10-Q/A

U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Amendment No. 1 to

FORM 10-Q

(Mark One)

☒     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2014

☐     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File Number

Tianyin Pharmaceutical Co., Inc.

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

23rd Floor, Unionsun Yangkuo Plaza

No. 2, Block 3, Renmin Road South

Chengdu, P. R. China, 610041

+86 028 8551 6696

(Address, including zip code, and telephone number,

including area code, of Registrant’s principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒     No ☐

Indicate by check mark whether the registrant is a large accelerate filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☐	Accelerated Filer	☐
Non-accelerated filer	☐ (do not check if a smaller reporting company)	Smaller reporting company	☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934) Yes ☐    No ☒

As of August 20, 2015, there were 29,546,276 shares issued and 29,432,791 shares outstanding.

EXPLANATORY NOTE

We are filing this amendment (“Amended Report”) to Quarterly Report on Form 10-Q for the period ended December 31, 2014 (“Original Report”) of Tianyin Pharmaceutical Co., Inc. (the “Company” or “TPI”) to correct an error in classifying certain assets of the Company due to the contribution of those assets to a joint venture pursuant to an agreement entered into by an operating subsidiary of the Company on October 29, 2014 and subsequent transfers of the controlling stake of the joint venture by the operating subsidiary in April and May 2015 pursuant to certain share transfer agreements entered into in November 2014 and May 2015 respectively, which would have resulted in the Company classifying and recognizing those assets as “Assets Held for Sale” in the unaudited consolidated financial statements included in the Original Report. This Amended Report is being filed to amend the disclosures affected by the corrected classification of the assets contributed to the joint venture and to include disclosures of the joint venture and share transfers. This Amended Report speaks as of the filing date of the Original Report, and it may not reflect events occurring after the filing of the Original Report on March 13, 2015, nor does it modify or update those disclosures presented therein, except with regard to the modifications described in this Explanatory Note. Accordingly, this Amended Report should be read in conjunction with the Original Report and our other reports filed with the Securities and Exchange Commission subsequent to the filing of our Original Report, including any amendments to those filings.

In addition, pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as a result of this Amended Report, the certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002, filed and furnished, respectively, as exhibits to the Original Report have been re-executed and re-filed as of the date of this Amended Report and are included as exhibits hereto.

TABLE OF CONTENTS

	Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Unaudited Consolidated Balance Sheets at December 31, 2014 and June 30, 2014	3
Unaudited Consolidated Statements of Operations for the three and six months ended December 31, 2014 and 2013	4
Unaudited Consolidated Statements of Comprehensive Income for the three and six months ended December 31, 2014 and 2013	5
Unaudited Consolidated Statements of Cash Flows for the six months ended December 31, 2014 and 2013	6
Unaudited Notes to Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis or Plan of Operation	12
Item 3. Quantitative and Qualitative Disclosure About Market Risk	17
Item 4. Controls and Procedures	17
PART II – OTHER INFORMATION	18
Item 1. Legal Proceedings	18
Item 2. Unregistered Sales of Equity Securities And Use Of Proceeds	18
Item 3. Defaults Upon Senior Securities	18
Item 4. Mine Safety Disclosures	18
Item 5. Other Information	18
Item 6. Exhibits	19

2

Tianyin Pharmaceutical Co., Inc.
Consolidated Balance Sheets
(Unaudited)
	December 31,			June 30,
	2014			2014
Assets
Current assets:
Cash and cash equivalents	$	11,619,292		$	16,120,041
Restricted cash		419,139			994,017
Accounts receivable, net of allowance for doubtful accounts of $102,590 and $102,401 at December 31, 2014 and June 30, 2014, respectively		2,273,805			9,074,576
Inventory		6,266,299			3,841,712
Loan receivable		-			1,981,280
Deferred tax assets		994,918			1,180,510
Prepaid Research and Development expenses - current portion		3,525,167			-
Other current assets		885,284			587,384
Total current assets		25,983,904			33,779,520
Property and equipment, net		20,104,121			45,378,356
Intangibles, net		12,854,610			27,699,733
Prepaid Research Development expenses		1,057,550			-
Goodwill		211,510			211,120
Assets held for sale		40,872,697			-
Total assets	$	101,084,392		$	107,068,729
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	298,349		$	1,592,459
Accounts payable – construction related		821,377			2,238,927
Short-term bank loans		2,928,600			4,547,200
Income tax payable		-			35,832
Other taxes payable		61,792			390,490
Other current liabilities		391,104			522,995
Total current liabilities		4,501,222			9,327,903
Total liabilities		4,501,222			9,327,903
Equity
Stockholders’ equity:
Preferred stock, $0.001 par value, 25,000,000 shares authorized, no shares issued and outstanding at December 31, 2014 and June 30, 2014		-			-
Common stock, $0.001 par value, 50,000,000 shares authorized, 29,546,276 shares issued, 29,432,791 shares outstanding at December 31, 2014 and June 30, 2014		29,546			29,546
Additional paid-in capital		27,809,515			30,189,802
Treasury stock, 113,485 shares at cost		(135,925	)		(135,925	)
Statutory reserve		7,148,893			6,976,412
Retained earnings		51,132,786			50,193,258
Accumulated other comprehensive income		10,598,355			10,423,712
Total stockholders’ equity		96,583,170			97,676,805
Noncontrolling interest		-			64,021
Total equity		96,583,170			97,740,826
Total liabilities and equity	$	101,084,392		$	107,068,729

The accompanying notes are an integral part of these unaudited consolidated financial statements

3

Tianyin Pharmaceutical Co., Inc.
Consolidated Statements of Operations
(Unaudited)
	For the Three Months Ended December 31,						For the Six Months Ended December 31,
	2014			2013			2014			2013
Sales	$	6,691,740		$	13,923,166		$	16,425,121		$	28,671,714
Cost of sales		3,041,483			7,705,869			7,696,946			16,460,902
Gross profit		3,650,257			6,217,297			8,728,175			12,210,812
Operating expenses
Selling expenses		1,216,952			2,428,675			2,845,800			4,967,919
General and administrative expenses		1,253,361			1,082,395			2,189,417			2,111,161
Research and development		914,607			252,014			2,007,250			503,328
Total operating expenses		3,384,920			3,763,084			7,042,467			7,582,408
Income from operations		265,337			2,454,213			1,685,708			4,628,404
Other income (expenses):
Interest income		13,002			86,424			13,819			108,734
Interest expense		(69,819	)		(119,821	)		(158,657	)		(222,722	)
Total other income (expenses)		(56,817	)		(33,397	)		(144,838	)		(113,988	)
Income before provision for income taxes		208,520			2,420,816			1,540,870			4,514,416
Provision for income taxes		82,336			727,757			437,164			1,361,865
Net income		126,184			1,693,059			1,103,706			3,152,551
Less: Net income (loss) attributable to noncontrolling interest		-			(50,549	)		(8,303	)		(106,180	)
Net income attributable to Tianyin Pharmaceutical Co., Inc.	$	126,184		$	1,743,608		$	1,112,009		$	3,258,731
Basic and diluted earnings per share	$	0.00		$	0.06		$	0.04		$	0.11
Weighted average number of common shares outstanding:
Basic and diluted		29,432,791			29,382,791			29,432,791			29,382,791

The accompanying notes are an integral part of these unaudited consolidated financial statements

4

Tianyin Pharmaceutical Co., Inc.
Consolidated Statements of Comprehensive Income
(Unaudited)
	For the Three Months Ended December 31,					For the Six Months Ended December 31,
	2014		2013			2014			2013
Net income	$	126,184	$	1,693,059		$	1,103,706		$	3,152,551
Other comprehensive income
Foreign currency translation adjustment		173,910		435,429			174,638			1,048,091
Total other comprehensive income		173,910		435,429			174,638			1,048,091
Total Comprehensive income		300,094		2,128,488			1,278,344			4,200,642
Less: Comprehensive income (loss) attributable to the noncontrolling interest		-		(49,912	)		(8,308	)		(104,386	)
Comprehensive income attributable to Tianyin Pharmaceutical Co., Inc.	$	300,094	$	2,178,400		$	1,286,652		$	4,305,028

The accompanying notes are an integral part of these unaudited consolidated financial statements

5

Tianyin Pharmaceutical Co., Inc.

Consolidated Statements of Cash Flows

(Unaudited)

	For the Six Months Ended
	December 31,
	2014			2013
Cash flows from operating activities:
Net Income	$	1,103,706		$	3,152,551
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		1,285,722			1,297,519
Deferred tax assets		185,592			-
Changes in current assets and current liabilities:
Accounts receivable		6,813,344			(563,334	)
Inventory		(2,416,004	)		61,748
Prepaid Research and Development expenses		(4,579,900	)		-
Other current assets		(296,633	)		314,887
Accounts payable and accrued expenses		(1,296,255	)		99,102
Accounts payable – construction related		(1,420,812	)		(2,736,906	)
Income tax and other taxes payable		(365,093	)		(259,470	)
Other current liabilities		(132,776	)		18,527
Net cash provided by (used in) operating activities		(1,119,109	)		1,384,624
Cash flows from investing activities:
Addition of Contruction in process		(1,903,684	)		(367,234	)
Proceeds from loans receivable		1,983,720			-
Acquisition of non-controlling interests		(2,436,000	)		-
Net cash used in investing activities		(2,355,964	)		(367,234	)
Cash flows from financing activities:
Changes in restricted cash		576,360			4,558,680
Repayment of short-term bank loans		(1,626,000	)		(1,400,166	)
Net cash provided by (used in) financing activities		(1,049,640	)		3,158,514
Effect of foreign currency translation on cash		23,964			304,207
Net increase (decrease) in cash and cash equivalents		(4,500,749	)		4,480,111
Cash and cash equivalents – beginning of period		16,120,041			26,827,008
Cash and cash equivalents – end of period	$	11,619,292		$	31,307,119
Supplemental disclosures of cash activities
Cash paid for interest	$	150,808		$	222,645
Cash paid for income taxes	$	306,992		$	1,340,918

The accompanying notes are an integral part of these unaudited consolidated financial statements

6

TIANYIN PHARMACEUTICAL CO., INC.

