x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the quarterly period ended
|
September 30,
2009
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Commission
File Number:
|
000-26059
|
CHINA
SKY ONE MEDICAL, INC.
|
(Exact
Name of Registrant as Specified in Its
Charter)
|
Nevada
|
87-0430322
|
|
(State
or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S.
Employer Identification No.)
|
Room
1706, Di Wang Building, No. 30 Gan Shui Road,
|
||
Nangang
District, Harbin, People’s Republic of China
|
150001
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
86-451-53994069
(China)
|
(Registrant’s
Telephone Number, Including Area Code)
|
(Former
Name, Former Address and Former Fiscal Year, if Changed Since Last
Report)
|
Large
accelerated filer ¨
|
Accelerated
filer ¨
|
Non-accelerated
filer ¨
(Do
not check if a smaller reporting company)
|
Smaller
reporting company x
|
PAGE
|
|||||
PART I
|
-
|
FINANCIAL
INFORMATION
|
|||
Item
1.
|
Financial
Statements
|
||||
Condensed
Consolidated Balance Sheets as of September 30, 2009 (unaudited) and
December 31, 2008
|
1
|
||||
Condensed
Consolidated Statements of Operations and Comprehensive Income for the
Three and Nine Months Ended September 30, 2009 and 2008
(unaudited)
|
2
|
||||
Condensed
Consolidated Statements of Cash Flows for the Nine Months Ended
September 30, 2009 and 2008 (unaudited)
|
3
|
||||
Notes
to Condensed Consolidated Financial Statements (unaudited)
|
4
|
||||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
24
|
|||
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
36
|
|||
Item
4.
|
Controls
and Procedures
|
36
|
|||
PART II
|
-
|
OTHER
INFORMATION
|
|||
Item
1.
|
Legal
Proceedings
|
37
|
|||
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
37
|
|||
Item
3.
|
Defaults
Upon Senior Securities
|
37
|
|||
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
37
|
|||
Item
5.
|
Other
Information
|
38
|
|||
Item
6.
|
Exhibits
|
38
|
|||
Signatures
|
39
|
September
30,
|
December 31,
|
|||||||
2009
|
2008
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
ASSETS
|
||||||||
Current
Assets
|
||||||||
Cash
and cash equivalents
|
$ | 56,303,043 | $ | 40,288,116 | ||||
Accounts
receivable, net
|
23,670,142 | 14,978,648 | ||||||
Inventories
|
3,099,451 | 462,351 | ||||||
Prepaid
and other current assets
|
132,372 | 106,386 | ||||||
Land
and construction deposit
|
8,533,952 | 8,513,284 | ||||||
Total
current assets
|
91,738,960 | 64,348,785 | ||||||
Property
and equipment, net
|
30,429,508 | 21,058,779 | ||||||
Intangible
assets, net
|
14,872,618 | 15,851,765 | ||||||
$ | 137,041,086 | $ | 101,259,329 | |||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
Liabilities
|
||||||||
Accounts
payable and accrued expenses
|
$ | 6,911,404 | $ | 2,937,068 | ||||
Taxes
payable
|
5,763,146 | 3,362,888 | ||||||
Deferred
revenues
|
- | 26,079 | ||||||
Total
current liabilities
|
12,674,550 | 6,326,035 | ||||||
Commitments
and Contingencies
|
- | - | ||||||
Stockholders'
Equity
|
||||||||
Preferred
stock ($0.001 par value, 5,000,000 shares authorized, none issued and
outstanding)
|
- | - | ||||||
Common
