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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Biostar Pharmaceuticals Inc (CE) | USOTC:BSPM | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.0001 | 0.00 | 01:00:00 |
x
|
Quarterly Report Pursuant To Section 13 Or 15(d) Of The Securities Exchange Act Of 1934
|
¨
|
Transition Report Pursuant To Section 13 Or 15(d) Of The Securities Exchange Act Of 1934
|
Maryland
|
20-8747899
|
|
(State or other jurisdiction of incorporation of origination)
|
(I.R.S. Employer Identification Number)
|
No. 588 Shiji Xi Avenue
Xianyang, Shaanxi Province
People’s Republic of China
|
712046
|
|
(Address of principal executive offices)
|
(Zip code)
|
Large accelerated filer
¨
|
Accelerated filer
¨
|
||
Non-accelerated filer
¨
|
Smaller reporting company
x
|
Page
|
||
PART I FINANCIAL INFORMATION | ||
Item 1.
|
F-1
|
|
F-1
|
||
F-2
|
||
F-3
|
||
F-4
|
||
Item 2.
|
3
|
|
Item 3.
|
13
|
|
Item 4.
|
13
|
|
PART II OTHER INFORMATION |
|
|
Item 1.
|
14
|
|
Item 1A.
|
14
|
|
Item 2.
|
27
|
|
Item 3.
|
27
|
|
Item 4.
|
27
|
|
Item 5.
|
27
|
|
Item 6.
|
28
|
|
29
|
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
12,119,565
|
$
|
16,971,789
|
||||
Accounts receivable
|
28,815,263
|
35,033,650
|
||||||
Inventories
|
985,274
|
1,373,459
|
||||||
Tax prepaid
|
451,121
|
-
|
||||||
Prepaid expenses and other receivables
|
5,390,773
|
7,129,911
|
||||||
Prepaid research and development expenses
|
789,390
|
-
|
||||||
Total Current Assets
|
48,551,386
|
60,508,809
|
||||||
Deposits
|
-
|
3,148,466
|
||||||
Deferred tax assets
|
3,328,228
|
1,617,688
|
||||||
Property and equipment, net
|
7,038,982
|
7,379,982
|
||||||
Intangible assets, net
|
9,390,806
|
10,406,931
|
||||||
Total Assets
|
$
|
68,309,402
|
$
|
83,061,876
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current Liabilities
|
||||||||
Accounts and other payables
|
$
|
3,644,084
|
$
|
3,334,418
|
||||
Short-term bank loans
|
-
|
787,116
|
||||||
Value-added tax payable
|
451,088
|
895,487
|
||||||
Income tax payable
|
92,677
|
1,643,155
|
||||||
Total Current Liabilities
|
4,187,849
|
6,660,176
|
||||||
Commitment and contingencies
|
||||||||
Stockholders' Equity
|
||||||||
Common stock, $0.001 par value, 100,000,000 shares authorized,
9,993,549 and 9,400,216 shares issued and outstanding as of September 30, 2012 and December 31, 2011*
|
9,993
|
9,400
|
|
|||||
Additional paid-in capital
|
23,238,700
|
22,445,660
|
||||||
Statutory reserve
|
6,490,600
|
6,490,600
|
||||||
Retained earnings
|
30,219,062
|
43,473,834
|
||||||
Accumulated other comprehensive income
|
4,163,198
|
3,982,206
|
||||||
Total Stockholders' Equity
|
64,121,553
|
76,401,700
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
68,309,402
|
$
|
83,061,876
|
||||
*Number of shares issued and outstanding retroactively reflects reverse stock split effective on April 3, 2012
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Sales, net
|
$ | 9,969,375 | $ | 24,779,420 | $ | 34,028,164 | $ | 65,980,481 | ||||||||
Cost of sales
|
4,729,894 | 7,465,966 | 13,379,287 | 19,352,264 | ||||||||||||
Gross profit
|
5,239,481 | 17,313,454 | 20,648,877 | 46,628,217 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Selling expenses
|
6,009,227 | 10,391,335 | 18,498,671 | 26,908,239 | ||||||||||||
General and administrative expenses
|
2,640,240 | 983,778 | 5,124,789 | 4,103,154 | ||||||||||||
Credits for negative publicity
|
- | - | 7,904,513 | - | ||||||||||||
Administrative penalty
|
1,596,174 | - | 1,596,174 | - | ||||||||||||
Research and development expenses
|
789,702 | - | 2,370,605 | - | ||||||||||||
Total operating expenses
|
11,035,343 | 11,375,113 | 35,494,752 | 31,011,393 | ||||||||||||
(Loss) Income from operations
|
(5,795,862 | ) | 5,938,341 | (14,845,875 | ) | 15,616,824 | ||||||||||
Other income (expense)
|
||||||||||||||||
Interest income
|
55,642 | 127,423 | 247,342 | 271,737 | ||||||||||||
Interest expense
|
(1,059 | ) | (2,984 | ) | (33,193 | ) | (10,371 | ) | ||||||||
Other income
|
152 | 273 | 598 | 821 | ||||||||||||
Total other income (expenses)
|
54,735 | 124,712 | 214,747 | 262,187 | ||||||||||||
(Loss) Income before income taxes
|
(5,741,127 | ) | 6,063,053 | (14,631,128 | ) | 15,879,011 | ||||||||||
Income tax expenses (benefits)
|
198,508 | 1,599,316 | (1,376,356 | ) | 4,539,127 | |||||||||||
