Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 31, 2021 | Dec. 16, 2021 | |
Details | ||
Registrant CIK | 0000806592 | |
Fiscal Year End | --04-30 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-53595 | |
Entity Registrant Name | SUNWIN STEVIA INTERNATIONAL, INC. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 56-2416925 | |
Entity Address, Address Line One | 6 Shengwang Ave., | |
Entity Address, City or Town | Qufu, Shandong, | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 273100 | |
Country Region | (86) | |
City Area Code | 537 | |
Local Phone Number | 4424999 | |
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 | true | |
Entity Common Stock, Shares Outstanding | 199,632,803 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Oct. 31, 2021 | Apr. 30, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 698,635 | $ 1,565,829 |
Accounts receivable, net | 7,500,106 | 1,693,801 |
Accounts receivable - related party | 0 | 5,999,791 |
Inventories, net | 9,233,808 | 12,930,461 |
Prepaid expenses and other current assets | 4,199,309 | 661,882 |
Total Current Assets | 21,631,858 | 22,851,764 |
Property and equipment, net | 8,385,563 | 9,217,115 |
Land use rights, net | 2,037,635 | 0 |
Total Assets | 32,055,056 | 32,068,879 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 15,693,489 | 11,141,408 |
Short-term loans | 1,669,373 | 2,955,304 |
Due to related parties | 9,134,337 | 9,843,636 |
Total Current Liabilities | 26,497,199 | 23,940,348 |
Total Liabilities | 26,497,199 | 23,940,348 |
Commitments and Contingencies | 0 | 0 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 200,000,000 shares authorized; 199,632,803 and 199,632,803 shares issued and outstanding as of October 31, 2021 and April 30, 2021, respectively | 199,633 | 199,633 |
Additional paid-in capital | 47,732,350 | 47,732,350 |
Accumulated deficit | (44,986,263) | (43,357,208) |
Accumulated other comprehensive income | 5,239,855 | 5,193,512 |
Total Sunwin Stevia International, Inc. Stockholders' Equity | 8,185,575 | 9,768,287 |
Noncontrolling interest | (2,627,718) | (1,639,756) |
Total Stockholders' Equity | 5,557,857 | 8,128,531 |
Total Liabilities and Stockholders' Equity | $ 32,055,056 | $ 32,068,879 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Details | ||||
Revenues | $ 10,108,124 | $ 3,931,149 | $ 16,376,584 | $ 9,219,004 |
Revenues - related parties | 0 | 502,695 | 0 | 2,254,518 |
Total revenues | 10,108,124 | 4,433,844 | 16,376,584 | 11,473,522 |
Cost of revenues | 10,178,745 | 3,991,702 | 15,564,376 | 9,254,694 |
Cost of revenues - related parties | 0 | 546,254 | 0 | 2,155,762 |
Total cost of revenues | 10,178,745 | 4,537,956 | 15,564,376 | 11,410,456 |
Gross profit | (70,621) | (104,112) | 812,208 | 63,066 |
Operating expenses: | ||||
Selling expenses | 379,977 | 256,566 | 748,789 | 567,481 |
General and administrative expenses | 527,010 | 172,384 | 941,653 | 645,560 |
Research and development expenses | 792,367 | 71,129 | 1,148,080 | 432,567 |
Total operating expenses, net | 1,699,354 | 500,079 | 2,838,522 | 1,645,608 |
Loss from operations | (1,769,975) | (604,191) | (2,026,314) | (1,582,542) |
Other income (expenses): | ||||
Other expenses | (2,864) | (2,252) | (425,971) | (1,187) |
Grant income | 0 | 10 | 0 | 576 |
Interest income | 490 | 262 | 2,142 | 493 |
Interest expense - related party | (95,842) | (4,867) | (154,591) | (21,674) |
Interest expense | (24,582) | (47,413) | (38,156) | (109,944) |
Total other expenses | (122,798) | (54,260) | (616,576) | (131,736) |
Loss operations before income taxes | (1,892,773) | (658,451) | (2,642,890) | (1,714,278) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | (1,892,773) | (658,451) | (2,642,890) | (1,714,278) |
Less: net loss attributable to noncontrolling interest | (723,911) | (255,071) | (1,013,835) | (648,299) |
Net loss attributable to Sunwin Stevia International, Inc. | (1,168,862) | (403,380) | (1,629,055) | (1,065,979) |
Comprehensive income (loss): | ||||
Net loss | (1,168,862) | (403,380) | (1,629,055) | (1,065,979) |
Foreign currency translation adjustment | 62,183 | 549,797 | 72,216 | 680,973 |
Total comprehensive income (loss) | (1,106,679) | 146,417 | (1,556,839) | (385,006) |
Less: comprehensive gain attributable to noncontrolling interest | 22,181 | 203,417 | 25,873 | 251,946 |
Comprehensive loss attributable to Sunwin Stevia International, Inc. | $ (1,128,860) | $ (57,000) | $ (1,582,712) | $ (636,952) |
Earnings per common share attributable to Sunwin Stevia International, Inc.: | ||||
Net loss per common share attributable to Sunwin Stevia International, Inc. - basic and diluted | $ (0.01) | $ 0 | $ (0.01) | $ (0.01) |
Weighted average common shares outstanding - basic and diluted | 199,632,803 | 199,632,803 | 199,632,803 | 199,632,803 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | USD ($)shares |
Total shareholders' equity, beginning balances at Apr. 30, 2020 | $ 12,371,487 |
Beginning balances at Apr. 30, 2020 | shares | 47,931,983 |
Common stock and additional paid-in capital: | |
Common stock issued | $ 0 |
Ending balances at Oct. 31, 2020 | shares | 47,931,983 |
Beginning balances at Apr. 30, 2020 | $ (40,118,394) |
Retained Earnings | |
Net loss | (1,065,979) |
Ending balances at Oct. 31, 2020 | (41,184,373) |
Beginning balances at Apr. 30, 2020 | 4,557,898 |
Accumulated other comprehensive income: | |
Foreign currency translation adjustment | 429,027 |
Ending balances at Oct. 31, 2020 | 4,986,925 |
Beginning balances at Apr. 30, 2020 | 0 |
Noncontrolling Interest: | |
Noncontrolling Interest Profit Loss | (648,299) |
Accumulated other comprehensive income/(loss) Minority Interest | 251,946 |
Ending balances at Oct. 31, 2020 | (396,353) |
Total shareholders' equity, ending balances at Oct. 31, 2020 | 11,338,182 |
Total shareholders' equity, beginning balances at Jul. 31, 2020 | $ 11,446,836 |
Beginning balances at Jul. 31, 2020 | shares | 47,931,983 |
Common stock and additional paid-in capital: | |
Common stock issued | $ 0 |
Ending balances at Oct. 31, 2020 | shares | 47,931,983 |
Beginning balances at Jul. 31, 2020 | $ (40,780,993) |
Retained Earnings | |
Net loss | (403,380) |
Ending balances at Oct. 31, 2020 | (41,184,373) |
Beginning balances at Jul. 31, 2020 | 4,640,545 |
Accumulated other comprehensive income: | |
Foreign currency translation adjustment | 346,380 |
Ending balances at Oct. 31, 2020 | 4,986,925 |
Beginning balances at Jul. 31, 2020 | (344,699) |
Noncontrolling Interest: | |
Noncontrolling Interest Profit Loss | (255,071) |
Accumulated other comprehensive income/(loss) Minority Interest | 203,417 |
Ending balances at Oct. 31, 2020 | (396,353) |
Total shareholders' equity, ending balances at Oct. 31, 2020 | 11,338,182 |
Total shareholders' equity, beginning balances at Apr. 30, 2021 | $ 8,128,531 |
Beginning balances at Apr. 30, 2021 | shares | 47,931,983 |
Common stock and additional paid-in capital: | |
Common stock issued | $ 0 |
Ending balances at Oct. 31, 2021 | shares | 47,931,983 |
Beginning balances at Apr. 30, 2021 | $ (43,357,208) |
Retained Earnings | |
Net loss | (1,629,055) |
Ending balances at Oct. 31, 2021 | (44,986,263) |
Beginning balances at Apr. 30, 2021 | 5,193,512 |
Accumulated other comprehensive income: | |
Foreign currency translation adjustment | 46,343 |
Ending balances at Oct. 31, 2021 | 5,239,855 |
Beginning balances at Apr. 30, 2021 | (1,639,756) |
Noncontrolling Interest: | |
Noncontrolling Interest Profit Loss | (1,013,835) |
Accumulated other comprehensive income/(loss) Minority Interest | 25,873 |
Ending balances at Oct. 31, 2021 | (2,627,718) |
Total shareholders' equity, ending balances at Oct. 31, 2021 | 5,557,857 |
Total shareholders' equity, beginning balances at Jul. 31, 2021 | $ 7,388,447 |
Beginning balances at Jul. 31, 2021 | shares | 47,931,983 |
Common stock and additional paid-in capital: | |
Common stock issued | $ 0 |
Ending balances at Oct. 31, 2021 | shares | 47,931,983 |
Beginning balances at Jul. 31, 2021 | $ (43,817,401) |
Retained Earnings | |
Net loss | (1,168,862) |
Ending balances at Oct. 31, 2021 | (44,986,263) |
Beginning balances at Jul. 31, 2021 | 5,199,853 |
Accumulated other comprehensive income: | |
Foreign currency translation adjustment | 40,002 |
Ending balances at Oct. 31, 2021 | 5,239,855 |
Beginning balances at Jul. 31, 2021 | (1,925,988) |
Noncontrolling Interest: | |
Noncontrolling Interest Profit Loss | (723,911) |
Accumulated other comprehensive income/(loss) Minority Interest | 22,181 |
Ending balances at Oct. 31, 2021 | (2,627,718) |
Total shareholders' equity, ending balances at Oct. 31, 2021 | $ 5,557,857 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (2,642,890) | $ (1,714,278) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization expenses | 736,823 | 626,560 |
Loss on disposition of property and equipment | 386,687 | 0 |
Provisions for obsolete inventories | 653,505 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable and notes receivable | 317,355 | 647,614 |
Accounts receivable - related party | 0 | 1,677,074 |
Inventories | 3,141,942 | (1,679,993) |
Prepaid expenses and other current assets | (3,560,027) | (320,653) |
Accounts payable and accrued expenses | (1,488,413) | 1,074,321 |
Taxes payable | 9,263 | (88,526) |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (2,445,755) | 222,119 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (150,258) | (97,289) |
Purchases of land use rights | (2,055,960) | |
NET CASH USED IN INVESTING ACTIVITIES | (2,198,190) | (97,289) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short term loans | 1,008,096 | 0 |
Repayment of short term loans | 0 | (678,362) |
Advance from related parties | 6,302,619 | 7,538,516 |
Repayment of related party advances | (3,541,521) | (7,755,243) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 3,769,194 | (895,089) |
EFFECT OF EXCHANGE RATE ON CASH | 7,557 | 28,918 |
NET DECREASE IN CASH | (867,194) | (741,341) |
Cash at the beginning of period | 1,565,829 | 1,137,920 |
Cash at the end of period | 698,635 | 396,579 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||
Cash paid for income taxes | 0 | 0 |
Cash paid for interest | 4,885 | 17,077 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Property and equipment acquired on credit as payable | 30,773 | 244,896 |
Accrued interest payable to related party | $ 171,944 | $ 8,897 |
NOTE 1 - ORGANIZATION AND OPERA
