0001185185-19-000967.txt : 20190712 0001185185-19-000967.hdr.sgml : 20190712 20190712154610 ACCESSION NUMBER: 0001185185-19-000967 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 118 CONFORMED PERIOD OF REPORT: 20181231 FILED AS OF DATE: 20190712 DATE AS OF CHANGE: 20190712 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SMARTHEAT INC. CENTRAL INDEX KEY: 0001384135 STANDARD INDUSTRIAL CLASSIFICATION: HEATING EQUIPMENT, EXCEPT ELECTRIC & WARM AIR FURNACES [3433] IRS NUMBER: 980514768 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34246 FILM NUMBER: 19953042 BUSINESS ADDRESS: STREET 1: A-1, 10 STREET 7 STREET 2: SHENYANG ECONOMIC & TECH DEV ZONE CITY: SHENYANG STATE: F4 ZIP: 110141 BUSINESS PHONE: 86-24-2519-7699 MAIL ADDRESS: STREET 1: A-1, 10 STREET 7 STREET 2: SHENYANG ECONOMIC & TECH DEV ZONE CITY: SHENYANG STATE: F4 ZIP: 110141 FORMER COMPANY: FORMER CONFORMED NAME: Pacific Goldrim Resources, Inc. DATE OF NAME CHANGE: 20061219 10-K 1 smartheat20181231_10k.htm FORM 10-K smartheat20181231_10k.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 10-K

 


 

(Mark One)

 

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

For the fiscal year ended December 31, 2018.

OR

 

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 001-34246

 

SMARTHEAT INC.

(Exact name of registrant as specified in its charter)

 

Nevada

98 -0514768

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

60 East Ren-Min Road
Da
chaidan

(Da Qaidam Administrative Committee)
XaiXi, Qinghai Province 817000

(Address of principal executive offices)

 

Registrant’s telephone number, including area code:

+86 (097) 782-8122

 

Securities registered pursuant to Section 12(b) of the Act:

 

 Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.001

 

HEAT

 

Grey

 

Securities registered pursuant to Section 12(g) of the Act:

None

 

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes  ☐                      No  ☑

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes  ☐                      No  ☑

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”) during the preceding 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 every Interactive Data File required to be submitted 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 such files).

 Yes  ☐                      No  ☑

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

 Yes  ☐                      No  ☑

 

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

 

Large accelerated filer ☐

 

Accelerated filer ☐

Non-accelerated filer ☐

 

Smaller reporting company ☑

(Do not check if smaller reporting company)

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes  ☐                      No  ☑

 

The aggregate market value of voting common stock held by non-affiliates computed by reference to the price at which the common stock was last sold on June 30, 2018, was $0.0001 per share. Accordingly, effective as of June 30, 2018, the registrant’s aggregate market value was less than $50 million and the registrant qualifies for “smaller reporting company” status under Rule 12b-2 of the Exchange Act and is subject to the disclosure requirements and filing deadlines for smaller reporting companies.

 

As of July 1, 2019 there were 185,986,370 shares of common stock outstanding.

 

DOCUMENTS INCORPORATED BY REFERENCE:

None

 

 

 

 

  

TABLE OF CONTENTS

 

PART I

 

 

 

Item 1.

Business

1

Item 1A.

Risk Factors

14

Item 1B.

Unresolved Staff Comments

30

Item 2.

Properties

31

Item 3.

Legal Proceedings

31

Item 4.

Mine Safety Disclosures

31

 

 

 

PART II

 

 

 

Item 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

32

Item 6.

Selected Financial Data

32

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

33

Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

44

Item 8.

Financial Statements and Supplementary Data

44

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

44

Item 9A.

Controls and Procedures

44

Item 9B.

Other Information

45

 

 

 

PART III

 

 

 

Item 10.

Directors, Executive Officers and Corporate Governance

46

Item 11.

Executive Compensation

51

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

53

Item 13.

Certain Relationships and Related Transactions, and Director Independence

54

Item 14.

Principal Accounting Fees and Services

56

 

 

 

PART IV

 

 

 

Item 15.

Exhibits, Financial Statement Schedules

57

Item 16.

Form 10-K Summary

59

     

 

Exhibit Index

59

 

 

 

 

Signatures

60

 

 

NOTE ABOUT FORWARD-LOOKING STATEMENTS

 

In this Annual Report on Form 10-K, references to “SmartHeat,” the “Company,” “we,” “us,” “our” and words of similar import refer to SmartHeat Inc., unless the context requires otherwise.

 

This Annual Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  In some cases, you can identify forward-looking statements by the following words: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this report. These factors include, among others:

 

● our ability to raise capital to develop our lithium carbonate business;

● successful commercialization of our pilot brine-based boron and lithium extraction process;

● anticipated timing and results of construction and development of additional brine-based extraction plants;

● estimates of the mineral resources and mineral reserves on the properties of our sole supplier of lithium and boron raw materials;

● demand for lithium and anticipated growth in the electric vehicle market;

● estimates of and unpredictable changes to the market prices for lithium and boric acid ;

● ability of our sole supplier to maintain mining, environmental and other permits or approvals;

● the impact of increasing competition in the lithium carbonate and boric acid production businesses;

● compliance with environmental laws and regulations and changes thereto;

● government regulation of mining and extraction operations and treatment under governmental and taxation regimes;

● declines in general economic conditions in the markets where we may compete; and,

● accuracy of current budget and construction estimates.

 

You should read any other cautionary statements made in this Annual Report as being applicable to all related forward-looking statements wherever they appear in this Annual Report. We cannot assure you that the forward-looking statements in this Annual Report will prove to be accurate and therefore prospective investors are encouraged not to place undue reliance on forward-looking statements. You should read this Annual Report completely. Other than as required by law, we undertake no obligation to update or revise these forward-looking statements, even though our situation may change in the future.

 

Additional information on the various risks and uncertainties potentially affecting our operating results are discussed in this report and other documents we file with the Securities and Exchange Commission, or the SEC, or upon written request to our corporate secretary at: 60 East Ren-Min Road, Dachaidan, (Da Qaidam Administrative Committee), XaiXi, Qinghai Province, China 817000. We undertake no obligation to revise or update publicly any forward-looking statements for any reason, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements.

 

Our functional currency is the U.S. Dollar, or USD, while the functional currency of our subsidiaries in China are denominated in Chinese Yuan Renminbi, or RMB, the national currency of the People’s Republic of China, which we refer to as the PRC or China, and the functional currency of our subsidiary in Germany is denominated in Euros, or EUR. The functional currencies of our foreign operations are translated into USD for balance sheet accounts using the current exchange rates in effect as of the balance sheet date and for revenue and expense accounts using the average exchange rate during the fiscal year. See Note 2 of the consolidated financial statements included herein. 

 

 

PART I

 

Item 1. Business

 

General

 

We are a boric acid manufacturing company in the PRC. Our strategy is to expand our existing boric acid manufacturing facilities to produce lithium carbonate for the rapidly growing electric vehicle ("EV") battery market in China. We have collaborated with our director, Xing Hai Li, to build a prototype production line that is capable of producing up to 1,000 tons of lithium carbonate and 2,000 tons of boric acid per year which we plan to expand to 30,000 tons of lithium carbonate and 60,000 tons of boric acid per year over the next five years which we expect to be funded by internal growth, debt and equity financing of approximately $180,000,000. According to Fastmarkets, the May 2019 price for battery grade lithium carbonate in China was between 70,000 – 77,000 RMB per ton (approximately $10,000 – $11,000 per ton) and between 4,530 and 4,620 RMB per ton (approximately $650 to $670 per ton). We source our ore and brine exclusively from our affiliated company located in nearby Dachaidan Lake and its surrounding areas.

 

We currently operate our production facility through our wholly owned subsidiary, Qing Hai Mid-Heaven Boron & Lithium Technology Company, Ltd. (“Qinghai Technology”). Qinghai Technology manufactures and sells boric acid and related compounds for industrial and consumer use. We purchase and process mineral rich ore and brine exclusively from our affiliated mining company Qing Hai Mid-Heaven Boron & Lithium Mining Company, Ltd. (“Qinghai Mining”) and are one of the leading producers of boric acid in China with a production capacity of approximately 15,000 tons per year of boric acid or approximately 62% of the output in the in Qinghai Province and 10.7% of total production in China according to an annual report published by the China Inorganic Salts Industry Association (CISIA). Our boric acid is sold to industries located throughout the PRC. We have a unique “one step production” methodology in China which we believe gives us a significant advantage over our competitors.

 

Our Strategy

 

We believe that growth in the Electric Vehicle (“EV”) industry will drive significant growth in the demand for lithium carbonate. Qinghai Technology successfully completed a pilot brine extraction project with a partner where it extracted and produced industrial grade lithium carbonate and boric acid from the mineral rich waters of Dachaidan Lake located approximately 8 kilometers from its manufacturing facility.

 

Qinghai Technology plans to process the deposits of lithium harvested from brine sourced out of Dachaidan Lake and its surrounding areas. We plan to leverage our position as leading producer of boric acid and boron in the Qinghai-Tibetan Plateau in China, leverage our knowledge of mineral processing in boric acid, boron and related minerals, develop our supply and sales chain for battery grade lithium carbonate and upgrade our facilities and production processes to produce lithium carbonate for batteries used in China’s rapidly growing EV’s. We will need to the funding for the first phase of our development to produce 10,000 tons of lithium carbonate per year will initially require approximately $20,000,000 and an additional $160,000,000 to expand to 30,000 tons of lithium carbonate and 60,000 tons of boric acid per year.

 

We believe our current production experience, exclusive access to local natural resources, and current financial condition uniquely position us to transition our business into being a unique, profitable, pure-play source of lithium to the China markets.

 

Our Headquarters in Haxi 

 

 

(Source: Qinghai Technology)

 

 

Our Boron and Lithium Business

 

Boron

 

Qinghai Technology has the production capacity of approximately 15,000 tons of boric acid and related chemicals per year by using the traditional extraction processes of crushing ore and processing the resultant dust through its facilities. We believe our facility produced approximately 10.7% of the total national output in the PRC in 2018 according to an annual report produced by the CISA. We plan to replace the crushed ore processing with processing brine sourced from nearby Dachaidan Lake by the middle of 2020 subject to financing. We plan to expand current ore processing production capacity from 15,000 tons annually to 60,000 tons of boric acid annually.

 

China and the US are the largest consumers of boric acid. The major end users of boric acid are manufacturers of ceramic and tiles and fiberglass which accounts for nearly 50% of the global consumption of boric acid. Pharmaceuticals, agriculture, cosmetics, and wood preservation industries are the other end users of our boric acid. The global boric acid market is anticipated to grow at a CAGR of 5.55% during the period from 2018 to-2022.(Source: Tecnivo “Huge Demand in Boric Acid Compound Market 2019-2025”) There is a limited set of competitors in the boric acid and boron market because supplies are very limited which consist of Borax Morarji, Gujarat Boron Derivatives Private, Mizushima Ferroalloy, Russian Bor, Rio Tinto Group, Searles Valley Minerals and Tomiyama Pure. (Source: Tecnivo “Top 6 Vendors in the Global Boric Acid Market from 2016 to 2020”). We also plan to improve our production process to produce boron for will be hardened steel used in nuclear plants, heavy machinery cars, trucks and aircraft.

 

Qinghai Technology has historically sold all of the material it has produced, and we believe the trend will continue as it shifts its production away from crushed ore to the brine refinement process. In 2018, Qinghai Technology produced approximately 10,500 tons of boric acid from operations due to a two-month closure due to plant maintenance. It expects to sell all of the boric acid it produces in 2019. In addition, we believe that margins and purity will improve due to the lower cost of production, improved reclamation processes and reduction of hazardous waste material. Qinghai Technology’s boric acid in May of 2019 sold for approximately RMB 4,350 (USD 630) per ton which we expect to increase to approximately RMB 7,000 (USD 1,015) per ton due to improvement in the purity of our product with new production techniques.

 

Qinghai Technology uses the one-step method to produce boric acid. Boron ore is mixed with sulfuric acid, processed through a mixing process and heated until boric acid powder is produced. Qinghai Technology obtains sulfuric acid in both pure form and recycled sulfuric acid disposed as a hazardous waste product by industrial users.

 

The current consumption of boric acid in the Chinese market is about 550,000 tons per year with a market value of 1.7 billion yuan, or approximately $247 million with imports consisting of approximately 234,000 tons. (Source: Annual Report by CISIA). We currently distribute or boric acid through the following industrial distribution channels: Dingjia Zhixin (鼎佳智信), Sichuan Dawei (四川达威), Chengdu Fuyang (成都蜀阳), Del Bor Industry (德尔硼业), Jinchang Xi Li (金昌西立) and Xinjiang Huier Agricultural Group (新疆慧尔农业集团) which account for our largest customers.

 

Qinghai Technology’s Boric Acid Manufacturing Plant – Haxi

(Source: Qinghai Technology)

 

 

 

Lithium 

 

Our Lithium business will be designed to produce lithium carbonate for the EV battery markets in China. We believe that when we establish our brine extraction manufacturing facilities that we will be a competitive source of low-cost producer lithium carbonate producer for use by battery manufactures in China. Most of our local competitors obtain raw materials typically consisting of spodumene (lithium ore) from outside of China in order to produce lithium carbonate. We believe we will be one of the few local China based lithium carbonate producers with a local supply of raw materials making us a pure-play China based lithium carbonate producer for the local EV battery market.

 

Production of battery grade lithium carbonate is a priority for China’s national industrial policy and is in line with the Qinghai province's economic development policy. Source: Qing Hai Province government’s guide document (2018 No 41)“The guideline for improvement of Lithium Industry in Qing Hai Province” issued by Qing Hai Province Government Office) It plays an important role and practical significance for promoting the development of the local economy and the extension of the industrial chain. We believe our lithium carbonate project will receive favorable tax incentives and be able to operate at high margins. We have inexpensive sources of electricity, coal, natural gas resources and labor resources to produce our products. Brine processing technology is also more environmentally friendly and reliable than processing ore obtained from traditional strip-mining methods which reduces our expenses for reclamation.

 

Qinghai Mining plans to transport evaporated brine from its brine pools to our processing plant. The brine will be treated with chemicals to separate the boron from the lithium and transferred to two different assembly lines where they are further processed into boric acid, boron and related compounds and into lithium carbonate. The process will be divided into two steps. In the first step, the boron extractant will be used to extract boron to produce crude boric acid, and then sent to the existing boric acid factory for finishing to produce refined boric acid; the second step will use lithium extractant to extract lithium, and after extracting lithium, the battery-grade lithium carbonate will be produced by precipitation method.

 

The extraction process of lithium from brine pools involve several transitions between ponds. First the brine material will be pumped from underground brine wells into a pond where itis expected to evaporate allowing it to concentrate. Then the concentrated brine will be pumped to another pond where sodium chloride will crystalize and precipitate. The brine is then moved to another ponds where more sodium chloride precipitation occurs and then slaked lime will be added they are depleted, leaving a brine consisting of approximately 0.5% lithium. The brine is transported by underground and over ground piping system to Qinghai Technology where lithium carbonate (Li2CO3) is extracted

 

Lithium is typically extracted from the mineral spodumene and from brine-lakes, salt-pan deposits or salt flats. The extraction process of lithium from brine-lakes requires less energy and lower production costs than spodumene ore deposits.

 

Local Brine Pool - - source of lithium and boron raw materials owned by Qinghai Mining

 

(Source – Qinghai Mining)

 

 

Pilot Brine Processing Assembly Line for Lithium Carbonate and Boric Acid

 

 

If we are successful in our funding efforts, we plan to locate the operations in a new, nearby facility located in the Boric Chemical Industrial Zone in Haxi. As a qualified business under the China Government’s strategy of Develop-the-West, from January 1, 2011 through December 31, 2020, all the qualified business including Qinghai Technology is subject to a reduced income tax rate of 15% compared to a national customary rate of 25%. Each of the three facilities will house brine processing plants expected to produce 10,000 tons of lithium carbonate and 20,000 tons of boric acid, boron and related compounds per year.

 

We received all of our environmental permits from Haixi Environmental Protection Bureau on April 2, 2011 (Xihuanzi (2011)( No. 63)and production permits to commence our new brine processing business in Haxi) We plan to initially establish a production line producing 3,000 tons of lithium carbonate and 6,000 tons of boron acid annually which will require initial funding of approximately $20,000,000. We expect to produce 10,000 tons of lithium carbonate and 20,000 tons of boric acid in 2020 if we are able to meet our funding target of an additional $40,000,000. In the third phase of our development plans, we plan to raise an additional $120,000,000 of financing to produce 30,000 tons of lithium carbonate for EV batteries and 60,000 tons of boric acid. According to Fastmarkets, the May 2019 price for battery grade lithium carbonate in China was between 70,000 – 77,000 RMB per ton (approximately $10,000 – $11,000 per ton) and between 4,530 and 4,620 RMB per ton (approximately $650 to $670 per ton) for boric acid.

 

First of Three Proposed New Manufacturing Facilities

 

 

(Source: Qinghai Technology)

 

 

 

Qinghai Mining

 

Qinghai Technology purchases all of its lithium and boron based raw materials consisting of ore and brine from our affiliated company Qinghai Mining. Our Chairman and the General Manager of Qinghai Technology owns approximately76% of Qinghai Mining and one of our principal stockholders and brother of our Chairman, Mr. Jian Zhang, owns approximately 21%.Qinghai Mining.

 

 

Qinghai Technology has signed an exclusive agreement with Qinghai Mining to purchase all of the boron and minerals produced by them. Under the terms of the agreement.….

 

Mid -Haven Mining has the exclusive right to mine minerals, including boron and lithium ore and brine, from an area of 35.6975 kilometers in Dichaidan (Haixi) in the Qinghai Province which is in the heart of the Quinghai-Tibet Plateau. The area is rich in boron, lithium, magnesium and bromide found in local ore deposits and in mineral rich brine pools. -Haven Mining has mining rights until 2034 for existing properties with an option to extend an additional 20 years. The properties are reviewed every five years to ensure compliance with the mining rights.

 

Topographical map of Haixi and Lake Dichaidan the location of the brine pools.

 

(Source Google Maps & Qinghai Mining)

 

Competition

 

The global lithium market consists of producers primarily located in the Americas, Asia and Australia. Our competitors supplying lithium compounds include Livent Corporation, Sociedad Quimica y Minera de Chile S.A., Sichuan Tianqi Lithium, and Jiangxi Ganfeng Lithium. Competition in the lithium market is largely based on product quality, product diversity, reliability of supply and customer service. In china our principal competitors are the Yahua Group, Tainqui Lithium and Gangfen Lithium

 

Expansion of our Production Capacities

 

Global electric vehicle sales grew from 1.2 million units in 2012 to 3.0 million units in 2017, representing a compound annual growth rate (CAGR) of 19%, and is expected to reach 8.6 million units by 2022, representing a CAGR of 23%, according to CRU International Limited. The Chinese government has also been focusing on developing the new-energy vehicle industry and has introduced generous incentives to encourage purchases of electric vehicles. From 2016 to 2017, the demand for lithium-based batteries shifted from a focus on quantity to quality and we believe there is a shortage in supply of high quality lithium batteries but an excess supply of low quality lithium batteries.

 

We plan to further modernize and expand our facilities, plant and brine extraction process at of Qinghai Technology to increase lithium carbonate production to 30,000 tons per year and boric acid production to approximately 60,000 tons per year. In order to reach these production targets, we and our subsidiaries will embark on a capital improvement project to raise approximately $180,000,000 in equity, debt, bank funding and government subsidies in order to open a new three building facility and production line located in the Boron Chemical Industrial Zone in Haixi.

 

Qinghai Technology and Qinghai Mining have received all necessary commercial, environmental and water extraction rights for the commercialization of lithium carbonate and boric acid from Dichaidan Lake.

 

As a qualified business under the China Government’s strategy of Develop-the-West, from January 1, 2011 through December 31, 2020, all the qualified business including Qinghai Technology is subject to a reduced income tax rate of 15% compared to a national customary rate of 25%.

 

 

Our History

 

We were originally incorporated as Pacific Goldrim Resources, Inc.on August 4, 2006, in the State of Nevada and, at that time, had little or no operations. On April 14, 2008 we changed our name to SmartHeat Inc. and acquired all of the equity interests in Shenyang Taiyu Machinery & Electronic Equipment Co., Ltd. (“Taiyu”), at that time a leading developer of plate heat exchangers and heat pumps in China. In December of 2014, we sold Taiyu to members of our former management team. Since that time the company serviced existing customers, sold existing inventory and wound down its heat pump business operations after filing for bankruptcy protection in the PRC in 2016.

 

On December 31, 2018, we acquired as our wholly owned subsidiary, Mid-Heaven Sincerity International Resources Investment Co., Ltd, and its wholly owned subsidiary Qinghai Technology in exchange for 141,919,034 shares of our Common Stock in a tax-free reorganization. We expect to discontinue or sell the remainder of our prior business operations during our 2019 fiscal year.

 

We were originally formed as a state owned entity in 1954 producing boron related products and filed for bankruptcy in 2000. Our Chief Executive Officer purchased the assets of the company and founded Qing-Hai Zhong Tian Boron & Lithium Mining Co., Ltd on March 6th 2001. Qinghai Technology was spun out of Qing-Hai Zhong Tian Boron & Lithium Mining Co., Ltd on December 20, 2018 and Qing-Hai Zhong Tian Boron & Lithium Mining Co., Ltd changed its name to Qing Hai Mid-Heaven Boron & Lithium Mining Company, Ltd.

 

Our current corporate structure is set forth in the following diagram:

 

 

Regulation

 

We are subject to the following regulations of the SEC and applicable securities laws, rules and regulations:

 

Smaller Reporting Company

 

We are subject to the reporting requirements of Section 13 of the Exchange Act, and subject to the disclosure requirements of Regulation S-K of the SEC, as a “smaller reporting company.”  That designation will relieve us of some of the informational requirements of Regulation S-K applicable to larger companies

 

Sarbanes/Oxley Act

 

We are also subject to the Sarbanes/Oxley Act of 2002.  The Sarbanes/Oxley Act created an independent accounting oversight board to oversee the conduct of auditors of public companies and strengthen auditor independence.  It also requires steps to enhance the direct responsibility of senior members of management for financial reporting and for the quality of financial disclosures made by public companies; establishes clear statutory rules to limit, and to expose to public view, possible conflicts of interest affecting securities analysts; creates guidelines for audit committee members’ appointment, compensation and oversight of the work of public companies’ auditors; management assessment of our internal controls; auditor attestation to management’s conclusions about internal controls; prohibits certain insider trading during pension fund blackout periods; requires companies and auditors to evaluate internal controls and procedures; and establishes a federal crime of securities fraud, among other provisions. Compliance with the requirements of the Sarbanes/Oxley Act will substantially increase our legal and accounting costs.

 

Exchange Act Reporting Requirements

 

Section 14(a) of the Exchange Act requires all companies with securities registered pursuant to Section 12(g) of the Exchange Act to comply with the rules and regulations of the SEC regarding proxy solicitations, as outlined in Regulation 14A. Matters submitted to stockholders at special or annual meetings thereof or pursuant to a written consent will require us to provide our stockholders with the information outlined in Schedules 14A or 14C of Regulation 14; preliminary copies of this information must be submitted to the SEC at least 10 days prior to the date that definitive copies of this information are forwarded to our stockholders.

 

We are also required to file Annual Reports on SEC Form 10-K and Quarterly Reports on SEC Form 10-Q with the SEC on a regular basis, and will be required to timely disclose certain material events (e.g., changes in corporate control; acquisitions or dispositions of a significant amount of assets other than in the ordinary course of business; and bankruptcy) in a Current Report on SEC Form 8-K.

 

Laws of the Peoples Republic of China

 

Our subsidiaries located in China are subject to national, provincial and local laws of the PRC. The legal system in China is a civil law system. Unlike the common law system, the civil law system is based on written statutes in which decided legal cases have little value as precedents. In 1979, China began to promulgate a comprehensive system of laws and has since introduced many laws and regulations to provide general guidance on economic and business practices in China and to regulate foreign investment. Progress has been made in the promulgation of laws and regulations dealing with economic and commercial matters, but these recently enacted laws and regulations may not cover all aspects of business activities in China sufficiently. In particular, because these laws and regulations are relatively new, the interpretation and enforcement of these laws and regulations involve uncertainties, which may limit legal protections available to our subsidiaries. In addition, the PRC legal system is based in part on government policies and internal rules (some of which are not published on a timely basis or at all) that may have a retroactive effect. As a result, there may be certain instances when we may not be aware of our subsidiaries violation of these policies and rules until sometime after such violation. In addition, any litigation in China may be protracted and result in substantial costs and diversion of resources and management attention.

 

 

The PRC government has enacted some laws and regulations dealing with matters such as corporate organization and governance, foreign investment, commerce, taxation and trade. Our subsidiaries’ ability to enforce commercial claims or to resolve commercial disputes under these laws and regulations is unpredictable, however, because the implementation, interpretation and enforcement of these laws and regulations is limited and, given their relative newness, involve uncertainties. For example, contracts governed by PRC law tend to contain less detail than those under U.S. law and generally are not as comprehensive in defining the rights and obligations of the contracting parties. Consequently, contracts in China are more vulnerable to disputes and legal challenges than those in the U.S. In addition, contract interpretation and enforcement in China is not as developed as in the U.S., and the result of any contract dispute is subject to significant uncertainties. Our subsidiaries currently are not subject to any contract dispute, but we cannot assure you that our subsidiaries will not be subject to future contract disputes with our suppliers, franchisees and other customers under contracts governed by PRC law, and if such disputes arise, we cannot assure you that our subsidiaries will prevail.

 

Industry Polices

 

Foreign investors and foreign-funded enterprises investing in China are required to comply with the Catalog for Guiding on Foreign Investments in Industries (《外商投資產業指導目錄》) which was initially promulgated by the National Planning Commission (國家計劃委員會), the State Economic and Trade Commission (國家經濟 貿易委員會) and the Ministry of Foreign Trade and Economic Cooperation (對外貿易經濟合作部) on June 28, 1995 and subsequently amended on December 31, 2001, March 11, 2002, November 30, 2004, October 31, 2007, December 24, 2011 and March 10, 2015. The latest amendment was made on June 28, 2017 and came into effect on July 28, 2017. The catalog for guiding on foreign investments has served as domestic management and guidance on foreign investments for a long time. It classifies industries into three basic types: Encouraged, Restricted and Prohibited. The Catalogue divides industries into three categories: “encouraged,” “restricted,” and “eliminated” for investment. Industries not listed in the Catalogue are generally deemed as falling into a fourth category, “permitted.”.

 

Domestic industry development mainly follows the guidance on relevant industry structures introduced by the NDRC. According to the Notice of the National Development and Reform Commission [2017] No. 1 —— Guiding Catalog of Key Products and Services for Strategic Emerging Industries (2016) (《國家發展和改革委員會公告2017年第1號——戰略性新興產業重點產品和服務指導目錄(2016版)》) promulgated and implemented by the National Development and Reform Commission on January 25, 2017 lithium and boron extracting from carbonate-type brine rich in lithium and boron fall into the key products and services in strategic emerging industries. According to the Guiding Catalog for Industrial Restructuring (2011 Edition) (《產業結構調整指導目錄(2011年本)》), which was promulgated by the National Development and Reform Commission on March 27, 2011, with the latest amendment on February 16, 2013, and was implemented on May 1, 2013, exploration and comprehensive use of scarce chemical mineral resources, such as lithium and boron fall into the state-encouraged industries.

 

Regulations on Tax

 

Our business operations are governed primarily by tax laws in the PRC. A description of the material tax consequences applicable to holders of our common shares may be found in the section titled “Item 10. Additional Information.-E. Taxation.” For more information regarding the impact of the PRC Enterprise Income Tax Law, see “Risk Factors — Under the Enterprise Income Tax Law, we may be classified as a “Resident Enterprise” of China. Such classification will likely result in unfavorable tax consequences to us and our non-PRC stockholders.”

 

Foreign Exchange Regulation

 

The principal regulations governing foreign currency exchange in China are the Foreign Exchange Administration Regulations. Under the PRC foreign exchange regulations, payments of current account items, such as profit distributions and trade and service-related foreign exchange transactions, may be made in foreign currencies without prior approval from SAFE by complying with certain procedural requirements. By contrast, approval from or registration with appropriate government authorities is required where RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of foreign currency-denominated loans or foreign currency is to be remitted into China under the capital account, such as a capital increase or foreign currency loans to our PRC subsidiaries.

 

 

In August 2008, SAFE issued the Circular on the Relevant Operating Issues Concerning the Improvement of the Administration of the Payment and Settlement of Foreign Currency Capital of Foreign-Invested Enterprises, or SAFE Circular 142, regulating the conversion by a foreign-invested enterprise of foreign currency-registered capital into RMB by restricting how the converted RMB may be used. In addition, SAFE promulgated Circular 45 on November 9, 2011 in order to clarify the application of SAFE Circular 142. Under SAFE Circular 142 and Circular 45, the RMB capital converted from foreign currency registered capital of a foreign-invested enterprise may only be used for purposes within the business scope approved by the applicable government authority and may not be used for equity investments within the PRC. In addition, SAFE strengthened its oversight of the flow and use of the RMB capital converted from foreign currency registered capital of foreign-invested enterprises. The use of such RMB capital may not be changed without SAFE’s approval, and such RMB capital may not in any case be used to repay RMB loans if the proceeds of such loans have not been used.

 

In November 2012, SAFE promulgated the Circular of Further Improving and Adjusting Foreign Exchange Administration Policies on Foreign Direct Investment, which substantially amends and simplifies the current foreign exchange procedure. Pursuant to this circular, the opening of various special purpose foreign exchange accounts, such as pre-establishment expenses accounts, foreign exchange capital accounts and guarantee accounts, the reinvestment of RMB proceeds by foreign investors in the PRC, and remittance of foreign exchange profits and dividends by a foreign-invested enterprise to its foreign shareholders no longer require the approval or verification of SAFE, and multiple capital accounts for the same entity may be opened in different provinces, which was not possible previously. In addition, SAFE promulgated the Circular on Printing and Distributing the Provisions on Foreign Exchange Administration over Domestic Direct Investment by Foreign Investors and the Supporting Documents in May 2013, which specifies that the administration by SAFE or its local branches over direct investment by foreign investors in the PRC shall be conducted by way of registration and banks shall process foreign exchange business relating to the direct investment in the PRC based on the registration information provided by SAFE and its branches.

 

In July 2014, SAFE decided to further reform the foreign exchange administration system in order to satisfy and facilitate the business and capital operations of foreign invested enterprises, and issued the Circular on the Relevant Issues Concerning the Launch of Reforming Trial of the Administration Model of the Settlement of Foreign Currency Capital of Foreign-Invested Enterprises in Certain Areas, or Circular 36, on August 4, 2014. This circular suspends the application of Circular 142 in certain areas and allows a foreign-invested enterprise registered in such areas to use the Renminbi capital converted from foreign currency registered capital for equity investments within the PRC.

 

On March 30, 2015, SAFE released the Notice on the Reform of the Management Method for the Settlement of Foreign Exchange Capital of Foreign-invested Enterprises, or Circular 19, which has made certain adjustments to some regulatory requirements on the settlement of foreign exchange capital of foreign-invested enterprises, lifted some foreign exchange restrictions under Circular 142, and annulled Circular 142 and Circular 36. However, Circular 19 continues to, prohibit foreign-invested enterprises from, among other things, using Renminbi fund converted from its foreign exchange capitals for expenditure beyond its business scope, providing entrusted loans or repaying loans between non-financial enterprises.

 

On June 19, 2016, SAFE issued the Circular of the State Administration of Foreign Exchange on Reforming and Regulating Policies on the Control over Foreign Exchange Settlement of Capital Accounts, or Circular 16, which took effect on the same day. Compared to Circular 19, Circular 16 not only provides that, in addition to foreign exchange capital, foreign debt funds and proceeds remitted from foreign listings should also be subject to the discretional foreign exchange settlement, but also lifted the restriction, that foreign exchange capital under the capital accounts and the corresponding Renminbi capital obtained from foreign exchange settlement should not be used for repaying the inter-enterprise borrowings (including advances by the third party) or repaying the bank loans in Renminbi that have been sub-lent to the third party.

 

SAFE Circular 37

 

In July 2014, SAFE issued SAFE Circular 37, which supersedes SAFE Circular 75, and requires that PRC citizens or residents must register with the relevant local SAFE branch before making capital contribution to any offshore entity directly established or indirectly controlled by that PRC citizen or resident for the purpose of investment or financing and with onshore or offshore assets or equity interests legally owned by that PRC citizen or resident. In addition, the SAFE registrations are required to be updated with local SAFE branch with respect to that offshore special purpose company in connection with the change of its basic information, such as its company name, business term, shareholding by individual PRC citizens or residents, merger, or division and, with respect to the individual PRC citizens or residents in case of any increases or decreases of capital in that offshore special purpose company, or share transfers or swaps by the individual PRC citizens or residents.

 

 

Share Option Rules

 

Under the Administration Measures on Individual Foreign Exchange Control issued by the PBOC on December 25, 2006, all foreign exchange matters involved in employee share ownership plans and share option plans in which PRC citizens participate require approval from SAFE or its authorized branch. In addition, under the Notices on Issues concerning the Foreign Exchange Administration for Domestic Individuals Participating in Share Incentive Plans of Overseas Publicly-Listed Companies, or the Share Option Rules, issued by SAFE on February 15, 2012, PRC residents who are granted shares or share options by companies listed on overseas stock exchanges under share incentive plans are required to (i) register with SAFE or its local branches, (ii) retain a qualified PRC agent, which may be a PRC subsidiary of the overseas listed company or another qualified institution selected by the PRC subsidiary, to conduct the SAFE registration and other procedures with respect to the share incentive plans on behalf of the participants, and (iii) retain an overseas institution to handle matters in connection with their exercise of share options, purchase and sale of shares or interests and funds transfers. We will make efforts to comply with these requirements.

 

Regulation of Dividend Distribution

 

The principal laws, rules and regulations governing dividend distribution by foreign-invested enterprises in the PRC are the Company Law of the PRC, as amended, the Wholly Foreign-owned Enterprise Law and its implementation regulations and the Equity Joint Venture Law and its implementation regulations. Under these laws, rules and regulations, foreign-invested enterprises may pay dividends only out of their accumulated profit, if any, as determined in accordance with PRC accounting standards and regulations. Both PRC domestic companies and wholly-foreign owned PRC enterprises are required to set aside as general reserves at least 10% of their after-tax profit, until the cumulative amount of such reserves reaches 50% of their registered capital. A PRC company is not permitted to distribute any profits until any losses from prior fiscal years have been offset. Profits retained from prior fiscal years may be distributed together with distributable profits from the current fiscal year.

 

Labor Laws and Social Insurance

 

Pursuant to the PRC Labor Law and the PRC Labor Contract Law, employers must execute written labor contracts with full-time employees. All employers must comply with local minimum wage standards. Violations of the PRC Labor Contract Law and the PRC Labor Law may result in the imposition of fines and other administrative and criminal liability in the case of serious violations.

 

In addition, according to the PRC Social Insurance Law, employers in China must provide employees with welfare schemes covering pension insurance, unemployment insurance, maternity insurance, work-related injury insurance, medical insurance and housing funds.

 

PRC Laws and Regulations on Hazardous Chemicals

 

1. Administrative Measures for the Registration of Hazardous Chemicals (《危險化學品登記管理辦法)

 

According to the Administrative Measures for the Registration of Hazardous Chemicals (《危險化學品登記管理辦法》) promulgated by the State Administration of Work Safety of the People’s Republic of China (中華人民共和國國家安全生產監督管理總局) on July 1 , 2012 and effective from August 1 , 2012, a newly established production enterprise of hazardous chemicals shall proceed with the hazardous chemicals registration procedure before the completion and acceptance of the project. The Hazardous Chemicals Registration Certificate (危險化學品登記證) is valid for three years. The Hazardous Chemicals Registration Certificate (危險化學品登記證) should set out details such as the nature of the enterprise (hazardous chemicals producer, hazardous chemicals exporter or a hazardous chemicals producer and exporter), the registered products and the validity period. An enterprise which engages in the production and storage of hazardous chemicals and an enterprise using such quantities of hyper-toxic and other hazardous chemicals which constitute a material source of danger shall register the hazardous chemicals according to the national laws. The Registration Center for Chemicals under the State Administration of Work Safety shall undertake the specific work and technical management of registration of hazardous chemicals throughout the country. Hazardous chemicals registration offices or hazardous chemicals registration centers established by work safety supervision and administration departments under people’s governments of all provinces, autonomous regions and municipalities directly under the Central Government shall undertake the specific work and technical management of registration of hazardous chemicals within their respective administrative regions.

 

 

2. Regulations on Safety Management of Hazardous Chemicals (《危險化學品安全管理條例》)

 

The Regulations on Safety Management of Hazardous Chemicals (《危險化學品安全管理條例》) were promulgated by the State Council on January 26, 2002 and latest amended on December 7, 2013, which stipulate the administrative and supervisory rules for safety production, storage, use, operation and transportation of hazardous chemicals. Hazardous chemicals include hyper-toxic and other hazardous chemicals that are toxic, corrosive, explosive, flammable or accelerative, and that damage human health, facilities and environment. The relevant governmental authorities will promulgate and adjust the Catalog of Hazardous Chemicals from time to time. An enterprise which engages in the production of hazardous chemicals must obtain the Safety Production Permit for Hazardous Chemicals (危險化學品安全生產許可證) prior to the commencement of production. An enterprise producing hazardous chemicals listed in the Catalog of the Industrial Products that are subject to the production licensing system shall obtain the Production License for Industrial Products pursuant to the Regulations of the People’s Republic of China on Administration of Production Licensing of Industrial Products (《中華人民共和國工業產品生產許可證管理條例》). The safety conditions of newly built, altered or expanded construction projects for the production and storage of hazardous chemicals are subject to the scrutiny of the work safety administrative department. In the event that the enterprise undertaking such construction projects fails to meet the safety conditions, the relevant work safety administrative department shall order such enterprise to cease operation and rectify within the specified period. An enterprise which engages in the operation including storage and operation of hazardous chemicals must obtain the Operation Permit for Hazardous Chemicals prior to the commencement of production. If an enterprise engaging in the production of hazardous chemicals which is established according to the laws sells its hazardous chemicals produced by itself in the factory, there is no need to obtain the Operation Permit for Hazardous Chemicals (危險化學品經營許可). If a chemical enterprise uses hazardous chemicals for production and the quantities reaches the prescribed threshold, the enterprise shall obtain the Permits for Safety Use of Hazardous Chemicals (危險化學品安全使用許可證) pursuant to the Regulations on Safety Management of Hazardous Chemicals (《危險化學品安全管理條例》), save for those enterprises that belong to enterprises engaging in the production of hazardous chemicals. An enterprise which engages in road transportation of hazardous chemicals should comply with provisions of laws and administrative regulations on road transport, obtain the license for road transportation of hazardous chemicals, and proceed with registration procedures with the Administrative Department of Industry and Commerce (工商行政管理部門). An enterprise engaging in road transportation of hazardous chemicals should be equipped with full-time safety management personnel

 

3. Regulations of the People’s Republic of China on Administration of Production Licensing of Industrial Products (《中華人民共和國工業產品生產許可證管理條例》) and the Decision of the State Council on Adjusting the Catalog for Managing the Production License for Industrial Products and Piloting the Simplified Approval Procedure (《國務院關於調整工業產品生產許可證管理目錄和試行簡化審批程序的決定》)

 

The Regulations of the People’s Republic of China on Administration of Production Licensing of Industrial Products (《中華人民共和國工業產品生產許可證管理條例》) were promulgated by the State Council and became effective on September 1, 2005, and the Decision of the State Council on Adjusting the Catalog for Managing the Production License for Industrial Products and Piloting the Simplified Approval Procedure (《國務院關於調整工業產品生產許可證管理目錄和試行簡化審批程序的決定》) was promulgated by the State Council and became effective on June 24, 2017. According to the aforesaid regulations and Catalog, an enterprise which engages in the production of hazardous chemicals needs to obtain the Production License for Industrial Products (工業生產許可證).

 

4. Regulations on Safety Production Permit (《安全生產許可證條例》) and Measures for Implementation of 4. Safety Production Permit of Hazardous Chemicals Production Enterprises(《危險化學品生產企業安全生產許可證實施辦法》)

 

The Regulations on Safety Production Permit (《安全生產許可證條例》) were promulgated by the State Council and became effective on January 13, 2004 and were latest revised on July 29, 2014. The Measures for Implementation of Safety Production Permit of Hazardous Chemicals Production Enterprises (《危險化學品生產企業安全生產許可證實施辦法》) were promulgated by the State Administration of Work Safety of the PRC and became effective on December 1, 2011 and were revised on May 27, 2015 and March 6, 2017. According to the aforesaid regulations and measures, an enterprise which engages in the production of final products or intermediate products listed in the Catalog of Hazardous Chemicals (危險化學品目錄) must obtain the Safety Production Permit for Hazardous Chemicals (危險化學品安全生產許可證) prior to the commencement of production of hazardous chemicals.

 

 

PRC Laws and Regulations Relating to Environmental Protection

 

The Company may generate pollutants in its course of production, and shall be strictly abide by the environmental protection laws and regulations in the PRC.