stock ($0.001 par value, 50,000,000 shares authorized, 16,661,423 and
16,306,184 issued and outstanding, respectively)
|
16,661 | 16,306 | ||||||
Additional
paid-in capital
|
40,133,948 | 40,105,134 | ||||||
Accumulated
other comprehensive income
|
5,812,108 | 5,566,806 | ||||||
Retained
earnings
|
78,403,819 | 49,245,048 | ||||||
Total
stockholders' equity
|
124,366,536 | 94,933,294 | ||||||
$ | 137,041,086 | $ | 101,259,329 |
Three Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Revenues
|
$ | 43,227,171 | $ | 29,699,282 | $ | 100,242,453 | $ | 65,861,304 | ||||||||
Cost
of Goods Sold
|
10,897,185 | 7,366,059 | 24,690,474 | 15,748,801 | ||||||||||||
Gross
Profit
|
32,329,986 | 22,333,223 | 75,551,979 | 50,112,503 | ||||||||||||
Operating
Expenses
|
||||||||||||||||
Depreciation
and amortization
|
447,170 | 308,023 | 1,347,836 | 523,375 | ||||||||||||
Research
and development
|
4,884,925 | 1,866,409 | 10,979,619 | 3,881,312 | ||||||||||||
Selling,
general and administrative
|
10,967,649 | 7,596,953 | 26,061,465 | 18,140,807 | ||||||||||||
Total
operating expenses
|
16,299,744 | 9,771,385 | 38,388,920 | 22,545,494 | ||||||||||||
Other
Income (Expense)
|
||||||||||||||||
Other
(expense)
|
(483 | ) | - | (1,611 | ) | - | ||||||||||
Interest
income (expense)
|
20,900 | (1,494 | ) | 47,854 | (135,136 | ) | ||||||||||
Total
other income (expense)
|
20,417 | (1,494 | ) | 46,243 | (135,136 | ) | ||||||||||
Net
Income Before Provision for Income Tax
|
16,050,659 | 12,560,344 | 37,209,302 | 27,431,873 | ||||||||||||
Provision
for Income Taxes
|
||||||||||||||||
Current
|
3,591,719 | 2,616,909 | 8,050,531 | 5,512,860 | ||||||||||||
Net
Income
|
$ | 12,458,940 | $ | 9,943,435 | $ | 29,158,771 | $ | 21,919,013 | ||||||||
Basic
Earnings Per Share
|
$ | 0.75 | $ | 0.64 | $ | 1.76 | $ | 1.50 | ||||||||
Basic
Weighted Average Shares Outstanding
|
16,655,697 | 15,464,084 | 16,535,924 | 14,657,059 | ||||||||||||
Diluted
Earnings Per Share
|
$ | 0.74 | $ | 0.60 | $ | 1.76 | $ | 1.39 | ||||||||
Diluted
Weighted Average Shares Outstanding
|
16,741,745 | 16,492,414 | 16,606,576 | 15,745,542 | ||||||||||||
Comprehensive
Income
|
||||||||||||||||
Net
Income
|
$ | 12,458,940 | $ | 9,943,435 | $ | 29,158,771 | $ | 21,919,013 | ||||||||
Foreign
currency translation adjustment
|
121,913 | 441,809 | 245,302 | 3,597,598 | ||||||||||||
Comprehensive
Income
|
$ | 12,580,853 | $ | 10,385,244 | $ | 29,404,073 | $ | 25,516,611 |
Nine Months Ended September 30,
|
||||||||
2009
|
2008
|
|||||||
Cash
flows from operating activities
|
|
|
||||||
Net
Income
|
$ | 29,158,771 | $ | 21,919,013 | ||||
Adjustments
to reconcile net cash provided by operating activities:
|
||||||||
Depreciation
and amortization
|
1,752,927 | 523,375 | ||||||
Share-based
compensation expense
|
- | 30,351 | ||||||
Net
change in assets and liabilities
|
||||||||
Accounts
receivables
|
( 8,659,683 | ) | 1,618,365 | |||||
Inventories
|
( 2,634,086 | ) | ( 1,431,757 | ) | ||||
Prepaid
expenses and other current assets
|
( 14,948 | ) | ( 10,763 | ) | ||||
Accounts
payable and accrued expenses
|
3,938,248 | 1,589,409 | ||||||
Taxes
payable
|
2,390,378 | 2,475,042 | ||||||
Deferred
