ITP 8-K
It Tech Packaging, Inc. (ITP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): May 11, 2021
IT TECH PACKAGING, INC.
(Exact name of registrant as specified in its charter)
Nevada
(State or other jurisdiction of incorporation)
| 001-34577 | 20-4158835 | |
| (Commission File Number) | (IRS Employer Identification No.) |
|
Science Park, Juli Road Xushui District, Baoding City Hebei Province, People’s Republic of China |
072550 | |
| (Address of principal executive offices) | (Zip Code) |
(86) 312-8698215
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||
| Common Stock, par value $0.001 per share | ITP | NYSE American LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
On May 11, 2021, IT Tech Packaging, Inc. (the “Company”) issued a press release announcing its unaudited financial results for the first quarter ended March 31, 2021. A copy of the press release making the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
The following exhibits are filed herewith:
| Exhibit Number |
Description | |
| 99.1 | Press Release dated May 11, 2021, announcing unaudited financial results of the Company for the first quarter ended March 31, 2021. |
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| IT TECH PACKAGING, INC. | |||
| Date: May 12, 2021 | By: | /s/ Zhenyong Liu | |
| Name: | Zhenyong Liu | ||
| Title: | Chief Executive Officer | ||
2
Exhibit 99.1
IT Tech Packaging, Inc. Announces First Quarter 2021 Unaudited Financial Results
Company to Host Earnings Conference Call on Wednesday, May 12, 2021, at 8:00 am ET
BAODING, China, May 11, 2021 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE AMERICAN: ITP) (“IT Tech Packaging” or the “Company”), a leading manufacturer and distributor of diversified paper products in North China, today announced its unaudited financial results for the first quarter ended March 31, 2021.
| For the Three Months Ended March 31, | ||||||||||||
| ($ millions) | 2021 | 2020 | % Change | |||||||||
| Revenues | 24.21 | 8.74 | 176.9 | % | ||||||||
| Regular Corrugating Medium Paper (“CMP”)* | 16.96 | 5.72 | 196.5 | % | ||||||||
| Light-Weight CMP** | 3.75 | 2.02 | 85.9 | % | ||||||||
| Offset Printing Paper | 2.12 | NM | NM | |||||||||
| Tissue Paper Products | 1.25 | 1.01 | 24.4 | % | ||||||||
| Face Masks | 0.13 | NM | NM | |||||||||
| Gross profit | 1.83 | -0.17 | 1178.8 | % | ||||||||
| Gross profit (loss) margin | 7.5 | % | -1.9 | % | 9.4 | pp**** | ||||||
| Regular Corrugating Medium Paper (“CMP”)* | 8.5 | % | 4.9 | % | 3.6 | pp**** | ||||||
| Light-Weight CMP** | 10.9 | % | 12.9 | % | -2.0 | pp**** | ||||||
| Offset Printing Paper | 19.4 | % | NM | NM | ||||||||
| Tissue Paper Products*** | -36.5 | % | -70.7 | % | 34.3 | pp**** | ||||||
| Face Masks | 18.8 | % | NM | NM | ||||||||
| Operating income (loss) | -0.72 | -2.87 | 74.7 | % | ||||||||
| Net income（Loss） | -4.34 | -2.44 | -78.1 | % | ||||||||
| EBITDA | -0.07 | 1.04 | -106.7 | % | ||||||||
| Basic and Diluted earnings (loss) per share | -0.12 | -0.11 | -8.6 | % | ||||||||
| * | Products from PM6 |
| ** | Products from PM1 |
| *** | Products from PM8 and PM9 |
| **** | pp represents percentage points |
| ● | Revenue increased by 176.9% to $24.21 million, primarily attributable to increase in sales volume of CMP and offset printing paper, as well as the increase in Average Selling Prices (“ASPs”) of CMP and tissue paper products. |
| ● | Gross profit was $1.83 million, compared to gross loss of $0.17 million for the same period of last year. Gross margin was 7.5%, compared to gross loss margin of 1.9% for the same period of last year. |
| ● | Loss from operations was $0.72 million, compared to the loss from operations of $2.87 million for the same period of last year. |
| ● | Net loss was $4.34 million, or loss per share of $0.12, compared to net loss of $2.44 million, or loss per share of $0.11, for the same period of last year. |
| ● | Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was negative $0.07 million, compared to $1.04 million for the same period of last year. |
Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, “We continued to making improvements in the sales volume of CMP products for this quarter. Our total revenue had an increase of 176.9% to $24.2 million, resulted from 129.4% growth of overall sales volume and a 20.7% increase in average selling prices over our main products. The average selling prices of over our main products for this quarter increased 11.9% from the fourth quarter 2020 .
