, 2020 | |||||||||||
Loan outstanding | 2,300,000 | 2,153,000 | |||||||||||||
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] | |||||||||||||||
Loan amount | $ 718,000 | ||||||||||||||
Interest rate of loans | 5.4375% | ||||||||||||||
Loan outstanding | 765,000 | 718,000 | |||||||||||||
Yicheng Wang [Member] | Loan Agreement Three [Member] | |||||||||||||||
Interest rate of loans | 5.00% | ||||||||||||||
RMB [Member] | 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 | |||||||||||||
RMB [Member] | Yingkou Bank [Member] | Loan Agreement One [Member] | |||||||||||||||
Loan amount | $ 15,000,000 | ||||||||||||||
RMB [Member] | Yingkou Bank [Member] | Loan Agreement Two [Member] | |||||||||||||||
Loan amount | $ 5,000,000 | ||||||||||||||
Loan outstanding | 5,000,000 | 5,000,000 | |||||||||||||
RMB [Member] | Yicheng Wang [Member] | Loan Agreement Three [Member] | |||||||||||||||
Line of credit maximum borrowing capacity | $ 600,000 | ||||||||||||||
China Everbright Bank [Member] | Line of Credit [Member] | |||||||||||||||
Line of credit maximum borrowing capacity | $ 2,820,000 | $ 2,800,000 | |||||||||||||
Debt instrument 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 | $ 2,800,000 | 2,800,000 | |||||||||||||
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] | RMB [Member] | |||||||||||||||
Line of credit maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 | |||||||||||||
Postal Saving Bank of China [Member] | Line of Credit [Member] | |||||||||||||||
Line of credit maximum borrowing capacity | $ 2,830,000 | ||||||||||||||
Debt instrument term | 10 years | ||||||||||||||
Line of credit interest rate | 5.22% | ||||||||||||||
Line of credit remaining borrowing capacity | $ 3,100,000 | 290,000 | |||||||||||||
Postal Saving Bank of China [Member] | Line of Credit [Member] | RMB [Member] | |||||||||||||||
Line of credit maximum borrowing capacity | $ 20,000,000 | ||||||||||||||
Line of credit remaining borrowing capacity | $ 20,000,000 | $ 20,000,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | Oct. 29, 2019 | Oct. 03, 2019 | Feb. 28, 2019 | Sep. 25, 2012 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Compensation committee percentage | 80.00% | 100.00% | |||||
Stock option granted | |||||||
Cancellation of common shares issued to related parties | |||||||
Common stock exercise price | $ 0.11 | ||||||
Stock options vesting, description | The Board approved to extend the expiration date of 5,000,000 options issued to Zhiguo Wang and 2,488,737 options issued to Guifang Qi from December 31, 2019 to December 31, 2021, and 200,000 options issued to William B. Barnett from October 11, 2019 to December 31, 2021. | ||||||
Stock option expense | $ 284,461 | ||||||
Exercisable stock options intrinsic value | |||||||
Recognized incremental compensation cost | $ 284,461 | ||||||
Weighted average remaining contractual life | 2 years | 1 year | 2 years | 3 years | |||
Chinese Investor [Member] | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Cancellation of common shares issued to related parties | 375,000 | ||||||
2012 Equity Incentive Plan [Member] | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Number of shares authorized for grants under the plan | 15,000,000 | ||||||
Share based payment award, term | P10Y | ||||||
Stock option available for grant | 2,261,263 | ||||||
2012 Equity Incentive Plan [Member] | Two to Four Years LIfe Term | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Stock option granted | 7,738,737 | 7,738,737 | |||||
2019 Equity Incentive Plan [Member] | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Number of shares authorized for grants under the plan | 5,000,000 | ||||||
Share based payment award, term | P10Y |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Measurement Inputs and Management Assumptions (Details) | Oct. 03, 2019USD ($) |
Zhiguo Wang [Member] | Before Revaluation Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Terms (In Years) | 3 months |
Computed Volatility | 125.00% |
Risk free Interest Rate (%) | 1.70% |
Expected Dividends | |
Fair Value | $ 9,285 |
Zhiguo Wang [Member] | After Revaluation Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Terms (In Years) | 2 years 3 months |
Computed Volatility | 127.00% |
Risk free Interest Rate (%) | 1.39% |
Expected Dividends | |
Fair Value | $ 194,285 |
Guifang Qi [Member] | Before Revaluation Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Terms (In Years) | 3 months |
Computed Volatility | 125.00% |
Risk free Interest Rate (%) | 1.70% |
Expected Dividends | |
Fair Value | $ 4,622 |