revenues
|
- | ( 24,504 | ) | |||||
Net
cash provided by operating activities
|
25,931,607 | 26,688,531 | ||||||
Cash
flows from investing activities
|
||||||||
Purchase
of fixed assets
|
( 122,093 | ) | ( 784,137 | ) | ||||
Purchase
of subsidiary-Tianlong and Haina
|
- | ( 10,917,280 | ) | |||||
Purchase
of construction in progress
|
( 9,926,849 | ) | - | |||||
Purchase
of intangible assets
|
- | ( 7,139 | ) | |||||
Net
cash used in investing activities
|
( 10,048,942 | ) | ( 11,708,556 | ) | ||||
Cash
flows from financing activities
|
||||||||
Sale
of common stock for cash, net of offering costs
|
- | 23,487,963 | ||||||
Proceeds
from warrants conversion
|
29,169 | 1,044,169 | ||||||
Net
cash provided by financing activities
|
29,169 | 24,532,132 | ||||||
Effect
of exchange rate changes on cash
|
103,091 | 2,245,553 | ||||||
Net
increase in cash and cash equivalents
|
16,014,926 | 41,757,660 | ||||||
Cash
and cash equivalents at beginning of period
|
40,288,117 | 9,190,870 | ||||||
Cash
and cash equivalents at end of period
|
$ | 56,303,043 | $ | 50,948,530 | ||||
Supplemental
disclosure of cash flow information
|
||||||||
Interest
paid
|
$ | - | $ | 135,136 | ||||
Taxes
paid
|
$ | 6,569,901 | $ | 5,512,860 |
On
April 3, 2008, the Company acquired a 100% ownership interest in
Heilongjiang Tianlong Pharmaceutical. Approximate net assets acquired
(see
note 2) consisted of the following:
|
||||
Fixed
assets
|
$
|
6,314,871
|
||
Intangible
assets
|
1,786,990
|
|||
Other
|
170,000
|
|||
Net
assets acquired
|
$
|
8,271,861
|
||
On
April 18, 2008, the Company acquired Heilongjiang Haina ("Haina")
Pharmaceutical Inc. Approximate net assets acquired (see note 2) consisted
of the following:
|
||||
|
||||
Intangible
assets
|
$
|
437,375
|
||
On
September 5, 2008, the Company acquired a 100% ownership interest in Peng
Lai Jin Chuang Company. Approximate net assets acquired (see note 2)
consisted of the following:
|
||||
Fixed
assets
|
$
|
4,176,922
|
||
Intangible
assets
|
2,917,386
|
|||
Net
assets acquired
|
$
|
7,094,308
|
1.
|
Description
of Business
|
2.
|
Acquisition
of Businesses
|
Fixed
assets
|
$ | 6,314,871 | ||
Intangible
assets
|
1,786,990 | |||
Other
|
170,000 | |||
Net
assets acquired
|
$ | 8,271,861 |
Intangible
assets
|
$ | 437,375 |
Fixed
assets
|
$ | 4,176,922 | ||
Intangible
assets
|
2,917,386 | |||
Net
assets acquired
|
$ | 7,094,308 |
3.
|
Summary
of Significant Accounting Policies
|
3.
|
Summary
of Significant Accounting Policies
(Continued)
|
Building
and Improvements
|
30
years
|
|
Land
use rights
|
50
years
|
|
Furniture
& Equipment
|
5
to 7 years
|
|
Transportation
Equipment
|
5
to 15 years
|
|
Machinery
and Equipment
|
7
to 14 years
|
Patents
|
$ | 14,112,631 | ||
Goodwill
|
759,987 | |||
Total
|
$ | 14,872,618 |
3.
|
Summary
of Significant Accounting Policies
(Continued)
|
3.
|
Summary
of Significant Accounting Policies
(Continued)
|
3.
|
Summary
of Significant Accounting Policies
(Continued)
|
3.
|
Summary
of Significant Accounting Policies
(Continued)
|
4.
|
Concentrations
of Business and Credit Risk
|
4.
|
Concentrations
of Business and Credit Risk
(Continued)
|
5.