Net (loss) income
|
(5,939,635 | ) | 4,463,737 | (13,254,772 | ) | 11,339,884 | ||||||||||
Other comprehensive income
|
||||||||||||||||
Foreign currency translation adjustment
|
(117,289 | ) | 640,119 | 180,992 | 1,733,586 | |||||||||||
Total comprehensive (loss) income
|
$ | (6,056,924 | ) | $ | 5,103,856 | $ | (13,073,780 | ) | $ | 13,073,470 | ||||||
(Loss) Earnings per share, on net income
|
||||||||||||||||
Basic
|
$ | (0.63 | ) | $ | 0.47 | $ | (1.41 | ) | $ | 1.22 | ||||||
Diluted
|
$ | (0.63 | ) | $ | 0.47 | $ | (1.41 | ) | $ | 1.22 | ||||||
Weighted average number of common stock outstanding
|
||||||||||||||||
Basic
|
9,490,506 | 9,398,876 | 9,430,532 | 9,264,104 | ||||||||||||
Diluted
|
9,490,506 | 9,398,876 | 9,430,532 | 9,264,104 |
Nine Months Ended
|
||||||||
September 30,
|
||||||||
2012
|
2011
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net (loss) income
|
$
|
(13,254,772
|
)
|
$
|
11,339,884
|
|||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Deferred tax assets
|
(1,705,866
|
)
|
-
|
|||||
Research and development expenses
|
2,370,605
|
-
|
||||||
Depreciation and amortization
|
1,368,205
|
396,267
|
||||||
Credits to accounts receivable due to negative publicity
|
7,904,513
|
-
|
||||||
Allowance for doubtful debts
|
962,399
|
-
|
||||||
Written off of property and equipment
|
21,704
|
-
|
||||||
Stock-based compensation and other non-cash expenses
|
793,633
|
1,642,413
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(2,547,289
|
)
|
(2,931,921
|
)
|
||||
Inventories
|
392,153
|
(1,448,494
|
)
|
|||||
Prepaid expenses and other receivables
|
-
|
(14,757
|
)
|
|||||
Tax prepaid
|
(451,121
|
)
|
-
|
|||||
Accounts payable and accrued expenses
|
1,120,998
|
1,999,095
|
||||||
Value-added tax payable
|
(446,986
|
)
|
(710,873
|
)
|
||||
Income tax payable
|
(1,555,225
|
)
|
1,362,342
|
|||||
Exchange difference
|
11,583
|
213,924
|
||||||
Net cash (used in) provided by operating activities
|
(5,015,466
|
)
|
11,847,880
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Purchase of property and equipment
|
(32,784
|
)
|
(105,488
|
)
|
||||
Balance payment for acquisition of business
|
(822,173
|
)
|
-
|
|||||
Refund of deposit paid for acquisition of business *
|
-
|
928,361
|
||||||
Deposit paid for acquisition of proprietary technologies
|
-
|
(3,119,798
|
)
|
|||||
Compensation received for disposed land use rights
|
1,760,341
|
-
|
||||||
Net cash provided by (used in) investing activities
|
905,384
|
(2,296,925
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Proceeds from short-term loan
|
-
|
782,656
|
||||||
Advance from a shareholder
|
-
|
334,957
|
||||||
Repayment to a shareholder
|
-
|
(334,957
|
)
|
|||||
Repayment for short-term bank loan
|
(791,176
|
)
|
-
|
|||||
Net cash (used in) provided by financing activities
|
(791,176
|
)
|
782,656
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
49,034
|
461,785
|
||||||
Net increase in cash and cash equivalents
|
(4,852,224
|
)
|
10,795,396
|
|||||
Cash and cash equivalents, beginning balance
|
16,971,789
|
13,211,443
|
||||||
Cash and cash equivalents, ending balance
|
$
|
12,119,565
|
$
|
24,006,839
|
||||
SUPPLEMENTAL DISCLOSURES:
|
||||||||
Income tax payments
|
$
|
(2,348,336
|
)
|
$
|
(3,197,761
|
)
|
§
|
Shaanxi Biostar has the full right to control and administer the financial affairs and daily operation of Aoxing Pharmaceutical and has the right to manage and control all assets of Aoxing Pharmaceutical. The registered owners of Aoxing Pharmaceutical as a group have no right to make any decision about Aoxing Pharmaceutical’s activities without the consent of Shaanxi Biostar.
|
§
|
Shaanxi Biostar is assigned all voting rights of Aoxing Pharmaceutical and has the right to appoint all directors and senior management personnel of Aoxing Pharmaceutical. The registered owners of Aoxing Pharmaceutical possess no substantive voting rights.
|
§
|
Shaanxi Biostar is committed to provide financial support if Aoxing Pharmaceutical requires additional funds to maintain its operations and to repay its debts.
|
§
|
Shaanxi Biostar is entitled to a management fee equal to Aoxing Pharmaceutical’s net profits and is obligated to assume all operation risks and bear all losses of Aoxing Pharmaceutical. Therefore, Shaanxi Biostar is the primary beneficiary of Aoxing Pharmaceutical.