 

1. Environmental Protection Law of the People’s Republic of China (《中華人民共和國環境保護法》)

 

According to the Environmental Protection Law of the People’s Republic of China (《中華人民共和國環境保護法》) promulgated by the SCNPC on December 26, 1989 and effective on the same day, and amended on April 24, 2014, the construction of any project that causes pollution to the environment must comply with the regulations on environment protection relating to the construction projects. The environmental protection facilities for construction projects shall be designed, constructed and put into operation simultaneously with the main works. The PRC government implements a system for administering licenses for the discharge of pollutants under the provisions of the laws. Enterprises, units and other production operators under the licensing management for pollutant discharge should only discharge pollutants which satisfy the requirements of pollutant discharge license. Those which have not yet obtained the pollutant discharge license may not discharge pollutants. Pollutant-discharging enterprises, units and other production operators shall pay sewage fees pursuant to the relevant provisions of the State.

 

2. Law of the People’s Republic of China on Environmental Impact Assessment (《中華人民共和國環境影響評價法》)

 

According to the Law of the People’s Republic of China on Environmental Impact Assessment (《中華人

民共和國環境影響評價法》) promulgated by the SCNPC on October 28, 2002 and latest amended on July 2, 2016, construction entities shall implement the following procedures for their construction projects in accordance with Classification of Construction Project Lists for Environmental Impact Assessments (建設項目環境影響評價分類管理名錄) promulgated by the Ministry of Environmental Protection: (i) in case the environmental impact is significant, full assessment reports of environmental impacts shall be prepared; (ii) in case the environmental impact is mild, reports containing environmental impact analyzes and specific assessments shall be prepared; and (iii) in case the environmental impact is minimal, environmental impacts registration forms shall be submitted without any assessments. The project in case construction may not proceed its environmental impact assessment documents fail to pass the review of the competent authority in accordance with the laws and regulations or which are disapproved after review.

 

3. Law of the People’s Republic of China on Prevention and Control of Water Pollution (《中華人民共和國水污染防治法》)

 

According to the Law of the People’s Republic of China on Prevention and Control of Water Pollution (《中華人民共和國水污染防治法》) promulgated by the SCNPC on May 15, 1996 and latest amended on June 27, 2017, an environmental impact assessment must be conducted lawfully in respect of all projects involving the construction, alternation or expansion of water facilities which discharge pollutions directly or indirectly into water. Facilities for prevention and control of water pollution of construction projects must be designed, constructed and put into use or operation simultaneously with the main facility.

 

4. Law of the People’s Republic of China on Prevention and Control of Atmospheric Pollution (《中華人民共和國大氣污染防治法》)

 

According to the Law of the People’s Republic of China on Prevention and Control of Atmospheric Pollution (《中華人民共和國大氣污染防治法》) promulgated by the SCNPC on September 5, 1987 and latest amended on August 29, 2015, when construction projects have an impact on atmospheric environment, enterprises and public institutions shall conduct environmental impact assessments and publish the environmental impact assessment documents according to the law; when discharging pollutants to the atmosphere, they shall conform to the atmospheric pollutant discharge standards and abide by the total quantity control requirements for the discharge of key atmospheric pollutants.

 

Our Offices

 

Our principal offices are located at 60 East Ren-Min Road, Dachaidan (Da Qaidam Administrative Committee) XaiXi, Qinghai Province 817000. Our telephone number is +86 (097) 782-8122. Our website is www.smartheatinc.com.[ Copies of our annual, quarterly and current reports and any amendments thereto filed with or furnished to the SEC are available free of charge through our website as soon as reasonably practicable after such reports are available on the SEC website at www.sec.gov. Furthermore, a copy of this Annual Report is located at the SEC’s Public Reference Room at 100 F Street, NE, Washington, D.C. 20549. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 1-800-SEC-0330.

 

 

Employees

 

Quig Hai Tech employs approximately 280 workers of which approximately 21 are employed in research and development. Some of our employees are provided living facilities through government sponsored programs [what are these?]. We also provide meals for our employees.  

 

Item 1A. Risk Factors

 

RISKS RELATING TO OUR INDUSTRY AND BUSINESS

 

We will require additional financing to implement our business plan, which may not be available on favorable terms or at all, and we may have to accept financing terms that would place restrictions on us.

 

We believe that we must raise not less than $20,000,000 in addition to current cash on hand to be able to execute the first stage of our business plan to move to our new facilities and build our production capacity of lithium carbonate to 10,000 tons per year and boric acid and related products to 20,000 tons per year. We believe that we must raise not less than $160,000,000 in addition to current cash on hand to be able to execute the first stage of our business plan to move to our new facilities and build our production capacity of lithium carbonate to 30,000 tons per year and boric acid and related products to 60,000 tons per year. We may not be able to obtain equity or debt financing on acceptable terms or at all to implement our growth strategy. As a result, adequate capital may not be available to finance our current development plan, take advantage of business opportunities or respond to competitive pressures. If we are unable to raise additional funds, we may be forced to curtail or even abandon our business plan.

 

Until such time, if ever, as we can generate substantial product income, we expect to finance our cash needs through a combination of equity offerings, debt financings and cash flow. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of existing stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of common stockholders. In addition, the terms of any future financings may impose restrictions on our right to declare dividends or on the manner in which we conduct our business. Debt financing and preferred equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures, declaring dividends, or making acquisitions or significant asset sales.

 

We are heavily exposed to the market forces in the boric acid, boron and lithium industries, including the current and expected supply and demand of boric acid and lithium.

 

We are heavily exposed to the market forces in the boric acid and lithium industry, including the current and expected supply and demand of boric acid and lithium which is primarily based on resource availability, the competitive landscape of the boric acid and lithium industry, discovery of new mines, demand in end markets for products in which boric acid and lithium are used, technological developments, government policies as well as global and regional economic conditions.

 

The demand for boric acid, boron lithium are dependent on factors such as use of the compounds in end markets, new technological developments resulting in product or technology substitutions and general economic conditions.

 

The demand for our boric acid and boron is primarily driven by demand for construction material such as fiberglass, glass and boron steel used in nuclear reactors and ultra-high strength industrial and military applications. Demand for boric acid is dependent on the PRC’s construction industry’s demand for fiberglass and glass. The demand for boron is subject to general economic conditions for heavy industry’s use of high strength steel.

 

The increase in demand for lithium in recent years has been primarily driven by the explosive growth in demand for electric vehicle batteries and energy storage batteries. The global electric vehicle sales grew from 1.2 million units in 2012 to 3.0 million units in 2017, representing a CAGR of 19%, and is expected to reach 8.6 million units by 2022, representing a CAGR of 23%, according to CRU International Limited. The Chinese government has also been focusing on developing the new-energy vehicle industry and has introduced generous incentives to encourage purchases of electric vehicles. From 2016 to 2017, the demand for lithium-based batteries has shifted from a focus on quantity to quality and we believe there is a shortage in supply for high quality lithium batteries but an excess supply of low-quality lithium batteries. As we believe that the market for high quality lithium-based batteries has good growth potential, we have focused our R&D initiatives on producing lithium carbonate for EVs. However, there is no assurance that the demand for lithium batteries will continue to increase. In addition, if a more cost- effective substitute for lithium-based batteries gains market acceptance, our business, financial condition and results of operations may be materially and adversely affected.

 

 

We are exposed to market fluctuations of boric acid, boron and lithium compounds.

 

Changes in current and expected supply and demand volumes impact the current and expected future prices of boric acid, boron and lithium compounds. Declines in boric acid, boron and lithium compounds could materially and adversely affect our business, financial condition and results of operations. There is no assurance that a fall in prices of boric acid, boron and lithium compounds will not occur. Furthermore, as a result of boric acid, boron and lithium compounds declines, we may decide to reduce sales volumes of our products.

 

New legislation or changes in the PRC regulatory requirements regarding the end markets of our products may affect our business operations and prospects. Our products are used in the production of, or are incorporated into final products that are sold into a number of end markets, including battery-related and industrial and construction material. New legislation or changes in the PRC regulatory requirements regarding these end markets may affect our business, financial condition, results of operations and growth prospects. For example, the PRC government has promulgated, amended and updated a number of legislation in relation to the electric vehicles market. We may need to change or adapt our business focuses from time to time in response to the new rules and regulations regarding the end markets of our products, but we may not be able to do so timely and efficiently. Any new legislation or changes in the PRC regulatory requirements could materially and adversely affect our business, financial condition and results of operations.

 

We depend on our affiliate Qinghai Mining for all of our supply of boron and lithium; are subject to uncertainties surrounding their estimated resource and reserves as our raw material, and the volume and grade of lithium and boron raw material we produce may not conform to current estimates, and we may not be able to secure sufficient lithium and boron resource supply to meet our production needs.

 

We purchase all of our lithium and boron exclusively from our affiliate Qinghai Mining. Our largest stockholder and Chairman of the Board owns substantially all of Qinghai Mining. While we believe that our supply contract with Qinghai Mining has been negotiated on an arms-length basis, there is an inherent conflict of interest due to his ownership in both companies. We can not assure you that a conflict of interest may arise that will favor Qinghai Mining over Qinghai Technology and us.

 

Our estimated resources and supply of lithium, boric acid and boron from Qinghai Mining are based on a number of assumptions in accordance with relevant industry standards. There can be no assurance that our estimated supplies of lithium and boron resources will prove to be accurate or that Qinghai Mining will be able to mine or process our lithium resources as our raw material will be provided to us at a cost that will enable us to make a profit. Estimated resources and reserves of lithium and boron are inherently prone to variability. They involve expressions of judgment with regard to the presence and grade of brine and the ability to economically extract and process the brine. These judgments are based on a variety of factors, such as knowledge, experience and industry practice. The accuracy of these estimates may be affected by many factors, including the quality of the extraction, sampling results, analysis of the samples, the procedures adopted, and experience of the persons making the estimates. Brine extracted may be different from the estimated resources and reserves of lithium and boron in various ways, such as quality, volume, mining costs or processing costs. In addition, spodumene and brine may not ultimately be extracted at a profit. We record our lithium resources located in the PRC according to the Chinese National Standard.

 

If we encounter conditions different from those estimated based on historical examinations, such as governmental policies on export and tax rate, geopolitical relationships, natural disasters, transportation disruptions, we may have to adjust our production plans which could materially and adversely affect our business, financial condition and results of operations and reduce the estimated amount of resources and reserves available for production and expansion plans.

 

We face competition in our business.

 

The global lithium and boron compounds is a relatively orderly market protected by significant barriers to entry. The global lithium and boron compounds and metals market is dominated by a limited number of lithium companies. Our existing competitors endeavor to increase their market shares through measures, such as continued research and development efforts, optimized production process and active marketing campaigns. We expect to face competition from both existing and new competitors as we expand our business into new business lines and product categories. Competitive pressure could also have an adverse impact on the demand for and pricing of our products, which in turn affects our growth and market share. If we fail to compete effectively, we may be unable to build our lithium business and retain or expand our market share, which would have a material adverse effect on our business, results of operations and financial condition. We may not be successful in expanding our operations, managing our growth effectively or opening our new facilities in a timely manner.

 

 

We are undertaking future expansion projects based on our future business planning. The success of our future expansion projects depends on a few factors beyond our control, such as the progress of the construction conducted by the third party construction companies, local laws and regulations, government support, including in the form of tax breaks, and customer demand for our expanded production capacity. In addition, the integration of future expansion projects into our existing operations may be subject to unforeseeable delays, which may, among other things, increase our integration costs, strain our production capacity at other locations, decrease our production efficiency and cause delays in delivery of customer orders. Furthermore, as we expand our business operations in the future organically or by acquisition, we expect to incur additional depreciation and operational expenses. The depreciation and operational expenses can increase as a percentage of our revenue in the future and adversely affect our profitability if we cannot manage our growth effectively. Accordingly, we may not be able to achieve the expansion of our operations or the management of our growth in a timely or cost- effective manner. If we are unable to manage our growth effectively, we may not be able to take advantage of market opportunities, execute our business strategies or respond to competitive pressures which could have a material adverse effect on our results of operation and prospects

 

The mining rights that Qinghai Mining hold equity interests in have a limited life and these operations will entail costs and risks regarding monitoring, rehabilitation and compliance with environmental standards which could increase our costs.

 

The mines that Qinghai Mining holds in the PRC have limited lives and will eventually be depleted. We may need to replenish our lithium and boron supply sources from time to time in order to enhance our existing needs. Due to the limited supply of lithium and boron supply sources, there is no assurance that we will be able to acquire new and valuable lithium and boron supplies or resources, or that the actual production results may match the expected results. In the event of the closure of Qinghai Mining, we need to perform certain procedures to remedy and rehabilitate the environmental and social impact that the mining operations have had on local communities. We may experience a difficult closure, the consequences of which range from increased closure costs, handover delays and conflicts with local communities in relation to ongoing monitoring and environmental rehabilitation costs and damage to our reputation if desired outcomes cannot be achieved. In the event of a difficult closure, our business, financial condition and results of operations could be materially and adversely affected. Moreover, we have not made any provision for restoration or rehabilitation costs. Only mines that have commenced exploitation incur restoration or rehabilitation costs.

 

We may not possess all the licenses required to operate our business, or may fail to maintain the licenses we currently hold. This could subject us to fines and other penalties, which could have a material adverse effect on our results of operations.

 

In addition to a mining registration certificate held by Qinghai Mining and business certificate held by Qinghai Technology, they are required to hold a variety of other permits, licenses and certificates to conduct their business in China. They may not possess or receive all the permits, licenses and certificates required for our business or for which application has been made. In addition, there may be circumstances under which the approvals, permits, licenses or certificates granted by the governmental agencies are subject to change without substantial notice in advance. If we fail to obtain or to maintain such permits, licenses or certificates or renewals are granted with onerous conditions, we could be subject to fines and other penalties and be limited in the number or the quality of the products that we would be able to offer. As a result, our business, result of operations and financial condition could be materially and adversely affected.

 

We are subject to extensive environmental, chemical manufacturing, health and safety laws and regulations and production standards, and our compliance with these laws, regulations and standards may be onerous and costly.

 

Our business and/or operational activities, such as manufacturing and sale of our lithium carbonate, boric acid and boron products, storage of raw materials, transportation and exportation of our products and certain other activities are affected by laws and regulations, administrative determinations, court decisions and similar constraints, especially the extensive environmental, chemical manufacturing, health and safety laws and regulations and stringent standards of lithium compounds which are promulgated by the PRC Government and the governments of overseas jurisdictions in which we operate. For example, we are required to obtain and maintain valid licenses and certificates, including, among other things, those required for our production of lithium and boron products.

 

 

Qinghai Technology and Qinghai Mining are also required to comply with the restrictions and conditions imposed by various government authorities in order to conduct our business. If they fail to comply with any of the regulations or to satisfy any of the conditions required for the maintenance of our licenses and certificates, such licenses and certificates could be temporarily suspended or even revoked, rejected upon renewal or delayed for renewal, upon expiry of their original terms, which could materially and adversely affect our business, financial condition and results of operations. Meanwhile, to comply with the extensive environmental laws and regulations relating to air and water quality, waste management and public health and safety in the PRC, they must obtain the approval for the environmental impact assessment reports and the environmental acceptance approval of our projects in construction and mines, and undergo annual inspection of production facilities by relevant PRC authorities to ensure the safety of our equipment. If they fail to obtain such environmental approval or complete the annual inspection, our projects may be suspended and the relevant authorities may suspend our operation of the production facilities and may impose a fine on us or them.

 

Given the magnitude, complexity and continuous amendments to these laws and regulations, compliance therewith may be onerous and may involve substantial financial resources as well as other resources to establish efficient compliance and monitoring systems. The liabilities, costs, obligations and requirements associated with these laws and regulations may therefore be substantial and may delay the commencement of, or cause interruptions to, our operations. Non-compliance with the laws and regulations applicable to our operations may even result in substantial penalties or fines, suspension or revocation of our relevant licenses, termination of government contracts or suspension of their operations. Such events could impact on our results of operations, financial condition and reputation, all of which could adversely affect our ability to be profitable and attract new customers.

 

In addition, the environmental, chemical manufacturing, health and safety laws and regulations, administrative determinations and court decisions in the PRC which we are subject to continue to evolve, which may involve stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed mines or production facilities as well as a heightened degree of responsibility for companies and their officers, directors and employees. Any changes or amendments to such laws or regulations may cause us to incur additional capital expenditures, costs that may not be able to be passed on to customers, or other obligations or liabilities, which could decrease our capital and our ability to pursue developments in other areas. In the event that we fail to comply with applicable laws and regulations or fail to maintain, renew or obtain the necessary licenses or certificates, our qualification to conduct our various businesses may be adversely affected, which may adversely affect our business, financial condition and results of operations.

 

Our businesses are subject to operational difficulties, occupational and environmental hazards and other risks, which could damage our reputation, subject us to liability claims and result in substantial costs.

 

Our production businesses are exposed to various risks, including operational and transportation- related risks, as well as occupational and environmental hazards. We may experience various types of operational difficulties in connection with our production operations. Some of our raw materials and chemicals are hazardous (i.e., toxic or flammable) and their storage and usage in the production process involve inherent risks. Accidents could materially disrupt our production and may give rise to personal injuries and environmental hazards. Our operations may also be subject to production difficulties such as capacity constraints, mechanical and system failures, construction and upgrade delays and delays in the delivery of machinery, any of which could cause suspension of production and reduced output. Scheduled and unscheduled maintenance programs may also affect our production output. Any significant manufacturing disruption could adversely affect our ability to make and sell products, which could have a material adverse effect on our business, financial condition and results of operations.

 

Our production operations are dependent on our access to adequate transportation channels.

 

We rely on a combination of rail, sea and road transportation both in the PRC to deliver our products to customers. However, there can be no assurance that the existing or planned transportation systems will be sufficient to meet our transportation requirements. Any shortage, disruption or limitation of transportation capacity may limit the volume of products delivered to customers and may cause us to accumulate inventories and scale back production. Furthermore, any disruption to, or decrease in, the availability or capacity in the transportation networks, such as due to an earthquake, major rail or highway accidents, strikes, seasonal congestion during holidays, or any significant rise in transportation costs, could materially and adversely affect our ability to deliver our products to customers and have a material adverse effect on our overall production business and results of operations.

 

 

Due to the nature of our business, we engage in certain inherently risky and hazardous activities, including, among other things, operations at height or on dangerous terrains, underground excavation and construction, use of heavy machinery, handling and discharge of hazardous chemicals such as flammable and explosive materials, production of lithium concentrate through facilities.

 

As a result, we are subject to risks associated with these activities, including, among other things, geological catastrophes, toxic gas and liquid leakages, equipment failures, industrial accidents, fires, explosions and underground water leakages. These risks and hazards have in some cases resulted in personal injury and fatal casualties, damage to or destruction of properties or production facilities, and pollution and other environmental damages. Any of these consequences, if significant, could result in business interruption, legal liability and damage to our reputation and corporate image. In addition, we may also be subject to claims resulting from subsequent use by the customers or other third parties of the facilities and the products we produced. We normally seek to lower our exposure to potential claims associated with our businesses through contractual limitations on liability, indemnities from customers, subcontractors and suppliers, and insurance. These measures, however, may not always be effective due to various factors, many of which may be out of our control. The occurrence of any of these risks may harm our business operations and reputation, which could inhibit our ability to take on other contracts or otherwise grow our businesses.

 

We are exposed to credit risk of our customers and failure to collect our trade and bills receivables in a timely manner may affect our financial condition and results of operations. 

 

Historically, we have not experienced material collection issues in connection with our trade receivables. Should the credit worthiness of our customers deteriorate, or should a significant number of our customers fail to settle their trade and bills receivables in full for any reason, we may incur impairment losses and our results of operations and financial position could be materially and adversely affected. In addition, there may be a risk of delay in payment by our customers from their respective credit period, which in turn may also result in an impairment loss provision. There is no assurance that we will be able to fully recover our trade and bills receivables from the customers or that they will settle our trade and bills receivables in a timely manner. In the event that settlements from customers are not made on a timely manner, or at all, our financial position and results of operations may be materially and adversely affected

 

We may not be adequately insured against losses and liabilities arising from various operational risks and hazards that we are subject to.

 

We face various operational risks in connection with our businesses, including production interruptions caused by operational errors, electricity outages, the failure of equipment and other risks; operating limitations imposed by environmental or other regulatory requirements; social, political and labor unrest; environmental or industrial accidents; catastrophic events such as fires, earthquakes, explosions, floods or other natural disasters; and risks related to the complicated geological structure of our mine and geological disasters that occur during the mining process such as mine collapses. These risks can result in, among other things, damage to, and destruction of, mineral properties or production facilities; personal injury or loss of life; environmental damage; delays in mining; monetary losses; and legal liability. The occurrence of any of these events may result in the interruption of our operations and subject us to significant losses or liabilities. We may not have adequate or any insurance coverage on the above operational risks. We maintain property insurance, product liability insurance, employee insurance and overseas investment insurance for our business operations.]There can be no assurance that our insurance coverage would be sufficient in case of such major accidents. In the event that we incur substantial losses or liabilities and our insurance is unavailable or inadequate to cover such losses or liabilities, our business, financial condition and results of operations could be materially and adversely affected.

 

We may not achieve optimal results in investments in our new plant and facilities and may encounter difficulties in integrating and developing the investments in the new plant and production lines successfully.

 

As part of our expansion plan, we plan to increase our mineral resources through investments in a new brine processing plant which we plan to house in up to three new buildings. We do not have specific timetables for these plans, and we cannot be certain that we will be able to fund or create additional capacity on a profitable basis. We may encounter intense competition during the expansion process, and we may fail to implement our plans. In addition, we must receive various governmental and regulatory approvals and/or permits in order to develop new production resources, which approval may not be forthcoming, or which may cause significant delay and have a material adverse effect on our overall production business and results of operations.

 

 

Our failure to maintain an effective quality control system may result in a material adverse effect on our business, reputation, financial condition and results of operations.

 

The quality of our products is critical to the success of our business. These factors depend significantly on the effectiveness of our quality control system, which in turn, depends on a number of factors, including the design of the system, the machineries used, the quality of our staff and related training programs and our ability to ensure that our employees adhere to our quality control policies and guidelines. We are required to comply with specific guidelines based on PRC’s product safety and restricted and hazardous materials laws and regulations. We cannot assure you that our quality control system will continue to be effective and in compliant with relevant laws and regulations and standards. Any significant failure in or deterioration of the efficacy of our quality control systems could result in us losing accreditations and requisite certifications or qualifications, which could in turn have a material adverse effect on our business, reputation, financial condition and results of operations.

 

We depend on Qinghai Mining and a limited number of major suppliers for a substantial portion of our key raw materials.

 

The unavailability or increase in price of such raw materials could materially and adversely affect our business, financial condition and results of operations. We purchase all of our lithium and boron brine and materials from Qinghai Mining. A substantial portion of raw materials from a limited number of major suppliers. In  2018 our five largest suppliers accounted for approximately 26.63%, 16.66%, 12.59%, 6.12% and 1.41% of our total amount of purchases, respectively. The concentration of our purchases among a limited number of major suppliers exposes us to a variety of risks that could have a material adverse impact on our revenue and profitability. If we are unable to purchase sufficient amounts of raw materials from these suppliers, or the quality of such raw materials decreases, or could only purchase such raw materials at a premium, the overall productivity and profitability of our operations would be materially and adversely affected, and therefore our business, financial condition and results of operations could be materially and adversely affected.

 

We entered into long-term offtake agreements with Qinghai Mining in to ensure sufficient and stable supply of raw materials for our business. We may face risks related to lowered liquidity during certain periods, due to the long-term offtake agreements that occupy our working capital which could instead be used to finance our expansion. We cannot assure you that we will not experience any higher needs of liquidity during the terms of the long-term offtake agreements and that our business, financial position, results of operations and prospects and working capital will not be affected.

 

Our operations depend on a stable, timely and adequate supply of energy, power and raw materials at commercially reasonable prices.

 

In addition to lithium and boron raw materials we purchase from Qinghai Mining, we depend on the supply of energy, power and other raw materials such as electricity, water, oil, and chemicals in order to maintain our production processes. Our production volume and production costs are dependent on our ability to source such materials at acceptable prices and maintain a stable supply. The prices for these raw materials are subject to price volatility attributable to a number of factors which may be beyond our control, including inflation, supplier capacity constraints, general economic conditions, commodity price fluctuations, demand from other industries for the same materials, the availability of complementary and substitute materials, and local and national regulatory requirements. Furthermore, there can be no assurance that shortages of energy or water will not occur in the future or that we will be able to pass on any cost increases in raw materials, energy or water to our customers. Significant fluctuations in such costs may have a material effect on our profitability if we are unable to adjust the price of our products accordingly. In particular, increases in energy and raw material prices that we are unable to pass onto our consumers will reduce our profit margins. Moreover, if the supply of such materials is affected by natural disasters, adverse weather conditions, suppliers’ equipment failures, disruptions in transport or other inclement factors, we may not be able to locate alternative sources of supply in sufficient quantities, of suitable quality and/or at acceptable prices. Any such events may have a material adverse effect on our business, financial condition and results of operations.

 

 

Our success as a manufacturing company producing lithium carbonate, boric acid and related products depends to a great extent on our research and development capabilities and our ability to secure capital for the implementation of our new brine processing plants.

 

Our success as a lithium and boron-based products manufacturing company is dependent on our ability to develop and implement more efficient production capabilities based on mineral rich brine. We made and expect to make significant investments research and development of this new production process, in particular, to improve the quality of our products and expand our new product offerings in the lithium market. While Qinghai Technology has implemented a pilot production line that can produce up to 1,000 tons of lithium carbonate and 2,000 tons of boric acid per year, we will need to continue to invest heavily in research and development to scale our manufacturing to ultimately producing 30,000 tons of lithium carbonate and 60,000 tons of boric acid per year. If Qinghai Technology is successful in designing the production line we will require up to $180,000,000 in debt, equity, bank financing and government subsidies to move to new production facilities and ramp up production to these levels. We believe the research and development and financing efforts are crucial factors for our future growth and prospects.

 

We cannot assure you that our future product research and development projects and financing efforts will be successful or be completed within the anticipated time frame or budget, or that our newly developed products will achieve wide market acceptance. Even if such products can be successfully commercialized, there is no guarantee that they will be accepted by our customers and achieve anticipated sales target or in a profitable manner. In addition, we cannot assure you that our existing or potential competitors will not develop products which are similar or superior to our products or are more competitively priced. As it is often difficult to project the time frame for developing new products and the duration of market window for these products, there is a substantial risk that we may have to abandon a potential product that is no longer commercially viable, even after we have invested significant resources in the development of such product and our facilities. If we fail in our product launching efforts, our business, prospects, financial condition and results of operations may be materially and adversely affected.

 

Our business is capital intensive, the sources of our future financing can be uncertain, and our working capital can be unstable during certain quarters.

 

We operate in a capital-intensive industry that requires substantial capital and other long-term expenditures, including expenditures for the purchase of machinery. To the extent that we expand or add new manufacturing facilities, we expect to fund the related financial commitments and other capital and operating expenses from a combination of cash on hand, cash generated from operations, banking facilities and proceeds from future offerings. We expect to have sufficient cash and/or committed financing to meet our obligations as they are due. However, no assurance can be given that we will be able to generate sufficient cash from our operations or obtain the necessary financing or that such financing will be at interest rates and on other terms that are reasonable to us or consistent with our expectations. To the extent we cannot finance our expansion or acquisitions at reasonable rates or at all in the future, our business may be harmed. In addition, part of our expansion require us to procure raw materials, as a result, during certain quarters we may incur higher working capital needs that may affect our working capital operation. We cannot assure that we will not experience any higher working capital needs in the future, and our business, financial position, results of operations and prospects and working capital may be affected.

 

Short-term orders from customers and counterparty risks may adversely affect our businesses.

 

Our lithium and boron business is characterized by short-term orders from our major customers. We primarily rely on ongoing communication with our customers in order to predict the future volume of purchase orders. We cannot guarantee that our existing customers will continue to place orders with us in the future or will place orders of no less than the current volume of lithium and boron products. A variety of conditions, both specific to an individual customer and generally affecting the customer’s industry, can cause a customer to reduce or delay orders previously anticipated by us, which could adversely impact our business. Given the volatility of short-term orders, we may experience a material change in our revenue.

 

While we generally evaluate our customers’ credit in accordance with our internal risk management criteria, such as credit history and likelihood of default, we have limited access to information about our customers and may encounter difficulties in the collection of receivables from certain customers or in certain geographical areas that we have less experience in our dealings. We cannot guarantee that all of our customers will fully perform their obligations under their respective contracts with us, and the deterioration of any customers’ credit or payment conditions may result in those customers’ defaulting on their contractual obligations, which could materially and adversely affect our business, financial condition and results of operations.

 

 

Inadequate contributions to various employee benefits plans as required by PRC regulations may subject us to penalties.

 

Companies operating in the PRC are required to participate in various government sponsored employee benefit plans, including certain social insurance, housing funds and other welfare-oriented payment obligations, and contribute to the plans in amounts equal to certain percentages of salaries, including bonuses and allowances, of employees up to a maximum amount specified by the local government from time to time at locations where they operate their businesses. The requirement of employee benefit plans has not been implemented consistently by the local governments in China given the different levels of economic development in different locations. Our inadequate contributions to the national standard of certain employee benefit plans and in complying with applicable PRC labor-related laws may subject us to late payment penalties. We may be required to make up the contributions for these plans as well as to pay late fees and fines. If we are subject to late fees or fines in relation to the underpaid employee benefits, our financial condition and results of operations may be adversely affected.

 

We are exposed to foreign currency exchange fluctuations. 

 

Changes in the value of foreign currencies could increase our Renminbi costs for, or reduce our Renminbi revenues from, our foreign operations, or affect the prices of our exported products and the prices of our imported equipment and materials. Any increased costs or reduced revenues as a result of foreign currency exchange fluctuations could adversely affect our margins. On July 21, 2005, the PRC Government changed its policy of pegging the value of the Renminbi to the U.S. dollar. Under the new policy, the Renminbi is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. On May 18, 2007, the PBOC enlarged, effective on May 21, 2007, the floating band for the trading prices in the inter-bank spot exchange market of Renminbi against the U.S. dollar from 0.3 percent. to 0.5 percent. around the central parity rate. This allows the Renminbi to fluctuate against the U.S. dollar by up to 0.5 percent. above or below the central parity rate published by the PBOC. The floating band was further widened to 1.0 percent. on April 16, 2012. On August 11, 2015, the PBOC announced to improve the central parity quotations of Renminbi against the U.S. dollar by authorizing market-makers to provide central parity quotations to the China Foreign Exchange Trading Center daily before the opening of the interbank foreign exchange market with reference to the interbank foreign exchange market closing rate of the previous day, the supply and demand for foreign exchange as well as changes in major international currency exchange rates. Following the announcement by the PBOC on August 11, 2015, Renminbi depreciated significantly against the U.S. dollar. In January and February 2016, Renminbi experienced further fluctuation in value against the U.S. dollar. The PRC Government may adopt further reforms of our exchange rate system in the future. These changes in policy have resulted in fluctuations of the Renminbi against the U.S. dollar. There can be no assurance that such exchange rate will remain stable against the U.S. dollar or other foreign currencies in the market. At present, there remains significant international pressure on the PRC Government to adopt an even more flexible currency policy, which could result in a further and more significant appreciation of the Renminbi against the U.S. dollar or other foreign currencies. Fluctuations in exchange rates may adversely affect the value, translated or converted into foreign currencies, of our net assets, earnings, the value of our common stock and our ability to declared dividends

 

We may be involved in legal or other proceedings arising out of our operations from time to time and may face significant liabilities as a result.

 

We may be involved from time to time in disputes with various parties involved in our business operations, including but not limited to our customers, suppliers, employees, logistics service providers, insurers, banks and regulatory entities. These disputes may lead to legal or other proceedings, which may result in damages to our reputation, substantial costs and diversion of our resources and management’s attention. In addition, we may encounter additional compliance issues in the course of our operations, which may subject us to administrative proceedings and unfavorable results and result in liabilities and delays relating to our production or product launch schedules. We cannot assure you as to the outcome of such legal proceedings, and any negative outcome may materially and adversely affect our business, financial condition and results of operations.

 

Our success depends upon our key personnel.

 

Any failure to attract and retain necessary talents may materially and adversely affect our business, prospects, financial condition and results of operations. Our success depends, to a significant extent, on the capability, expertise and continued services of our senior management team. We rely on the expertise and experience of our key executives in developing business strategies, product development, business operation and maintaining relationships with customers. If we lose the services of any of our key executives, we may not be able to find a suitable replacement with comparable knowledge and experience, and our business, prospects, financial condition and results of operations may be materially and adversely affected. Our success also depends on our ability to attract and retain talented personnel. We may not be able to attract or retain all the key personnel we need. We may also need to offer better remuneration and other benefits to attract and retain key personnel and therefore cannot assure you that we will have the resources to fully achieve our staffing needs or that our costs and expenses will not increase significantly as a result of increased talent acquisition and retention cost. Our failure to attract and retain competent personnel, and any increase in staffing costs to retain such personnel may have a negative impact on our ability to maintain our competitive position and to grow our business. If this occurs, our business, financial condition and results of operations may be materially and adversely affected.

 

 

We may inadvertently infringe third-party intellectual property rights, which could negatively impact our business and financial results.

 

We are not aware of, nor have we received any claims from third parties for, any violations or infringements of intellectual property rights of third parties by us as of the date of this Annual Report. Nevertheless, there can be no assurance that as we develop new product designs and production methods, we would not inadvertently infringe the intellectual property rights of others or others would not assert infringement claims against us or claim that we have infringed their intellectual property rights. Claims against us, even if untrue or baseless, could result in significant costs, legal or otherwise, cause product shipment delays, require us to develop non-infringing products, enter into licensing agreements or may be a distraction to our management. Licensing agreements, if required, may not be available on terms acceptable to us or at all. In the event of a successful claim of intellectual property rights infringement against us and our failure or inability to develop non-infringing products or to license the infringed intellectual property rights in a timely or cost-effective basis, our business and/or financial results will be negatively impacted.

 

Our businesses are vulnerable to downturns in the general economy.

 

The global financial markets experienced significant disruptions in 2008 and the United States, Europe and other economies went into recession. The recovery from the lows of 2008 and 2009 was uneven and the global economy has continued to face new challenges, including the escalation of the European sovereign debt crisis in 2011 and the slowdown of the Chinese economy since 2012. There is considerable uncertainty over the long-term effects of the expansionary monetary and fiscal policies that have been adopted by the central banks and financial authorities of some of the world’s leading economies, including the United States. There have also been concerns over unrest in the Middle East and Africa, which have resulted in volatility in commodity prices and other markets, over the possibility of a war involving Iran, and over the withdrawal of the United Kingdom from the European Union. The above unfavorable financial or economic conditions may adversely affect the demand for lithium concentrate and lithium compounds. Furthermore, concerns over inflation, energy costs, geopolitical issues, the availability and cost of credit, unemployment, consumer confidence, asset values, capital market volatility and liquidity issues may create difficult operating conditions in the future. In addition, the PRC Government has from time to time adjusted our monetary, fiscal and other policies and measures to manage the rate of growth of the economy or control the overheating of the general economy or certain industries or markets. As a result, the general economy in the PRC, the world or in any particular industry in which we operate or which we serve may grow at a lower-than-expected rate or even experience a downturn. This in turn could materially and adversely affect our businesses, financial condition and results of operations

 

Our business, financial condition and results of operations may be materially and adversely affected in the event of fire, breakdown, failure of our equipment and machinery, power shortage, labor strikes, acts of war, political unrest, outbreak of a contagious or epidemic disease and natural disasters.

 

Our revenue is dependent on the uninterrupted operation of Qinghai Technology’s manufacturing facilities and the mining facilities and resources of Qinghai Mining, our affiliated company. Their business operations are subject to risks beyond our control including, among others, fire, breakdown, failure of our equipment and machinery, power shortage, water supply shortage, labor strikes, acts of war, political unrest and outbreak of a contagious or epidemic disease and natural disasters. Any or a combination of these could cause material damage to, or the loss of, our operational facilities. The time required to rectify such problems could be lengthy and could result in significant increases in costs or reduction in sales. Frequent or prolonged occurrences of any of the aforesaid events may have a material and adverse effect on our business, financial condition and results of operations. In addition, we conduct our operations under a variety of geographical and other conditions, including on difficult terrain, under harsh conditions and deliver our materials to locations where availability of labor may be affected, and on sites which may previously have been exposed to environmental hazards. Such conditions may result in personal injuries or fatalities or have a negative effect on our work performance and efficiency.

 

 

RISKS RELATING TO DOING BUSINESS IN THE PRC

 

The economic, political and social conditions in the PRC, as well as government policies, laws and regulations, could affect our business, financial condition and results of operations. A majority of our business operations are in the PRC and especially our production operations. Accordingly, our results of operations and prospects are, to a significant degree, subject to economic, political and legal developments in the PRC. The economy of the PRC differs from the economies of most developed countries in many respects, including the extent of government involvement, its level of development, its growth rate and its control over foreign exchange. The PRC’s economy has been transitioning from a planned economy to a more market-oriented economy. In recent years, the Chinese Government has implemented measures emphasizing market forces for economic reform, the reduction of State ownership of productive assets and the establishment of sound corporate governance in business enterprises. However, a significant portion of productive assets in the PRC is still owned by the Chinese Government. The Chinese Government continues to play a significant role in regulating industrial development. It also exercises significant control over the PRC’s economic growth through the allocation of resources, controlling payment of foreign currency-denominated obligations, setting monetary policies and providing preferential treatments to particular industries or companies. All of these factors could affect the economic conditions in the PRC and, in turn, our business.

 

Adverse developments in the PRC’s economy or an economic slowdown in the PRC may reduce the demand for our products and services and have a material adverse effect on our business, financial condition, results of operations and prospects.

 

We conduct our business and generate our revenues in the PRC. As a result, economic developments in the PRC have a significant effect on our business, financial condition and results of operations, as well as our prospects. In recent years, the PRC has been one of the world’s fastest growing economies in terms of GDP growth. However, the global financial crisis that unfolded in 2008 and continued in the past few years has led to a marked slowdown in the economic growth of the PRC. For example, the GDP growth rate of the PRC decreased from 14.2% in 2007 to 6.9% in 2015, and further slowed down to 6.7% in 2016. The global economy may continue to deteriorate in the future and continue to have an adverse impact on the PRC’s economy. Any significant slowdown in the PRC’s economy could have a material adverse effect on our business and operations.

 

Uncertainties with respect to the PRC’s legal system could limit the legal protections available to you and us.

 

Holders of our shares of common stock Shares may not be able to enforce their rights successfully as shareholders in the PRC according to the PRC Company Law. Our operating subsidiaries are incorporated under and governed by the laws of the PRC. The PRC’s legal system is based on written statutes. Prior court decisions may be cited for reference but have limited precedential value. In 1979, the Chinese government began to promulgate a comprehensive system of laws and regulations governing economic matters in general, such as foreign investment, corporate organization and governance, commerce, taxation and trade. As a significant part of our business is conducted in the PRC, our operations are principally governed by Chinese laws and regulations. However, since the PRC’s legal system continues to evolve rapidly, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involves uncertainties, which may limit legal protections available to us. Furthermore, certain important aspects of PRC corporate law are different from the corporate laws of common law jurisdictions such as the United States, particularly with respect to investor protection, such as shareholder class action suits and measures protecting non-controlling shareholders; restrictions on directors; disclosure requirements; different rights of classes of shareholders; general meeting procedures and disbursement of dividends. Intellectual property rights and confidentiality protections in the PRC may not be as effective as in the United States or other countries. In addition, we cannot predict the effect of future developments in the PRC’s legal system, including the promulgation of new laws, changes to existing laws or the interpretation or enforcement thereof, or the preemption of local regulations by national laws. These uncertainties could limit the legal protections available to us and other foreign investors, including you. In addition, any litigation in the PRC may be protracted and result in substantial costs and diversion of our resources and management attention.

 

 

Under the PRC Enterprise Income Tax Law, we may not be classified as a “high and new-technology enterprise” of the PRC. Such classification could result in unfavorable tax consequences.

 

Our company enjoys a preferential enterprise income tax rate of 15% according to tax regulation [2011 No.58], which gives preferential enterprise income tax rate for companies in some preferential industries in western provinces. This regulation is valid until 12/31/2020. Afterwards We will apply for high and new technology enterprise tax qualification. Pursuant to the PRC Enterprise Income Tax Law (中華人民共和國企業所得稅法).There is no assurance that Qinghai Mining and Qinghai Technology will remain qualified as a high and new-technology enterprise so as to enjoy the high and new-technology enterprise rate after the expiration of the Certificate of High and New- Technology Enterprise, in which case Qinghai Mining and Qinghai Technology will be subject to the normal enterprise income tax rate of 25% as for all PRC enterprises. The effective tax rate will therefore significantly increase and may materially and adversely affect Qinghai Mining and Qinghai Technology’s profitability, which may have a material adverse effect on our business, results of operations and financial condition. Also, there can be no assurance that the PRC Enterprise Income Tax Law, its application or its interpretation will not continue to change, in which case the effective income tax rate of Qinghai Mining and Qinghai Technology may increase significantly.

 

It may be difficult to effect service of process upon us or our Directors or executive officers who reside in the PRC or to enforce against them in the PRC any judgments obtained from non-Chinese courts.