NOTE 1 - ORGANIZATION AND OPERATIONS | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 1 - ORGANIZATION AND OPERATIONS | NOTE 1 - ORGANIZATION AND OPERATIONS DESCRIPTION OF BUSINESS Sunwin Stevia International, Inc. ("Sunwin Stevia International"), a Nevada corporation, and its subsidiaries are referred to in this report as "we", "us", "our", "Sunwin" or the "Company". We sell stevioside, a natural sweetener, and other pharmaceutical productions, such as Metformin. Substantially all of our operations are located in the People's Republic of China (the "PRC"). We have built an integrated company with the sourcing and production capabilities designed to meet the needs of our customers. Our operations are organized into two operating segments related to our product lines: - Stevioside; and - Corporate and other. For the six months ended October 31, 2021 and fiscal year 2022, our subsidiaries included in operations consisted of the following: - Sunwin Stevia International; - Qufu Natural Green Engineering Co., Ltd. ("Qufu Natural Green"), wholly owned by Sunwin Stevia International; - Qufu Shengren Pharmaceutical Co., Ltd. ("Qufu Shengren"), 61% owned by Qufu Natural Green; - Sunwin USA, LLC ("Sunwin USA"), wholly owned by Sunwin Stevia International; and - Qufu Shengren Import and Export Co., Ltd. (“Qufu Shengren Import and Export”), wholly owned subsidiary of Qufu Shengren. Qufu Shengren In fiscal 2009, Qufu Natural Green acquired Qufu Shengren for $3,097,242. The purchase price was equal to the value of the assets of Qufu Shengren as determined by an independent asset appraisal in accordance with asset appraisal principles in the PRC. Prior to being acquired by us, Qufu Shengren was engaged in the production and distribution of bulk drugs and pharmaceuticals. Subsequent to the acquisition, Qufu Shengren produces and distributes steviosides with a full range of grades from rebaudioside-A 10 to 99. Since fiscal 2018 we invested in a new production line for Metformin as one of the new product markets we intend to branch into. Metformin is the raw material of Metformin hydrochloride tablets. Metformin is the first-line medication for the treatment of type 2 diabetes, particularly in people who are not satisfied with simple diet control, especially those with obesity and hyperinsulinemia. On July 10, 2019, the Company entered into the Metformin Production Line Operation Management Agreement with an unaffiliated individual to operate the Metformin production line (see Note 9). Qufu Shengren Import and Export On October 9, 2019, Qufu Shengren invested RMB2,000,000 (approximately $288,000) in a new entity, Qufu Shengren Import and Export Co., Ltd., (“Qufu Shengren Import and Export”), a Chinese limited liability company, a 100% owned subsidiary of Qufu Shengren. Qufu Shengren Import and Export focuses on the export of our Stevia products, and the import and export of technology and other relevant products; we expect to increase operations in this subsidiary in the near future. Sunwin USA In fiscal year 2009, we entered into a distribution agreement with WILD Flavors to assist our 55% owned subsidiary, Sunwin USA, in the marketing and worldwide distribution of our stevioside-based sweetener products and issued WILD Flavors a 45% interest in Sunwin USA. In August 2012, the Company entered into an Exchange Agreement with WILD Flavors pursuant to which it purchased its 45% membership interest in Sunwin USA for an aggregate consideration of $1,625,874, which includes the issuance of 7,666,666 shares of our common stock valued at $1,533,333 and a cash payment of $92,541. The purchase included the product development and supply chain for OnlySweet. |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial reporting. The accompanying unaudited condensed consolidated financial statements for the interim periods presented are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the periods presented. Certain financial statement amounts relating to prior periods have been reclassified to conform to the current period presentation. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements should be read in conjunction with the financial statements and footnotes for the year ended April 30, 2021 included in our Form 10-K as filed with the SEC. The results of operations and cash flows for the six months ended October 31, 2021 are not necessarily indicative of the results of operations or cash flows which may be reported for future periods or the full fiscal year. The condensed consolidated balance sheet as of April 30, 2021 contained herein has been derived from the audited consolidated financial statements as of April 30, 2021, but do not include all disclosures required by the U.S. GAAP. Our unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries in operations. All intercompany accounts and transactions have been eliminated in consolidation. Our subsidiaries for operations include the following: - Qufu Natural Green; - Qufu Shengren; - Sunwin USA; and - Qufu Shengren Import and Export USE OF ESTIMATES The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the allowance for doubtful accounts, the allowance for obsolete inventory, the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets, and the value of stock-based compensation. Actual results could differ from those estimates. CASH AND CASH EQUIVALENTS We consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash and equivalents. As of October 31, 2021, we held $517,262 of our cash and cash equivalents with commercial banking institutions in the PRC, and $181,373 with banks in the United States. As of April 30, 2021, we held $1,403,969 of our cash and cash equivalents with commercial banking institution in PRC, and $161,860 in the United States. ACCOUNTS RECEIVABLE Accounts receivable and other receivable are reported at net realizable value. We have established an allowance for doubtful accounts based upon factors pertaining to the credit risk of specific customers, historical trends, and other information. Delinquent accounts are written off when it is determined that the amounts are uncollectible after exhaustive efforts on collection. We had none of allowance for doubtful accounts as of October 31, 2021 and April 30, 2021. - 6 - INVENTORIES Inventories, consisting of raw materials, work in process, and finished goods related to our products, are stated at the lower of cost or estimated net realizable value that can be estimated utilizing the weighted moving average method. A reserve is established when management determines that certain slow-moving inventories may be sold at below book value. These reserves are recorded based on estimates. As of October 31, 2021, the Company did not record a reserve for slow-moving inventories. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record a write down of inventories for the difference between the lower of cost or estimated net realizable value. As of October 31, 2021 and April 30, 2021, the Company wrote down inventories of $653,505 and $1,276,893, respectively. PROPERTY AND EQUIPMENT Property and equipment are stated at cost. Depreciation and amortization are provided using the straight line method over the estimated economic lives of the assets, which range from two to thirty years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. In accordance with paragraph 360-10-35-17 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC"), we examine 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 residual value rate and useful life of property and equipment are summarized as follows: Property and Equipment Residual value rate Useful life Office equipment 10% or 5% or 0% 3-15 years Auto and trucks 10% or 5% or 0% 2-10 Years Manufacturing equipment 10% or 5% or 0% 2-15 Years Buildings 10% or 5% or 0% 5-30 Years Included in property and equipment is construction-in-progress which consisted of factory improvements and machinery pending installation and included the costs of construction, machinery and equipment, and or any interest charges arising from borrowings used to finance these assets during the period of construction or installation of the assets if applicable. No provision for depreciation is made on construction-in-progress until such time as the relevant assets are completed and ready for their intended use. LONG-LIVED ASSETS In accordance with ASC 360, we review and evaluate our long-lived assets, including property and equipment and land use rights, for impairment or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets, including goodwill, if any. An impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of future cash flows from other asset groups. Our estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates. Based on our evaluation, we have determined certain long-lived assets that are no longer useful for our operations, and we recorded a loss on disposition of property and equipment of $386,687 and $nil on October 31, 2021 and April 30, 2021, respectively. LAND USE RIGHTS According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. Land use rights are being amortized using the straight-line method over the periods the rights are granted. FAIR VALUE OF FINANCIAL INSTRUMENTS We adopted ASC Section 820-10-35-37 to measure the fair value of our financial instruments. ASC Section 820-10-35-37 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. The adoption of ASC Section 820-10-35-37 did not have an impact on our financial position or operating results, but did expand certain disclosures. - 6 - ASC Section 820-10-35-37 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC Section 820-10-35-37 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity's own assumptions. The carrying amounts of our financial assets and liabilities, such as cash, accounts receivable, notes receivable, prepayments and other current assets, accounts payable, taxes payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. TAXES PAYABLE We are required to charge for and to collect value added taxes (VAT) on our sales on behalf of the PRC tax authority. We record VAT that we billed our customers as VAT payable. In addition, we are required to pay value added taxes on our primary purchases. We record VAT that is charged by our vendors as VAT receivable. We are required to file VAT return on a monthly basis with the PRC tax authority, in which we are entitled to claim the VAT that we are charged by vendors as VAT credit and these credits can be applied to our VAT payable that we billed our customers. Accordingly, these VAT payable and receivable are presented as net amounts for financial statement purposes. Taxes payable as of October 31, 2021 and April 30, 2021 amounted to $343,227 and $330,738, respectively, consisted primarily of VAT taxes. REVENUE RECOGNITION Pursuant to the guidance of ASC 606, we record revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The adoption of this guidance did not have a material impact on our unaudited condensed consolidated financial statements. In accordance with ASC 606, we recognize revenues from the sale of stevia and other productions upon shipment and transfer of title based on the trade terms. All product sales with customer specific acceptance provisions are recognized upon customer acceptance and the delivery of the products. We report revenues net of applicable sales taxes and related surcharges. • Identify the contract with a customer; • Identify the performance obligations in the contract; • Determine the transaction price; • Allocate the transaction price to the performance obligations in the contract; and • Recognize revenue when (or as) the entity satisfies a performance obligation. The Company is also a lessor, which is an entity that is lease underlying asset to the third party, The Company’s lease revenue is recognized under ASC Topic 