We took a quick recovery from the impact of global outbreaks of COVID-19 pandemic, posting growing revenues from sales of tissue paper, offset printing paper and CMP products. Our production and sales of tissue paper products have been growing up steadily since the launch of PM8 and PM9 in December 2018 and November 2019. Currently, we have completed fundamental constructions on its new tissue paper production line (the “PM10”) and is working on the installation of accessory equipment. Amid robust domestic market demand for tissue paper products and improved production efficiency, we anticipate continue expanding our capacity as we expect to see strong growth from tissue paper business segment that we believe will greatly boost our overall performance. In addition, we are also expanding our business to high and new technology business such as combined heat and power generation project utilizing bio mass technology project (“Biomass CHP Project”) and expect to diversify our sources of revenue and ensure our stable modes of profit-making.”
2
First Quarter 2021 Financial Results
Revenue
For the first quarter of 2021, total revenue increased by $15.47 million, or 176.9%, to $24.21 million from $8.74 million for the same period of last year. The increase in total revenue was mainly due to the increase in both sales volume and average selling prices of CMP and offset printing paper products. The following table summarizes revenue, volume and ASPs by products for the first quarter of 2021 and 2020, respectively:
| For the Three Months Ended March 31, | ||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||
| Revenue ($’000) | Volume (tonne) | ASP ($/tonne) | Revenue ($’000) | Volume (tonne) | ASP ($/tonne) | |||||||||||||||||||
| Regular CMP | 16,964 | 33,626 | 504 | 5,722 | 13,788 | 415 | ||||||||||||||||||
| Light-Weight CMP | 3,748 | 7,670 | 489 | 2,016 | 4,889 | 412 | ||||||||||||||||||
| Offset Printing Paper | 2,116 | 3,142 | 673 | NM | NM | NM | ||||||||||||||||||
| Tissue Paper Products | 1,251 | 1,120 | 1,117 | 1,006 | 1,185 | 849 | ||||||||||||||||||
| Total | 24,079 | 45,558 | 529 | 8,744 | 19,862 | 440 | ||||||||||||||||||
| Revenue ($’000) | Volume (thousand pieces) | ASP ($/thousand pieces) | Revenue ($’000) | Volume ($/thousand pieces) | ASP ($/thousand pieces) | |||||||||||||||||||
| Face Masks | 130 | 3,836 | 34 | NM | NM | NM | ||||||||||||||||||
Revenue from CMP, including both regular CMP and Light-Weight CMP, increased by $12.97 million, or 167.7%, to $20.71 million and accounted for 85.6% of total revenue for the first quarter of 2021, compared to $7.74 million, or 88.5% of total revenue, for the same period of last year. The Company sold 41,296 tonnes of CMP at an ASP of $502/tonne in the first quarter of 2021, compared to 18,677 tonnes at an ASP of $414/tonne in the same period of last year.
3
Of the total CMP sales, revenue from regular CMP increased by $11.24 million, or 196.5%, to $16.96 million, resulting from sales of 33,626 tonnes at an ASP of $504/tonne, during the first quarter of 2021, compared to revenue of $5.72 million, resulting from sales of 13,788 tonnes at an ASP of $415/tonne, for the same period of last year. Revenue from light-weight CMP increased by $1.73 million, or 85.9%, to $3.75 million, resulting from sales of 7,670 tonnes at an ASP of $489/tonne for the first quarter of 2021, compared to revenue of $2.02 million, resulting from sales of 4,889 tonnes at an ASP of $412/tonne for the same period of last year.