 

Most of our Directors and executive officers reside within the PRC, and most of our assets and substantially all of the assets of those persons are located within the PRC. It may not be possible for investors to effect service of process upon us or those persons inside the PRC or to enforce against us or them in the PRC any judgments obtained from non-Chinese courts. The PRC does not have treaties providing for the reciprocal recognition and enforcement of judgments of courts in the United States or most other western countries. Therefore recognition and enforcement in the PRC of judgments of a court in any of these jurisdictions in relation to any matter may be difficult or impossible.

 

The Chinese government’s control over foreign currency conversion may adversely affect our business and results of operations and our ability to remit dividends.

 

Conversion and remittance of foreign currencies are subject to the Chinese foreign exchange regulations. It cannot be guaranteed that under a certain exchange rate, we shall have sufficient foreign exchange to meet our foreign exchange needs. Under the Chinese current foreign exchange control system, foreign exchange transactions under the current account conducted by us, including the payment of dividends, do not require advance approval from the SAFE, but we are required to present relevant documentary evidence of such transactions and conduct such transactions at designated foreign exchange banks within the PRC that have the licenses to carry out foreign exchange business. Foreign exchange transactions under the capital account, however, normally need to be approved by or registered with the SAFE or its local branch unless otherwise permitted by law. The Chinese government may also at its discretion restrict access in the future to foreign currencies for current account transactions. Any insufficiency of foreign exchange may restrict our ability to obtain sufficient foreign exchange for dividend payments to shareholders or satisfy any other foreign exchange obligation. If we fail to obtain approvals from the SAFE to convert RMB into any foreign exchange for any of the above purposes, our potential offshore capital expenditure plans and even our business may be materially and adversely affected.

 

 

The enforcement of Chinese labor contract law, social insurance law and other labor related regulations may materially affect our business, financial condition and results of operations.

 

Pursuant to Chinese Labor Contract Law, or the Labor Contract law, effective in January 2008 and amended in July 2013, and its implementation rules that became effective in September 2008, employers are subject to strict requirements in terms of signing labor contracts, minimum wages, paying remuneration, overtime working hours limitations, determining the term of employees’ probation and unilaterally terminating labor contracts. In the event that we decide to terminate the employment of some of our employees or otherwise change our employment or labor practices, the Labor Contract Law and its implementation rules may limit our ability to effect those changes in a desirable or cost-effective manner, which could adversely affect our business and results of operations. In addition, as our operating results vary due to the seasonality of our products and are historically stronger in the second half of the year, these seasonality fluctuations may affect our related labor arrangements and our production employees of our PRC subsidiaries may have to work overtime to satisfy customer demand during periods of increased production activity. If we were found to be in violation with the overtime working hours limitations as stipulated in the PRC Labor Law, it may subject us to a fine that ranges from RMB100 to RMB500 per person from local government authorities and we may be requested to take rectification measures to reduce the overtime working hours of our production employees. On October 28, 2010, the Standing Committee of the National People’s Congress promulgated Chinese Social Insurance Law, or the Social Insurance Law, which became effective on July 1, 2011. According to the Social Insurance Law, employees must participate in pension insurance, work-related injury insurance, medical insurance, unemployment insurance and maternity insurance and the employers must, together with their employees or separately, pay the social insurance premiums for such employees. As the interpretation and implementation of the Labor Contract Law, the Social Insurance Law and other labor related regulations (the “labor-related laws and regulations”) are still evolving, we cannot assure you that our employment practice do not and will not violate labor-related laws and regulations in the PRC, which may subject us to labor disputes or government investigations. If we are deemed to have violated relevant labor-related laws and regulations, we could be required to provide additional compensation to our employees and our business, financial condition and results of operations could be materially and adversely affected.

 

Present or future environmental, safety and occupational health laws and regulations in the PRC may have a material adverse effect on our business, financial condition and results of operations. 

 

Our business is subject to certain PRC laws and regulations relating to environmental, safety and occupational health matters. Under these laws and regulations, we are required to maintain safe production conditions and to protect the occupational health of our employees. While we have conducted periodic inspections of our operating facilities and carry out equipment maintenance on a regular basis to ensure that our operations are in compliance with applicable laws and regulations, we cannot assure you that we will not experience any material accidents or worker injuries in the course of our manufacturing process in the future. In addition, our manufacturing process produces pollutants such as wastewater, noise, smoke and dust. The discharge of wastewater and other pollutants from our manufacturing operations into the environment may give rise to liabilities that may require us to incur costs to remedy such discharge. We cannot assure you that all situations that will give rise to material environmental liabilities will be discovered or any environmental laws adopted in the future will not materially increase our operating costs and other expense. Should the PRC impose stricter environmental protection standards and regulations in the future, we cannot assure you that we will be able to comply with such new regulations at reasonable costs, or at all. Any increase in production costs resulting from the implementation of additional environmental protection measures and/or failure to comply with new environmental laws or regulations may have a material adverse effect on our business, financial condition or results of operations

 

Inflation in the PRC could negatively affect our profitability and growth.

 

Economic growth in the PRC has, during certain periods, been accompanied by periods of high inflation, and the Chinese government has implemented various policies from time to time to control inflation. For example, the Chinese government introduced measures in certain sectors to avoid overheating of the Chinese economy, including increasing interest rates and capital reserve thresholds at Chinese commercial banks. The effects of the stimulus measures implemented by the Chinese government since the global economic crisis that commenced in 2008 and the continued growth in the overall economy since then have resulted in sustained inflationary pressures. If these inflationary pressures continue and are not mitigated by Chinese government measures, our cost of sales will likely increase and our profitability could be materially reduced, as there is no assurance that we would be able to pass any cost increases onto our customers

 

 

PRC regulations relating to the establishment of offshore special purpose companies by PRC domestic residents may subject our PRC resident beneficial owners to personal liability, limit our ability to inject capital into our PRC subsidiaries, limit our subsidiaries’ ability to increase their registered capital or distribute profits to us, or may otherwise adversely affect us.

 

SAFE promulgated the Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents’ Offshore Investment and Financing and Roundtrip Investment through Special Purpose Vehicles, or SAFE Circular 37, on July 4, 2014, which replaced the former circular commonly known as “SAFE Circular 75” promulgated by SAFE on October 21, 2005. SAFE Circular 37 (the “SAFE Notice”) requires PRC residents to register with local branches of SAFE regarding their direct establishment or indirect control of an offshore entity, for overseas investment and financing, with such PRC residents’ legally owned assets or equity interests in domestic enterprises or offshore assets or interests, referred to in SAFE Circular 37 as a “special purpose vehicle” (the “SPV”). SAFE Circular 37 further requires amendment to the registration in the event of any significant changes with respect to the special purpose vehicle, such as increase or decrease of capital contributed by PRC individuals, share transfer or exchange, merger, division or other material event. Under the SAFE Notice, failure to comply with the registration procedures set forth above could result in liability under Chinese law for foreign exchange evasion and may result in penalties and legal sanctions, including fines, the imposition of restrictions on a Chinese subsidiary’s foreign exchange activities and its ability to distribute dividends to the SPV, its ability to pay the SPV proceeds from any reduction in capital, share transfer or liquidation in respect of the Chinese subsidiary and the SPV’s ability to contribute additional capital into or provide loans to the Chinese subsidiary. After consultation with China counsel, we do not believe that any of our PRC domestic resident stockholders are subject to the SAFE registration requirement. However, we cannot provide any assurances that all our stockholders who are PRC residents will not be required to make or obtain any applicable registrations or approvals required by these SAFE regulations in the future. The failure or inability of our PRC resident stockholders to comply with the registration procedures set forth therein may subject us to fines and legal sanctions, restrict our cross-border investment activities, or limit our PRC subsidiaries’ ability to distribute dividends or obtain foreign-exchange-dominated loans to our company.

 

As it is uncertain how the SAFE regulations will be interpreted or implemented, we cannot predict how these regulations will affect our business operations or future strategy. For example, we may be subject to more stringent review and approval process with respect to our foreign exchange activities, such as remittance of dividends and foreign-currency-denominated borrowings, which may adversely affect our results of operations and financial condition. In addition, if we decide to acquire a PRC domestic company, we cannot assure you that we or the owners of such company will be able to obtain the necessary approvals or complete the necessary filings and registrations required by the SAFE regulations. This may restrict our ability to implement our acquisition strategy and could adversely affect our business and prospects.

 

We may be subject to fines and legal sanctions by SAFE or other PRC government authorities if we or our employees who are PRC citizens fail to comply with PRC regulations relating to employee stock options granted by offshore listed companies to PRC citizens.

 

On March 28, 2007, SAFE promulgated the Operating Procedures for Foreign Exchange Administration of Domestic Individuals Participating in Employee Stock Ownership Plans and Stock Option Plans of Offshore Listed Companies, or Circular 78. Under Circular 78, Chinese citizens who are granted share options by an offshore listed company are required, through a Chinese agent or Chinese subsidiary of the offshore listed company, to register with SAFE and complete certain other procedures, including applications for foreign exchange purchase quotas and opening special bank accounts. We and our Chinese employees who have been granted share options are subject to Circular 78. Failure to comply with these regulations may subject us or our Chinese employees to fines and legal sanctions imposed by SAFE or other PRC government authorities and may prevent us from further granting options under our share incentive plans to our employees. Such events could adversely affect our business operations.

 

Our business and financial performance may be materially adversely affected if the PRC regulatory authorities determine that our acquisition of Mid-Heaven Sincerity International Resources Investment Co., Ltd constitutes a Round-trip Investment without the PRC Ministry of Commerce (“MOFCOM”) approval.

 

On August 8, 2006, six PRC regulatory agencies promulgated the Regulation on Merger and Acquisition of Domestic Companies by Foreign Investors (the “2006 M&A Rules”), which became effective on September 8, 2006. According to the 2006 M&A Rules, a “Round-trip Investment” is defined as having taken place when a PRC business that is owned, directly or indirectly, by PRC individual(s) is sold to a non-PRC entity that is established or controlled, directly or indirectly, by those same PRC individual(s) and their PRC affiliates. Under the 2006 M&A Rules, any Round-trip Investment must be approved by the MOFCOM. The application of the 2006 M&A Rules with respect to the definition of Round-trip Investment remains unclear with no consensus currently existing among the leading PRC law firms regarding the definition, scope of the applicability of the MOFCOM approval.

 

 

We acquired 100% capital stock of Mid-Heaven Sincerity International Resources Investment Co., Ltd (the “MHS Acquisition”), Qinghai Technology was a PRC business whose stockholders were PRC individuals and a PRC entity, of which Mr. Mao, our current Chairman, was the controlling stockholder. The PRC regulatory authorities may take the view that the MHS Acquisition could be part of a Round-trip Investment. We have consulted the PRC legal counsel of Qinghai Technology who believes that the MHS Acquisition did not violate any PRC law, which would include the 2006 M&A Rules. We, however, cannot assure you that the PRC regulatory authorities, MOFCOM, may take the same view as the PRC legal counsel. If the PRC regulatory authorities take the view that the MHS Acquisition constitutes a Round-trip Investment under the 2006 M&A Rules, we cannot be assured that we may be able to obtain the approval required from MOFCOM.

 

If the PRC regulatory authorities take the view that the MHS Acquisition constitutes a Round-trip Investment without MOFCOM approval, they could invalidate our acquisition and ownership of . Additionally, the PRC regulatory authorities may take the view that the MHS Acquisition constitutes a transaction which requires the prior approval of the China Securities Regulatory Commission, or CSRC, before MOFCOM approval is obtained. We believe that if this takes place, we may be able to find a way to re-establish control of Qinghai Technology’s business operations through a series of contractual arrangements rather than an outright purchase of Qinghai Technology. We cannot assure you that such contractual arrangements will be protected by PRC law or that we can receive as complete or effective economic benefit and overall control of Qinghai Technology’s business than if the Company had direct ownership of Qinghai Technology. In addition, we cannot assure you that such contractual arrangements can be successfully effected under PRC law. If we cannot obtain MOFCOM or CSRC approval if required by the PRC regulatory authorities to do so, and if we cannot put in place or enforce relevant contractual arrangements as an alternative and equivalent means of control of Qinghai Technology, our corporate structure the control asserted by the shareholders in the United States will be materially adversely affected.

 

Risks Related to an Investment in our Stock.

 

If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results. As a result, current and potential investors could lose confidence in our financial reporting, which could harm our business and have an adverse effect on our stock price.

 

Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, we are required to annually furnish a report by our management on our internal control over financial reporting. Such report must contain, among other matters, an assessment by our principal executive officer and our principal financial officer on the effectiveness of our internal control over financial reporting, including a statement as to whether our internal control over financial reporting is effective as of the end of our fiscal year. This assessment must include disclosure of any material weakness in our internal control over financial reporting identified by management. Performing the system and process documentation and evaluation needed to comply with Section 404 are both costly and challenging. If we fail to maintain the adequacy of our internal controls, as such standards are modified, supplemented or amended from time to time, we may not be able to ensure that we can conclude on an ongoing basis that we have effective internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002. We cannot provide assurance that we will not fail to achieve and maintain an effective internal control environment on an ongoing basis, which may cause investors to lose confidence in our reported financial information and have a material adverse effect on the price of our common stock.

 

We are responsible for the indemnification of our officers and directors.

 

Our Bylaws provide for the indemnification of our directors, officers, employees, and agents, under certain circumstances, against costs and expenses incurred by them in any litigation to which they become a party arising from their association with or activities on our behalf. Consequently, we may be required to expend substantial funds to satisfy these indemnity obligations.

 

We may not pay any cash dividends in the foreseeable future.

 

We do not anticipate paying cash dividends on our common stock in the foreseeable future and we may not have sufficient funds legally available to pay dividends. Even if the funds are legally available for distribution, we may nevertheless decide not to pay, or may be unable to pay, any dividends. We intend to retain all earnings for our company’s operations.

 

 

The market price for our common stock may be volatile and subject to wide fluctuations, which may adversely affect the price at which you can sell our shares.

 

The market price for our common stock may be volatile and subject to wide fluctuations in response to factors including the following:

 

 

actual or anticipated fluctuations in our quarterly operations results;

 

 

filing of a class action lawsuit against us and certain of our current and former officers;

 

 

changes in financial estimates by securities research analysts;

 

 

conditions in foreign or domestic fertilizer and agricultural markets;

 

 

changes in the economic performance or market valuations of other companies in the same industry;

 

 

announcements by us or our competitors of new products, acquisitions, strategic partnerships, joint ventures or

capital commitments;

 

 

addition or departure of key personnel;

 

 

fluctuations of exchange rates between the RMB and the U.S. dollar;

 

 

intellectual property litigation;

 

 

general economic or political conditions in the PRC; and

 

 

Other events or factors, many of which are beyond our control.

 

In addition, the securities market has from time to time experienced significant price and volume fluctuations that are not related to the operating performance of companies. These market fluctuations may also materially and adversely affect the market price of our stock, regardless of our actual operating performance.

 

We will require additional financing in the future and our operations could be curtailed if we are unable to obtain required additional financing when needed.

 

We will need to obtain additional equity or debt financing to fund future capital expenditures. Additional equity will result in dilution to the holders of our outstanding shares of capital stock. Additional debt financing may include conditions that would restrict our freedom to operate our business, such as conditions that:

 

 

limit our ability to pay dividends or require us to seek consent for the payment of dividends;

 

 

increase our vulnerability to general adverse economic and industry conditions;

 

 

require us to dedicate a portion of our cash flow from operations to payments on our debt, thereby reducing the

availability of our cash flow to fund capital expenditures, working capital and other general corporate purposes; and

 

 

limit our flexibility in planning for, or reacting to, changes in our business and our industry.

 

We cannot guarantee that we will be able to obtain any additional financing on terms that are acceptable to us, or at all.

 

The interests of our controlling shareholder who exerts significant influence over us may conflict with ours.

 

As of May 1, 2019, our largest shareholder, Mao Zhang, directly and indirectly owned 45.08% of our issued and outstanding common stock. Mr. Zhang is also the controlling stockholder of Qinghai Mining and its General Manager. The interests of Mr Zhang and Qinghai Mining may conflict or even compete with our interests and those of our public shareholders. Mr Zhang may take actions that are in the interest of Qinghai Mining, its stockholders and other related entities to our detriment. For example, Mr. Zhang may seek to influence Qing Hi Tech’s purchasing and pricing of brine, payments to Qinghai Mining’s officers and directors which will impact its margins and capital expenditure programs and thus may adversely affect our future prospects and financial condition. 

 

 

In addition, Qinghai Mining is our exclusive source of raw and supplemental materials necessary for our operations. It would be difficult, if not impossible, to find an alternative source for the raw materials that we receive from Qinghai Mining. Our cost of operations would substantially increase if Qinghai Mining are unable to continue providing such raw materials to us.

 

We have a limited public market for our shares of common stock and you may not be able to resell our shares at or above the price you paid, or at all.

 

There is a limited public market for our common stock in the OTC (Grey) market. We intend to apply for quotation on the OTCBB or OTCBB through a market maker; however, there can be no assurance that our common stock will ever be quoted on any quotation service. In order to be eligible for trading on the OTCBB and OTCQB we must a market maker file an application with FINRA to have our common stock quoted on the OTCBB and the OTCQB and remain current in our filings with the Securities and Exchange Commission. In order to be eligible for the OTCQB we must have a minimum bid price of $0.01, have at least 50 beneficial stockholders, each owning at least 100 shares, have a freely traded public float of at least 10% of our issued and outstanding shares of Common Stock or qualify from an exemption thereof and pay initial listing fees. We cannot assure you that an active public market for our common stock will develop or that the market price of our shares will not decline below the public offering price. The public offering price of our shares may not be indicative of prices that will prevail in the trading market following the offering.

 

Because we are subject to the “Penny Stock” rules, the level of trading activity in our stock may be reduced.

 

The Securities and Exchange Commission has adopted regulations which generally define “penny stock” to be any listed, trading equity security that has a market price less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exemptions. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the risks in the penny stock market. The broker-dealer must also provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer’s account. In addition, the penny stock rules generally require that prior to a transaction in a penny stock, the broker-dealer make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for a stock that becomes subject to the penny stock rules which may increase the difficulty Purchasers may experience in attempting to liquidate such securities.

 

Provisions in the Nevada Revised Statutes and our Bylaws could make it very difficult for an investor to bring any legal actions against our directors or officers for violations of their fiduciary duties or could require us to pay any amounts incurred by our directors or officers in any such actions.

 

Members of our board of directors and our officers will have no liability for breaches of their fiduciary duty of care as a director or officer, except in limited circumstances, pursuant to provisions in the Nevada Revised Statutes and our Bylaws as authorized by the Nevada Revised Statutes. Specifically, Section 78.138 of the Nevada Revised Statutes provides that a director or officer is not individually liable to the company or its shareholders or creditors for any damages as a result of any act or failure to act in his or her capacity as a director or officer unless it is proven that (1) the director’s or officer’s act or failure to act constituted a breach of his or her fiduciary duties as a director or officer and (2) his or her breach of those duties involved intentional misconduct, fraud or a knowing violation of law. This provision is intended to afford directors and officers protection against and to limit their potential liability for monetary damages resulting from suits alleging a breach of the duty of care by a director or officer. Accordingly, you may be unable to prevail in a legal action against our directors or officers even if they have breached their fiduciary duty of care. In addition, our Bylaws allow us to indemnify our directors and officers from and against any and all costs, charges and expenses resulting from their acting in such capacities with us. This means that if you were able to enforce an action against our directors or officers, in all likelihood, we would be required to pay any expenses they incurred in defending the lawsuit and any judgment or settlement they otherwise would be required to pay. Accordingly, our indemnification obligations could divert needed financial resources and may adversely affect our business, financial condition, results of operations and cash flows, and adversely affect prevailing market prices for our common stock.

 

 

Future sales of substantial amounts of the shares of common stock by existing stockholders could adversely affect the price of our common stock.

 

If our existing shareholders sell substantial amounts of the shares following this offering, the market price of our common stock could fall. Such sales by our existing shareholders might make it more difficult for us to issue new equity or equity-related securities in the future at a time and place we deem appropriate. The shares of common stock offered in this offering will be eligible for immediate resale in the public market without restrictions. All remaining shares, which are currently held by our existing shareholders, may be sold in the public market in the future subject to the lock-up agreements and the restrictions contained in Rule 144 under the Securities Act. If any existing shareholders sell a substantial number of shares, the prevailing market price for our shares could be adversely affected.

 

The financial and operational projections that we may make from time to time are subject to inherent risks.

 

The projections that we provide herein or our management may provide from time to time (including, but not limited to, those relating to potential peak sales amounts, timelines, production and supply matters, commercial launch dates, and other financial or operational matters) reflect numerous assumptions made by management, including assumptions with respect to our specific as well as general business, regulatory, economic, market and financial conditions and other matters, all of which are difficult to predict and many of which are beyond our control. Accordingly, there is a risk that the assumptions made in preparing the projections, or the projections themselves, will prove inaccurate. There may be differences between actual and projected results, and actual results may be materially different from than those contained in the projections. The inclusion of the projections in this prospectus should not be regarded as an indication that we, our management, or their representatives considered or consider the projections to be a guaranteed prediction of future events, and the projections should not be relied upon as such.

 

Our management collectively owns a substantial majority of our common stock.

 

Collectively, our officers, our directors and other stockholders own or exercise voting and investment control of approximately 91% of our outstanding common stock. As a result, investors may be prevented from affecting matters involving our company, including:

 

 

● 

the composition of our Board of Directors and, through it, any determination with respect to our business direction and policies, including the appointment and removal of officers;

 

 

 

 

any determinations with respect to mergers or other business combinations;

 

 

 

 

our acquisition or disposition of assets; and

 

 

 

 

our corporate financing activities.

 

Furthermore, this concentration of voting power could have the effect of delaying, deterring or preventing a change of control or other business combination that might otherwise be beneficial to our stockholders. This significant concentration of share ownership may also adversely affect the trading price for our common stock because investors may perceive disadvantages in owning stock in a company that is controlled by a small number of stockholders.

  

If securities or industry analysts do not publish research or reports about us, our business or our market, or if they make and then change their recommendations regarding our common stock adversely, the price of our common stock and trading volume could decline.

 

The trading market for our common stock, should it develop, may be influenced by the research and reports that securities or industry analysts may publish about us, our business, our market or our competitors. If any of the analysts who may cover us change their recommendation regarding our common stock adversely, or provide more favorable relative recommendations about our competitors, the price of our common stock would likely decline. If any analyst who may cover us was to cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause the price of our common stock or trading volume to decline.

 

Item 1B. Unresolved Staff Comments

 

Not required.

 

 

Item 2. Properties

 

There is no private ownership of land in China. All land is owned by the PRC government on behalf of all Chinese citizens or collectively owned by farmers. Land use rights can be granted or transferred with or without consideration upon approval by the PRC State Land Administration Bureau or its authorized branches.

 

Our principal executive offices are located at 60 East Ren-Min Road, Dachaidan, (Da Qaidam Administrative Committee), XaiXi, Qinghai Province 817000. The office space is approximately 1950 square meters (square feet). We have the land use rights to use 9,670 square meters, for a term of 50 years until 31/03/2029 for a yearly payment of RMB 40,516.

 

Through Qinghai Technology, we own the land use rights for an approximately 547330.6_ square meters (20,989 square feet) in our production facilities that manufacture and store boric acid and related products.

 

Item 3. Legal Proceedings

 

We may become involved in various lawsuits and legal proceedings arising in the ordinary course of business. Litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may have an adverse effect on our business, financial conditions or operating results. Aside from the proceeding described below, we are currently not aware of any such legal proceedings or claims that will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results.

  

Item 4. Mine Safety Disclosures

 

Not applicable.

 

 

PART II

 

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 

Market Information

 

Our common stock has traded on the over the counter market since November 9, 2012. Previously our common stock was listed on the NASDAQ Global Select Market under the symbol “HEAT” and had been trading on NASDAQ since January 29, 2009. The following table sets forth the range of the high and low bid prices of our common stock for each quarter in the years ended December 31, 2015 and 2016. These bid prices were obtained from OTC Markets, Inc.  All prices listed herein reflect inter-dealer prices, without retail mark-up, mark-down or commissions and may not represent actual transactions.

 

 

 

2018

 

 

2017

 

 

 

High

 

 

Low

 

 

High

 

 

Low

 

First Quarter (through March 31)

 

$

.05

 

 

 

.0001

 

 

$

0.0001

 

 

$

0.0001

 

Second Quarter (through June 30)

 

 

.0005

 

 

 

.0001

 

 

 

0.0005

 

 

 

0.0001

 

Third Quarter (through September 30)

 

 

.001

 

 

 

.0001

 

 

 

0.0005

 

 

 

0.0001

 

Fourth Quarter (through December 31)

 

 

.01

 

 

 

.0001

 

 

 

0.0001

 

 

 

0.0001

 

 

Holders of Record

 

On June 30, 2018, there were approximately 56 shareholders of record based on information provided by our transfer agent. Many of our shares of common stock are held in street or nominee name by brokers and other institutions on behalf of shareholders and we are unable to estimate the total number of shareholders represented by these record holders.

 

Dividend Policy

 

We have not paid and do not expect to declare or pay any cash dividends on our common stock in the foreseeable future, and we currently intend to retain future earnings, if any, to finance the expansion of our business. The decision whether to pay cash dividends on our common stock will be made by our Board of Directors, in their discretion, and will depend on our financial condition, operating results, capital requirements and other factors deemed relevant by our Board of Directors.

 

Our ability to pay dividends may be affected by the complex currency and capital transfer regulations in China that restrict the payment of dividends to us by our subsidiaries in China. PRC regulations currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. Our subsidiaries in China also are required to set aside at least 10% of net income after taxes based on PRC accounting standards each year to statutory surplus reserves until the cumulative amount of such reserves reaches 50% of registered capital. These reserves are not distributable as cash dividends. Our subsidiaries in China also may allocate a portion of their after-tax profits to their staff welfare and bonus funds, which may not be distributed to equity owners except in the event of liquidation. If any of our subsidiaries incur debt, the instruments governing the debt may restrict their ability to pay dividends or make other distributions to us.

 

In addition, Circular 75 requires PRC residents, including both legal persons and natural persons, to register with the competent local SAFE branch before establishing or controlling any company outside of China. If the PRC subsidiaries of an offshore parent company do not report the need for their PRC investors to register to the local SAFE authorities, they may be prohibited from distributing their profits and proceeds from any reduction in capital, share transfer or liquidation to their offshore parent company. Although we believe that our subsidiaries in China are in compliance with these regulations, should these regulations or the interpretation of them by PRC courts or regulatory agencies change, we may not be able to pay dividends outside of China.

 

Item 6. Selected Financial Data

 

Not required.

 

 

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Safe Harbor Declaration

 

The comments made throughout this Annual Report should be read in conjunction with our Financial Statements and the Notes thereto, and other financial information appearing elsewhere in this document. In addition to historical information, the following discussion and other parts of this document contain certain forward-looking information. When used in this discussion, the words, “believes,” “anticipates,” “expects” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from projected results, due to a number of factors beyond our control. We do not undertake to publicly update or revise any of our forward-looking statements, even if experience or future changes show that the indicated results or events will not be realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Readers are also urged to carefully review and consider our discussions regarding the various factors that affect our business, which are described in this section and elsewhere in this report.

 

Overview

 

On May 11, 2015 the holders of 62.3% of the outstanding common stock, par value $.0001 per share, of SmartHeat Inc., authorized the sale of all of the remaining interests, constituting 100% of its ownership interests, (the “Stock Sale”) of certain subsidiaries of the Company pursuant to the terms of an Equity Interest Purchase Agreement (the  “EIPA”) dated October 10, 2013, as amended and restated on November 28, 2014 and amended on March 19, 2015 (the “Amended EIPA”), by and among Heat PHE, Inc. (“Heat PHE”), as Seller, and Hongjun Zhang, on behalf of all of several individuals ( “Buyers”) identified in Buyers’ Response to RFP submitted to the Company on September 10, 2013 and as revised and accepted by Company on September 23, 2013. The subsidiaries of the Company which were sold to the Buyers were:

 

SmartHeat Taiyu (Shenyang) Energy

 

SmartHeat Siping Beifang Energy Technology Co., Ltd.

 

SmartHeat (Shenyang Energy Equipment) Co., Ltd.

 

Hohhot Ruicheng Technology Co., Ltd.

 

Urumchi XinRui Technology Limited Liability Company

 

Upon approval by the Company’s stockholders on May 11, 2015, all of the conditions precedents in the Amended EIPA were satisfied which consisted of: (i) approval of its stockholders and (ii) receipt by the Board of Directors (“BOD”) of the Company of an opinion that the Stock Sale was fair to the stockholders of SmartHeat from a financial point of view. The parties executed a mutual release which became effective and provided, in part, that the Target Companies forgave all net indebtedness of $8.79 million owing to the Target Companies by SmartHeat and all of its other subsidiaries. The consideration and all documents relating to the transaction were released from escrow upon the satisfaction of the foregoing conditions.

 

The Buyers purchased 40% of Heat PHE’s equity interests in the Target Companies for RMB 5 million ($0.82 million) paid on December 30, 2013. The Buyers purchased the remaining 60% of Target Companies (constituting all of the remaining equity interests in the Target Companies) for: (i) RMB 8.5 million ($1.39 million) and (ii) the forgiveness of $8.79 million in net indebtedness owing to Target Companies by SmartHeat and each of its other subsidiaries as of December 31, 2014, the date on which the sale occurred.

 

As a result of the Stock Sale, our business changed as the operations of our Plate Heat Exchangers segment were sold.  We currently operate the Heat Pump (“HP”) operating segment which has limited continuing operations in its operating subsidiaries and its business primarily consists of winding down existing businesses, selling inventory, collecting receivables and making arrangements for final payments to our former employees. As a result of the decision to seek bankruptcy protection for SmartHeat Pump, as discussed in more depth below, we are examining strategic alternatives for our business, which includes seeking another operating company to merge its operations with us.

 

 

Prior to the Stock Sale, we designed, manufactured and sold clean technology plate heat exchangers (“PHE”) through our PHE operating segment and related systems marketed principally in the People’s Republic of China (“PRC”). Our former subsidiaries in the PHE operating segments designed, manufactured, sold and serviced PHEs, PHE Units, which combine PHEs with various pumps, temperature sensors, valves and automated control systems in systems custom designed by our in-house engineers, heat meters and heat pumps for use in commercial and residential buildings.

 

On January 20, 2016, SmartHeat Pump entered and closed a Share Purchase Agreement with a series of buyers to sell 85% of the equity shares of SmartHeat Germany for Euro 170,000 ($185,400).  The purchase price of Euro 170,000 was returned to the buyers and subsequently paid into SmartHeat Germany as a reserve by the buyers. The buyers are not related parties of the Company. SmartHeat Germany had continuous losses and the management decided to sell at a minimal or no cost due to its higher operating cost.

 

The following chart displays our subsidiaries according to which operating segment they operated in after the Stock Sale:

 

Plate Heat Exchangers (PHE)

 

Heat Pumps (HP)

SanDeKe Co., Ltd.

 

SmartHeat (China) Investment Co., Ltd.

SmartHeat Heat Exchange Equipment Co.

 

SmartHeat (Shenyang) Heat Pump Technology Co., Ltd.

 

 

SmartHeat (Shanghai) Trading Co., Ltd.

 

 

Beijing SmartHeat Jinhui Energy Technology Co., Ltd.

 

During the year ended December 31, 2016, the management of SmartHeat Pump decided to seek bankruptcy protection in China due to the slowdown of the business and liabilities exceeding assets. Management determined the business could not be operated profitably in the future. SmartHeat Pump filed bankruptcy documents with the proper authorities in China. Management expects the bankruptcy process to last between one to two years before obtaining the final approval is obtained from the court.  Accordingly, the Company reclassified SmartHeat Pump business as a discontinued operation and made an impairment reserve for its assets including accounts receivable, other receivables, advance to suppliers, inventory, deferred tax assets, fixed assets and intangible assets.

 

On December 31, 2018 (the "Closing Date"), the Company entered into a Share Exchange Agreement and Plan of Reorganization, as amended January 24, 2019 (the “Share Exchange Agreement”) with Mid-Heaven Sincerity International Resources Investment Co., Ltd (Mid-heaven BVI) and its shareholders Mao Zhang, Jian Zhang, and Ying Zhao, constituting all of the shareholders of Mid-heaven BVI (the “Mid-heaven Shareholders”). Pursuant to the terms of the Share Exchange Agreement, the shareholders of Mid-heaven BVI delivered all of the issued and outstanding shares of capital stock of Mid-Heaven BVI to SmartHeat, in exchange for the issuance of 106,001,971 shares of SmartHeat’s Common Stock. Mid-heaven BVI, through two subsidiaries, Qinghai Mid-Heaven Sincerity Technology Co., Ltd (“Sincerity”) and Qinghai Mid-Heaven Sincerity Salt-Lake R&D Co., Ltd (“Salt-Lake”) owns 100% of Qing Hai Mid-Heaven Boron & Lithium Technology Company, Ltd. (“Qinghai Technology”).

 

The Acquisition was structured as a tax-free reorganization. As a result of the share exchange agreement, Mid-heaven BVI’s shareholders own approximately 57% of the combined company.  For accounting purposes, the transaction was accounted for as a reverse acquisition of the Company by Mid-heaven BVI.

 

The main operating entity, Qinghai Technology was incorporated on December 18, 2018. The business of Qinghai Technology was carved out of the business of Qinghai Zhongtian Boron & Lithium Mining Co., Ltd (“Qinghai Mining”) on December 20, 2018. Qinghai Mining was founded on March 6, 2001, and manufactures and wholesales boric acid and related compounds for industrial and consumer usage. Qinghai Technology obtains its raw material minerals exclusively from Qinghai Mining and currently processes boric acid by crushing and processing ore.

 

 

Principal Factors Affecting Our Financial Performance

 

The economic conditions our subsidiaries faced in recent years, made it impossible for them to pay dividends to our US parent company, which depends upon such dividends to meet its financial obligations. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of the subsidiary’s retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Further, the Company’s PRC subsidiaries are required to take certain reserves as detailed in Note 14 to our financial statements. As a result, we sought alternative sources of capital for our US parent company. On July 27, 2012, we entered into a secured, revolving credit facility with Northtech Holdings Inc., a British Virgin Islands (“BVI”) corporation owned by certain members of our former management, James Wang, Rhett Wang and Wen Sha. Jane Ai, our Corporate Secretary, is also a part owner of Northtech. As amended on December 21, 2012, the Credit Agreement provides for borrowings of up to $2,500,000 with any amounts borrowed due on April 30, 2014. Borrowings under the Credit Agreement are secured by 55% of the equity interest in each of our wholly, directly-owned subsidiaries and are repayable, at our option, in shares of our common stock. On December 21, 2012, we repaid $1,300,000 of the $1,384,455 outstanding under the Credit Agreement with 1,300,000 restricted shares of our common stock, approximately 22.67% of our total issued and outstanding shares of Common Stock, as authorized by the Credit Agreement and approved by our shareholders. On June 25, 2013, the Board approved second amendment to the credit and security agreement and on August 23, 2013, we entered into second amendment to the credit and security agreement with Northtech, which redefined the “base rate”, and adjusted the base rate to 10%, compounded quarterly, effective January 1, 2013. On March 26, 2014, we gave notice to Northtech pursuant to the terms of the Credit and Security Agreement between the Company and Northtech, dated July 27, 2012, as amended, extending the maturity date on the Credit Agreement from April 30, 2014 to January 31, 2015. On July 14, 2014, we entered the third amendment to the Credit Agreement with Northtech; the Amendment modifies the definition of “Average Share Price” in the Credit Agreement to decrease the minimum and maximum values for the “Average Share Price,” by 20% each from $0.50 to $0.40 and from $3.50 to $2.80, respectively. The Amendment also increases the maximum line which may be borrowed under the Credit Agreement from $2,500,000 to $3,250,000 and extends the maturity date for amounts borrowed from April 30, 2014 to October 31, 2015.  On December 28, 2015, we entered into the Fourth Amendment to the Credit and Security Agreement dated July 27, 2012, (as first amended on December 21, 2012 and subsequently amended on August 23, 2013, and July 14, 2014, between the Company and Northtech).  The Amendment provides that we will repay $1,600,000 of the outstanding principal and Northtech will extend the maturity date to July 31, 2016 for an extension fee of $100,000, 1,500,000 shares of common stock of SmartHeat, par value $.001 per share, which shall be restricted stock and a 10% Convertible Preferred Stock of its wholly owned subsidiary Heat HP, Inc. (“Heat HP”) representing 20% of the voting power of Heat HP, having a conversion, redemption and liquidation value of $1,000,000 and a 10% cumulative dividend accruing and payable quarterly ($25,000 per quarter).  In addition, the parties agreed to adjust the minimum conversion/exchange price in the Amendment from $.40 to $.20 per share and the maximum conversion/exchange price from $2.80 to $1.40 to reflect the current market conditions of the stock.  The new maximum credit line was reduced to $2,500,000.  On July 31, 2016, the Company entered into the Fifth Amendment to the Credit and Security Agreement between the Company and Northtech. The Amendment increased the maximum credit line of the Credit Agreement to $3,500,000 and extended the maturity dated to October 31, 2017.  The Company agreed to pay to Northtech an amendment fee of $80,000 payable in 400,000 restricted shares of the Company’s Common Stock valued at $0.20 per share.  The Amendment received the approval of a majority of shareholders of the Company in a vote held at the meeting of the stockholders on September 10, 2016.

 

On June 14, 2018, SmartHeat entered into the Sixth Amendment (the “Amendment”) to the Credit and Security Agreement dated July 27, 2012, as amended (the “Credit Agreement”), between the Company and Northtech. In October of 2017, The Company entered into negotiations with Northtech to restructure the terms of the Credit Agreement. On October 31, 2017 the Credit Line was not extended, and the parties continued negotiations.  The parties agreed that Northtech will convert all outstanding interest and principal due under the Credit Agreement into the Company's common stock at $.065 per share, which was a premium of $.0649 to the thirty-day average closing price of the Company's common stock of $.0001 per share.  In addition, the parties agreed to reduce the maximum credit line under the Credit Agreement to $1,000,000 and extended the maturity date to December 31, 2018. Further conversion of any outstanding principal and interest under the Credit Agreement will be based on conversion price subject to a minimum of $.065 per share and a maximum of $.50 per share. As a result of the entering into the Amendment, the Company issued Northtech 71,283,000 restricted shares of its common stock which resulted in Northtech and Mr. Jimin Zhang, sole stockholder and director of Northtech, holding approximately 95% of all of the issued and outstanding common stock of the Company after giving effect to the transaction. Upon the issuance of the common stock to Northtech, the total interest and principal of $4,633,395 due to Northtech was reduced to zero. 

 

 

On December 30, 2013, we closed the transaction contemplated by the EIPA dated October 10, 2013, whereby the buyers purchased 40% of the Company’s equity interests in the following PHE segment subsidiaries: SmartHeat Taiyu (Shenyang) Energy; SmartHeat Siping Beifang Energy Technology Co., Ltd.; SmartHeat (Shenyang Energy Equipment) Co. Ltd.; Hohhot Ruicheng Technology Co., Ltd.; and Urumchi XinRui Technology Limited Liability Company (collectively, the “Target Companies”). The purchase price was RMB 5 million ($0.82 million). Urumchi XinRui was 46% owned by SmartHeat US parent company.

 

On November 28, 2014, we entered into the Amended and Restated EIPA, which amended and restated the EIPA dated October 10, 2013 between the Company and the buyers. Under the terms of the Amended EIPA, the buyers had agreed to purchase the remaining 60% of the Company’s equity interests in the Target Companies effective as of December 31, 2014 (the “Closing Date”). The purchase price for the remaining 60% consisted of: (i) consideration of RMB 8.5 million ($1.39 million) and (ii) the forgiveness of all net indebtedness owed to the Target Companies by SmartHeat and each of its subsidiaries as of December 31, 2014. The effectiveness of the transaction was subject to the following conditions: (i) approval of its shareholders and (ii) receipt by the BOD of the Company of an opinion that the purchase and sale transaction was fair to the shareholders of SmartHeat from a financial point of view. The parties executed a mutual release to be delivered at the closing which provide, in part, for the Target Companies to forgive all net indebtedness from SmartHeat and all of its other subsidiaries. In the event that the conditions were not met prior to December 31, 2014, the consideration and all documents were to be deposited into escrow and released when the conditions were satisfied; provided that if the conditions were not satisfied on or before March 31, 2015, either party may terminate the Amended EIPA and the funds and documents be returned to the depositing party. The termination deadline of the Amended EIPA was extended to May 15, 2015.

 

On May 11, 2015, the Company’s stockholders approved the sale of all of the remaining interests, constituting 100% of its ownership interests, of certain subsidiaries of the Company as described above, all of the conditions precedents to the Stock Sale were satisfied which consisted of: (i) approval of its stockholders and (ii) receipt by the BOD of the Company of an opinion that the Stock Sale was fair to the stockholders of SmartHeat from a financial point of view. The parties executed a mutual release which became effective and provided, in part, that the Target Companies forgave all net indebtedness from SmartHeat and all of its other subsidiaries owing to the Target Companies. The consideration and all documents relating to the transaction were released from escrow upon the satisfaction of the foregoing conditions. The Stock Sale was effective December 31, 2014.

 

Since we decided to seek bankruptcy protection for our primary operating subsidiary, SmartHeat Pump, we have little if any operations, and we completed a reverse merger with Mid-heaven BVI on December 31, 2018.