842, Leases, (“ASC 842”), which was adopted on May 1, 2019. In general, the Company commences rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. The Company’s lease has been accounted for as operating lease. Rental revenue is recognized on a straight-line basis over the terms of the lease of five years. Actual amounts billed in accordance with the lease during any given period may have been higher or lower than the amount of rental revenue recognized for the period. The difference by which straight-line rental revenue exceeded rents billed in accordance with lease agreements is recorded as “accounts receivable”. The difference by which rents billed in accordance with lease agreements exceeded straight-line rental revenue is recorded as “advances from customer”. The Company does not offset lease income and lease expense. RELATED PARTY TRANSACTIONS A related party is generally defined as (i) any person and or their immediate family hold 10% or more of the company’s securities (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. The Company conducts business with its related parties in the ordinary course of business. Related parties may be individuals or corporate entities. - 6 - Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market 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. RECLASSIFICATION Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on the net earnings and financial position. GRANT INCOME Grants received from PRC government agencies are recognized as deferred grant income and recognized in the unaudited condensed consolidated statements of operations and comprehensive loss as and when they are earned for the specific research and development projects for which these grants are designated for. INCOME TAXES The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes We file federal and state income tax returns in the United States for our corporate operations pursuant to the U.S. Internal Revenue Code of 1986, as amended, and file separate foreign tax returns for our Chinese subsidiaries pursuant to the China's Unified Corporate Income Tax Law. We apply 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 consolidated 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 October 31, 2021, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. BASIC AND DILUTED EARNINGS PER SHARE Pursuant to ASC Section 260-10-45, basic loss per common share is computed by dividing loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of ours, subject to anti-dilution limitations. The following table presents a reconciliation of basic and diluted net loss per common share: - 7 - Three Months Ended October 31, Six Months Ended October 31, Numerator: 2021 2020 2021 2020 Net Loss attributable to Sunwin Stevia International, Inc. $ (1,168,862) $ (403,380) $ (1,629,055) $ (1,065,979) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 199,632,803 199,632,803 Stock awards, options, and warrants - - - - Denominator for diluted earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 199,632,803 199,632,803 Basic and diluted loss per common share : Net loss per common share - basic and diluted $ (0.01) $ (0.00) $ (0.01) $ (0.01) FOREIGN CURRENCY TRANSLATION Transactions and balances originally denominated in U.S. dollars are presented at their original amounts. Transactions and balances in other currencies are converted into U.S. dollars in accordance with ASC Section 830-20-35 and are included in determining net income or loss. The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company's operating subsidiaries is the Chinese Renminbi ("RMB"). In accordance with ASC 830-20-35, the consolidated financial statements were translated into United States dollars using balance sheet date rates of exchange for assets and liabilities, and average rates of exchange for the period for the income statements and cash flows. Equity accounts were stated at their historical rate. Net gains and losses resulting from foreign exchange transactions are included in the consolidated statements of operations. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in other comprehensive income or loss. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People's Bank of China (the "PBOC") or other institutions authorized to buy and sell foreign exchange. The exchange rate adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand. Translation of amounts from RMB into United States dollars ("$") was made at the following exchange rates for the respective periods: As of October 31, 2021 RMB 6.41 to $1.00 As of April 30, 2021 RMB 6.47 to $1.00 Six months ended October 31, 2021 RMB 6.45 to $1.00 Six months ended October 31, 2020 RMB 6.94 to $1.00 COMPREHENSIVE LOSS Comprehensive loss is comprised of net loss 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 loss for the three and six months ended October 31, 2021 and 2020 included net loss and unrealized gains from foreign currency translation adjustments. RESEARCH AND DEVELOPMENT Research and development costs are expensed as incurred and are included in general and administrative expenses in the accompanying statements of operations. Research and development costs are incurred on a project specific basis. Research and development costs were $792,367 and $71,129 for the three months ended October 31, 2021 and 2020, and $1,148,080 and $432,567 for the six months ended October 31, 2021 and 2020, respectively. - 8 – SHIPPING COSTS Shipping costs are included in selling expenses and totaled $29,927 and $19,462 for the three months ended October 31, 2021 and 2020, and $50,088 and $35,978 for the six months ended October 31, 2021 and 2020, respectively. ADVERTISING Advertising is expensed as incurred and is included in selling expenses and the Company has no expense on advertising for the three and six months ended October 31, 2021, but the Company recorded $40,443 and $54,876 for the three and six months ended October 31, 2020, respectively. SEGMENT REPORTING The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The Company's chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU provides an exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. This update also (1) requires an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (2) requires an entity to evaluate when a step-up in the tax basis of goodwill should be considered part of the business combination in which goodwill was originally recognized for accounting purposes and when it should be considered a separate transaction, and (3) requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, excluding entities eligible to be smaller reporting company. For all other entities, the requirements are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-13 has been amended by ASU 2019-04, ASU 2019-05, and ASU 2019-11. For entities that have not yet adopted ASU No. 2016-13, the effective dates and transition methodology for ASU 2019-04, ASU 2019-05, and ASU 2019-11 are the same as the effective dates and transition methodology in ASU 2016-13. The Company did not adopt this standard yet due to the status of smaller reporting company. We plan to adopt this standard for the year beginning May 1, 2023. We do not expect the adoption of this standard will have material impact on our consolidated financial statements. A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, we have not determined whether implementation of such proposed standards would be material to our consolidated financial statements. - 9 - GOING CONCERN Our unaudited condensed consolidated financial statements have been prepared assuming we will continue as a going concern. The Company has incurred recurring losses with a net loss of approximately $1,893,000 and $2,643,000 for the three and six months ended October 31, 2021 and has a significant accumulated deficit of $45.0 million as of October 31, 2021. The Company's cash balance and revenues generated are not currently sufficient and cannot be projected to cover operating expenses for the next twelve months from the date of this report. These factors raise doubt as to the ability of the Company to continue as a going concern. Management's plans include attempting to improve its business profitability, its ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working capital funds through debt and equity financings, and restructure on-going operations to eliminate inefficiencies to raise cash balance in order to meet its anticipated cash requirements for the next twelve months from the date of this report. Management intends to make every effort to identify and develop sources of funds. The outcome of these matters cannot be predicted at this time. There can be no assurance that any additional financings will be available to the Company on satisfactory terms and conditions, if at all. The ability of the Company to continue as a going concern is dependent upon its ability to achieve profitable operations and raise additional capital. The accompanying unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amount or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern. |
NOTE 3 - NONCONTROLLING INTERES
NOTE 3 - NONCONTROLLING INTEREST | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 3 - NONCONTROLLING INTEREST | NOTE 3 - NONCONTROLLING INTEREST |
NOTE 4 - INVENTORIES
NOTE 4 - INVENTORIES | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 4 - INVENTORIES | NOTE 4 - INVENTORIES As of October 31, 2021 and April 30, 2021, inventories consisted of the following: October 31, 2021 (unaudited) April 30, 2021 Raw materials $ 3,462,239 $ 5,850,859 Work in process 2,664,935 3,220,583 Finished goods 3,106,634 3,859,019 Inventories, gross 9,233,808 12,930,461 Less: reserve for obsolete inventory - - Inventories, net $ 9,233,808 $ 12,930,461 In the three months ended October 31, 2021 and 2020, the Company wrote down the obsolete inventories of $465,801 and $nil, respectively. In the six months ended October 31, 2021 and 2020, the Company wrote down the obsolete inventories of $653,505 and $nil, respectively. |
NOTE 5 - PREPAID EXPENSES AND O
NOTE 5 - PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 5 - PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 5 - PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets as of October 31, 2021 and April 30, 2021 totaled $4,199,309 and $661,882, respectively. As of October 31, 2021, prepaid expenses and other current assets includes $3,660,227 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us, and $539,082 for business related employees' advances. As of April 30, 2021, prepaid expenses and other current assets includes $435,006 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us and $226,876 for business related employees' advances. |
NOTE 6 - PROPERTY AND EQUIPMENT