Revenue from offset printing paper increased by $2.12 million, or 100.0%, to $2.12 million for the first quarter of 2021, from $nil for the same period of last year. The Company sold 3,142 tonnes of offset printing paper at an ASP of $673/tonne in the first quarter of 2021.
Revenue from tissue paper products increased by $0.24 million, or 24.4%, to $1.25 million, resulting from sales of 1,120 tonnes at an ASP of $1,117/tonne, for the first quarter of 2021, compared to revenue of $1.01 million, resulting from sales of 1,185 tonnes at an ASP of $849/tonne for the same period of last year.
Revenue generated from selling face masks was $0.13 million for the first quarter of 2021. The Company sold 3,836 thousand pieces of face masks in the first quarter of 2021.
Gross Profit (Loss) and Gross Profit (Loss) Margin
Total cost of sales increased by $13.47 million, or 151.1%, to $22.38 million for the first quarter of 2021, from $8.91 million for the same period of last year. The increase in total cost of sales was mainly due to the increase in sales volume of CMP and offset printing paper products, as well as increase in material costs. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper and tissue paper products were $462, $435, $543 and $1,525, respectively, for the first quarter of 2021, compared to $395, $359, $nil and $1,450 per tonne, respectively, for the same period of last year. Average unit purchase costs of recycled paper board, major raw material used for our production, was approximately $289/tonne for the first quarter of 2021, compared to $198/tonne for the same period of last year.
Total gross profit was $1.83 million for the first quarter of 2021, compare to the gross loss of $0.17 million for the same period of last year as a result of factors described above. Overall gross profit margin was 7.6% for the first quarter of 2021, compared to the gross loss margin of 1.9% for the same period of last year. Gross profit (loss) margins for regular CMP, light-weight CMP, offset printing paper, tissue paper and face mask products were 8.5%, 10.9%, 19.4%, -36.5% and 18.8%, respectively, for the first quarter of 2021, compared to 4.9%, 12.9%, nil%, -70.7% and nil%, respectively, for the same period of last year.
Selling, General and Administrative Expenses
Selling, general and administrative expenses (“SG&A”) decreased by $0.14 million, or 5.3%, to $2.56 million for the first quarter of 2021 from $2.70 million for the same period of last year. As a percentage of total revenue, SG&A was 10.6% for the first quarter of 2021, compared to 30.8% for the same period of last year.
4
Loss from Operations
Loss from operations was $0.72 million for the first quarter of 2021, compared to the loss from operations of $2.87 million for the same period of last year. The decrease in loss from operations was primarily due to the increase in gross profit. Operating loss margin was 3.0% for the first quarter of 2021, compared to 32.8% for the same period of last year.
Net Loss and Net Loss per Share
Net loss was $4.34 million, or $0.12 loss per basic and diluted share, for the first quarter of 2021, compared to the net loss of $2.44 million, or $0.11 per basic and diluted share, for the same period of last year.
EBITDA
EBITDA was $-0.07 million for the first quarter of 2021, compared to $1.04 million for the same period of the prior year.
Note 1: Non-GAAP Financial Measures
In addition to our U.S. GAAP results, this press release includes a discussion of EBITDA, a non-GAAP financial measure as defined by the Securities and Exchange Commission (“SEC”). The Company defines EBITDA as net income before interest, income taxes, depreciation and amortization. EBITDA is a key measure used by management to evaluate our results and make strategic decisions. Management believes this measure is useful to investors because it is an indicator of operational performance. Because not all companies use identical calculations, the Company’s presentation of EBITDA may not be comparable to similarly titled measures of other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with the U.S. GAAP.