 

Related Party Transactions

 

Qinghai Technology purchased raw material boron rock from Qinghai Mining (owned by three major shareholders of the Company), and received no-interest short-term advances from Qinghai Mining. As of December 31, 2018 and 2017, total due to Qinghai Mining was $3.88 million and $2.73 million, respectively.

 

Qinghai Technology used equipment that belongs to Qinghai Province DaChaiDan ZhongTian Resources Development Co., Ltd (“Zhongtian Resources”, owned by two major shareholders of the Company). The depreciation of these fixed assets had an impact on the production costs of boric acid of the Company, and was included in the Company’s cost of sales. Due to Zhongtian Resources resulting from using its equipment was $0.11 million and $0.07 million at December 31, 2018 and 2017, respectively.

 

Qinghai Technology purchased raw material sulfuric acid from DaChaiDan SanXin Industrial Company Ltd (“SanXin”). Outstanding payable balance to SanXin at December 31, 2018 and 2017 was $0.13 million and $0.12 million, respectively. SanXin is a non-related party company; however, Qinghai Mining assumed all the payables that Qinghai Technology owed to SanXin at December 31, 2018 and 2017 under a Debt Offset Agreement between the Company, Qinghai Mining and SanXin.

 

Qinghai Technology sold boric acid to Qinghai Dingjia Zhixin Trading Co., Ltd (“Dingjia”, 90% owned by the son of the Company’s major shareholder). For the years ended December 31, 2018 and 2017, the Company’s sales to Dingjia was $1.52 million and $4.02 million, respectively. At December 31, 2018 and 2017, outstanding receivables from Dingjia was $4.06 million and $5.28 million, respectively.

 

 

Qinghai Technology, Qinghai Mining, Zhongtian Resources and Dingjia entered a Debt Offset Agreement, in which, Qinghai Mining assumed the outstanding payable balance of Qinghai Technology to Zhongtian at December 31, 2018 and 2017, and Qinghai Technology transferred the outstanding receivable balance from Dingjia to Qinghai Mining. With execution of the Debt Offset Agreement, the Company had $54,976 net due to Qinghai Mining at December 31, 2018, and $2,350,061 net due from Dingjia at December 31, 2017.

 

In addition, at December 31, 2018, the Company had $255,233 due to another major shareholder of the Company, resulting from the certain of the Company’s operating expenses such as legal and audit fees that were paid by this major shareholder on behalf of the Company. This short term advance bore no interest, and was payable upon demand.

 

The following table summarized the due from (to) related parties as of December 31, 2018 and 2017:

 

     

2018

   

2017

 
 

Related party name

               

Due from

Dingjia

  $ 4,058,148     $ 5,277,995  

Due to

Qinghai Mining

    (3,878,896 )     (2,731,102 )

Due to

Zhongtian Resources

    (106,345 )     (74,490 )

Due to

SanXin (debts assumed by Qinghai Mining)

    (127,883 )     (122,342 )

Due to

A major shareholder

    255,233       -  

Due from (to), net

  $ (310,209 )   $ 2,350,061  

 

Significant Accounting Policies

 

While our significant accounting policies are more fully described in Note 2 to our consolidated financial statements (“CFS”), we believe the following accounting policies are the most critical to aid you in fully understanding and evaluating this management discussion and analysis.

 

Basis of Presentation

 

Our CFS are prepared in accordance with accounting principles generally accepted in the United States of America, or US GAAP. 

 

Principles of Consolidation

 

For the year ended December 31, 2018, the accompanying CFS include the accounts of SmartHeat’s US parent, and its subsidiaries Heat HP and Heat PHE, and their subsidiaries SanDeKe, Jinhui, SmartHeat Investment, SmartHeat Trading, SmartHeat Pump, and Heat Exchange; and Mid-heaven BVI and its subsidiaries, Sincerity, Salt-Lake and Qinghai Technology, which are collectively referred to as the “Company.” For the year ended December 31, 2017, the accompanying CFS include the accounts of Mid-heaven BVI and its subsidiaries, Sincerity, Salt-Lake and Qinghai Technology as a result of reverse merger of SmartHeat by Mid-heaven BVI. All significant intercompany accounts and transactions were eliminated in consolidation. 

 

Use of Estimates

 

In preparing the financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts, and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates.

 

 

Accounts Receivable

 

We maintain reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Based on historical collection activity, we had bad debt allowances for accounts receivable of $1.78 million and $0 at December 31, 2018 and 2017, respectively.

 

Revenue Recognition

 

In May 2014 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry specific guidance. This new standard requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB subsequently issued the following amendments to ASU No. 2014-09 that have the same effective date and transition date: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Company adopted these amendments with ASU 2014-09 (collectively, the new revenue standards).

 

The new revenue standards became effective for the Company on January 1, 2018, and were adopted using the modified retrospective method. The adoption of the new revenue standards as of January 1, 2018 did not change the Company’s revenue recognition as the majority of its revenues continue to be recognized when the customer takes control of its product. As the Company did not identify any accounting changes that impacted the amount of reported revenues with respect to its product revenues, no adjustment to retained earnings was required upon adoption.

 

Under the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation.

 

Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. Sales and purchases are recorded net of VAT collected and paid as the Company acts as an agent for the government. VAT taxes are not affected by the income tax holiday.

 

Deferred Income

 

Deferred income consists primarily of government grants and subsidies for supporting the Company’s technology innovation and transformation of boric acid, lithium and magnesium sulfate projects. The Company uses most of the subsidies to purchase machinery and equipment. Deferred income is amortized to revenue (other income) over the life of the assets for which the grant and subsidy was used for. Subsidies for declared project fund require government inspection to ensure proper use of the funds for the designated project.

 

Foreign Currency Translation and Comprehensive Income (Loss)

 

The accounts of the US parent company are maintained in USD. The functional currency of the Company’s China subsidiaries is the Chinese Yuan Renminbi (“RMB”) and the functional currency of SmartHeat Germany, the Company’s subsidiary in Germany, is the Euro (“EUR”). The accounts of the China subsidiaries and German subsidiary were translated into USD in accordance with FASB ASC Topic 830, “Foreign Currency Matters.” According to FASB ASC Topic 830, all assets and liabilities were translated at the exchange rate on the balance sheet date; stockholders’ equity was translated at the historical rates and statement of operations items were translated at the average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with FASB ASC Topic 220, “Comprehensive Income).”

 

 

Impairment of Long-Lived Assets

 

Long-lived assets, which include tangible assets, such as property and equipment, goodwill and other intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.

 

Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized based on the excess of the carrying amount over the fair value (“FV”) of the assets. FV generally is determined using the asset’s expected future discounted cash flows or market value, if readily determinable. 

 

Recent Accounting Pronouncements

 

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is in the process of evaluating the impact of adoption of this ASU on its CFS.

 

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its CFS.

 

In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The amendments are an improvement to U.S. GAAP because they provide guidance for each of the eight issues, thereby reducing the current and potential future diversity in practice. This ASU is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company adopted the guidance retrospectively to each period presented. The adoption did not have any material effect on the Company’s CFS.

 

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This ASU improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. For public business entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The adoption of this ASU did not have a significant impact on the Company’s CFS.

 

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2017, and interim period within those fiscal years. The Company adopted the guidance retrospectively to each period presented. The adoption did not have any material effect on the Company’s CFS.

 

 

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted the guidance effective January 1, 2018. The Company will evaluate the impact of adopting this standard prospectively upon any transactions of acquisitions or disposals of assets or businesses.

 

In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting this standard on its CFS.

 

In June 2018, the FASB issued ASU 2018-07, "Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. An entity should apply the requirements of ASC 718 to non-employee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The amendments specify that ASC 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The new guidance is effective for SEC filers for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2019 (i.e., January 1, 2020, for calendar year entities). Early adoption is permitted. The Company is evaluating the effects of the adoption of this guidance and currently believes it will impact the accounting of the share-based awards granted to non-employees.

 

SEC Disclosure Update and Simplification

 

In August 2018, the SEC issued Securities Act Release No. 33-10532 that amends certain disclosure requirements, including extending to interim periods the annual requirement to disclose changes in stockholders’ equity. Under the new requirements, registrants must now analyze changes in stockholders’ equity, in the form of a reconciliation, for the current and comparative year-to-date interim periods, with subtotals for each interim period. The final rule was effective in November 2018. The Company adopted the final rule and includeed a reconciliation of the changes in stockholders' equity in its Form 10-Q for the quarter that is after the year ending December 31, 2018. 

 

Results of Operations

 

Year ended December 31, 2018 Compared to year ended December 31, 2017

 

The following table sets forth the consolidated results of our operations for the periods indicated as a percentage of net sales, certain columns may not add due to rounding.

 

   

2018

   

% of Sales

   

2017

   

% of Sales

 

Sales

  $ 6,029,147             $ 7,265,955          

Cost of goods sold

    5,147,641       85.4 %     6,096,248       83.9 %

Gross profit

    881,506       14.6 %     1,169,707       16.1 %

Selling expenses

    294,892       4.9 %     206,290       2.8 %

General and administrative expenses

    254,865       4.2 %     363,189       5.0 %

Operating expenses

    549,757       9.1 %     569,479       7.8 %

Income from operations

    331,749       5.5 %     600,228       8.3 %

Other income (expenses), net

    229,069       3.8 %     15,248       0.2 %

Income before income taxes

    560,818       9.3 %     615,476       8.5 %

Income tax expense

    84,123       1.4 %     92,321       1.3 %

Net income

  $ 476,695       7.9 %   $ 523,155       7.2 %

 

 

Sales

 

Sales for 2018 and 2017 was $6,029,147 and $7,265,955, respectively, a decrease of $1,236,808 or 17.0%. For the years ended December 31, 2018 and 2017, the Company’s sales to Dingjia, a related party company 90% owned by the son of the major shareholder of the Company, was $1.52 million and $4.02 million, respectively. The decrease of sales was due to decreased demand to our products resulting from 1) China’s national macro-policy on economic transformation and improving environment protection and production safety, some of our small business customers were impacted by the policy and stopped the operation or even closed down, and 2) closed our own production facility in January and February for internal improvements on the environmental protection.          

 

Cost of Sales

 

Cost of sales (“COS”) for 2018 and 2017 was $5,147,641 and 6,096,248, respectively, a decrease of $948,607 or 15.6%. The decrease was mainly due to the decrease of sales. The COS as a percentage of sales was 85.4% for the year ended December 31, 2018 compared with 83.9% for 2017.

 

Gross profit

 

The gross profit for 2018 and 2017 was $881,506 and $1,169,707, respectively, a decrease of $288,201 or 24.6%. The profit margin was 14.6% for 2018 compared to 16.1% for 2017, the decrease in profit margin was mainly due to the overall inflation in China which also impacted our operation costs such as increased purchase price of sulfuric acid, transportation cost and winter heating fee, etc.

 

Operating expenses

 

Selling expenses consist mainly of salary and freight. Selling expense were $294,892 for 2018, compared to $206,290 for 2017, an increase of $88,602 or 43.0%, mainly resulting from increased freights expense by $66,279 and increase salary expenses by $18,134.

 

General and administrative expenses consist mainly of R&D, office, welfare, business meeting, maintenance, and utilities. General and administrative expenses were $ 254,865 for 2018, compared to $363,189 for 2017, a decrease of $108,324 or 29.8%, mainly resulting from decreased maintenance expenses by $63,440, decreased office expense by $11,111, decreased R&D expense by $13,584 and decreased other expense by $20,189.

 

Non-operating income (expenses), net

 

Net non-operating income was $229,069 for 2018, compared to net non-operating income of $15,248 for 2017, an increase of other income of $213,821 or 1,402.3%. The increase was mainly due to increased government subsidy by $197,263 and decreased financial expense by $16,558.

 

Government provides certain grants and subsidies for supporting the Company’s technology innovation and transformation of boric acid, lithium and magnesium sulfate projects. The Company uses most of the subsidies to purchase machinery and equipment, which is amortized to revenue (other income) over the life of the assets for which the grant and subsidy was used for. Subsidies for declared project fund require government inspection to ensure proper use of the funds for the designated project.

 

Net Income

 

We had a net income of $476,695 for 2018, compared to net income of $523,155 for 2017, a decrease of $ 46,460 or 8.9%. The decrease in our net income mainly resulted from the decrease sales as describe above despite increased subsidy income.

 

 

Liquidity and Capital Resources

 

As of December 31, 2018, we had cash and equivalents of $0.16 million. Working capital deficit was $6.77 million at December 31, 2018. The ratio of current assets to current liabilities was 0.29:1 at December 31, 2018. 

 

The following is a summary of cash provided by or used in each of the indicated types of activities during 2018 and 2017:

 

   

2018

   

2017

 

Cash provided by (used in):

               

Operating activities

  $ (2,374,622

)

  $ 1,210,649  

Investing activities

  $ 160,244     $ (411,751 )

Financing activities

  $ 2,377,523     $ (798,898 )

 

Net cash used in operating activities was $2,374,622 for 2018, compared to net cash provided by operating activities of $1,210,649 in 2017. The increase of cash outflow from operating activities for 2018 was principally attributable to increased cash outflow from inventory by $2,270,106, increased cash outflow from accounts payable by $968,146, and increased cash outflow from unearned revenue by $408,972, which was partly offset by increased cash inflow from accrued liabilities and other payable by $248,362.

 

Net cash flow provided by investing activities was $160,244 for 2018 compared to net cash used in investing activities of $411,751 in 2017. The net cash provided by investing activities in 2018 consisted of cash received from acquisition of SmartHeat by Mid-Heaven BVI of $163,145, offset with cash paid for purchase of property and equipment of $2,901. The net cash used in financing activities in 2017 consisted of purchase of property and equipment of $411,751.

 

Net cash provided by financing activities was $2,377,523 for 2018, compared to net cash used in financing activities of $798,898 in 2017. The net cash provided by financing activities in 2018 consisted of increase in due to related party of $2,377,523. The net cash used in financing activities in 2017 consisted of decrease in due to related party of $798,898.

 

Historically our accounts receivable remained outstanding for a significant period of time based on the standard payment terms with our customers. The increase in accounts receivable outstanding for more than 180 days was historically due mainly to payment delays from certain state-owned customers that experienced working capital difficulties because of the current deflationary fiscal policy of the PRC government. Bad debt allowance was reserved in accordance with the Company’s accounting policy, though the Company continues to work to collect all funds due.

 

Dividend Distribution

 

We are a US holding company that conducts substantially all of our business through our wholly owned and other consolidated operating entities in China and Germany. We rely in part on dividends paid by our subsidiaries in China for our cash needs, including the funds necessary to pay dividends and other cash distributions to our shareholders, to service any debt we may incur and to pay our operating expenses. The payment of dividends by entities organized in China is subject to limitations. In particular, PRC regulations currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. Our PRC subsidiaries also are required to set aside at least 10% of their after-tax profit based on PRC accounting standards each year to a statutory surplus reserve fund until the accumulative amount of such reserve reaches 50% of registered capital. These reserves are not distributable as cash dividends. In addition, our PRC subsidiaries, at their discretion, may allocate a portion of their after-tax profit to their staff welfare and bonus fund, which may not be distributed to equity owners except in the event of liquidation. Moreover, if any of our subsidiaries incur debt on its own behalf in the future, the instruments governing the debt may restrict such subsidiary’s ability to pay dividends or make other distributions to us. Any limitation on the ability of one of our subsidiaries to distribute dividends and other distributions to us could materially and adversely limit our ability to make investments or acquisitions that could be beneficial to our businesses, pay dividends or otherwise fund and conduct our business.

 

 

Off-Balance Sheet Arrangements

 

We have not entered into any other financial guarantees or other commitments to guarantee the payment obligations of any third parties other than as described following under “Contractual Obligations.” We have not entered into any derivative contracts that are indexed to our shares and classified as stockholders’ equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us. 

 

Contingencies

 

The Company’s former operations were conducted in the PRC and were subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments in China and foreign currency exchange. The Company’s results may be adversely affected by changes in PRC government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad and rates and methods of taxation, among other things.

 

The Company’s sales, purchases and expense transactions in China are denominated in RMB and all of the Company’s assets and liabilities in China are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current PRC law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB may require certain supporting documentation in order to affect the remittance.

 

 

 

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

 

Not required.

 

Item 8. Financial Statements and Supplementary Data

 

Our financial statements, together with the report thereon, appear in a separate section of this Annual Report beginning on page F-1.

 

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 

None.

 

Item 9A. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

Our management, with the participation of our President and Acting Chief Accountant, our principal executive officer and acting principal financial officer, respectively, evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of the end of the period covered by this report. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our President and Acting Chief Accountant, as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, our President and Acting Chief Accountant concluded that, as of December 31, 2018, our disclosure controls and procedures were not effective as of such date because of a material weakness identified in our internal control over financial reporting related to our internal level of U.S. GAAP expertise. We lack sufficient personnel with the appropriate level of knowledge, experience and training in U.S. GAAP for the preparation of financial statements in accordance with U.S. GAAP. None of our internal accounting staff, including our Acting Chief Accountant, that are primarily responsible for the preparation of our books and records and financial statements in compliance with U.S. GAAP holds a license such as Certified Public Accountant in the U.S., nor have any attended U.S. institutions or extended educational programs that would provide enough of the relevant education relating to U.S. GAAP.

 

Management’s Annual Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) of the Exchange Act. Our internal control over financial reporting is designed 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 and includes those policies and procedures that:

 

 

● 

Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;

 

 

 

 

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with US GAAP, and the receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

 

 

 

 

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Therefore, internal control over financial reporting determined to be effective provides only reasonable assurance regarding the reliability of financial reporting and the preparations of financial statements for external purposes in accordance with generally accepted accounting principles.

 

 

Our management carried out an evaluation of the effectiveness of our internal control over financial reporting based on the framework in “Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based upon this evaluation, our management concluded that our internal control over financial reporting was not effective as of December 31, 2018, because of a material weakness related to our internal level of U.S. GAAP expertise. We lack sufficient personnel with the appropriate level of knowledge, experience and training in U.S. GAAP for the preparation of financial statements in accordance with U.S. GAAP. None of our internal accounting staff, including our Chief Financial Officer, that are primarily responsible for the preparation of our books and records and financial statements in compliance with U.S. GAAP holds a license such as Certified Public Accountant in the U.S., nor have any attended U.S. institutions or extended educational programs that would provide enough of the relevant education relating to U.S. GAAP.

 

In order to mitigate the foregoing material weakness, we engaged an outside accounting consultant to assist us in the preparation of our financial statements to ensure that these financial statements are prepared in conformity to U.S. GAAP. Our outside accounting consultant is a Certified Public Accountant in the U.S. and has significant experience in the preparation of financial statements in conformity with U.S. GAAP. Our Chief Financial Officer and internal accounting personnel consult with our outside accounting consultant on an ongoing basis with regards to our treatment and conversion of financials from PRC GAAP to U.S. GAAP. We believe that the engagement of this outside accounting consultant lessens the possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis, and we will continue to monitor the effectiveness of this action and make any changes that our management deems appropriate. We expect to continue to rely on this outside consulting arrangement to supplement our current internal accounting staff for the foreseeable future.

 

Our Board of Directors and management are evaluating remediation measures that we will undertake to address this material weakness and will continue this evaluation in order to implement a comprehensive remediation plan. We expect that this plan will include but not be limited to (a) appointing a principal accounting officer with extensive U.S. GAAP training and experience, (b) hiring accounting personnel with appropriate knowledge and experience in U.S. GAAP and (c) providing more training on U.S. GAAP to accounting and other relevant personnel responsible for the preparation of books, records and financial statements. In the interim, our Acting Chief Accountant has attended U.S. GAAP training courses conducted by our outside Sarbanes-Oxley consultant and intends to continue attending training courses in U.S. GAAP. Until such time as we hire qualified accounting staff and train our current accounting staff with the requisite U.S. GAAP experience, however, it is unlikely we will be able to remediate this material weakness in our internal control over financial reporting.

 

We believe that the foregoing steps will remediate the material weakness identified above, and we will continue to monitor the effectiveness of these steps and make any changes that our management deems appropriate.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the fiscal year ended December 31, 2018, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

Item 9B. Other Information

 

None.

 

 

PART III

 

Item 10. Directors, Executive Officers and Corporate Governance

 

The following table sets forth the names of our directors, executive officers and their ages, positions and biographical information as of the date of this report. Our executive officers are appointed by, and serve at the discretion of, our Board of Directors. Our directors hold office for one-year terms or until their successors have been elected and qualified. There are no family relationships between any of our directors, executive officers or other key personnel and any other of our directors, executive officers or key personnel. There are no arrangements or understandings between any of our directors or executive officers and any other persons pursuant to which such director or executive officer was selected in that capacity.

 

Name

 

Age

 

Position

Mao Zhang

 

73

 

Chairman of Board of Directors; General Manager of Qinghai Technology

Jimin Zhang

 

53

 

Chief Executive Officer and Director

Kenneth Scipta

 

76

 

Director

Xing Hai Li

 

56

 

Director

Liguo Zhang

 

53

 

Director

 

Mao Zhang, is the Chairman of the Board of Smartheat and General Manager of Qinghai Technologynology. Mr. Zhang has been the General Manager of Qing Hai Mid-Heaven Boron & Lithium Mining Company, Ltd. (“Qing Hai Mining”) Since its inception on March 6, 2001. Mr. Zhang also serves as the Vice Chairman of the Boron Chemical Branch of China Inorganic Salts Industry Association. Mr. Zhang was selected to serve as a director on our Board due to his broad industry experience and prior leadership experience at Qinghai Technology. 

 

Jimin Zhang, is the Chief Executive Officer and a director of Smartheat. For the past five years Mr. Zhang has been the managing director of the Zhang’s family office. Since March of 2018, Mr. Zhang served as a financial and operations consultant to Qing Hai Mining and supervised the carve out of Qinghai Technology o from Qing Hai Mining. Mr. Zhang is the Managing Director of Northtech Holdings, Inc., the former majority stockholder and former creditor of Smartheat. Mr. Zhang was selected to serve as a director on our Board due to his financial industry experience and experience as an investor.

 

Xing Hai Li, serves as a director of Smartheat. For the past five years Mr. Li has been a professor at Central South University of China’s School of Metallurgy and Environment where he has published numerous articles on materials, lithium ion batteries, metallurgical engineering, electrochemistry and conductivity. Mr. Li was selected to serve as a director on our Board due to his broad industry experience and expertise in the lithium production methods.

 

Liguo Zhang, serves as a director of Smartheat. For the past five years Mr. Zhang has served as a managing partner of the Guo Feng Law Firm where he practices corporate and securities law. Mr. Zhang was selected to serve as a director on our Board due to his experience with the corporate and securities laws in the PRC and his legal experience relating to mining, real estate and chemical production.

 

Kenneth Scipta, director, was appointed to our Board of Directors and as Chairman of our Audit Committee on July 10, 2012 and as our President on November 29, 2016. Mr. Scipta, a certified public accountant, has over 35 years of relevant accounting experience, and has served on several boards of directors. From 1993 to 1996, Mr. Scipta was the president and a board member of Mid-West Springs Manufacturing Company, a NASDAQ traded company, where he was responsible for day to day operations, planning, administration and financial reporting. Upon Mr. Scipta’s resignation he assumed the duties of president of the special products division, which included catalog sales, die springs and the development of international sales. Previously, from 1979-1993, Mr. Scipta served in various positions such as president, vice president of finance and vice president of sales and marketing for Mid-West’s primary subsidiary. From 1998 to 2006, Mr. Scipta was the chief executive officer and a board member of First National Entertainment Company, a multi-million-dollar company traded on NASDAQ. Mr. Scipta was selected to serve as a director on our Board due to his prior experience as our audit committee chairman, qualification as a certified public accountant and financial leadership experience.

 

 

Legal Proceedings

 

During the past ten years, none of our directors or executive officers has been:

 

 

● 

The subject of any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;

 

 

 

 

Convicted in a criminal proceeding or is subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);

 

 

 

 

Subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in an type of business, securities or banking activities;

     

 

● 

Found by a court of competent jurisdiction (in a civil action), the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, that has not been reversed, suspended, or vacated;

 

 

 

 

Subject of, or a party to, any order, judgment, decree or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of a federal or state securities or commodities law or regulation, respecting financial institutions or insurance companies, law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

 

 

 

 

Subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization, any registered entity or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

 

None of our directors, officers or affiliates, or any beneficial owner of 5% or more of our common stock, or any associate of such persons, is an adverse party in any material proceeding to, or has a material interest adverse to, us or any of our subsidiaries.

 

Audit Committee and Audit Committee Financial Expert

 

We have established a separately designated standing audit committee in accordance with Section 3(a)(58)(A) of the Exchange Act. Our Audit Committee consists of Messrs. Scipta, Li, and Liguo Zhang, each of whom is an independent director. Mr. Scipta, Chairman of the Audit Committee, is an “audit committee financial expert” as defined under Item 407(d) of Regulation S-K. The purpose of the Audit Committee is to represent and assist our Board of Directors in its general oversight of our accounting and financial reporting processes, audits of the financial statements and internal control and audit functions. As more fully described in its charter, a copy of which is available on our website at www.smartheatinc.com, the functions of the Audit Committee include the following:

 

 

● 

Appointment of independent auditors, determination of their compensation and oversight of their work;

 

 

 

 

Review the arrangement for and scope of the audit by independent auditors;

 

 

 

 

Review the independence of the independent auditors;

 

 

● 

Consider the adequacy and effectiveness of the internal controls over financial reporting;

 

 

 

 

Pre-approve audit and non-audit services;

 

 

 

 

Establish procedures regarding complaints relating to accounting, internal accounting controls, or auditing matters;

 

 

● 

Review and approve any related party transactions;

 

 

 

 

Discuss with management our major financial risk exposures and our risk assessment and risk management policies; and

 

 

 

 

Discuss with management and the independent auditors our draft quarterly interim and annual financial statements and key accounting and reporting matters.

 

 

Code of Ethics

 

Our Board of Directors has adopted a Code of Conduct, which applies to all of our directors, officers and employees that constitutes our “code of ethics” within the meaning of Section 406 of the Sarbanes-Oxley Act. The purpose of the Code of Conduct is to promote honest and ethical conduct. The Code of Conduct is posted on our website located at www.smartheatinc.com and is available in print, without charge, upon written request to SmartHeat Inc. 60 East Ren-Min Road, Dachaidan, (Da Qaidam Administrative Committee), XaiXi, Qinghai Province 817000. We intend to disclose any future amendments to our Code of Conduct, and any waivers of provisions of the Code of Conduct required to be disclosed under the rules of the SEC, on our website.

 

Corporate Governance Guidelines

 

The Board has adopted corporate governance guidelines to assist and guide its members in the exercise of its responsibilities. These guidelines should be interpreted in accordance with any requirements imposed by applicable federal or state law or regulation and our certificate of incorporation and bylaws. Our corporate governance guidelines are available on our website. Although these corporate governance guidelines have been approved by the Board, it is expected that these guidelines will evolve over time as customary practice and legal requirements change. In particular, those guidelines that encompass legal, regulatory or exchange requirements as they currently exist will be deemed to be modified as and to the extent that such legal, regulatory or exchange requirements are modified. In addition, the guidelines may also be amended by the Board at any time as it deems appropriate.

 

Board and Committee Meetings

 

The Board meets on a regularly scheduled basis during the year to review significant developments affecting us and to act on matters requiring their approval. It also holds special meetings when important matters require action between scheduled meetings. Members of senior management regularly attend meetings to report on and discuss their areas of responsibility. During 2018, the Board held four meetings. The Board has three standing committees:

 

 

● 

the audit committee, which held four meetings in 2018;

 

 

 

 

the compensation committee, which held no meetings in 2018; and

 

 

 

 

the nominating and corporate governance committee, which held no meetings in 2018.

 

Each of the incumbent directors of the Board attended at least 75% of the aggregate of all meetings of the Board and meetings of committees of our Board upon which they served (during the periods that they served) during 2019.

 

Annual Meeting Attendance

 

It is our policy that members of our Board are encouraged to attend annual meetings of our stockholders.

 

Committees

 

Our bylaws provide that the Board may delegate responsibility to committees. The Board has three standing committees: an audit committee, a compensation committee, and a nominating and corporate governance committee. The Board has also adopted a written charter for each of the three standing committees. Each committee charter is available in the corporate governance section of our website at http://ir.hubspot.com/investors/corporate-governance.

 

 

Audit Committee

 

Messrs. Scipta, Li, and Liguo Zhang currently serve on the audit committee, which is chaired by Mr. Scipta. The Board has determined that each member of the audit committee is “independent” for audit committee purposes as that term is defined under Rule 10A-3 of the Exchange Act. Mr. Scipta meets the requirements for financial literacy under the applicable rules and regulations of the SEC. The Board has designated Mr. Scipta as an “audit committee financial expert,” as defined under the applicable rules of the SEC.

 

The audit committee’s responsibilities include:

 

 

overseeing the work of our independent registered public accounting firm;

 

 

approving the hiring, discharging and compensation of our independent registered public accounting firm;

 

 

approving engagements of the independent registered public accounting firm to render any audit or permissible non-audit services;

 

 

reviewing the qualifications and independence of the independent registered public accounting firm;

 

 

monitoring the rotation of partners of the independent registered public accounting firm on our engagement team as required by law;

 

 

reviewing our consolidated financial statements and reviewing our critical accounting policies and estimates;

 

 

reviewing the adequacy and effectiveness of our internal controls; and

 

 

reviewing and discussing with management and the independent registered public accounting firm the results of our annual audit and our interim consolidated financial statements.

 

The audit committee met four times during the fiscal year ended December 31, 2018. The audit committee operates under a written charter adopted by the Board of Directors,

 

Compensation Committee

 

Messrs. Scipta, Li, and Liguo Zhang currently serve on the compensation committee, which is chaired by Mr. Li. The Board has determined that each member of the compensation committee is “independent” as that term is defined in the applicable SEC. The compensation committee’s responsibilities include:

 

 

reviewing and approving corporate goals and objectives relevant to compensation of our chief executive officer and other executive officers;

 

 

evaluating the performance of our executive officers in light of established goals and objectives;

 

 

reviewing and recommending compensation of our executive officers based on its evaluations;

 

 

reviewing and recommending compensation of our directors; and

 

 

administering the issuance of stock options and other awards under our stock plans.

 

The compensation committee did not meet in 2018. The compensation committee operates under a written charter adopted by the Board of Directors.

 

 

Nominating and Corporate Governance Committee

 

Messrs. Scipta, Li, and Liguo Zhang currently serve on the nominating and corporate governance committee, which is chaired by Mr. Zhang. The Board has determined that each member of the nominating and corporate governance committee is “independent” as that term is defined in the applicable SEC. The nominating and corporate governance committee’s responsibilities include:

 

 

evaluating and making recommendations regarding the organization and governance of the board of directors and its committees;

 

assessing the performance of members of the board of directors and making recommendations regarding committee and chair assignments;

 

reviewing and making recommendations with regard to our corporate succession plans for our chief executive officer and other executive officers;

 

recommending desired qualifications for board of directors’ membership and conducting searches for potential members of the board of directors; and

 

reviewing and making recommendations with regard to our corporate governance guidelines.

 

The nominating and corporate governance committee did not meet during the fiscal year ended December 31, 2018. The nominating and corporate governance committee operates under a written charter adopted by the Board.

 

Identifying and Evaluating Director Nominees

 

The Board is responsible for selecting its own members. The Board delegates the selection and nomination process to the nominating and corporate governance committee, with the expectation that other members of the Board, and of management, will be requested to take part in the process as appropriate.

 

Generally, the nominating and corporate governance committee identifies candidates for director nominees in consultation with management, through the use of search firms or other advisors, through the recommendations submitted by stockholders or through such other methods as the nominating and corporate governance committee deems to be helpful to identify candidates. Once candidates have been identified, the nominating and corporate governance committee confirms that the candidates meet all of the minimum qualifications for director nominees established by the nominating and corporate governance committee. The nominating and corporate governance committee may gather information about the candidates through interviews, detailed questionnaires, comprehensive background checks or any other means that the nominating and corporate governance committee deems to be appropriate in the evaluation process. The nominating and corporate governance committee then meets as a group to discuss and evaluate the qualities and skills of each candidate, both on an individual basis and taking into account the overall composition and needs of the Board. Based on the results of the evaluation process, the nominating and corporate governance committee recommends candidates for the Board’s approval as director nominees for election to the Board.

 

Procedures for Submitting Stockholder Proposals

 

Requirements for Stockholder Proposals to be Brought Before the Annual Meeting. For nominations of persons for election to our Board or other proposals to be considered at an annual meeting of stockholders, a stockholder must give written notice to our Secretary SmartHeat Inc. 60 East Ren-Min Road, Dachaidan, (Da Qaidam Administrative Committee), XaiXi, Qinghai Province 817000, not later than the close of business 90 days, nor earlier than the close of business 120 days, prior to the first anniversary of the date of the preceding year’s annual meeting. However, the bylaws also provide that in the event the date of the annual meeting is more than 30 days before or more than 60 days after such anniversary date, notice must be delivered not later than the close of business on the later of the 90th day prior to such annual meeting or the 10th day following the day on which public announcement of the date of such meeting is first made. Any nomination must include all information relating to the nominee that is required to be disclosed in solicitations of proxies for election of directors in election contests or is otherwise required under Regulation 14A of the Exchange Act, the person’s written consent to be named in the proxy statement and to serve as a director if elected and such information as we might reasonably require to determine the eligibility of the person to serve as a director. As to other business, the notice must include a brief description of the business desired to be brought before the meeting, the reasons for conducting such business at the meeting, and any material interest of such stockholder (and the beneficial owner) in the proposal. The proposal must be a proper subject for stockholder action. In addition, to make a nomination or proposal, the stockholder must be of record at the time the notice is made and must provide certain information regarding itself (and the beneficial owner), including the name and address, as they appear on our books, of the stockholder proposing such business, the number of shares of our capital stock which are, directly or indirectly, owned beneficially or of record by the stockholder proposing such business or its affiliates or associates (as defined in Rule 12b-2 promulgated under the Exchange Act) and certain additional information.

 

 

The advance notice requirements for the Annual Meeting are as follows: a stockholder’s notice shall be timely if delivered to our Secretary at the address set forth above not later than the close of business on the later of the 90th day prior to the scheduled date of the Annual Meeting or the 10th day following the day on which public announcement of the date of the Annual Meeting is first made or sent by us.

 

Requirements for Stockholder Proposals to be Considered for Inclusion in the Company’s Proxy Materials. In addition to the requirements stated above, any stockholder who wishes to submit a proposal for inclusion in our proxy materials must comply with Rule 14a-8 promulgated under the Exchange Act. For such proposals to be included in our proxy materials relating to our 2019 annual meeting of stockholders, all applicable requirements of Rule 14a-8 must be satisfied and we must receive such proposals no later than July 1, 2019. Such proposals must be delivered to our Secretary, SmartHeat Inc. 60 East Ren-Min Road, Dachaidan, (Da Qaidam Administrative Committee), XaiXi, Qinghai Province 817000.

 

Procedures for Shareholder Recommendations of Nominees to the Board of Directors

 

During 2018, there were no material changes to the procedures described in our Proxy Statement relating to the 2019 Annual Meeting of Shareholders by which shareholders may recommend nominees to our Board of Directors.

 

Section 16(a) Beneficial Ownership Reporting Compliance

 

Section 16(a) of the Exchange Act requires our executive officers and directors, and persons who own more than 10% of our common stock, to file reports regarding ownership of, and transactions in, our securities with the Commission and to provide us with copies of those filings. Based solely on our review of the copies received by us and on the written representations of certain reporting persons, we believe that all such Section 16(a) filing requirements were timely met during 2018.

 

Item 11. Executive Compensation

 

As a “smaller reporting company,” we have elected to follow the scaled disclosure requirements for smaller reporting companies with respect to the disclosures required by Item 402 of Regulation S-K. Under such scaled disclosure, we are not required to provide a Compensation Discussion and Analysis, Compensation Committee Report and certain other tabular and narrative disclosures relating to executive compensation.

 

Executive Compensation

 

The following table sets forth information concerning the compensation for the years ended December 31, 2018 and 2017, of each of our named executive officers.

 

Summary Compensation Table

 
                                                                     

Name and Principal Position

 

Year

 

Salary

   

Bonus

   

Stock

Awards

   

Option

Awards

   

Nonequity Incentive

Plan Compensation

   

Nonqualified Deferred

Compensation Earnings

   

All Other

Compensation

   

Total

 
        ($)     ($)     ($)(1)     ($)(1)     ($)     ($)     ($)     ($)  

Kenneth Scipta

 

2018

    10,000                                                       10,000  

President

 

2017

    10,000                                                       10,000  

Yingkai Wang

 

2018

    21,242       -       -       -       -       -       -       21,242  

Acting Chief Accountant

 

2017

    21,242       -       -       -       -       -       -       21,242  

 

No outstanding equity awards are held or granted to any of our named executive officers at December 31, 2019.

 

Agreements with Personnel

 

Mr. Scipta was compensated $10,000 per year as President and $30,000 as director and chairman of our audit committee in 2018. Mr. Scipta will be compensated $30,000 per year as a director in 2019.

 

Mr. Scipta resigned as President and Mr. Wang resigned as principal accounting officer on December 20, 2018.

 

 

Each of Jimin Zhang, Mao Zhang and Xudong Wang will be compensated $10,000 per month in their respective roles as General Manager of Qinghai Technology, Chief Executive Officer and Chief Financial Officer. Each of our officers is an at will employee.

 

We currently do not have any defined pension plan for our named executive officers. We shall provide to our officers all the necessary insurances and social welfares, including but not limited to medical, work injury, maternity, retirement and unemployment insurance and housing fund, according to our policies and the relevant laws and regulations of local governmental authorities and the PRC.

 

We currently do not have nonqualified defined contribution or other plans that provides for the deferral of compensation for our named executive officers nor do we currently intend to establish any such plan.

 

Grants of Plan-Based Awards

 

On May 25, 2010, our shareholders approved the 2010 Equity Incentive Plan authorizing the issuance of up to 100,000 shares of our common stock. The Compensation Committee administers the Plan and may grant awards, including restricted shares, incentive stock options and nonqualified stock options, under the Plan to our officers, directors and employees pursuant to the guidelines set forth in the Plan.

 

Change-In-Control and Separation Agreements

 

We do not have any existing arrangements providing for payments or benefits in connection with the resignation, severance, retirement or other termination of any of our named executive officers, or a change in control of the company or a change in the named executive officer’s responsibilities following a change in control.

 

Compensation of Directors

 

The following table sets forth information concerning the compensation of our directors for the year ended December 31, 2018.

 

Director Compensation Table for 2018

 

 

 

 

 

Fees Earned or

Paid in Cash

 

 

Option

Awards

 

 

All Other Compensation

 

 

Total

 

Name

 

($)

 

 

($)

 

 

($)

 

 

($)

 

                                 

Qingtai Kong

 

 

17,910

 

 

 

-

 

 

 

-

 

 

 

17,910

 

Kenneth Scipta

 

 

30,000

 

 

 

-

 

 

 

-

 

 

 

30,000

 

                                 

 

Our independent directors receive cash compensation, paid in equal quarterly installments, for their service. In addition, at the discretion of the non-interested members of the Compensation Committee, independent directors are eligible to receive bonuses for service to our company outside the normal duties as a director and grants of options to purchase our common stock under the 2010 Equity Incentive Plan. All directors are eligible to receive reimbursement of expenses incurred with respect to attendance at board meetings and meetings of committees thereof, which is not included in the above table. We do not maintain a medical, dental or retirement benefits plan for the directors.

 

The directors may determine remuneration to be paid to the directors with interested members refraining from voting. The Compensation Committee will assist the directors in reviewing and approving the compensation structure for the directors.

 

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

The following sets forth information as of July 1, 2019, regarding the number of shares of our common stock beneficially owned by (i) each person that we know beneficially owns more than 5% of our outstanding common stock, (ii) each of our named executive officers, (iii) each of our directors and (iv) all of our named executive officers and directors as a group.

 

 

The amounts and percentages of our common stock beneficially owned are reported on the basis of SEC rules governing the determination of beneficial ownership of securities. Under the SEC rules, a person is deemed to be a “beneficial owner” of a security if that person has or shares “voting power,” which includes the power to vote or to direct the voting of such security, or “investment power,” which includes the power to dispose of or to direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities of which that person has the right to acquire beneficial ownership within 60 days through the exercise of any stock option, warrant or other right. Under these rules, more than one person may be deemed a beneficial owner of the same securities and a person may be deemed to be a beneficial owner of securities as to which such person has no economic interest.

 

Unless otherwise indicated, each of the shareholders named in the table below, or his or her family members, has sole voting and investment power with respect to such shares of our common stock. Except as otherwise indicated, the address of each of the shareholders listed below is: c/o.: SmartHeat 60 East Ren-Min Road, Dachaidan, (Da Qaidam Administrative Committee), XaiXi, Qinghai Province, China 817000.

 

As of July 1, 2019, there were 185,986,370 shares of our common stock issued and outstanding.

 

Name of beneficial owner

 

Number of shares

   

Percent of class

 

5% Shareholders

               

Northtech Holdings Inc.

Mill Mall 5, Wickhams Cay 1

P.O. Box 3085

Road Town, Tortola

British Virgin Islands

    46,456,488 (1)     24.98

%

                 

Directors and Named Executive Officers

               

Mr. Mao Zhang

    83,836,959 (2)     45.08

%

Mr. Jimin Zhang

    65,053,341 (3)     34.00

%

Mr. Jian Zhang

    22,165,012       11.92

%

Mr. Xing Hai Li

    0          

Mr. Liguo Zhang

    0          

Kenneth Scipta

    50,000       *

%

                 

All Directors and Named Executive Officers as a Group (2 Persons)

    171,105,312       90.92

%

 

*           Represents less than 1% of shares outstanding.