NOTE 6 - PROPERTY AND EQUIPMENT | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 6 - PROPERTY AND EQUIPMENT | NOTE 6 - PROPERTY AND EQUIPMENT As of October 31, 2021 and April 30, 2021, property and equipment consisted of the following: October 31, 2021 (unaudited) April 30, 2021 Office equipment $ 430,778 $ 429,478 Auto and trucks 600,164 646,606 Manufacturing equipment 6,860,075 7,646,765 Buildings 9,681,574 10,476,629 Construction in process 17,690 17,522 Property and equipment, gross 17,590,281 19,217,000 Less: accumulated depreciation (9,204,718) (9,999,885) Property and equipment, net $ 8,385,563 $ 9,217,115 For the three months ended October 31, 2021 and 2020, depreciation expense totaled $336,757 and $322,121, of which $285,439 and $298,290 were included in cost of revenues, respectively, and remainder was included in operating expenses. For the six months ended October 31, 2021 and 2020, depreciation expense totaled $705,193 and $626,560, of which $599,172 and $581,013 were included in cost of revenues, respectively, and remainder was included in operating expenses. Depreciation is not taken during the period of construction or equipment installation. Upon completion of the installation of manufacturing equipment or any construction in progress, construction in progress balances will be classified to their respective property and equipment category. |
NOTE 7 - LAND USE RIGHTS
NOTE 7 - LAND USE RIGHTS | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 7 - LAND USE RIGHTS | NOTE 7 – LAND USE RIGHTS The Company acquired the land use rights for Qufu Shengren factory in cash. Qufu Shengren owns and operates a stevia facility with an annual production capable of 500 metric tons per year on 44,486 square meters (478,843 square feet) of land located in Qufu city, Shandong. The Company occupies this land pursuant to an asset acquisition agreement entered into with Shangdong Shengwang Pharmaceutical Co., Ltd. ("Pharmaceutical Corporation") to acquire the land use rights for this facility. The land use right was transferred from Pharmaceutical Corporation to Qufu Shengren, and the Company received Real Property Certificate issued by local government on May 18, 2021. The land use right expires in March 2054. The initial cost of this land use rights is RMB13,256,420 (approximately $2,052,000). We use the straight-line method for amortization over a period 33 years. During the three and six months ended October 31, 2021, amortization expense amounted to $15,805 and $31,630. Land use right with net book value of $2,037,635 as of October 31, 2021. |
NOTE 8 - RELATED PARTY TRANSACT
NOTE 8 - RELATED PARTY TRANSACTIONS | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 8 - RELATED PARTY TRANSACTIONS | NOTE 8 - RELATED PARTY TRANSACTIONS Related parties of the Company consist of the following: - Mr. Jianjun Yan, Chief Executive Officer and Director of the Company; - Shandong Shengwang Pharmaceutical Co., Ltd. ("Pharmaceutical Corporation"), a Chinese limited liability company which Mr. Jianjun Yan is a legal representative and general manager of Pharmaceutical Corporation; - Mr. Laiwang Zhang, former Chairman of the Board, resigned on September 7, 2021; - Qufu Shengwang Import and Export Co., Ltd. ("Qufu Shengwang Import and Export"), a Chinese limited liability company, controlled by Mr. Laiwang Zhang. Due to recent changes in management personal, Qufu Shengwang Import and Export is no longer considered a related party, and transactions with Qufu Shengwang Import and Export has been reclassified to third party transactions in fiscal 2022; and - Mr. Weidong Chai, a management member of Qufu Shengren Pharmaceutical Co., Ltd. Accounts receivable - related party and revenue - related party As of October 31, 2021 and April 30, 2021, $nil and $5,999,791 in accounts receivable - related party, respectively, were related to sales of products to Qufu Shengwang Import and Export. For the three and six months ended October 31, 2021 we did not have revenue and cost of revenue from related party, but we recorded revenue - related party and cost of revenue – related party of $502,695 and $546,254, and $2,254,518 and $2,155,762, the three and six months ended October 31, 2020, respectively, from Qufu Shengwang Import and Export. - 11 - Due to related parties The Company mainly finance its operations through proceeds borrowed from related parties. As of October 31, 2021 and April 30, 2021, due to related parties consisted the following: October 31, 2021 April 30, 2021 Pharmaceutical Corporation $ 4,763,844 $ 3,484,266 Qufu Shengwang Import and Export - 6,140,404 Jianjun Yan 4,138,350 - Weidong Chai 232,143 218,966 Total $ 9,134,337 $ 9,843,636 From time to time, we receive advances from related parties and advance funds to related parties for working capital purposes. In the six months ended October 31, 2021, the Company borrowed multiple one-year loans in aggregated amount of RMB9,820,000 (approximately $1,523,000) from Jianjun Yan, bearing an annual interest rate of 12%. The Company also borrowed two loans in amount of RMB10,717,600 (approximately $1,673,000) and RMB5,217,000 (approximately $814,000), respectively, bearing an annual interest rate of 10% and 4% from Jianjun Yan in the past years. On October 7, 2021 and April 1, 2021, these loans were extended for another one year, respectively, under the same terms and conditions and reclassified unpaid interest payable to the principal of these loans. On September 23, 2019, the Company borrowed a one-year loan of RMB1,221,000 (approximately $189,000) from Weidong Cai, bearing an annual interest rate of 10%. On September 23, 2021 and 2020, the parties extended the loan for another year, under the same terms and conditions, reclassified unpaid interest payable to the principal of this loan, resulting in an increase of principal from RMB1,221,000 (approximately $189,000) to RMB1,477,410 (approximately $231,000). For the three and six months ended October 31, 2021 and 2020, interest expense – related parties related to short-term loans amounted to $95,842 and $4,867, and $154,591 and $21,674, respectively, |
NOTE 9 - OPERATING LEASE
NOTE 9 - OPERATING LEASE | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 9 - OPERATING LEASE | NOTE 9 - OPERATING LEASE On July 10, 2019, we entered into the Metformin Production Line Operation Management Agreement (the “Agreement”) with Ru Yuan, an unaffiliated individual, to contract out the Metformin production line which was built by the Company. Under the terms of this agreement, Ru Yuan's (“lessee”) lease includes the fixed assets of Metformin production line including buildings, manufacturing equipment and construction in process. The lessee will pay to Qufu Shengren an annual contract fee of RMB3,000,000 (approximately $436,000) in July every year. On August 1, 2019, the Company (“lessor”) signed an addendum for Agreement with lessee to clarify the term of lease for five years, with conditional renewal options and the Company has the right to monitor operating and provide maintenance service for the underlying assets of the Metformin production line. The Company also has the right to terminate the Agreement if lessee fails to make payment timely. Under our analysis with the new lease standard, this lease agreement is classified as a cancellable operating lease. The Company received two year release payment in a total amount of RMB6,000,000 and the lease deposit of RMB1,000,000 as guarantee. The Company recorded revenues of $106,647 and $100,809 from this operating lease in the three months ended October 31, 2021 and 2020, and the Company recorded revenues of $213,429 and $198,201 from this operating lease in the six months ended October 31, 2021 and 2020. |
NOTE 10 - ACCOUNTS PAYABLE AND
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses included the following as of October 31, 2021 and April 30, 2021: Account October 31, 2021 (unaudited) April 30, 2021 Accounts payable $ 6,003,861 $ 8,155,842 Advanced from customers 709,998 143,695 Advanced from third parties* 6,726,399 - Accrued salary payable 290,820 155,071 Tax payable 343,227 330,738 Other payable** 1,619,184 2,356,062 Total accounts payable and accrued expenses $ 15,693,489 $ 11,141,408 * Advanced from third parties for working capital, bearing interest free and due on demands. - 12 - ** As of October 31, 2021, other payables consists of general liability, worker's compensation, and medical insurance payable of $409,230, consulting fee payable of $215,702, union and education fees payable of $138,434, interest payables for short-term loans of $50,740, safety production fund payable of $490,750, advances from the employees of $153,735, security deposit for sub-contractor of $156,111, and other miscellaneous payables of $4,482. As of April 30, 2021, other payables consists of general liability, worker's compensation, and medical insurance payable of $412,328, consulting and service fee payable of $209,871, union and education fees payable of $137,123, interest payables for short-term loans of $147,433, safety production fund payable of $262,449, advances from the employees of $159,909, deposit for operating lease of $154,631 and other miscellaneous payables of $872,318. |
NOTE 11 -LOAN PAYABLE
NOTE 11 -LOAN PAYABLE | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 11 -LOAN PAYABLE | NOTE 11 -LOAN PAYABLE Short-term loan payable Short-term loans are obtained from various individual lenders that are due within one year for working capital purpose. These loans are unsecured and can be renewed with 10 days or one month advance notice prior to maturity date. As of October 31, 2021 and April 30, 2021, short-term loans consisted of the following: October 31, 2021 (unaudited) April 30, 2021 Loan from Min Wu, an employee of Qufu Shengren, due on October 5, 2022, with an annual interest rate of 10%, renewed on October 6, 2021. $ 34,344 $ 34,019 Loans from Jianjun Yan, due on October 6, 2021, with an annual interest rate of 10%, renewed on October 7, 2020, also see Note 8. - 1,506,610 Loan from Jianjun Yan, due on March 31, 2022, with annual interest rate of 4%, renewed on April 1, 2021, also see Note 8. - 806,711 Loan from Junzhen Zhang, non-related individual, due on October 5, 2022, with an annual interest rate of 10%, renewed on October 6, 2021 and accrued interest converted into debt principal. 30,223 27,215 Loan from Junzhen Zhang, non-related individual, due on November 30, 2021, with an annual interest rate of 10%, signed on December 1, 2020. 21,856 21,648 Multiple Loans from Jian Chen, non-related individual, due from May 20, 2022 to October 18, 2022, with an annual interest rate of 12%, signed from May 21, 2021 to October 19, 2021. 1,014,721 - Loan from Qing Kong, non-related individual, due on March 6, 2022, with an annual interest rate of 10%, renewed on March 7, 2021. 99,599 98,655 Loan from Qing Kong, non-related individual, due on January 8, 2022, with an annual interest rate of 10%, renewed on January 9, 2021. 41,557 41,163 Loan from Guihai Chen, non-related individual, due on March 9, 2022, with an annual interest rate of 10%, renewed on March 10, 2021. 24,900 24,664 Loan from Guihai Chen, non-related individual, due on September 20, 2022, with an annual interest rate of 10%, renewed on September 21, 2021, and accrued interest converted into debt principal. 41,557 37,421 Loan from Weifeng Kong, non-related individual, due on November 28, 2021, with an annual interest rate of 10%, renewed on November 29, 2020. 31,222 30,926 Loan from Huagui Yong, non-related individual, due on April 8, 2022, with an annual interest rate of 6.3%, renewed on April 9, 2021. 78,055 77,316 Loan from Guohui Zhang, non-related individual, due on January 16, 2022, with an annual interest rate of 4% signed on January 17, 2021. 251,339 248,956 Total short-term loan payable $ 1,669,373 $ 2,955,304 For the three and six months ended October 31, 2021 and 2020, interest expense related to short-term loans amounted to $24,582 and $47,413, and $38,156 and $109,944, respectively, which were included in interest expense in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss. |
