Rodobo International Inc

CIK:0001177274|SEC Filings

Earnings (Loss) Per Share

9 Months Ended

Jun. 30, 2011

13.	EARNINGS (LOSS) PER SHARE

The following table sets forth the earnings (loss) per share calculation:

	For the Three Months Ended June 30,					For the Nine Months Ended June 30,
	2011			2010		2011		2010
Basic earnings per share

Net (Loss) Income	$	(6,892,633	)	$	2,715,928	$	1,032,955	$	8,829,519

Weighted average number of common shares outstanding-Basic		27,394,541			26,031,344		27,352,258		20,741,227

Earnings per share-Basic	$	(0.25	)	$	0.10	$	0.04	$	0.43

Diluted earnings per share

Net Income	$	(6,892,633	)	$	2,715,928	$	1,032,955	$	8,829,519

Weighted average number of common shares outstanding-Basic		27,394,541			26,031,344		27,352,258		20,741,227
Effect of dilutive warrants		-			706,963		405,737		706,962
Effect of dilutive securities - unvested shares		-			276,590		166,885		263,165
Weighted average number of common shares outstanding-Diluted		27,394,541			27,014,897		27,924,880		21,711,354

Earnings per share-Diluted	$	(0.25	)	$	0.10	$	0.04	$	0.41

As of June 30, 2011 and 2010, the Company had unvested stock awards of 673,333 and 1,020,000 shares, respectively. All unvested stock awards were included in the diluted earnings per share calculation for the nine months ended June 30, 2011 and for the three and nine months ended June 30, 2010, but not for the three months ended June 30, 2011 as the Company incurred a net loss for the period. 2,000,000 shares of preferred stock were excluded from the diluted earnings per share calculation due to no conversion rights as of June 30, 2011.

The Company has outstanding investor warrants issued by the Company to acquire 1,363,637 shares of common stock in connection with the reverse merger. These warrants are included in diluted weighted average shares calculation for the nine months ended June 30, 2011 and for the three and nine months ended June 30, 2010 using the treasury stock method, but not for the three months ended June 30, 2011 as the Company incurred a net loss for the period. The warrants issued in connection with the private placement on June 17, 2010 to acquire 622,222 shares of common stock are out of the money as of June 30, 2011 and therefore are not included in diluted weighted average shares calculation.

Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
Statements of Cash Flows (Unaudited) (USD $)	Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities
Net income	$ 1,032,954	$ 8,829,519
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	2,707,107	2,115,885
Allowance for doubtful accounts	225,487	0
Stock-based compensation	1,155,061	1,013,676
Gain on bargain purchase	0	(1,677,020)
Change in fair value of warrants	(1,001,929)	(24,759)
Loss on sale of biological assets	1,018,443	0
Impairment loss on biological assets	3,150,920	0
Changes in assets and liabilities:
Accounts receivable, net	(2,781,099)	(1,919,183)
Inventories	332,725	2,190,028
Prepaid expenses	(357,836)	(23,483)
Advances to suppliers	284,420	1,894,683
Accounts payable and other payable	(1,223,086)	(929,324)
Accrued expenses	(102,775)	(498,796)
Advance from customers	35,266	(2,393,891)
Net cash provided by operating activities	4,475,658	8,577,335
Cash flows from investing activities
Purchase of property, plant and equipment	(6,269,014)	(3,010,502)
Purchase of mature biological assets	(2,047,168)	0
Proceeds from sale of biological assets	405,567	0
Cash acquired in acquisitions, net of cash paid	0	1,056,291
Collection of loan to others	0	1,560,340
Collection of loan to shareholders	0	1,744,895
Net cash used in investing activities	(7,910,615)	1,351,024
Cash flows from financing activities
Net proceeds from issuance of common stock	0	2,652,386
Proceeds from short-term loans	1,140,086	549,411
Repayment of short-term loans	(668,851)	(131,859)
Repayment of related party loans	(311,806)	(1,934,278)
Net cash provided by (used in) financing activities	159,429	1,135,660
Effect of exchange rate changes on cash and cash equivalents	126,716	66,886
Net increase in cash and cash equivalents	(3,148,813)	11,130,905
Cash and cash equivalents, beginning of period	5,163,789	1,640,258
Cash and cash equivalents, end of period	2,014,976	12,771,163
Supplemental disclosures of cash flow information:
Interest paid	39,831	34,969
Income taxes paid	0	0
Non-cash investing and financing activities:
Common stock issued for business acquisition	0	23,850,000
Preferred stock issued for business acquisition	$ 0	$ 4,100,000

Balance Sheets (Unaudited) (USD $)	Jun. 30, 2011	Sep. 30, 2010
ASSETS
Cash and cash equivalents	$ 2,014,976	$ 5,163,789
Accounts receivable, net	7,775,763	8,085,248
Other receivable	3,249,049	0
Inventories	1,239,547	1,523,422
Prepaid expenses	423,597	114,215
Advances to suppliers	714,043	969,369
Total current assets	15,416,975	15,856,043
Property, plant and equipment:
Fixed assets, net of accumulated depreciation	32,655,401	19,575,890
Construction in progress	16,407,696	22,701,594
Total property, plant and equipment, net	49,063,097	42,277,484
Biological assets, net	590,765	3,295,508
Other assets:
Deposits on land	77,358	74,726
Intangible assets, net	9,291,069	10,440,131
Total other assets	9,368,427	10,514,857
Total Assets	74,439,264	71,943,892
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term loans	1,740,562	1,218,025
Accounts payable	907,063	1,457,624
Other payable	142,553	723,015
Accrued expenses	447,144	588,010
Advance from customers	35,894	0
Due to related parties	1,185,062	1,491,616
Total current liabilities	4,458,278	5,478,291
Warrant liability	412,387	1,414,316
Series A preferred stock, $0.0001 par value, 30,000,000 shares authorized, 2,000,000 shares issued and outstanding as of June 30, 2011 and September 30, 2010	4,100,000	4,100,000
Stockholders' equity
Common stock, $0.0001 par value, 200,000,000 shares authorized, 28,273,266 and 28,003,726 shares issued and outstanding as of June 30, 2011 and September 30, 2010, respectively	2,827	2,800
Additional paid in capital	31,499,758	30,344,724
Additional paid in capital - warrants	971,788	971,788
Subscription receivable	(50,000)	(50,000)
Retained earnings	28,621,907	27,588,952
Accumulated other comprehensive income	4,422,319	2,093,022
Total stockholders' equity	65,468,599	60,951,286
Total Liabilities and Stockholders' Equity	$ 74,439,264	$ 71,943,892