Guifang Qi [Member] | After Revaluation Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Terms (In Years) | 2 years 3 months |
Computed Volatility | 127.00% |
Risk free Interest Rate (%) | 1.39% |
Expected Dividends | |
Fair Value | $ 96,705 |
William B Barnett [Member] | Before Revaluation Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Terms (In Years) | 7 days |
Computed Volatility | 29.00% |
Risk free Interest Rate (%) | 1.78% |
Expected Dividends | |
Fair Value | |
William B Barnett [Member] | After Revaluation Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Terms (In Years) | 2 years 3 months |
Computed Volatility | 127.00% |
Risk free Interest Rate (%) | 1.39% |
Expected Dividends | |
Fair Value | $ 7,378 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Option Activities (Details) - $ / shares | Oct. 03, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
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 | 7,738,737 | |
Number of Stock Options, Options exercisable | 7,738,737 | 7,738,737 | ||
Weighted Average Remaining Contractual Life in Years, Outstanding | 2 years | 1 year | 2 years | 3 years |
Weighted Average Remaining Contractual Life in Years, Options exercisable | 1 year | 2 years | ||
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 | $ 0.22 | |
Weighted Average Exercise Price, Options exercisable | $ 0.22 | $ 0.22 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock Issuable Upon Exercise of Options Outstanding (Details) | 12 Months Ended |
Dec. 31, 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 |
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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 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 ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income (loss) available to common stockholders for basic and diluted net income per share of common stock | $ 1,464,882 | $ 985,506 |
Weighted average common stock outstanding - basic | 51,700,000 | 51,760,616 |
Stock options issued to directors/officers/employees | ||
Weighted average common stock outstanding - diluted | 51,700,000 | 51,760,616 |
Net income (loss) per common share - basic | $ 0.04 | $ 0.02 |
Net income (loss) per common share - diluted | $ 0.04 | $ 0.02 |
Leases (Details Narrative)
Leases (Details Narrative) | Dec. 31, 2020 |
Leases [Abstract] | |
Incremental borrowing rate | 6.44% |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expenses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net lease cost | $ 74,172 | $ 128,664 |
Selling, General and Administrative Expenses [Member] | ||
Operating lease cost | $ 74,172 | $ 128,664 |
Leases - Schedule of Balance Sh
Leases - Schedule of Balance Sheet Information Related to Leases (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease ROU assets | $ 333,402 | $ 399,817 |
Total leased assets | 333,402 | 399,817 |
Current operating lease liabilities | 65,476 | 52,104 |
Non-current operating lease liabilities | 292,409 | 351,145 |
Total operating lease liabilities | $ 357,885 | $ 403,249 |
Operating leases | 10 years 8 months 12 days | 6 years 2 months 12 days |
Operating leases | 6.44% | 6.44% |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information Related to Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 74,401 | $ 127,127 |
Leases - Schedule of Minimum Fu
Leases - Schedule of Minimum Future Lease Payments (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 79,997 | |
2022 | 80,327 | |
2023 | 33,594 | |
2024 | 29,332 | |
2025 | 26,314 | |
Thereafter | 211,830 | |
Total lease payments | 461,393 | |
Less: Interest | (76,608) | |
Present value of lease liabilities | $ 357,885 | $ 403,249 |
Concentrations of Credit Risk_3
Concentrations of Credit Risk and Major Customers (Details Narrative) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts payable [Member] | ||
Concentration of credit risk, percentage | 10.00% | 10.00% |
Revenue [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) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | ||||
A (Yew Pharmaceutical, a related party) {Member] | Accounts Receivable [Member] | |||||
Concentration of credit risk, percentage | |||||
A (Yew Pharmaceutical, a related party) {Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
Concentration of credit risk, percentage | 32.20% | ||||
A (Yew Pharmaceutical, a related party) {Member] | Accounts payable [Member] | Supplier [Member] | |||||
Concentration of credit risk, percentage | |||||
A (Yew Pharmaceutical, a related party) {Member] | Revenue [Member] | Customer Concentration Risk [Member] | |||||
Concentration of credit risk, percentage | 61.00% | 38.40% | |||
