YELLOWCAKE MINING INC.

CIK:0001375483|SEC Filings

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Income Statement [Abstract]
Sales	$ 23,704,674	$ 15,844,644	$ 72,776,405	$ 38,066,707
Cost of goods sold	(23,119,444)	(14,823,183)	(70,699,082)	(35,368,682)
Gross profit	585,230	1,021,461	2,077,323	2,698,025
Income from commission and licensing stores	117,940	55,084	406,479	90,541
Operating expenses
Selling expenses	(159,680)	(935,676)	(371,175)	(1,900,373)
General and administrative expenses	(1,079,894)	(68,575)	(3,246,998)	(307,734)
Total operating expenses	(1,239,574)	(1,004,251)	(3,618,173)	(2,208,107)
Income (loss) from operations	(536,404)	72,294	(1,134,371)	580,459
Other income (expenses)
Other income (expenses)	(26,528)	(45,114)	(101,357)
Interest income	2,413		16,049	(42,896)
Interest expenses	(145,637)		(453,447)
Total other income (expenses)	(169,752)	(45,114)	(538,755)	(42,896)
Income (loss) before income taxes	(706,156)	27,180	(1,673,126)	537,563
Provision for Income taxes	(9,056)	(69,213)	(70,249)	(270,171)
Net income (loss)	(715,212)	(42,033)	(1,743,375)	267,392
Less: net income(loss) attributable to non-controlling interests	(47,895)	15,405	(64,288)	13,131
Net income (loss) attributable to Sky Digital Stores Crop.	(667,317)	(57,438)	(1,679,087)	254,261
Net income (loss)	(715,212)	(42,033)	(1,743,375)	267,392
Other comprehensive income (loss)
Foreign currency translation adjustment-Sky Digital Stores Corp.	35,895	52,952	211,471	154,446
Foreign currency transalation adjustment -noncontrolling interests	854		1,886
Comprehensive income (loss)	(678,463)	10,919	(1,530,018)	421,838
Comprehensive income attributable to non-controlling interests	(47,041)	15,405	(62,402)	13,131
Comprehensive income (loss) attributable to Sky Digital Stores Corp.	$ (631,422)	$ (4,486)	$ (1,467,616)	$ 408,707
Basic and diluted earnings (loss) per share (in dollars per share)	$ (0.03)	$ 0.00	$ (0.07)	$ 0.01
Basic and diluted weighted average shares outstanding (in shares)	25,854,320	24,856,267	25,432,076	24,190,571

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (1,743,375)	$ 267,392
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	409,590	110,935
Stock-based compensation	140,236	48,583
Provision for obsolete inventories	40,682
Deferred rent		42,171
Amortization for deferred financing cost	21,025
Deferred tax benefit	(483)	(32,125)
Minority interest
Changes in operating assets and liabilities:
Restricted cash	158,516	(3,853,030)
Accounts receivable	1,574,588	2,274,200
Inventories	(4,646,473)	(1,258,740)
Prepaid expenses	(73,221)	(249,377)
Trade deposit	(2,616,348)	787,378
Security deposits and other receivables	(1,345,600)	53,732
Notes payable	2,377,744
Accounts payable	3,365,150	3,577,784
Accrued expenses and other payables	(4,660,114)	(207,449)
Advance from customers	3,761,068	32,822
Tax payable	14,865	(195,157)
Net cash (used in) provided by operating activities	(3,222,150)	1,399,119
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(1,388,558)	(449,655)
Payment for acquisition of Shenzhen Dasen (net of cash acquired)		(804,343)
Purchase of intangible assets	(5,369,945)
Net cash used in investing activities	(6,758,503)	(1,253,998)
CASH FLOWS FROM FINANCING ACTIVITIES
Capital contribution by Minority shareholders	63,407
Loan to third parties		22,285
Repayment of loans from third parties	(1,147,665)	(350,398)
Proceeds from stockholder loans	2,557,658	4,478,606
(Repayment) proceeds from related party loans	(2,377,744)	153,102
Repayment of bank loans	(4,295,791)
Proceeds from bank loans	9,431,719	3,853,030
Net cash provided by financing activities	4,231,584	8,156,625
Effect of exchange rate changes on cash and cash equivalents	53,215	123,349
Net (decrease) increase in cash and cash equivalents	(5,695,854)	8,425,095
Cash and cash equivalents, beginning of period	8,316,669	38,216
Cash and cash equivalents, end of period	2,620,815	8,463,311
Supplemental disclosure for cash flow information
Income tax paid	47,037	433,324
Interest paid	$ 469,299

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2012	Dec. 31, 2011
Current assets
Cash and cash equivalents	$ 2,620,815	$ 8,316,669
Restricted cash	4,383,605	4,360,625
Accounts receivable	873,894	2,433,043
Inventories, net	8,247,947	3,630,676
Prepaid expenses	107,938	156,623
Trade deposit	3,659,730	1,042,237
Other receivables	1,819,912	121,038
Loan to third parties	188,321	187,334
Loan to employees		445,197
Due from related party	2,373,793
Deferred tax assets	34,259	34,681
Total current assets	24,310,214	20,728,123
Property and equipment, net	1,634,802	556,209
Prepaid expense, non-current	257,851	134,532
Restricted cash, non-current		157,423
Security deposits	158,253	65,238
Goodwill	17,914	17,820
Intangible assets, net	5,799,324	533,809
Deferred financing cost	37,036	57,722
Total non-current assets	7,905,180	1,522,753
TOTAL ASSETS	32,215,394	22,250,876
Current liabilities
Short-term bank loans	9,083,716	5,352,392
Due to related parties	2,746,213	5,039,493
Loans from third parties	1,730,567	2,861,246
Note payable	2,373,793
Accounts payable	5,010,657	1,642,443
Accrued expenses and other payable	335,137	289,125
Advance from customers	4,082,251	325,716
Taxes payable	44,299	29,304
Total current liabilities	25,406,633	15,539,719
Long-term liabilities
Acquistion payable		1,180,675
Long-term bank loan	1,424,276
Deferred rent	37,382	37,185
Deferred tax liabilities	133,483	133,865
Total liabilities	27,001,774	16,891,444
COMMITMENTS AND CONTINGENCIES
Equity
Common stock, $0.001 par value; 750,000,000 shares authorized, 25,854,320 and 24,586,090 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively	25,854	24,586
Additional paid-in capital	5,294,222	3,974,594
Retained earnings(accumulated deficit)	(1,387,701)	291,386
Statutory reserves	356,864	356,864
Accumulated other comprehensive income	840,038	628,567
Total Sky Digital Stores Corp. equity	5,129,277	5,275,997
Non-controlling interests	84,343	83,435
Total Equity	5,213,620	5,359,432
TOTAL LIABILITIES AND EQUITY	$ 32,215,394	$ 22,250,876