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, 2010 which are extracted from the Company's Form 10-Q filed with the SEC.

 

Enquiries:

 

Charles Stanley Securities

(Nominated Adviser)

Russell Cook / Carl Holmes

 

Results of Operations

 

Three months ended March 31, 2010 compared to Three months ended March 31, 2009.

 

Revenue.The Company generated revenue of $1,031,309 for the three months ended March 31, 2010, a decrease of $503,726 or 33%, compared to $1,535,035 for the three months ended March 31, 2009. The decrease in revenue is primarily attributable to the overall slowdown in the global economy. The decrease in revenue is attributed to lower sales volume.

Gross Profit.Bodisen achieved a gross profit of $221,426 for the three months ended March 31, 2010, an increase of $9,675 or 5%, compared to $211,751for the three months ended March 31, 2009. Gross margin (gross profit as a percentage of revenues), was 21% for the three months ended March 31, 2010, compared to 14% for the three months ended March 31, 2009. The increase in the gross margin percentage was primarily attributable to an overall decrease in production costs.

Operating expenses.The Company incurred net operating expenses of $562,496 for the three months ended March 31, 2010, an increase of $859,368 or 283%, compared to operating income of $306,872 for the three months ended March 31, 2009. The increase in the Company's operating expenses is primarily attributable to a decrease in bad debt recoveries in 2010 and an increase in marketing promotion and advertising programs and depreciation and amortization expenses. For the three months ended March 31, 2009, the Company recognized $483,514 in bad debt recoveries compared to $31,505 for the comparable period in 2010.

Aggregated selling expenses accounted for $141,414 of its operating expenses for the three months ended March 31, 2010, an increase of $129,168 or 1,055%, compared to $12,246 for the three months ended March 31, 2009. The increase in the Company's aggregated selling expenses is primarily attributable to an increase in marketing promotion and advertising programs.

General and administrative expenses accounted for the remainder of the Company's net operating expenses of $421,082 for the three months ended March 31, 2010, an increase of $752,114 or 227%, compared to income of $331,032 for the three months ended March 31, 2009. The increase in general and administrative expenses is primarily attributable to a decrease in bad debt recoveries in 2010 and an increase in and depreciation and amortization expenses. For the three months ended March 31, 2009, Bodisen recognized $483,514 in bad debt recoveries compared to $31,505 for the comparable period in 2010. Also, for the three months ended March 31, 2010 depreciation and amortization expense increased by $113,723 or 77% due to the increase in property and equipment.

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.

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009

 

		Three Months Ended March 31,
		2010		2009
				(unaudited)
Net Revenue	$	1,031,309	$	1,535,035
Cost of Revenue		809,883		1,323,284
Gross profit		221,426		211,751
Operating expenses
Selling expenses		141,414		12,246
General and administrative expenses		421,082		(331,032)
Write down of assets				11,914
Total operating expenses		562,496		(306,872)
Profit/Loss from operations		(341,070)		518,623
Non-operating income/(expense):
Other income/(expense)		(614)		(717)
Interest income		3,168		192
Interest expense		(660)		(75 )
Loss on the sale of investment		-		(130,247)
Equity income in investment		-		159,643
Total non-operating income/(expense)		1,894		28,796
Profit/loss before provision for income taxes		(339,176)		547,419
Provision for income taxes		-		-
Net income/(loss)		(339,176)		547,419
Other comprehensive income (loss)
Foreign currency translation gain (loss)		(79)		(54,350)
Unrealized loss on marketable equity security		(1,130,410)		(722,319 )
Comprehensive income/(loss)	$	(1,469,665)	$	(229,250 )
Weighted average shares outstanding
Basic		18,710,250		18,710,250
Diluted		18,710,250		18,710,250
Earnings per share:
Basic	$	(0.02)	$	0.03
Diluted	$	(0.02)	$	0.03

CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2010 AND DECEMBER 31, 2009

		March 31,		December 31,
		2010		2009
		(unaudited)
ASSETS
CURRENT ASSETS:
Cash & cash equivalents	$	4,293,375	$	4,824,135
Accounts receivable and other receivable, net of allowance for doubtful accounts of $2,720,097 and $2,751,613		2,158,993		2,158,993
Other receivables		32,364		26,298
Inventory		794,035		991,140
Advances to suppliers		976,735		541,754
Prepaid expense and other current assets		833,839		966,942
Total current assets		9,089,341		9,141,311
PROPERTY AND EQUIPMENT, net		11,634,551		11,837,406
CONSTRUCTION IN PROGRESS		10,422,641		10,422,641
MARKETABLE SECURITY		7,044,879		8,175,290
INTANGIBLE ASSETS, net		4,819,114		4,873,904
TOTAL ASSETS	$	43,010,526	$	44,450,552
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	93,624	$	71,504
Accrued expenses		169,192		161,673
Total current liabilities		262,816		233,177
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 18,310,250 and 18,710,250		1,871		1,871
Additional paid-in capital		33,945,822		33,945,822
Other comprehensive income		12,342,818		13,473,307
Statutory reserve		4,314,488		4,314,488
Retained Earnings		(7,857,289)		(7,518,113)
Total stockholders' equity		42,747,710		44,217,375
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	43,010,526	$	44,450,552

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009

		Three Months Ended March 31,
		2010		2009
		(unaudited)		(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$		$	547,419
Adjustments to reconcile net income (loss) to net cash
used in operating activities:
Depreciation and amortization		260,824		147,101
Loss on disposal of assets		-		11,914
Loss on the sale of investment		-		130,247
Recovery of bad debts		(31,505)		(483,514 )
Equity income in investment		-		(159,643 )
(Increase) / decrease in assets:
Accounts receivable		(336,320)		(861,484)
Other receivable & Loan Receivable		(6,064)		(26,589)
Inventory		197,037		627,397
Advances to suppliers		(434,833)		(174,154 )
Prepaid expense		133,058		14,817
Increase / (decrease) in current liabilities:
Accounts payable and accrued expenses		22,112		(335,494)
Accrued expenses		7,516		(16,640 )
Net cash used in operating activities		(527,351)		(578,623 )
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment		(3,267)		-
Additions to construction in progress		-		(14,624 )
Proceeds from sale of investment		-		735,480
Net cash used in investing activities		(3,267)		720,856
Effect of exchange rate changes on cash and cash equivalents		(142)		(8,344 )
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS		(530,760)		133,889
CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD		4,824,135		90,716
CASH & CASH EQUIVALENTS, END OF PERIOD	$	4,293,375	$	224,605
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid	$	-	$	-
Income taxes paid
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
Transfer of construction in process to property and equipment	$	-	$	7,166,581