EX-99.1 2 f8k101514ex99i_tianyinpharma.htm PRESS RELEASE

Exhibit 99.1

Tianyin Pharmaceutical Provides Update on Filing of Form 10-K for Fiscal Year Ended June 30, 2014

CHENGDU, China, Oct. 15, 2014 /PRNewswire/ -- Tianyin Pharmaceutical Inc. (NYSE MKT: TPI, the "Company"), a pharmaceutical company that specializes in the development and sale of patented biopharmaceutical medicine, modernized traditional Chinese medicine (TCM), branded generics and active pharmaceutical ingredients (API), today reported that it has delayed the filing of its Annual Report on Form 10-K for the year ended June 30, 2014 ("2014 Form 10-K") beyond the extended filing due date of October 14, 2014. As TPI indicated in its Current Reports on Form 8-K filed on October 8, 2013 and November 4, 2013, its Audit Committee and the Board of Directors both unanimously approved the termination of the Company's independent auditor, Patrizio and Zhao LLC ("P&Z"), due to the fact that P&Z agreed to a cease-and-desist order and prohibition from practicing before the Securities and Exchange Commission (the "SEC") on September 30, 2013; on November 4, 2013, TPI signed an Engagement Letter with Paritz & Company, P.A. ("Paritz") to engage Paritz as the independent accountants to audit its financial statements for the years ended June 30, 2014 and 2013. Accordingly, the Company was required by the SEC to have the financial statements for the year ended June 30, 2013 reaudited as a result of the cease-and-desist order and prohibition from practicing before the SEC in connection with its prior auditor.

Currently the Company is working diligently with the auditor to finish the audit and complete the 2014 10-K, and expect to file the 2014 Form 10-K within two weeks.

Under NYSE MKT rules, until the Company files its Form 10-K, its common stock will remain listed on the NYSE MKT under the symbol "TPI," but will be assigned an ".LF" indicator to signify late filing status.

Although the Company is working diligently to complete the 2014 Form 10-K and currently expects to complete and file the 2014 Form 10-K within two weeks of its due date, no assurance can be given that the 2014 Form 10-K will be filed within such period.

About TPI

Headquartered at Chengdu, China, TPI is a pharmaceutical company that specializes in the development, manufacturing, marketing and sales of patented biopharmaceutical, modernized traditional Chinese medicines, branded generics and active pharmaceutical ingredients (API). TPI currently manufactures a comprehensive portfolio of 58 products, 24 of which are listed in the highly selective national medicine reimbursement list, 10 are included in the essential drug list of China. TPI's pipeline targets various high incidence healthcare indications. For more information about TPI, please visit: http://www.tianyinpharma.com

Cautionary Statement Regarding Forward-Looking Statements

The forward-looking statements made in this press release and its attachments concerning, among other things, Tianyin Pharmaceutical Inc.'s expected financial performance and outlook, its strategic operational plans and growth strategy are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and the Company's actual results could differ materially from the results expressed or implied by such forward-looking statements. Furthermore, reported results should not be considered as an indication of future performance. The potential risks, uncertainties and other factors include, but are not limited to, changes to the Company's previously reported financial information as a result of the aforementioned re-audit and the risk that the Company will not be able to file the 2014 Form 10-K within 90 days of its due date. More information regarding these and other risks, uncertainties and factors is contained in the Company's filings with the Securities and Exchange Commission ("SEC") which are available on the SEC's website at www.sec.gov or the Company's website at http://www.tianyinpharma.com. You are cautioned not to unduly rely on these forward-looking statements, which speak only as of the date of this press release. All information in this press release and its attachments is as of October 15, 2014 and, unless required by law, the Company undertakes no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this press release or to report the occurrence of unanticipated events.

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For more information, please visit: http://www.tianyinpharma.com, or email: ir@tpi.asia

Tel: +86-28-8551-6696 (Chengdu, China)

Address: 
Tianyin Pharmaceutical Inc.
23rd Floor, Unionsun Yangkuo Plaza   
No. 2, Block 3, South Renmin Road
Chengdu, 610041
China

Below is our preliminary financial information as of June 30, 2014:

Cash: $16.1 million
Total Assets: $107.1 million

Total Liabilities: $9.0 million
Equity: $98.1 million

Revenues:  $46.6 million
Net Income/Net Loss: $0.4 million

Attached herein are our preliminary Consolidated Balance Sheet, Consolidated Statements of Operations, Consolidated Statements of Cash Flow, and Statements of Stockholders' Equity. Changes and adjustments may be made to the preliminary financial information contained in this press release as the Company is completing and finalizing the audit of the above-mentioned periods. 