|
Earnings
per Share
|
For
the three months ended September 30,
|
||||||||
2009
|
2008
|
|||||||
Numerator:
|
||||||||
Net
income used in calculation of basic and diluted earnings per
share
|
$ | 12,458,940 | $ | 9,943,435 | ||||
Denominator:
|
||||||||
Weighted-average
common shares outstanding used in calculation of basic earnings per
share
|
16,655,697 | 15,464,084 | ||||||
Effect
of dilutive securities:
|
||||||||
Stock
options and equivalents
|
86,048 | 1,028,330 | ||||||
Weighted-average
common shares used in calculation of diluted earnings (loss) per
share
|
16,741,745 | 16,492,414 | ||||||
Net
income per share:
|
||||||||
Basic
|
$ | 0.75 | $ | 0.64 | ||||
Diluted
|
$ | 0.74 | $ | 0.60 |
5.
|
Earnings
per Share (Continued)
|
For
the nine months ended September 30,
|
||||||||
2009
|
2008
|
|||||||
Numerator:
|
||||||||
Net
income used in calculation of basic and diluted earnings per
share
|
$ | 29,158,771 | $ | 21,919,013 | ||||
Denominator:
|
||||||||
Weighted-average
common shares outstanding used in calculation of basic earnings per
share
|
16,535,924 | 14,657,059 | ||||||
Effect
of dilutive securities:
|
||||||||
Stock
options and equivalents
|
70,652 | 1,088,483 | ||||||
Weighted-average
common shares used in calculation of diluted earnings (loss) per
share
|
16,606,576 | 15,745,542 | ||||||
Net
income per share:
|
||||||||
Basic
|
$ | 1.76 | $ | 1.50 | ||||
Diluted
|
$ | 1.76 | $ | 1.39 |
6.
|
Equity
and Share-based Compensation
|
7.
|
Securities
Purchase Agreement and Related
Transaction
|
8.
|
Outstanding
Warrants and Options
|
Shares
Underlying
Warrants
|
Weighted
average
Exercise
Price
Warrants
|
Shares
underlying
Options
|
Weighted
average
Exercise
Price
Options
|
|||||||||||||
Outstanding
as of January 1, 2006
|
25,000 | $ | 1.50 | - | ||||||||||||
Granted
|
1,650,000 | 2.58 | 163,500 | $ | 3.45 | |||||||||||
Exercised
|
- | - | - | - | ||||||||||||
Expired
or cancelled
|
- | - | - | - | ||||||||||||
Outstanding
as of December 31, 2006
|
1,675,000 | 2.57 | 163,500 | $ | 3.45 | |||||||||||
Granted
|
- | - | - | - | ||||||||||||
Exercised
|
- | - | - | - | ||||||||||||
Expired
or cancelled
|
(161,667 | ) | 3.19 | - | - | |||||||||||
Outstanding
as of December 31, 2007
|
1,513,333 | $ | 2.48 | 163,500 | $ | 3.45 | ||||||||||
Granted
|
750,000 | 12.50 | - | - | ||||||||||||
Exercised
|
(1,204,999 | ) | (50,000 | ) | - | |||||||||||
Expired
or cancelled
|
- | - | - | - | ||||||||||||
Outstanding
as of December 31, 2008
|
1,058,334 | $ | 9.50 | 113,500 | $ | 3.65 | ||||||||||
Granted
|
- | - | - | - | ||||||||||||
Exercised
|
(308,334 | ) | (113,500 | ) | ||||||||||||
Expired
or cancelled
|
- | - | - | - | ||||||||||||
Outstanding
as of September 30, 2009
|
750,000 | $ | 12.50 | - | $ | - |
Exercise
Price
|
Outstanding
September
30,
2009
|
Weighted
Average
Remaining
Life
in
Years
|
Number
exercisable
|
|||||||||||
$ | 12.50 | 750,000 | 1.75 | 750,000 | ||||||||||
750,000 | 750,000 |
|
·
|
The
Class A Warrants were exercisable beginning on the six-month anniversary
of the closing of the January 2008 Offering and will expire July 31,
2011.