|
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(Unaudited)
|
||||||||
Raw materials
|
$
|
650,159
|
$
|
534,338
|
||||
Work in process
|
141,628
|
135,510
|
||||||
Finished goods
|
193,487
|
187,286
|
||||||
Goods in transit
|
-
|
516,325
|
||||||
$
|
985,274
|
$
|
1,373,459
|
Real property
|
30 years
|
Leasehold improvements
|
30 years
|
Machinery & equipment
|
5-10 years
|
Furniture & fixtures and vehicles
|
5-10 years
|
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(Unaudited)
|
||||||||
Real property
|
$
|
3,515,301
|
$
|
3,515,301
|
||||
Leasehold improvements
|
1,956,289
|
1,956,289
|
||||||
Machinery & equipment
|
1,159,495
|
1,131,235
|
||||||
Furniture & fixtures
|
66,282
|
66,282
|
||||||
Vehicles
|
129,225
|
157,239
|
||||||
Construction in progress
|
2,069,640
|
2,065,116
|
||||||
8,896,232
|
8,891,462
|
|||||||
Less: Accumulated depreciation
|
(1,857,250
|
)
|
(1,511,480
|
)
|
||||
$
|
7,038,982
|
$
|
7,379,982
|
Land use rights
|
50 years
|
Proprietary technologies
|
10 years
|
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(Unaudited)
|
||||||||
Land use rights
|
$
|
3,406,406
|
$
|
3,406,406
|
||||
Proprietary technologies
|
8,851,814
|
8,851,814
|
||||||
12,258,220
|
12,258,220
|
|||||||
Less: Accumulated amortization
|
(2,867,414
|
)
|
(1,851,289
|
)
|
||||
$
|
9,390,806
|
$
|
10,406,931
|
Years Ending December 31,
|
||||
2012 (3 months)
|
$
|
342,268
|
||
2013
|
1,369,071
|
|||
2014
|
1,369,071
|
|||
2015
|
1,369,071
|
|||
2016
|
1,369,071
|
|||
Thereafter
|
3,572,254
|
·
|
ASU No. 2011-03, “Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements.” ASU No. 2011-03 removes the transferor’s ability criterion from the consideration of effective control for repurchase agreements and other agreements that both entitle and obligate the transferor to repurchase or redeem financial assets before their maturity. It also eliminates the requirement to demonstrate that the transferor possesses adequate collateral to fund substantially all the cost of purchasing replacement financial assets. This guidance is effective for interim and annual periods beginning on or after December 15, 2011.
|
·
|
ASU No. 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards.” ASU No. 2011-04 provides a consistent definition of fair value to ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and International Financial Reporting Standards. Some of the amendments clarify the Board’s intent about the application of existing fair value measurement requirements. Other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. ASU No. 2011-04 is effective for interim and annual periods beginning after December 15, 2011.
|
·
|
ASU No. 2011-08, “Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for impairment.” The ASU No. 2011-08 permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. The ASU No. 2011-08 are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted, including for annual and interim goodwill impairment tests performed as of a date before September 15, 2011, if an entity’s financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance.
|
·
|
ASU No. 2011-09, “Compensation – Retirement benefits – Multiemployer Plans (Subtopic 715-80): Disclosure about an Employer’s Participation in a Multiemployer Plan. The ASU No. 2011-09 require that employers provide additional separate disclosures for multiemployer pension plans and multiemployer other postretirement benefit plans. The ASU No. 2011-09 are effective for annual periods for fiscal years ending after December 15, 2011, with early adoption permitted.
|
·
|
ASU No. 2011-12, "Comprehensive Income (Topic 220)" The amendments in this Update supersede certain pending paragraphs in Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, to effectively defer only those changes in the Update 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. The amendments will be temporary to allow the Board time to redeliberate the presentation requirements for reclassifications out of accumulated other comprehensive income for annual and interim financial statements for public, private, and non-profit entities. The amendments in this Update are effective at the same time as the amendments in Update 2011-05 so that entities will not be required to comply with the presentation requirements in Update 2011-05 that this Update is deferring. For this reason, the transition guidance in paragraph 220-10-65-2 is consistent with that for Update 2011-05. The amendments in this Update are effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company has elected to present a single statement of comprehensive income as presented in these financial statements.
|
·
|
In December 2011, the FASB issued
ASU No. 2011-10
, “Property, Plant and Equipment (Topic 360): Derecognition of in Substance Real Estate – a Scope Clarification (a consensus of the FASB Emerging Issues Task Force). The ASU No. 2011-10 requires that a parent deconsolidate a subsidiary if the parent ceases to have a controlling financial interest in the subsidiary (except for a sale of in substance real estate). However, in situations other than a sale of in substance real estate, differing views exist in practice on whether the parent of an in substance real estate subsidiary must satisfy the criteria in Subtopic 360-20, Property, Plant, and Equipment – Real Estate Sales, in order to derecognize the in substance real estate. For public entities, the amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after June 15, 2012. Early adoption is permitted. The Company has not elected to early adopt this ASU and is not expected to have a material impact on the Company’s financial statements.