NOTE 12 - SEGMENT INFORMATION
NOTE 12 - SEGMENT INFORMATION | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 12 - SEGMENT INFORMATION | NOTE 12 - SEGMENT INFORMATION The following information is presented in accordance with ASC Topic 280, "Segment Reporting", for the three and six months ended October 31, 2021 and 2020; we accounted for two reportable business segments - (1) natural sweetener (stevioside), and (2) corporate and other pharmaceutical. Our reportable segments are strategic business units that offer different products and are managed separately based on the fundamental differences in their operations. Condensed financial information with respect to these reportable business segments for the three and six months ended October 31, 2021 and 2020 is as follows: Three Months Ended October 31, Six Months Ended October 31, 2021 2020 2021 2020 Revenues: Stevioside - third party $ 10,001,477 $ 3,830,340 $ 16,163,155 $ 9,020,803 Stevioside - related party - 502,695 - 2,254,518 Total Stevioside 10,001,477 4,333,035 16,163,155 11,275,321 Corporate and other – third party 106,647 100,809 213,429 198,201 Corporate and other – related party - - - - Total Corporate and other 106,647 100,809 213,429 198,201 Total segment and consolidated revenues $ 10,108,124 $ 4,433,844 $ 16,376,584 $ 11,473,522 Interest expense: Stevioside $ (119,934) $ (52,018) $ (190,605) $ (131,125) Corporate and other - - - - Total segment and consolidated interest expense $ (119,934) $ (52,018) $ (190,605) $ (131,125) Depreciation and amortization: Stevioside $ 312,038 $ 266,078 $ 623,881 $ 519,854 Corporate and other 56,349 56,042 112,942 106,706 Total segment and consolidated depreciation and amortization $ 368,387 $ 322,120 $ 736,823 $ 626,560 Income (loss) from operations before income taxes: Stevioside $ (1,941,725) $ (705,674) $ (2,753,962) $ (1,769,927) Corporate and other 48,952 47,223 111,072 55,649 Total loss from continuing operations before income taxes $ (1,892,773) $ (658,451) $ (2,642,890) $ (1,714,278) October 31, 2021 April 30, 2021 Segment property and equipment: Stevioside $ 5,663,314 $ 7,354,695 Corporate and other 2,722,249 1,862,420 Total property and equipment $ 8,385,563 $ 9,217,115 |
NOTE 13 - CONCENTRATIONS AND CR
NOTE 13 - CONCENTRATIONS AND CREDIT RISK | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 13 - CONCENTRATIONS AND CREDIT RISK | NOTE 13 - CONCENTRATIONS AND CREDIT RISK (i) Customer Concentrations For the three and six months ended October 31, 2021 and 2020, customers accounting for 10% or more of the Company's revenue were as follows: - 14 - For the three months ended October 31, For the six months ended October 31, Customer 2021 2020 2021 2020 A (1) 39.7% 11.3% 39.0% 19.6% B 18.5% - 11.5% - C - - - 25.7% D - 10.9% - 10.4% (1) (ii) Vendor Concentrations For the three and six months ended October 31, 2021 and 2020, suppliers accounting for 10% or more of the Company's purchase were as follows: For the three months ended October 31, For the six months ended October 31, Supplier 2021 2020 2021 2020 A 40.5% - 53.6% - B - - 13.6% - C - 33.5% - 24.6% D - 20.3% - 24.3% F - 18.2% - 10.6% (iii) Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and trade accounts receivable. We place our cash with high credit quality financial institutions in the United States and the PRC. As of October 31, 2021 and April 30, 2021, we had $517,262 and $1,403,969 of cash balance held in PRC banks, respectively. PRC banks protect consumers against loss if their bank or thrift institution fails, and each of our PRC bank account is insured up to RMB500,000 (approximately $71,000). As a result, cash held in PRC financial institutions of $394,268 and $1,224,263 are not insured as of October 31, 2021 and April 30, 2021. We have not experienced any losses in such accounts through October 31, 2021. Our cash position by geographic area was as follows: Country: October 31, 2021 April 30, 2021 United States $ 181,373 26.0% $ 161,860 10.3% China 517,262 74.0% 1,403,969 89.7% Total cash and cash equivalents $ 698,635 100.00% $ 1,565,829 100.00% Almost all of our sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, we believe that the concentration of credit risk with respect to trade accounts receivable is limited due to generally short payment terms. We also perform ongoing credit evaluations of our customers to help further reduce potential credit risk. |
NOTE 14 - SUBSEQUENT EVENTS
NOTE 14 - SUBSEQUENT EVENTS | 6 Months Ended |
Oct. 31, 2021 | |
Notes | |
NOTE 14 - SUBSEQUENT EVENTS | NOTE 14 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. Based on our evaluation, no other event has occurred requiring adjustment or disclosure in the notes to the consolidated financial statements. |
NOTE 2 - SUMMARY OF SIGNIFICA_2
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial reporting. The accompanying unaudited condensed consolidated financial statements for the interim periods presented are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the periods presented. Certain financial statement amounts relating to prior periods have been reclassified to conform to the current period presentation. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements should be read in conjunction with the financial statements and footnotes for the year ended April 30, 2021 included in our Form 10-K as filed with the SEC. The results of operations and cash flows for the six months ended October 31, 2021 are not necessarily indicative of the results of operations or cash flows which may be reported for future periods or the full fiscal year. The condensed consolidated balance sheet as of April 30, 2021 contained herein has been derived from the audited consolidated financial statements as of April 30, 2021, but do not include all disclosures required by the U.S. GAAP. Our unaudited condensed consolidated financial statements include the accounts of Sunwin and all our wholly-owned subsidiaries in operations. All intercompany accounts and transactions have been eliminated in consolidation. Our subsidiaries for operations include the following: - Qufu Natural Green; - Qufu Shengren; - Sunwin USA; and - Qufu Shengren Import and Export |
NOTE 2 - SUMMARY OF SIGNIFICA_3
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: USE OF ESTIMATES (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
USE OF ESTIMATES | USE OF ESTIMATES The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the allowance for doubtful accounts, the allowance for obsolete inventory, the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets, and the value of stock-based compensation. Actual results could differ from those estimates. |
NOTE 2 - SUMMARY OF SIGNIFICA_4
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: CASH AND CASH EQUIVALENTS (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS We consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash and equivalents. As of October 31, 2021, we held $517,262 of our cash and cash equivalents with commercial banking institutions in the PRC, and $181,373 with banks in the United States. As of April 30, 2021, we held $1,403,969 of our cash and cash equivalents with commercial banking institution in PRC, and $161,860 in the United States. |
NOTE 2 - SUMMARY OF SIGNIFICA_5
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ACCOUNTS RECEIVABLE (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable and other receivable are reported at net realizable value. We have established an allowance for doubtful accounts based upon factors pertaining to the credit risk of specific customers, historical trends, and other information. Delinquent accounts are written off when it is determined that the amounts are uncollectible after exhaustive efforts on collection. We had none of allowance for doubtful accounts as of October 31, 2021 and April 30, 2021. |
NOTE 2 - SUMMARY OF SIGNIFICA_6
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: INVENTORIES (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
INVENTORIES | INVENTORIES Inventories, consisting of raw materials, work in process, and finished goods related to our products, are stated at the lower of cost or estimated net realizable value that can be estimated utilizing the weighted moving average method. A reserve is established when management determines that certain slow-moving inventories may be sold at below book value. These reserves are recorded based on estimates. As of October 31, 2021, the Company did not record a reserve for slow-moving inventories. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record a write down of inventories for the difference between the lower of cost or estimated net realizable value. As of October 31, 2021 and April 30, 2021, the Company wrote down inventories of $653,505 and $1,276,893, respectively. |
NOTE 2 - SUMMARY OF SIGNIFICA_7
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: PROPERTY AND EQUIPMENT (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment are stated at cost. Depreciation and amortization are provided using the straight line method over the estimated economic lives of the assets, which range from two to thirty years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. In accordance with paragraph 360-10-35-17 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC"), we examine 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 residual value rate and useful life of property and equipment are summarized as follows: Property and Equipment Residual value rate Useful life Office equipment 10% or 5% or 0% 3-15 years Auto and trucks 10% or 5% or 0% 2-10 Years Manufacturing equipment 10% or 5% or 0% 2-15 Years Buildings 10% or 5% or 0% 5-30 Years Included in property and equipment is construction-in-progress which consisted of factory improvements and machinery pending installation and included the costs of construction, machinery and equipment, and or any interest charges arising from borrowings used to finance these assets during the period of construction or installation of the assets if applicable. No provision for depreciation is made on construction-in-progress until such time as the relevant assets are completed and ready for their intended use. |
NOTE 2 - SUMMARY OF SIGNIFICA_8
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: LONG-LIVED ASSETS (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