| For the Three Months Ended March 31, | ||||||||
| ($ millions) | 2021 | 2020 | ||||||
| Net income (loss) | -4.34 | -2.44 | ||||||
| Add: Income tax | -0.10 | -0.53 | ||||||
| Net interest expense | 0.28 | 0.24 | ||||||
| Depreciation and amortization | 4.09 | 3.77 | ||||||
| EBITDA | -0.07 | 1.04 | ||||||
Cash, Liquidity and Financial Position
As of March 31, 2021, the Company had cash and bank balances, short-term debt (including bank loans, current portion of long-term loans from credit union and related party loans), and long-term debt (including related party loans) of $37.44 million, $12.08 million and $4.57 million, respectively, compared to $4.14 million, $12.16 million and $4.60 million, respectively, as of December 31, 2020.
Net accounts receivable was $5.21 million as of March 31, 2021, compared to $2.39 million as of December 31, 2020. Net inventory was $7.43 million as of March 31, 2021, compared to $1.23 million as of December 31, 2020. As of March 31, 2021, the Company had current assets of $61.14 million and current liabilities of $20.21 million, resulting in a working capital of $40.93 million. This was compared to current assets of $14.91 million and current liabilities of $18.34 million, resulting in a working capital deficit of $3.43 million as of December 31, 2020.
5
Net cash used in operating activities was $8.28 million for the first quarter of 2021, compared to net cash provided by operating activities of $6.86 million for the same period of last year. Net cash used in investing activities was $0.04 million for the first quarter of 2021, compared to $0.76 million for the same period of last year. Net cash provided by financing activities was $41.79 million for the first quarter of 2021, compared to net cash from financing activities of $nil for the same period of last year.
Recent development
On April 7, 2021, the Company announced it has obtained qualification to supply central heating in industrial parks after month-long review process for its combined heat and power generation project utilizing bio mass technology (“Biomass CHP Project”).
On April 20, 2021, the Company announced it has completed fundamental constructions on its new tissue paper production line (the “PM10”) and is working on the installation of accessory equipment.
Earnings Conference Call
The Company’s management will host a conference call to discuss its first quarter 2021 unaudited financial results at 8:00 am US Eastern Time on Wednesday, May 12, 2021. To attend the conference call, please use the information below.
Date/Time: 8:00 am US Eastern Time (8:00 PM Beijing/Hong Kong Time) on Wednesday, May 12, 2021
Conference Title: IT Tech Packaging, Inc. First Quarter 2021 Earnings Conference Call
Conference ID: 8863957
To attend the conference call, please register in advance of the conference using the link: http://apac.directeventreg.com/registration/event/8863957 to complete the online registration at least 15 minutes prior to the start of the call. Upon registering, the conference access information including participant dial-in numbers, a Direct Event passcode and a registrant ID will be provided to you via an email.
This conference call will be broadcast live on the Internet and can be accessed by all interested parties at https://edge.media-server.com/mmc/p/4vc6vupv. Please access the link at least 15 minutes prior to the start of the call to register, download, and install any necessary audio software.
A playback will be available through 11:00 am ET on May 12, 2021 to 9:59 am ET on May 20, 2021. To listen, please dial+1-855-452-5696 if calling from the United States, or +61-281-990-299 if calling internationally. Use the conference ID 8863957 to access the replay.
6
About IT Tech Packaging, Inc.
Founded in 1996, IT Tech Packaging, Inc. is a leading manufacturer and distributor of diversified paper products in North China. Using recycled paper as its primary raw material (with the exception of its tissue paper products), ITP produces and distributes three categories of paper products: corrugating medium paper, offset printing paper and tissue paper products. With production based in Baoding and Xingtai in North China’s Hebei Province, ITP is located strategically close to the Beijing and Tianjin region, home to a growing base of industrial and manufacturing activities and one of the largest markets for paper products consumption in the country. ITP has been listed on the NYSE MKT since December 2009. For more information, please visit: http://www.itpackaging.cn/ .
