Tianli Agritech, Inc.

CIK:0001486299|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Revenue	$ 5,707,969	$ 6,790,580	$ 19,116,054	$ 19,693,731
Cost of goods sold	5,729,692	5,656,305	17,779,910	16,786,328
Gross profit (loss)	(21,723)	1,134,275	1,336,144	2,907,403
Operating expenses:
General and administrative expenses	649,634	686,415	2,245,189	2,219,404
Selling expenses	62,139	81,845	222,097	238,173
Total operating expenses	711,773	768,260	2,467,286	2,457,577
Income (loss) from operations	(733,496)	366,015	(1,131,142)	449,826
Other income (expense):
Interest income, net	5,999	17,991	40,865	29,660
Loss from farm shutdown	(1,847,109)	0	(1,847,109)	0
Other income	1,476	1,200	3,675	3,236
Total other income (expense)	(1,839,634)	19,191	(1,802,569)	32,896
Income (loss) before income taxes	(2,573,130)	385,206	(2,933,711)	482,722
Income taxes	0	0	0	0
Net income (loss)	$ (2,573,130)	$ 385,206	$ (2,933,711)	$ 482,722
Earning (loss) per share - basic and diluted:
Basic and diluted	$ (0.32)	$ 0.05	$ (0.37)	$ 0.06
Weighted-average shares outstanding, basic and diluted	8,017,078	7,987,495	8,028,189	7,984,995
Comprehensive income (loss):
Net income (loss)	$ (2,573,130)	$ 385,206	$ (2,933,711)	$ 482,722
Unrealized foreign currency translation adjustment	(3,196,930)	1,832,853	(4,355,860)	3,913,305
Comprehensive income (loss)	$ (5,770,060)	$ 2,218,059	$ (7,289,571)	$ 4,396,027

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (2,933,711)	$ 482,722
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,117,630	2,183,253
Amortization of prepaid expenses	49,492	126,250
Amortization of long-term prepaid expenses	77,820	78,283
Loss from disposal of biological assets	167,030	75,954
Stock-based compensation	107,500	6,023
Cost of goods sold related to farm shutdown	112,170	0
Loss from farm shutdown	1,847,109	0
Changes in operating assets and liabilities:
Accounts receivable	7,622	(23,623)
Inventories	73,984	1,042,803
Prepaid expenses	(84,490)	(27,247)
Other receivables	0	3,236
Long-term prepaid expenses	0	(79,712)
Accounts payable and accrued payables	119,873	10,436
Other payables	108,113	36,784
Net cash provided by operating activities	1,770,142	3,915,162
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant and equipment	(1,544)	0
Net cash used in investing activities	(1,544)	0
CASH FLOWS FROM FINANCING ACTIVITIES
Due to related party	47,480	0
Proceeds from short-term loans	1,027,639	2,059,338
Repayment of short-term loans	(1,029,109)	(2,647,721)
Net cash provided by (used in) financing activities	46,010	(588,383)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(3,040,869)	2,605,863
NET INCREASE (DECREASE) IN CASH	(1,226,261)	5,932,642
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	62,636,484	54,458,026
CASH AND CASH EQUIVALENTS, END OF PERIOD	61,410,223	60,390,668
Cash paid during the period for:
Interest expense paid	98,095	72,817
Income tax paid	0	0
NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES:
Inventories received from prior year prepayments	0	1,153,850
Inventories transferred to biological assets	12,867	528,487
Shares issued for equity investment	4,040,000	0
Cancelation of shares related to employees' compensation	$ 0	$ 18

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current Assets:
Cash	$ 61,410,223	$ 62,636,484
Accounts receivable, net	42,193	52,276
Inventories, net	5,162,872	5,633,005
Prepaid expenses	37,558	3,038
Other receivables, net	293,505	308,454
Total Current Assets	66,946,351	68,633,257
Investment	4,040,000	0
Long-term prepaid expenses, net	43,687	1,246,726
Plant and equipment, net	16,620,778	20,033,880
Biological assets, net	1,127,990	1,821,780
Intangible assets, net	2,047,492	2,324,787
Total Assets	90,826,298	94,060,430
Current Liabilities:
Short-term bank loans	2,037,280	2,142,573
Accounts payable and accrued liabilities	122,503	3,956
Due to related party	47,480	0
Other payables	1,217,510	1,370,305
Total Current Liabilities	3,424,773	3,516,834
Stockholders' Equity:
Common stock ($0.004 par value, 25,000,000 shares authorized, 10,033,745 shares and 7,983,745 shares issued and outstanding on September 30, 2018 and December 31, 2017, respectively)	40,134	31,934
Additional paid in capital	65,534,879	61,395,579
Statutory surplus reserves	2,416,647	2,416,647
Retained earnings	25,010,672	27,944,383
Accumulated other comprehensive loss	(5,600,807)	(1,244,947)
Total Stockholders' Equity	87,401,525	90,543,596
Total Liabilities and Stockholders' Equity	$ 90,826,298	$ 94,060,430