Andatee China Marine Fuel Services Corp

CIK:0001469606|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues	$ 146,303,487	$ 61,564,873	$ 363,789,322	$ 190,962,563
Cost of revenues	139,184,245	56,652,979	344,657,658	178,635,410
Gross profit	7,119,242	4,911,894	19,131,664	12,327,153
Operating expenses
Selling expenses	405,810	367,616	876,962	1,184,647
General and administrative expenses	2,576,353	3,547,780	7,254,659	7,684,547
Total operating expenses	2,982,163	3,915,396	8,131,621	8,869,194
Income from operations	4,137,079	996,498	11,000,043	3,457,959
Other income (expense)
Interest income	229,186	58,744	1,364,216	283,792
Interest expense	(2,341,001)	(737,667)	(10,731,892)	(2,818,881)
Income from equity investment	0	12,418	0	28,768
Loss from disposal of equity method investee	(53,339)	0	(41,942)	0
Change in fair value of warrants	(307,746)	(270,539)	(289,144)	(260,389)
Other expense	(20,134)	(193,101)	(42,229)	(193,270)
Total other expense, net	(2,493,034)	(1,130,145)	(9,740,991)	(2,959,980)
Income (loss) before income tax provision	1,644,045	(133,647)	1,259,052	497,979
Provision for income taxes	1,523,361	408,053	1,666,920	877,307
Net income (loss)	120,684	(541,700)	(407,868)	(379,328)
Less: net loss attributable to noncontrolling interest	(4,598)	1,159	(23,554)	(92,025)
Net income (loss) attributable to Andatee China Marine Fuel Services Corporation	125,282	(542,859)	(384,314)	(287,303)
Comprehensive income (loss)
Net income (loss)	120,684	(541,700)	(407,868)	(379,328)
Foreign currency translation adjustment	17,332	(115,317)	(415,652)	1,499,734
Comprehensive income (loss)	138,016	(657,017)	(823,520)	1,120,406
Less: comprehensive income (loss) attributable to noncontrolling interest	3,115	(24,556)	1,612,686	(316,411)
Comprehensive income attributable to Andatee China Marine Fuel Services Corporation	$ 141,131	$ (632,461)	$ 789,166	$ 1,436,817
Weighted average number of shares:
Basic	10,255,813	9,860,159	10,255,813	9,715,858
Diluted	10,419,727	9,860,159	10,255,813	9,715,858
Earnings (losses) per share:
Basic	$ 0.01	$ (0.06)	$ (0.04)	$ (0.01)
Diluted	$ 0.01	$ (0.06)	$ (0.04)	$ (0.01)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities
Net loss	$ (407,868)	$ (379,328)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	2,582,533	1,813,675
Amortization	338,944	393,147
Provision for doubtful accounts	457,730	2,915,205
Change in inventory reserve	185,152	139,549
Deferred tax provision	0	187,901
Amortization of deferred financing costs	7,424,622	0
Stock-based compensation to consulting firm	0	356,667
Stock-based compensation to directors	102,375	136,500
Income from equity investment	0	(28,768)
Loss from disposal of equity method investee	41,942	0
Change in fair value of warrants	289,144	260,389
Changes in operating assets and liabilities:
Accounts receivable	24,605,678	(23,769,140)
Inventories	(36,863,343)	(27,909,845)
Advances to suppliers	24,968,839	(819,909)
Other current assets	(4,627,890)	(3,409,281)
Accounts payable and accrued liabilities	28,942,295	16,851,041
Advances from customers	(1,435,013)	(5,048,428)
Taxes payable	(1,191,124)	3,802,579
Other liabilities	310,211	1,151,546
Net cash provided by (used in) operating activities	45,724,227	(33,320,502)
Cash flows from investing activities
Proceeds from disposal (acquisition) of equity method investee	1,301,723	(1,287,581)
Additions to property and equipment	(1,805,175)	(88,554)
Additions to construction in progress	(53,852,932)	0
Addition to intangible assets	(37,753)	(4,452,134)
Cash paid for acquiring noncontrolling interest	(1,903,770)	(1,722,140)
Net cash used in investing activities	(56,297,907)	(7,550,410)
Cash flows from financing activities
Proceeds from short-term loans	27,254,829	33,718,535
Repayments of short-term loans	(30,834,567)	(15,803,451)
Proceeds from bank notes	141,564,020	128,011,331
Repayments of bank notes	(198,294,743)	(31,545,741)
Restricted cash, net	53,468,281	(59,167,769)
Deferred financing costs	(4,083,991)	0
Repayment of loan from unrelated parties	(97,629)	(7,210,455)
Proceeds (repayment) of loans from related parties	(708,126)	2,354,493
Net cash (used in) provided by financing activities	(11,731,926)	50,356,942
Effect of exchange rate changes on cash and cash equivalents	(130,195)	162,267
Net (decrease) increase in cash and cash equivalents	(22,435,801)	9,648,297
Cash and cash equivalents, beginning of period	22,638,820	1,625,705
Cash and cash equivalents, end of period	203,019	11,274,002
Supplemental cash flow information
Interest paid	7,648,577	2,593,721
Income taxes paid	1,285,953	316,835
Transfer from construction in progress to property, plant and equipment	694,799	0
Transfer from advances to suppliers to construction in progress	$ 53,307,190	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
Current assets
Cash and cash equivalents	$ 203,019	$ 22,638,820
Restricted cash	45,561,801	99,659,597
Accounts receivable, net	19,936,801	45,818,721
Inventories, net	40,498,615	3,893,530
Advances to suppliers, net	1,339,646	25,930,533
Deposits for land use rights	715,053	720,084
Deferred financing costs, net	1,006,589	4,373,603
Equity investment	0	1,351,428
Other current assets	5,201,833	517,320
Total current assets	114,463,357	204,903,636
Property, plant and equipment, net	53,137,119	54,292,903
Construction in progress	71,442,451	17,781,162
Intangible assets, net	15,810,678	16,289,315
Total assets	254,853,605	293,267,016
Current liabilities
Short-term bank borrowings	24,051,744	27,821,419
Bank note payable	133,261,286	191,257,528
Accounts payable and accrued liabilities	31,705,917	3,156,079
Advances from customers	248,821	1,693,875
Loan from third parties	0	98,193
Related party loans payable	876,831	1,595,594
Taxes payable	5,020,720	6,254,057
Other liabilities	1,817,308	1,149,298
Total current liabilities	196,982,627	233,026,043
Warrant liability	579,831	290,687
Total liabilities	197,562,458	233,316,730
Commitments and contingencies
Equity
Common stock, $0.001 par value; 50,000,000 shares authorized; 10,255,813 shares issued; 10,164,621 shares outstanding	10,256	10,256
Treasury stock, at cost; 91,192 shares	(497,693)	(497,693)
Additional paid-in capital	31,612,913	29,998,994
Accumulated other comprehensive income	3,930,402	6,206,460
Retained earnings	17,606,567	17,990,881
Statutory reserve	3,932,585	3,932,585
Total stockholders' equity of the Company	56,595,030	57,641,483
Noncontrolling interest	696,117	2,308,803
Total equity	57,291,147	59,950,286
Total liabilities and equity	$ 254,853,605	$ 293,267,016