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TIANYIN PHARMACEUTICAL CO., INC
Consolidated Balance Sheets

 

   June 30,   June 30, 
   2014   2013 
Assets        
Current assets:        
Cash and cash equivalents  $16,120,041   $26,827,008 
Restricted cash   994,017    4,536,000 
Accounts receivable, net of allowance for doubtful accounts of $102,401 and $102,149 at June 30, 2014 and 2013, respectively   9,074,565    10,112,718 
Inventory   3,921,313    6,036,014 
Advance payments   1,981,291    - 
Prepaid income tax   1,717,387    - 
Other current assets   -    313,320 
Total current assets   33,808,614    47,825,060 
           
Property and equipment, net   45,378,356    40,603,232 
           
Intangibles, net   27,699,733    21,505,012 
           
Goodwill   211,120    210,600 
           
Total assets  $107,097,823   $110,143,904 
           
Liabilities          
Current liabilities:          
Accounts payable and accrued expenses  $1,491,771   $1,352,560 
Accounts payable – construction related   2,238,927    2,723,290 
Short-term bank loans   4,547,200    5,929,200 
Income tax payable   0    701,311 
Other taxes payable   179,610    740,800 
Other current liabilities   522,995    449,062 
Total current liabilities   8,980,503    11,896,223 
           
Total liabilities   8,980,503    11,896,223 
           
Equity          
Stockholders' equity:          
Preferred stock, $0.001 par value, 25,000,000 shares authorized, no shares issued and outstanding at June 30, 2014 and 2013   -    - 
Common stock, $0.001 par value, 50,000,000 shares authorized, 29,546,276 shares issued, 29,432,791 shares outstanding at June 30, 2014 and 29,496,276 shares issued, 29,382,791 shares outstanding at June 30, 2013   29,546    29,496 
Additional paid-in capital   30,189,802    30,134,852 
Treasury stock   (135,925)   (135,925)
Statutory reserve   6,976,412    6,847,315 
Retained earnings   50,569,206    50,967,308 
Accumulated other comprehensive income   10,409,430    10,178,358 
Total stockholders' equity   98,038,471    98,021,404 
           
Noncontrolling interest   78,849    226,277 
           
Total equity   98,117,320    98,247,681 
           
Total liabilities and equity  $107,097,823   $110,143,904 

 

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TIANYIN PHARMACEUTICAL CO., INC
Consolidated Statements of Operations

 

   For the Years Ended
June 30,		 
   2014   2013 
         
Sales  $46,555,021   $67,500,476 
           
Cost of sales   29,146,615    41,496,812 
           
Gross profit   17,408,407    26,003,664 
           
Operating expenses          
Selling expenses   7,800,507    11,442,664 
General and administrative expenses   5,796,448    4,351,592 
Research and development   946,300    894,995 
Total operating expenses   14,543,255    16,689,251 
           
Income from operations   2,865,151    9,314,413 
           
Other income (expenses):          
Interest income   165,533    162,563 
Interest expense   (392,010)   (437,897)
Other expense   (3,070,795)   - 
Total other income (expenses)   (3,297,272)   (275,334)
           
Income (loss) before provision for income tax   (432,121)   9,039,079 
           
Provision for income tax   0    2,423,906 
           
Net income (loss)   (432,121)   6,615,173 
           
Less: Net income (loss) attributable to noncontrolling interest   (163,115)   (56,978)
           
Net income attributable to Tianyin Pharmaceutical Co., Inc.  $(269,005)  $6,672,151 
           
Basic and diluted earnings per share  ($0.01)  $0.23 
           
Weighted average number of common shares outstanding:          
Basic and diluted   29,432,791    29,382,791 

 

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TIANYIN PHARMACEUTICAL CO., INC

Consolidated Statements of Comprehensive Income

 

   For the Years Ended
June 30,		 
   2014   2013 
         
Net income (loss)  ($432,121)  $6,615,173 
           
Other comprehensive income          
Foreign currency translation adjustment   246,759    2,083,061 
           