Notes To Consolidated Financial Statements

(Unaudited)

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

Tianyin Pharmaceutical (the “Company” or “TPI”), was established under the laws of Delaware. The Company’s primary business is to research, manufacture and sell pharmaceutical products in China through its wholly owned subsidiaries.

NOTE 2 – BASIS OF PRESENTATION AND CONSOLIDATION

The unaudited consolidated financial statements include the accounts of TPI and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. The accompanying unaudited financial statements have been prepared in accordance with US GAAP applicable to interim financial information and the requirements of Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosures required by US GAAP for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments, which include only normal recurring adjustments, considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included.

These interim unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended June 30, 2014, included in the Company’s annual report on Form 10-K filed with the U.S. Securities Exchange Commission on December 9, 2014, as not all disclosures required by US GAAP for annual financial statements are presented. The interim consolidated financial statements follow the same accounting policies and methods of computations as the audited consolidated financial statements for the year ended June 30, 2014.

7

In preparing the accompanying unaudited consolidated financial statements, we evaluated the period from December 31, 2014 through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified for this period.

The Company uses the United States dollar (“U.S. Dollar” or “US$” or “$”) for financial reporting purposes. The subsidiaries within the Company maintain their books and records in their respective functional currency, being the primary currency of the economic environment in which their operations are conducted. Assets and liabilities of a subsidiary with functional currency other than U.S. Dollar are translated into U.S. Dollars using the applicable exchange rates prevailing at the balance sheet date. Items on the statements of comprehensive income and cash flows are translated at average exchange rates during the reporting period. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the Company’s financial statements are recorded as a component of accumulated other comprehensive income.

Certain amounts for prior periods have been reclassified to conform to the current period presentation.

NOTE 3 – ACQUISITION OF NON-CONTROLLING INTEREST

On September 30, 2014, the Company’s subsidiary, Chengdu Tianyin, acquired the remaining 13% of Sichuan Jiangchuan Pharmaceutical Co. Ltd (“JCM”) for RMB 15 million (approximately $2.4 million) from an unrelated individual. Total payment of RMB 15 million was made on October 8, 2014. JCM became a wholly owned subsidiary of Chengdu Tianyin on September 30, 2014.

NOTE 4 – INVENTORY

Inventory as of December 31, 2014 and June 30, 2014 consists of the following:

	December 31, 2014		June 30, 2014
Raw materials	$	2,450,113	$	690,355
Packaging supplies		1,006,334		387,599
Work in process		972,615		1,088,880
Finished goods		1,837,237		1,674,878
	$	6,266,299	$	3,841,712

NOTE 5 – PREPAID RESEARCH AND DEVELOPMENT EXPENSE

In July 2014, the Company’s subsidiary, Chengdu Tianyin, entered into a research and development agreement with a pharmaceutical research company, Kang Lu Biomedical Co. (KL). KL is a reputable TCM research company that specializes in the product development and CFDA application process for mTCM extracts and healthcare products. Persuant to the agreement, KL will provide research and development expanding formulation varieties from Gingko Mihuan Oral Liquid (GMOL) to Capsule formulation. The total contract price is RMB 65 million (approximately $10.5 million). The first payment of RMB 39 million (approximately $6.3 million) was paid in July 2014. The project is expected to be completed before August 2017. The total contract price will be amortized over the term of the agreement which is a period of three years on a straight line basis.

8

NOTE 6 – SHORT-TERM BANK LOANS

Short-term bank loans consist of the following:

	December 31,		June 30,
	2014		2014
On October 30, 2013, the Company obtained a loan from China CITIC Bank, which matures on October 30, 2014. The interest is calculated using an annual fixed interest rate of 7.20% and paid monthly. The loan was guaranteed by the Company’s CEO, Dr. Jiang and a third party. Loan principal of $1,618,600 was repaid in October 2014, and the remaining loan principal of $2,928,600 is in default and currently being discussed with the bank for loan renewal till July 2015.	$	2,928,600	$	4,547,200
On October 28, 2013, the Company obtained a loan with ability to borrow RMB 12 million (approximately $2 million) from China CITC Bank, which matures on October 30, 2014. The loan was guaranteed by the Company’s CEO and a third party. The loan was extended on October 30, 2014 with extended maturity date of January 30, 2015. The loan balance for both periods are zero.		-		-
Total short-term bank loans	$	2,928,600	$	4,547,200

NOTE 7 – INCOME TAXES

The Company's subsidiary, Raygere, is incorporated in the British Virgin Islands. Under the corporate tax laws of British Virgin Islands, it is not subject to tax on income or capital gain.

The operating subsidiaries in China are all subject to 25% income tax rate. The tax write- offs and loss profit credit could only be applied to the individual subsidiaries of TPI.

In July 2006, the FASB issued ASC 740 that clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Company did not recognize any benefits in the financial statements for the fiscal year ended June 30, 2014 and for the six months ended December 31, 2014.

The comparison of income tax expense at the U.S. statutory rate of 35% in 2014 and 2013, to the Company’s effective tax is as follows:

	Six months ended December 31,
	2014			2013
U.S. Statutory rate	$	539,305		$	1,580,046
Tax rate difference between China and U.S.		(152,005	)		(450,750	)
Change in valuation allowance		49,864			232,569
Effective tax	$	437,164		$	1,361,865

The provisions for income taxes are summarized as follows:
	Six months ended December 31,
	2014		2013
Current	$	251,571	$	1,361,865
Deferred		135,729		-
Valuation allowance		49,864		-
Total	$	437,164	$	1,361,865

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NOTE 8 – RISK FACTORS

The Company's operations are carried out in the PRC. Accordingly, the Company's business, financial condition and results of operations may be adversely influenced by the political, economic and legal environments in the PRC as well as by the general state of the PRC’s economy. Specifically, the Company's business may be negatively influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. 

NOTE 9 – RISK OF CONCENTRATIONS AND CREDIT RISK

Concentrations

In terms of individual product sales, our major product Gingko Mihuan Oral Liquid (GMOL) represented 59% or $9.6 million of total sales for the six months ended December 31, 2014, as compared to 40% or $11.4 million of total sales for the six months ended December 31, 2013.  For the quarter ended December 31, 2014, GMOL sales represented 60% or $4.0 million as compared to 45% or $6.3 million for the quarter ended December 31, 2013.

For the six months ended December 31, 2014, one single customer accounted for 23% of the Company’s total sales compared with no customer with more than 10% of the Company’s sales for the six months ended December 31, 2013.

Purchases from one vendor accounted for 54% of the Company’s total purchases for the six months ended December 31, 2014 as compared to four vendors accounted for 18%, 14%, 12% and 11% respectively of the Company’s total purchases for the six months ended December 31, 2013.

Credit Risk

Financial instruments, which potentially subject the Company to credit risk consist principally of cash on deposit with financial institutions. Management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially sound and minimal credit risk exists with respect to these investments. Due to the state ownership of China’s majority of financial institutions, the policies that regulate the banking industry also presents a unique risk that impacts all industrial segments in China. The traditional industries such as pharmaceutical manufacturing without exception may also be affected in terms of capital expenditure for GMP certification, raw material purchases and etc.

10

NOTE 10 – Joint Venture

Cooperation Framework Agreement

On October 29, 2014, Shandong Buchang Pharmaceutical Co., Ltd. (“Shandong Buchang”), Chengdu Tianyin Pharmaceutical Co., Ltd. (“Chengdu Tianyin”), which is the Company’s indirect wholly-owned subsidiary, Grandway Group Holdings Ltd. (“Grandway Group”), which is the Company’s indirect wholly-owned subsidiary and Guoqing Jiang (“Jiang”), the Company’s Chairman and CEO, (each, a “Party”, and collectively “Parties) entered into a Cooperation Framework Agreement Regarding Chengdu Tianyin Pharmaceutical Co., Inc. (“Cooperation Framework Agreement”). Pursuant to the Cooperation Framework Agreement, the Parties agreed to establish a joint venture, Qionglai Tianyin Pharmaceutical Co., Ltd. (“Qionglai Tianyin”), with the total registered capital of RMB 200,000,000 (approximately US$32.3 million), with Chengdu Tianyin owning 95% and Shandong Buchang owning 5%. Shandong Buchang’s capital investment in Qionglai Tianyin took the form of RMB 10 million (approximately US$1.6 million), which was remitted on January 26, 2015, and Chengdu Tianyin’s capital investment in Qionglai Tianyin took the form of its buildings, land use rights, machineries and equipment of its plant located at Longquan and Qionglai, all of its patents and trademarks, and its portfolio drugs (the “Assets”).