|
8.
|
Outstanding
Warrants and Options (Continued)
|
|
·
|
Commencing
on the one-year anniversary of the Closing Date, in the event the shares
underlying the Class A Warrants (the “Warrant Shares”) may not be freely
sold by the holders of the Class A Warrants due to the Company’s failure
to satisfy its registration requirements, and an exemption for such sale
is not otherwise available to the warrant holders under Rule 144, the
Class A Warrants will be exercisable on a cashless
basis.
|
|
·
|
The
Exercise Price and number of Warrant Shares will be subject to adjustment
for standard dilutive events, including the issuance of common stock, or
securities convertible into or exercisable for shares of common stock, at
a price per share, or conversion or exercise price per share less than the
Class A Warrant exercise price of $12.50 per
share.
|
|
·
|
At
anytime following the date a Registration Statement covering the Warrant
Shares is declared effective, the Company will have the ability to call
the Class A Warrants at a price of $0.01 per Class A Warrant, upon thirty
(30) days prior written notice to the holders of the Class A Warrants,
provided (i) the closing price of the Common stock exceeded $18.75 for
each of the ten (10) consecutive trading days immediately preceding the
date that the call notice is given by the Company, and (ii) the Company
has attained an adjusted earnings per share of at least $1.75 per share
for the fiscal year ending December 31, 2008, as set forth in our audited
financial statements of the
Company.
|
|
·
|
If,
among other things, the Company fails to cause a Registration Statement
covering the Warrant Shares to be declared effective prior to the
applicable dates set forth in the Registration Rights Agreement, the
expiration date of the Class A Warrants shall be extended one day for each
day the registration default continues. To date, the Company has not
satisfied its registration requirements. The Company retained an
independent third party to calculate the changes in fair value of the
Class A Warrants due to its failure to register the Warrant Shares. The
change in fair value for the nine months ended September 30, 2009 was
deemed immaterial.
|
9.
|
Inventories
|
9.
|
Inventories
(Continued)
|
September
30,
|
December
31,
|
|||||||
2009
|
2008
(Audited)
|
|||||||
Raw
Material
|
$ | 1,486,072 | $ | 330,275 | ||||
Work-in-Process
|
611,920 | 76,462 | ||||||
Finished
Products
|
1,001,459 | 55,614 | ||||||
Total
Inventories
|
$ | 3,099,451 | $ | 462,351 |
10.
|
Property
and Equipment
|
September
30,
|
December
31,
|
|||||||
2009
|
2008
(Audited)
|
|||||||
Buildings
and improvements
|
$ | 9,560,041 | 9,961,820 | |||||
Machinery
and equipment
|
5,484,426 | 4,946,247 | ||||||
Land
use rights
|
1,906,916 | 1,945,209 | ||||||
Transportation
equipment
|
888,031 | 885,880 | ||||||
Furniture
and equipment
|
322,168 | 299,467 | ||||||
Construction
in progress (See Note 14)
|
14,261,723 | 4,317,265 | ||||||
Total
Property and Equipment
|
32,423,305 | 22,355,888 | ||||||
Less:
Accumulated Depreciation
|
(1,993,797 | ) | (1,297,109 | ) | ||||
Property
and Equipment, Net
|
$ | 30,429,508 | $ | 21,058,779 |
11.
|
Intangible
Assets
|
September 30,
|
December 31,
|
|||||||
2009
|
2008 (Audited)
|
|||||||
Patents
|
$ | 14,112,631 | $ | 15,093,718 | ||||
Goodwill
|
759,987 | 758,047 | ||||||
Total
Intangible Assets, net
|
$ | 14,872,618 | $ | 15,851,765 |
12.
|
Taxes
Payable
|
September
30,
2009
|
December
31,
2008
(Audited)
|
|||||||
Value
Added Tax, net
|
$ | 1,980,827 | $ | 1,179,383 | ||||
Enterprise
Income Tax
|
3,593,829 | 2,106,956 | ||||||
City
Tax
|
80,056 | 32,013 | ||||||
Other
Taxes and additions
|
108,434 | 44,536 | ||||||
Total
Taxes Payable
|
$ | 5,763,146 | $ | 3,362,888 |
13.