|
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(Unaudited)
|
||||||||
Deposit for research and development
|
$
|
1,302,496
|
$
|
1,298,743
|
||||
Contingent assets
|
1,048,146
|
1,045,126
|
||||||
Other receivables
|
3,040,131
|
4,786,042
|
||||||
$
|
5,390,773
|
$
|
7,129,911
|
September 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(unaudited)
|
||||||||
Prepaid research and development expenses (Current)
|
$
|
789,390
|
$
|
-
|
||||
Deposits (Long-term)
|
-
|
3,148,466
|
||||||
$
|
789,390
|
$
|
3,148,466
|
Exercise
|
Weighted Average
|
|||||||||||||||
Grant date
|
Issued
|
Price
|
Outstanding
|
Exercise Price
|
||||||||||||
November 2, 2009
|
166,667
|
$
|
9.00
|
166,667
|
||||||||||||
June 1, 2010
|
18,333
|
$
|
6.00
|
18,333
|
||||||||||||
Total, as of December 31, 2010
|
185,000
|
185,000
|
$
|
8.70
|
||||||||||||
June 1, 2011
|
10,784
|
$
|
8.22
|
10,784
|
||||||||||||
Total, as of December 31, 2011
|
195,784
|
195,784
|
$
|
8.67
|
||||||||||||
Total, as of September 30, 2012
|
195,784
|
195,784
|
$
|
8.67
|
Grant date
|
Number of option
|
Exercise Price
|
Expiration Date
|
Cancelled
|
Options outstanding as of December 31, 2011
|
Options Outstanding as of
September 30, 2012
|
Vested as of December 31, 2011
|
Vested as of September 30, 2012
|
||||||||||||||||
October 22, 2009
|
326,667
|
$
|
7.80
|
October 21, 2014
|
(44,444
|
)
|
282,222
|
282,222
|
282,222
|
282,222
|
||||||||||||||
December 30, 2009
|
33,333
|
$
|
13.35
|
October 21, 2015
|
-
|
33,333
|
33,333
|
22,222
|
22,222
|
|||||||||||||||
October 27, 2010
|
40,000
|
$
|
8.40
|
October 26, 2015
|
(23,333
|
)
|
16,667
|
16,667
|
16,667
|
16,667
|
||||||||||||||
April 7, 2011
|
23,333
|
$
|
5.91
|
April 6, 2016
|
-
|
23,333
|
23,333
|
-
|
23,333
|
|||||||||||||||
April 7, 2011
|
6,667
|
$
|
7.80
|
April 6, 2014
|
-
|
6,667
|
6,667
|
-
|
2,222
|
|||||||||||||||
April 20, 2012
|
24,000
|
$
|
1.68
|
April 7, 2017
|
-
|
-
|
24,000
|
-
|
-
|
|||||||||||||||
454,000
|
(67,777
|
)
|
362,222
|
386,222
|
321,111
|
346,666
|
||||||||||||||||||
Weighted Average Exercise Price
|
$
|
8.22
|
$
|
7.81
|
||||||||||||||||||||
Weighted Average Remaining Life (in years)
|
2.90
|
2.30
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Basic net (loss) earnings per share:
|
||||||||||||||||
Net (loss) income used in computing basic net (loss) earnings per share
|
$ | (5,939,635 | ) | $ | 4,463,737 | $ | (13,254,772 | ) | $ | 11,339,884 | ||||||
Weighted average number of common stock outstanding
|
9,490,506 | 9,398,876 | 9,430,532 | 9,264,104 | ||||||||||||
Basic net (loss) earnings per share
|
$ | (0.63 | ) | $ | 0.47 | $ | (1.41 | ) | $ | 1.22 | ||||||
Diluted net (loss) earnings per share:
|
||||||||||||||||
Net (loss) income used in computing diluted net earnings per share
|
$ | (5,939,635 | ) | $ | 4,463,737 | $ | (13,254,772 | ) | $ | 11,339,884 | ||||||
Weighted average number of common stock outstanding
|
9,490,506 | 9,398,876 | 9,430,532 | 9,264,104 | ||||||||||||
Weighted average effect of dilutive securities:
|
||||||||||||||||
Stock warrants and options
|
- | - | - | - | ||||||||||||
Shares used in computing diluted net (loss) earnings per share
|
9,490,506 | 9,398,876 | 9,430,532 | 9,264,104 | ||||||||||||
Diluted net (loss) earnings per share
|
$ | (0.63 | ) | $ | 0.47 | $ | (1.41 | ) | $ | 1.22 |
Three Months Ended September 30,
|
|||||||||||||||||
2012
|
2011
|
||||||||||||||||
Drugs
|
|||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$ | 3,026,779 | 30.4 | % | $ | 16,265,914 | 65.7 | % | |||||||||
Gan Wang Compound Paracetamol Capsule
|
412,988 | 4.1 | % | 1,780,322 | 7.2 | % | |||||||||||
Tianqi Dysmenorrhea Capsule
|
454,127 | 4.6 | % | 1,859,092 | 7.5 | % | |||||||||||
Danshen Granule
|
1,269,800 | 12.7 | % | 1,241,407 | 5.0 | % | |||||||||||