Total other comprehensive income   246,759    2,083,061 
           
Total Comprehensive income (loss)   (185,362)   8,698,234 
           
Less: Comprehensive income (loss) attributable to the noncontrolling interest   (147,428)   (51,749)
           
Comprehensive income (loss) attributable to          
Tianyin Pharmaceutical Co., Inc.  ($37,934)  $8,749,983 

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TIANYIN PHARMACEUTICAL CO., INC
 Statements of stockholders' equity 

ITEM  Common Stock   Treasury stock   Preferred Stock   Additional Paid in Capital   Statutory Reserve   Retained Earnings   Accumulated other Comprehensive Income   Total Stockholders' Equity   Noncontrolling Interest   Total  Equity 
Balance at Jun 30, 2012   29,446,276   $29,446   $(135,925)   0   $-   $30,104,902   $6,120,143   $45,022,329   $8,100,526   $89,241,421   $278,026   $89,519,447 
Net income                                      6,672,151         6,672,151    (56,978)   6,615,173 
Other comprehensive income:                                                            
Foreign currency translation adjustment                                           2,077,832    2,077,832    5,229    2,083,061 
Comprehensive income                                                8,749,983    (51,749)   8,698,234 
Common shares issued   50,000    50                   29,950                   30,000         30,000 
Statutory reserve                                 727,172    (727,172)        -         - 
Balance at Jun 30, 2013   29,496,276    29,496    (135,925)   0    0    30,134,852    6,847,315    50,967,308    10,178,358    98,021,404    226,277    98,247,681 
Net income                                      (269,005)        (269,005)   (163,115)   (432,120)
Other comprehensive income:                                                            
Foreign currency translation adjustment                                           231,072    231,072    15,687    246,759 
Comprehensive income                                                (37,933)   (147,428)   (185,361)
Common shares issued   50,000    50                   54,950                   55,000         55,000 
Statutory reserve                                 129,097    (129,097)        -         - 
Balance at Jun 30, 2014   29,546,276   $29,546   $(135,925)   0   $-   $30,189,802   $6,976,412   $50,569,206   $10,409,430   $98,038,471   $78,849.00   $98,117,320 

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TIANYIN PHARMACEUTICAL CO., INC.
Consolidated Statements of Cash Flows

 

   For the Years Ended
June 30,		 
   2014   2013 
Cash flows from operating activities:        
Net Income  ($432,121)  $6,615,173 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:          
Depreciation and amortization   2,587,565    2,435,138 
Change in fair value of warrant liability          
Provision for bad debts        (14,004)
Share-based payment   55,000    30,000 
Changes in current assets and current liabilities:          
Accounts receivable   1,065,075    1,400,397 
Inventory   2,133,539    (42,849)
Advance payments   -    645,923 
Other current assets   314,674    130,893 
Accounts payable and accrued expenses   136,123    (264,388)
Accounts payable – construction related   (491,994)   1,935,150 
Trade notes payable        (4,703,775)
Income tax payable   (2,418,061)   (119,146)
Other taxes payable   (564,060)   225,356 
Other current liabilities   72,959    (27,787)
           
Net cash provided by operating activities   2,458,699    8,246,081 
           
Cash flows from investing activities:          
Addition to property and equipment   -    (1,704,154)
Addition of Construction in progress   (6,450,737)   (13,274,213)
Additions to intangible assets – land use right   (6,973,301)   (886,611)
Loans receivable   (1,984,940)   - 
Acquisition of subsidiary   -    (207,285)
           
Net cash used in investing activities   (15,408,978)   (16,072,263)
           
Cash flows from financing activities:          
Restricted cash   3,559,747    (908,865)
Proceeds from short-term bank loans   4,555,600    10,300,470 
Repayments of short-term bank loans   (5,954,820)   (10,523,700)
           
Net cash provided by (used in) financing activities   2,160,527    (1,132,095)
           
Effect of foreign currency translation on cash   82,785    632,990 
           
Net increase in cash and cash equivalents   (10,706,967)   (8,325,287)
           
Cash and cash equivalents – beginning   26,827,008    35,152,295 
           
Cash and cash equivalents – ending  $16,120,041   $26,827,008 
           
Supplemental cash flow disclosure          
           
Cash paid for interest  $391,942   $437,605 
Income tax paid  $2,421,477   $2,583,722 

 

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