|
Income
Taxes
|
13.
|
Income
Taxes (Continued)
|
14.
|
Land
Use Rights Purchase Agreement and Construction in
Progress
|
14.
|
Land
Use Rights Purchase Agreement and Construction in
Progress
|
(1)
|
Construction
of a main workshop, R&D center and our principle corporate office
using land area of 30,000 square meters. Construction started in May 2007
and is estimated to be completed by the end of
2009.
|
(2)
|
Construction
of second workshop and show room using land area of 20,000 square meters.
Construction is expected to start in September 2008 and is estimated to be
completed by December 2009.
|
15.
|
Commitments
and Contingencies
|
16.
|
Revenues
by Product Line
|
For the Three Months Ended September 30
|
|||||||||||||||||||
2009
|
2008
|
||||||||||||||||||
Product
(Number of
Product)
|
Subsidiary
|
Sales
(USD)
|
% of Sales
|
Product
(Number of
Product)
|
Sales
(USD)
|
% of Sales
|
|||||||||||||
Patch
(5)
|
TDR
|
$ | 11,783,217 | 27.3 |
Patch (4)
|
$ | 12,923,972 | 43.6 | |||||||||||
Ointment
(18)
|
TDR,
Tianlong and Peng Lai
|
10,823,036 | 25 |
Ointment
(16)
|
7,842,089 | 26.4 | |||||||||||||
Spray
(15)
|
TDR
and Tianlong
|
6,775,336 | 15.6 |
Spray
(15)
|
3,178,237 | 10.7 | |||||||||||||
Bio-Engineering
(3)
|
FIRST
|
2,622,515 | 6.1 |
Bio-Engineering
(3)
|
2,415,360 | 8.1 | |||||||||||||
Others
(48)
|
TDR,
Tianlong and Peng Lai
|
11,223,067 | 26.0 |
Others
(35)
|
3,339,624 | 11.2 | |||||||||||||
Total
(89 products)
|
$ | 43,227,171 | 100 |
Total
(73 products)
|
$ | 29,699,282 | 100 |
16.
|
Revenues
by Product Line (Continued)
|
For the Nine Months Ended September 30
|
|||||||||||||||||||
2009
|
2008
|
||||||||||||||||||
Product
(Number of
Product)
|
Subsidiary
|
Sales
(USD)
|
% of
Sales
|
Product
(Number of
Product)
|
Sales
(USD)
|
% of
Sales
|
|||||||||||||
Patch
(5)
|
TDR
|
$ | 30,842,381 | 30.8 |
Patch (4)
|
$ | 25,497,334 | 38.7 | |||||||||||
Ointment
(18)
|
TDR
and Tianlong
|
23,563,160 | 23.5 |
Ointment
(16)
|
17,230,711 | 26.2 | |||||||||||||
Spray
(15)
|
TDR
and Tianlong
|
14,486,062 | 14.4 |
Spray
(15)
|
8,056,295 | 12.2 | |||||||||||||
Bio-Engineering
(3)
|
FIRST
|
9,411,281 | 9.4 |
Bio-Engineering
(3)
|
6,398,220 | 9.7 | |||||||||||||
Other
(48)
|
TDR,
Tianlong and Peng Lai
|
21,939,569 | 21.9 |
Other
(35)
|
8,678,744 | 13.2 | |||||||||||||
Total
(89 products)
|
$ | 100,242,453 | 100 |
Total
(73 products)
|
$ | 65,861,308 | 100 |
·
|
the
development of an enzyme linked immune technique to prepare extraneous
diagnostic kits;
|
·
|
the
development of an enzyme linked gold colloid technique to prepare
extraneous rapid diagnostic test
strip;
|
·
|
the
development of a gene recombination technique to prepare gene
drug;
|
·
|
the
development of a biology protein chip for various tumor diagnostic
applications; and
|
·
|
the
development of a cord blood stem cell bank, as more fully described in
other reports we filed.