Taohuasan Pediatrics Medicine
|
1,093,058 | 11.0 | % | 1,201,331 | 4.8 | % | |||||||||||
Subtotal
|
6,256,752 | 62.8 | % | 22,348,066 | 90.2 | % | |||||||||||
Health products
|
|||||||||||||||||
Tangning Capsule
|
112,726 | 1.1 | % | 607,489 | 2.5 | % | |||||||||||
Yizi Capsule
|
239,030 | 2.4 | % | 1,388,538 | 5.6 | % | |||||||||||
Shengjing Capsule
|
53,532 | 0.5 | % | 299,266 | 1.2 | % | |||||||||||
Aoxing Ointment
|
45,686 | 0.5 | % | 123,373 | 0.5 | % | |||||||||||
Subtotal
|
450,974 | 4.5 | % | 2,418,666 | 9.8 | % | |||||||||||
Hospital products
|
|||||||||||||||||
Pharyngitis Granule
|
649,370 | 6.5 | % | - | - | ||||||||||||
Gastritis Granule
|
199,374 | 2.0 | % | - | - | ||||||||||||
Nasosinusitis Granule
|
446,511 | 4.5 | % | - | - | ||||||||||||
Subtotal
|
1,295,255 | 13.0 | % | - | - | ||||||||||||
Medical device
|
-
Hernia belt
|
4,599 | 0.0 | % | 12,688 | 0.0 | % | ||||||||||
Shaanxi Weinan Products
|
1,961,795 | 19.7 | % | - | - | ||||||||||||
Total sales
|
$ | 9,969,375 | 100 | % | $ | 24,779,420 | 100 | % |
Nine Months Ended September 30,
|
|||||||||||||||||
2012
|
2011
|
||||||||||||||||
Drugs
|
|||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$
|
16,310,838
|
47.9
|
%
|
$
|
44,534,244
|
67.5
|
%
|
|||||||||
Gan Wang Compound Paracetamol Capsule
|
1,498,110
|
4.4
|
%
|
4,447,430
|
6.7
|
%
|
|||||||||||
Tianqi Dysmenorrhea Capsule
|
1,614,920
|
4.8
|
%
|
4,824,068
|
7.3
|
%
|
|||||||||||
Danshen Granule
|
2,981,084
|
8.8
|
%
|
2,998,280
|
4.5
|
%
|
|||||||||||
Taohuasan Pediatrics Medicine
|
3,546,371
|
10.4
|
%
|
3,660,142
|
5.6
|
%
|
|||||||||||
Subtotal
|
25,951,323
|
76.3
|
%
|
60,464,164
|
91.6
|
%
|
|||||||||||
Health products
|
|||||||||||||||||
Tangning Capsule
|
397,775
|
1.2
|
%
|
1,535,521
|
2.3
|
%
|
|||||||||||
Yizi Capsule
|
674,656
|
2.0
|
%
|
2,994,746
|
4.6
|
%
|
|||||||||||
Shengjing Capsule
|
264,319
|
0.8
|
%
|
707,956
|
1.1
|
%
|
|||||||||||
Aoxing Ointment
|
121,084
|
0.3
|
%
|
265,405
|
0.4
|
%
|
|||||||||||
Subtotal
|
1,457,834
|
4.3
|
%
|
5,503,628
|
8.4
|
%
|
|||||||||||
Hospital products
|
|||||||||||||||||
Pharyngitis Granule
|
649,370
|
1.9
|
%
|
-
|
-
|
||||||||||||
Gastritis Granule
|
199,374
|
0.6
|
%
|
-
|
-
|
||||||||||||
Nasosinusitis Granule
|
446,511
|
1.3
|
%
|
-
|
-
|
||||||||||||
Subtotal
|
1,295,255
|
3.8
|
%
|
-
|
-
|
||||||||||||
Medical device
|
-
Hernia belt
|
18,259
|
0.1
|
%
|
12,689
|
0.0
|
%
|
||||||||||
Shaanxi Weinan Products
|
5,305,493
|
15.5
|
%
|
-
|
-
|
||||||||||||
Total revenue
|
$
|
34,028,164
|
100
|
%
|
$
|
65,980,481
|
100
|
%
|
|
Three Months Ended September 30,
|
||||||||||||||||
2012
|
2011
|
||||||||||||||||
Drugs | |||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$ | 549,205 | 11.6 | % | $ | 2,854,158 | 38.2 | % | |||||||||
Gan Wang Compound Paracetamol Capsule
|
227,887 | 4.8 | % | 943,908 | 12.6 | % | |||||||||||
Tianqi Dysmenorrhea Capsule
|
285,974 | 6.0 | % | 1,035,874 | 13.9 | % | |||||||||||
Danshen Granule
|
1,149,069 | 24.3 | % | 1,052,944 | 14.1 | % | |||||||||||
Taohuasan Pediatrics Medicine
|
527,002 | 11.1 | % | 525,581 | 7.1 | % | |||||||||||
Subtotal
|
2,739,137 | 57.8 | % | 6,412,465 | 85.9 | % | |||||||||||
Health products | |||||||||||||||||
Tangning Capsule
|
36,165 | 0.8 | % | 194,759 | 2.6 | % | |||||||||||
Yizi Capsule
|
91,548 | 1.9 | % | 531,796 | 7.2 | % | |||||||||||
Shengjing Capsule
|
41,775 | 0.9 | % | 233,380 | 3.1 | % | |||||||||||
Aoxing Ointment
|
31,640 | 0.7 | % | 83,311 | 1.1 | % | |||||||||||
Subtotal
|
201,128 | 4.3 | % | 1,043,246 | 14.0 | % | |||||||||||
Hospital products | |||||||||||||||||
Pharyngitis Granule
|
493,547 | 10.4 | % | - | - | ||||||||||||
Gastritis Granule
|
123,306 | 2.6 | % | - | - | ||||||||||||
Nasosinusitis Granule
|
325,198 | 6.9 | % | - | - | ||||||||||||