Pursuant to the Cooperation Framework Agreement, after the establishment of Qionglai Tianyin, Shandong Buchang or a third party approved by Shandong Buchang shall enter into an agreement with Qionglai Tianyin to appoint Shandong Buchang or the third party as the exclusive distributor within China regarding all medicines transferred excluding Mycophenolate Mofetil Capsules (CFDA No. H20080819), whose exclusive distributor remains to be Chengdu Tianyin.

Following the execution of the Cooperation Framework Agreement, registration documents to establish Qionglai Tianyin was filed on November 3, 2014 and approved on January 27, 2015.

Stock Pledge Agreement

In November 2014, Chengdu Tianyin and Shandong Buchang entered into a Stock Pledge Agreement, pursuant to which the parties agreed that Chengdu Tianyin shall pledge its 95% stake of Qionglai Tianyin to Shandong Buchang as its down payment to Shandong Buchang and guarantee of performance of Chengdu Tianyin, Grandway Group and Dr. Guoqing Jiang under the Cooperation Framework Agreement.

Share Transfer Agreements

In November 2014, Shandong Buchang, Chengdu Tianyin, Qionglai Tianyin and Grandway Group entered into a Share Transfer Agreement Regarding Qionglai Tianyin Pharmaceutical Co., Ltd. (“Share Transfer Agreement”). Pursuant to the Share Transfer Agreement, after Chengdu Tianyin has completed the transfer of the Assets into Qionglai Tianyin, Chengdu Tianyin shall transfer 72% of Qionglai Tianyin’s stock to Shandong Buchang at the total price of RMB 144,000,000 (approximately US$23.2 million) which shall be paid in installments.    

Accounting Treatment

Since management has made the decision to contribute certain assets described above to Qionglai Tianyin and 72% ownership of Qionglai Tianyin will be transferred to Shandong Buchang, the assets which will be contributed to Qionglai Tianyin are classified as Assets Held for Sale on balance sheet at December 31, 2014.   

NOTE 11 – RELATED-PARTY TRANSACTIONS

On October 30, 2013, the Company obtained two loans from China CITIC Bank, for RMB 28 million (approximately $4.5 million) and RMB12 million (approximately $ 1.9 million), respectively, which matured on October 30, 2014. On October 30, 2014, the maturity dates of both loans were extended to January 30, 2015. Both loans were guaranteed by the Company’s CEO, Guoqing Jiang and third parties. (see note 6)

On October 29, 2014, Chengdu Tianyin, the Company’s indirect wholly-owned subsidiary, Grandway Group, the Company’s indirect wholly-owned subsidiary, Guoqing Jiang, the Company’s Chairman and CEO, and Shandong Buchang entered into certain Cooperation Framework Agreement, pursuant to which a joint venture, Qionglai Tianyin, was established. (see note 10) Under the Cooperation Framework Agreement, Dr. Jiang agreed to undertake joint and several liabilities with Chengdu Tianyin and Grandway Group to Shandong Buchang and Qionglai Tianyin for breaches of the agreement.

11

Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of financial condition and results of operations relates to the operations and financial condition reported in the financial statements of Tianyin Pharmaceutical Co., Inc. for the three and six months ended December 31, 2014 and 2013 and should be read in conjunction with such financial statements and related notes included in this report and the Company’s Annual Report on Form 10-K  for the year ended June 30, 2014.

The information set forth below includes forward-looking statements. Certain factors that could cause results to differ materially from those projected in the forward-looking statements are set forth below. Readers are cautioned not to put undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.

Overview

We are engaged in the development, manufacturing, marketing and sale of patented biopharmaceutical, modernized traditional Chinese medicines (mTCM), branded generics and other pharmaceuticals in China. We currently manufacture and market a portfolio of 58 products, 24 of which are listed in the National Medical Reimbursement program including the patent protected Ginkgo Mihuan Oral Liquid (GMOL) and a series of drug candidates that target various high incidence healthcare conditions in China. Established in 1994, Chengdu Tianyin Pharmaceutical Co., Ltd (“Chengdu Tianyin”) is a pharmaceutical company that manufactures and sells mTCMs and branded generics. The current management acquired 100% of the equity interest of Chengdu Tianyin in 2003. On October 30, 2007, Grandway Groups Holdings Ltd. (“Grandway”) completed the acquisition of the 100% of the equity interest and now owns 100% of the equity interest of Chengdu Tianyin.

In June 2009, Chengdu Tianyin invested approximately $0.7 million (RMB 5 million) to establish a wholly-owned trading subsidiary, Chengdu Tianyin Medicine Trading Co., Ltd (“TMT”) for the sale and distribution of pharmaceutical products to optimize our business model through our distribution channels.

On August 21, 2009, Chengdu Tianyin, Sichuan Mingxin Pharmaceutical (“Sichuan Mingxin”) and an individual investor established Sichuan Jiangchuan Pharmaceutical Co., Ltd (“JCM”). JCM’s major business is to produce macrolide antibiotic active pharmaceutical ingredients (API). It was incorporated as a part of our strategy to establish our presence in the API industry in China. The total registered capital of JCM is approximately $3.2 million (equivalent of RMB 20 million), of which Chengdu Tianyin accounts for 87%, after increasing its stake in JCM from 77% at the inception of JCM by purchasing another 10% ownership from Sichuan Mingxin in the fiscal year 2012. On September 30, 2014, Chengdu Tianyin purchased the remaining 13% of the ownership of JCM from the individual investor for approximately $2.4 million (RMB 15 million). Consequently, JCM became a wholly owned subsidiary of Chengdu Tianyin.

On August 29, 2012, Chengdu Tianyin entered into a Share Transfer Agreement with the shareholders of Sichuan Hengshuo Pharmaceutical Co., Ltd (“Sichuan Hengshuo” or “HSP”), a pharmaceutical distribution company, to acquire 100% ownership of HSP for approximately $0.2 million (RMB 1.3 million). The purpose of the acquisition was to facilitate the relocation of Company’s manufacturing facility to Qionglai since HSP was registered at Qionglai. The share transfer was closed on November 30, 2012, pursuant to which Chengdu Tianyin now owns 100% of HSP and Guoqing Jiang, Chairman and CEO of Chengdu Tianyin has become the legal representative of HSP.

On January 27, 2015, a joint venture, Qionglai Tianyin Pharmaceutical Co., Ltd. (“Qionglai Tianyin”), with the total registered capital of RMB 200,000,000 (approximately US$32.3 million), was established pursuant to a Cooperation Framework Agreement Regarding Chengdu Tianyin Pharmaceutical Co., Inc. (“Cooperation Framework Agreement”) by and among Chengdu Tianyin, Grandway Group Holdings Ltd. (“Grandway Group”, which is the Company’s indirect wholly-owned subsidiary and holds 100% interest of Chengdu Tianyin), Guoqing Jiang (“Jiang”) and Shandong Buchang Pharmaceutical Co., Ltd. (“Shandong Buchang”), entered into on October 29, 2014. Pursuant to the Cooperation Framework Agreement, Chengdu Tianyin and Shandong Buchang owned 95% and 5% respectively of Qionglai Tianyin. Shandong Buchang’s capital investment in Qionglai Tianyin took the form of RMB 10 million (approximately US$1.6 million), which was remitted on January 26, 2015, and Chengdu Tianyin’s capital investment in Qionglai Tianyin took the form of its buildings, land use rights, machineries and equipment of its plant located at Longquan and Qionglai, all of its patents and trademarks, and its portfolio drugs collectively valuated at approximately RMB 190 million (approximately USD $30.7 million) (the “Assets”). In November 2014, Shandong Buchang, Chengdu Tianyin, Qionglai Tianyin and Grandway Group entered into a Share Transfer Agreement Regarding Qionglai Tianyin Pharmaceutical Co., Ltd. (“Share Transfer Agreement”). Pursuant to the Share Transfer Agreement, after Chengdu Tianyin has completed the transfer of the Assets into Qionglai Tianyin, Chengdu Tianyin shall transfer 72% of Qionglai Tianyin’s stock to Shandong Buchang at the total price of RMB 144,000,000 (approximately US$23.2 million) which shall be paid in installments.

Competitive Environment

The market for pharmaceutical products is highly competitive. Our operations may be affected by technological advances by competitors, industry consolidation, patents granted to competitors, competitive combination products, new products offered by our competitors, as well as new information provided by other marketed products and/or other post-market studies.

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Development and Growth Strategy

Research and Development (R&D)

We have a proven cooperative partnership model for the R&D which is cost effective, efficient, and value adding for our organic growth. We focused on innovative products as well as modifications and improvements of existing marketed products with substantial market potential. Our R&D partners include a number of most prestigious academic institutions in China such as China Pharmaceutical University, Sichuan University-affiliated West China Center of Medical Sciences, and Shaanxi University of Chinese Medicines. The partnership-based R&D strategy supports TPI to commercialize, produce, and broaden our product pipeline and to market those products through our sales and marketing infrastructure. In July 2014, a TPI’s subsidiary, Chengdu Tianyin, entered into a research and development agreement with a pharmaceutical research company to expand formulation varieties from GMOL to Capsule formulation. The in-house research group at TPI together with the partnership research institutes will collaborate in developing, testing and filing for the CFDA approval application. The project is expected to be completed by August 2017.

Jiangchuan Macrolide Facility (JCM)

In January 2012, the JCM for R&D, manufacturing and sale of macrolide APIs received its GMP certification designated as "CHUAN M0799," which is valid until December 31, 2015. As a result, JCM started the production of the macrolide API for TPI’s Azithromycin Dispersible Tablets (SFDA No: H20074145). The API produced by JCM supplies for TPI’s own Azithromycin Tablets as well as for both domestic and international third party sales.