 

(1) Mr. Jimin Zhang our Chief Executive Officer and director is the managing director of Northtech Holdings, Inc. and holds the voting power and dispositive power over the shares of our common stock held by Norththech Holdings, Inc.

 

(2) Includes 3,211,860 shares of our common stock held by Mr. Zhang’s wife Ying Zhao.

 

(3) Includes 46,456,504 shares of our common stock held by Northtech Holdings Inc.

 

 

Securities Authorized for Issuance under Equity Compensation Plans

 

The following table sets forth information regarding all equity compensation plans, including individual compensation arrangements, under which our common stock is authorized for issuance as of December 31, 2018.

 

Equity Compensation Plan Information

 
                         

Plan Category

 

(a)

Number of

Securities to be

Issued Upon

Exercise of

Outstanding

Options

   

(b)

Weighted-

Average

Exercise

Price of

Outstanding

Options

   

(c)

Number of

Securities

Remaining

Available

for Future

Issuance

Under Equity

Compensation

Plans

(excluding

securities

reflected

in column (a))

 

Equity compensation plans approved by security holders

                       

2010 Equity Incentive Plan

    -       -       0  

Equity compensation plans not approved by security holders

                    -  
                      -  

Total

                    0  

 

Item 13. Certain Relationships and Related Transactions, and Director Independence

 

Certain Relationships and Related Transactions

 

On July 27, 2012, we entered into a secured revolving credit facility under the terms of a Secured Credit Agreement with Northtech Holdings, Inc., an entity owned by certain members of the Company’s former management, Jun Wang, our former Chief Executive Officer, Xudong Wang, our former Vice President of Strategy and Development, and Wen Sha, our former Vice President of Marketing. Huajun Ai, our current Corporate Secretary, is also a part owner of Northtech. As amended on December 21, 2012, the Credit Agreement provides for borrowings of up to $2,500,000 with any amounts borrowed maturing on April 30, 2014. Borrowings under the Credit Agreement are secured by 55% of the equity interest in each of our wholly-, directly-owned subsidiaries and are repayable, at our option, in shares of our common stock. On December 21, 2012, we elected to repay $1,301,300 of the $1,384,455 outstanding under the Credit Agreement with 1,300,000 restricted shares of our common stock, 22.67% of our total issued and outstanding shares of Common Stock, as authorized by the Credit Agreement and approved by our shareholders.

 

On December 31, 2014, the Company closed the transactions contemplated by the Equity Interest Purchase Agreement discussed above (See Sale of Equity Interests). The buyers consist of a group of 25 natural persons, all of whom are PRC. citizens, including Wen Sha, Jun Wang and Xudong Wang, managers of the Company’s subsidiaries engaged in the PHE segment of its business, and Huajuan Ai and Yingkai Wang, the Company’s Corporate Secretary and Acting Chief Accountant, respectively. 

 

Mr. Mao Zhang serves as our Chairman and holds approximately 45% of our outstanding common stock. Mr. Zhang also owns approximately 75% of Qinghai Mining and serves as its general manager. Mr. Jian Zhang, a stockholder holding approximately 12% of the common stock of our company owns 21% of Qinghai Mining.

 

Except as disclosed above, there were no transactions with any related persons (as that term is defined in Item 404 in Regulation S-K) during 2017 or 2016, or any currently proposed transaction, in which we were or are to be a participant and the amount involved was in excess of $120,000 and in which any related person had a direct or indirect material interest.

 

 

Our written policy for related party transactions provides that we will enter into or ratify a transaction with a related party only when our Board of Directors, acting through the Audit Committee, determines that the transaction is in the best interests of the company and our shareholders. The policy requires the review and approval by our Audit Committee for any transaction in which (i) the aggregate amount involved will or may be expected to exceed $120,000 in any fiscal year, (ii) we are a participant and (iii) any related person has or will have a direct or indirect interest. Related persons include our executive officers, directors, director nominees, persons known to be the beneficial owner of more than 5% of our outstanding common stock or immediate family members of any of the foregoing persons. In determining whether to approve or ratify a transaction with a related party, the Audit Committee will take into account, among other relevant factors, whether the transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances. If advance approval of a transaction is not feasible, the Audit Committee may approve and ratify the transaction in accordance with the policy. Any member of the Audit Committee who is a related party with respect to a transaction under review may not participate in the deliberations or vote on the approval of the transaction.

 

Mao Zhang also owns approximately 75% of Qinghai Mining and serves as its general manager. Mr. Jian Zhang, a stockholder holding approximately 12% of the common stock of our company owns 21% of Qinghai Mining.

 

Qinghai Technology purchases raw material boron rock from Qinghai Mining, and receives no-interest short-term advances from Qinghai Mining from time to time.  As of December 31, 2018, and 2017, Qinghai Mining was owed $3.88 million and $2.73 million, respectively by Qinghai Technology.

 

Qinghai Technology uses certain equipment that belong to Qinghai Province DaChaiDan ZhongTian Resources Development Co., Ltd (“Zhongtian Resources”, owned by two major shareholders of the Company) for its production. 

 

Qinghai Technology purchased raw material sulfuric acid from DaChaiDan SanXin Industrial Company Ltd (“SanXin”) for production.  Outstanding payable balance to SanXin at December 31, 2018 and 2017 was $133,000 million and $120,000 million, respectively.  SanXin is a non-related party company; however, Qinghai Mining assumed all the payables that Qinghai Technology owed to SanXin at December 31, 2018 and 2017 according to a Debt Offset Agreement between the Company, Qinghai Mining and SanXin.

 

Qinghai Technology sold boric acid to Qinghai Dingjia Zhixin Trading Co., Ltd  (“Dingjia”, 90% owned by the son of the Company’s Chairman and majority stockholder).  For the years ended December 31, 2018 and 2017, the Company’s sales to Dingjia was $1.52 million and $4.02 million, respectively.  At December 31, 2018 and 2017, outstanding receivable balance from Dingjia is $4.06 million and $5.28 million, respectively.

 

Qinghai Technology, Qinghai Mining, Zhongtian Resources and Dingjia entered a Debt Offset Agreement, in which, Qinghai Mining assumed all the outstanding payable balance of Qinghai Technology to Zhongtian at December 31, 2018 and 2017, and Qinghai Technology transferred all the outstanding receivable balance from Dingjia to Qinghai Mining.  With execution of the Debt Offset Agreement, the Company had $54,976 net due to Qinghai Mining at December 31, 2018, and $2,350,061 net due from Dingjia at December 31, 2017. 

 

Qinghai Technology purchases all of its ore from which it produces boric acid and plans to purchase all of its brine for the production of lithium carbonate and boric acid, Qinghai Technology and Qinghai Mining entered into an agreement on January 1, 2019. The agreement provides for the purchase of all of the ore produced by Qinghai Mining with a grade of not less than 5% at a price of RMB 60 per ton subject to a maximum of 5% annually. The agreement may be modified by the parties in writing. A copy of the agreement is included in this 10-K as Exhibit 10.24 and is incorporated by reference herein.

 

 

Item 14. Principal Accounting Fees and Services

 

Our Audit Committee selected MJF & Associates as the independent registered certified public accounting firm to audit the books and accounts of our company and subsidiaries for the fiscal year ending December 31, 2017. MJF & Associates has served as our independent accountant since January 12, 2015. The following table presents the aggregate fees billed for professional services rendered by MJF & Associates for the years ended December 31, 2018 and 2017.

 

   

2018

   

2017

 
Audit Fees   $ 55,000     $ 132,000  

Audit-related fees

  $ 85,000          

Tax fees

    -       -  

All other fees

    -       -  

Total

  $ 135,000     $ 132,000  

 

In the above table, “audit fees” are fees billed for services provided related to the audit of our annual financial statements, quarterly reviews of our interim financial statements and services normally provided by the independent accountant in connection with statutory and regulatory filings or engagements for those fiscal periods. “Audit-related fees” are fees not included in audit fees that are billed by the independent accountant for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements. “Tax fees” are fees billed by the independent accountant for professional services rendered for tax compliance, tax advice and tax planning. “All other fees” are fees billed by the independent accountant for products and services not included in the foregoing categories.

 

Audit Committee’s Pre-Approval Policy

 

The Audit Committee pre-approves all audit and permissible non-audit services provided by the independent accountants. These services may include audit services, audit-related services, tax services and other services. The Audit Committee has adopted a written policy for the pre-approval of services provided by the independent accountants, under which policy the Audit Committee generally pre-approves services for up to one year and any pre-approval is detailed as to the particular service or category of services and is subject to a specific budget. In addition, the Audit Committee may also pre-approve particular services on a case-by-case basis. For each proposed service, the independent accountant is required to provide detailed back-up documentation at the time of approval. The Audit Committee may delegate pre-approval authority to one or more of its members. Such a member must report any decisions to the Audit Committee at the next scheduled meeting.

 

 

PART IV

 

Item 15. Exhibits, Financial Statement Schedules 

 

Documents filed as part of this Form 10-K

 

Financial Statements. See Index to Consolidated Financial Statements, which appears on page F-1 hereof. The financial statements listed in the accompanying Index to Consolidated Financial Statements are filed herewith in response to this Item.

 

Financial Statements Schedules. All schedules are omitted because they are not applicable or because the required information is contained in the consolidated financial statements or notes included in this report.

 

Exhibits.

 

EXHIBIT INDEX

 

Exhibit No.

 

Description

2.1

 

Share Exchange Agreement and Plan of Reorganization by and among SmartHeat Inc., Shenyang Taiyu Electronic & Machinery Co., Ltd. and the Shareholders of Shenyang Taiyu Electronic & Machinery Co., Ltd., dated April 14, 2008 (Incorporated herein by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on April 18, 2008)

2.2

 

Articles of Exchange between Shenyang Taiyu Electronic & Machinery Co., Ltd. and SmartHeat Inc., dated April 14, 2008 (Incorporated herein by reference to Exhibit 2.2 to the Company’s Current Report on Form 8-K filed on April 18, 2008)

2.3

 

Articles of Merger between Pacific Goldrim Resources, Inc. and SmartHeat Inc., dated April 14, 2008 (Incorporated herein by reference to Exhibit 2.3 to the Company’s Current Report on Form 8-K filed on April 18, 2008)

2.4

 

Articles of Merger between Mid-Heaven Sincerity International Resources Investment Co. Ltd. and SmartHeat Inc., filed December 27, 2018 and effective December 31, 2018 (Incorporated herein by reference to Exhibit 2.4 to the Company’s Current Report on Form 8-K filed on January 7, 2019)

3.1

 

Articles of Incorporation (Incorporated herein by reference to Exhibit 3.1 to the Company’s Form SB-2 filed on December 22, 2006)

3.2

 

Amended and Restated By-Laws adopted April 15, 2008 (Incorporated herein by reference to Exhibit 3(ii) to the Company’s Current Report on Form 8-K filed on October 16, 2008)

3(ii).2

 

Amended and Restated Bylaws of the Company, effective November 23, 2012, (Incorporated herein by reference to Exhibit 3((ii).2 to the Company’s Current Report on Form 8-K filed on November 29, 2012)

3.3

 

Certificate of Amendment to Articles of Incorporation, filed January 19, 2012, effective February 6, 2012 (Incorporated herein by reference to Exhibit 3.3 to the Company’s Current Report on Form 8-K filed on January 20, 2012)

3.4

 

Certificate of Amendment to Articles of Incorporation, filed February 25, 2019, effective February 27, 2019 (Incorporated herein by reference to Exhibit 3.04 to the Company’s Current Report on Form 8-K filed on March 4, 2019)

3.5

 

Form of Qinghai Zhongtian Boron Lithium Technology Co., Ltd. Articles of Association (English translation)

3.6

 

Form of Qinghai Zhongtian Boron Lithium Technology Co., Ltd. Certificate of Incorporation (English translation)

3.7

 

Form of Certificate of Incorporation Qinghai Zhongtiancheng Salt Lake Resources R&D Co., Ltd. (English translation)

3.8

 

Form of Articles of Association of Qinghai Zhongtiancheng Salt Lake Resources R&D Co., Ltd. (English translation)

3.9

 

Form of Certificate of Incorporation Qinghai Zhongtiancheng Resources Technology Co, Ltd.. (English translation)

3.10

 

Form of Articles of Association of Qinghai Zhongtiancheng Resources Technology Co, Ltd. (English translation)

3.11

 

Memorandum of Articles of Association of Midheaven Sincerity International Resources Investment Co., Ltd.

3.12

 

Certificate of Incorporation of Midheaven Sincerity International Resources Investment Co., Ltd

4.1

 

Specimen Stock Certificate (Incorporated herein by reference to Exhibit 4.1 of Amendment No. 2 to the Company’s Registration Statement on Form S-1/A filed on February 4, 2009)

4.2

 

Form of Share Certificate of Midheaven Sincerity International Resources Investment Co. Ltd

10.1#

 

English Translation of Employment Agreement between Shenyang Taiyu Machinery & Electronic Co., Ltd. and Jun Wang, dated January 1, 2008 (Incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on April 18, 2008)

10.2#

 

English Translation of Employment Agreement between Shenyang Taiyu Machinery & Electronic Co., Ltd. and Zhijuan Guo, dated January 1, 2008 (Incorporated herein by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on April 18, 2008)

 

 

10.3   Certificate of Appointment by Sondex A/S of Shenyang Taiyu Machinery & Electronic Co., Ltd. as Authorized Dealer in China, dated March 2006 and letter naming Shenyang Taiyu Machinery & Electronic Co., Ltd. as Dealer of North China, dated May 5, 2006 (Incorporated herein by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed on April 18, 2008)
10.4   Agreement of Conveyance, Transfer and Assignment of Assets and Assumption of Obligations between SmartHeat Inc. and PGR Holdings, Inc., dated April 14, 2008 (Incorporated herein by reference to Exhibit 10.11 to the Company’s Current Report on Form 8-K filed on April 18, 2008)

10.5

 

Stock Purchase Agreement between Jason Schlombs and SmartHeat Inc., dated April 14, 2008 (Incorporated herein by reference to Exhibit 10.12 to the Company’s Current Report on Form 8-K filed on April 18, 2008)

10.6

 

Form of Registration Rights Agreement (Incorporated herein by reference to Exhibit 10.14 to the Company’s Current Report on Form 8-K filed on July 11, 2008)

10.7

 

English Translation of Share Exchange Agreement dated September 25, 2008, between SmartHeat Inc. and Asialink (Far East) Limited (Incorporated by reference to Exhibit 10.13 of Amendment No. 1 to the Company’s Registration Statement on Form S-1/A filed on December 12, 2008)

10.8

 

English Translation of the Asset Acquisition Agreement, dated May 27, 2009, by and between Shenyang Taiyu Machinery & Electronic Co., Ltd. and Siping Beifang Heat Exchanger Manufacture Co., Ltd. (Incorporated herein by reference to Exhibit 10.14 to the Company’s Current Report on Form 8-K filed on May 29, 2009)

10.9

 

English Translation of the Amended and Restated Asset Purchase Agreement, dated June 16, 2009, by and between Shenyang Taiyu Machinery & Electronic Co., Ltd. and Siping Beifang Heat Exchanger Manufacture Co., Ltd. (Incorporated herein by reference to Exhibit 10.15 to the Company’s Current Report on Form 8-K/A filed on June 16, 2009)

10.10#

 

Employment Agreement, dated February 1, 2010, between SmartHeat Inc. and Xudong Wang (Incorporated herein by reference to Exhibit 10.18 to the Company’s Current Report on Form 8-K filed on February 4, 2010)

10.11

 

SmartHeat, Inc. 2010 Equity Incentive Plan (Incorporated herein by reference to the Company’s Definitive Proxy Statement on Schedule 14A filed on April 16, 2010)

10.12

 

Credit and Security Agreement by and between SmartHeat Inc. and Northtech Holdings, dated July 27, 2012 (Incorporated herein by reference to Exhibit 10.12 to the Company’s Current Report on Form 8-K filed on August 1, 2012)

10.13

 

December 2012 Amendment to the Credit and Security Agreement between SmartHeat Inc., and Northtech Holdings, Inc., dated December 21, 2012 (Incorporated herein by reference to Exhibit 10.13 to the Company’s Current Report on Form 8-K filed on December 28, 2012)

10.14

 

August 2013 Amendment to the Credit and Security Agreement between SmartHeat Inc. and Northtech Holdings Inc., dated August 23, 2013 (Incorporated herein by reference to Exhibit 10.14 to the Company’s Current Report on Form 8-K filed on August 26, 2013)

10.15

 

Assignment and Assumption Agreement between SmartHeat Inc., and Northtech Holdings Inc., dated August 23, 2013(Incorporated herein by reference to Exhibit 10.15 to the Company’s Current Report on Form 8-K filed on August 26, 2013)

10.16

 

Assignment Agreement between SmartHeat Inc. and Heat HP, Inc., dated August 23, 2013(Incorporated herein by reference to Exhibit 10.16 to the Company’s Current Report on Form 8-K filed on August 26, 2013)

10.17

 

Assignment Agreement between SmartHeat Inc. and Heat PHE, Inc., dated August 23, 2013 (Incorporated herein by reference to Exhibit 10.17 to the Company’s Current Report on Form 8-K filed on August 26, 2013)

10.18

 

Equity Interest Purchase Agreement by and between SmartHeat Inc. and the Buyers, dated October 10, 2013 (Incorporated herein by reference to Exhibit 10.18 to the Company’s Current Report on Form 8-K filed on October 15, 2013)

10.19

 

Amendment No. 4 to the Credit and Security Agreement between Northtech Holdings, Inc. and SmartHeat dated December 28, 2015 (Incorporated herein by reference to Exhibit 10.19 to the Company’s Current Report on Form 8-K filed on December 30, 2015).

10.20

 

Amendment No. 5 to the Credit and Security Agreement between SmartHeat Inc. and Northtech Holdings Inc., dated July 31, 2016 (Incorporated herein by reference to Exhibit 10.20 to the Company’s Current Report on Form 8-K filed on August 2, 2016.)

10.21

 

Amendment No. 6 to the Credit and Security Agreement between SmartHeat Inc. and Northtech Holdings Inc., dated June 14, 2018 (Incorporated herein by reference to Exhibit 10.21 to the Company’s Current Report on Form 8-K filed on June 20, 2018.)

10.22

 

Amendment to Amendment No. 6 to the Credit and Security Agreement between SmartHeat Inc. and Northtech Holdings Inc., dated December 20, 2018 (Incorporated herein by reference to Exhibit 10.21 to the Company’s Current Report on Form 8-K filed on December 21, 2018.

 

 

10.23   Share Exchange Agreement and Plan of Reorganization by and between Mid-heaven Sincerity International Resources Investment Co., Ltd, SmartHeat Inc and the Stockholders of Mid-Heaven Sincerity International Resources Investment Co., Ltd, Dated December 31, 2018 (Incorporated herein by reference to Exhibit 10.23 to the Company’s Current Report on Form 8-K filed on January 7, 2019)
10.24   Amendment, dated January 25, 2019, to the Share Exchange Agreement and Plan of Reorganization by and between Mid-heaven Sincerity International Resources Investment Co., Ltd, SmartHeat Inc and the Stockholders of Mid-Heaven Sincerity International Resources Investment Co., Ltd, Dated December 31, 2018 (Incorporated herein by reference to Exhibit 10.23 to the Company’s Current Report on Form 8-K filed on January 25, 2019)

10.25

 

Form of Exclusive Agreement between Ainghai Zongtian Boron and Lithium Science & Technology Co., Ltd and Qinghai Zhongtian Boron and Lithium Mining Co. Ltd., dated January 1, 2019 (English Translation).

10.26

 

Form of Mining Rights Agreement Assignment Contract in Qinghai Province between Department of Land Resources of Qinghai Province and Qinghai Zhongtian Boron Lithium Mining Co. Ltd., dated January 5, 2005 (English translation)

     

21.1†

 

Subsidiaries of the Registrant

24.1†

 

Power of Attorney (Included on the Signature Page of the Annual Report on Form 10-K filed on July 20, 2016)

31.1†

 

Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2†

 

Certification of Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1‡

 

Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as signed by the Chief Executive Officer

32.2‡

 

Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as signed by the Chief Financial Officer

101.INS

 

XBRL Instance Document

101.SCH

 

XBRL Taxonomy Extension Schema Document

101.CAL

 

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

 

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

 

XBRL Taxonomy Extension Label Linkbase Document

101.PRE

 

XBRL Taxonomy Extension Presentation Linkbase Document

#           Indicates management contract or compensatory plan, contract or arrangement.

†           Filed herewith.

‡           Furnished herewith.

 

ITEM 16. FORM 10-K SUMMARY.

 

Not applicable.

 

  

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

SMARTHEAT INC.

 

 

(Registrant)

 

 

 

Date: July 12, 2019

By:

/s/ Jimin Zhang 

 

 

Jimin Zhang

Chief Executive Officer

(Principal Executive Officer)

 

Power of Attorney

 

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Jimin Zhang, and his attorney-in-fact for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that said attorney-in-fact, or his substitute or substitutes, may do or cause to be done by virtue hereof.

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

Signature

 

Title

 

Date

 

 

 

 

 

 

 

 

 

 

/s/ Jimin Zhang

 

President and Director

 

 

Jimin Zhang

 

(Principal Executive Officer)

 

July 12, 2019

 

 

 

 

 

 

 

 

 

 

/s/ Xudong Wang

 

Acting Chief Accountant

 

 

Xudong Wang

 

(Principal Financial and Accounting Officer)

 

July 12, 2019

 

 

 

 

 

 

 

 

 

 

/s/ Mao Zhang

 

Director

 

July 12, 2019

Mao Zhang

 

 

 

 

 

 

 

 

 

 

 

 

 

 

/s/ Kenneth Scipta

 

Director

 

July 12, 2019

Kenneth Scipta

 

 

 

 

 

 

 

 

 

 

 

 

 

 

/s/ Xing Hai Li

 

Director

 

July 12, 2019

Xing Hai Li

 

 

 

 

 

 

 

 

 

 

 

 

 

 

/s/ Liguo Zhang

 

Director

 

July 12, 2019

Liguo Zhang

 

 

 

 

 

 

 

 

SmartHeat Inc. and Subsidiaries

Index to Consolidated Financial Statements

 

Financial Statements

 

 

Report of Independent Registered Public Accounting Firm

 

F-2

Consolidated Balance Sheets as of December 31, 2019 and 2018

 

F-3

Consolidated Statements of Operations for the years ended December 31, 2019 and 2018

 

F-4

Consolidated Statements of Changes in Stockholders' Equity for the years ended December 31, 2019 and 2018

 

F-5

Consolidated Statements of Cash Flows for the years ended December 31, 2019 and 2018

 

F-6

Notes to Consolidated Financial Statements

 

F-7

 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and Stockholders of

SmartHeat Inc

 

Opinion on the financial statements

 

We audited the accompanying consolidated balance sheets of Smartheat Inc (“the Company”) as of December 31, 2018 and 2017, and the related consolidated statements of income and comprehensive income, stockholders’ deficit, and cash flows for each of the two years in the period ended December 31, 2018 and the related notes (collectively referred to as “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2018 and 2017, and the consolidated results of their operations and cash flows for each of the two years in the period ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

 

Basis of Opinion

 

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

We have served as the Company’s auditor since 2014. The financial statements from 2008 to 2013 were audited by a related firm.

 

 

MJF & Associates

Los Angeles, California

July 12, 2019

 

 

515 S. Flower Street, Suite 3600, Los Angeles, CA 90071 Telephone: (213) 626-2701 Fax: (866) 510-6726

Los Angeles • San Diego • San Francisco • Dallas • New York

 

 

SMARTHEAT INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

   

DECEMBER 31, 2018

   

DECEMBER 31, 2017

 

ASSETS

               
                 

CURRENT ASSETS

               

     Cash and equivalents

  $ 163,145     $ -  

     Accounts receivable, net

    512,380       524,932  

     Notes receivable

    111,473       50,504  

     Other receivables (net), prepayments and deposits

    154,719       -  

     Advances to suppliers, net

    113,705       125,744  

     Advance to related party, net

    -       2,350,061  

     Inventories, net

    1,735,374       134,505  
                 

        Total current assets

    2,790,796       3,185,746  
                 

NONCURRENT ASSETS

               

     Property and equipment, net

    1,749,060       2,148,830  

     Construction in progress

    1,662,847       1,746,572  
                 

       Total noncurrent assets

    3,411,907       3,895,402  
                 

TOTAL ASSETS

  $ 6,202,703     $ 7,081,148  
                 
                 

LIABILITIES AND STOCKHOLDERS' DEFICIT

               
                 

CURRENT LIABILITIES

               

     Accounts payable

  $ 1,172,001     $ 1,432,072  

     Unearned revenue

    1,151,253       381,160  

     Accrued liabilities and other payables

    6,698,604       458,196  

     Taxes payable

    228,547       84,261  

     Advance from related parties, net

    310,209       -  
                 

         Total current liabilities

    9,560,614       2,355,689  
                 

DEFERRED INCOME

    1,504,400       1,774,510  
                 

TOTAL LIABILITIES

    11,065,014       4,130,199  
                 

COMMITMENTS AND CONTINGENCIES

               
                 

STOCKHOLDERS' EQUITY (DEFICIT)

               

     Common stock, $0.001 par value; 500,000,000 shares authorized, 185,968,370 and 106,001,971 shares issued and outstanding at December 31, 2018 and 2017, respectively

    185,968       106,002  

     Paid-in capital (deficiency)

    (7,645,727 )     1,346,346  

     Statutory reserve

    780,682       -  

     Accumulated other comprehensive income (loss)

    (11,951 )     146,579  

     Retained earnings

    1,828,717       1,352,022  
                 

         TOTAL EQUITY (DEFICIT)

    (4,862,311 )     2,950,949  
                 

TOTAL LIABILITIES AND EQUITY (DEFICIT)

  $ 6,202,703     $ 7,081,148  

 

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

 

 

SMARTHEAT INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

 

 

   

YEARS ENDED DECEMBER 31,

 
   

2018

   

2017

 
                 

Net sales

  $ 6,029,147     $ 7,265,955  

Cost of sales

    5,147,641       6,096,248  
                 

Gross profit

    881,506       1,169,707  
                 

Operating expenses

               

     Selling

    294,892       206,290  

     General and administrative

    254,865       363,189  
                 

     Total operating expenses

    549,757       569,479  
                 

Income from operations

    331,749       600,228  
                 

Non-operating income (expenses)

               

     Financial expense

    (8,183 )     (24,741 )

     Subsidy income

    237,252       39,989  
                 

     Total non-operating income, net

    229,069       15,248  
                 

Income before income tax

    560,818       615,476  
                 

Income tax expense

    84,123       92,321  
                 

Net income

    476,695       523,155  
                 

Other comprehensive item

               

     Foreign currency translation gain (loss)

    (158,530 )     135,776  
                 

Comprehensive gain

  $ 318,165     $ 658,931  
                 

Basic and diluted weighted average shares outstanding

    106,221,057       106,001,971  
                 

Basic and diluted earnings per share from continuing operations

  $ 0.00     $ 0.00  

 

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

 

 

SMARTHEAT INC. AND SUBSIDIARIES

STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY (DEFICIT)

YEARS ENDED DECEMBER 31, 2018 AND 2017

 

 

   

Common Stock

                                         
   

Shares

   

Amount

   

Paid-in capital (deficiency)

   

Statutory reserves

   

Accumulated other comprehensive income (loss)

   

Retained earnings

   

Total

 

Balance at January 1, 2017

    106,001,971     $ 106,002     $ 1,346,346     $ -     $ 10,803     $ 828,867     $ 2,292,018  
                                                         

Net income

    -       -       -       -       -       523,155       523,155  
                                                      -  

Foreign currency translation gain

    -       -       -       -       135,776       -       135,776  
                                                         

Balance at December 31, 2017

    106,001,971       106,002       1,346,346       -       146,579       1,352,022       2,950,949  
                                                         

Recapitalization on reverse merger

    79,966,399       79,966       (8,992,073 )     780,682       -       -       (8,131,425 )
                                                         

Net income

    -       -       -       -       -       476,695       476,695  
                                                         

Foreign currency translation loss

    -       -       -       -       (158,530 )     -       (158,530 )
                                                         

Balance at December 31, 2018

    185,968,370     $ 185,968     $ (7,645,727 )   $ 780,682     $ (11,951 )   $ 1,828,717     $ (4,862,311 )

 

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

 

 

SMARTHEAT INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

   

YEARS ENDED DECEMBER 31,

 
   

2018

   

2017

 
                 

CASH FLOWS FROM OPERATING ACTIVITIES:

               

            Net income

  $ 476,695     $ 523,155  

            Depreciation

    322,486       279,283  

            Changes in deferred income

    (191,918 )     (39,989 )

                         (Increase) decrease in assets and liabilities:

               

                                   Accounts receivable

    (67,984 )     168,881  

                                   Advances to suppliers

    54,869       (18,767 )

                                   Inventories

    (1,621,680 )     648,426  

                                   Accounts payable

    (1,111,467 )     (143,321 )

                                   Unearned revenue

    (376,214 )     32,758  

                                   Accrued liabilities and other payables

    11,873       (236,489 )

                                   Taxes payable

    128,718       (3,288 )
                 

            Net cash provided by (used in) operating activities

    (2,374,622 )     1,210,649  
                 

CASH FLOWS FROM INVESTING ACTIVITIES:

               

                                   Cash received from acquisition of SmartHeat Inc.

    163,145       -  

                                   Purchase of property and equipment

    (2,901 )     (411,751 )
                 

            Net cash provided by (used in) investing activities

    160,244       (411,751 )
                 

CASH FLOWS FROM FINANCING ACTIVITIES:

               

                                  Due from / to related parties

    2,377,523       (798,898 )
                 

            Net cash provided by (used in) financing activities

    2,377,523       (798,898 )
                 

NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS

    163,145       -  
                 

CASH AND EQUIVALENTS, BEGINNING OF YEAR

    -       -  
                 

CASH AND EQUIVALENTS, END OF YEAR

  $ 163,145     $ -  
                 

Supplemental cash flow data:

               

   Income tax paid

  $ -     $ -  

   Interest paid

  $ -     $ -  

 

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

 

 

SMARTHEAT INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2018 AND 2017

 

 

1. ORGANIZATION AND DESCRIPTION OF BUSINESS

 

SmartHeat Inc., formerly known as Pacific Goldrim Resources, Inc. (the “Company” or “SmartHeat”), was incorporated on August 4, 2006, in the State of Nevada and had little or no operations. On April 14, 2008, the Company changed its name to SmartHeat Inc. and acquired the equity interests in Taiyu, at that time a developer of plate heat exchangers (“PHEs”) and PHE Units in China.  Taiyu was formed in July 2002 under the laws of China and is headquartered in Shenyang City, Liaoning Province, China.  The Company, through its operating subsidiaries in China and Germany, formerly designed, manufactured, sold PHEs, PHE Units, temperature sensors, valves and automated control systems, heat meters and heat pumps for use in commercial and residential buildings until the sale of certain of its subsidiaries effective December 31, 2014.

 

On August 23, 2013, the Company formed two new wholly-owned subsidiaries in the State of Nevada, Heat HP Inc., and HEAT PHE Inc. On the same date, the Company’s United States (“US”) parent entered into Assignment Agreements with Heat HP Inc. and Heat PHE Inc., respectively. Under the Assignment Agreements, the Company transferred 100% of its right, title and interest in certain subsidiaries to Heat HP Inc. and Heat PHE Inc. The reorganization was performed so the Company’s subsidiaries would be organized along their respective operating segments with Heat HP holding those subsidiaries that operated in the heat pumps and related products segment and Heat PHE holding those subsidiaries that operated in the plate heating equipment, meters and related products segment.

 

After the assignment, Heat HP Inc. owned 100% of SmartHeat (China) Investment Co., Ltd. (“SmartHeat Investment”), SmartHeat (Shanghai) Trading Co., Ltd. (“SmartHeat Trading”), Beijing SmartHeat Jinhui Energy Technology Co., Ltd. (“Jinhui”), SmartHeat Deutschland GmbH (“SmartHeat Germany”), and 98.8% of SmartHeat (Shenyang) Heat Pump Technology Co., Ltd. (“SmartHeat Pump”).

 

After the assignment, Heat PHE Inc. owned 100% of SmartHeat Taiyu (Shenyang) Energy Technology Co., Ltd. (“Taiyu”), SanDeKe Co., Ltd., (“SanDeKe”), SmartHeat Siping Beifang Energy Technology Co., Ltd. (“SmartHeat Siping”), SmartHeat (Shenyang) Energy Equipment Co., Ltd. (“SmartHeat Energy”), and 51% of Hohhot Ruicheng Technology Co., Ltd. (“Ruicheng”).

 

On August 23, 2013, the Company entered into a Stock Pledge Agreement with Northtech Holdings Inc. (“Northtech”). The Company delivered share certificates to Northtech representing 55% of Heat HP Inc. and Heat PHE Inc. to perfect the security interest in each of the Company’s directly and wholly-owned subsidiaries granted to Northtech as collateral security for all of the obligations of the Company to Northtech.

 

In December 2013, SmartHeat US parent incorporated SmartHeat Heat Exchange Equipment Co. (“Heat Exchange”) in China with registered capital of $3.00 million for manufacturing and sale of PHE and PHE related products.

 

On December 30, 2013, the Company, closed the transaction contemplated by the Equity Interest Purchase Agreement (“EIPA”) dated October 10, 2013, whereby the buyers purchased 40% of the Company’s equity interests in the following PHE segment subsidiaries: Taiyu; SmartHeat Siping; SmartHeat Energy; Ruicheng; and XinRui (collectively, the “Target Companies”). The purchase price was RMB 5 million ($0.82 million). XinRui was 46% owned by SmartHeat US parent prior to the 40% equity interest sale.

 

On November 28, 2014, the Company entered into an Amended and Restated EIPA, which amended and restated the EIPA dated October 10, 2013 between the Company and the buyers. Under the terms of the Amended EIPA, the buyers agreed to purchase the remaining 60% of the Company’s equity interests in the Target Companies effective as of December 31, 2014 (the “Closing Date”). The purchase price for the remaining 60% consisted of: (i) RMB 8.5 million ($1.4 million) and (ii) the forgiveness of all net indebtedness of $11.75 million owed to the Target Companies by SmartHeat and each of its other subsidiaries as of December 31, 2014 subject to termination provisions as set forth in EIPA. 

 

 

The effectiveness of the transaction was subject to the following conditions: (i) approval of its shareholders and (ii) receipt by the Board of Directors (“BOD” or the “Board”) of the Company of an opinion that the purchase and sale transaction was fair to the shareholders of SmartHeat from a financial point of view. The parties executed a mutual release to be delivered at the closing which provided, in part, for the target companies to forgive all net indebtedness of $11.75 million from SmartHeat and all of its other subsidiaries. In the event that the conditions were not met prior to December 31, 2014, the consideration and all documents were to be deposited into escrow and released when the conditions were satisfied; provided that if the conditions were not satisfied on or before March 31, 2015, either party was able to terminate the Amended EIPA and the funds and documents were to be returned to the depositing party. The termination deadline of the Amended EIPA was extended to May 15, 2015.

 

On May 11, 2015, the Company’s stockholders approved the sale of all of the remaining interests, constituting 100% of its ownership interests, (the “Stock Sale”) of certain subsidiaries of the Company as described above, all of the conditions precedents to the Stock Sale were satisfied. The parties executed a mutual release which became effective and provided, in part, that the Target Companies forgave all net indebtedness from SmartHeat and all of its other subsidiaries owed to the Target Companies. The consideration and all documents relating to the transaction were released from escrow upon the satisfaction of the foregoing conditions.  The buyers consisted of 25 natural persons, all of whom are PRC citizens, including Wen Sha, Jun Wang and Xudong Wang, managers of the Company’s subsidiaries engaged in the PHE segment of its business, and Huajun Ai and Yingkai Wang, the Company’s Corporate Secretary and Acting Chief Accountant, respectively. Huajun Ai, Wen Sha, Jun Wang and Xudong Wang are also principals in Northtech.  

 

On January 20, 2016, SmartHeat Pump entered and closed a Share Purchase Agreement with a series of buyers to sell 85% of the equity shares of SmartHeat Germany for Euro 170,000 ($185,400).  The purchase price of Euro 170,000 was returned to the buyers and subsequently paid into SmartHeat Germany as a reserve by the buyers. The buyers are not related parties of the Company. SmartHeat Germany had losses and our management decided to sell at a minimal or no cost due to its higher operating cost.

 

During the year ended December 31, 2016, SmartHeat Pump filed for bankruptcy protection in China due to the slowdown of its business. SmartHeat Pump filed bankruptcy documents with the proper authorities in China, and expects the bankruptcy process to last for a few years before obtaining the final approval.  Accordingly, the Company reclassified SmartHeat Pump business as a discontinued operation and made an impairment reserve for its assets including accounts receivable, retentions receivable, other receivables, advance to suppliers, inventory, deferred tax assets, fixed assets and intangible assets.

 

On December 31, 2018 (the "Closing Date"), the Company entered into and closed a Share Exchange Agreement and Plan of Reorganization, as amended on January 24 2019 (the “Share Exchange Agreement”) with Mid-Heaven Sincerity International Resources Investment Co., Ltd (Mid-heaven BVI) and its shareholders Mao Zhang, Jian Zhang, and Ying Zhao, constituting all of the shareholders of Mid-heaven BVI (the “Mid-heaven Shareholders”). Pursuant to the terms of the Share Exchange Agreement, the shareholders of Mid-Heaven BVI delivered all of the issued and outstanding shares of capital stock of Mid-Heaven BVI to SmartHeat, in exchange for the issuance of 106,001,971 shares of SmartHeat’s Common Stock. Mid-heaven BVI, through two subsidiaries, Qinghai Mid-Heaven Sincerity Technology Co., Ltd (“Sincerity”) and Qinghai Mid-Heaven Sincerity Salt-Lake R&D Co., Ltd (“Salt-Lake”) owns 100% of Qing Hai Mid-Heaven Boron & Lithium Technology Company, Ltd. (“Qinghai Technology”).

 

The Acquisition was structured as a tax-free reorganization. As a result of the share exchange agreement, Mid-heaven BVI’s shareholders own approximately 57% of the combined company.  For accounting purposes, the transaction will be accounted for as a reverse acquisition of the Company by Mid-heaven BVI.

 

The main operating entity, Qinghai Technology was incorporated on December 18, 2018. The business of Qinghai Technology was carved out of the business of Qinghai Zhongtian Boron & Litium Mining Co., Ltd (“Qinghai Mining”) on December 20, 2018. Qinghai Mining was founded on March 6, 2001 and engaged in manufacture and wholesale of boric acid and related compounds for industrial and consumer usage. Qinghai Technology obtains its raw material minerals exclusively from Qinghai Mining and currently processes boric acid by crushing and processing ore.

 

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The consolidated financial statements (“CFS”) were prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

 

Principles of Consolidation 

 

For the year ended December 31, 2018, the accompanying CFS include the accounts of SmartHeat’s US parent, and its subsidiaries Heat HP and Heat PHE, and their subsidiaries SanDeKe, Jinhui, SmartHeat Investment, SmartHeat Trading, SmartHeat Pump, and Heat Exchange; and Mid-heaven BVI and its subsidiaries, Sincerity, Salt-Lake and Qinghai Technology, which are collectively referred to as the “Company.” For the year ended December 31, 2017, the accompanying CFS consist of the accounts of Mid-heaven BVI and its subsidiaries, Sincerity, Salt-Lake and Qinghai Technology as a result of reverse merger of SmartHeat with Mid-heaven BVI. All significant intercompany accounts and transactions were eliminated in consolidation.

 

Noncontrolling Interest 

 

The Company follows Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation,” which established new standards governing the accounting for and reporting of noncontrolling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs, previously referred to as minority interests, be treated as a separate component of equity, not as a liability, as was previously the case, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance. This standard also required changes to certain presentation and disclosure requirements. Losses attributable to the NCI in a subsidiary may exceed the NCI’s interests in the subsidiary’s equity. The excess attributable to the NCI is attributed to those interests. The NCI shall continue to be attributed its share of losses even if that attribution results in a deficit NCI balance.

 

Use of Estimates

 

In preparing the financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates.

 

Cash and Equivalents

 

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.  

 

The following table presents in US dollars (“USD”) the amount of cash and equivalents held by the Company as of December 31, 2018, based on the jurisdiction of deposit. The Company’s US parent holds cash and equivalents in US bank accounts denominated in USD.

 

   

United States

   

China

   

Total

 

December 31, 2018

    -     $ 163,145     $ 163,145  

 

 

Accounts and Retentions Receivable, net

 

The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Based on historical collection activity, the Company had allowances of $1.78 million and $0 at December 31, 2018 and 2017, respectively.

 

At December 31, 2018 and 2017, the Company had retentions receivable from customers for product quality assurance of $0.14 million and $0, respectively. The retention rate varied from 5% to 20% of the sales price with variable terms from three to 24 months depending on the shipping date, and for PHE Units, the customer acceptance date of the products and the number of heating seasons that the warranty period covers. The Company had allowances for these retentions of $0.14 million and $0 at December 31, 2018 and 2017, respectively.

