TIDMBODI
RNS Number : 7443G
Bodisen Biotech Inc
17 May 2011
Bodisen Biotech, Inc. reports Unaudited First Quarter Financial
Results
Review & Extracts of the Form10-Q as required by the
Securities & Exchange Commission
Bodisen Biotech, Inc. (the "Company") (OTC Pink Sheets: BBCZ;
London AIM: BODI; website: www.bodisen.com) recently announced its
first quarter unaudited results for the period ended March 31, 2011
which are extracted from the Company's Form 10-Q filed with the
SEC.
Results of Operations
Three months ended March 31, 2011 compared to Three months ended
March 31, 2010.
Revenue. The Company generated revenue of $1,024,677 for the
three months ended March 31, 2011, a decrease of $513,665 or 33%,
compared to $1,538,342 for the three months ended March 31, 2010.
The decrease in revenue is primarily attributable to the severe
inflation which caused purchasing from the farmers to decrease.
Gross Profit (Loss). Bodisen achieved a gross profit of $545,460
for the three months ended March 31, 2011, a decrease of $182,999
or 25%, compared to 728,459 for the three months ended March 31,
2010. Gross margin (gross profit as a percentage of revenue), was
53.2% for the three months ended March 31, 2011, compared to 47.4%
for the three months ended March 31, 2010. The increase in the
gross margin percentage was primarily attributable to the higher
profit margins which are earned on the new products.
Selling Expenses. Aggregated selling expenses accounted for
$683,897 of our operating expenses for the three months ended March
31, 2011, an increase of $542,483 or 384%, compared to $141,414 for
the three months ended March 31, 2010. The increase in our
aggregated selling expenses is primarily attributable to an
increase in marketing promotion and advertising programs.
General and Administrative Expenses. General and administrative
expenses accounted for $516,610 of our operating expenses for the
three months ended March 31, 2011, a decrease of $231,374 or 31%,
compared to $747,984 for the three months ended March 31, 2010. The
decrease is principally due to a decrease in our bad debt
expense.
Non Operating Income and Expenses.We had total non-operating
income of $13,688 for the three months ended March 31, 2011, a
change of $11,794 compared to income of $1,894 for the three months
ended March 31, 2010. Other income (expense) was $(229) for the
three months ended March 31, 2011 compared to $(614) for the three
months ended March 31, 2010. During the three months ended March
31, 2011 and 2010, we did not incur any gains or losses related to
equity income in investment.
Liquidity and Capital Resources. We are primarily a parent
holding company for the operations carried out by our indirect
operating subsidiary, Yang Ling, which carries out its activities
in the People's Republic of China. Because of our holding company
structure, our ability to meet our cash requirements apart from our
financing activities, including payment of dividends on our common
stock, if any, substantially depends upon the receipt of dividends
from our subsidiaries, particularly Yang Ling.
As of March 31, 2011, we had $1,739,699 of cash and cash
equivalents compared to $3,675,209 as of December 31, 2010.
Cash Flows
Operating: We used $1,952,514 of cash for operating activities
for the three months ended March 31, 2011 compared to $527,351 of
cash used in operating activities for the three months ended March
31, 2010. The cash used in operating consisted of a net loss of
$1.4 million offset by non cash expenses of depreciation and
amortization of $432,138. In preparation for greater sales, we
increased inventory by $504,557 our advances to suppliers increased
$304,849. Deferred revenues and other payables were paid down
resulting in a decrease in cash of $369,258 and $645,968,
respectively.
Investing: Our investing activities used $525 of cash for the
three months ended March 31, 2011, compared to $3,267 of cash used
investing activities for the three months ended March 31, 2010. The
decrease is immaterial.
Contractual Commitments
In August 2006, we entered into a 30-year land-lease arrangement
with the government of the People's Republic of China, under which
we pre-paid $2,529,818 upon execution of the contract of lease
expense for the next 15 years. We agreed to make a prepayment for
the next eight years in November 2021, and will make a final
pre-payment in November 2029 for the remaining seven years. The
annual lease expense amounts to approximately $169,580. Our
land-lease arrangement is currently our only material on- and
off-balance sheet expected or contractually committed future
obligation.
Off-Balance Sheet Arrangements
We currently do not have any material off-balance sheet
arrangements except for the remaining pre-payments under the
land-lease arrangement described
above.
About Bodisen Biotech, Inc.
Bodisen Biotech, Inc. is a manufacturer of liquid and organic
compound fertilizers, pesticides, insecticides and agricultural raw
material certified by the Petroleum Chemical Industry
Administrative office of China (Chemical Petroleum Production
Administrative Bureau), Shaanxi provincial government and Chinese
government. The company is headquartered in Shaanxi province and is
a Delaware corporation. The company files annual and periodic
reports with the U.S. Securities and Exchange Commission, which are
accessible at www.sec.gov.
Safe Harbor Statement
This press release may contain forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These statements are
based on the current expectations or beliefs of Bodisen Biotech,
Inc. management and are subject to a number of factors and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements.