In April 2014, JCM has developed a new line of Azithromycin API products that supports steady monthly export orders to South Asia. Following a series of tests on quality, purity, intermediates contents, stereochemistry, stability in comparison with the international standards of Azithromycin API, JCM has received monthly orders for manufacturing one of the major intermediates of Azithromycin, Azithromycin Amine (AA) at a competitive international price which varies on monthly basis according to market demands and foreign exchange rate. Following JCM’s application (No. 51268) for the import certificate to India via India's Central Drugs Standard Control Organization Ministry of Health & Family Welfare, JCM successfully passed the preliminary examination on December 30, 2014, and was notified on January 16, 2015 by the Directorate General Of Health Services, Office of Drug Controller General (India) Import and Registration Division regarding the application to import Azithromycin API Products and Intermediates to send in samples of Azithromycin API from three different lots for analysis. Upon request, the samples were sent to the Central Drug Testing Laboratory (CDTL) in Mumbai, India for the final approval of the import. JCM has also been negotiating with a subsidiary of a large international pharmaceutical company who sells Azithromycin tablets sale worldwide for API. In addition to JCM's certification in India, along with other international clients located at Bangladesh, Philippines and Iran on import status, JCM plans for certification process in both the European Union and the United States in order to service international clients and their subsidiaries in China. JCM’s Drug Master File (DMF) will be prepared and submitted to the appropriate regulatory authority at the intended drug market. DMF provides the regulatory authority with confidential, detailed information about facilities, processes, or articles used in the manufacturing, processing, packaging, and storing of one or more drugs. In the United States, DMFs are submitted to the Food and Drug Administration (FDA). The Main Objective of the DMF is to support regulatory requirements and to prove the quality, safety and efficacy of the medicinal product for export application. These registration and certification processes are expected to support further demand for JCM's API products in both domestic and international markets.

Tianyin Medicine Trading Distribution Business (TMT)

TMT is established to distribute products manufactured by us and other pharmaceutical companies to fuel our expanding sales network as well as to provide synergy to our existing organic product portfolio. TMT has been distributing mainly our products since its inception in 2009. Since 2010, we have signed and later extended distribution contracts with Jiangsu Lianshui Pharmaceutical (“Lianshui”) to distribute Lianshui-branded generic injection products including cough suppressant, antibiotics, anti-inflammatory medicines and other healthcare indications.

Pre-extraction and formulation plant development at Qionglai Tianyin Facility (QLF)

In preparation for the new GMP standards stipulated by the government in early 2011, we initiated a process to optimize our manufacturing facilities and production lines in compliance with the new GMP standards. Under the guidance by provincial government, our facility is scheduled to be relocated to Qionglai County, south of Chengdu, which is designated for the pharmaceutical industry. Both the TCM pre-extraction plant and the formulation plant will be relocated to form a combined QLF, occupying an area of 80 mu (13 acres). The combined QLF, designed and constructed according to the latest GMP standards, is expected to relieve the current capacity saturation at the current facilities. The re-location cost for Phase I, which includes both the pre-extraction and formulation plant is estimated at $25 million, which is to improve the current capacity by 30-50%. In Phase II QLF, an additional $10 million may be invested to double the current capacity. QLF has successfully passed the GMP certification process (GMP certificate No.: SC20140067 valid through 2020) in early 2015. The relocation has been ongoing and coincided with the establishment of the joint venture, Qionglai Tianyin, in January 2015, while the assets of Chengdu Tianyin including the QLF were contributed to Qionglai Tianyin as Chengdu Tianyin’s capital contribution. (Please refer to the financial footnote 10 for more information.) 

As for the Company’s Longquan facility, according to the guidance by the local government, the Company may be involved in the development of the land according to the local zoning requirement after the relocation of the facility is completed. The Company has not yet formed any development plans of the land.

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Joint Venture with Shandong Buchang

The Company had been contemplating a strategic alliance with Shandong Buchang, one of China's most elite pharmaceutical companies, to synergize and accelerate the growth of the Company, boosting the Company’s modernized traditional Chinese medicines (mTCM) franchise focusing on its cardiovascular revenue driver Gingko Mihuan (GMOL). The alliance would integrate the Company’s portfolio drugs especially high margined core product portfolio with the possibility of integrating additional products beyond the current indication categories of cardiovascular, viral infection and immunology. After months’ of discussion and negotiation, on October 29, 2014, Chengdu Tianyin entered into an agreement with Shandong Buchang to establish a joint venture, Qionglai Tianyin. Following the execution of the agreement, Qionglai Tianyin was established on January 27, 2015. In November 2014 a Share Transfer Agreement was entered into, pursuant to which, after Chengdu Tianyin has completed the transfer of the Assets into Qionglai Tianyin, Chengdu Tianyin shall transfer 72% of Qionglai Tianyin’s stock to Shandong Buchang. The joint venture established by Chengdu Tianyin and Shandong Buchang will help the Company to focus their resources on sales expansion and market development and in the meanwhile to relieve the pressure in operating a manufacturing facility which has become increasingly cost driven.

Fiscal 2015 Guidance

The following factors, in our opinion, will influence the Company’s growth perspectives for fiscal year 2015:

1) Market expansion and revenue growth of TPI’s core product portfolio led by flagship product GMOL and other major products;

2) JCM revenue at both domestic and international markets in the fiscal year 2015;

3) Generic sale stabilization and recovery along with our strategy to cope with pricing restrictions and market competition under the ongoing healthcare reform; and

4) QLF GMP relocation and smooth transition of production capacity.  

We previously forecast the organic revenue growth for TPI to range 0-5% for the fiscal year 2015 as compared with the fiscal year 2014. The management is currently monitoring the relocation progress and the manufacturing capacity and efficiency maintenance and improvement at QLF to evaluate their effect on the Company’s operating results to update the guidance if necessary while any changes will be communicated on a quarterly basis or as when appropriate. 

Discussion on Operating Results

The following table shows the results of operations of our business. All references to the results of operations and financial conditions are on a consolidated basis that includes Chengdu Tianyin, TMT, JCM and HSP.

Comparison of results for the three and six months ended December 31, 2014 and 2013:

	Three Months Ended
	December 31,		December 31,
	2014		2013
	(In $ millions)
Sales		6.7		13.9
Cost of sales		3.0		7.7
Gross profit		3.7		6.2
Income from Operation		0.3		2.5
Provision for income taxes		0.1		0.7
Net income		0.1		1.7

	Six Months Ended
	December 31,		December 31,
	2014		2013
	(In $ millions)
Sales		16.4		28.7
Cost of sales		7.7		16.5
Gross profit		8.7		12.2
Income from Operation		1.7		4.6
Provision for income taxes		0.4		1.4
Net income		1.1		3.2

Sales for the quarter ended December 31, 2014 were $6.7 million as compared to $13.9 million for the quarter ended December 31, 2013. Sales for the six months ended December 31, 2014 were $16.4 million as compared to $28.7 million for the six months ended December 31, 2013. The sales decrease was a result of continuous pricing pressure and restrictive sales policies on generic products compared with the same period last year. The decrease was also a result of the relocation process of Company’s manufacturing facility from the previous Longquan location to the new QLF site.

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Cost of Sales for the quarter ended December 31, 2014 was $3.0 million or 45% of sales, as compared to $7.7 million or 55% of sales for the quarter ended December 31, 2013. Cost of Sales for the six months ended December 31, 2014 was $7.7 million as compared to $16.5 million for the six months ended December 31, 2013. Our cost of sales primarily consists of the costs of direct raw materials (85% of the cost of goods sold) and production cost (15% of cost of goods sold). The percentage decrease in our cost of sales from the previous period was mainly attributable to a greater percentage of higher margin products and a decrease of our lower margin generic segment.

Gross Margin for the quarter ended December 31, 2014 was 55% as compared to 45% for the quarter ended December 31, 2013. Gross margin for the six months ended December 31, 2014 was 53% as compared to 43% for the six months ended December 31, 2013. As discussed above, our gross margin improved, predominately as a result of an increased higher margin products being sold during the period. We see the trend to continue for the rest of fiscal 2015.

Income from Operations was $0.3 million for the quarter ended December 31, 2014, as compared to $2.5 million for the quarter ended December 31, 2013. Income from Operations was $1.7 million for the six months ended December 31, 2014 as compared to $4.6 million for the six months ended December 31, 2013. The decrease of income from operations was mainly due to the R&D costs towards our cardiovascular portfolio centered on GMOL and the decrease of sales as a result of the relocation process discussed above.

Net Income was $0.1 million with net margin of 1.5% for the quarter ended December 31, 2014, as compared to net income of $1.7 million with net margin of 12% for the quarter ended December 31, 2013. Net income was $1.1 million with net margin of 7% for the six months ended December 31, 2014 as compared to $3.2 million with net margin of 11% for the six months ended December 31, 2013. The decrease of net margins was primarily due to the GMOL R&D costs and the decrease of sales as a result of the relocation process discussed above.