LONG-LIVED ASSETS | LONG-LIVED ASSETS In accordance with ASC 360, we review and evaluate our long-lived assets, including property and equipment and land use rights, for impairment or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets, including goodwill, if any. An impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of future cash flows from other asset groups. Our estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates. Based on our evaluation, we have determined certain long-lived assets that are no longer useful for our operations, and we recorded a loss on disposition of property and equipment of $386,687 and $nil on October 31, 2021 and April 30, 2021, respectively. |
NOTE 2 - SUMMARY OF SIGNIFICA_9
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: LAND USE RIGHTS (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
LAND USE RIGHTS | LAND USE RIGHTS According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. Land use rights are being amortized using the straight-line method over the periods the rights are granted. |
NOTE 2 - SUMMARY OF SIGNIFIC_10
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: FAIR VALUE OF FINANCIAL INSTRUMENTS (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS We adopted ASC Section 820-10-35-37 to measure the fair value of our financial instruments. ASC Section 820-10-35-37 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. The adoption of ASC Section 820-10-35-37 did not have an impact on our financial position or operating results, but did expand certain disclosures. - 6 - ASC Section 820-10-35-37 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC Section 820-10-35-37 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity's own assumptions. The carrying amounts of our financial assets and liabilities, such as cash, accounts receivable, notes receivable, prepayments and other current assets, accounts payable, taxes payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. |
NOTE 2 - SUMMARY OF SIGNIFIC_11
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: TAXES PAYABLE (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
TAXES PAYABLE | TAXES PAYABLE We are required to charge for and to collect value added taxes (VAT) on our sales on behalf of the PRC tax authority. We record VAT that we billed our customers as VAT payable. In addition, we are required to pay value added taxes on our primary purchases. We record VAT that is charged by our vendors as VAT receivable. We are required to file VAT return on a monthly basis with the PRC tax authority, in which we are entitled to claim the VAT that we are charged by vendors as VAT credit and these credits can be applied to our VAT payable that we billed our customers. Accordingly, these VAT payable and receivable are presented as net amounts for financial statement purposes. Taxes payable as of October 31, 2021 and April 30, 2021 amounted to $343,227 and $330,738, respectively, consisted primarily of VAT taxes. |
NOTE 2 - SUMMARY OF SIGNIFIC_12
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: REVENUE RECOGNITION (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
REVENUE RECOGNITION | REVENUE RECOGNITION Pursuant to the guidance of ASC 606, we record revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The adoption of this guidance did not have a material impact on our unaudited condensed consolidated financial statements. In accordance with ASC 606, we recognize revenues from the sale of stevia and other productions upon shipment and transfer of title based on the trade terms. All product sales with customer specific acceptance provisions are recognized upon customer acceptance and the delivery of the products. We report revenues net of applicable sales taxes and related surcharges. • Identify the contract with a customer; • Identify the performance obligations in the contract; • Determine the transaction price; • Allocate the transaction price to the performance obligations in the contract; and • Recognize revenue when (or as) the entity satisfies a performance obligation. The Company is also a lessor, which is an entity that is lease underlying asset to the third party, The Company’s lease revenue is recognized under ASC Topic 842, Leases, (“ASC 842”), which was adopted on May 1, 2019. In general, the Company commences rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. The Company’s lease has been accounted for as operating lease. Rental revenue is recognized on a straight-line basis over the terms of the lease of five years. Actual amounts billed in accordance with the lease during any given period may have been higher or lower than the amount of rental revenue recognized for the period. The difference by which straight-line rental revenue exceeded rents billed in accordance with lease agreements is recorded as “accounts receivable”. The difference by which rents billed in accordance with lease agreements exceeded straight-line rental revenue is recorded as “advances from customer”. The Company does not offset lease income and lease expense. |
NOTE 2 - SUMMARY OF SIGNIFIC_13
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RELATED PARTY TRANSACTIONS (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS A related party is generally defined as (i) any person and or their immediate family hold 10% or more of the company’s securities (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. The Company conducts business with its related parties in the ordinary course of business. Related parties may be individuals or corporate entities. - 6 - Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market 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. |
NOTE 2 - SUMMARY OF SIGNIFIC_14
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RECLASSIFICATION (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
RECLASSIFICATION | RECLASSIFICATION Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on the net earnings and financial position. |
NOTE 2 - SUMMARY OF SIGNIFIC_15
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: GRANT INCOME (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
GRANT INCOME | GRANT INCOME Grants received from PRC government agencies are recognized as deferred grant income and recognized in the unaudited condensed consolidated statements of operations and comprehensive loss as and when they are earned for the specific research and development projects for which these grants are designated for. |
NOTE 2 - SUMMARY OF SIGNIFIC_16
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: INCOME TAXES (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
INCOME TAXES | INCOME TAXES The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes We file federal and state income tax returns in the United States for our corporate operations pursuant to the U.S. Internal Revenue Code of 1986, as amended, and file separate foreign tax returns for our Chinese subsidiaries pursuant to the China's Unified Corporate Income Tax Law. We apply 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 consolidated 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 October 31, 2021, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future. |
NOTE 2 - SUMMARY OF SIGNIFIC_17
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BASIC AND DILUTED EARNINGS PER SHARE (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
BASIC AND DILUTED EARNINGS PER SHARE | BASIC AND DILUTED EARNINGS PER SHARE Pursuant to ASC Section 260-10-45, basic loss per common share is computed by dividing loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of ours, subject to anti-dilution limitations. The following table presents a reconciliation of basic and diluted net loss per common share: - 7 - Three Months Ended October 31, Six Months Ended October 31, Numerator: 2021 2020 2021 2020 Net Loss attributable to Sunwin Stevia International, Inc. $ (1,168,862) $ (403,380) $ (1,629,055) $ (1,065,979) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 199,632,803 199,632,803 Stock awards, options, and warrants - - - - Denominator for diluted earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 199,632,803 199,632,803 Basic and diluted loss per common share : Net loss per common share - basic and diluted $ (0.01) $ (0.00) $ (0.01) $ (0.01) |
NOTE 2 - SUMMARY OF SIGNIFIC_18
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: FOREIGN CURRENCY TRANSLATION (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
FOREIGN CURRENCY TRANSLATION | FOREIGN CURRENCY TRANSLATION Transactions and balances originally denominated in U.S. dollars are presented at their original amounts. Transactions and balances in other currencies are converted into U.S. dollars in accordance with ASC Section 830-20-35 and are included in determining net income or loss. The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company's operating subsidiaries is the Chinese Renminbi ("RMB"). In accordance with ASC 830-20-35, the consolidated financial statements were translated into United States dollars using balance sheet date rates of exchange for assets and liabilities, and average rates of exchange for the period for the income statements and cash flows. Equity accounts were stated at their historical rate. Net gains and losses resulting from foreign exchange transactions are included in the consolidated statements of operations. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in other comprehensive income or loss. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the People's Bank of China (the "PBOC") or other institutions authorized to buy and sell foreign exchange. The exchange rate adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC, which are determined largely by supply and demand. Translation of amounts from RMB into United States dollars ("$") was made at the following exchange rates for the respective periods: As of October 31, 2021 RMB 6.41 to $1.00 As of April 30, 2021 RMB 6.47 to $1.00 Six months ended October 31, 2021 RMB 6.45 to $1.00 Six months ended October 31, 2020 RMB 6.94 to $1.00 |
NOTE 2 - SUMMARY OF SIGNIFIC_19
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: COMPREHENSIVE LOSS (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
COMPREHENSIVE LOSS | COMPREHENSIVE LOSS Comprehensive loss is comprised of net loss 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 loss for the three and six months ended October 31, 2021 and 2020 included net loss and unrealized gains from foreign currency translation adjustments. |
NOTE 2 - SUMMARY OF SIGNIFIC_20
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RESEARCH AND DEVELOPMENT (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT Research and development costs are expensed as incurred and are included in general and administrative expenses in the accompanying statements of operations. Research and development costs are incurred on a project specific basis. Research and development costs were $792,367 and $71,129 for the three months ended October 31, 2021 and 2020, and $1,148,080 and $432,567 for the six months ended October 31, 2021 and 2020, respectively. |
NOTE 2 - SUMMARY OF SIGNIFIC_21
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: SHIPPING COSTS (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
