$TNBI

Tanke Biosciences Corp

CIK:0001452011|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statements of Operations and Comprehensive Income (Loss) [Abstract]
Net sales	$ 6,041,004	$ 9,906,581	$ 16,276,861	$ 21,878,509
Costs of sales	(4,349,594)	(6,521,478)	(11,097,572)	(14,165,652)
Gross profit	1,691,410	3,385,103	5,179,289	7,712,857
Selling expenses	(796,302)	(611,880)	(2,078,771)	(1,706,112)
Administrative expenses	(1,358,109)	(574,092)	(3,337,168)	(1,795,328)
Depreciation and amortization	(67,337)	(16,642)	(183,891)	(43,071)
(Loss) income from operations	(530,338)	2,182,489	(420,541)	4,168,346
Other (expense) income	(3,125)		40,210
Interest income	147,037	23,573	173,183	193,026
Interest credit (expense)	46,575	(316,422)	(207,860)	(1,058,291)
Amortization of discount on notes		(698,495)	(402,394)	(2,080,301)
(Loss) income before income taxes	(339,851)	1,191,145	(817,402)	1,222,780
Income tax benefit (expense)	26,907	(222,513)	(58,704)	(652,711)
Net (loss) income	(312,944)	968,632	(876,106)	570,069
Net loss attributable to non-controlling interest	(10,860)		(15,857)
Net (loss) income attributable to Tanke Biosciences Corporation	(302,084)	968,632	(860,249)	570,069
Net (loss) income	(312,944)	968,632	(876,106)	570,069
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	152,227	(101,883)	664,816	109,074
Comprehensive (loss) income	(160,717)	866,749	(211,290)	679,143
Comprehensive loss attributable to non-controlling interest	(1,944)		(3,464)
Comprehensive (loss) income attributable to Tanke Biosciences Corporation	$ (158,773)	$ 866,749	$ (207,826)	$ 679,143
(Loss) income per common share:
Basic and diluted	$ (0.02)	$ 0.07	$ (0.07)	$ 0.04
Weighted average number of common shares used in computation
Basic and diluted	13,324,083	13,324,083	13,324,083	13,324,083

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Operating activities:
Net (loss) income	$ (876,106)	$ 570,069
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	629,399	404,123
Amortization of discount on convertible notes payable	402,394	2,080,301
Amortization of capitalized offering costs	115,688	598,088
Changes in operating assets and liabilities:
Accounts receivable	(567,906)	(357,893)
Inventories	(235,767)	(450,057)
Note receivables and payables - related parties		239,476
Other receivables	(184,756)	(143,925)
Deferred tax asset	(733)	(285)
Prepayments	1,853,659	388,393
Other current assets	(12,992)	(23,047)
Other non-current assets	134,736	206,567
Advance from government grant	92,042	(168,561)
Accounts payable	(5,872)	(202,827)
Other payables and accrued liabilities	(40,996)	159,035
Income tax payable	102,077	529,394
Advance from customer	(28,911)
Net cash provided by operating activities	1,375,956	3,828,851
Investing activities:
Increase in loans to customer and supplier		(363,325)
Purchase of property and equipment	(2,433,181)	(799,922)
Purchase of intangible assets	(39,888)	(477,661)
Net cash used in investing activities	(2,473,069)	(1,640,908)
Financing activities:
Change in restricted cash	231,838	168,161
Payment on convertible notes	(160,839)
Proceeds from long-term borrowings	964,800	878,123
Principal payments for long-term borrowings	(1,206,000)
Net cash (used in) provided by financing activities	(170,201)	1,046,284
Effect of exchange rate fluctuations on cash and cash equivalents	152,260	109,074
Net (decrease) increase in cash	(1,115,054)	3,343,301
Cash and cash equivalents, beginning of period	6,168,754	7,700,156
Cash and cash equivalents, end of period	5,053,700	11,043,457
Supplemental disclosures of cash flow information:
Cash paid for interest	162,539	306,803
Cash paid for income taxes	$ 7,151	$ 278,225

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 5,053,700	$ 6,168,754
Restricted cash		231,838
Accounts receivable, net	2,760,884	1,986,663
Inventories, net	1,649,230	1,414,600
Loans to customer and supplier	2,963,158	2,892,868
Other receivables	738,730	483,884
Prepayments	6,472,651	9,029,524
Other current assets	30,050	132,746
Deferred tax assets	27,775	27,042
Total current assets	19,696,178	22,367,919
Property, plant and equipment, net	6,339,399	4,813,232
Construction in progress	1,627,652	295,248
Intangible asset, net	1,146,189	1,238,025
Other non-current assets		134,736
Total assets	28,809,418	28,849,160
Current liabilities:
Accounts payable	640,777	646,649
Advance from customers	99,410	128,321
Other payables and accrued liabilities	901,797	942,793
Income tax payable	1,944,216	1,842,139
Convertible notes, net	7,509,232	7,267,677
Current portion of long-term borrowings	1,139,676	1,268,106
Total current liabilities	12,235,108	12,095,685
Advance from government grant	129,990	37,948
Long-term borrowings	732,649	792,567
Total liabilities	13,097,747	12,926,200
Commitments and contingencies
EQUITY
Common stock, $0.001 par value, 50,000,000 shares authorized, 13,324,083 issued and outstanding as of September 30, 2013 and December 31, 2012	13,324	13,324
Additional paid-in capital	12,220,181	12,220,181
Retained earnings	1,625,488	2,485,736
Statutory reserve	373,406	373,406
Accumulated other comprehensive income	1,323,686	658,870
Total Tanke Biosciences Corporation stockholders' equity	15,556,085	15,751,517
Non-controlling interest	155,586	171,443
Total Equity	15,711,671	15,922,960
Total Liabilities and Equity	$ 28,809,418	$ 28,849,160