A (Yew Pharmaceutical, a related party) {Member] | Purchase [Member] | Supplier [Member] | |||||
Concentration of credit risk, percentage | 40.10% | 47.00% | |||
B (Hong Kong YIDA Commerce Co., Limited, a related party) [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
Concentration of credit risk, percentage | [1] | 2.50% | |||
B (Hong Kong YIDA Commerce Co., Limited, a related party) [Member] | Revenue [Member] | Customer Concentration Risk [Member] | |||||
Concentration of credit risk, percentage | [1] | 25.60% | |||
C (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) {Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
Concentration of credit risk, percentage | [1] | 97.60% | |||
C (GOLDEN PEACH TRAVEL SERVICE COMPANY LTD) {Member] | Revenue [Member] | Customer Concentration Risk [Member] | |||||
Concentration of credit risk, percentage | [1] | 34.10% | |||
E (LIFEFORFUN LIMITED, a related party) [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
Concentration of credit risk, percentage | 65.20% | ||||
E (LIFEFORFUN LIMITED, a related party) [Member] | Revenue [Member] | Customer Concentration Risk [Member] | |||||
Concentration of credit risk, percentage | 25.80% | ||||
G (Heilongjiang Weishahe Agriculture Technology Co., Ltd) [Member] | Accounts payable [Member] | Supplier [Member] | |||||
Concentration of credit risk, percentage | 68.30% | 85.30% | |||
G (Heilongjiang Weishahe Agriculture Technology Co., Ltd) [Member] | Purchase [Member] | Supplier [Member] | |||||
Concentration of credit risk, percentage | 10.20% | [1] | |||
F (Xingcai Shi) [Member] | Accounts payable [Member] | Supplier [Member] | |||||
Concentration of credit risk, percentage | 18.10% | ||||
F (Xingcai Shi) [Member] | Purchase [Member] | Supplier [Member] | |||||
Concentration of credit risk, percentage | [1] | ||||
[1] | Less than 10% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | Apr. 02, 2021USD ($) | Feb. 10, 2020USD ($) | Oct. 02, 2016 | Jan. 01, 2015m² | Jan. 09, 2010USD ($) | Jan. 02, 2010USD ($) | Mar. 25, 2005USD ($)m² | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 31, 2015 | Jan. 30, 2010 |
Revenue | $ 27,307,687 | $ 27,883,649 | |||||||||
Cost of revenues | 23,780,672 | 27,109,518 | |||||||||
Lifeforfun Limited [Member] | |||||||||||
Revenue | 7,056,000 | ||||||||||
Collection of receivables | 6,036,080 | ||||||||||
DMSU [Member] | |||||||||||
Revenue | 2,592,000 | ||||||||||
Collection of receivables | 2,753,000 | ||||||||||
Recovery of accounts receivable | 161,000 | 1,034,000 | |||||||||
DMSU [Member] | Under 2018 [Member] | |||||||||||
Accounts receivable - related parties | $ 5,304,000 | ||||||||||
Collection of receivables | $ 1,000,000 | ||||||||||
DMSU [Member] | Under 2018 [Member] | Subsequent Event [Member] | |||||||||||
Recovery of accounts receivable | $ 757,000 | ||||||||||
YIDA [Member] | |||||||||||
Revenue | 7,144,649 | ||||||||||
Collection of receivables | 193,000 | ||||||||||
Recovery of accounts receivable | 386,000 | 193,000 | |||||||||
ZTC [Member] | |||||||||||
Payments for purchase of assets | 1,057,664 | 2,121,880 | |||||||||
Carrying costs of received assets | 935,885 | 1,729,793 | |||||||||
Deduction of additional paid in capital | 121,779 | 392,087 | |||||||||
Due to related parties | 124,150 | ||||||||||
Leased area of 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. | ||||||||||
Xinlin [Member] | |||||||||||
Payments for purchase of assets | 463,634 | 148,396 | |||||||||
Carrying costs of received assets | 410,316 | 121,981 | |||||||||
Deduction of additional paid in capital | 53,318 | 26,415 | |||||||||
Due to related parties | |||||||||||
Jinguo Wang [Member] | |||||||||||
Payments for purchase of assets | 1,124,312 | 1,078,121 | |||||||||
Due to related parties | |||||||||||
Weihong Zhang [Member] | |||||||||||
Payments for purchase of assets | 28,977 | 789,032 | |||||||||
Chunping Wang [Member] | |||||||||||
Payments for purchase of assets | 870,762 | 1,653,347 | |||||||||
Xue Wang [Member] | |||||||||||
Payments for purchase of assets | 751,956 | 157,054 | |||||||||
Cai Wang [Member] | |||||||||||
Payments for purchase of assets | 391,191 | 81,075 | |||||||||
Mr. Wang [Member] | |||||||||||
Recovery of accounts receivable | |||||||||||
Operating lease term | 15 years | ||||||||||
Lease expiration date | Dec. 31, 2025 | ||||||||||
Annual payments under operating lease | $ 15,000 | 10,000 | 1,500 | ||||||||
Operating lease rent expenses | 2,200 | 2,200 | |||||||||
Prepaid rent | 1,400 | 1,400 | |||||||||
A Cheng [Member] | |||||||||||
Prepaid rent | 3,600 | 3,600 | |||||||||
RMB [Member] | ZTC [Member] | |||||||||||