SHIPPING COSTS | SHIPPING COSTS Shipping costs are included in selling expenses and totaled $29,927 and $19,462 for the three months ended October 31, 2021 and 2020, and $50,088 and $35,978 for the six months ended October 31, 2021 and 2020, respectively. |
NOTE 2 - SUMMARY OF SIGNIFIC_22
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ADVERTISING (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
ADVERTISING | ADVERTISING Advertising is expensed as incurred and is included in selling expenses and the Company has no expense on advertising for the three and six months ended October 31, 2021, but the Company recorded $40,443 and $54,876 for the three and six months ended October 31, 2020, respectively. |
NOTE 2 - SUMMARY OF SIGNIFIC_23
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: SEGMENT REPORTING (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
SEGMENT REPORTING | SEGMENT REPORTING The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The Company's chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. |
NOTE 2 - SUMMARY OF SIGNIFIC_24
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Oct. 31, 2021 | |
Policies | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU provides an exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. This update also (1) requires an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (2) requires an entity to evaluate when a step-up in the tax basis of goodwill should be considered part of the business combination in which goodwill was originally recognized for accounting purposes and when it should be considered a separate transaction, and (3) requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, excluding entities eligible to be smaller reporting company. For all other entities, the requirements are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-13 has been amended by ASU 2019-04, ASU 2019-05, and ASU 2019-11. For entities that have not yet adopted ASU No. 2016-13, the effective dates and transition methodology for ASU 2019-04, ASU 2019-05, and ASU 2019-11 are the same as the effective dates and transition methodology in ASU 2016-13. The Company did not adopt this standard yet due to the status of smaller reporting company. We plan to adopt this standard for the year beginning May 1, 2023. We do not expect the adoption of this standard will have material impact on our consolidated financial statements. A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, we have not determined whether implementation of such proposed standards would be material to our consolidated financial statements. |
NOTE 2 - SUMMARY OF SIGNIFIC_25
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BASIC AND DILUTED EARNINGS PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 6 Months Ended |
Oct. 31, 2021 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended October 31, Six Months Ended October 31, Numerator: 2021 2020 2021 2020 Net Loss attributable to Sunwin Stevia International, Inc. $ (1,168,862) $ (403,380) $ (1,629,055) $ (1,065,979) Denominator: Denominator for basic earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 199,632,803 199,632,803 Stock awards, options, and warrants - - - - Denominator for diluted earnings per share - weighted average number of common shares outstanding 199,632,803 199,632,803 199,632,803 199,632,803 Basic and diluted loss per common share : Net loss per common share - basic and diluted $ (0.01) $ (0.00) $ (0.01) $ (0.01) |
NOTE 4 - INVENTORIES_ Schedule
NOTE 4 - INVENTORIES: Schedule of Inventory, Current (Tables) | 6 Months Ended |
Oct. 31, 2021 | |
Tables/Schedules | |
Schedule of Inventory, Current | October 31, 2021 (unaudited) April 30, 2021 Raw materials $ 3,462,239 $ 5,850,859 Work in process 2,664,935 3,220,583 Finished goods 3,106,634 3,859,019 Inventories, gross 9,233,808 12,930,461 Less: reserve for obsolete inventory - - Inventories, net $ 9,233,808 $ 12,930,461 |
NOTE 6 - PROPERTY AND EQUIPME_2
NOTE 6 - PROPERTY AND EQUIPMENT: Schedule of property and equipment (Tables) | 6 Months Ended |
Oct. 31, 2021 | |
Tables/Schedules | |
Schedule of property and equipment | October 31, 2021 (unaudited) April 30, 2021 Office equipment $ 430,778 $ 429,478 Auto and trucks 600,164 646,606 Manufacturing equipment 6,860,075 7,646,765 Buildings 9,681,574 10,476,629 Construction in process 17,690 17,522 Property and equipment, gross 17,590,281 19,217,000 Less: accumulated depreciation (9,204,718) (9,999,885) Property and equipment, net $ 8,385,563 $ 9,217,115 |
NOTE 8 - RELATED PARTY TRANSA_2
NOTE 8 - RELATED PARTY TRANSACTIONS: Schedule of Related Party Transactions (Tables) | 6 Months Ended |
Oct. 31, 2021 | |
Tables/Schedules | |
Schedule of Related Party Transactions | October 31, 2021 April 30, 2021 Pharmaceutical Corporation $ 4,763,844 $ 3,484,266 Qufu Shengwang Import and Export - 6,140,404 Jianjun Yan 4,138,350 - Weidong Chai 232,143 218,966 Total $ 9,134,337 $ 9,843,636 |
NOTE 10 - ACCOUNTS PAYABLE AN_2
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES: Schedule of Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Oct. 31, 2021 | |
Tables/Schedules | |
Schedule of Accounts Payable and Accrued Liabilities | Account October 31, 2021 (unaudited) April 30, 2021 Accounts payable $ 6,003,861 $ 8,155,842 Advanced from customers 709,998 143,695 Advanced from third parties* 6,726,399 - Accrued salary payable 290,820 155,071 Tax payable 343,227 330,738 Other payable** 1,619,184 2,356,062 Total accounts payable and accrued expenses $ 15,693,489 $ 11,141,408 |
NOTE 11 -LOAN PAYABLE_ Schedule
NOTE 11 -LOAN PAYABLE: Schedule of Short-term loan payable (Tables) | 6 Months Ended |
Oct. 31, 2021 | |
Tables/Schedules | |
Schedule of Short-term loan payable | October 31, 2021 (unaudited) April 30, 2021 Loan from Min Wu, an employee of Qufu Shengren, due on October 5, 2022, with an annual interest rate of 10%, renewed on October 6, 2021. $ 34,344 $ 34,019 Loans from Jianjun Yan, due on October 6, 2021, with an annual interest rate of 10%, renewed on October 7, 2020, also see Note 8. - 1,506,610 Loan from Jianjun Yan, due on March 31, 2022, with annual interest rate of 4%, renewed on April 1, 2021, also see Note 8. - 806,711 Loan from Junzhen Zhang, non-related individual, due on October 5, 2022, with an annual interest rate of 10%, renewed on October 6, 2021 and accrued interest converted into debt principal. 30,223 27,215 Loan from Junzhen Zhang, non-related individual, due on November 30, 2021, with an annual interest rate of 10%, signed on December 1, 2020. 21,856 21,648 Multiple Loans from Jian Chen, non-related individual, due from May 20, 2022 to October 18, 2022, with an annual interest rate of 12%, signed from May 21, 2021 to October 19, 2021. 1,014,721 - Loan from Qing Kong, non-related individual, due on March 6, 2022, with an annual interest rate of 10%, renewed on March 7, 2021. 99,599 98,655 Loan from Qing Kong, non-related individual, due on January 8, 2022, with an annual interest rate of 10%, renewed on January 9, 2021. 41,557 41,163 Loan from Guihai Chen, non-related individual, due on March 9, 2022, with an annual interest rate of 10%, renewed on March 10, 2021. 24,900 24,664 Loan from Guihai Chen, non-related individual, due on September 20, 2022, with an annual interest rate of 10%, renewed on September 21, 2021, and accrued interest converted into debt principal. 41,557 37,421 Loan from Weifeng Kong, non-related individual, due on November 28, 2021, with an annual interest rate of 10%, renewed on November 29, 2020. 31,222 30,926 Loan from Huagui Yong, non-related individual, due on April 8, 2022, with an annual interest rate of 6.3%, renewed on April 9, 2021. 78,055 77,316 Loan from Guohui Zhang, non-related individual, due on January 16, 2022, with an annual interest rate of 4% signed on January 17, 2021. 251,339 248,956 Total short-term loan payable $ 1,669,373 $ 2,955,304 |
NOTE 12 - SEGMENT INFORMATION_
NOTE 12 - SEGMENT INFORMATION: Schedule of Segment Income (Tables) | 6 Months Ended |
Oct. 31, 2021 | |
Tables/Schedules | |
Schedule of Segment Income | Three Months Ended October 31, Six Months Ended October 31, 2021 2020 2021 2020 Revenues: Stevioside - third party $ 10,001,477 $ 3,830,340 $ 16,163,155 $ 9,020,803 Stevioside - related party - 502,695 - 2,254,518 Total Stevioside 10,001,477 4,333,035 16,163,155 11,275,321 Corporate and other – third party 106,647 100,809 213,429 198,201 Corporate and other – related party - - - - Total Corporate and other 106,647 100,809 213,429 198,201 Total segment and consolidated revenues $ 10,108,124 $ 4,433,844 $ 16,376,584 $ 11,473,522 Interest expense: Stevioside $ (119,934) $ (52,018) $ (190,605) $ (131,125) Corporate and other - - - - Total segment and consolidated interest expense $ (119,934) $ (52,018) $ (190,605) $ (131,125) Depreciation and amortization: Stevioside $ 312,038 $ 266,078 $ 623,881 $ 519,854 Corporate and other 56,349 56,042 112,942 106,706 Total segment and consolidated depreciation and amortization $ 368,387 $ 322,120 $ 736,823 $ 626,560 Income (loss) from operations before income taxes: Stevioside $ (1,941,725) $ (705,674) $ (2,753,962) $ (1,769,927) Corporate and other 48,952 47,223 111,072 55,649 Total loss from continuing operations before income taxes $ (1,892,773) $ (658,451) $ (2,642,890) $ (1,714,278) |
NOTE 12 - SEGMENT INFORMATION_2
NOTE 12 - SEGMENT INFORMATION: Schedule of Segment Property and Equipment (Tables) | 6 Months Ended |
Oct. 31, 2021 | |
Tables/Schedules | |
Schedule of Segment Property and Equipment | October 31, 2021 April 30, 2021 Segment property and equipment: Stevioside $ 5,663,314 $ 7,354,695 Corporate and other 2,722,249 1,862,420 Total property and equipment $ 8,385,563 $ 9,217,115 |
NOTE 13 - CONCENTRATIONS AND _2
NOTE 13 - CONCENTRATIONS AND CREDIT RISK: Schedule of Revenue by Major Customers by Reporting Segments (Tables) | 6 Months Ended |
Oct. 31, 2021 | |
Tables/Schedules | |
Schedule of Revenue by Major Customers by Reporting Segments | For the three months ended October 31, For the six months ended October 31, Customer 2021 2020 2021 2020 A (1) 39.7% 11.3% 39.0% 19.6% B 18.5% - 11.5% - C - - - 25.7% D - 10.9% - 10.4% |
NOTE 13 - CONCENTRATIONS AND _3
NOTE 13 - CONCENTRATIONS AND CREDIT RISK: Schedule of Major Vendors (Tables) | 6 Months Ended |
Oct. 31, 2021 | |
Tables/Schedules | |
Schedule of Major Vendors | For the three months ended October 31, For the six months ended October 31, Supplier 2021 2020 2021 2020 A 40.5% - 53.6% - B - - 13.6% - C - 33.5% - 24.6% D - 20.3% - 24.3% F - 18.2% - 10.6% |
NOTE 13 - CONCENTRATIONS AND _4
NOTE 13 - CONCENTRATIONS AND CREDIT RISK: Schedule of cash position by geographic area (Tables) | 6 Months Ended |
Oct. 31, 2021 | |
Tables/Schedules | |
Schedule of cash position by geographic area | Country: October 31, 2021 April 30, 2021 United States $ 181,373 26.0% $ 161,860 10.3% China 517,262 74.0% 1,403,969 89.7% Total cash and cash equivalents $ 698,635 100.00% $ 1,565,829 100.00% |
NOTE 2 - SUMMARY OF SIGNIFIC_26
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: CASH AND CASH EQUIVALENTS (Details) - USD ($) | Oct. 31, 2021 | Apr. 30, 2021 |