Subtotal
|
942,051 | 19.9 | % | - | - | ||||||||||||
Medical device |
- Hernia belt
|
3,106 | 0.1 | % | 10,255 | 0.1 | % | ||||||||||
Shaanxi Weinan Products | 844,472 | 17.9 | % | - | - | ||||||||||||
Total cost
|
$ | 4,729,894 | 100 | % | $ | 7,465,966 | 100 | % |
|
Nine Months Ended September 30,
|
||||||||||||||||
|
2012
|
2011
|
|||||||||||||||
Drugs | |||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$ | 3,236,039 | 24.2 | % | $ | 7,106,736 | 36.7 | % | |||||||||
Gan Wang Compound Paracetamol Capsule
|
813,473 | 6.1 | % | 2,353,309 | 12.2 | % | |||||||||||
Tianqi Dysmenorrhea Capsule
|
950,124 | 7.1 | % | 2,675,904 | 13.8 | % | |||||||||||
Danshen Granule
|
2,699,893 | 20.2 | % | 2,547,681 | 13.2 | % | |||||||||||
Taohuasan Pediatrics Medicine
|
1,667,768 | 12.5 | % | 2,290,466 | 11.8 | % | |||||||||||
Subtotal
|
9,367,297 | 70.1 | % | 16,974,096 | 87.7 | % | |||||||||||
Health products | |||||||||||||||||
Tangning Capsule
|
127,573 | 1.0 | % | 491,143 | 2.5 | % | |||||||||||
Yizi Capsule
|
258,374 | 1.9 | % | 1,146,549 | 5.9 | % | |||||||||||
Shengjing Capsule
|
206,256 | 1.5 | % | 550,999 | 2.9 | % | |||||||||||
Aoxing Ointment
|
83,505 | 0.6 | % | 179,222 | 0.9 | % | |||||||||||
Subtotal
|
675,708 | 5.0 | % | 2,367,913 | 12.2 | % | |||||||||||
Hospital products | |||||||||||||||||
Pharyngitis Granule
|
493,547 | 3.7 | % | - | - | ||||||||||||
Gastritis Granule
|
123,306 | 0.9 | % | - | - | ||||||||||||
Nasosinusitis Granule
|
325,198 | 2.4 | % | - | - | ||||||||||||
Subtotal
|
942,051 | 7.0 | % | - | - | ||||||||||||
Medical device |
- Hernia belt
|
12,638 | 0.1 | % | 10,255 | 0.1 | % | ||||||||||
Shaanxi Weinan Products | 2,381,593 | 17.8 | % | - | - | ||||||||||||
Total cost
|
$ | 13,379,287 | 100 | % | $ | 19,352,264 | 100 | % |
Three Months Ended September 30,
|
|||||||||||||||||
2012
|
2011
|
||||||||||||||||
Drugs | |||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$ | 2,477,574 | 47.3 | % | $ | 13,411,756 | 77.5 | % | |||||||||
Gan Wang Compound Paracetamol Capsule
|
185,101 | 3.5 | % | 836,414 | 4.8 | % | |||||||||||
Tianqi Dysmenorrhea Capsule
|
168,153 | 3.2 | % | 823,218 | 4.8 | % | |||||||||||
Danshen Granule
|
120,731 | 2.3 | % | 188,463 | 1.0 | % | |||||||||||
Taohuasan Pediatrics Medicine
|
566,056 | 10.8 | % | 675,750 | 3.9 | % | |||||||||||
Subtotal
|
3,517,615 | 67.1 | % | 15,935,601 | 92.0 | % | |||||||||||
Health products | |||||||||||||||||
Tangning Capsule
|
76,561 | 1.5 | % | 412,730 | 2.4 | % | |||||||||||
Yizi Capsule
|
147,482 | 2.8 | % | 856,742 | 5.0 | % | |||||||||||
Shengjing Capsule
|
11,757 | 0.2 | % | 65,886 | 0.4 | % | |||||||||||
Aoxing Ointment
|
14,046 | 0.3 | % | 40,062 | 0.2 | % | |||||||||||
Subtotal
|
249,846 | 4.8 | % | 1,375,420 | 8.0 | % | |||||||||||
Hospital products | |||||||||||||||||
Pharyngitis Granule
|
155,823 | 3.0 | % | - | - | ||||||||||||
Gastritis Granule
|
76,068 | 1.5 | % | - | - | ||||||||||||
Nasosinusitis Granule
|
121,313 | 2.3 | % | - | - | ||||||||||||
Subtotal
|
353,204 | 6.8 | % | - | - | ||||||||||||
Medical device |
- Hernia belt
|
1,493 | 0.0 | % | 2,433 | 0.0 | % | ||||||||||
Shaanxi Weinan Products | 1,117,323 | 21.3 | % | - | - | ||||||||||||
Total gross profit
|
$ | 5,239,481 | 100 | % | $ | 17,313,454 | 100 | % |
Nine Months Ended September 30,
|
|||||||||||||||||
2012
|
2011
|
||||||||||||||||
Drugs
|
|||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$
|
13,074,799
|
63.3
|
%
|
$
|
37,427,508
|
80.3
|
%
|
|||||||||
Gan Wang Compound Paracetamol Capsule
|
684,637
|
3.3
|
%
|
2,094,121
|
4.5
|
%
|
|||||||||||
Tianqi Dysmenorrhea Capsule
|
664,796
|
3.2
|
%
|
2,148,164
|
4.6
|
%
|
|||||||||||
Danshen Granule
|
281,191
|
1.4
|
%
|
450,599
|
1.0
|
%
|
|||||||||||
Taohuasan Pediatrics Medicine
|
1,878,603
|
9.1
|
