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 í░Companyí▒) (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 . A ggregated 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 í░safe harborí▒ 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