Foreign Currency Translation Adjustment. Our reporting currency is the US dollar. We have evaluated the determination of its functional currency based on the guidance in ASC Topic, “Foreign Currency Matters,” which provides that an entity’s functional currency is the currency of the primary economic environment in which the entity operates; normally, that is the currency of the environment in which an entity primarily generates and expends cash. We have conducted financings in U.S. dollars, paid operating expenses primarily in U.S. dollars, paid dividends to our shareholders of common stock and expect to receive any dividends that may be declared by our subsidiaries in U.S. dollars. Therefore, we have determined that our functional currency is the U.S. dollar based on the expense and financing indicators, in accordance with the guidance in ASC 830-10-85-5.  However, the functional currency of our indirectly owned operating subsidiary in China is Renminbi (RMB). Results of operations and cash flow are translated at average exchange rates during the period, and assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period.  Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of shareholders’ equity.  Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

Currency translation adjustments are included in accumulated other comprehensive income in the consolidated statement of Comprehensive Income and amounted to $174,638 and $1,048,091 for the six months ended December 31, 2014 and 2013, respectively. The balance sheet amounts with the exception of equity as of December 31, 2014 were translated at 6.1463 RMB to 1.00 US dollar as compared to 6.1425 RMB to 1.00 US dollar as of December 31, 2013. The equity accounts were stated at their historical rate. The average translation rates applied to income statement accounts for the quarters ended December 31, 2014 and 2013 were the average exchange rates during the periods.

Liquidity and Capital Resources

Discussion of Cash Flow ($ in millions)

	For the six months ended December 31,
	2014			2013
Cash provided by (used in) operating activities	$	(1.1	)	$	1.4
Cash used in investing activities	$	(2.4	)	$	(0.4	)
Cash provided by (used in) financing activities	$	(1.0	)	$	3.2

Operating activities

As of December 31, 2014, we had working capital totaling $21.5 million, including cash and cash equivalents of $11.6 million. Net cash used in operating activities was $1.1 million for the six months ended December 31, 2014 as compared with net cash provided by operating activities of $1.4 million for the six months ended December 31, 2013. We believe that TPI is adequately funded to meet all of our working capital and capital expenditure needs for fiscal year 2015.

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Investing activities

We had $1.9 million and $0.4 million cash used in investing activities towards QLF construction for the six months ended December 31, 2014 and 2013, respectively. $2.4 million was paid to acquire the 13% non-controlling interest of our subsidiary JCM during the six months ended December 31, 2014.

Financing Activities

Net cash used in financing activities for the six months ended December 31, 2014, totaled $1.0 million as compared to net cash provided by financing activities for the same period of 2013 of  $3.2 million.

Borrowings and Credit Facilities

The short-term bank borrowings outstanding as of December 31, 2014 and 2013 were $2.9 million and $4.6 million, respectively. We paid an average interest rate of 7.20% and 6.927% per annum in 2014 and 2013, respectively. These loans were made from CITIC Bank, secured by Chengdu Tianyin's certificate of deposit and guaranteed by Guoqing Jiang, our CEO and a third party. The loans do not contain any additional financial covenants or restrictions. The borrowings have one-year terms which do not contain specific renewal terms. The short-term loan of $2.9 million is in default and currently being discussed with the bank for loan renewal till July 2015.

Changes in Equity

During the six months ended December 31, 2014, there have been no activities related to warrants exercise or option exercises. All of the Company’s remaining warrants, which were Class B Warrants issued in a financing conducted by the Company in January 2008, expired on January 31, 2015. As of the date of this filing, there are no outstanding warrants issued by the Company.

Related Party Transactions

The Company considers all transactions with the following party to be related party transactions.

Name of Party	Relationship with the Company
Guoqing Jiang	Chief Executive Officer, Chairman, Principal Shareholder

On October 30, 2013, the Company obtained two loans from China CITIC Bank, for RMB 28 million (approximately $4.5 million) and RMB12 million (approximately $ 1.9 million), respectively, which matured on October 30, 2014. On October 30, 2014, the maturity dates of both loans were extended to January 30, 2015. Both loans were guaranteed by the Company’s CEO, Guoqing Jiang and third parties. (Please refer to note 6 to consolidated financial statements for more information.)

On October 29, 2014, Chengdu Tianyin, the Company’s indirect wholly-owned subsidiary, Grandway Group, the Company’s indirect wholly-owned subsidiary, Guoqing Jiang, the Company’s Chairman and CEO and Shandong Buchang entered into certain Cooperation Framework Agreement, pursuant to which a joint venture, Qionglai Tianyin, was established. (Please refer to note 10 to consolidated financial statements for more information.) Under the Cooperation Framework Agreement, Dr. Jiang agreed to undertake joint and several liabilities with Chengdu Tianyin and Grandway Group to Shandong Buchang and Qionglai Tianyin for breaches of the agreement.

Critical Accounting Policies and Estimates

Please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the year ended June 30, 2014, for disclosures regarding TPI’s critical accounting policies and estimates, as well as updates further disclosed in our interim financial statements as described in this Form 10-Q.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Others

While Inflation is not often expected to impact significantly on our operations, we could realize inflationary pressures that could increase our costs which we may not be able to pass onto our customers as a result of costs controls that could be affected by governmental healthcare pricing initiatives and policies.

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Item 3.   Quantitative and Qualitative Disclosure About Market Risk

Not applicable

Item 4.   Controls and Procedures

(a)           Evaluation of disclosure controls and procedures

We maintain disclosure controls and procedures designed to provide reasonable assurance that material information required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that the information is accumulated and communicated to our management, as appropriate to allow timely decisions regarding required disclosure. We performed an evaluation, under the supervision and with the participation of our management, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation, our management has concluded as of June 30, 2014 and as of December 31, 2014, due to the existence of material weaknesses, that our disclosure controls and procedures were not effective in ensuring that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission, and were not effective in providing reasonable assurance that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including its Chief Executive Officer, as appropriate to allow timely decisions regarding required disclosure.

We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

(b)           Changes in internal control over financial reporting

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter covered by this report that has materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings

From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. We are not aware of any pending or threatened legal proceeding that, if determined in a manner adverse to us, could have a material adverse effect on our business and operations.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds (a)        Not applicable. (b)        Not applicable. (c)        Not applicable.

ITEM 3. Defaults upon Senior Securities (a)        Not Applicable. (b)        Not Applicable.

ITEM 4. Mine Safety Disclosures

Not applicable.

ITEM 5. OTHER INFORMATION (a)        Not applicable. (b)        Not applicable.

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ITEM 6. EXHIBITS

(a) The following exhibits are filed as part of this report.

Exhibit No.	Document
3.1	Articles of Incorporation, as amended (Incorporated by reference to Exhibit 3.1 to our Annual Report on Form 10-K filed on September 29, 2008).
3.2	Bylaws (Incorporated by reference to Exhibit 3.2 to our Annual Report on Form 10-K filed on September 29, 2008).
31.1	Certification  of  Chief  Executive  Officer  required  by Rule 13a-14/15d-14(a) under the Exchange Act (Filed herewith)
31.2	Certification of  Chief Accounting Officer required by Rule 13a-14/15d-14(a) under the Exchange Act (Filed herewith)
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Filed herewith)
32.2	Certification of Acting Chief Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Filed herewith)
101	Interactive Data Files (Filed herewith)
101.SCH	XBRL Taxonomy Extension Schema Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Amendment No. 1 to Quarterly Report on Form 10-Q for the quarter ended December 31, 2014 to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 20, 2015

TIANYIN PHARMACEUTICAL CO., INC.
By:	/s/ Guoqing Jiang
Name:	Dr. Guoqing Jiang
Title :	Chairman, Chief Executive Officer, Chief Accounting Officer, Chief Financial Officer

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EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Guoqing Jiang, certify that:

1. I have reviewed this amendment to quarterly report on Form 10-Q for the period ended December 31, 2014 of Tianyin Pharmaceutical Co., Inc.

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.	Designed such internal control over financial reporting, or caused such internal control to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 20, 2015

/s/ Guoqing Jiang

Guoqing Jiang

Chief Executive Officer, Chief Accounting Officer, Chairman

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Guoqing Jiang, certify that:

1. I have reviewed this amendment to quarterly report on Form 10-Q for the period ended December 31, 2014 of Tianyin Pharmaceutical Co., Inc.

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.	Designed such internal control over financial reporting, or caused such internal control to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 20, 2015

/s/ Guoqing Jiang

Guoqing Jiang

Acting Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the  Amendment to Quarterly Report of Tianyin Pharmaceutical Co., Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report’), I, Guoqing Jiang, Chief Executive Officer & Chief Accounting Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Date: August 20, 2015

/s/ Guoqing Jiang

Guoqing Jiang

Chief Executive Officer,

Chief Accounting Officer, Chairman

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the  Amendment to Quarterly Report of Tianyin Pharmaceutical Co., Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report’), I, Guoqing Jiang, Acting Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Date: August 20, 2015

/s/ Guoqing Jiang

Guoqing Jiang

Acting Chief Financial Officer

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Short-Term Bank Loans (Details Textual) - Oct. 30, 2013 - China CITC Bank [Member] ¥ in Millions	USD ($)	CNY (¥)
Short-term Debt [Member]
Short-Term Bank Loans (Textual)
Annual fixed interest rate of short-term bank loans	7.20%
Maturity date	Oct. 30, 2014	Oct. 30, 2014
Loan principal amount repaid	$ 1,618,600
Remaining loan principal	$ 2,928,600
Terms of the remaining loan	The remaining loan principal of $2,928,600 is in default and currently being discussed with the bank for loan renewal till July 2015.	The remaining loan principal of $2,928,600 is in default and currently being discussed with the bank for loan renewal till July 2015.
Short-Term Bank Loan One [Member]
Short-Term Bank Loans (Textual)
Maturity date	Oct. 30, 2014	Oct. 30, 2014
Loan principal amount repaid	$ 2,000,000	¥ 12
Terms of the remaining loan	The loan was extended on October 30, 2014 with extended maturity date of January 30, 2015. The loan balance for both periods are zero.	The loan was extended on October 30, 2014 with extended maturity date of January 30, 2015. The loan balance for both periods are zero.

