Armco Metals Holdings, Inc.

CIK:0001410711|SEC Filings

Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
NET REVENUES	$ 48,471,441	$ 32,198,170	$ 128,443,424	$ 74,996,063
COST OF GOODS SOLD	46,805,691	23,799,849	138,716,410	64,698,705
GROSSPROFIT	1,665,750	8,398,321	(10,272,986)	10,297,358
OPERATING EXPENSES:
Selling expenses	19,417	53,934	40,507	186,867
Professional fees	163,952	117,690	452,290	543,229
General and administrative expenses	427,816	602,002	1,895,730	2,577,582
Operating cost of idle manufacturing facility	515,374	373,835	1,340,707	1,381,049
Total operating expenses	1,126,559	1,147,461	3,729,234	4,688,727
INCOME (LOSS) FROM OPERATIONS	539,191	7,250,860	(14,002,220)	5,608,631
OTHER EXPENSE:
Interest income	(324,173)	(318)	(324,326)	(99,118)
Interest expense	281,856	632,472	1,254,751	3,274,244
Loss on sales of marketable securities		43,434	204,766	43,434
Change in fair value of derivative liabilities		(1,597)	(134,760)	107,378
Loan guarantee expense				13,002
Gain on forgiveness of short-term debt	31,800		(4,049,566)
Government grant			(475,928)	0
Other (income) expense	(79,645)	(13,689)	(194,397)	61,339
Total other expense (income)	(90,162)	660,302	(3,719,460)	3,400,279
INCOME (LOSS) BEFORE INCOME TAX PROVISION	629,353	6,590,558	(10,282,760)	2,208,352
INCOME TAX PROVISION (BENEFIT)	187,957	1,789,904	(2,077,380)	1,789,904
NET INCOME (LOSS)	441,396	4,800,654	(8,205,380)	418,448
OTHER COMPREHENSIVE INCOME (LOSS):
Change in unrealized income (loss) on marketable securities	(364,487)	38,165	(183,628)	70,633
Foreign currency translation loss	(1,973,326)	(3,178)	(1,671,121)	(375,956)
COMPREHENSIVE INCOME (LOSS)	$ (1,890,417)	$ 4,835,641	$ (10,060,129)	$ 113,125
NET INCOME (LOSS) PER COMMON SHARE - BASIC AND DILUTED:
Net income (loss) per common share – basic and diluted (in Dollars per share)	$ 0.05	$ 0.87	$ (1.21)	$ 0.09
Weighted Average Common Shares Outstanding - basic (in Shares)	8,030,521	5,495,532	6,758,059	4,517,536
Weighted Average Common Shares Outstanding - diluted (in Shares)	8,030,521	5,531,263	6,758,059	4,530,348

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (8,205,380)	$ 418,448
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation expense	2,026,860	2,099,052
Amortization expense	39,458	92,082
Deferred income taxes	(2,077,605)
Gain on forgiveness of capital lease obligation	(125,371)
Gain on forgiveness of short-term debt	(4,049,566)
Change in fair value of derivative liabilities	(134,760)	107,378
Loss on sales of marketable securities	204,766	43,434
Amortization of debt discount	611,339	1,991,581
Stock based compensation	380,678	1,033,908
Shares issued for third party services	86,800	268,002
Changes in operating assets and liabilities:
Accounts receivable	23,080,817	(28,274,868)
Inventories	(7,405,965)	6,355,762
Advance on purchases	365,861	(490,624)
Prepayments and other current assets	(4,733,772)	340,861
Banker's acceptance notes payable and letters of credit		(6,656,663)
Accounts payable	4,129,800	16,122,951
Customer deposits	441	821,096
Taxes payable	(2,930,373)	3,490,127
Accrued expenses and other current liabilities	(1,071,065)	596,902
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	192,963	(1,640,571)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from release of pledged deposits	227	5,942,529
Payment made towards pledged deposits		(1,815,807)
Proceeds from sales of marketable securities	46,579	113,808
NET CASH PROVIDED BY INVESTING ACTIVITIES	46,806	4,240,530
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from loans payable	163,255	11,099,278
Repayment of loans payable	(523,823)	(14,486,944)
Proceeds from capital lease obligation		162,600
Repayment of capital lease obligation	(107,712)	(341,574)
Advances from Chairman and CEO	241,756	172,613
Advances from (repayment to) related parties	(133,244)	11,535
Proceeds from convertible notes		600,000
NET CASH USED IN FINANCING ACTIVITIES	(359,768)	(2,782,492)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(108,792)	130,717
NET CHANGE IN CASH	(228,791)	(51,816)
Cash at beginning of the period	1,884,887	596,557
Cash at end of the period	1,656,096	544,741
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
Interest paid	162,433	715,937
NON CASH FINANCING AND INVESTING ACTIVITIES:
Debt discount due to derivative liabilities	596,629	1,950,820
Change in fair value of marketable security	183,628
Reclassification from short-term debt to convertible debt		5,554,468
Reclassification of derivative liability to equity	461,869	2,113,939
Common shares issued for conversion of debt and accrued interest	1,306,530	$ 6,610,635
Capital lease obligation settled with pledge deposit	488,934
Common shares issued for the settlement of loan with Chairman	$ 976,366

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash	$ 1,656,096	$ 1,884,887
Pledged deposits	9,846	498,615
Marketable securities	6,226	73,943
Accounts receivable, net	19,333,656	43,202,886
Inventories	16,023,705	9,154,463
Advance on purchases	5,682,270	1,093,402
Prepayments and other current assets	871,011	1,164,603
Total Current Assets	43,582,810	57,072,799
Property, plant and equipment, net	29,501,508	32,563,929
Land use rights, net	5,810,454	6,108,283
Deferred tax assets	587,264	279,563
Total Assets	79,482,036	96,024,574
CURRENT LIABILITIES:
Loans payable	10,677,110	17,011,843
Banker's acceptance notes payable and letters of credit	1,707,287	1,767,790
Current maturities of capital lease obligation	0	720,819
Accounts payable	9,332,766	5,497,866
Due to related party	560,956	717,703
Customer deposits	1,417,492	1,467,281
Corporate income tax payable	815,073	815,073
Value added tax and other taxes payable	2,696,049	5,747,470
Deferred tax liabilities	1,165,504	2,965,196
Accrued expenses and other current liabilities	2,662,810	3,850,095
Total Current Liabilities	31,376,304	41,438,212
Total Liabilities	31,376,304	41,438,212
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value; 1,000,000 shares authorized; none issued or outstanding	0	0
Common stock, $0.001 par value, 200,000,000 shares authorized, 8,143,827 and 5,615,088 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively	8,144	5,615
Additional paid-in capital	49,178,622	45,968,908
Retained earnings (deficit)	(3,713,432)	4,491,948
Accumulated other comprehensive income:	2,632,398	4,119,891
Total Stockholders' Equity	48,105,732	54,586,362
Total Liabilities and Stockholders' Equity	79,482,036	96,024,574
Chairman and CEO [Member]
CURRENT LIABILITIES:
Advances received from Chairman and CEO	$ 341,257	$ 877,076