%
|
1,369,676
|
2.9
|
%
|
|||||||||||
Subtotal
|
16,584,026
|
80.3
|
%
|
43,490,068
|
93.3
|
%
|
|||||||||||
Health products
|
|||||||||||||||||
Tangning Capsule
|
270,202
|
1.3
|
%
|
1,044,378
|
2.2
|
%
|
|||||||||||
Yizi Capsule
|
416,282
|
2.0
|
%
|
1,848,197
|
4.0
|
%
|
|||||||||||
Shengjing Capsule
|
58,063
|
0.3
|
%
|
156,957
|
0.3
|
%
|
|||||||||||
Aoxing Ointment
|
37,579
|
0.2
|
%
|
86,183
|
0.2
|
%
|
|||||||||||
Subtotal
|
782,126
|
3.8
|
%
|
3,135,715
|
6.7
|
%
|
|||||||||||
Hospital products
|
|||||||||||||||||
Pharyngitis Granule
|
155,823
|
0.7
|
%
|
-
|
-
|
||||||||||||
Gastritis Granule
|
76,068
|
0.4
|
%
|
-
|
-
|
||||||||||||
Nasosinusitis Granule
|
121,313
|
0.6
|
%
|
-
|
-
|
||||||||||||
Subtotal
|
353,204
|
1.7
|
%
|
-
|
-
|
||||||||||||
Medical device
|
-
Hernia belt
|
5,621
|
0.0
|
%
|
2,434
|
0.0
|
%
|
||||||||||
Shaanxi Weinan Products
|
2,923,900
|
14.2
|
%
|
-
|
-
|
||||||||||||
Total gross profit
|
$
|
20,648,877
|
100
|
%
|
$
|
46,628,217
|
100
|
%
|
Three Months Ended September 30,
|
||||||||||||||||||||
2012
|
2011
|
|||||||||||||||||||
Amount
|
% of Net Sales
|
Amount
|
% of Net Sales
|
% of Change
|
||||||||||||||||
Selling expenses
|
$
|
6,009,227
|
60
|
%
|
$
|
10,391,335
|
42
|
%
|
-42
|
%
|
||||||||||
General and administrative expenses
|
2,640,240
|
26
|
%
|
983,778
|
4
|
%
|
168
|
%
|
||||||||||||
Research and development expenses
|
789,702
|
8
|
%
|
-
|
-
|
100
|
%
|
|||||||||||||
Administrative penalty
|
1,596,174
|
16
|
%
|
-
|
-
|
100
|
%
|
Nine Months Ended September 30,
|
||||||||||||||||||||
2012
|
2011
|
|||||||||||||||||||
Amount
|
% of Net Sales
|
Amount
|
% of Net Sales
|
% of Change
|
||||||||||||||||
Selling expenses
|
$
|
18,498,671
|
54
|
%
|
$
|
26,908,239
|
41
|
%
|
-31
|
%
|
||||||||||
General and administrative expenses
|
5,124,789
|
15
|
%
|
4,103,154
|
6
|
%
|
25
|
%
|
||||||||||||
Research and development expenses
|
2,370,605
|
7
|
%
|
-
|
-
|
100
|
%
|
|||||||||||||
Administrative penalty
|
1,596,174
|
5
|
%
|
-
|
-
|
100
|
%
|
|||||||||||||
Credits for negative publicity
|
7,904,513
|
23
|
%
|
-
|
-
|
100
|
%
|
Accounts Receivable Aging
|
Total
|
1-30 days
|
31-60 days
|
61-90 days
|
91-120 days
|
121-365 days
|
> 365 days
|
|||||||||||||||||||||
As of September 30, 2012
|
$
|
29,745,962
|
$
|
4,884,748
|
$
|
4,131,889
|
$
|
1,224,383
|
$
|
496,996
|
$
|
18,961,792
|
$
|
46,154
|
||||||||||||||
As of December 31, 2011
|
$
|
35,177,578
|
$
|
8,609,801
|
$
|
9,019,083
|
$
|
11,928,141
|
$
|
5,345,070
|
$
|
229,462
|
$
|
46,021
|
Nine Months Ended September 30,
|
||||||||
2012
|
2011
|
|||||||
Days sales outstanding
|
205
|
171
|
Payments due by period
|
||||||||||||||||||||
Total
|
Within 1 year
|
1-3 years
|
3-5 years
|
>5 years
|
||||||||||||||||
Research and development expense
|
$
|
886,000
|
$
|
886,000
|
-
|
-
|
-
|
|||||||||||||
Purchase of intellectual property
|
5,841,000
|
3,157,000
|
2,684,000
|
-
|
-
|
|||||||||||||||
Total contractual obligations
|
$
|
6,727,000
|
$
|
4,043,000
|
$
|
2,684,000
|
-
|
-
|
·
|
raise adequate capital for expansion and operations;
|
·
|
implement our business model and strategy and adapt and modify them as needed;
|
·
|
increase awareness of our brand name, protect our reputation and develop customer loyalty;
|
·
|
manage our expanding operations and service offerings, including the integration of any future acquisitions;
|
·
|
maintain adequate control of our expenses; or
|
·
|
anticipate and adapt to changing conditions in the medical over the counter, pharmaceutical and nutritional supplement markets in which we operate as well as the impact of any changes in government regulations, mergers and acquisitions involving our competitors, technological developments and other significant competitive and market dynamics.