|
For Three Months Ended September 30
|
|||||||||||
2009
|
% of Sales
|
2008
|
% of Sales
|
||||||||
Revenues
|
$
|
43,227,171
|
100.0
|
$
|
29,699,282
|
100.0
|
|||||
Cost
of goods sold
|
10,897,185
|
25.2
|
7,366,059
|
24.8
|
|||||||
Gross
Profit
|
$
|
32,329,986
|
74.8
|
$
|
22,333,223
|
75.2
|
For the Three Months Ended September 30
|
|||||||||||||||||||
2009
|
2008
|
||||||||||||||||||
Product
(Number of
Product)
|
Subsidiary
|
Sales
(USD)
|
% of Sales
|
Product
(Number of
Product)
|
Sales
(USD)
|
% of Sales
|
|||||||||||||
Patch
(5)
|
TDR
|
$ | 11,783,217 | 27.3 |
Patch (4)
|
$ | 12,923,972 | 43.6 | |||||||||||
Ointment
(18)
|
TDR
and Tianlong
|
10,823,036 | 25 |
Ointment
(16)
|
7,842,089 | 26.4 | |||||||||||||
Spray
(15)
|
TDR
and Tianlong
|
6,775,336 | 15.6 |
Spray
(15)
|
3,178,237 | 10.7 | |||||||||||||
Bio-Engineering
(3)
|
FIRST
|
2,622,515 | 6.1 |
Bio-Engineering
(3)
|
2,415,360 | 8.1 | |||||||||||||
Others
(48)
|
TDR,
Tianlong and Peng Lai
|
11,223,067 | 26.0 |
Others
(35)
|
3,339,624 | 11.2 | |||||||||||||
Total
(89 products)
|
$ | 43,227,171 | 100 |
Total
(73 products)
|
$ | 29,699,282 | 100 |
For
the Three Month Ended September 30
|
|||||||||||
2009
|
%
of Sales
|
2008
|
%
of Sales
|
||||||||
Operating
Expenses
|
|||||||||||
Depreciation
and amortization
|
$
|
447,170
|
1.0
|
$
|
308,023
|
1.0
|
|||||
Research
and development
|
4,884,925
|
11.3
|
1,866,409
|
6.3
|
|||||||
Selling,
general and administrative
|
10,967,649
|
25.4
|
7,596,953
|
25.6
|
|||||||
Total
operating expenses
|
$
|
16,299,744
|
37.7
|
$
|
9,771,385
|
32.9
|
For the Nine Months Ended September 30
|
|||||||||||
2009
|
% of Sales
|
2008
|
% of Sales
|
||||||||
Revenues
|
$
|
100,242,453
|
100.0
|
$
|
65,861,304
|
100.0
|
|||||
Cost
of goods sold
|
24,690,474
|
24.6
|
15,748,801
|
23.9
|
|||||||
Gross
Profit
|
$
|
75,551,979
|
75.4
|
$
|
50,112,503
|
76.1
|
For the Nine Months Ended September 30
|
|||||||||||||||||||
2009
|
2008
|
||||||||||||||||||
Product
(Number of
Product)
|
Subsidiary
|
Sales
(USD)
|
% of
Sales
|
Product
(Number of
Product)
|
Sales
(USD)
|
% of
Sales
|
|||||||||||||
Patch
(5)
|
TDR
|
$ | 30,842,381 | 30.8 |
Patch (4)
|
$ | 25,497,334 | 38.7 | |||||||||||
Ointment
(18)
|
TDR
and Tianlong
|
23,563,160 | 23.5 |
Ointment
(16)
|
17,230,711 | 26.2 | |||||||||||||
Spray
(15)
|
TDR
and Tianlong
|
14,486,062 | 14.4 |
Spray
(15)
|
8,056,295 | 12.2 | |||||||||||||
Bio-Engineering
(3)
|
FIRST
|
9,411,281 |