China Agri-Business, Inc.

CIK:0001378270|SEC Filings

Condensed Consolidated Statements of Income and Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Sales of products	$ 3,739,017	$ 3,530,563	$ 9,331,431	$ 8,524,078
Cost of goods sold	1,126,301	2,027,496	2,873,826	5,137,544
Gross profit	2,612,716	1,503,067	6,457,605	3,386,534
Selling, general and administrative expenses	504,149	560,961	1,244,605	1,262,053
Income from operations	2,108,567	942,106	5,213,000	2,124,481
Interest and other income	11,846	6,390	33,248	18,584
Loss on investment in Tienwe Technology	(311,600)	0	(311,600)	0
Interest expense	(1,723)	(52,512)	(5,285)	(162,052)
Income before income taxes	1,807,090	895,984	4,929,363	1,981,013
Income taxes	0	0	0	0
Net income	1,807,090	895,984	4,929,363	1,981,013
Earnings per common share:
Basic (in dollars per share)	$ 0.14	$ 0.07	$ 0.38	$ 0.15
Diluted (in dollars per share)	$ 0.14	$ 0.07	$ 0.38	$ 0.15
Weighted average number of common shares used to compute earnings per common share:
Basic (in shares)	13,118,574	12,958,574	13,118,574	12,958,574
Diluted (in shares)	13,118,574	12,958,574	13,134,985	12,958,574
Comprehensive Income:
Net income	1,807,090	895,984	4,929,363	1,981,013
Other comprehensive income - foreign currency translation adjustment	264,940	171,434	616,729	247,143
Comprehensive Income	$ 2,072,030	$ 1,067,418	$ 5,546,092	$ 2,228,156

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
Condensed Consolidated Statements of Cash Flows (USD $)	Sep. 30, 2011	Sep. 30, 2010
Operating activities
Net income	$ 4,929,363	$ 1,981,013
Adjustments to reconcile net income to net cash provided by operating activities:
Increase in allowance for doubtful accounts	9,736	210
Depreciation of property, plant and equipment	56,489	49,467
Amortization of intangible assets and deferred financing costs	10,558	79,884
Amortization of debt discount and fair value of warrants	0	72,499
Amortization of prepaid land lease costs	41,627	0
Loss on investment in Tienwe Technology	311,600	0
Options issued for services	294,566	0
Changes in operating assets and liabilities:
Increase in accounts receivable	(7,580)	(89,453)
Decrease (increase) in inventory	50,708	(149,517)
(Increase) decrease in prepaid expenses and other current assets	(98,910)	13,870
Decrease in accounts payable and accrued liabilities	(182,288)	126,359
Net cash provided by operating activities	5,415,869	2,084,332
Investing activities
Purchase of equipment	(666)	(307,001)
Purchase of products rights	0	(119,576)
Net cash used in investing activities	(666)	(426,577)
Financing activities
Repayment of long-term debt	(7,336)	(4,446)
Proceeds of loan from chief executive officer	0	500,000
Repayment of convertible notes	0	(500,000)
Net cash used in financing activities	(7,336)	(4,446)
Effect of exchange rate changes on cash and cash equivalents	542,926	223,088
Increase in cash and cash equivalents	5,950,793	1,876,397
Cash and cash equivalents, beginning of the priod	13,153,741	9,625,657
Cash and cash equivalents, end of the period	19,104,534	11,502,054
Supplemental Disclosures of Cash Flow Information:
Interest paid	5,285	16,857
Income taxes paid	$ 0	$ 0

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2011	Dec. 31, 2010
Assets
Cash and cash equivalents	$ 19,104,534	$ 13,153,741
Accounts receivable, net of allowance for doubtful accounts of $9,647 and $8,248, respectively	99,815	93,634
Inventory	40,888	91,596
Prepaid expenses	115,053	16,143
Total Current Assets	19,360,290	13,355,114
Property, plant and equipment, net of accumulated depreciation of $348,808 and $279,696, respectively	561,659	599,468
Investment in Tienwe Technology	627,200	909,120
Prepaid land lease costs	515,088	538,654
Intangible assets, net of accumulated amortization of $36,007 and $24,397, respectively	107,456	114,235
Total Assets	21,171,693	15,516,591
Liabilities and Stockholders' Equity
Current portion of long-term debt	10,531	9,405
Accounts payable and accrued liabilities	155,288	337,576
Due to chief executive officer - non-interest bearing, due on demand	501,215	501,215
Total Current Liabilities	667,034	848,196
Long Term Liabilities
Long-term debt	95,334	99,728
Total Long Term Liabilities	95,334	99,728
Total Liabilities	762,368	947,924
Stockholders' Equity
Undesignated preferred stock, par value $.001 per share; authorized 4,900,000 shares; none issued	0	0
Common stock, par value $.001 per share; authorized 100,000,000 shares, issued and outstanding 13,118,574 and 13,118,574 shares as of September 30, 2011 and December 31, 2010, respectively	13,119	13,119
Additional paid-in capital	4,904,618	4,610,052
Retained earnings	13,218,626	8,289,263
Accumulated other comprehensive income (foreign currency translation adjustments)	2,272,962	1,656,233
Total stockholders' equity	20,409,325	14,568,667
Total Liabilities and Stockholders' Equity	$ 21,171,693	$ 15,516,591