Safe Harbor Statements
This press release may contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company’s public filings with the Securities and Exchange Commission, including the Company’s latest annual report on Form 10-K. All information provided in this press release speaks as of the date hereof. Except as otherwise required by law, the Company undertakes no obligation to update or revise its forward-looking statements.
For more information, please contact:
At the Company Email:
Tel: +86 0312 8698215
Investor
Relations:
Janice Wang
EverGreen
Consulting Inc.
Email: [email protected]
7
IT TECH PACKAGING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2021 AND DECEMBER 31, 2020
(Unaudited)
| March 31, | December 31, | |||||||
| 2021 | 2020 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and bank balances | $ | 37,440,991 | $ | 4,142,437 | ||||
| Restricted cash | - | - | ||||||
| Accounts receivable (net of allowance for doubtful accounts of $85,637 and $34,391 as of March 31, 2021 and December 2020, respectively) | 5,211,806 | 2,389,057 | ||||||
| Inventories | 7,431,502 | 1,233,801 | ||||||
| Prepayments and other current assets | 10,655,539 | 7,051,515 | ||||||
| Due from related parties | 400,650 | 92,795 | ||||||
| Total current assets | 61,140,488 | 14,909,605 | ||||||
| Prepayment on property, plant and equipment | 21,000,411 | 21,149,749 | ||||||
| Finance lease right-of-use assets, net | 2,340,142 | 2,397,653 | ||||||
| Property, plant, and equipment, net | 140,109,827 | 145,142,642 | ||||||
| Value-added tax recoverable | 2,502,526 | 2,566,195 | ||||||
| Deferred tax asset non-current | 14,194,939 | 13,708,630 | ||||||
| Total Assets | $ | 241,288,333 | $ | 199,874,474 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Short-term bank loans | $ | 6,389,908 | $ | 6,435,348 | ||||
| Current portion of long-term loans from credit union | 4,960,967 | 4,996,245 | ||||||
| Lease liability | 188,723 | 182,852 | ||||||
| Accounts payable | 2,355,798 | 592,391 | ||||||
| Advance from customers | 82,042 | 82,625 | ||||||
| Due to related parties | 727,433 | 727,433 | ||||||
| Accrued payroll and employee benefits | 308,838 | 224,930 | ||||||
| Other payables and accrued liabilities | 4,715,970 | 4,838,601 | ||||||
| Income taxes payable | 482,209 | 259,649 | ||||||
| Total current liabilities | 20,211,888 | 18,340,074 | ||||||
| Loans from credit union | 4,565,307 | 4,597,772 | ||||||
| Deferred gain on sale-leaseback | 347,158 | 387,087 | ||||||
| Lease liability - non-current | 301,654 | 354,107 | ||||||
| Derivative liability | 11,581,027 | 1,115,260 | ||||||
| Total liabilities (including amounts of the consolidated VIE without recourse to the Company of $19,683,842 and $17,950,224 as of March 31, 2021 and December 31, 2020, respectively) | 37,007,034 | 24,794,300 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders’ Equity | ||||||||
| Common stock, 500,000,000 shares authorized, $0.001 par value per share, 99,049,900 and 28,535,816 shares issued and outstanding as of March 31, 2021 and December, 31,2020, respectively | 99,050 | 28,536 | ||||||
| Additional paid-in capital | 88,927,786 | 53,989,548 | ||||||
| Statutory earnings reserve | 6,080,574 | 6,080,574 | ||||||
| Accumulated other comprehensive income | 4,271,952 | 5,740,722 | ||||||
| Retained earnings | 104,901,937 | 109,240,794 | ||||||
| Total stockholders’ equity | 204,281,299 | 175,080,174 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 241,288,333 | $ | 199,874,474 | ||||
8
IT TECH PACKAGING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020
(Unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2021 | 2020 | |||||||
| Revenues | $ | 24,209,427 | $ | 8,743,851 | ||||
| Cost of sales | (22,378,422 | ) | (8,913,570 | ) | ||||
| Gross Profit (Loss) | 1,831,005 | (169,719 | ) | |||||
| Selling, general and administrative expenses | (2,555,318 | ) | (2,696,963 | ) | ||||
| Gain on acquisition of a subsidiary | - | - | ||||||
| Loss from Operations | (724,313 | ) | (2,866,682 | ) | ||||
| Other Income (Expense): | ||||||||
| Interest income | 4,333 | 5,790 | ||||||
| Subsidy income | 196,787 | 142,998 | ||||||
| Interest expense | (278,901 | ) | (244,718 | ) | ||||
| Loss on derivative liability | (3,636,967 | ) | - | |||||
| Loss before Income Taxes | (4,439,061 | ) | (2,962,612 | ) | ||||
| Provision for Income Taxes | 100,205 | 526,325 | ||||||
| Net Loss | (4,338,856 | ) | (2,436,287 | ) | ||||
| Other Comprehensive Loss | ||||||||
| Foreign currency translation adjustment | (1,468,770 | ) | (2,589,754 | ) | ||||
| Total Comprehensive Loss | $ | (5,807,626 | ) | $ | (5,026,041 | ) | ||
| Losses Per Share: | ||||||||
| Basic and Diluted Losses per Share | $ | (0.12 | ) | $ | (0.11 | ) | ||
| Outstanding – Basic and Diluted | 36,156,280 | 22,054,816 | ||||||
9
IT TECH PACKAGING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020
(Unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2021 | 2020 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net income | $ | (4,338,856 | ) | $ | (2,436,287 | ) | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 4,092,487 | 3,774,674 | ||||||
| Loss on derivative liability | 3,636,967 | |||||||
| (Recovery from) Allowance for bad debts | 52,018 | (22,650 | ) | |||||
| Deferred tax | (589,094 | ) | (541,042 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (2,920,798 | ) | 1,315,128 | |||||
| Prepayments and other current assets | (3,645,323 | ) | 5,486,216 | |||||
| Inventories | (6,270,151 | ) | (373,470 | ) | ||||
| Accounts payable | 1,785,742 | (41,405 | ) | |||||
| Advance from customers | - | 54,930 | ||||||
| Related parties | (311,679 | ) | 1,814,228 | |||||
| Accrued payroll and employee benefits | 86,375 | (62,252 | ) | |||||
| Other payables and accrued liabilities | (84,719 | ) | (728,633 | ) | ||||
| Income taxes payable | 226,699 | (1,379,130 | ) | |||||
| Net Cash (Used in) Provided by Operating Activities | (8,280,332 | ) | 6,860,307 | |||||
| Cash Flows from Investing Activities: | ||||||||
| Purchases of property, plant and equipment | (44,599 | ) | (756,514 | ) | ||||
| Net Cash Used in Investing Activities | (44,599 | ) | (756,514 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
| Proceeds from issuance of shares and warrants, net | 41,837,553 | - | ||||||
| Payment of capital lease obligation | (43,230 | ) | - | |||||
| Net Cash Provided by Financing Activities | 41,794,323 | - | ||||||
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | (170,838 | ) | (229,386 | ) | ||||
| Net Increase in Cash and Cash Equivalents | 33,298,554 | 5,874,407 | ||||||
| Cash, Cash Equivalents and Restricted Cash - Beginning of Period | 4,142,437 | 5,837,745 | ||||||
| Cash, Cash Equivalents and Restricted Cash - End of Period | $ | 37,440,991 | $ | 11,712,152 | ||||
| Supplemental Disclosure of Cash Flow Information: | ||||||||
| Cash paid for interest, net of capitalized interest cost | $ | 97,642 | $ | 116,019 | ||||
| Cash paid for income taxes | $ | 262,191 | $ | 1,379,130 | ||||
| Cash and bank balances | 37,440,991 | 11,712,152 | ||||||
| Restricted cash | - | - | ||||||
| Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 37,440,991 | 11,712,152 | ||||||
10