FusionTech, Inc.

CIK:0001439446|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Net revenue	$ 1,920,018	$ 2,277,111	$ 3,458,427	$ 3,462,979
Cost of goods sold	1,549,705	1,831,054	2,810,996	2,548,690
Gross profit	370,313	446,057	647,431	914,289
Operating expenses
Selling	103,534	56,900	168,137	123,864
Research and development	65,741	79,831	122,346	119,271
General and administrative	254,787	202,777	1,024,431	452,535
Total operating expenses	424,062	339,508	1,314,914	695,670
(Loss) income from operations	(53,749)	106,549	(667,483)	218,619
Non-operating income (expenses)
Other income (expense), net	56,519	(3,316)	54,174	(3,316)
Interest expense, net	(101,989)	(29,670)	(168,003)	(42,108)
Amortization of prepaid financing costs	(164,914)		(187,530)
Total non-operating expenses	(210,384)	(32,986)	(301,359)	(45,424)
(Loss) Income before income tax	(264,133)	73,563	(968,842)	173,195
Income tax		40,343		65,770
Net (loss) income	(264,133)	33,220	(968,842)	107,425
Foreign currency translation gain (loss)	(77,905)	21,322	85,328	5,891
Comprehensive income (loss)	$ (342,038)	$ 54,542	$ (883,514)	$ 113,316
Basic and diluted net income (loss) per share (in Dollars per share)	$ (0.01)		$ (0.03)
Weighted average number of common shares outstanding - basic and diluted (in Shares)	29,390,000	24,990,000	29,390,000	24,990,000

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (968,842)	$ 107,425
Adjustment to reconcile net income (loss) to net cash (used in) operating activities:
Depreciation	250,058	42,509
Provision for bad debt allowance-Advance to suppliers	160,098	122,385
Provision for bad debt allowance-Accounts receivable	624,588	39,032
(Increase) decrease in assets:
Accounts receivable	1,590,534	(8,948)
Other receivables	121,597	80,400
Advance to suppliers	(429,153)	(84,521)
Prepaid expenses	(37,211)	19,545
Inventory	141,950	(53,747)
Retentions receivable	(212,632)	(147,468)
Tax receivable	(1,191,009)
Other noncurrent assets		39,742
Long-term deposits	(319,313)	(270,870)
Increase (decrease) in current liabilities:
Accounts payable	(1,492,095)	(390,979)
Tax payable		(22,968)
Other payables	59,736	69,048
Unearned revenue	(909,231)	144,003
Net cash used in operating activities	(2,610,925)	(315,412)
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in restricted cash	(3,513,490)	(255,333)
Notes receivable	1,166,780	(509,840)
Increase in construction in progress	(1,050,549)
Purchase of property and equipment	(12,673)	(11,258)
Net cash used in investing activities	(3,409,932)	(776,431)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term loans	6,956,017	1,758,190
Repayment of short-term loans	(1,528,795)
Proceeds from senior convertible promissory notes	3,600,000
Deferred offering cost	(50,000)
Deferred loan cost	(305,320)
Proceeds from notes payable	1,251,382	219,774
Due from shareholder	(15,288)	(8,331)
Due from related party	45,566	(83,752)
Due to shareholder	152,879	(146,516)
Due to related party		83,194
Dividends		(512,805)
Net cash provided by financing activities	10,106,441	1,309,754
Effect of exchange rate changes on cash and equivalents	95,388	5,230
INCREASE IN CASH AND EQUIVALENTS	4,180,972	223,141
CASH AND EQUIVALENTS, BEGINNING BALANCE	1,365,267	1,089,775
CASH AND EQUIVALENTS, ENDING BALANCE	5,546,239	1,312,916
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid	109,923	46,241
Income taxes paid	$ 136,259	$ 135,312

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2011	Dec. 31, 2010
CURRENT ASSETS:
Cash and equivalents	$ 5,546,239	$ 1,365,267
Restricted cash	3,561,876	36,818
Accounts receivable, net of allowance for doubtful accounts of $844,814 and $209,620 for 2011 and 2010, respectively	2,919,098	5,063,833
Inventory	1,244,146	1,362,285
Other receivables	49,685	169,436
Prepaid financing costs	144,179
Due from related parties	8,267
Due from shareholder	15,452
Advances to suppliers, net	761,707	488,639
Tax receivable	212,886
Notes receivable	421,531	1,571,612
Retentions receivable	1,264,707	746,642
Prepaid expenses	78,806	40,443
Total current assets	16,228,579	10,844,975
NONCURRENT ASSETS
Property and equipment, net	435,501	477,019
Retention receivable - noncurrent		283,982
Long-term deposits	1,403,927	1,061,445
Construction in progress	1,496,475	426,708
Prepaid offering costs	23,611
Total noncurrent assets	3,359,514	2,249,154
TOTAL ASSETS	19,588,093	13,094,129
CURRENT LIABILITIES:
Accounts payable	3,300,475	4,721,136
Senior convertible promissory notes payable	3,600,000
Short-term loans	7,030,719	1,517,000
Other payables	974,145	1,870,785
Unearned revenue	327,455	1,223,692
Notes payable	1,482,712	213,912
Due to shareholder	618,085	409,590
Due to former stockholder / officer	80,000	80,000
Total current liabilities	17,413,591	10,036,115
COMMITMENTS AND CONTINGENCIES	0	0
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value, 100,000,000 shares authorized, 29,390,000 shares issued and outstanding	29,390	29,390
Additional paid-in capital	1,554,917	1,554,917
Other comprehensive income	255,384	170,055
Statutory reserve	139,699	203,541
Retained earnings	195,112	1,100,111
Total stockholders' equity	2,174,502	3,058,014
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 19,588,093	$ 13,094,129