 

Advances to Suppliers, net

 

The Company makes advances to certain vendors to purchase raw material, tools and equipment for production. The advances are interest-free and unsecured. As of December 31, 2018 and 2017, the Company had allowances for advances to suppliers of $2.16 million and $0, respectively.

 

Inventories, net

 

Inventories are stated at the lower of cost or net realizable value with cost determined on a weighted-average basis. Management compares the cost of inventories with the net realizable value and an allowance is made to write down inventories to market value, if lower.

 

In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330) - Simplifying the Measurement of Inventory,” which requires that inventory within the scope of the guidance be measured at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company adopted ASU 2015-11 effective January 1, 2017 and it did not have a material effect on the Company’s CFS.

 

As part of inventory impairment analysis, the Company performs an evaluation of raw materials stored over one year and not anticipated to be consumed, and an evaluation of potential impairment to the quality of these raw materials. If management anticipates that obsolete raw materials in inventory can be utilized and will be consumed within the next six months through new customer orders or substitute orders, no impairment is recorded. The Company collects information about delayed and canceled contracts and meets with affected customers to discuss their financing situation and their projections of future orders. Finished goods manufactured for delayed and canceled contracts that the Company does not expect to be reinstated and contracts for which the Company has been unable to find substitute customers become impaired. Following the completion of the impairment analysis, the Company had inventory impairment allowance of $6.39 million and $0 as of December 31, 2018 and 2017, respectively. 

 

Property and Equipment, net

 

Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred; major additions, repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method with a 3% - 10% salvage value and estimated lives as follows: 

 

Buildings

20 years

Structures and improvements

4-20 years

Vehicles

4-8 years

Office equipment

5 years

Production equipment

3-10 years

Equipment upgrade

5 years

 

 

Depreciation of plant, property and equipment attributable to manufacturing is capitalized as part of inventories, and expensed to cost of goods sold when inventories are sold. 

 

Impairment of Long-Lived Assets

 

Long-lived assets, which include tangible assets, such as property and equipment, goodwill and other intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable, but at least annually.

 

Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized based on the excess of the carrying amount over the fair value (“FV”) of the assets. FV generally is determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of December 31, 2018 and 2017, there was no significant impairments of its long-lived assets.

 

Warranties

 

The Company offers all customers warranties on its products for one or two heating seasons depending on the terms negotiated. The Company accrues for warranty costs based on estimates of the costs that may be incurred under its warranty obligations. The warranty expense and related accrual is included in the Company’s selling expenses and other payables respectively, and is recorded when revenue is recognized. Factors that affect the Company’s warranty liability include the number of units sold, its estimates of anticipated rates of warranty claims, costs per claim and estimated support labor costs and the associated overhead. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. However, the warranty is for the Company’s PHE business, which had minimum operations as of December 31, 2018.

 

Research and Development Costs

 

Research and development (“R&D”) costs are expensed as incurred and included in general and administrative (“G&A”) expenses. These costs primarily consist of cost of materials used, salaries paid for the Company’s development department and fees paid to third parties. R&D costs for the years ended December 31, 2018 and 2017 were $44,320 and $57,904, respectively.

 

Income Taxes

 

Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

The Company follows ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures.

 

 

Under the provisions of ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income.  At December 31, 2018 and 2017, the Company did not take any uncertain positions that would necessitate recording a tax related liability. 

 

Revenue Recognition

 

In May 2014 the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry specific guidance. This new standard requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB subsequently issued the following amendments to ASU No. 2014-09 that have the same effective date and transition date: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Company adopted these amendments with ASU 2014-09 (collectively, the new revenue standards).

 

The new revenue standards became effective for the Company on January 1, 2018, and were adopted using the modified retrospective method. The adoption of the new revenue standards as of January 1, 2018 did not change the Company’s revenue recognition as the majority of its revenues continue to be recognized when the customer takes control of its product. As the Company did not identify any accounting changes that impacted the amount of reported revenues with respect to its product revenues, no adjustment to retained earnings was required upon adoption.

 

Under the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation.

 

Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. Sales and purchases are recorded net of VAT collected and paid as the Company acts as an agent for the government. VAT taxes are not affected by the income tax holiday.

 

Deferred Income

 

Deferred income consists primarily of government grants and subsidies for supporting the Company’s technology innovation and transformation of boric acid, lithium and magnesium sulfate projects. The Company uses most of the subsidies to purchase machinery and equipment. Deferred income is amortized to revenue (other income) over the life of the assets for which the grant and subsidy was used for. Subsidies for declared project fund require government inspection to ensure proper use of the funds for the designated project.

 

 

Cost of Sales

 

Cost of sales (“COS”) consists primarily of material costs and direct labor and manufacturing overhead attributable to the production of the products. Write-down of inventory to lower of cost or net realizable value is also recorded in COS. 

 

Advances from Customers (Unearned Revenue)

 

The Company records payments received from customers in advance of their orders as advance from customers account. These orders normally are delivered within a reasonable period of time based upon contract terms and customer demand. 

 

Concentration of Credit Risk

 

Cash includes cash on hand and demand deposits in accounts maintained within China. Balances at financial institutions within China are not covered by insurance. The Company has not experienced any losses in such accounts.

 

Certain other financial instruments, which subject the Company to concentration of credit risk, consist of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of its customers’ financial condition and customer payment practices to minimize collection risk on accounts receivable.

 

The operations of the Company are located primarily in China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in China, as well as by the general state of the PRC economy.

 

Statement of Cash Flows

 

In accordance with FASB ASC Topic 230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts shown on the statement of cash flows may not necessarily agree with changes in the corresponding asset and liability on the balance sheet. In addition, cash from operations, financing and investing activities are net of the effect of the reverse merger described in Note 1.

 

Basic and Diluted Earnings (Loss) per Share (EPS)

 

Basic EPS is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted EPS are based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to have been exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. 

 

Foreign Currency Translation and Comprehensive Income (Loss)

 

The accounts of the US parent company are maintained in USD. The functional currency of the Company’s China subsidiaries is the Chinese Yuan Renminbi (“RMB”). The accounts of the China subsidiaries were translated into USD in accordance with FASB ASC Topic 830, “Foreign Currency Matters.” According to FASB ASC Topic 830, all assets and liabilities were translated at the exchange rate on the balance sheet date, stockholders’ equity was translated at the historical rates and statement of operations items were translated at the average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with FASB ASC Topic 220, “Comprehensive Income.”

 

 

Fair Value (“FV”) of Financial Instruments

 

Certain of the Company’s financial instruments, including cash and equivalents, accrued liabilities and accounts payable, carrying amounts approximate their FV due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the FV of financial instruments held by the Company. The carrying amounts reported in the balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their FV because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest.

 

Fair Value Measurements and Disclosures

 

ASC Topic 820, “Fair Value Measurements and Disclosures,” defines FV, and establishes a three-level valuation hierarchy for disclosures of FV measurement that enhances disclosure requirements for FV measures. The three levels are defined as follow:

 

  

Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

  

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

  

Level 3 inputs to the valuation methodology are unobservable and significant to the FV measurement.

 

As of December 31, 2018 and 2017, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV. 

 

Segment Reporting

 

FASB ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Management determined the Company’s operations constitute a single reportable segment in accordance with ASC 280. The Company currently operates in one business and industry segment: manufacture and sale of boric acid.

 

New Accounting Pronouncements

 

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is in the process of evaluating the impact of adoption of this ASU on its CFS.

 

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its CFS.

 

 

In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The amendments are an improvement to U.S. GAAP because they provide guidance for each of the eight issues, thereby reducing the current and potential future diversity in practice. This ASU is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company has adopted the guidance retrospectively to each period presented. The adoption did not have any material effect on the Company’s CFS.

 

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This ASU improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. For public business entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The adoption of this ASU did not have a significant impact on the Company’s CFS.

 

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2017, and interim period within those fiscal years. The Company has adopted the guidance retrospectively to each period presented. The adoption did not have any material effect on the Company’s CFS.

 

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has adopted the guidance effective January 1, 2018. The Company will evaluate the impact of adopting this standard prospectively upon any transactions of acquisitions or disposals of assets or businesses.

 

In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting this standard on its CFS.

 

In June 2018, the FASB issued ASU 2018-07, "Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. An entity should apply the requirements of ASC 718 to non-employee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The amendments specify that ASC 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The new guidance is effective for SEC filers for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2019 (i.e., January 1, 2020, for calendar year entities). Early adoption is permitted. The Company is evaluating the effects of the adoption of this guidance and currently believes it will impact the accounting of the share-based awards granted to non-employees.

 

 

SEC Disclosure Update and Simplification

 

In August 2018, the SEC issued Securities Act Release No. 33-10532 that amends certain disclosure requirements, including extending to interim periods the annual requirement to disclose changes in stockholders’ equity. Under the new requirements, registrants must now analyze changes in stockholders’ equity, in the form of a reconciliation, for the current and comparative year-to-date interim periods, with subtotals for each interim period. The final rule was effective in November 2018. The Company adopted the final rule and included a reconciliation of the changes in stockholders' equity in its Form 10-Q for the quarter that is after the year ending December 31, 2018.

 

3. INVENTORIES, NET

 

Inventories at December 31, 2018 and 2017, respectively, were as follows: 

 

   

2018

   

2017

 

Raw materials

  $ 7,010,879     $ 62,612  

Finished goods

    1,118,731       71,893  

Total

    8,129,610       134,505  

Less: inventory impairment allowance

    (6,394,236

)

    -  

Inventories, net

  $ 1,735,374     $ 134,505  

  

4. NOTES RECEIVABLE – BANK ACCEPTANCES

 

The Company sold goods to its customers and received notes (bank acceptances) from them in lieu of payments. These bank acceptances were issued by customers to the Company and would be honored by the applicable bank. The Company may hold a bank acceptance until the maturity for full payment, have the bank acceptance cashed out from the bank at a discount at an earlier date, or transfer the bank acceptance to its vendors in lieu of payment for their own obligations. As of December 31, 2018 and 2017, the Company had notes receivable of $111,473 and $50,504, respectively; and at December 31, 2018, the Company had $1.68 million notes receivable that were endorsed to its vendors, in lieu of payment. The Company was contingently liable for these notes receivable until it is paid or matured. As of this report date, $1.60 million notes receivable was either matured or paid.

 

5. OTHER RECEIVABLES (NET), PREPAYMENTS AND DEPOSITS

 

Other receivables, prepayments and deposits consisted of the following at December 31, 2018:

 

Advances to unrelated third-party companies

  $ 3,471,902  

Advances to employees

    327,067  

Other

    208,671  

Total

    4,007,640  

Less: allowances

    (3,852,921

)

Other receivables (net), prepayments and deposits

  $ 154,719  

 

Advances to unrelated third-party companies were short-term unsecured advances. 

 

Advances to employees represented short-term loans to employees and advances for business trips and related expenses, with no interest, payable upon demand.

 

 

6. PROPERTY AND EQUIPMENT, NET

 

Property and equipment consisted of the following at December 31, 2018 and 2017, respectively:

 

   

2018

   

2017

 

Structures and improvements

  $ 457,547     $ 480,585  

Production equipment

    3,374,314       2,614,774  

Equipment upgrade

    252,787       265,515  

Office equipment

    188,021       -  

Vehicles

    172,422       -  

Total

    4,445,091       3,360,874  

Less: impairment of fixed assets

    (189,412

)

    -

 

Less: accumulated depreciation

    (2,506,619

)

    (1,212,044

)

Property and equipment, net

  $ 1,749,060     $ 2,148,830  

 

Depreciation for the years ended December 31, 2018 and 2017 was $322,486 and $279,283, respectively.

 

7. CONSTRUCTION IN PROGRESS

 

As of December 31, 2018 and 2017, the Company had construction in progress of $1,662,847 and $1,746,572, respectively. The construction in progress was mainly for Test and Experimental Plant I, which does not have any production currently; the Company intends to transform the plant as a pilot plant for pure boric acid and lithium carbonate production. However, the Company does not have a detailed and committed plan as of this report date.

 

8. TAXES PAYABLE

 

Taxes payable consisted of the following December 31,2018 and 2017, respectively:

 

   

2018

   

2017

 

Other

  $ 53,112     $ 9,483  

VAT

    175,435       74,778  

Taxes payable

  $ 228,547     $ 84,261  

   

9. ACCRUED LIABILITIES AND OTHER PAYABLES

 

Accrued liabilities and other payables consisted of the following at December 31, 2018 and 2017, respectively:

 

   

2018

   

2017

 

Advances from third parties

  $ 3,120,967     $ -  

Subsidy payable

    291,410       306,082  

Other

    520,613       -  

Accrued expenses

    2,765,614       152,114  

Total accrued liabilities and other payables

  $ 6,698,604     $ 458,196  

 

Advances from third parties were short term, non-interest-bearing and due on demand. 

 

At December 31, 2018, other mainly was for dividend payable to Northtech of $300,000.

 

As of December 31, 2018 and 2017, the Company had $291,410 and $306,082, respectively, the government subsidy for Magnesium-rich waste liquid high value utilization project, and was recorded as other payable; the Company completed the project and is currently waiting for the government’s inspection, the Company will reclassify the portion of equipment cost of this government subsidy to deferred income and amortize over 10 years, and reclassify the remaining portion of the subsidy as other income once the Company passing the inspection of the project.

 

 

As of December 31, 2018, accrued expenses mainly consisted of accrued property and land rental fee of $2.38 million and accrued payroll of $0.38 million. As of December 31, 2017, accrued expenses mainly consisted of accrued payroll of $0.15 million.

 

10. RELATED PARTY TRANSACTIONS

 

Qinghai Technology purchased raw material boron rock from Qinghai Mining (owned by three major shareholders of the Company), and received no-interest short-term advances from Qinghai Mining. As of December 31, 2018 and 2017, total due to Qinghai Mining was $3.88 million and $2.73 million, respectively.

 

Qinghai Technology used equipment that belongs to Qinghai Province DaChaiDan ZhongTian Resources Development Co., Ltd (“Zhongtian Resources”, owned by two major shareholders of the Company) for production. The depreciation of these fixed assets had an impact on the production costs of boric acid of the Company, and was included in the Company’s cost of sales. The depreciation of these fixed assets for the years ended December 31, 2018 and 2017 was $36,741 and $36,044, respectively. Due to Zhongtian Resources resulting from using its equipment was $0.11 million and $0.07 million at December 31, 2018 and 2017, respectively.

 

Qinghai Technology purchased raw material from DaChaiDan SanXin Industrial Company Ltd (“SanXin”). Outstanding payable balance to SanXin at December 31, 2018 and 2017 was $0.13 million and $0.12 million, respectively. SanXin is a non-related party company; however, Qinghai Mining assumed the payables that Qinghai Technology owed to SanXin at December 31, 2018 and 2017 under a Debt Offset Agreement between the Company, Qinghai Mining and SanXin.

 

Qinghai Technology sold boric acid to Qinghai Dingjia Zhixin Trading Co., Ltd (“Dingjia”, 90% owned by the son of the Company’s major shareholder). For the years ended December 31, 2018 and 2017, the Company’s sales to Dingjia was $1.52 million and $4.02 million, respectively. At December 31, 2018 and 2017, outstanding receivables from Dingjia was $4.06 million and $5.28 million, respectively.

 

Qinghai Technology, Qinghai Mining, Zhongtian Resources and Dingjia entered a Debt Offset Agreement, in which, Qinghai Mining assumed the outstanding payable balance of Qinghai Technology to Zhongtian at December 31, 2018 and 2017, and Qinghai Technology transferred the outstanding receivable balance from Dingjia to Qinghai Mining. With execution of the Debt Offset Agreement, the Company had $54,976 net due to Qinghai Mining at December 31, 2018, and $2,350,061 net due from Dingjia at December 31, 2017.

 

In addition, at December 31, 2018, the Company had $255,233 due to another major shareholder of the Company, resulting from the certain of the Company’s operating expenses such as legal and audit fees that were paid by this major shareholder on behalf of the Company. This short term advance bore no interest, and payable upon demand.

 

The following table summarized the due from (to) related parties as of December 31, 2018 and 2017, respectively:

 

     

2018

   

2017

 
 

Related party name

               

Due from

Dingjia

  $ 4,058,148     $ 5,277,995  

Due to

Qinghai Mining

    (3,878,896 )     (2,731,102 )

Due to

Zhongtian Resources

    (106,345 )     (74,490 )

Due to

SanXin (debts assumed by Qinghai Mining)

    (127,883 )     (122,342 )

Due to

A major shareholder

    255,233       -  

Due from (to), net

  $ (310,209 )   $ 2,350,061  

 

 

11. DEFERRED INCOME

 

Deferred income consisted mainly of the government subsidy to the Company’s declared special projects at December 31, 2018 and 2017, respectively:

 

   

2018

   

2017

 

Technology upgrade for using lean ore to produce of magnesium sulfate

  $ 146,919     $ 187,985  

Technical transformation for boric acid and magnesium sulfate produced from low grade ore

    46,140       56,115  

Project of comprehensive utilization of DaChaiDan Solid Boron Mine

    1,311,341       1,530,410  

Total

  $ 1,504,400     $ 1,774,510  

 

The detail of deferred income for the Company’s special projects are as following:

 

   

Government

subsidy

amount

 

Project

completion

date

 

Useful life

in years

   

Amortization

in 2017

   

Amortization

in 2018

 
                                   

Technology upgrade for using lean ore to produce magnesium sulfate

  $ 356,114  

8/1/2013

    10     $ 32,584     $ 33,246  

Technical transformation for boric acid and magnesium sulfate produced from low grade ore

    81,784  

5/1/2015

    10       7,405       7,556  

Project of comprehensive utilization of DaChaiDan Solid Boron Mine

    1,536,594  

1/1/2018

    10       -       151,117  

Total

  $ 1,974,491               $ 39,989     $ 191,918  

 

12. OTHER INCOME

 

Other income consisted of amortization of deferred income for declared special projects and government’s general incentive fund (recorded as income upon receipt) for the years ended December 31, 2018 and 2017, respectively:

 

   

2018

   

2017

 

Technology upgrade for using lean ore to produce magnesium sulfate

  $ 33,245     $ 32,584  

Technical transformation for boric acid and magnesium sulfate produced from low grade ore

    7,555       7,405  

Project of production of high purity boric acid from lean ore

    45,335       -  

Project of comprehensive utilization of DaChaiDan Solid Boron Mine

    151,117       -  

Total

  $ 237,252     $ 39,989  

 

 

13. CREDIT LINE PAYABLE (RELATED PARTY TRANSACTION)

 

On July 27, 2012, the Company entered into a secured, revolving credit facility under the terms of a Secured Credit Agreement (the “Credit Facility” or the “Credit Agreement”) with Northtech Holdings Inc., a British Virgin Islands corporation (“Northtech”), owned by certain members of the Company’s former management, James Wang, Rhett Wang and Wen Sha, Jane Ai, the Company’s Corporate Secretary is also a part owner of Northtech. As amended on December 21, 2012, the Credit Facility provide for borrowings of up to $2.5 million. 

 

An origination fee of 4% of the Committed Amount was accrued to Northtech upon the signing of the Credit Agreement. As amended, Borrowings bear interest of 10%, payable quarterly, and the Credit Facility matured on April 30, 2013, and extended to April 30, 2014 with an extension fee of 4% of the Committed Amount. Generally, borrowings may be prepaid at any time without premium or penalty, provided however that if the Company prepays any amount due under the Credit Facility from the proceeds of another instrument or agreement of indebtedness, the Company shall pay a 10% prepayment fee. All amounts due under the Credit Facility may, at the Company’s option, be paid in either cash or restricted shares of the Company’s common stock.

 

On June 25, 2013, the BOD approved a second amendment to the credit and security agreement and on August 23, 2013, the Company entered into a second amendment to the credit and security agreement with Northtech, which redefined the “base rate”, and adjusted the base rate to 10% annually, compounded quarterly, effective January 1, 2013. The Company delivered to Northtech 100,000 restricted shares of the Company’s common stock as an Amendment Fee, issued in September 2013.

 

On March 26, 2014, the Company gave notice to Northtech pursuant to the terms of the Credit and Security Agreement between the Company and Northtech, dated July 27, 2012, as amended, extending the maturity date on the Credit Agreement from April 30, 2014 to January 3, 2015. The Company elected to pay the extension fee of 4% of the credit line amount of $2.5 million by issuing 200,000 shares of its common stock to Northtech at $0.50 per share (equal to $100,000). The BOD approved such extension on March 27, 2014. The FV of 200,000 shares on March 27, 2014 was $30,000. The Company recorded $70,000 gain from issuance of 200,000 shares.

 

On July 14, 2014, the BOD approved and the Company entered the third amendment to the Credit Agreement with Northtech, the Amendment modified the definition of “Average Share Price” in the Credit Agreement to decrease the minimum and maximum values for the “Average Share Price,” by 20% each from $0.50 to $0.40 and from $3.50 to $2.80, respectively. The Amendment also increased the maximum line, which may be borrowed under the Credit Agreement from $2,500,000 to $3,250,000 and extended the maturity date for amounts borrowed from April 30, 2014 to October 31, 2015. Pursuant to the terms of the Amendment, the Company extended the Initial Maturity Date by a payment to Northtech of an extension fee of 4% of the Maximum Line under the Credit Agreement. Northtech agreed to the extension of the maturity in consideration of an extension fee of 200,000 Restricted Shares of the Company’s Common Stock at $0.50 per share issued on July 22, 2014. The FV of 200,000 shares on July 22, 2014 was $40,000. The Company recorded $60,000 gain from issuance of the 200,000 shares.

 

On December 28, 2015, the Company entered into the Fourth Amendment to the Credit and Security Agreement dated July 27, 2012, as first amended on December 21, 2012 and subsequently amended on August 23, 2013, and July 14, 2014, between the Company and Northtech.  The Amendment provides that SmartHeat to pay 1) an extension fee of $100,000 for Northtech extending the maturity date to July 31, 2016 and a loan re-payment of $500,000 of outstanding principal (for a total payment of $600,000), represented by the delivery by the Company of 1,500,000 restricted shares of Common Stock at a price of $0.40 per share; 2) loan repayment of $1,000,000, represented by such number of shares of Series A Preferred Stock of Heat HP convertible into 20% of the issued and outstanding Common Stock of Heat HP on fully diluted basis, with a conversion, redemption and liquidation value of $1,000,000, and a 10% cumulative dividend accruing and payable quarterly ($25,000 per quarter).  In addition, the parties agreed to adjust the minimum conversion/exchange price in the Amendment from $0.40 to $0.20 per share and the maximum conversion/exchange price from $2.80 to $1.40 to reflect the current market conditions of the stock.  The new maximum credit line was reduced to $2,500,000.

 

 

On July 31, 2016, the Company entered into the Fifth Amendment to the Credit and Security Agreement between the Company and Northtech. The Amendment increased the maximum credit line of the Credit Agreement to $3,500,000 and extended the maturity dated to October 31, 2017.  The Company agreed to pay to Northtech an amendment fee of $80,000 payable in 400,000 restricted shares of the Company’s Common Stock valued at $0.20 per share.  The Amendment received the approval of a majority of shareholders of the Company in a vote held at the meeting of the stockholders on September 10, 2016.

 

On June 14, 2018, SmartHeat entered into the Sixth Amendment to the Credit and Security Agreement dated July 27, 2012, as amended, between the Company and Northtech, as described below:

 

In October of 2017, The Company entered into negotiations with Northtech to restructure the terms of the Credit Agreement. On October 31, 2017 the Credit Line was not extended, and the parties continued negotiations.  The parties agreed that Northtech will convert all outstanding interest and principal due under the Credit Agreement into the Company's common stock at a $.065 per share, which was a premium of $.0649 to the thirty-day average closing price of the Company's common stock of $.0001 per share.  In addition, the parties agreed to reduce the maximum credit line under the Credit Agreement to $1,000,000 and extended the maturity date to December 31, 2018. Further conversion of any outstanding principal and interest under the Credit Agreement will be based on conversion price subject to a minimum of $.065 per share and a maximum of $.50 per share.

 

As a result of the entering into the Sixth Amendment, the Company issued to Northtech 71,283,000 restricted shares of its common stock (66,316,601 shares were issued on December 28, 2018 due to the maximum limit of 75,000,000 authorized for issuance at December 31, 2018, and remaining 4,966,399 shares were issued on March 20, 2019). Upon the issuance of the common stock to Northtech, the total interest and principal of $4,633,395 due to Northtech was reduced to zero.

 

14. DEFERRED TAX ASSETS

 

As of December 31, 2018 and 2017, respectively, deferred tax assets (liabilities) consisted of the following:

 

   

2018

   

2017

 

Deferred tax asset - current (bad debt allowance for accounts receivable)

  $ 653,737     $ -  

Deferred tax asset - current (bad debt allowance for retention receivable)

    36,201       -  

Deferred tax asset - current (inventory impairment provision)

    1,592,875       -  

Deferred tax asset – current (bad debt allowance for other receivables)

    435,900       -  

Deferred tax asset – current (allowance for advance to supplier)

    541,194       -  

Deferred tax asset – noncurrent (NOL of US parent company)

    2,282,517       -  

Deferred tax asset – noncurrent (NOL of PRC subsidiaries)

    4,905,775       -  

Less: valuation allowance

    (10,448,199

)

    -  

Deferred tax assets, net

  $ -     $ -  

 

The Company recorded a 100% valuation allowance for all deferred tax assets due to the uncertainty of its realization. 

 

15. INCOME TAXES

 

The Company is subject to income taxes by entity on income arising in or derived from the tax jurisdiction in which each entity is domiciled. The Company’s PRC subsidiaries file their income tax returns online with PRC tax authorities.

 

 

The President of the United States signed H.R. 1 (the “Tax Reform”). The Tax Reform Law, effective for tax years beginning on or after January 1, 2018, except for certain provisions, resulted in changes to existing United States tax law, including various provisions that are expected to impact the Company. The Tax Reform Law reduces the federal corporate tax rate from 35% to 21% effective January 1, 2018 for the Company. The Company will continue to analyze the provisions of the Tax Reform Law to assess the impact on the Company’s CFS.

 

SmartHeat, the parent company, was incorporated in the US and has net operating losses (“NOL”) for income tax purposes, the NOL arising in tax years beginning after 2017 may only reduce 80% of a taxpayer’s taxable income, and may be carried forward indefinitely. SmartHeat has NOL carry forwards for income taxes of approximately $10.87 million at December 31, 2018. Management believes the realization of benefits from these losses remains uncertain due to SmartHeat’s limited operating history and continuing losses. Accordingly, a 100% deferred tax asset valuation allowance was provided.

 

SanDeKe, Jinhui, SmartHeat Investment, SmartHeat Pump, SmartHeat Trading and Heat Exchange are subject to the regular 25% PRC income tax rate.

 

Mid-Heaven BVI is a BVI company, and there is no income tax for companies domiciled in the BVI. Sincerity and Salt-Lake are governed by the Income Tax Law of the PRC concerning privately-run enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriate tax adjustments. Mid-Heaven BVI, Sincerity and Salt-Lake do not have any operations, and are not expected to have any operations in the future.

 

Qinghai Technology was carved out of Qinghai Mining on December 20, 2018. Qinghai Mining had a taxable loss for the years ended December 31, 2018 and 2017, and had no income tax payable at December 31, 2018 and 2017.

 

Qinghai Technology as a stand alone entity had taxable income of $560,818 and $615,476 for the years ended December 31, 2018 and 2017. The Company used the Separate Return Method under ASC 740-10-30-27 to allocate its income tax expenses.  Under the Separate Return Method, the Company calculated its tax provision as if it were filing its own tax return based on the pre-tax accounts.  For the years ended December 31, 2018 and 2017, the Company calculated its income tax expense of $84,123 and $92,321 under the Separate Return Method, and credited it to due to related party – Qinghai Mining. As a qualified business under the China Government’s strategy of Develop-the-West, from January 1, 2011 through December 31, 20120, all the qualified business including Qinghai Technology is subject to a reduced income tax rate of 15% compared to a national customary rate of 25%.

 

The following table reconciles the US statutory rates to the Company’s effective tax rate for the years ended December 31, 2018 and 2017, respectively:

 

   

2018

   

2017

 

US statutory benefit rates

    21.0

%

    34.0

%

Tax rate difference

    4.0

%

    (9.0

)%

Tax holiday in PRC

    (10.0

)%

    (10.0

)%

Valuation allowance

    -

%

    -

%

Tax expense (benefit) per financial statements

    15.0

%

    15.0

%

 

The income tax benefit for the years ended December 31, 2018 and 2017, respectively, consisted of the following:

 

   

2018

   

2017

 

Income tax expense – current

  $ 84,123     $ 92,321  

Income tax benefit – deferred

    -       -  

Total income tax benefit, net

  $ 84,123     $ 92,321  

  

 

16. STATUTORY RESERVES AND RESTRICTED NET ASSETS

 

The Company’s ability to pay dividends primarily depends on the Company receiving funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of the subsidiary’s retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with US GAAP differ from those reflected in the statutory financial statements of the Company’s PRC subsidiaries.

 

In accordance with the PRC Regulations on Enterprises with Foreign Investment and their articles of association, a foreign-invested enterprise (“FIE”) established in the PRC is required to provide certain statutory reserves, which are appropriated from net profit as reported in the FIE’s PRC statutory accounts. An FIE is required to allocate at least 10% of its annual after-tax profit to the surplus reserve until such reserve has reached 50% of its respective registered capital based on the FIE’s PRC statutory accounts. Appropriations to other funds are at the discretion of the BOD for all FIEs. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Additionally, shareholders of an FIE are required to contribute capital to satisfy the registered capital requirement of the FIE. Until such contribution of capital is satisfied, the FIE is not allowed to repatriate profits to its shareholders, unless otherwise approved by the State Administration of Foreign Exchange. SanDeKe, Jinhui, and SmartHeat Investment were established as FIEs and therefore are subject to the above-mandated restrictions on distributable profits. The Company met all registered capital requirements for its FIEs except for 1) SmartHeat Investment, for which the Company is committed to contribute an additional $40 million in registered capital by the end of 2017; as of this report date, the Company got oral agreement from the authority to extend the due date of capital contribution to the end of 2019. 2) Sincerity, incorporated on July 9, 2018 in China as a wholly foreign-owned enterprise (“WFOE”) with registered capital of $1.00 million, has 10 years from the incorporation date to fulfill the registered capital requirement.

 

Additionally, in accordance with the Company Laws of the PRC, a domestic enterprise is required to provide surplus reserve at least 10% of its annual after-tax profit until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. A domestic enterprise is also required to provide discretionary surplus reserve, at the discretion of the BOD, from the profits determined in accordance with the enterprise’s PRC statutory accounts. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. SmartHeat Trading, SmartHeat Pump, Qinghai Technology were established as domestic enterprises and therefore are subject to the above-mentioned restrictions on distributable profits.

 

As a result of these PRC laws and regulations that require annual appropriations of 10% of after-tax income to be set aside prior to payment of dividends as general reserve fund, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company as a dividend.

 

17. COMMITMENTS

 

Capital Contribution

 

The Company formed SmartHeat Investment on April 7, 2010, as an investment holding company with registered capital of $70 million to enable its establishment and investment in new businesses in China. Under PRC company law, registered capital must be used in the operations of the domestic company within its approved business scope. SmartHeat Investment was established as a separate subsidiary of the Company to allow allocation of capital to new businesses in China separate from its existing subsidiaries and operations. As a PRC investment holding company, the $70 million in approved registered capital of SmartHeat Investment is deemed a planned investment amount for the entity, not a traditional registered capital requirement under PRC corporate law. The Company contributed $30 million in capital to SmartHeat Investment on April 15, 2010, from proceeds of its public offering that closed on September 22, 2009. As of this report date, the Company got oral agreement from the authority to extend the due date of capital contribution to the end of 2019. The Company may satisfy this contribution through cash flow provided by operations, sales of assets, such as physical assets, financial assets, or interests in its subsidiaries, and funds raised through offerings of its securities, if and when the Company determines such offerings are required, and at such time that the Company identifies a new acquisition, investment or business opportunity to be financed through SmartHeat Investment, although no specific investment candidate has been identified to date. In addition, Sincerity with registered capital of $1.00 million and Salt-Lake incorporated in China on September 6, 2018 with registered capital of RMB 6 million ($0.88 million) have 10 years from the incorporation date to fulfill the registered capital requirement.

 

 

18. CONTINGENCIES

 

The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments in China and foreign currency exchange. The Company’s results may be adversely affected by changes in PRC government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad and rates and methods of taxation, among other things.

 

The Company’s sales, purchases and expense transactions in China are denominated in RMB and all of the Company’s assets and liabilities in China are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current PRC law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB may require certain supporting documentation in order to affect the remittance. 

 

19. REVERSE MERGER 

 

On December 31, 2018 (the "Closing Date"), the Company entered into a Share Exchange Agreement and Plan of Reorganization with Mid-Heaven Sincerity International Resources Investment Co., Ltd (“Mid-heaven BVI”) and its shareholders Mao Zhang, Jian Zhang, and Ying Zhao, constituting all of the shareholders of Mid-heaven BVI (the “Mid-heaven Shareholders”).

 

Pursuant to the terms of the Agreement, the shareholders of Mid-heaven BVI delivered all of the issued and outstanding shares of capital stock of Mid-heaven BVI to SmartHeat, in exchange for the issuance of 106,001,971 shares of SmartHeat’s Common Stock. Mid-heaven, through two subsidiaries, owns 100% of Qing Hai Mid-Heaven Boron & Lithium Technology Company, Ltd. (“Qinghai Technology”). The Acquisition was structured as a tax-free reorganization.

 

As a result of the share exchange agreement, Mid-heaven BVI’s shareholders own approximately 57% of the combined company.  For accounting purposes, the transaction was accounted for as a reverse acquisition of the Company by Mid-heaven BVI.  The following unaudited pro forma consolidated results of operations for the Company and Mid-heaven BVI for the years ended December 31, 2018 and 2017 presents the Company and Mid-heaven BVI’s operations as if the acquisitions occurred on January 1, 2018 and 2017, respectively.  The pro forma results are not necessarily indicative of the actual results that would have occurred had the acquisitions been completed as of the beginning of the periods presented, nor are they necessarily indicative of future consolidated results.

 

   

2018

 
   

Mid-heaven BVI

   

SmartHeat

   

Total

 

Net sales

  $ 6,029,147     $ 19,189     $ 6,048,336  

Net income

    476,695       4,044,562       4,521,257  

Basic and diluted weighted average shares outstanding

    106,001,971       9,855,174       115,857,145  

Basic and diluted net earnings per share

  $ 0.00     $ 0.41     $ 0.04  

 

 

   

2017

 
   

Mid-heaven BVI

   

SmartHeat

   

Total

 

Net sales

  $ 7,265,955     $ 772,158     $ 8,038,113  

Net income (loss)

    523,155       (2,909,425 )     (2,386,270 )

Basic and diluted weighted average shares outstanding

    106,001,971       8,504,769       114,506,740  

Basic and diluted net earnings (loss) per share

  $ 0.00     $ (0.34 )   $ (0.02 )

 

20. SUBSEQUENT EVENTS

 

The Company evaluated all events that have occurred subsequent to December 31, 2018 through the date that the CFS were issued, no material subsequent event has been identified.

 

F-24

 

EX-3.5 2 ex_149443.htm EXHIBIT 3.5 ex_149443.htm

 

Exhibit 3.5

 

Qinghai Zhongtian Boron Lithium Technology Co., Ltd.

 

Articles of Association

 

Chapter One General

 

Article 1 The purpose of the company: Through the establishment of the company organization form, shareholders jointly provide capital for investment to establish a new operating mechanism, contributing to the revitalization of the economy. The articles of association of the company shall be formulated according to the relevant provisions of the Company Law of the People's Republic of China and the Regulations on the Administration of Company Registration of the People's Republic of China.

 

Article 2 Name of company: Qinghai Zhongtian Boron Lithium Technology Co., Ltd.

 

Article 3 Company address: No. 60, East Renmin Road, Dachaidan Town, Haixi State, Qinghai Province.

 

Article 4 The Company is founded by three shareholders, and the shareholders are liable to the company with the pledged capital amount; the Company is liable for the debts and all assets. The company enjoys all the property rights of legal persons formed by shareholders’ investments, and owns the civil rights according to the law, bears civil liabilities, and has the qualification of an enterprise’s legal person.

 

Name of Shareholders (Name)

 

Certificate No. (ID number)

 

Zhang Mao 6301041946 10270515

 

Zhang Jian 110101196306250518

 

Zhao Ying 130302195509031864

 

Article 5 Business scope: The business scope of the company is the comprehensive development and utilization of Salt Lake resources and the research and development of products, the production and sale of the sodium borate, boron, boron trioxide, lithium carbonate, lithium chloride, the developmental equipment of Salt Lake and the procurement of the raw materials, boron mining, operation and maintenance of the mining equipment, commercial agency, computer network engineering, computer accessories, boron mining, production and sale of the industrial salt(the approved projects according to law, business activities can be carried out only after approval by the relevant departments) and road cargo transportation(operated according to business licenses).

 

Article 6 Operating period: long-term. The date of the company's business license issuance is the date of establishment of the company.

 

Chapter Two The Registered Capital, Amount of the Pledged Capital, Amount of the Actually Paid Capital

 

Article 7 The registered capital of the company is RMB 10 million Yuan. The registered capital of the company is the amount of capital pledged by all shareholders registered in accordance with the law in the company registration authority. The actual paid capital of the company is the amount of

 

-1-

 

 

 

the capital actually invested by all shareholders and registered by the company registration authority according to the law.

 

Article 8 The table of the name of shareholders, the amount of the pledged capital, the amount of the actual capital paid, the capital contribution method, and the time of the capital contribution.

 

Name of shareholders 

Amount of the pledged capital (ten thousand RMB)

Capital contribution method

Capital contribution ratio

Time of the capital contribution

Zhang Mao

760.6

Currency

76.06%

2019.1.29

Zhang Jian

209.1

Currency

20.91%

2019.1.29

Zhao Ying

30.3

Currency

3.03%

2019.1.29

 

Article 9 The registered capital of the company that each shareholder has pledged and paid shall be promptly in place.

 

Article 10 After the company is registered, issue a certificate of the capital contribution to shareholders. The certificate of the capital contribution shall indicate the name of the company, the date of the company’s foundation, the registered capital of the company, the name of shareholders, the amount of the paid capital contribution and the date of the capital contribution, the code number and date of the capital contribution certificate. The certificate of the contribution shall be stamped by the company. The certificate of the contribution is in duplicate and one copy for each shareholder and the company. If the certificate of capital contribution is lost, report to the company immediately for cancellation and re-issue the certificate after reviewed by the legal representative of the company.

 

Article 11 The Company shall set a register of shareholders, which shall include the name, residence, the amount of the capital contribution and the capital contribution certificate number of the shareholders.

 

Chapter Three Rights, Obligations and the Transfer Conditions of the Capital Contributions by Shareholders

 

Article 12 Shareholders shall, as funders, enjoy the owners’ right to benefit from their assets, make major decisions and select managers in proportion to their contributions, and shall undertake corresponding obligations.

 

Article 13 Rights of shareholders:

 

I. Attend shareholders’ meetings and have the voting rights according to the proportion of capital contributions;

 

II. Shareholders shall have the right to consult the shareholders’ meeting minutes and the company's financial accounting report;

 

III. Elect and be elected as an executive director or supervisor of a company;

 

IV. Shareholders receive dividends in proportion to their capital contributions. When the new capital of a company is increased, the shareholders may give priority to provide funds according to the proportion of their contributions;

 

V. The Company has the right for the preemption in transferring new capital or other shareholders;

 

-2-

 

 

 

VI. After the termination of the company, the remaining property of the company shall be divided according to the law.

 

Article 14 Shareholders’ obligations:

 

I. Pay their respective contributions in the full amount and on schedule;

 

II. The company's debts shall be borne within the amount of the pledged capital;

 

III. Comply with the provisions in the articles of association of the company;

 

Article 15 Transfer of the capital contributions:

 

I. Shareholders may transfer all or part of their capital contributions to each other;

 

II. When a shareholder transfers his capital contributions to a person other than these shareholders, he must obtain the consent of half of the other shareholders or more. The shareholders shall notify the other shareholders in writing of their shares’ transfer to obtain their consent. If the other shareholders fail to reply on the expiration of 30 days from the receipt date of the written notification, they shall be deemed to agree with the transfer. If more than half of the other shareholders do not agree, the shareholder who does not agree to transfer shall purchase the capital contribution to be transferred, and if the capital contribution to be transferred is not purchased, it shall be deemed to agree with the transfer. When the capital contribution is transferred with the consent of the shareholders, the other shareholders shall, under the same conditions, have the priority to purchase the transferred capital contribution. If two or more shareholders claim to exercise the right for prior purchasing, negotiate the respective purchase ratio; if the negotiation fails, the right of purchase shall be given priority according to the form of proportional contribution in the transfer.

 

III. After the shareholders transfer their capital contributions according to law, the company shall record the name and residence of the transferee and the amount of the transferred capital in the register of shareholders.

 

Chapter Four Qualifications and Obligations of the Organization and Senior Management of the Company

 

Article 16 In order to ensure the smooth and normal development of the company's production and operation activities, the company does not set up board of directors. The shareholders council shall elect one executive director and one supervisor, who are responsible for the planning, organization, leadership, coordination, and supervision of the company's production and operation activities.

 

Article 17 The company does not set up a manager, and the specific handling agencies such as the business department, finance department are responsible for handling the company's daily production and business activities.

