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, 2012.

 

Results of Operations

 

Three months ended March 31, 2012 compared to Three months ended March 31, 2011.

 

Revenue : We generated revenue of $1,080,966 for the three months ended March 31, 2012, an increase of $56,289 or 5.5%, compared to $1,024,677 for the three months ended March 31, 2011.  The increase in revenue is primarily attributable to products structure change and increased demand from customers for crop production and fertilizer.

 

Gross Profit : We generated a gross profit of $328,624 for the three months ended March 31, 2012, a decrease of $216,836 or 39.8%, compared to $545,460 for the three months ended March 31, 2011.  Gross margin (gross profit as a percentage of revenue), was 30.4% for the three months ended March 31, 2012, compared to 53.2% for the three months ended March 31, 2011.  The decrease in the gross margin percentage was primarily attributable to increase in the price of the raw materials needed for our products as well as an increase in our labour costs.

 

Selling Expenses : Aggregated selling expenses accounted for $501,628 of our operating expenses for the three months ended March 31, 2012, a decrease of $182,269 or 26.7%, compared to $683,897 for the three months ended March 31, 2011.  The decrease in our aggregated selling expense is primarily attributable to a decrease in advertising expenses in China of approximately $200,000 during the three months ended March 31, 2012 compared to the three months ended March 31, 2011.

 

General and Administrative Expenses : General and administrative expenses accounted for $818,609 of our operating expenses for the three months ended March 31, 2012, an increase of $301,999 or 58.5%, compared to $516,610 for the three months ended March 31, 2011.  The increase is principally due to:

 

i. an increase in our provision for bad debt expenses of approximately $150,000 (due to the Company's strengthening its control  policy over credits extended to customers) during the three months ended March 31, 2012 compared to the three months ended March 31, 2011;

 

ii. an increase in lease expense of approximately $37,000 for the three months ended March 31, 2012 compared to March 31, 2011.

 

Non Operating Income and Expenses : We had total non-operating expenses of $8,453 for the three months ended March 31, 2012 a change of $5,235 compared to $13,688 for the three months ended March 31, 2011.  The decrease is principally due to:

 

i. a decrease in interest income of approximately $29,000 (due to fully repaid of note receivable in January 2012) during the three months ended March 31, 2012 compared to the three months ended March 31, 2011;

 

ii. a decrease in interest expense of approximately $24,000 (due to fully settlement of bank loan in January 2012) during the three months ended March 31, 2012 compared to the three months ended March 31, 2011.

 


Liquidity and Capital Resources

 

We are primarily a parent holding company for the operations carried out by our 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, 2012, we had $382,022 of cash compared to $935,375 as of December 31, 2011.

 

Cash Flows

 

Operating : We used $472,517 of cash for operating activities for the three months ended March 31, 2012 compared to $1,952,514 of cash used in operating activities for the three months ended March 31, 2011.  The cash used in operating consisted of a net loss of $983,160 offset by non cash expenses of depreciation and amortization of $425,281 and bad debt expense of $143,803.  As a result of collection of accounts receivable the company received $ 1,938,738 in cash.  In preparation for greater sales, we increased inventory by $928,359.  Deferred revenues and were paid down resulting in a decrease in cash of $190,390.

 

Investing : Our investing activities provided $1,339,008 of cash for the three months ended March 31, 2012, representing the addition of property and equipment of $8,242 and proceeds from note receivable of $1,347,250, compared to cash used in investing activities of $525 for the three months ended March 31, 2011 representing the addition of property and equipment.

 

Financing . Our financing activities used $1,426,500 of cash as a result of the repayment of a note payable for the three months ended March 31, 2012 compared to $0 provided by financing activities for the three months ended March 31, 2011.

 

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, 2012 AND 2011

 

 

 

Three Months Ended March 31,

 

 

2012

 

2011

 

 

 

 

(unaudited)

 

 

 

 

 

Revenue

$

1,080,966

$

1,024,677

 

 

 

 

 

Cost of Revenue

 

752,342

 

479,217

 

 

 

 

 

Gross profit

 

328,624

 

545,460

 

 

 

 

 

Operating expenses

 

501,628

 

 

Selling expenses

 

818,609

 

683,897

General and administrative expenses

 

1,320,237

 

516,610

Total operating expenses

 

 

 

1,200,507

 

 

(991,613

 

 

Loss from operations

 

 

 

(655,047)

 

 

 

 

 

Non-operating income/(expense):

 

 

 

 

Other income/(expense)

 

(612)

 

(229)

Interest income

 

20,376

 

48,067

Interest expense

 

(11,311)

 

(34,150)

Total non-operating income

 

8,453

 

13,688

 

 

 

 

 

Net loss

 

(983,160)

 

(641,359)

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

Foreign currency translation gain (loss)

 

210,955

 

222,439

Unrealized gain (loss) on marketable equity security

 

2,392,029

 

(4,743,687)

Total other comprehensive income (loss)

 

2,602,984

 

(4,521,248)

Comprehensive income/(loss)

$

1,619,824

$

(5,162,607)

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

Basic

 

21,510,250

 

21,510,250

Diluted

 

21,510,250

 

21,510,250

 

 

 

 

 

Earnings per share:

 

 

 

 

Basic

$

(0.05)

$

(0.03)

Diluted

$

(0.05)

$

(0.03)

 


CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2012 AND DECEMBER 31, 2011

 

 

 

March 31,

 

December 31,

 

 

2012

 

2011

 

 

(unaudited)

 

(audited)

ASSETS

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

Cash

$

382,022

$

935,375

Accounts receivable and other receivable, net of allowance for doubtful accounts of $303,013 and $158,384

 

1,785,047 

 

3,840,546

Other receivables

 

4,178

 

19,215

Note receivable

 

79,150

 

1,415,700

Inventory

 

3,090,113

 

2,149,262

Advances to suppliers

 

695,956

 

498,960

Prepaid expense and other current assets

 

653,441

 

6,944

 

 

 

 

 

Total current assets

 

6,689,907 

 

8,866,002 

 

 

 

 

 

PROPERTY AND EQUIPMENT, net

 

21,754,616

 

22,003,784

MARKETABLE SECURITY, AVAILABLE-FOR-SALE

 

3,603,183

 

1,211,154

INTANGIBLE ASSETS, net

 

4,856,109

 

4,852,720

 

 

 

 

 

TOTAL ASSETS

$

36,903,815

$

36,933,660

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Accounts payable

$

683,589

$

702,253

Accrued expenses

 

52,744

 

81,437

Deferred revenue

 

369,837

 

556,449

Bank loan

 

-

 

1,415,700

 

 

 

 

 

Total current liabilities

 

1,106,170

 

2,755,839

 

 

 

 

 

Long-term bank loan

 

-

 

-

 

 

 

 

 

TOTAL LIABILITIES

 

1,106,170

 

2,755,839

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

Preferred stock, $0.0001 per share; authorized 5,000,000 shares; nil issued and outstanding

 

 

-

Common stock, $0.0001 per share; 30,000,000 shares authorized 21,510,250 and 21,510,250 shares issued and outstanding

 

2,151

 

2,151

Additional paid-in capital

 

35,345,542

 

35,345,542

Accumulated other comprehensive income

 

11,479,028

 

8,876,044

Statutory reserve

 

4,314,488

 

4,314,488

Retained Earnings

 

(15,343,564)

 

(14,360,404)

Total stockholders' equity

 

35,797,645

 

34,177,821

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

36,903,815

$

36,933,660