Details | ||
Cash and cash equivalents held in PRC | $ 517,262 | $ 1,403,969 |
Cash and cash equivalents held in USA | $ 181,373 | $ 161,860 |
NOTE 2 - SUMMARY OF SIGNIFIC_27
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: INVENTORIES (Details) - USD ($) | Oct. 31, 2021 | Apr. 30, 2021 |
Details | ||
Reserve for obsolete or slow-moving inventories | $ 653,505 | $ 1,276,893 |
NOTE 2 - SUMMARY OF SIGNIFIC_28
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: LONG-LIVED ASSETS (Details) | Oct. 31, 2021USD ($) |
Details | |
Loss on disposition of property and equipment | $ 386,687 |
NOTE 2 - SUMMARY OF SIGNIFIC_29
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BASIC AND DILUTED EARNINGS PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Details | ||||
Net loss attributable to Sunwin Stevia International, Inc. | $ (1,168,862) | $ (403,380) | $ (1,629,055) | $ (1,065,979) |
Weighted Average Number of Shares Issued, Basic | 199,632,803 | 199,632,803 | 199,632,803 | 199,632,803 |
Weighted Average Number of Shares Outstanding, Diluted | 199,632,803 | 199,632,803 | 199,632,803 | 199,632,803 |
Net loss per common share attributable to Sunwin Stevia International, Inc. - basic and diluted | $ (0.01) | $ 0 | $ (0.01) | $ (0.01) |
NOTE 2 - SUMMARY OF SIGNIFIC_30
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: FOREIGN CURRENCY TRANSLATION (Details) | 6 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Apr. 30, 2021 | |
Details | |||
Foreign Currency Exchange Rate, Translation | 6.41 | 6.47 | |
Average exchange rates | 6.45 | 6.94 |
NOTE 2 - SUMMARY OF SIGNIFIC_31
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: RESEARCH AND DEVELOPMENT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Details | ||||
Research and development included in general and administrative expenses | $ 792,367 | $ 71,129 | $ 1,148,080 | $ 432,567 |
NOTE 2 - SUMMARY OF SIGNIFIC_32
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: SHIPPING COSTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Details | ||||
Shipping costs included in selling expenses | $ 29,927 | $ 19,462 | $ 50,088 | $ 35,978 |
NOTE 2 - SUMMARY OF SIGNIFIC_33
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ADVERTISING (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Oct. 31, 2021 | Oct. 31, 2021 | |
Details | ||
Shipping costs included in selling expenses | $ 40,443 | $ 54,876 |
NOTE 4 - INVENTORIES_ Schedul_2
NOTE 4 - INVENTORIES: Schedule of Inventory, Current (Details) - USD ($) | Oct. 31, 2021 | Apr. 30, 2021 |
Details | ||
Raw materials | $ 3,462,239 | $ 5,850,859 |
Work in process | 2,664,935 | 3,220,583 |
Finished goods | 3,106,634 | 3,859,019 |
Inventory, Gross | 9,233,808 | 12,930,461 |
Reserve for obsolete inventory | 0 | 0 |
Inventories, net | $ 9,233,808 | $ 12,930,461 |
NOTE 4 - INVENTORIES (Details)
NOTE 4 - INVENTORIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Oct. 31, 2021 | Oct. 31, 2021 | |
Details | ||
Obsolete inventories wrotedown | $ 465,801 | $ 653,505 |
NOTE 5 - PREPAID EXPENSES AND_2
NOTE 5 - PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Oct. 31, 2021 | Apr. 30, 2021 |
Details | ||
Prepaid expenses and other current assets | $ 4,199,309 | $ 661,882 |
Prepayments to suppliers | 3,660,227 | 435,006 |
Business related employees' advances | $ 539,082 | $ 226,876 |
NOTE 6 - PROPERTY AND EQUIPME_3
NOTE 6 - PROPERTY AND EQUIPMENT: Schedule of property and equipment (Details) - USD ($) | Oct. 31, 2021 | Apr. 30, 2021 |
Details | ||
Office Equipment | $ 430,778 | $ 429,478 |
Auto and Trucks | 600,164 | 646,606 |
Machinery and Equipment, Gross | 6,860,075 | 7,646,765 |
Buildings and Improvements, Gross | 9,681,574 | 10,476,629 |
Construction in Progress, Gross | 17,690 | 17,522 |
Property, Plant and Equipment, Gross | 17,590,281 | 19,217,000 |
Less: accumulated depreciation | (9,204,718) | (9,999,885) |
Property and equipment, net | $ 8,385,563 | $ 9,217,115 |
NOTE 6 - PROPERTY AND EQUIPME_4
NOTE 6 - PROPERTY AND EQUIPMENT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Details | ||||
Total Depreciation Expense | $ 336,757 | $ 322,121 | $ 705,193 | $ 626,560 |
Depreciation in Cost of Revenue | $ 285,439 | $ 298,290 | $ 599,172 | $ 581,013 |
NOTE 7 - LAND USE RIGHTS (Detai
NOTE 7 - LAND USE RIGHTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2021 | May 18, 2021 | |
Details | |||
Land use rights for Qufu Shengren | $ 2,052,000 | ||
Amortization expense for land use rights for Qufu Shengren | $ 15,805 | $ 31,630 | |
Land use rights for Qufu Shengren, net | $ 2,037,635 | $ 2,037,635 |
NOTE 8 - RELATED PARTY TRANSA_3
NOTE 8 - RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Apr. 30, 2021 | Sep. 23, 2019 | |
Details | ||||||
Accounts receivable - related party | $ 0 | $ 0 | $ 5,999,791 | |||
Revenue - related party Qufu Shengwang Import Export | 502,695 | $ 2,254,518 | 546,254 | $ 2,155,762 | ||
Borrowing from Jianjun Yan | $ 1,523,000 | $ 1,523,000 | ||||
Borrowing from Weidong Cai | $ 189,000 |
NOTE 8 - RELATED PARTY TRANSA_4
NOTE 8 - RELATED PARTY TRANSACTIONS: Schedule of Related Party Transactions (Details) - USD ($) | Oct. 31, 2021 | Apr. 30, 2021 |
Details | ||
Due to Pharmaceutical Corporation | $ 4,763,844 | $ 3,484,266 |
Due to Qufu Shengwang Import and Export | 0 | 6,140,404 |
Due to Jianjun Yan | 4,138,350 | 0 |
Due to Weidong Chai | 232,143 | 218,966 |
Total Due to Related Parties | $ 9,134,337 | $ 9,843,636 |
NOTE 9 - OPERATING LEASE (Detai
NOTE 9 - OPERATING LEASE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Jul. 10, 2019 | |
Details | |||||
Lease from Metformin Production Line | $ 436,000 | ||||
Revenue - Lease from Metformin Production Line | $ 106,647 | $ 100,809 | $ 213,429 | $ 198,201 |
NOTE 10 - ACCOUNTS PAYABLE AN_3
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES: Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Details | ||
Accounts Payable | $ 6,003,861 | $ 8,155,842 |
Customer Advances, Current | 709,998 | 143,695 |
Advanced from third parties | 6,726,399 | 0 |
Accrued salary payable | 290,820 | 155,071 |
Taxes Payable, Current | 343,227 | 330,738 |
Accounts Payable, Other, Current | 1,619,184 | 2,356,062 |
Accounts Payable and Accrued Liabilities, Current | $ 15,693,489 | $ 11,141,408 |
NOTE 10 - ACCOUNTS PAYABLE AN_4
NOTE 10 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) | Oct. 31, 2021 | Apr. 30, 2021 |
Details | ||
General liability, worker's compensation, and medical insurance payable | $ 409,230 | $ 412,328 |
Consulting fee payable | 215,702 | 209,871 |
Union and education fees payable | 138,434 | 137,123 |
Interest payables for short-term loans | 50,740 | 147,433 |
Safety production fund payable | 490,750 | 262,449 |
Advanced from the employees | 153,735 | 159,909 |
Security deposit for sub-contractor | 156,111 | 154,631 |
Other miscellaneous payables | $ 4,482 | $ 872,318 |
NOTE 11 -LOAN PAYABLE_ Schedu_2
NOTE 11 -LOAN PAYABLE: Schedule of Short-term loan payable (Details) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Details | ||
Loan from Min Wu at 10% | $ 34,344 | $ 34,019 |
Loan from Jianjun Yan at 10% A | 0 | 1,506,610 |
Loan from Jianjun Yan at 12% C | 0 | 806,711 |
Loan from Junzhen Zhang at 10% A | 30,223 | 27,215 |
Loan from Junzhen Zhang at 10% B | 21,856 | 21,648 |
Loan from Jian Chen at 12% A | 1,014,721 | 0 |
Loan from Qing Kong at 10% A | 99,599 | 98,655 |
Loan from Qing Kong at 10% B | 41,557 | 41,163 |
Loan from Guihai Chen at 10% A | 24,900 | 24,664 |
Loan from Guihai Chen at 10% B | 41,557 | 37,421 |
Loan from Weifeng Kong at 10% A | 31,222 | 30,926 |
Loan from Huagui Yong at 6.3% A | 78,055 | 77,316 |
Loan from Guohui Zhang at 4% A | 251,339 | 248,956 |
Total Short and Long Term Loan Payable | $ 1,669,373 | $ 2,955,304 |
NOTE 11 -LOAN PAYABLE (Details)
NOTE 11 -LOAN PAYABLE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Details | ||||
Interest expense related to short-term loans | $ 24,582 | $ 38,156 | $ 47,413 | $ 109,944 |
NOTE 12 - SEGMENT INFORMATION_3
NOTE 12 - SEGMENT INFORMATION: Schedule of Segment Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Details | ||||
Net revenues - Stevioside - third party | $ 10,001,477 | $ 3,830,340 | $ 16,163,155 | $ 9,020,803 |
Net revenues - Stevioside - related party | 0 | 502,695 | 0 | 2,254,518 |
Net revenues - Stevioside - Total | 10,001,477 | 4,333,035 | 16,163,155 | 11,275,321 |
Net revenues - Corporate - third party | 106,647 | 100,809 | 213,429 | 198,201 |
Net revenues - Corporate - related party | 0 | 0 | 0 | 0 |
Net revenues - Corporate - Total | 106,647 | 100,809 | 213,429 | 198,201 |
Net revenues - Total segment and consolidated revenues | 10,108,124 | 4,433,844 | 16,376,584 | 11,473,522 |
Interest income - Stevioside | (119,934) | (52,018) | (190,605) | (131,125) |
Interest income - Corporate | 0 | 0 | 0 | 0 |
Interest income - Total segment and consolidated interest expense | (119,934) | (52,018) | (190,605) | (131,125) |
Depreciation and amortization - Stevioside | 312,038 | 266,078 | 623,881 | 519,854 |
Depreciation and amortization - Corporate | 56,349 | 56,042 | 112,942 | 106,706 |
Depreciation and amortization - Total segment and consolidated depreciation and amortization | 368,387 | 322,120 | 736,823 | 626,560 |
Loss before taxes and noncontrolling interest - Stevioside | (1,941,725) | (705,674) | (2,753,962) | (1,769,927) |
Loss before taxes and noncontrolling interest - Corporate | 48,952 | 47,223 | 111,072 | 55,649 |
Income (loss) before income taxes - Total segment | $ (1,892,773) | $ (658,451) | $ (2,642,890) | $ (1,714,278) |
NOTE 12 - SEGMENT INFORMATION_4
NOTE 12 - SEGMENT INFORMATION: Schedule of Segment Property and Equipment (Details) - USD ($) | Oct. 31, 2021 | Apr. 30, 2021 |
Details | ||
Segment assets-Stevioside | $ 5,663,314 | $ 7,354,695 |
Segment assets-Corporate and other | 2,722,249 | 1,862,420 |
Segment assets-Total consolidated assets | $ 8,385,563 | $ 9,217,115 |
NOTE 13 - CONCENTRATIONS AND _5
NOTE 13 - CONCENTRATIONS AND CREDIT RISK: Schedule of Revenue by Major Customers by Reporting Segments (Details) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Details | ||||
Vendor A | 39.70% | 11.30% | 39.00% | 19.60% |
Vendor B | 18.50% | 0.00% | 11.50% | 0.00% |
Vendor C | 0.00% | 0.00% | 0.00% | 25.70% |
Vendor D | 0.00% | 10.90% | 0.00% | 10.40% |
NOTE 13 - CONCENTRATIONS AND _6
NOTE 13 - CONCENTRATIONS AND CREDIT RISK: Schedule of Major Vendors (Details) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Details | ||||
Supplier A | 40.50% | 0.00% | 53.60% | 0.00% |
Supplier B | 0.00% | 0.00% | 13.60% | 0.00% |
Supplier C | 0.00% | 33.50% | 0.00% | 24.60% |
Supplier D | 0.00% | 20.30% | 0.00% | 24.30% |
Supplier F | 0.00% | 18.20% | 0.00% | 10.60% |
NOTE 13 - CONCENTRATIONS AND _7
NOTE 13 - CONCENTRATIONS AND CREDIT RISK: Schedule of cash position by geographic area (Details) - USD ($) | Oct. 31, 2021 | Apr. 30, 2021 |
Details | ||
Cash held in United States | $ 181,373 | $ 161,860 |
Percent of Cash held in United States | 26.00% | 10.30% |
Cash held in PRC | $ 517,262 | $ 1,403,969 |
Percent of Cash held in PRC | 74.00% | 89.70% |