 

Article 18 The executive directors and supervisors shall abide by the provisions of the articles of association of the company, the Company Law of the People's Republic of China and other relevant laws of the state.

 

Article 19 When studying and deciding on issues concerning the wages, welfare benefits, safety in production, labor protection, labor insurance and other issues involving in employees' immediate interests, the company shall listen to the opinions of the labor unions and employees of the

 

-3-

 

 

 

company in advance, and invite the representatives of labor unions or the employees to attend the relevant meetings.

 

Article 20 When studying and deciding the major issues in production and operation and formulating important rules and regulations, the company shall listen to the opinions and suggestions of the labor unions and employees.

 

Article 21 No one may act as an executive director or supervisor of a company under any of the following circumstances:

 

I. A person who has no or limited capacity for civil exercise;

 

II. Persons who have guilty of embezzlement, bribery, misappropriation of property, misappropriation of property or disruption of social and economic order; those who are sentenced for less than five years or deprived of political rights for crimes. Those are within five years after the expiration of the implementation term.

 

III. The person who acted as the director or factory director or manager of the bankruptcy liquidation company (enterprise) due to poor management and was personally responsible for the bankruptcy of the company (enterprise), not exceeding three years since the completion of the bankruptcy liquidation of the company (enterprise);

 

IV. The person who is the legal representative of a company (enterprise) whose business license has been revoked for legal violation and bears personal responsibility, not exceeding three years since the date when the company (enterprise) was revoked his business license;

 

V. The person who has amount of debt owed by an individual is still not cleaned.

 

Article 22 No public servant of the state may concurrently serve as an executive director or supervisor of the company.

 

Article 23 The executive directors and supervisors shall abide by the articles of association of the company, faithfully perform their duties, safeguard the interests of the company, and shall not use their position and functions and powers of the company for the personal gains. No executive directors or supervisors may take advantage of their functions and powers to accept bribes or other illegal income, nor may they capture the company's property.

 

Article 24 No executive director may misappropriate funds or lend funds of the company to any units or individuals unrelated to the business of the company.

 

The executive director may not open an account to store the funds of the company in his own name or in the name of another person, nor may he invest the funds of the company in an external unit in his own name.

 

No executive director may guarantee the debts of shareholders or other individuals of the company with the assets of the company.

 

Article 25 The executive director shall not operate on his own account or the same or similar projects for another person the company in which he works, or engage in activities that do harm to the interests of the company. Once the business or activity mentioned above is engaged in, the income earned shall be owned by the company.

 

-4-

 

 

 

Chapter Five Shareholders’ Meeting

 

Article 26 The Company has set up the shareholders’ meeting. The shareholder meeting is composed of all the shareholders of the company, and is the highest authority of the company. At the shareholders’ meeting, the shareholders shall exercise their voting rights according to the proportion of their capital contributions. The shareholders attending the shareholders 'meeting must exceed more than half of the voting rights of all shareholders before the shareholders' meeting can be hold. For the first meeting, it will be hold by the shareholders who have invested most, and later the shareholders' meeting will be chaired by the executive director.

 

Article 27 The shareholders' meeting will exercise the following powers:

 

I. Decide on operating policy and investment plan for the company;

 

II. Elect and replace executive directors and decide on matters related to remuneration of executive directors;

 

III. Elect and replace supervisors who are not represented by employees, and decide on matters related to the remuneration of supervisors;

 

IV. Review and approve reports of executive directors or reports of supervisors;

 

V. Review and approve the company's annual financial forecast, final account plan, profit distribution and loss compensation plan;

 

VI. Make decision on the increase or reduction of the registered capital of the company;

 

VII. Make resolutions on the division, merger, dissolution, liquidation or change of the company’s form;

 

VIII. Revision of the articles of association of the company;

 

IX. Make resolutions on the bonds of the issuing company;

 

X. Other functions and powers specified in the articles of association of the company.

 

The shareholders 'meeting is divided into the regular meetings and the temporary meetings. The shareholders’ meeting is held regularly every six months and is convened and chaired by the executive director. When the executive director is unable to perform or fails to perform the duties of convening the shareholders’ meeting, the supervisor shall convene and preside over the meeting. The shareholders meeting shall be notified to all shareholders 15 days before the meeting.

 

(I) The shareholders’ meeting shall make resolutions on the matter under discussion. Make resolutions on such matters as amending the articles of association, increasing or reducing the registered capital, division, merger, dissolution or changing the form of the company. These must be approved by the shareholders;

 

(II) The shareholders’ meeting shall make the meeting minutes on matter under discussion. The shareholders present at the meeting shall sign the meeting minutes, which shall be saved as the permanent records of the company.

 

Chapter Six Executive Directors and Supervisors

 

Article 28 The Company does not have directors board and arrange an executive director. The executive director is elected by the shareholders’ meeting.

 

Article 29 The executive director shall be the legal representative of the company.

 

-5-

 

 

 

Article 30 The executive director is responsible for the shareholders’ meeting and exercises the functions and powers as follow:

 

I. Responsible for convening the shareholders’ meeting and reporting to the shareholders’ meeting;

 

II. Implement the resolution of the shareholders’ meeting and formulate the implementation rules;

 

III. Draft the business plan and investment plan for the company;

 

IV. Drat the company's annual financial forecast, final accounts, profit distribution, the loss remedy plan;

 

V. Draft plans for increasing and reducing the registered capital, division, changing the form of the company, dissolving, and establishment of the branch;

 

VI. Decide on the establishment of the internal management organization of the company and the selection and remuneration of the company manager;

 

VII. Appoint or dismiss the company manager and the person in charge of finance and decide on their remuneration;

 

VIII. Formulate the basic management system of the company.

 

Article 31 The term of the executive director is three years and can be reelected and serve anther term. Before the term of an executive director expires, the shareholders board may not dismiss him without reason.

 

Article 32 The company does not have the board of supervisors, but arrange for only one supervisor, who is elected by the shareholders’ meeting; The term of the supervisor is three years, and may be re-elected when the term expires; No executive director or financial person in charge of the company may concurrently serve as a supervisor.

 

Article 33 Functions and powers of Supervisors

 

I. Check the company's finances;

 

II. Supervise executive directors and senior managers performing company’s duties, and make recommendations for the recall of executive directors and senior managers who violate laws, administrative regulations, articles of association or resolutions of the shareholders’ meeting;

 

III. Ask the executive director to make corrections when the acts of the executive director do harm to the interests of the company; Convene and preside over a meeting of the shareholders’ meeting when an executive director fails to perform the duties of convening and presiding over the shareholders' meeting as prescribed in this law;

 

IV. Submit proposals at the shareholders’ meeting;

 

V. In accordance with the provisions of Article 152 of the Company Law of the People's Republic of China, institute the lawsuit against the executive directors and senior management personnel;

 

VI. Other functions and powers specified in the articles of association of the company.

 

-6-

 

 

 

Chapter Seven Finance and Accounting

 

Article 34 The Company shall establish the own financial and accounting system in accordance with laws, administrative regulations and the regulations of the state financial administrative department.

 

Article 35 By the end of each accounting system, the company shall make financial and accounting statements, conduct audits according to the regulations of the state and relevant departments, submit them to the departments of finance, taxation, industry and commerce administration, etc., and sends them to the shareholders for review.

 

Financial and cross-office reports include the following accounting statements and subsidiary statements:

 

I. Balance sheet; II. Profits and losses statement; III. Change statement of financial position; IV. Statement of financial position; V. Profit distribution statement.

 

Article 36 When the company distribute annual after-tax profits, 10% of the withdrawal profits shall be included in the statutory provident fund, and the company's statutory provident fund shall not be withdrawn when the cumulative amount exceeds 50% of the registered capital of the company.

 

If the statutory provident fund of the company is insufficient to remedy the losses of the previous year, it shall first use the profits of the current year to remedy the losses before the statutory provident fund is drawn according to the provisions of the preceding paragraph.

 

Article 37 After the company makes up the losses and draws the provident fund, the remaining after-tax profits shall be distributed according to the proportion of the shareholders’ contributions.

 

Article 38 When the statutory provident fund is converted into capital, the retained reserve fund shall not be less than 25% of the registered capital of the company before the conversion.

 

In addition to the statutory accounting books, the company may not set the separate accounting books.

 

Accounting books, statements and all kinds of vouchers shall be collected in the book form and filed in accordance with the relevant regulations of the Ministry of Finance, and properly saved as important archival materials.

 

Chapter Eight Merger, Division and Change of the Registered Capital

 

Article 39 If the company merges, divides or reduces the registered capital, the shareholders’ meeting of the company shall make a resolution; Sign an agreement in accordance with the requirements of the Company Law of the People's Republic of China, to liquidate assets, prepare lists of assets & liabilities and property, inform creditors and announce, process the relevant procedures according to the law.

 

Article 40 When a company merges, divides or reduces its registered capital, prepare the balance sheet and the list of assets and liabilities, inform the creditors within 10 days, and announce the matter in the newspaper within 30 days. The creditor shall have the right to require the company to pay off its debts or provide corresponding guarantees within 30 days from the receipt date of the notice and within 45 days from the announcement date of the failure to receive the notice.

 

-7-

 

 

 

Article 41 If a company merges or divides, changes the registered items, handle with the change of the register in the company’s registration authority according to law; If the company is dissolved, cancel the registration of the company according to law; For establishing a new company, handle with the registration of the establishment of the company according to law.

 

If the company increases or reduces the registered capital, handle the change of the register in the company’s registration authority according to law.

 

Chapter Nine Bankruptcy, Dissolution, Termination and Liquidation

 

Article 42 When the company is dissolved due to the provisions (1)(2)(4)(5) in Article 181 of the Company Law of the People's Republic of China, establish the liquidation group to start liquidation within 15 days from the date of the dissolution occurrence. If the liquidation group is not established within the limited time, the creditors may apply to the people's court to appoint the relevant persons to form a liquidation group for liquidation.

 

The liquidation group of the company will notify the creditors within 10 days from the date of the establishment and will announce the event in the newspaper within 60 days. The creditors shall declare their claims to the liquidation group within 30 days from the receipt date of the notice and within 45 days from the announcement date if they fail to receive the notice,.

 

The company's property shall be paid for the liquidation expenses, employees’ wages, social insurance expenses and statutory compensation, and the remaining assets after paying the taxes owed and paying off the debts, the limited liability company shall allocate it according to the proportion of the capital contributions of the shareholders.

 

After completing the liquidation, the company shall apply to the company registration authority for cancelling the company registration according to the law.

 

Chapter Ten Supplemental Provisions

 

Article 43 The interpretation right for the articles of association belongs to the shareholders’ meeting of the company.

 

Article 44 The articles of association of the company shall take effect after the signatures and stamps of all the shareholders.

 

Article 45 The shareholders 'meeting proposes the company may amend the articles of association. After the amendment of the articles of association must be approved by the representatives of the shareholders' board exceeding two-thirds of the company's voting rights, the legal representative of the company shall sign and report to the company registration authority for the record.

 

Article 46 In case that the articles of association of a company be in conflict with the state laws, administrative regulations, and decisions of the State Council, etc., be subject to the state laws, administrative regulations and decisions of the State Council.

 

Signature of all shareholders:

 

November 2nd, 2018

 

 

-8-

 

 

EX-3.6 3 ex_149444.htm EXHIBIT 3.6 ex_149444.htm

 

Exhibit 3.6

 

 

CERTIFICATE OF INCORPORATION

 

(Duplicate)

 

USCC 91632824MA7592YC3J (1-1)

 

Name: Qinghai Zhongtian Boron Lithium Technology Co., Ltd.

 

Type: Limited Liability Company

 

Address: No. 60, East Renmin Road, Dachaidan Town, Haixi State, Qinghai Province

 

Legal representative: Zhang Mao

 

Registered capital: RMB 10 Million Yuan

 

Establishment Date: Dec. 18, 2018

 

Business term: Long-term

 

Business scope: the production and sale of the sodium borate, boron, boron trioxide, lithium carbonate, lithium chloride, the developmental equipment of Salt Lake and the procurement of the raw materials, boron mining, production and sales of industrial salt, comprehensive development and utilization of Salt Lake resources and the research and development of products, operation and maintenance of the mining equipment, commercial agency, computer network engineering, computer accessories, and road cargo transportation (the approved projects according to law, business activities can be carried out only after approval by the relevant departments) 

 

Registration authority

 

Dec. 18, 2018

 

Supervision and Administration of Market and Production Safety of Dachaidan

 

Enterprise credit information publicity system website: http://gsxt.qhaic.gov.cn

Supervised by the administration for industry and commerce of the People's Republic of China

 

 

 

EX-3.7 4 ex_149445.htm EXHIBIT 3.7 ex_149445.htm

 

Exhibit 3.7

 

 

CERTIFICATE OF INCORPORATION

 

(Duplicate)

 

USCC 91632824MA758X4W51 (1-2)

 

Name: Qinghai Zhongtiancheng Salt Lake Resources R&D Co., Ltd.

 

Type: Limited Liability Company

 

Address: No. 60, East Renmin Road, Dachaidan Town, Haixi State, Qinghai Province

 

Legal representative: Zhang Mao

 

Registered capital: RMB 6 Million Yuan

 

Establishment Date: September 06, 2018

 

Business Term: from September 06, 2018 to September 05, 2048

 

Business Scope: comprehensive development and utilization of salt lake resources and product R&D, production and sales of sodium borate, column borate, boron trioxide, lithium carbonate, procurement of development equipment and raw materials for the salt lake, boron rock mining (business activities of the projects subject to approval according to law shall be carried out after approval by relevant departments)

 

Registration authority

 

Supervision and Administration of Market and Production Safety of Dachaidan

 

September 06, 2018

 

Enterprise credit information publicity system website: http://gsxt.qhaic.gov.cn

Supervised by the administration for industry and commerce of the People's Republic of China

 

 

 

EX-3.8 5 ex_149446.htm EXHIBIT 3.8 ex_149446.htm

 

Exhibit 3.8

 

Qinghai Zhongtiancheng Salt Lake Resources R&D Co., Ltd.

 

Articles of Association

 

Chapter One General

 

Article 1 This Articles of Association is prepared in accordance with the Company Law of the People's Republic of China (hereinafter referred to as the Company Law) and relevant laws and regulations in order to regulate the organization and behavior of the company, to protect the legitimate rights and interests of the company, shareholders and creditors, and to maintain the social and economic order.

 

Article 2 If the terms of the Articles of Association are in conflict with laws, rules or regulations, the laws, rules or regulations shall prevail.

 

Chapter Two Company Name and Address

 

Article 3 Company name: Qinghai Zhongtiancheng Salt Lake Resources R&D Co., Ltd.

 

Article 4 Company address: No. 60, East Renmin Road, Dachaidan Town, Haixi State, Qinghai Province.

 

Chapter Three Business Scope of the Company

 

Article 5 The business scope of the company is: comprehensive development and utilization of salt lake resources and product R&D, production and sales of sodium borate, column borate, boron trioxide, lithium carbonate, procurement of development equipment and raw materials for the salt lake, boron rock mining (business activities of the projects subject to approval according to law shall be carried out after approval by relevant departments)

 

Chapter Four The Registered Capital of Company

 

Article 6 The registered capital of the company is RMB 6 million (in words: RMB SIX MILLION ONLY).

 

Article 7 The registered capital of the company is the amount of contribution subscribed by the shareholders registered in the company registration authority.

 

Article 8 The increase or reduce of the registered capital of the company shall be decided by the shareholders. The reduce of the registered capital of the company shall be notified to the creditors within 10 days and shall be announced on the newspaper within 30 days from the date of the decision. The creditor has the right to request the company to pay off the debt or provide the corresponding guarantee within thirty days from the date of receipt of the notice, or within forty-five days from the date of the announcement without the receipt of the notice. The change of the registered capital of the company shall be registered in relevant registration authority in accordance with the law.

 

Article 9 The Company must prepare the Balance Sheet and the List of Property for reducing of the registered capital.

 

Article 10 The reduced registered capital of the company shall not be lower than the minimum amount stipulated in the Company Law.

 

Chapter Five Name of Shareholders

 

Article 11 The name of the shareholder is as follows:

 

Name of shareholder: Qinghai Zhongtiancheng Resources Technology Co., Ltd.

 

Registration ID: 91630000MA758T0G8N                 

 

Legal representative: Zhang Mao                  

 

Address: No. 60, East Renmin Road, Dachaidan Town, Haixi State, Qinghai Province

 

Chapter Six Contribution Amount, Contribution Mode and Contribution Date of Shareholder

 

Article 12 Contribution amount, contribution mode and contribution date of shareholder are as follows:

 

Name of shareholder

Subscribed capital contribution

Mode of capital contribution

Date of capital contribution

Qinghai Zhongtiancheng Resources Technology Co., Ltd.

RMB 6 Million Yuan

Currency

August 28, 2048

 

 

-1-

 

 

 

Chapter Seven Company Organization and Its Methods of Generation, Authorities, and Rules of Procedure

 

Article 13 The Company shall not set up the Board of Shareholders, and the shareholder is the highest authority of the company.

 

Article 14 The shareholder shall exercise the following powers:

 

(I) To determine the business policies and investment plans of the company;

 

(II) To determine to appoint and replace the Executive Director and the Supervisor, and to decide on matters relating to the remuneration of the Executive Director and the Supervisor;

 

(III) To consider and approve the report of the Executive Director;

 

(IV) To consider and approve the report of the Supervisor;

 

(V) To consider and approve the annual financial budget plans and final account plans of the company;

 

(VI) To consider and approve the profit distribution plans and plans for making up losses of the company;

 

(VII) To determine the increase or reduce the registered capital of the company;

 

(VIII) To make the resolutions on the company’s merger, division, dissolution, liquidation or change of company form;

 

(IX) To amend the Articles of Association of the company;

 

(X) To make the resolutions on the issuance of the Company’s debentures;

 

(XI) To determine shareholder’s transfer of capital;

 

Article 15 The decisions under the Article 14 that the shareholder is made shall be placed in the company in writing after signature.

 

Article 16 The Company shall not set the Board of Directors, and shall set up an Executive Director who shall be assigned by the shareholder with the tenure of three years, and can be re-appointed by the shareholder upon expiration of the tenure.

 

Article 17 The Executive Director shall be responsible to the shareholder and exercise the following powers:

 

(1) To report to the shareholder;

 

(II) To implement the resolutions issued by the shareholder;

 

(III) To determine the business plans and investment plans of the company;

 

(IV) To work out the annual financial budget plans and final account plans of the company;

 

(V) To work out the profit distribution plans and plans for making up losses of the company;

 

(VI) To work out the plans for the increase or reduce of registered capital and the issuance of corporate debentures of the company;

 

(VII) To work out the plans for the Company’s merger, division, dissolution or change of company form;

 

(VIII) To determine the setup of the internal management structure of the company;

 

(IX) To determine the appointment or removal of the company's managers and their remuneration and to determine the appointment or removal of the deputy managers and the chief financial officers and their remuneration according to the managers' nomination;

 

(IX) To work out the basic management system of the company;

 

Article 18 The Executive Director shall submit the decisions that he made based on the provisions of the Articles of Association in writing to the shareholder.

 

Article 19 The Company shall not set the Board of Supervisors, and shall set up a Supervisor who shall be assigned by the shareholder with the tenure of three years, and can be considered for reappointment by the shareholder upon expiration of

 

-2-

 

 

 

the tenure. The Executive Director and the finance manager of the company shall not concurrently act as the Supervisor.

 

Article 20 The Supervisor shall exercise the following powers:

 

(I) To examine the financial affairs of the company;

 

(II) To supervise the duty performance of the Executive Director and the finance manager, and to propose suggestions of dismissal of the Executive Director, manager and the finance manager who violates the laws, administrative regulations, the Articles of Association or the shareholder resolutions;

 

(III) To request the Executive Director and the finance manager to take the corrective actions for their conducts harming the interests of the company;

 

Article 21 Any person with one of the following circumstances shall not act as the Executive Director, Supervisor or the senior manager of the company:

 

(I) He/she does not have civil legal capacity or has limited civil legal capacity;

 

(II) He/she had been sentenced with less than five years after expiration of the implementation due to corruption, bribery, encroachment of property, misappropriation of property or destruction of the socialist market economic order, or deprived of political rights for crime with less than five years after expiration of the implementation ;

 

(III) He/she had acted as the president, or factory director, manager of a bankrupt and liquidated company or the corporate, and had been reliable for the bankruptcy and liquidation of such company or the corporate, with less than three years since the bankruptcy and liquidation of such company or the corporate;

 

(IV) He/she had acted as the legal representative of the company or the corporate that was revoked the business license and ordered to be closed, and had been personally reliable with less than three years since the date of business license was revoked;

 

(V) He/she has large amount and outstanding debts.

 

The election and appointment of the director and supervisor or the employment of the senior manager of the company that in violation of this regulation shall be invalid.

 

The Executive Director, Supervisor or senior manager who is in the any situations listed in the first point of this Article during the term of office shall be dismissed by the company.

 

Chapter Eight The Legal Representative of the Company

 

Article 22 The Executive Director is the legal representative of the company who shall be appointed by the shareholder with the tenure of three years, and can be re-elected upon expiration of the tenure.

 

Article 23 The functions and powers of the legal representative of the company:

 

(I) To sign the relevant documents on behalf of the company;

 

(II) To exercise the right of special discretion and disposition of the company's affairs in the event of a war, a major natural disaster, and under other emergency situation, which shall be in the interests of the company and shall be reported to the shareholder afterwards.

 

Article 24 The legal representative of the company shall be dismissed in the event that he/she is not allowed by the laws, regulations, the State Council regulations or other circumstances.

 

Chapter Nine Finance and Accounting of the Company

 

Article 25 The financial and accounting system of the company shall be established in accordance with the regulations of the laws, administrative regulations and the competent financial department of the State Council.

 

The fiscal year of the company adopts the Gregorian calendar year, which is from January 1 to December 31. The company shall prepare the financial account reports at the end of each year, which shall be audited by an accounting firm. The financial account reports shall include the Financial Statements and subsidiary schedules, as follows:

 

(I) Balance Sheet;

 

-3-

 

 

 

(II) Statement of Income;

 

(III) Statement of Changes in Financial Position

 

(IV) Financial Situation Statement;

 

(V) Statement of Profit Distribution.

 

Article 26 The Company shall withdraw 10% of the profit to the legal reserve of the company when distributing the appropriate after-tax profits. The legal reserve of the company may not be withdrawn when the accumulated amount of the legal reserve of the company is more than 50% of the company's registered capital;

 

If the legal reserve of the company is insufficient to make up for the losses of the previous year, the profit of the current year shall be used firstly to make up for the loss before the withdrawal of the legal reserve in accordance with the provisions of the preceding paragraph.

 

When the legal reserve is converted into capital, the retained reserve shall not be less than 25% of the registered capital of the company before the transfer.

 

The legal reserve shall be used to make up for the losses of the company to expand the production operations of the company or to increase the capital of the company.

 

Article 27 The Company shall establish the legal accounting books only. The assets of the company shall not be saved in the name of any individual.

 

Chapter Ten Dissolution and Liquidation

 

Article 28 The merger of division of the company shall be proceeded with the provisions of national laws and regulations.

 

Article 29 The Company can be dissolved when any cause of such dissolution stipulated by the laws and regulations arises;

 

Article 30 The shareholder shall determine the liquidation team for normal (non-mandatory) dissolution of the company, which shall be established within fifteen days after confirmation of the shareholder.

 

Article 31 The liquidation team shall exercise the following powers during the liquidation period:

 

(I) Cleanup the company assets and prepare the Balance Sheet and the List of Property respectively;

 

(II) Deal with the outstanding business of the company in connection with the liquidation;

 

(III) Notify or bulletin to the creditors;

 

(IV) Pay up taxes owed;

 

(V) Cleanup claims and debts;

 

(VI) Process the remaining property of the company after settlement of the debts;

 

(VII) Participate in civil proceedings on behalf of the company.

 

Article 32 The Company shall stop all the business activities irrelevant to the liquidation after establishment of the liquidation team.

 

Article 33 Notify the creditors within ten days and announce on the newspaper with forty-five days from the date of establishment of the liquidation team. The liquidation team shall register the debits of the company's creditors.

 

Article 34 The liquidation team shall prepare the liquidation plan, which shall be reported to the shareholder for approval after clearing the company's property and preparation of the Balance Sheet and the List of Property.

 

Article 35 The sequence of the property settlement is as follows:

 

(I) Payment of liquidation fees;

 

(II) Wages and labor insurance costs of the employees;

 

(III) Payment of the tax owed;

 

-4-

 

 

 

(IV) Settlement of the company's debts.

 

Article 36 The members of the liquidation team shall be devoted to the duties, perform the liquidation obligations in accordance with the laws, and shall be liable for the compensations for the losses to the company or the creditors resulted from intentional or gross negligence of the members of the liquidation team.

 

Article 37 The liquidation team shall prepare a liquidation report after the completion of liquidation, report it to the shareholder or relevant competent authority for confirmation, and apply for cancellation of registration in the company registration authority to announce the termination of the company.

 

Chapter Eleven Supplementary Provisions

 

Article 38 The resolutions of the shareholder and the company's rules and regulations are an integral part of the Articles of Association and have the same effect; The right to interpret the Articles of Association shall be possessed by the shareholder of the company, and the Articles of Association shall come into effect after change of registration of the company.

 

Article 39 If the terms of the Articles of Association and the rules and regulations of the company are in conflict with national laws and regulations, or with the matters approved by the registration authority, the national laws and regulations, and the matters approved by the registration authority shall prevail.

 

Article 40 Amendment of this Articles of Association shall be decided by the investors and shall be reported to the original approving authority for approval.

 

(No text below)

 

Shareholder (Seal): Qinghai Zhongtiancheng Resources Technology Co., Ltd.

 

 

 

September 5, 2018

 

-5-

 

 

EX-3.9 6 ex_149447.htm EXHIBIT 3.9 ex_149447.htm

 

 

Exhibit 3.9

 

 

CERTIFICATE OF INCORPORATION

 

(Duplicate)

 

USCC 91630000MA758T0G8N (l-2)

 

Name: Qinghai Zhongtiancheng Resources Technology Co, Ltd.

 

Type: Limited Liability Company (solely-invested by the wholly foreign-owned legal person)

 

Address: No. 60, East Renmin Road, Dachaidan Town, Haixi State, Qinghai Province

 

Legal representative: Zhang Mao

 

Registered capital: $1 million dollars

 

Establishment Date: July 09, 2018

 

Business Term: from July 09, 2018 to July 08, 2048

 

Business Scope: comprehensive development and utilization of Salt Lake resources and product research & development, production and marketing of ulexite, pinnoite, boron oxide and lithium carbonate, purchase of Salt Lake development equipment and raw materials, boron exploitation, production and marketing of industrial salt (projects subject to approval pursuant to laws shall conduct business activities after gaining approval of relevant departments)

 

 

Registration authority

 

Administration for Industry and Commerce of Qinghai

 

July 09, 2018

 

Enterprise credit information publicity system website: http://gsxt.qhaic.gov.cn

Supervised by the administration for industry and commerce of the People's Republic of China

 

 

 

EX-3.10 7 ex_149452.htm EXHIBIT 3.10 ex_149452.htm

 

Exhibit 3.10

 

Qinghai Zhongtiancheng Resources Technology Co, Ltd. - A Wholly Foreign-Owned Enterprise

 

Articles of Association

 

Chapter One General

 

Article 1 In accordance with the Law of the PRC on Foreign-Funded Enterprises and the provisions of laws, decrees and regulations, Zhongtiancheng International Resources Investment Co, Ltd. is to create “Qinghai Zhongtiancheng Resources Technology Co, Ltd.” (hereinafter "the Company") in Dacahidam Town, Haixi State, Xining City, Qinghai Province, these articles of association are specially formulated.

 

Article 2 Overview of Investors

 

Corporate name: Zhongtiancheng International Resources Investment Co, Ltd.

 

Registered address: Virgin Islands

 

Legal representative: Zhang Mao

 

Nationality: China ID number: 630104194610270515

 

Article 3 Corporate name: Qinghai Zhongtiancheng Resources Technology Co, Ltd.

 

Registered address: No. 60, Renmin Road, Dachaidan Town, Haixi State, Qinghai Province

 

Article 4 The organizational structure is a limited liability Company, the liability of investors to the Company shall be limited to the amount it has contributed to the registered capital.

 

Article 5 The Company is an enterprise legal person in China, who shall be governed and protected by Chinese law, whose activities should abide by Chinese laws, decrees and relevant regulations.

 

Chapter Two The Tenet and Business Scope

 

Article 6 The Company tenet: adopt advanced and applicable technology and scientific management methods to improve product quality, develop new products, and be competitive in the international market in terms of quality and price, so as to improve economic benefits and make investors obtain satisfactory economic benefits.

 

Article 7 The business scope of the Company: comprehensive development and utilization of Salt Lake resources and product research & development, production and marketing of ulexite, pinnoite, boron oxide and lithium carbonate, purchase of Salt Lake development equipment and raw materials, boron exploitation, production and marketing of industrial salt (projects subject to approval pursuant to laws shall conduct business activities after gaining approval of relevant departments)

 

Chapter Three The Total Investment and Registered Capital

 

Article 8 The total investment of the Company is $1 million, the registered capital is $1 million.

 

Article 9 Investors’ contributions of the registered capital are invested in foreign exchange.

 

Article 10 The deadline of capital contributions subscribed by shareholder is: June 1st, 2038.

 

Article 11 The Company shall not reduce its registered capital during the period of operation.

 

Article 12 The increase, assignment and others of the registered capital shall be approved by the original approval authority and go through modification procedures in the original registration authority.

 

Article 13 No individual in the Company may embezzle, transfer or possess the Company's funds and property in any form.

 

Chapter Four Organizational Structure

 

Article 14 The functions and powers of investors are as follows:

 

1

 

 

 

(I) Decide on the business policies and investment plans of the Company;

 

(II) Appoint and replace executive director and supervisor of the Company and determine the remuneration of director and supervisor;

 

(III) Review and approve reports of executive director;

 

(IV) Review and approve reports of the supervisor;

 

(V) Review and approve the Company's proposed annual financial budgets and final account plan;

 

(VI) Review and approve the Company's profit distribution plans and plans for making up losses;

 

(VII) Pass resolutions on the increase or reduction of the Company's registered capital;

 

(VIII) Pass resolutions on the issuance of corporate bonds;

 

(IX) Pass resolutions on matters such as merger, division, dissolution, liquidation or change of the corporate form of the Company;

 

(X) Amend the Articles of Association of the Company;

 

Article 15 The Company has no board of directors and has one executive director who is appointed and replaced by investors. The executive director shall be the legal representative of the Company, and appointed by the investors and can be reappointed, meeting with a term of three years. The executive director may concurrently hold other senior posts in the Company besides the supervisor. When the new executive director isn’t elected timely upon expiration of a term, the former executive director shall still perform the duties in accordance with the provisions of laws, administrative regulations and articles of association before the re-elected executive director takes office.

 

Article 16 The functions and powers of executive director are as follows:

 

(I) Report work to investors;

 

(II) Implement decisions made by investors;

 

(III) Decide on the business policies and investment plans of the Company;

 

(IV) Working out the Company's annual financial budget plans and final account plans

 

(V) Working out the Company's profit distribution plans and plans for making up losses;

 

(VI) Working out the plan of increase or reduction of the Company's registered capital and the issuance of corporate bonds;

 

(VII)Working out the plan of merger, division, dissolution, liquidation or change of the corporate form of the Company;

 

(VIII) Decide on the establishment of internal management departments of the Company;

 

(IX) Decide on the hiring or dismissing of the Company’s general manager or his remuneration, and that of vice general manager and financial director in accordance with nomination of general manager;

 

(X) Working out the Company's basic management system;

 

(XI) Other rights entrusted to them by these Articles of Association of the Company;

 

Article 17 The Company has no board of supervisors and has one supervisor who is appointed and replaced by investors. The supervisor can serve for three years and can be reappointed after the expiration. The executive director or senior manages shall not concurrently hold the office of the supervisor.

 

When the new supervisor isn’t elected timely upon expiration of a term, the former supervisor shall still perform the duties in accordance with the provisions of laws, administrative regulations and articles of association

 

2

 

 

 

before the re-elected supervisor takes office.

 

Article 18 The functions and powers of supervisor are as follows:

 

(I) Supervise the financial affairs of the Company;

 

(II) Supervise any behavior of the executive director or senior managers and demand the recall of deputies of the executive director or senior managers who violate laws, administrative regulations, and articles of association;

 

(III) Demand the executive director or the senior manager to correct any of their behaviors that compromise the Company’s interests;

 

(IV) Make proposals to investors;

 

(V) Bring a lawsuit against the executive director or the senior manager;

 

(VI) Investigate when finding an abnormal business situation; employ an accounting firm to assist the work when necessary, and the expenses shall be borne by the Company, so is the expenses for supervisors to exercise their functions and powers.

 

Article 19 The Company shall have a general manager, who is appointed or removed by the executive director. The general manager shall be responsible to the executive director and exercise the following functions and powers:

 

(I) Be in charge of the Company’s operation and management, and implement resolutions;

 

(II) Implement the Company’s annual operational plans and investment programs;

 

(III) Draw out a framework of the Company’s internal management;

 

(IV) Draw out basic management rules in the Company;

 

(V) Formulate specific rules in the Company;

 

(VI) Submit suggestions on the appointment or removal of vice manager and financial director;

 

(VII) Appoint or remove managerial personnel (rather than those appointed or removed by the executive director);

 

(VIII) Other functions as granted by the executive director.

 

Chapter Five Finance and Accounting System

 

Article 20 In accordance with the Accounting Law of the PRC and relevant financial rules, the financial accounting of the Company shall regularly send spreadsheet data of operation, assets, profits and losses audited by accountants to relevant competent departments and be under their supervision.

 

Article 21 The fiscal year of the Company shall adopt the Gregorian calendar, and it is a fiscal year from Jan. 1st to Dec. 31st.

 

Article 22 All vouchers, books and statements of the Company shall be written in Chinese.

 

Article 23 The Company shall adopt Renminbi as its accounting base currency. The calculation of converting Renminbi into other currencies is based on the foreign exchange published by the State Administration of Foreign Exchange of the PRC on the actual date of occurrence.

 

Article 24 The Company shall open accounts in RMB and foreign currency with the Bank of China or other Banks agreed by the Bank of China.

 

Article 25 The Company shall adopt the internationally accepted accrual system and debit and credit

 

3

 

 

 

bookkeeping method to keep accounts.

 

Article 26 The following main contents should be registered in the Company's financial and accounting books:

 

I. All income and expense of the Company;

 

II. All sold or purchased goods and materials of the Company;

 

III. Registered capital and debt of the Company;

 

IV. Payment date, increase and transfer of investment capital of the Company;

 

V. Others matters shall be recorded.

 

Article The financial department of the Company shall prepare the balance sheet, profit and loss statement of the previous fiscal year in the first three months of the first fiscal year, which shall be submitted to the executive director for approval after being audited and signed by the auditor.

 

Article 28 In accordance with the relevant regulations and systems of the People's Republic of China, the financial department of a Company shall regularly and timely submit financial statements, annual balance sheets, profit and loss statements, etc. to the relevant administrative departments of the government.

 

Article 29 The operation and financial management of the Company shall be supervised by the competent government departments, industry and commerce, customs and other institutions, and shall provide convenience. The Company shall pay various taxes in accordance with the relevant regulations of China.

 

Article 30 All foreign exchange matters of the Company shall be handled in accordance with the Regulations on Foreign Exchange Control of the People's Republic of China and the relevant provisions. The Company shall solve the problem of foreign exchange balance on its own.

 

Chapter Six Profit Distribution

 

Article 31 The profit of the Company shall be distributed in accordance with the following terms:

 

1. The Company shall draw 10% common reserves from the after-tax profits, the executive director shall decide on the proportion of allocation and propose profit allocation plan at the same time.

 

2. The Company shall award employee bonus according to his contribution to the Company respectively.

 

3. The Company shall not allocate profits until losses are covered if there was a loss last year. The undrawn profits of the Company in the previous fiscal year could be taken together with the profits of this year.

 

Article 32 The Company has dependent business accounting, responsibility for their own profits and losses, and pays all kinds of taxes stipulated by the state in accordance with law.

 

Article 33 The profits that investors gained from Company could be remitted abroad in accordance with foreign exchange regulations.

 

Chapter Seven Staff

 

Article 34 The employment, recruitment, dismissal, wages, welfare, labor protection, labor discipline and others of the Company’s staff shall go through measures prescribed in the Labor Law of the People's Republic of China.

 

Article 35 Staff required by the Company shall be recruited publicly according to qualifications from interviews by the Company with the consent of the local labor management department.

 

Article 36 The Company has the right to give warning, demerit recording and pay cut to employees who

 

4

 

 

 

violate the rules and regulations of the Company. If the circumstances are serious, the Company may dismiss and report them to the labor management department for filing.

 

Article 37 The Company shall sign labor contracts with each employee, in which the matters concerning the salary, welfare, rewards and punishments, labor protection and labor insurance of the employees should be stipulated in accordance with the relevant provisions of the People's Republic of China and the specific conditions of the Company.

 

Article 38 Employees of the Company have the right to establish labor union organizations and carry out activities in accordance with the provisions of the Labor Union Law of the People's Republic of China. The Company shall provide necessary conditions for the unions’ activities.

 

Chapter Eight Insurance

 

Article 39 The Company shall buy their various insurances from legal insurance companies in China. Types, the value and duration of insurance shall be decided by the executive directors in accordance with the stipulations of insurance Company.

 

Chapter Nine Term, Extension, Termination and Liquidation

 

Article 40 The term of the operation of the Company is 30 years, counting from the issuance date of business license.

 

Article 41 When the Company has 30 years of operation, a liquidation committee shall be formed within 15 days from the date of expiration and shall report results to the original approval authority for filing after the completion of liquidation.

 

Article 42 When the Company has 30 years of operation, if the Company needs to extend its business term, its legal representative shall submit a written application to the original approval authority at least 180 days prior to the expiration of its term with the consent of the investor. The term can be extended after approval, and modification formalities shall be handled in the original registration authority.

 

Article 43 In case of the following situations, the Company may terminate the business in advance.

 

I. The Company may suffer heavy losses and could afford to run it.

 

II. The Company may suffer losses caused by force majeure like natural disasters, wars and could afford to run it.

 

III. The Company may fail to obtain objectives of the operation and have no prospects for the future development.

 

When the Company terminates its business ahead of schedule, a liquidation committee shall be formed by the investor’s decision, the legal representative’s application, and the approval of approval authority, to clear up accounts in accordance with legal procedures and cancel the registration of the Company in the original registration authority. It shall publicly announce the termination of the Company after the cancellation of the business license.

 

Article 44 Do not dispose of the assets of the enterprise, except for the purposes of carrying out the liquidation, pending completion of liquidation,

 

Article 45 After the completion of liquidation, report it to the approval authority in order to cancel the registration in the original registration authority and invalidate business license.

 

Chapter Ten Supplementary Provisions

 

Article 46 The Articles of Associations shall be effective after the approval of approval authority.

 

5

 

 

 

Article 47 The amendment to the Articles of Association shall be decided by the investors and submitted to the original approval authority for approval.

 

Article 48 The Articles of Associations shall be written in Chinese. The Chinese version shall prevail, if there is English version of it.

 

Article 49 The Articles of Associations, enacted in Jun. 2018, Xining, Qinghai, China, shall take effect on the date of approval.

 

Investors:

 

June 6th, 2018

 

 

 

 

 

6

 

EX-3.11 8 ex_149454.htm EXHIBIT 3.11 ex_149454.htm

 

Exhibit 3.11

 

BVI COMPANY NUMBER: 1975498

 

 

 

 

TERRITORY OF THE BRITISH VIRGIN ISLANDS THE BVI BUSINESS COMPANIES ACT, 2004

 

 

 

 

MEMORANDUM AND ARTICLES

 

 

OF ASSOCIATION

 

OF

 

 

Midheaven Sincerity International Resources Investment Co., Ltd

中天诚国际资源投资有限公司

 

 

 

 

 

A COMPANY LIMITED BY SHARES

 

 

 

 

 

Incorporated on the 6th day of April, 2018

 

 

 

 

 

 

INCORPORATED IN THE BRITISH VIRGIN ISLANDS

 

 

 

 

 

 

 

TERRITORY OF THE BRITISH VIRGIN ISLANDS THE BVI BUSINESS COMPANIES ACT, 2004

 

MEMORANDUM OF ASSOCIATION OF

Midheaven Sincerity International Resources Investment Co., Ltd

中天诚国际资源投资有限公司

 

 

A COMPANY LIMITED BY SHARES

 

 

 

1.

DEFINITIONS AND INTERPRETATION

 

 

1.1.