Enquiries:
Charles Stanley Securities
(Nominated Adviser)
Russell Cook / Carl Holmes 020 7149 6000
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE
INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND
2010
Three Months Ended March 31,
---------------------------------
2011 2010
-------------- -------------
(unaudited)
Net Revenue $ 1,024,677 $ 1,538,342
Cost of Revenue 479,217 809,883
-------------- -------------
Gross profit 545,460 728,459
Operating expenses
Selling expenses 683,897 141,414
General and administrative expenses 516,610 747,984
Total operating expenses 1,200,507 889,398
Loss from operations (655,047) (160,939)
Non-operating income/(expense):
Other income/(expense) (229) (614)
Interest income 48,067 3,168
Interest expense (34,150) (660)
-------------- -------------
Total non-operating
income/(expense) 13,688 1,894
Net loss (641,359) (159,045)
Other comprehensive income (loss)
Foreign currency translation
gain (loss) 222,439 (79)
Unrealized loss on marketable
equity security (4,743,687) (1,310,410)
Comprehensive income/(loss) $ (4,521,248) $ (1,130,489)
============== =============
Weighted average shares outstanding
Basic 21,510,250 18,710,250
============== =============
Diluted 21,510,250 18,710,250
============== =============
Earnings per share:
Basic $ (0.03) $ 0.01
============== =============
Diluted $ (0.03) $ 0.01
============== =============
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2011 AND DECEMBER 31, 2010
March 31, December 31,
2011 2010
------------- -------------
(unaudited) (audited)
ASSETS
CURRENT ASSETS:
Cash & cash equivalents $ 1,739,699 $ 3,675,209
Accounts receivable and other
receivable, net of allowance for
doubtful accounts of $1,015,933 and
$1,005,992 4,413,915 4,499,673
Other receivables 23,151 9,185
Note receivable 1,527,000 1,517,000
Inventory 1,712,321 1,198,134
Advances to suppliers 976,048 665,765
Prepaid expense and other current
assets 12,971 8,598
Total current assets 10,405,105 11,573,564
PROPERTY AND EQUIPMENT, net 22,633,610 22,870,340
MARKETABLE SECURITY, AVAILABLE-FOR-SALE 4,037,180 8,780,867
INTANGIBLE ASSETS, net 4,799,535 4,813,409
TOTAL ASSETS $ 41,875,430 $ 48,038,180
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 1,252,826 $ 1,256,681
Accrued expenses 164,766 811,181
Deferred revenue 1,255,992 1,615,865
Note payable 1,527,000 -
Total current liabilities 4,200,584 3,683,727
Long-term note payable - 1,517,000
TOTAL LIABILITIES 4,200,584 5,200,727
------------- -------------
STOCKHOLDERS' EQUITY:
Preferred stock, $0.0001 per share;
authorized 5,000,000 shares; nil
issued and outstanding - -
Common stock, $0.0001 per share;
authorized 30,000,000 shares; issued
and outstanding 21,510,250 2,151 2,151
Additional paid-in capital 35,345,542 35,345,542
Accumulated other comprehensive income 10,704,056 15,225,304
Statutory reserve 4,314,488 4,314,488
Retained Earnings (12,691,391) (12,050,032)
Total stockholders' equity 37,674,846 42,837,453
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 41,875,430 $ 48,038,180
============= =============
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
Three Months Ended March 31,
---------------------------------
2011 2010
------------- --------------
(as restated)
(unaudited) (unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (641,359) $ (159,045)
Adjustments to reconcile net loss
to net cash
used in operating activities:
Depreciation and amortization 432,138 260,824
Allowance (recovery) of bad debts 3,298 295,397
(Increase) / decrease in
assets:
Accounts receivable 111,727 (336,320)
Other receivables (13,858) (6,064)
Inventory (504,557) 197,037
Advances to suppliers (304,849) (434,833)
Prepaid expense (4,301) 133,058
Increase / (decrease) in current
liabilities:
Accounts payable (12,030) 22,112
Accrued expenses (3,497) 7,516
Deferred revenue (369,258) (507,033)
Other payables (645,968) -
------------- --------------
Net cash used in operating activities (1,952,514)) (527,351)
------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (525) (3,257)
Net cash used in investing activities (525) (3,267)
------------- --------------
Effect of exchange rate changes on
cash and cash equivalents 17,259 (142)
------------- --------------
NET DECREASE IN CASH & CASH EQUIVALENTS (1,935,510) (530,760)
CASH & CASH EQUIVALENTS, BEGINNING
OF PERIOD 3,675,209 4,824,135
------------- --------------
CASH & CASH EQUIVALENTS, END OF
PERIOD $ 1,739,699 $ 4,293,375
============= ==============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Interest paid $ - $ -
============= ==============
Income taxes paid - -
============= ==============
This information is provided by RNS
The company news service from the London Stock Exchange
END
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