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Acquisition Of Non-Controlling Interest

6 Months Ended

Dec. 31, 2014

Acquisition of Non-Controlling Interest [Abstract]

ACQUISITION OF NON-CONTROLLING INTEREST

NOTE 3 – ACQUISITION OF NON-CONTROLLING INTEREST

On September 30, 2014, the Company’s subsidiary, Chengdu Tianyin, acquired the remaining 13% of Sichuan Jiangchuan Pharmaceutical Co. Ltd (“JCM”) for RMB 15 million (approximately $2.4 million) from an unrelated individual. Total payment of RMB 15 million was made on October 8, 2014. JCM became a wholly owned subsidiary of Chengdu Tianyin on September 30, 2014.

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Risk of Concentrations and Credit Risk (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Vendor I [Member]
Risk of Concentrations and Credit Risk (Textual)
Percentage of materials purchased from vendors			54.00%	18.00%
Vendor II [Member]
Risk of Concentrations and Credit Risk (Textual)
Percentage of materials purchased from vendors				14.00%
Vendor III [Member]
Risk of Concentrations and Credit Risk (Textual)
Percentage of materials purchased from vendors				12.00%
Vendor IV [Member]
Risk of Concentrations and Credit Risk (Textual)
Percentage of materials purchased from vendors				11.00%
No Customer [Member]
Risk of Concentrations and Credit Risk (Textual)
Concentration risk, percentage				10.00%
Customer One [Member]
Risk of Concentrations and Credit Risk (Textual)
Concentration risk, percentage			23.00%
Sales [Member] | GMOL [Member]
Risk of Concentrations and Credit Risk (Textual)
Concentration risk, percentage	60.00%	45.00%	59.00%	40.00%
Sales revenue, goods, net	$ 4.0	$ 6.3	$ 9.6	$ 11.4

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Income Taxes (Details Textual)	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Taxes (Textual)
Effective tax rates	35.00%	35.00%
Operating subsidiaries in China [Member]
Income Taxes (Textual)
Effective tax rates	25.00%

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Joint Venture (Details) $ in Millions		1 Months Ended		6 Months Ended
	Oct. 29, 2014 USD ($)	Nov. 30, 2014 USD ($)	Nov. 30, 2014 CNY (¥)	Dec. 31, 2014	Oct. 29, 2014 CNY (¥)
Chengdu Tianyin [Member]
Joint Venture (Textual)
Percentage of ownership	95.00%	95.00%	95.00%
Total registered capital	$ 32.3				¥ 200,000,000
Shandong Buchang [Member]
Joint Venture (Textual)
Percentage of ownership	5.00%	95.00%	95.00%	72.00%
Total registered capital	$ 1.6				¥ 10,000,000
Sale of stock description		Chengdu Tianyin has completed the transfer of the Assets into Qionglai Tianyin, Chengdu Tianyin shall transfer 72% of Qionglai Tianyin's stock to Shandong Buchang.	Chengdu Tianyin has completed the transfer of the Assets into Qionglai Tianyin, Chengdu Tianyin shall transfer 72% of Qionglai Tianyin's stock to Shandong Buchang.
Purchase price consideration		$ 23.2	¥ 144,000,000

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Related-Party Transactions (Details) - Oct. 30, 2013 ¥ in Millions, $ in Millions	USD ($)	CNY (¥)
Loan One [Member]
Related Party Transaction [Line Items]
Due to related parties	$ 4.5	¥ 28
Maturity date	Jan. 30, 2015
Loan Two [Member]
Related Party Transaction [Line Items]
Due to related parties	$ 1.9	¥ 12
Maturity date	Jan. 30, 2015

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Basis of Presentation and Consolidation

6 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION AND CONSOLIDATION

NOTE 2 – BASIS OF PRESENTATION AND CONSOLIDATION

The unaudited consolidated financial statements include the accounts of TPI and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. The accompanying unaudited financial statements have been prepared in accordance with US GAAP applicable to interim financial information and the requirements of Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosures required by US GAAP for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments, which include only normal recurring adjustments, considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included.

These interim unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended June 30, 2014, included in the Company’s annual report on Form 10-K filed with the U.S. Securities Exchange Commission on December 9, 2014, as not all disclosures required by US GAAP for annual financial statements are presented. The interim consolidated financial statements follow the same accounting policies and methods of computations as the audited consolidated financial statements for the year ended June 30, 2014.

In preparing the accompanying unaudited consolidated financial statements, we evaluated the period from December 31, 2014 through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified for this period.

The Company uses the United States dollar (“U.S. Dollar” or “US$” or “$”) for financial reporting purposes. The subsidiaries within the Company maintain their books and records in their respective functional currency, being the primary currency of the economic environment in which their operations are conducted. Assets and liabilities of a subsidiary with functional currency other than U.S. Dollar are translated into U.S. Dollars using the applicable exchange rates prevailing at the balance sheet date. Items on the statements of comprehensive income and cash flows are translated at average exchange rates during the reporting period. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the Company’s financial statements are recorded as a component of accumulated other comprehensive income.

Certain amounts for prior periods have been reclassified to conform to the current period presentation.

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Consolidated Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$ 11,619,292	$ 16,120,041
Restricted cash	419,139	994,017
Accounts receivable, net of allowance for doubtful accounts of $102,590 and $102,401 at December 31, 2014 and June 30, 2014, respectively	2,273,805	9,074,576
Inventory	$ 6,266,299	3,841,712
Loan receivable		1,981,280
Deferred tax assets	$ 994,918	$ 1,180,510
Prepaid Research and Development expenses - current portion	3,525,167
Other current assets	885,284	$ 587,384
Total current assets	25,983,904	33,779,520
Property and equipment, net	20,104,121	45,378,356
Intangibles, net	12,854,610	$ 27,699,733
Prepaid Research Development expenses	1,057,550
Goodwill	211,510	$ 211,120
Assets held for sale	40,872,697
Total assets	101,084,392	$ 107,068,729
Current liabilities:
Accounts payable and accrued expenses	298,349	1,592,459
Accounts payable - construction related	821,377	2,238,927
Short-term bank loans	$ 2,928,600	4,547,200
Income tax payable		35,832
Other taxes payable	$ 61,792	390,490
Other current liabilities	391,104	522,995
Total current liabilities	4,501,222	9,327,903
Total liabilities	$ 4,501,222	$ 9,327,903
Stockholders' equity:
Preferred stock, $0.001 par value, 25,000,000 shares authorized, no shares issued and outstanding at December 31, 2014 and June 30, 2014
Common stock, $0.001 par value, 50,000,000 shares authorized, 29,546,276 shares issued, 29,432,791 shares outstanding at December 31, 2014 and June 30, 2014	$ 29,546	$ 29,546
Additional paid-in capital	27,809,515	30,189,802
Treasury stock, 113,485 shares at cost	(135,925)	(135,925)
Statutory reserve	7,148,893	6,976,412
Retained earnings	51,132,786	50,193,258
Accumulated other comprehensive income	10,598,355	10,423,712
Total stockholders' equity	$ 96,583,170	97,676,805
Noncontrolling interest		64,021
Total equity	$ 96,583,170	97,740,826
Total liabilities and equity	$ 101,084,392	$ 107,068,729

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net Income	$ 1,103,706	$ 3,152,551
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	1,285,722	$ 1,297,519
Deferred tax assets	185,592
Changes in current assets and current liabilities:
Accounts receivable	6,813,344	$ (563,334)
Inventory	(2,416,004)	$ 61,748
Prepaid Research and Development expenses	(4,579,900)
Other current assets	(296,633)	$ 314,887
Accounts payable and accrued expenses	(1,296,255)	99,102
Accounts payable - construction related	(1,420,812)	(2,736,906)
Income tax and other taxes payable	(365,093)	(259,470)
Other current liabilities	(132,776)	18,527
Net cash provided by (used in) operating activities	(1,119,109)	1,384,624
Cash flows from investing activities:
Addition of Contruction in process	(1,903,684)	$ (367,234)
Proceeds from loans receivable	1,983,720
Acquisition of non-controlling interests	(2,436,000)
Net cash used in investing activities	(2,355,964)	$ (367,234)
Cash flows from financing activities:
Changes in restricted cash	576,360	4,558,680
Repayment of short-term bank loans	(1,626,000)	(1,400,166)
Net cash provided by (used in) financing activities	(1,049,640)	3,158,514
Effect of foreign currency translation on cash	23,964	304,207
Net increase (decrease) in cash and cash equivalents	(4,500,749)	4,480,111
Cash and cash equivalents - beginning of period	16,120,041	26,827,008
Cash and cash equivalents - end of period	11,619,292	31,307,119
Supplemental disclosures of cash activities
Cash paid for interest	150,808	222,645
Cash paid for income taxes	$ 306,992	$ 1,340,918

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Inventory (Details) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Schedule of inventory
Raw materials	$ 2,450,113	$ 690,355
Packaging supplies	1,006,334	387,599
Work in process	972,615	1,088,880
Finished goods	1,837,237	1,674,878
Total	$ 6,266,299	$ 3,841,712

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Short-Term Bank Loans (Details) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Schedule of short-term bank loans
Total short-term bank loans	$ 2,928,600	$ 4,547,200
China CITC Bank [Member] | Short-Term Bank Loan [Member]
Schedule of short-term bank loans
Total short-term bank loans	$ 2,928,600	$ 4,547,200
China CITC Bank [Member] | Short-Term Bank Loan One [Member]
Schedule of short-term bank loans
Total short-term bank loans

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Organization and Nature of Business

6 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND NATURE OF BUSINESS

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

Tianyin Pharmaceutical (the “Company” or “TPI”), was established under the laws of Delaware. The Company’s primary business is to research, manufacture and sell pharmaceutical products in China through its wholly owned subsidiaries.

