AgFeed Industries, Inc.

CIK:0001331427|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Revenues	$ 85,397,972	$ 33,760,376	$ 178,385,171	$ 80,250,232
Cost of goods sold	77,311,556	30,223,994	162,418,653	70,841,813
Gross profit	8,086,416	3,536,382	15,966,518	9,408,419
Operating expenses
Selling expenses	1,086,305	975,823	2,072,968	1,993,987
General and administrative expenses	6,187,232	3,642,078	11,343,437	7,085,249
Receivable credit and collection losses	14,265,222	0	15,484,448	0
Total operating expenses	21,538,759	4,617,901	28,900,853	9,079,236
Income (loss) from operations	(13,452,343)	(1,081,519)	(12,934,335)	329,183
Non-operating income (expense):
Other income (expense)	(38,522)	177,453	(41,238)	252,611
Interest income	7,671	36,951	22,393	84,284
Interest and financing costs	(995,837)	(139,930)	(1,910,796)	(264,841)
Foreign currency transaction loss	(4,467)	(34,364)	(14,595)	(20,561)
Total non-operating income (expense)	(1,031,155)	40,110	(1,944,236)	51,493
Loss from operations before income taxes	(14,483,498)	(1,041,409)	(14,878,571)	380,676
Income tax expense (benefit)	(304,244)	641,139	234,495	1,094,719
Loss from continuing operations	(14,179,254)	(1,682,548)	(15,113,066)	(714,043)
Discontinued operations:
Income (loss) from discontinued operations (including loss on disposal of $830,200 in 2011)	(1,744,242)	(1,382,165)	(2,425,287)	(1,339,446)
Net loss	(15,923,496)	(3,064,713)	(17,538,353)	(2,053,489)
Less: Net loss attributed to noncontrolling interest	(48,466)	(109,961)	(112,499)	(166,155)
Net loss attributed to AgFeed	(15,875,030)	(2,954,752)	(17,425,854)	(1,887,334)
Comprehensive loss
Net loss	(15,923,496)	(3,064,713)	(17,538,353)	(2,053,489)
Foreign currency translation gain	1,462,945	298,682	2,241,388	299,446
Comprehensive loss	$ (14,460,551)	$ (2,766,031)	$ (15,296,965)	$ (1,754,043)
Weighted average shares outstanding :
Basic	60,500,355	45,015,351	56,964,030	44,942,821
Diluted	60,500,355	45,015,351	56,964,030	44,942,821
Basic loss per share attributed to AgFeed common stockholders:
Continuing operations	$ (0.23)	$ (0.03)	$ (0.27)	$ (0.01)
Discontinued operations	$ (0.03)	$ (0.03)	$ (0.04)	$ (0.03)
Earnings Per Share, Basic, Total	$ (0.26)	$ (0.07)	$ (0.31)	$ (0.04)
Diluted loss per share attributed to AgFeed common stockholders:
Continuing operations	$ (0.23)	$ (0.03)	$ (0.27)	$ (0.01)
Discontinued operations	$ (0.03)	$ (0.03)	$ (0.04)	$ (0.03)
Earnings Per Share, Diluted, Total	$ (0.26)	$ (0.07)	$ (0.31)	$ (0.04)

