DIONICS INC

CIK:0000029006|SEC Filings

Note 21. Earnings per share

9 Months Ended

Sep. 30, 2012

FASB ASC Topic 260, “Earnings Per Share”, requires a reconciliation of the numerator and denominator of the basic and diluted earnings per share (EPS) computations.

The Company only has common stock and preferred stock outstanding at September 30, 2012:

1. 50,000 shares of Series A Convertible Preferred Stock issued and outstanding – each share is convertible into 10,196 shares of common stock.

2. 47,883,290 shares of common stock – issued and outstanding.

Basic earnings per share is calculated by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share are based on the assumption that all dilutive convertible shares, were converted or exercised during the period. Dilution is computed by applying the as converted method for preferred stock.

The following table sets forth the computation of basic and dilutive net income per share:

	For the Nine Months Ended September 30,
	2012		2011
Net income attributable to common stockholders	$	11,214,932	$	10,711,899
Basic weighted average outstanding shares of common stock		29,464,036		20,000,000
Weighted number of dilutive shares		509,800,000		509,800,000
Diluted weighted average common stock and common stock equivalents		539,264,036		529,800,000
Earnings per share:
Basic	$	0.38	$	0.54
Dilutive	$	0.02	$	0.02


	For the Three Months Ended September 30,
		2012		2011
Net income attributable to common stockholders	$	2,848,776	$	3,898,248
Basic weighted average outstanding shares of common stock		47,883,290		20,000,000
Weighted number of dilutive shares		509,800,000		509,800,000
Diluted weighted average common stock and common stock equivalents		557,683,290		529,800,000
Earnings per share:
Basic	$	0.06	$	0.19
Dilutive	$	0.01	$	0.01

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Net income	$ 11,214,932	$ 10,711,899
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,414	16,141
Inventory write-off	0	106,954
Change in operating assets and liabilities:
Accounts receivable	(4,905,551)	1,023,091
Prepaid expenses	138,909	202,074
Inventory	590,619	1,528,428
Accounts payable	(220,201)	189,749
Deferred revenue	(43,536)	(30,261)
Other payables	435,291	795,430
Net cash provided by operating activities	7,233,877	14,543,505
Cash flows (used in) provided by investing activities:
Groves and orchard	587,668	(107,295)
Receipt from related party loan	11,627,741	0
Loan to related party	(8,702,657)	(3,265,923)
Receipt from third party loan	84,873	0
Purchase of equipment	(123,092)	(23,277)
Prepaid deposit for office building	(5,943,344)	0
Net cash (used in) investing activities	(2,468,811)	(3,396,495)
Cash flows (used in) provided by financing activities:
Treasury stock	(3,746,170)	0
Receipt from related party loan payable	371,648	3,278,952
Payment to related party payable	(1,181,131)	(15,760,819)
Capital contribution from owner	0	1,539,001
Capital lease payment	(14,418)	(13,739)
Net cash (used in) financing activities:	(4,570,071)	(10,956,605)
Effect of exchange rate on cash and cash equivalents	3,676	7,880
Net increase in cash and cash equivalents	198,671	198,285
Cash and cash equivalents, beginning of year	419,921	138,614
Cash and cash equivalents, end of period	618,592	336,899
Supplementary cash flow information:
Cash paid for interest	36,669	32,391
Cash paid for income tax	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 618,592	$ 419,921
Accounts receivable	5,409,524	503,697
Related party receivable	0	2,905,211
Prepaid lease	124,347	261,540
Total Current Assets	6,152,463	4,090,369
Prepaid deposit	5,939,864	0
Other receivable	0	84,297
Property and equipment, net	443,059	337,924
Land use rights, net	170,995	173,315
Groves and orchard	14,118,370	14,614,340
Inventories	7,394,160	7,934,833
TOTAL ASSETS	34,218,911	27,235,078
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term loan	221,554	220,178
Accounts payable	151,443	369,207
Deferred Revenue	0	43,240
Other payables	617,672	181,501
Related party payable	79,300	882,745
Obligation under capital lease - current	9,310	8,728
Total Current Liabilities	1,079,279	1,705,599
Long-term liabilities
Obligation under capital lease - non current	357,160	369,785
Total long-term liabilities	357,160	369,785
Total liabilities	1,436,439	2,075,384
Equity
Preferred stock, $0.01 par value, 1,000,000 shares authorized, 2012 and December 31, 2011, respectively	500	500
Common stock, $0.01 par value, 50,000,000 shares authorized, at September 30, 2012 and December 31, 2011, respectively	478,833	200,000
Additional paid in capital	1,699,402	1,978,235
Retained Earnings	29,394,256	21,925,494
Accumulated other comprehensive income	1,209,481	1,055,465
Total Equity	32,782,472	25,159,694
TOTAL LIABILITY PLUS EQUITY	$ 34,218,911	$ 27,235,078