China TMK Battery Systems Inc.

CIK:0001382702|SEC Filings

RECONCILIATION OF EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2011

RECONCILIATION OF EARNINGS PER SHARE [Text Block]

NOTE 13: RECONCILIATION OF EARNINGS PER SHARE

		Nine Months Ended				Three Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Numerator:
Net income available to common stockholders	$	10,711,981	$	3,853,393	$	3,659,819	$	3,050,815
Denominator:
Weighted-average shares outstanding for earnings per share, basic		36,888,000		34,426,418		36,888,000		36,888,000
Effect of dilutive securities:
Common stock warrants		-		242,714		-		25,320
Weighted-average shares outstanding for earnings per share, diluted		36,888,000		34,669,132		36,888,000		36,913,320
Net income per share:
Basic	$	0.29	$	0.11	$	0.10	$	0.08
Diluted	$	0.29	$	0.11	$	0.10	$	0.08

Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 10,711,981	$ 3,853,393
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation expense	812,619	530,056
Deferred tax benefit	(11,953)	0
Change in fair value of derivative liability	(1,141,118)	36,570
Common stocks for service provided	0	856,250
Deferred income	0	(27,799)
Changes in operating assets and liabilities:
Trade receivable, net	(3,788,228)	(4,710,724)
Advance to suppliers	(2,352,551)	(876,802)
Inventories, net	(6,522,346)	(362,038)
Accounts payable	2,051,826	470,819
Accrued liabilities and other payable	5,084,213	(199,029)
Customer deposits	313,902	1,278,824
Prepaid expenses and other receivables	(7,219,751)	(58,904)
Wages payable	(107,389)	(94,999)
Various taxes payable	684,206	(327,291)
Other assets	131	(44,330)
Due from/to related parties	(42,336)	0
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(1,526,794)	323,996
CASH FLOWS FROM INVESTING ACTIVITIES
Change in restricted cash	553,320	(529,560)
Purchase and advances for of property, plant, and construction in progress	(4,000,116)	(2,538,393)
Deposit for Hualian acquisition	(870,390)	(3,190,441)
Deposit for land-use right	(3,058,630)	0
Collection of advance/loans - related parties	0	15,204
Proceeds from maturity of certificate of deposit	1,512,832	0
Short-term investments	(9,170,754)	0
Loans made to others	(5,458,351)	0
CASH USED IN INVESTING ACTIVITIES	(20,492,089)	(6,243,190)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowing from bank loans	17,796,986	10,786,027
Repayment of bank loans	(9,978,584)	(9,289,887)
Net proceeds from issuance of common stock	0	9,699,203
Net proceeds from issuance of preferred stock	16,000,000	0
Distribution to owners	0	(1,481,557)
Proceeds from related parties	0	1,446,725
Repayment to related parties	0	(17,691)
Refund related to cancellation of subscription agreement	(506,040)	0
CASH PROVIDED BY FINANCING ACTIVITIES	23,312,362	11,142,820
Effect of exchange rate changes on cash and cash equivalents	(2,427)	7,032
NET INCREASE IN CASH	1,291,052	5,230,658
CASH AND CASH EQUIVALENTS AT BEGINNING OF	356,871	185,590
CASH AND CASH EQUIVALENTS AT END OF YEAR	1,647,923	5,416,248
Supplementary Disclosures for Cash Flow Information:
Interest expense paid	1,227,706	1,109,446
Income taxes paid	$ 1,325,871	$ 805,504

Consolidated Balance Sheets (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current assets
Cash and cash equivalents	$ 1,647,923	$ 356,871
Short-term investment	9,143,712	1,512,400
Trade receivables, net	16,578,868	12,351,588
VAT recoverable	0	276,768
Inventories, net	11,745,964	4,973,989
Due from related parties	40,679	2,269
Prepaid expenses and other receivables	7,361,711	45,372
Advances to suppliers	2,931,770	528,509
Restricted cash	0	1,270,416
Deposit for business acquisition	10,578,802	9,397,891
Deposit for land-use right	3,103,206	0
Total Current Assets	63,132,635	30,716,073
Property, equipment and construction in progress, net	20,486,653	17,239,438
Advance for property and equipment purchase	15,138,162	13,849,212
Restricted cash	748,512	0
Other assets	47,829	46,516
Notes receivable	5,469,188	0
TOTAL ASSETS	105,022,979	61,851,239
Current Liabilities
Accounts payable	6,670,308	4,437,186
Accrued liabilities and other payable	5,752,379	576,164
Customer deposits	827,061	493,256
Wages payable	302,135	398,699
Corporate tax payable	626,074	210,717
Short-term loan	3,002,531	2,571,080
Current portion of long-term bank loans	12,317,980	5,159,422
Property purchase payable	827,279	499,342
Derivative liability	0	1,141,118
Due to related parties	15,606	19,695
Registration rights liability	411,450	411,450
Total Current Liabilities	30,752,803	15,918,129
Long-term bank loans	13,687,998	12,710,430
Deferred tax liability	604,993	598,520
Due to related parties	1,510,563	1,465,420
TOTAL LIABILITIES	46,556,357	30,692,499
SHAREHOLDERS' EQUITY
Preferred stock, $0.001 par value, 10,000,000 shares authorized, 8,000,000 shares and none issued and outstanding at September 30, 2011 and December 31, 2010, respectively	8,000	0
Common stock, $0.001 par value, 300,000,000 shares authorized, 36,888,000 shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively	36,888	36,888
Common stock subscribed	0	253
Additional paid-in capital	26,510,662	11,024,449
Accumulated other comprehensive income	2,309,136	1,207,195
Statutory reserves	1,038,988	1,038,988
Retained earnings (unrestricted)	28,562,948	17,850,967
TOTAL SHAREHOLDERS' EQUITY	58,466,622	31,158,740
EQUITY	$ 105,022,979	$ 61,851,239