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Jun. 30, 2011	Jun. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (17,538,353)	$ (2,053,489)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	2,743,997	1,575,933
Amortization of intangible assets	365,906	43,410
Loss on sale/disposal of assets	1,460,937	1,321,838
Receivable credit and collection losses	15,484,448	0
Stock based compensation	14,470	150,562
Issuance of common stock for services	770,986	751,440
Amortization of debt issuance costs	4,617	14,921
Amortization of discount on convertible debt	10,864	35,114
Change in working capital components
Accounts receivable	(5,849,266)	(2,945,382)
Other receivables	0	618,255
Inventory	(2,972,764)	(3,340,955)
Advances to suppliers	1,713,581	885,238
Prepaid expenses	(246,045)	(59,691)
Deferred taxes	(173,288)	0
Other assets	1,821,147	0
Accounts payable	(2,281,079)	610,581
Other payables	(1,318,111)	(137,439)
Unearned revenue	(560,326)	(254,731)
Accrued expenses	3,997,211	58,106
Accrued payroll	(77,073)	(243,862)
Tax and welfare payable	(841,248)	74,277
Interest payable	(103,198)	35,195
Net cash used in operating activities	(3,572,587)	(2,860,679)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(14,729,771)	(10,759,297)
Proceeds from the sale of assets	315,114	0
Net cash used in investing activities	(14,414,657)	(10,759,297)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the sale of common stock	16,592,625	0
Borrowings under line of credit facility, net	6,304,433	0
Payment on convertible notes	(1,000,000)	0
Payment on note payable	(1,157,679)	0
Payment on short-term loan	(4,587,000)	0
Capital contributed by noncontrolling interest	0	401,282
Purchase of noncontrolling interest in majority owed hog farms	0	(406,103)
Net cash provided by (used in) financing activities	16,152,379	(4,821)
Effect of exchange rate changes on cash and cash equivalents	193,785	72,133
NET DECREASE IN CASH & CASH EQUIVALENTS	(1,641,080)	(13,552,664)
CASH & CASH EQUIVALENTS, BEGINNING BALANCE	12,399,916	37,580,154
CASH & CASH EQUIVALENTS, ENDING BALANCE	10,758,836	24,027,490
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid, net of amounts capitalized	1,998,299	204,969
Income taxes paid	$ 1,136,283	$ 492,843

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2011	Dec. 31, 2010
CURRENT ASSETS:
Cash and cash equivalents	$ 10,758,836	$ 12,399,916
Accounts receivable, net of allowance for doubtful accounts of $7,044,767 and $707,968	13,230,158	21,841,442
Advances to suppliers	37,969	1,676,593
Inventory	87,942,225	81,379,649
Prepaid expenses and other current assets	3,275,227	2,242,807
Deferred tax asset	83,685	83,685
Assets of discontinued operations	0	6,293,524
Total current assets	115,328,100	125,917,616
PROPERTY AND EQUIPMENT, net	76,748,174	63,631,224
INTANGIBLE ASSETS, net	5,439,708	5,783,102
GOODWILL	22,801,262	22,365,414
DEFERRED TAX ASSET	2,502,836	2,329,548
OTHER ASSETS	2,114,750	3,467,758
TOTAL ASSETS	224,934,830	223,494,662
CURRENT LIABILITIES:
Short-term loan	0	4,551,000
Line of credit	48,535,609	0
Accounts payable	7,429,565	8,783,569
Other payables	3,146,624	3,736,931
Unearned revenue	15,602	489,241
Accrued expenses	11,311,639	6,142,747
Accrued payroll	1,154,654	1,163,504
Tax and welfare payable	1,078,320	1,893,727
Interest payable	18,408	121,392
Current portion of long-term debt	1,718,108	1,703,658
Convertible notes, net of discount of $10,864	0	989,136
Liabilities of discontinued operations	97,446	1,595,805
Total current liabilities	74,505,975	31,170,710
ACQUISITION NOTE PAYABLE	9,621,434	9,621,434
LINE OF CREDIT	0	42,231,176
LONG-TERM DEBT	13,852,537	15,024,666
TOTAL LIABILITIES	97,979,946	98,047,986
COMMITMENTS AND CONTINGENCIES (Note 11)	0	0
AgFeed stockholders' equity:
Common stock, $0.001 per share; 75,000,000 shares authorized; 63,818,757 issued and 63,432,062 outstanding at June 30, 2011 51,756,907 issued and 51,370,212 outstanding at December 31, 2010	63,819	51,758
Additional paid-in capital	142,581,263	125,788,151
Accumulated other comprehensive income	10,356,717	8,120,628
Statutory reserve	5,644,967	5,621,937
Treasury stock (386,695 shares)	(1,858,942)	(1,858,942)
Accumulated deficit	(29,879,113)	(12,430,229)
Total AgFeed stockholders' equity	126,908,711	125,293,303
Noncontrolling interest	46,173	153,373
Total equity	126,954,884	125,446,676
TOTAL LIABILITIES AND EQUITY	$ 224,934,830	$ 223,494,662