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Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 102,590	$ 102,401
Treasury stock, shares	113,485	113,485
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	29,546,276	29,546,276
Common stock, shares outstanding	29,432,791	29,432,791

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Related-Party Transactions

6 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

RELATED-PARTY TRANSACTIONS

NOTE 11 – RELATED-PARTY TRANSACTIONS

On October 30, 2013, the Company obtained two loans from China CITIC Bank, for RMB 28 million (approximately $4.5 million) and RMB12 million (approximately $ 1.9 million), respectively, which matured on October 30, 2014. On October 30, 2014, the maturity dates of both loans were extended to January 30, 2015. Both loans were guaranteed by the Company’s CEO, Guoqing Jiang and third parties. (see note 6)

On October 29, 2014, Chengdu Tianyin, the Company’s indirect wholly-owned subsidiary, Grandway Group, the Company’s indirect wholly-owned subsidiary, Guoqing Jiang, the Company’s Chairman and CEO, and Shandong Buchang entered into certain Cooperation Framework Agreement, pursuant to which a joint venture, Qionglai Tianyin, was established. (see note 10) Under the Cooperation Framework Agreement, Dr. Jiang agreed to undertake joint and several liabilities with Chengdu Tianyin and Grandway Group to Shandong Buchang and Qionglai Tianyin for breaches of the agreement.

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Document and Entity Information - shares

6 Months Ended

Dec. 31, 2014

Aug. 18, 2015

Document and Entity Information [Abstract]

Entity Registrant Name

TIANYIN PHARMACEUTICAL CO., INC.

Entity Central Index Key

0001362718

Amendment Flag

true

Current Fiscal Year End Date

--06-30

Amendment Description

We are filing this amendment (“Amended Report”) to Quarterly Report on Form 10-Q for the period ended December 31, 2014 (“Original Report”) of Tianyin Pharmaceutical Co., Inc. (the “Company” or “TPI”) to correct an error in classifying certain assets of the Company due to the contribution of those assets to a joint venture pursuant to an agreement entered into by an operating subsidiary of the Company on October 29, 2014 and subsequent transfers of the controlling stake of the joint venture by the operating subsidiary in April and May 2015 pursuant to certain share transfer agreements entered into in November 2014 and May 2015 respectively, which would have resulted in the Company classifying and recognizing those assets as “Assets Held for Sale” in the unaudited consolidated financial statements included in the Original Report. This Amended Report is being filed to amend the disclosures affected by the corrected classification of the assets contributed to the joint venture and to include disclosures of the joint venture and share transfers. This Amended Report speaks as of the filing date of the Original Report, and it may not reflect events occurring after the filing of the Original Report on March 13, 2015, nor does it modify or update those disclosures presented therein, except with regard to the modifications described in this Explanatory Note. Accordingly, this Amended Report should be read in conjunction with the Original Report and our other reports filed with the Securities and Exchange Commission subsequent to the filing of our Original Report, including any amendments to those filings.

In addition, pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as a result of this Amended Report, the certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002, filed and furnished, respectively, as exhibits to the Original Report have been re-executed and re-filed as of the date of this Amended Report and are included as exhibits hereto.

Document Type

10-Q

Document Period End Date

Dec. 31, 2014

Document Fiscal Year Focus

2015

Document Fiscal Period Focus

Q2

Entity Filer Category

Smaller Reporting Company

Entity Common Stock, Shares Outstanding

29,432,791

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Inventory (Tables)

6 Months Ended

Dec. 31, 2014

Inventory [Abstract]

Schedule of inventory

	December 31, 2014		June 30, 2014
Raw materials	$	2,450,113	$	690,355
Packaging supplies		1,006,334		387,599
Work in process		972,615		1,088,880
Finished goods		1,837,237		1,674,878
	$	6,266,299	$	3,841,712

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Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Statements Of Operations [Abstract]
Sales	$ 6,691,740	$ 13,923,166	$ 16,425,121	$ 28,671,714
Cost of sales	3,041,483	7,705,869	7,696,946	16,460,902
Gross profit	3,650,257	6,217,297	8,728,175	12,210,812
Operating expenses
Selling expenses	1,216,952	2,428,675	2,845,800	4,967,919
General and administrative expenses	1,253,361	1,082,395	2,189,417	2,111,161
Research and development	914,607	252,014	2,007,250	503,328
Total operating expenses	3,384,920	3,763,084	7,042,467	7,582,408
Income from operations	265,337	2,454,213	1,685,708	4,628,404
Other income (expenses):
Interest income	13,002	86,424	13,819	108,734
Interest expense	(69,819)	(119,821)	(158,657)	(222,722)
Total other income (expenses)	(56,817)	(33,397)	(144,838)	(113,988)
Income before provision for income taxes	208,520	2,420,816	1,540,870	4,514,416
Provision for income taxes	82,336	727,757	437,164	1,361,865
Net income	$ 126,184	1,693,059	1,103,706	3,152,551
Less: Net income (loss) attributable to noncontrolling interest		(50,549)	(8,303)	(106,180)
Net income attributable to Tianyin Pharmaceutical Co., Inc.	$ 126,184	$ 1,743,608	$ 1,112,009	$ 3,258,731
Basic and diluted earnings per share	$ 0.00	$ 0.06	$ 0.04	$ 0.11
Weighted average number of common shares outstanding:
Basic and diluted	29,432,791	29,382,791	29,432,791	29,382,791

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Short-Term Bank Loans

6 Months Ended

Dec. 31, 2014

Short-Term Bank Loans [Abstract]

SHORT-TERM BANK LOANS

NOTE 6 – SHORT-TERM BANK LOANS

Short-term bank loans consist of the following:

	December 31,		June 30,
	2014		2014
On October 30, 2013, the Company obtained a loan from China CITIC Bank, which matures on October 30, 2014. The interest is calculated using an annual fixed interest rate of 7.20% and paid monthly. The loan was guaranteed by the Company’s CEO, Dr. Jiang and a third party. Loan principal of $1,618,600 was repaid in October 2014, and the remaining loan principal of $2,928,600 is in default and currently being discussed with the bank for loan renewal till July 2015.	$	2,928,600	$	4,547,200
On October 28, 2013, the Company obtained a loan with ability to borrow RMB 12 million (approximately $2 million) from China CITC Bank, which matures on October 30, 2014. The loan was guaranteed by the Company’s CEO and a third party. The loan was extended on October 30, 2014 with extended maturity date of January 30, 2015. The loan balance for both periods are zero.		-		-
Total short-term bank loans	$	2,928,600	$	4,547,200

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Prepaid Research and Development Expense

6 Months Ended

Dec. 31, 2014

Prepaid Research and Development Expense [Abstract]

PREPAID RESEARCH AND DEVELOPMENT EXPENSE

NOTE 5 – PREPAID RESEARCH AND DEVELOPMENT EXPENSE

In July 2014, the Company’s subsidiary, Chengdu Tianyin, entered into a research and development agreement with a pharmaceutical research company, Kang Lu Biomedical Co. (KL). KL is a reputable TCM research company that specializes in the product development and CFDA application process for mTCM extracts and healthcare products. Persuant to the agreement, KL will provide research and development expanding formulation varieties from Gingko Mihuan Oral Liquid (GMOL) to Capsule formulation. The total contract price is RMB 65 million (approximately $10.5 million). The first payment of RMB 39 million (approximately $6.3 million) was paid in July 2014. The project is expected to be completed before August 2017. The total contract price will be amortized over the term of the agreement which is a period of three years on a straight line basis.

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Prepaid Research and Development Expense (Details) - 1 months ended Jul. 31, 2014 - KL [Member] ¥ in Millions, $ in Millions	USD ($)	CNY (¥)
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Contract price for research and development	$ 10.5	¥ 65
Initial payment for research and development	$ 6.3	¥ 39

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Short-Term Bank Loans (Tables)

6 Months Ended

Dec. 31, 2014

Short-Term Bank Loans [Abstract]

Schedule of short-term bank loans

	December 31,		June 30,
	2014		2014
On October 30, 2013, the Company obtained a loan from China CITIC Bank, which matures on October 30, 2014. The interest is calculated using an annual fixed interest rate of 7.20% and paid monthly. The loan was guaranteed by the Company’s CEO, Dr. Jiang and a third party. Loan principal of $1,618,600 was repaid in October 2014, and the remaining loan principal of $2,928,600 is in default and currently being discussed with the bank for loan renewal till July 2015.	$	2,928,600	$	4,547,200
On October 28, 2013, the Company obtained a loan with ability to borrow RMB 12 million (approximately $2 million) from China CITC Bank, which matures on October 30, 2014. The loan was guaranteed by the Company’s CEO and a third party. The loan was extended on October 30, 2014 with extended maturity date of January 30, 2015. The loan balance for both periods are zero.		-		-
Total short-term bank loans	$	2,928,600	$	4,547,200

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Risk of Concentrations and Credit Risk

6 Months Ended

Dec. 31, 2014

Risk of Concentrations and Credit Risk [Abstract]

RISK OF CONCENTRATIONS AND CREDIT RISK

NOTE 9 – RISK OF CONCENTRATIONS AND CREDIT RISK

Concentrations

In terms of individual product sales, our major product Gingko Mihuan Oral Liquid (GMOL) represented 59% or $9.6 million of total sales for the six months ended December 31, 2014, as compared to 40% or $11.4 million of total sales for the six months ended December 31, 2013.  For the quarter ended December 31, 2014, GMOL sales represented 60% or $4.0 million as compared to 45% or $6.3 million for the quarter ended December 31, 2013.