Amount prepaid to purchase intention | 5,800 | ||||||||||
Annual payments under operating lease | $ 162,450 | ||||||||||
Operating lease rent expenses | 24,000 | 24,000 | |||||||||
Yew Pharmaceutical [Member] | |||||||||||
Cost of raw materials | $ 146,000 | ||||||||||
Revenue | 16,659,547 | 14,792,713 | |||||||||
Cost of revenues | 10,705,727 | 9,962,940 | |||||||||
Accounts receivable - related parties | 2,982,114 | ||||||||||
Purchase of products | 7,980,296 | 13,299,780 | |||||||||
Cost of Goods and Services Sold | 10,059,610 | 16,633,020 | |||||||||
Yew Pharmaceutical [Member] | Accounts payable [Member] | |||||||||||
Cost of revenues | 16,629 | ||||||||||
Yew Pharmaceutical [Member] | RMB [Member] | |||||||||||
Cost of raw materials | $ 1,000,000 | ||||||||||
HBP [Member] | |||||||||||
Accounts receivable - related parties | 96,282 | 103,158 | |||||||||
Leased area of land | m² | 50 | ||||||||||
Operating lease rent expenses | 1,737 | ||||||||||
Jixing Lease [Member] | |||||||||||
Recovery of accounts receivable | 700 | ||||||||||
Lease expiration date | Jun. 30, 2021 | ||||||||||
Operating lease rent expenses | $ 1,100 | ||||||||||
HYF [Member] | |||||||||||
Leased area of land | m² | 225 | ||||||||||
HDS [Member] | |||||||||||
Operating lease term | 15 years | 3 years |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Company Transaction with the Related Parties (Details) | 12 Months Ended |
Dec. 31, 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 Party Lease Payment (Details) - RMB [Member] | 12 Months Ended |
Dec. 31, 2020USD ($) | |
March 2002 to February 2012 [Member] | |
Annual lease amount | $ 25,000 |
Payment due date | Before December 2012 |
March 2012 to February 2017 [Member] | |
Annual lease amount | $ 25,000 |
Payment due date | Before December 2017 |
March 2017 to March 2025 [Member] | |
Annual lease amount | $ 25,000 |
Payment due date | Before December 2025 |
Related Party Transactions - _3
Related Party Transactions - Schedule of Due to Related Parties (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Due to related parties | [1] | $ 651,360 | $ 633,779 |
Zhiguo Wang and Guifang Qi [Member] | |||
Due to related parties | 555,078 | 530,621 | |
HBP [Member] | |||
Due to related parties | $ 96,282 | $ 103,158 | |
[1] | The amounts due to related parties bear no interest and are payable on demand. |
Statutory Reserves (Details Nar
Statutory Reserves (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Reserves [Abstract] | ||
Appropriation of statutory surplus reserve, description | Appropriation to the statutory surplus reserve is required to be at least 10% of the after tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities' registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the board of directors. | |
Maximum percentage balance required of registered capital in reserve for business expansion | 50.00% | |
Statutory surplus reserve fund, description | The statutory surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years' losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital. | |
Accumulated balance of statutory reserve | $ 3,762,288 | $ 3,762,288 |
Segment Information (Details Na
Segment Information (Details Narrative) | 12 Months Ended |
Dec. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Geographical Distributions of Company Financial Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 27,307,687 | $ 27,883,649 |
Income (Loss) from operations | 2,568,699 | 1,011,519 |
Net income (loss) | 1,464,882 | 985,506 |
Long-term assets | 48,457,278 | 42,535,356 |
Reportable assets | 58,446,662 | 54,206,717 |
Operating Segments [Member] | ||
Revenue | 27,307,687 | 27,883,649 |
Income (Loss) from operations | 2,568,700 | 1,011,519 |
Net income (loss) | 1,464,883 | 985,506 |
Long-term assets | 48,457,078 | 42,535,356 |
Reportable assets | 58,446,662 | 54,206,717 |
Operating Segments [Member] | China [Member] | ||
Revenue | 27,261,876 | 27,552,181 |
Income (Loss) from operations | 3,848,461 | 2,047,256 |
Net income (loss) | 2,729,064 | 1,977,627 |
Long-term assets | 52,130,997 | 44,547,842 |
Reportable assets | 61,362,889 | 55,407,391 |
Operating Segments [Member] | United States [Member] | ||
Revenue | 100,831 | 354,725 |
Income (Loss) from operations | (1,279,761) | (1,031,772) |
Net income (loss) | (1,264,181) | (988,156) |
Long-term assets | 498,830 | 1,363,586 |
Reportable assets | 1,278,250 | 2,146,518 |
Eliminations [Member] | ||
Revenue | (55,020) | (23,257) |
Income (Loss) from operations | (3,965) | |
Net income (loss) | (3,965) | |
Long-term assets | (4,172,549) | (3,376,072) |
Reportable assets | $ (4,194,477) | $ (3,347,192) |