|
·
|
issue equity securities which would dilute current stockholders’ percentage ownership;
|
·
|
incur substantial debt;
|
·
|
assume contingent liabilities; or
|
·
|
expend significant cash.
|
·
|
difficulties in the assimilation of acquired operations, technologies and/or products;
|
·
|
unanticipated costs associated with the acquisition or investment transaction;
|
·
|
the diversion of management’s attention from other business concerns;
|
·
|
adverse effects on existing business relationships with suppliers and customers;
|
·
|
risks associated with entering markets in which Aoxing Pharmaceutical has no or limited prior experience;
|
·
|
the potential loss of key employees of acquired organizations; and
|
·
|
substantial charges for the amortization of certain purchased intangible assets, deferred stock compensation or similar
items.
|
·
|
the costs of pharmaceutical products and development;
|
·
|
the relative speed and success with which we can obtain and maintain customers, merchants and vendors for our products;
|
·
|
capital expenditure for equipment;
|
·
|
marketing and promotional activities and other costs;
|
·
|
changes in our pricing policies, suppliers and competitors;
|
·
|
the ability of our suppliers to provide products in a timely manner to their customers;
|
·
|
changes in operating expenses;
|
·
|
increased competition in the pharmaceutical markets; and
|
·
|
other general economic and seasonal factors.
|
·
|
require us to incur substantial expense, even if covered by insurance or are successful in the litigation;
|
·
|
require us to divert significant time and effort of our technical and management personnel;
|
·
|
result in the loss of our rights to develop or make certain products; and
|
·
|
require us to pay substantial monetary damages or royalties in order to license proprietary rights from third parties.
|
·
|
producing counterfeit medicine;
|
·
|
producing inferior quality products;
|
·
|
failing to meet the drug GMP standards;
|
·
|
purchasing medical ingredients used in the production of products sources that do not have Pharmaceutical Manufacturing Permit or Pharmaceutical Trade Permit;
|
·
|
fraudulent reporting of results or product samples in application process;
|
·
|
failing to meet drug labeling and direction standards;
|
·
|
bribing doctors or hospital personnel to entice them to use products,
|
·
|
producing pharmaceuticals for use or resale by companies that are not approved by the SFDA, or
|
·
|
the approved drug has a serious side effect.
|
·
|
the safety and quality of our products and ingredients;
|
·
|
the safety and quality of similar products and ingredients distributed by other companies; and
|
·
|
our sales force.
|
·
|
levying fines;
|
·
|
revoking Aoxing Pharmaceutical’s business and other licenses;
|
·
|
requiring that we restructure our ownership or operations; and
|
·
|
requiring that we discontinue any portion or all of our business.
|
Exhibit
Number
|
Description
|
|
3.1
|
Articles of Incorporation filed with the corporate secretary of State of the State of Maryland on March 27, 2007 (1)
|
|
3.2
|
Articles of Amendment filed with the corporate secretary of State of the State of Maryland on August 1, 2007 (1)
|
|
3.3
|
Articles of Amendment filed with the corporate secretary of State of the State of Maryland on September 14, 2007 (1)
|
|
3.4
|
Certificate of Designation for the Series B Convertible Preferred Stock as filed with the corporate secretary of State of Maryland on November 2, 2009 (2)
|
|
3.5
|
Articles of Amendment to the Articles of Incorporation of Biostar Pharmaceuticals, Inc. (4) | |
3.6
|
Bylaws (1)
|
|
10.1
|
Shaanxi Weinan Share Transfer Agreement (3)
|
|
10.2
|
Form Non-competition Agreement (3)
|
|
10.3 | Amendment No.1 to the Employment Agreement (5) | |
31.1
|
||
31.2
|
||
32.1
|
||
32.2
|
||
101.INS
|
XBRL Instance Document | |
101.SCH
|
XBRL Taxonomy Extension Schema | |
101.CAL
|
XBRL Taxonomy Calculation Linkbase | |
101.LAB
|
XBRL Taxonomy Extension Label Linkbase | |
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase | |
101.DEF
|
XBRL Taxonomy Extension Definition Document |
(1)
|
Previously filed as an exhibit to the Company’s Registration Statement on Form SB-2 (File No. 333-147363) filed with the SEC on November 13, 2007.
|
(2)
|
Previously filed as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC on November 3, 2009.
|
(3)
(4)
(5)
|
Previously filed as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC on October 11, 2011 and Previously filed as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC on April 4, 2012 and is incorporated by reference herein.
Previously filed as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC on April 4, 2012.
Previously filed as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC on April 24, 2012.
|
BIOSTAR PHARMACEUTICALS, INC.
(Registrant)
|
|||
Date: November 19, 2012
|
By:
|
/s/ Ronghua Wang
|
|
Ronghua Wang
Chief Executive Officer and President
(Principal Executive Officer)
|
Date: November 19, 2012
|
By:
|
/s/ Zack Pan
|
|
Zack Pan
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
1 Year Biostar Pharmaceuticals (CE) Chart |
1 Month Biostar Pharmaceuticals (CE) Chart |
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