For the six months ended December 31, 2014, one single customer accounted for 23% of the Company’s total sales compared with no customer with more than 10% of the Company’s sales for the six months ended December 31, 2013.

Purchases from one vendor accounted for 54% of the Company’s total purchases for the six months ended December 31, 2014 as compared to four vendors accounted for 18%, 14%, 12% and 11% respectively of the Company’s total purchases for the six months ended December 31, 2013.

Credit Risk

Financial instruments, which potentially subject the Company to credit risk consist principally of cash on deposit with financial institutions. Management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially sound and minimal credit risk exists with respect to these investments. Due to the state ownership of China’s majority of financial institutions, the policies that regulate the banking industry also presents a unique risk that impacts all industrial segments in China. The traditional industries such as pharmaceutical manufacturing without exception may also be affected in terms of capital expenditure for GMP certification, raw material purchases and etc.

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Income Taxes

6 Months Ended

Dec. 31, 2014

Income Taxes [Abstract]

INCOME TAXES

NOTE 7 – INCOME TAXES

The Company's subsidiary, Raygere, is incorporated in the British Virgin Islands. Under the corporate tax laws of British Virgin Islands, it is not subject to tax on income or capital gain.

The operating subsidiaries in China are all subject to 25% income tax rate. The tax write- offs and loss profit credit could only be applied to the individual subsidiaries of TPI.

In July 2006, the FASB issued ASC 740 that clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Company did not recognize any benefits in the financial statements for the fiscal year ended June 30, 2014 and for the six months ended December 31, 2014.

The comparison of income tax expense at the U.S. statutory rate of 35% in 2014 and 2013, to the Company’s effective tax is as follows:

	Six months ended December 31,
	2014			2013
U.S. Statutory rate	$	539,305		$	1,580,046
Tax rate difference between China and U.S.		(152,005	)		(450,750	)
Change in valuation allowance		49,864			232,569
Effective tax	$	437,164		$	1,361,865

The provisions for income taxes are summarized as follows:
	Six months ended December 31,
	2014		2013
Current	$	251,571	$	1,361,865
Deferred		135,729		-
Valuation allowance		49,864		-
Total	$	437,164	$	1,361,865

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Risk Factors

6 Months Ended

Dec. 31, 2014

Risk Factors [Abstract]

RISK FACTORS

NOTE 8 – RISK FACTORS

The Company's operations are carried out in the PRC. Accordingly, the Company's business, financial condition and results of operations may be adversely influenced by the political, economic and legal environments in the PRC as well as by the general state of the PRC’s economy. Specifically, the Company's business may be negatively influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

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Joint Venture

6 Months Ended

Dec. 31, 2014

Joint Venture [Abstract]

Joint Venture

NOTE 10 – Joint Venture

Cooperation Framework Agreement

On October 29, 2014, Shandong Buchang Pharmaceutical Co., Ltd. (“Shandong Buchang”), Chengdu Tianyin Pharmaceutical Co., Ltd. (“Chengdu Tianyin”), which is the Company’s indirect wholly-owned subsidiary, Grandway Group Holdings Ltd. (“Grandway Group”), which is the Company’s indirect wholly-owned subsidiary and Guoqing Jiang (“Jiang”), the Company’s Chairman and CEO, (each, a “Party”, and collectively “Parties) entered into a Cooperation Framework Agreement Regarding Chengdu Tianyin Pharmaceutical Co., Inc. (“Cooperation Framework Agreement”). Pursuant to the Cooperation Framework Agreement, the Parties agreed to establish a joint venture, Qionglai Tianyin Pharmaceutical Co., Ltd. (“Qionglai Tianyin”), with the total registered capital of RMB 200,000,000 (approximately US$32.3 million), with Chengdu Tianyin owning 95% and Shandong Buchang owning 5%. Shandong Buchang’s capital investment in Qionglai Tianyin took the form of RMB 10 million (approximately US$1.6 million), which was remitted on January 26, 2015, and Chengdu Tianyin’s capital investment in Qionglai Tianyin took the form of its buildings, land use rights, machineries and equipment of its plant located at Longquan and Qionglai, all of its patents and trademarks, and its portfolio drugs (the “Assets”).

Pursuant to the Cooperation Framework Agreement, after the establishment of Qionglai Tianyin, Shandong Buchang or a third party approved by Shandong Buchang shall enter into an agreement with Qionglai Tianyin to appoint Shandong Buchang or the third party as the exclusive distributor within China regarding all medicines transferred excluding Mycophenolate Mofetil Capsules (CFDA No. H20080819), whose exclusive distributor remains to be Chengdu Tianyin.

Following the execution of the Cooperation Framework Agreement, registration documents to establish Qionglai Tianyin was filed on November 3, 2014 and approved on January 27, 2015.

Stock Pledge Agreement

In November 2014, Chengdu Tianyin and Shandong Buchang entered into a Stock Pledge Agreement, pursuant to which the parties agreed that Chengdu Tianyin shall pledge its 95% stake of Qionglai Tianyin to Shandong Buchang as its down payment to Shandong Buchang and guarantee of performance of Chengdu Tianyin, Grandway Group and Dr. Guoqing Jiang under the Cooperation Framework Agreement.

Share Transfer Agreements

In November 2014, Shandong Buchang, Chengdu Tianyin, Qionglai Tianyin and Grandway Group entered into a Share Transfer Agreement Regarding Qionglai Tianyin Pharmaceutical Co., Ltd. (“Share Transfer Agreement”). Pursuant to the Share Transfer Agreement, after Chengdu Tianyin has completed the transfer of the Assets into Qionglai Tianyin, Chengdu Tianyin shall transfer 72% of Qionglai Tianyin’s stock to Shandong Buchang at the total price of RMB 144,000,000 (approximately US$23.2 million) which shall be paid in installments.   

Accounting Treatment

Since management has made the decision to contribute certain assets described above to Qionglai Tianyin and 72% ownership of Qionglai Tianyin will be transferred to Shandong Buchang, the assets which will be contributed to Qionglai Tianyin are classified as Assets Held for Sale on balance sheet at December 31, 2014.

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Acquisition Of Non-Controlling Interest (Details) - JCM [Member] ¥ in Millions, $ in Millions	Oct. 08, 2014 USD ($)	Oct. 08, 2014 CNY (¥)	Sep. 30, 2014
Business Acquisition [Line Items]
Percentage of Non controlling interest in subsidiary company			13.00%
Payment to acquire subsidiary company	$ 2.4	¥ 15

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Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Income Taxes [Abstract]
U.S. Statutory rate			$ 539,305	$ 1,580,046
Tax rate difference between China and U.S.			(152,005)	(450,750)
Change in valuation allowance			49,864	232,569
Effective tax	$ 82,336	$ 727,757	$ 437,164	$ 1,361,865

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Statements Of Comprehensive Income [Abstract]
Net income	$ 126,184	$ 1,693,059	$ 1,103,706	$ 3,152,551
Other comprehensive income
Foreign currency translation adjustment	173,910	435,429	174,638	1,048,091
Total other comprehensive income	173,910	435,429	174,638	1,048,091
Total Comprehensive income	$ 300,094	2,128,488	1,278,344	4,200,642
Less: Comprehensive income (loss) attributable to the noncontrolling interest		(49,912)	(8,308)	(104,386)
Comprehensive income attributable to Tianyin Pharmaceutical Co., Inc.	$ 300,094	$ 2,178,400	$ 1,286,652	$ 4,305,028

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Inventory

6 Months Ended

Dec. 31, 2014

Inventory [Abstract]

INVENTORY

NOTE 4 – INVENTORY

Inventory as of December 31, 2014 and June 30, 2014 consists of the following:

	December 31, 2014		June 30, 2014
Raw materials	$	2,450,113	$	690,355
Packaging supplies		1,006,334		387,599
Work in process		972,615		1,088,880
Finished goods		1,837,237		1,674,878
	$	6,266,299	$	3,841,712

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Income Taxes (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Income Taxes [Abstract]
Current			$ 251,571	$ 1,361,865
Deferred			135,729
Valuation allowance			49,864	$ 232,569
Total	$ 82,336	$ 727,757	$ 437,164	$ 1,361,865

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Income Taxes (Tables)

6 Months Ended

Dec. 31, 2014

Income Taxes [Abstract]

Summary of comparison of income tax expense

	Six months ended December 31,
	2014			2013
U.S. Statutory rate	$	539,305		$	1,580,046
Tax rate difference between China and U.S.		(152,005	)		(450,750	)
Change in valuation allowance		49,864			232,569
Effective tax	$	437,164		$	1,361,865

Summary of provisions for income taxes

	Six months ended December 31,
	2014		2013
Current	$	251,571	$	1,361,865
Deferred		135,729		-
Valuation allowance		49,864		-
Total	$	437,164	$	1,361,865