In this Memorandum of Association and the Articles of Association of the Company, if not inconsistent with the subject or context:

 

Act” means the BVI Business Companies Act, 2004 (No. 16 of 2004) and includes the regulations made under the Act;

 

Articles” means the Articles of Association of the Company; “Chairman of the Board” has the meaning specified in Regulation 12;

 

Distribution” in relation to a distribution by the Company to a Shareholder means the direct or indirect transfer of an asset, other than Shares, to or for the benefit of the Shareholder, or the incurring of a debt to or for the benefit of a Shareholder, in relation to Shares held by a Shareholder, and whether by means of the purchase of an asset, the purchase, redemption or other acquisition of Shares, a transfer of indebtedness or otherwise, and includes a dividend;

 

Memorandum” means this Memorandum of Association of the Company;

 

Person” includes individuals, corporations, trusts, the estates of deceased individuals, partnerships and unincorporated associations of persons;

 

Registrar” means the Registrar of Corporate Affairs appointed under section 229 of the Act; “Resolution of Directors” means either:

 

 

(a)

a resolution approved at a duly convened and constituted meeting of directors of the Company by the affirmative vote of a majority of the directors present at the meeting who voted except that where a director is given more than one vote, he shall be counted by the number of votes he casts for the purpose of establishing a majority; or

 

 

(b)

a resolution consented to in writing or by telex, telegram, cable or other written electronic communication by a majority of the directors of the Company. A written resolution consented to in such manner may consist of several documents including written electronic communication, in like form each signed or assented to by one or more directors.

 

-1-

 

 

 

Resolution of Shareholders” means either:

 

 

(a)

a resolution approved at a duly convened and constituted meeting of the Shareholders of the Company by the affirmative vote of a majority of in excess of 50 percent of the votes of the Shares entitled to vote thereon which were present at the meeting and were voted; or

 

 

(b)

a resolution consented to in writing by a majority of in excess of 50 percent of the votes of Shares entitled to vote thereon;

 

Seal” means any seal which has been duly adopted as the common seal of the Company;

 

Securities” means Shares and debt obligations of every kind of the Company, and including without limitation options, warrants and rights to acquire Shares or debt obligations;

 

Share” means a share issued or to be issued by the Company;

 

Shareholder” means a Person whose name is entered in the register of members as the holder of one or more Shares or fractional Shares;

 

Treasury Share” means a Share that was previously issued but was repurchased, redeemed or otherwise acquired by the Company and not cancelled; and

 

Written” or any term of like import includes information generated, sent, received or stored by electronic, electrical, digital, magnetic, optical, electromagnetic, biometric or photonic means, including electronic data interchange, electronic mail, telegram, telex or telecopy, and “in writing” shall be construed accordingly.

 

 

1.2.

In the Memorandum and the Articles, unless the context otherwise requires a reference to:

 

 

(a)

a “Regulation” is a reference to a regulation of the Articles;

 

 

(b)

a “Clause” is a reference to a clause of the Memorandum;

 

 

(c)

voting by Shareholders is a reference to the casting of the votes attached to the Shares held by the Shareholder voting;

 

 

(d)

the Act, the Memorandum or the Articles is a reference to the Act or those documents as amended or, in the case of the Act, any re-enactment thereof and any subsidiary legislation made thereunder; and

 

 

(e)

the singular includes the plural and vice versa.

 

 

1.3.

Any words or expressions defined in the Act unless the context otherwise requires bear the same meaning in the Memorandum and the Articles unless otherwise defined herein.

 

 

1.4.

Headings are inserted for convenience only and shall be disregarded in interpreting the Memorandum and the Articles.

 

 

2.

NAME

 

The name of the Company is Midheaven Sincerity International Resources Investment Co., Ltd. The Company has a foreign character name in addition to its name. The foreign character name of the Company is (中天诚国际资源投资有限公司).

 

 

3.

STATUS

 

The Company is a company limited by Shares.

 

-2-

 

 

 

 

4.

REGISTERED OFFICE AND REGISTERED AGENT

 

 

4.1.

The first registered office of the Company is at Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands, the office of the first registered agent.

 

 

4.2.

The first registered agent of the Company is Vistra (BVI) Limited of Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands.

 

 

4.3.

The Company may by Resolution of Shareholders or by Resolution of Directors change the location of its registered office or change its registered agent.

 

 

4.4.

Any change of registered office or registered agent will take effect on the registration by the Registrar of a notice of the change filed by the existing registered agent or a legal practitioner in the British Virgin Islands acting on behalf of the Company.

 

 

4.5.

The registered agent shall:

 

 

(a)

act on the instructions of the directors of the Company if those instructions are contained in a Resolution of Directors and a copy of the Resolution of Directors is made available to the registered agent; and

 

 

(b)

recognise and accept the appointment or removal of a director or directors by Shareholders.

 

 

5.

CAPACITY AND POWERS

 

 

5.1.

Subject to the Act and any other British Virgin Islands legislation, the Company has, irrespective of corporate benefit:

 

 

(a)

full capacity to carry on or undertake any business or activity, do any act or enter into any transaction; and

 

 

(b)

for the purposes of paragraph (a), full rights, powers and privileges.

 

 

5.2.

For the purposes of section 9(4) of the Act, there are no limitations on the business that the Company may carry on.

 

 

6.

NUMBER AND CLASSES OF SHARES

 

 

6.1.

Shares in the company shall be issued in the currency of the United States of America.

 

 

6.2.

The Company is authorised to issue a maximum of 50,000 Shares of a single class each with a par value of US$1.00.

 

 

6.3.

The Company may issue fractional Shares and a fractional Share shall have the corresponding fractional rights, obligations and liabilities of a whole Share of the same class or series of Shares.

 

 

6.4.

Shares may be issued in one or more series of Shares as the directors may by Resolution of Directors determine from time to time.

 

 

7.

RIGHTS OF SHARES

 

 

7.1.

Each Share confers upon the Shareholder:

 

 

(a)

the right to one vote at a meeting of the Shareholders or on any Resolution of Shareholders;

 

 

(b)

the right to an equal share in any dividend paid by the Company; and

 

 

(c)

the right to an equal share in the distribution of the surplus assets of the Company on its liquidation.

 

-3-

 

 

 

 

7.2.

The Company may by Resolution of Directors redeem, purchase or otherwise acquire all or any of the Shares subject to Regulation 3 of the Articles.

 

 

8.

VARIATION OF RIGHTS

 

If at any time the Shares are divided into different classes, the rights attached to any class may only be varied, whether or not the Company is in liquidation, with the consent in writing of or by a resolution passed at a meeting by the holders of not less than 50 percent of the issued Shares in that class.

 

 

9.

RIGHTS NOT VARIED BY THE ISSUE OF SHARES PARI PASSU

 

The rights conferred upon the holders of the Shares of any class shall not, unless otherwise expressly provided by the terms of issue of the Shares of that class, be deemed to be varied by the creation or issue of further Shares ranking pari passu therewith.

 

 

10.

REGISTERED SHARES

 

 

10.1.

The Company shall issue Registered Shares only.

 

 

10.2.

The Company is not authorised to issue Bearer Shares, convert Registered Shares to Bearer Shares or exchange Registered Shares for Bearer Shares.

 

 

11.

TRANSFER OF SHARES

 

 

11.1.

The Company shall, on receipt of an instrument of transfer complying with Sub-Regulation 6.1 of the Articles, enter the name of the transferee of a Share in the register of members unless the directors resolve to refuse or delay the registration of the transfer for reasons that shall be specified in a Resolution of Directors.

 

 

11.2.

The directors may not resolve to refuse or delay the transfer of a Share unless the Shareholder has failed to pay an amount due in respect of the Share.

 

 

12.

AMENDMENT OF THE MEMORANDUM AND THE ARTICLES

 

 

12.1.

Subject to Clause 8, the Company may amend the Memorandum or the Articles by Resolution of Shareholders or by Resolution of Directors, save that no amendment may be made by Resolution of Directors:

 

 

(a)

to restrict the rights or powers of the Shareholders to amend the Memorandum or the Articles;

 

 

(b)

to change the percentage of Shareholders required to pass a Resolution of Shareholders to amend the Memorandum or the Articles;

 

 

(c)

in circumstances where the Memorandum or the Articles cannot be amended by the Shareholders; or

 

 

(d)

to Clauses 7, 8, 9 or this Clause 12.

 

 

12.2.

Any amendment of the Memorandum or the Articles will take effect on the registration by the Registrar of a notice of amendment, or restated Memorandum and Articles, filed by the registered agent.

 

-4-

 

 

 

 

We, Vistra (BVI) Limited of Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands for the purpose of incorporating a BVI Business Company under the laws of the British Virgin Islands hereby sign this Memorandum of Association the 6th day of April, 2018.

 

 

 

Incorporator

……………………………………………….

(Sd.) Rexella D. Hodge

Authorised Signatory Vistra (BVI) Limited

 

 

 

 

 

 

 

 

-5-

 

 

 

 

TERRITORY OF THE BRITISH VIRGIN ISLANDS THE BVI BUSINESS COMPANIES ACT, 2004

 

ARTICLES OF ASSOCIATION OF

Midheaven Sincerity International Resources Investment Co., Ltd

中天诚国际资源投资有限公司

 

 

A COMPANY LIMITED BY SHARES

 

 

1.

REGISTERED SHARES

 

 

1.1.

Every Shareholder is entitled, on request to a certificate signed by a director or officer of the Company, or any other person authorised by Resolution of Directors, or under the Seal specifying the number of Shares held by him and the signature of the director, officer or authorised person and the Seal may be facsimiles.

 

 

1.2.

Any Shareholder receiving a certificate shall indemnify and hold the Company and its directors and officers harmless from any loss or liability which it or they may incur by reason of any wrongful or fraudulent use or representation made by any person by virtue of the possession thereof. If a certificate for Shares is worn out or lost it may be renewed on production of the worn out certificate or on satisfactory proof of its loss together with such indemnity as may be required by Resolution of Directors.

 

 

1.3.

If several Persons are registered as joint holders of any Shares, any one of such Persons may give an effectual receipt for any Distribution.

 

 

2.

SHARES

 

 

2.1.

Shares and other Securities may be issued at such times, to such Persons, for such consideration and on such terms as the directors may by Resolution of Directors determine.

 

 

2.2.

Section 46 of the Act (Pre-emptive rights) does not apply to the Company.

 

 

2.3.

A Share may be issued for consideration in any form or a combination of forms, including money, a promissory note, or other written obligation to contribute money or property, real property, personal property (including goodwill and know-how), services rendered or a contract for future services.

 

 

2.4.

The consideration for a Share with par value shall not be less than the par value of the Share. If a Share with par value is issued for consideration less than the par value, the person to whom the Share is issued is liable to pay to the Company an amount equal to the difference between the issue price and the par value.

 

 

2.5.

A bonus share issued by the Company shall be deemed to have been fully paid for on issue.

 

 

2.6.

No Shares may be issued for a consideration, which is in whole or in part, other than money, unless a Resolution of Directors has been passed stating:

 

 

(a)

the amount to be credited for the issue of the Shares; and

 

-6-

 

 

 

 

(b)

that, in the opinion of the directors, the present cash value of the non-money consideration and money consideration, if any, is not less than the amount to be credited for the issue of the Shares.

 

 

2.7.

The consideration paid for any Share, whether a par value Share or a no par value Share, shall not be treated as a liability or debt of the Company for the purposes of:

 

 

(a)

the solvency test in Regulations 3 and 18; and

 

 

(b)

sections 197 and 209 of the Act.

 

 

2.8.

The Company shall keep a register (the “register of members”) containing:

 

 

(a)

the names and addresses of the Persons who hold Shares;

 

 

(b)

the number of each class and series of Shares held by each Shareholder;

 

 

(c)

the date on which the name of each Shareholder was entered in the register of members; and

 

 

(d)

the date on which any Person ceased to be a Shareholder.

 

 

2.9.

The register of members may be in any such form as the directors may approve, but if it is in magnetic, electronic or other data storage form, the Company must be able to produce legible evidence of its contents. Until the directors otherwise determine, the magnetic, electronic or other data storage form shall be the original register of members.

 

 

2.10.

A Share is deemed to be issued when the name of the Shareholder is entered in the register of members.

 

 

3.

REDEMPTION OF SHARES AND TREASURY SHARES

 

 

3.1.

The Company may purchase, redeem or otherwise acquire and hold its own Shares in such manner and upon such other terms as the directors may agree with the relevant Shareholder(s) save that the Company may not purchase, redeem or otherwise acquire its own Shares without the consent of Shareholders whose Shares are to be purchased, redeemed or otherwise acquired unless the Company is permitted by the Act or any other provision in the Memorandum or Articles to purchase, redeem or otherwise acquire the Shares without their consent.

 

 

3.2.

The Company may acquire its own fully paid Share or Shares for no consideration by way of surrender of the Share or Shares to the Company by the Shareholder holding the Share or Shares. Any surrender of a Share or Shares under this Sub-Regulation 3.2 shall be in writing and signed by the Shareholder holding the Share or Shares.

 

 

3.3.

The Company may only offer to purchase, redeem or otherwise acquire Shares if the Resolution of Directors authorising the purchase, redemption or other acquisition contains a statement that the directors are satisfied, on reasonable grounds, that immediately after the acquisition the value of the Company’s assets will exceed its liabilities and the Company will be able to pay its debts as they fall due.

 

 

3.4.

Sections 60 (Process for acquisition of own Shares), 61 (Offer to one or more shareholders) and 62 (Shares redeemed otherwise than at the option of company) of the Act shall not apply to the Company.

 

 

3.5.

Shares that the Company purchases, redeems or otherwise acquires pursuant to this Regulation may be cancelled or held as Treasury Shares except to the extent that such Shares are in excess of 50 percent of the issued Shares in which case they shall be cancelled but they shall be available for reissue.

 

 

3.6.

All rights and obligations attaching to a Treasury Share are suspended and shall not be exercised by the Company while it holds the Share as a Treasury Share.

 

-7-

 

 

 

 

3.7.

Treasury Shares may be transferred by the Company on such terms and conditions (not otherwise inconsistent with the Memorandum and the Articles) as the Company may by Resolution of Directors determine.

 

 

3.8.

Where Shares are held by another body corporate of which the Company holds, directly or indirectly, Shares having more than 50 percent of the votes in the election of directors of the other body corporate, all rights and obligations attaching to the Shares held by the other body corporate are suspended and shall not be exercised by the other body corporate.

 

 

4.

MORTGAGES AND CHARGES OF SHARES

 

 

4.1.

Shareholders may mortgage or charge their Shares.

 

 

4.2.

There shall be entered in the register of members at the written request of the Shareholder:

 

 

(a)

a statement that the Shares held by him are mortgaged or charged;

 

 

(b)

the name of the mortgagee or chargee; and

 

 

(c)

the date on which the particulars specified in subparagraphs (a) and (b) are entered in the register of members.

 

 

4.3.

Where particulars of a mortgage or charge are entered in the register of members, such particulars may be cancelled:

 

 

(a)

with the written consent of the named mortgagee or chargee or anyone authorised to act on his behalf; or

 

 

(b)

upon evidence satisfactory to the directors of the discharge of the liability secured by the mortgage or charge and the issue of such indemnities as the directors shall consider necessary or desirable.

 

 

4.4.

Whilst particulars of a mortgage or charge over Shares are entered in the register of members pursuant to this Regulation:

 

 

(a)

no transfer of any Share the subject of those particulars shall be effected;

   

 

(b)

the Company may not purchase, redeem or otherwise acquire any such Share; and

 

 

(c)

no replacement certificate shall be issued in respect of such Shares, without the written consent of the named mortgagee or chargee.

 

 

5.

FORFEITURE

 

 

5.1.

Shares that are not fully paid on issue are subject to the forfeiture provisions set forth in this Regulation.

 

 

5.2.

A written notice of call specifying the date for payment to be made shall be served on the Shareholder who defaults in making payment in respect of the Shares.

 

 

5.3.

The written notice of call referred to in Sub-Regulation 5.2 shall name a further date not earlier than the expiration of 14 days from the date of service of the notice on or before which the payment required by the notice is to be made and shall contain a statement that in the event of non-payment at or before the time named in the notice the Shares, or any of them, in respect of which payment is not made will be liable to be forfeited.

 

 

5.4.

Where a written notice of call has been issued pursuant to Sub-Regulation 5.3 and the requirements of the notice have not been complied with, the directors may, at any time before tender of payment, forfeit and cancel the Shares to which the notice relates.

 

-8-

 

 

 

 

5.5.

The Company is under no obligation to refund any moneys to a Shareholder whose Shares have been cancelled pursuant to Sub-Regulation 5.4 and that Shareholder shall be discharged from any further obligation to the Company.

 

 

6.

TRANSFER OF SHARES

 

 

6.1.

Subject to the Memorandum, Shares may be transferred by a written instrument of transfer signed by the transferor and containing the name and address of the transferee, which shall be sent to the Company for registration.

 

 

6.2.

The transfer of a Share is effective when the name of the transferee is entered on the register of members.

 

 

6.3.

If the directors of the Company are satisfied that an instrument of transfer relating to Shares has been signed but that the instrument has been lost or destroyed, they may resolve by Resolution of Directors:

 

 

(a)

to accept such evidence of the transfer of Shares as they consider appropriate; and

 

 

(b)

that the transferee’s name should be entered in the register of members notwithstanding the absence of the instrument of transfer.

 

 

6.4.

Subject to the Memorandum, the personal representative of a deceased Shareholder may transfer a Share even though the personal representative is not a Shareholder at the time of the transfer.

 

 

7.

MEETINGS AND CONSENTS OF SHAREHOLDERS

 

 

7.1.

Any director of the Company may convene meetings of the Shareholders at such times and in such manner and places within or outside the British Virgin Islands as the director considers necessary or desirable.

 

 

7.2.

Upon the written request of Shareholders entitled to exercise 30 percent or more of the voting rights in respect of the matter for which the meeting is requested the directors shall convene a meeting of Shareholders.

 

 

7.3.

The director convening a meeting shall give not less than 7 days’ notice of a meeting of Shareholders to:

 

 

(a)

those Shareholders whose names on the date the notice is given appear as Shareholders in the register of members and are entitled to vote at the meeting; and

 

 

(b)

the other directors.

 

 

7.4.

The director convening a meeting of Shareholders may fix as the record date for determining those Shareholders that are entitled to vote at the meeting the date notice is given of the meeting, or such other date as may be specified in the notice, being a date not earlier than the date of the notice.

 

 

7.5.

A meeting of Shareholders held in contravention of the requirement to give notice is valid if Shareholders holding at least 90 percent of the total voting rights on all the matters to be considered at the meeting have waived notice of the meeting and, for this purpose, the presence of a Shareholder at the meeting shall constitute waiver in relation to all the Shares which that Shareholder holds.

 

 

7.6.

The inadvertent failure of a director who convenes a meeting to give notice of a meeting to a Shareholder or another director, or the fact that a Shareholder or another director has not received notice, does not invalidate the meeting.

 

 

7.7.

A Shareholder may be represented at a meeting of Shareholders by a proxy who may speak and vote on behalf of the Shareholder.

 

-9-

 

 

 

 

7.8.

The instrument appointing a proxy shall be produced at the place designated for the meeting before the time for holding the meeting at which the person named in such instrument proposes to vote. The notice of the meeting may specify an alternative or additional place or time at which the proxy shall be presented.

 

 

7.9.

The instrument appointing a proxy shall be in substantially the following form or such other form as the chairman of the meeting shall accept as properly evidencing the wishes of the Shareholder appointing the proxy.

 

 

[COMPANY NAME]

 

(the “Company”)

 

 

I/We,  ……………………………,  being  a  Shareholder  of  the  Company  HEREBY APPOINT  …………………………………  of  ……………………………  or  failing him ………..……………… of ………………………..…… to be my/our proxy to vote for me/us at the meeting of Shareholders to be held on the …… day of …………..…………, 20…… and at any adjournment thereof.

 

(Any restrictions on voting to be inserted here.) Signed this …… day of …………..…………, 20……

 

……………………………

Shareholder

 

 

 

7.10.

The following applies where Shares are jointly owned:

 

 

(a)

if two or more persons hold Shares jointly each of them may be present in person or by proxy at a meeting of Shareholders and may speak as a Shareholder;

 

 

(b)

if only one of the joint owners is present in person or by proxy he may vote on behalf of all joint owners; and

 

 

(c)

if two or more of the joint owners are present in person or by proxy they must vote as one.

 

 

7.11.

A Shareholder shall be deemed to be present at a meeting of Shareholders if he participates by telephone or other electronic means and all Shareholders participating in the meeting are able to hear each other.

 

 

7.12.

A meeting of Shareholders is duly constituted if, at the commencement of the meeting, there are present in person or by proxy not less than 50 percent of the votes of the Shares entitled to vote on Resolutions of Shareholders to be considered at the meeting. A quorum may comprise a single Shareholder or proxy and then such person may pass a Resolution of Shareholders and a certificate signed by such person accompanied where such person be a proxy by a copy of the proxy instrument shall constitute a valid Resolution of Shareholders.

 

 

7.13.

If within two hours from the time appointed for the meeting a quorum is not present, the meeting, if convened upon the requisition of Shareholders, shall be dissolved; in any other case it shall stand adjourned to the next business day in the jurisdiction in which the meeting was to have been held at the same time and place or to such other time and place as the directors may determine, and if at the adjourned meeting there are present within one hour from the time appointed for the meeting in person or by proxy not less than one third of the votes of the Shares or each class or series of Shares entitled to vote on the matters to be considered by the meeting, those present shall constitute a quorum but otherwise the meeting shall be dissolved.

 

-10-

 

 

 

 

7.14.

At every meeting of Shareholders, the Chairman of the Board shall preside as chairman of the meeting. If there is no Chairman of the Board or if the Chairman of the Board is not present at the meeting, the Shareholders present shall choose one of their number to be the chairman. If the Shareholders are unable to choose a chairman for any reason, then the person representing the greatest number of voting Shares present in person or by proxy at the meeting shall preside as chairman failing which the oldest individual Shareholder or representative of a Shareholder present shall take the chair.

 

 

7.15.

The chairman may, with the consent of the meeting, adjourn any meeting from time to time, and from place to place, but no business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.

 

 

7.16.

At any meeting of the Shareholders the chairman is responsible for deciding in such manner as he considers appropriate whether any resolution proposed has been carried or not and the result of his decision shall be announced to the meeting and recorded in the minutes of the meeting. If the chairman has any doubt as to the outcome of the vote on a proposed resolution, he shall cause a poll to be taken of all votes cast upon such resolution. If the chairman fails to take a poll then any Shareholder present in person or by proxy who disputes the announcement by the chairman of the result of any vote may immediately following such announcement demand that a poll be taken and the chairman shall cause a poll to be taken. If a poll is taken at any meeting, the result shall be announced to the meeting and recorded in the minutes of the meeting.

 

 

7.17.

Subject to the specific provisions contained in this Regulation for the appointment of representatives of Persons other than individuals the right of any individual to speak for or represent a Shareholder shall be determined by the law of the jurisdiction where, and by the documents by which, the Person is constituted or derives its existence. In case of doubt, the directors may in good faith seek legal advice from any qualified person and unless and until a court of competent jurisdiction shall otherwise rule, the directors may rely and act upon such advice without incurring any liability to any Shareholder or the Company.

 

 

7.18.

Any Person other than an individual which is a Shareholder may by resolution of its directors or other governing body authorise such individual as it thinks fit to act as its representative at any meeting of Shareholders or of any class of Shareholders, and the individual so authorised shall be entitled to exercise the same rights on behalf of the Shareholder which he represents as that Shareholder could exercise if it were an individual.

 

 

7.19.

The chairman of any meeting at which a vote is cast by proxy or on behalf of any Person other than an individual may call for a notarially certified copy of such proxy or authority which shall be produced within 7 days of being so requested or the votes cast by such proxy or on behalf of such Person shall be disregarded.

 

 

7.20.

Directors of the Company may attend and speak at any meeting of Shareholders and at any separate meeting of the holders of any class or series of Shares.

 

 

7.21.

An action that may be taken by the Shareholders at a meeting may also be taken by a resolution consented to in writing, without the need for any notice, but if any Resolution of Shareholders is adopted otherwise than by the unanimous written consent of all Shareholders, a copy of such resolution shall forthwith be sent to all Shareholders not consenting to such resolution. The consent may be in the form of counterparts, each counterpart being signed by one or more Shareholders. If the consent is in one or more counterparts, and the counterparts bear different dates, then the resolution shall take effect on the earliest date upon which Shareholders holding a sufficient number of votes of Shares to constitute a Resolution of Shareholders have consented to the resolution by signed counterparts.

 

 

8.

DIRECTORS

 

 

8.1.

The first directors of the Company shall be appointed by the first registered agent within 6 months of the date of incorporation of the Company; and thereafter, the directors shall be elected by Resolution of Shareholders or by Resolution of Directors.

 

-11-

 

 

 

 

8.2.

No person shall be appointed as a director, alternate director, or nominated as a reserve director, of the Company unless he has consented in writing to be a director, alternate director or to be nominated as a reserve director respectively.

 

 

8.3.

Subject to Sub-Regulation 8.1, the minimum number of directors shall be one and there shall be no maximum number.

 

 

8.4.

Each director holds office for the term, if any, fixed by the Resolution of Shareholders or the Resolution of Directors appointing him, or until his earlier death, resignation or removal. If no term is fixed on the appointment of a director, the director serves indefinitely until his earlier death, resignation or removal.

 

 

8.5.

A director may be removed from office,

 

 

(a)

with or without cause, by Resolution of Shareholders passed at a meeting of Shareholders called for the purposes of removing the director or for purposes including the removal of the director or by a written resolution passed by at least 75 percent of the votes of the Shareholders of the Company entitled to vote; or

 

 

(b)

with cause, by Resolution of Directors passed at a meeting of directors called for the purpose of removing the director or for purposes including the removal of the director.

 

 

8.6.

A director may resign his office by giving written notice of his resignation to the Company and the resignation has effect from the date the notice is received by the Company or from such later date as may be specified in the notice. A director shall resign forthwith as a director if he is, or becomes, disqualified from acting as a director under the Act.

 

 

8.7.

The directors may at any time appoint any person to be a director either to fill a vacancy or as an addition to the existing directors. Where the directors appoint a person as director to fill a vacancy, the term shall not exceed the term that remained when the person who has ceased to be a director ceased to hold office.

 

 

8.8.

A vacancy in relation to directors occurs if a director dies or otherwise ceases to hold office prior to the expiration of his term of office.

 

 

8.9.

Where the Company only has one Shareholder who is an individual and that Shareholder is also the sole director of the Company, the sole Shareholder/director may, by instrument in writing, nominate a person who is not disqualified from being a director of the Company as a reserve director of the Company to act in the place of the sole director in the event of his death.

 

 

8.10.

The nomination of a person as a reserve director of the Company ceases to have effect if:

 

 

(a)

before the death of the sole Shareholder/director who nominated him,

 

 

(i)

he resigns as reserve director, or

 

 

(ii)

the sole Shareholder/director revokes the nomination in writing; or

 

 

(b)

the sole Shareholder/director who nominated him ceases to be able to be the sole Shareholder/director of the Company for any reason other than his death.

 

 

8.11.

The Company shall keep a register of directors (the “register of directors”) containing:

 

 

(a)

in the case of an individual director, the particulars stated in section 118A(1)(a) of the Act;

 

 

(b)

in the case of a corporate director, the particulars stated in section 118A(1)(b) of the Act; and

 

 

(c)

such other information as may be prescribed by the Act.

 

-12-

 

 

 

 

8.12.

The register of directors may be kept in any such form as the directors may approve, but if it is in magnetic, electronic or other data storage form, the Company must be able to produce legible evidence of its contents. Until a Resolution of Directors determining otherwise is passed, the magnetic, electronic or other data storage shall be the original register of directors.

 

 

8.13.

The Company shall file for registration with the Registrar a copy of its register of directors (and any changes to the register of directors) in accordance with the provisions of the Act.

 

 

8.14.

The directors may, by Resolution of Directors, fix the emoluments of directors with respect to services to be rendered in any capacity to the Company.

 

 

8.15.

A director is not required to hold a Share as a qualification to office.

 

 

8.16.

A director, by written instrument deposited at the registered office of the Company may from time to time appoint another director or another person who is not disqualified for appointment as a director under section 111 of the Act to be his alternate to:

 

 

(a)

exercise the appointing director's powers; and

 

 

(b)

carry out the appointing director's responsibilities,

 

in relation to the taking of decisions by the directors in the absence of the appointing director.

 

 

8.17.

No person shall be appointed as an alternate director unless he has consented in writing to be an alternate director. The appointment of an alternate director does not take effect until written notice of the appointment has been deposited at the registered office of the Company.

 

 

8.18.

The appointing director may, at any time, terminate or vary the alternate's appointment. The termination or variation of the appointment of an alternate director does not take effect until written notice of the termination or variation has been deposited at the registered office of the Company, save that if a director shall die or cease to hold the office of director, the appointment of his alternate shall thereupon cease and terminate immediately without the need of notice.

 

 

8.19.

An alternate director has no power to appoint an alternate, whether of the appointing director or of the alternate director.

 

 

8.20.

An alternate director has the same rights as the appointing director in relation to any directors' meeting and any written resolution of directors circulated for written consent. Unless stated otherwise in the notice of the appointment of the alternate, or a notice of variation of the appointment, if undue delay or difficulty would be occasioned by giving notice to a director of a resolution of which his approval is sought in accordance with these Articles his alternate (if any) shall be entitled to signify approval of the same on behalf of that director. Any exercise by the alternate director of the appointing director's powers in relation to the taking of decisions by the directors is as effective as if the powers were exercised by the appointing director. An alternate director does not act as an agent of or for the appointing director and is liable for his own acts and omissions as an alternate director.

 

 

8.21.

The remuneration of an alternate director (if any) shall be payable out of the remuneration payable to the director appointing him (if any), as agreed between such alternate and the director appointing him.

 

 

9.

POWERS OF DIRECTORS

 

 

9.1.

The business and affairs of the Company shall be managed by, or under the direction or supervision of, the directors of the Company. The directors of the Company have all the powers necessary for managing, and for directing and supervising, the business and affairs of the Company. The directors may pay all expenses incurred preliminary to and in connection with the incorporation of the Company and may exercise all such powers of the Company as are not by the Act or by the Memorandum or the Articles required to be exercised by the Shareholders.

 

-13-

 

 

 

 

9.2.

Each director shall exercise his powers for a proper purpose and shall not act or agree to the Company acting in a manner that contravenes the Memorandum, the Articles or the Act. Each director, in exercising his powers or performing his duties, shall act honestly and in good faith in what the director believes to be the best interests of the Company.

 

 

9.3.

If the Company is the wholly owned subsidiary of a holding company, a director of the Company may, when exercising powers or performing duties as a director, act in a manner which he believes is in the best interests of the holding company even though it may not be in the best interests of the Company.

 

 

9.4.

Any director which is a body corporate may appoint any individual as its duly authorised representative for the purpose of representing it at meetings of the directors, with respect to the signing of consents or otherwise.

 

 

9.5.

The continuing directors may act notwithstanding any vacancy in their body.

 

 

9.6.

The directors may by Resolution of Directors exercise all the powers of the Company to incur indebtedness, liabilities or obligations and to secure indebtedness, liabilities or obligations whether of the Company or of any third party.

 

 

9.7.

All cheques, promissory notes, drafts, bills of exchange and other negotiable instruments and all receipts for moneys paid to the Company shall be signed, drawn, accepted, endorsed or otherwise executed, as the case may be, in such manner as shall from time to time be determined by Resolution of Directors.

 

 

9.8.

For the purposes of Section 175 (Disposition of assets) of the Act, the directors may by Resolution of Directors determine that any sale, transfer, lease, exchange or other disposition is in the usual or regular course of the business carried on by the Company and such determination is, in the absence of fraud, conclusive.

 

 

10.

PROCEEDINGS OF DIRECTORS

 

 

10.1.

Any one director of the Company may call a meeting of the directors by sending a written notice to each other director.

 

 

10.2.

The directors of the Company or any committee thereof may meet at such times and in such manner and places within or outside the British Virgin Islands as the directors may determine to be necessary or desirable.

 

 

10.3.

A director is deemed to be present at a meeting of directors if he participates by telephone or other electronic means and all directors participating in the meeting are able to hear each other.

 

 

10.4.

A director shall be given not less than 3 days’ notice of meetings of directors, but a meeting of directors held without 3 days’ notice having been given to all directors shall be valid if all the directors entitled to vote at the meeting who do not attend waive notice of the meeting, and for this purpose the presence of a director at a meeting shall constitute waiver by that director. The inadvertent failure to give notice of a meeting to a director, or the fact that a director has not received the notice, does not invalidate the meeting.

 

 

10.5.

A meeting of directors is duly constituted for all purposes if at the commencement of the meeting there are present in person or by alternate not less than one-half of the total number of directors, unless there are only 2 directors in which case the quorum is 2.

 

 

10.6.

If the Company has only one director the provisions herein contained for meetings of directors do not apply and such sole director has full power to represent and act for the Company in all matters as are not by the Act, the Memorandum or the Articles required to be exercised by the Shareholders. In lieu of minutes of a meeting the sole director shall record in writing and sign a note or memorandum of all matters requiring a Resolution of Directors. Such a note or memorandum constitutes sufficient evidence of such resolution for all purposes.

 

-14-

 

 

 

 

10.7.

At meetings of directors at which the Chairman of the Board is present, he shall preside as chairman of the meeting. If there is no Chairman of the Board or if the Chairman of the Board is not present, the directors present shall choose one of their number to be chairman of the meeting.

 

 

10.8.

An action that may be taken by the directors or a committee of directors at a meeting may also be taken by a Resolution of Directors or a resolution of a committee of directors consented to in writing or by telex, telegram, cable or other written electronic communication by a majority of the directors or by a majority of the members of the committee, as the case may be, without the need for any notice. A written resolution consented to in such manner may consist of several documents, including written electronic communication, in like form each signed or assented to by one or more directors. If the consent is in one or more counterparts, and the counterparts bear different dates, then the resolution shall take effect on the date upon which the last director has consented to the resolution by signed counterparts.

 

 

11.

COMMITTEES

 

 

11.1.

The directors may, by Resolution of Directors, designate one or more committees, each consisting of one or more directors, and delegate one or more of their powers, including the power to affix the Seal, to the committee.

 

 

11.2.

The directors have no power to delegate to a committee of directors any of the following powers:

 

 

(a)

to amend the Memorandum or the Articles;

 

 

(b)

to designate committees of directors;

 

 

(c)

to delegate powers to a committee of directors;

 

 

(d)

to appoint or remove directors;

 

 

(e)

to appoint or remove an agent;

 

 

(f)

to approve a plan of merger, consolidation or arrangement;

 

 

(g)

to make a declaration of solvency or to approve a liquidation plan; or

 

 

(h)

to make a determination that immediately after a proposed Distribution the value of the Company’s assets will exceed its liabilities and the Company will be able to pay its debts as they fall due.

 

 

11.3.

Sub-Regulation 11.2(b) and (c) do not prevent a committee of directors, where authorised by the Resolution of Directors appointing such committee or by a subsequent Resolution of Directors, from appointing a sub-committee and delegating powers exercisable by the committee to the sub-committee.

 

 

11.4.

The meetings and proceedings of each committee of directors consisting of 2 or more directors shall be governed mutatis mutandis by the provisions of the Articles regulating the proceedings of directors so far as the same are not superseded by any provisions in the Resolution of Directors establishing the committee.

 

 

11.5.

Where the directors delegate their powers to a committee of directors they remain responsible for the exercise of that power by the committee, unless they believed on reasonable grounds at all times before the exercise of the power that the committee would exercise the power in conformity with the duties imposed on directors of the Company under the Act.

 

-15-

 

 

 

 

12.

OFFICERS AND AGENTS

 

 

12.1.

The Company may by Resolution of Directors appoint officers of the Company at such times as may be considered necessary or expedient. Such officers may consist of a Chairman of the Board of Directors, a president and one or more vice-presidents, secretaries and treasurers and such other officers as may from time to time be considered necessary or expedient. Any number of offices may be held by the same person.

 

 

12.2.

The officers shall perform such duties as are prescribed at the time of their appointment subject to any modification in such duties as may be prescribed thereafter by Resolution of Directors. In the absence of any specific prescription of duties it shall be the responsibility of the Chairman of the Board to preside at meetings of directors and Shareholders, the president to manage the day to day affairs of the Company, the vice-presidents to act in order of seniority in the absence of the president but otherwise to perform such duties as may be delegated to them by the president, the secretaries to maintain the register of members, minute books and records (other than financial records) of the Company and to ensure compliance with all procedural requirements imposed on the Company by applicable law, and the treasurer to be responsible for the financial affairs of the Company.

 

 

12.3.

The emoluments of all officers shall be fixed by Resolution of Directors.

 

 

12.4.

The officers of the Company shall hold office until their successors are duly appointed, but any officer elected or appointed by the directors may be removed at any time, with or without cause, by Resolution of Directors. Any vacancy occurring in any office of the Company may be filled by Resolution of Directors.

 

 

12.5.

The directors may, by Resolution of Directors, appoint any person, including a person who is a director, to be an agent of the Company.

 

 

12.6.

An agent of the Company shall have such powers and authority of the directors, including the power and authority to affix the Seal, as are set forth in the Articles or in the Resolution of Directors appointing the agent, except that no agent has any power or authority with respect to the following:

 

 

(a)

to amend the Memorandum or the Articles;

 

 

(b)

to change the registered office or agent;

 

 

(c)

to designate committees of directors;

 

 

(d)

to delegate powers to a committee of directors;

 

 

(e)

to appoint or remove directors;

 

 

(f)

to appoint or remove an agent;

 

 

(g)

to fix emoluments of directors;

 

 

(h)

to approve a plan of merger, consolidation or arrangement;

 

 

(i)

to make a declaration of solvency or to approve a liquidation plan;

 

 

(j)

to make a determination that immediately after a proposed Distribution the value of the Company’s assets will exceed its liabilities and the Company will be able to pay its debts as they fall due; or

 

 

(k)

to authorise the Company to continue as a company incorporated under the laws of a jurisdiction outside the British Virgin Islands.

 

 

12.7.

The Resolution of Directors appointing an agent may authorise the agent to appoint one or more substitutes or delegates to exercise some or all of the powers conferred on the agent by the Company.

 

-16-

 

 

 

 

12.8.

The directors may remove an agent appointed by the Company and may revoke or vary a power conferred on him.

 

 

13.

CONFLICT OF INTERESTS

 

 

13.1.

A director of the Company shall, forthwith after becoming aware of the fact that he is interested in a transaction entered into or to be entered into by the Company, disclose the interest to all other directors of the Company.

 

 

13.2.

For the purposes of Sub-Regulation 13.1, a disclosure to all other directors to the effect that a director is a member, director or officer of another named entity or has a fiduciary relationship with respect to the entity or a named individual and is to be regarded as interested in any transaction which may, after the date of the entry into the transaction or disclosure of the interest, be entered into with that entity or individual, is a sufficient disclosure of interest in relation to that transaction.

 

 

13.3.

A director of the Company who is interested in a transaction entered into or to be entered into by the Company may:

 

 

(a)

vote on a matter relating to the transaction;

 

 

(b)

attend a meeting of directors at which a matter relating to the transaction arises and be included among the directors present at the meeting for the purposes of a quorum; and

 

 

(c)

sign a document on behalf of the Company, or do any other thing in his capacity as a director, that relates to the transaction,

 

and, subject to compliance with the Act shall not, by reason of his office be accountable to the Company for any benefit which he derives from such transaction and no such transaction shall be liable to be avoided on the grounds of any such interest or benefit.

 

 

14.

INDEMNIFICATION

 

 

14.1.

Subject to the limitations hereinafter provided the Company shall indemnify against all expenses, including legal fees, and against all judgments, fines and amounts paid in settlement and reasonably incurred in connection with legal, administrative or investigative proceedings any person who:

 

 

(a)

is or was a party or is threatened to be made a party to any threatened, pending or completed proceedings, whether civil, criminal, administrative or investigative, by reason of the fact that the person is or was a director of the Company; or

 

 

(b)

is or was, at the request of the Company, serving as a director of, or in any other capacity is or was acting for, another body corporate or a partnership, joint venture, trust or other enterprise.

 

 

14.2.

The indemnity in Sub-Regulation 14.1 only applies if the person acted honestly and in good faith with a view to the best interests of the Company and, in the case of criminal proceedings, the person had no reasonable cause to believe that their conduct was unlawful.

 

 

14.3.

For the purposes of Sub-Regulation 14.2, a director acts in the best interests of the Company if he acts in the best interests of

 

 

(a)

the Company’s holding company; or

 

 

(b)

a Shareholder or Shareholders;

 

in either case, in the circumstances specified in Sub-Regulation 9.3 or the Act, as the case may be.

 

 

14.4.

The decision of the directors as to whether the person acted honestly and in good faith and with a view to the best interests of the Company and as to whether the person had no reasonable cause to believe that his conduct was unlawful is, in the absence of fraud, sufficient for the purposes of the Articles, unless a question of law is involved.

 

-17-

 

 

 

 

14.5.

The termination of any proceedings by any judgment, order, settlement, conviction or the entering of a nolle prosequi does not, by itself, create a presumption that the person did not act honestly and in good faith and with a view to the best interests of the Company or that the person had reasonable cause to believe that his conduct was unlawful.

 

 

14.6.

Expenses, including legal fees, incurred by a director in defending any legal, administrative or investigative proceedings may be paid by the Company in advance of the final disposition of such proceedings upon receipt of an undertaking by or on behalf of the director to repay the amount if it shall ultimately be determined that the director is not entitled to be indemnified by the Company in accordance with Sub-Regulation 14.1.

 

 

14.7.

Expenses, including legal fees, incurred by a former director in defending any legal, administrative or investigative proceedings may be paid by the Company in advance of the final disposition of such proceedings upon receipt of an undertaking by or on behalf of the former director to repay the amount if it shall ultimately be determined that the former director is not entitled to be indemnified by the Company in accordance with Sub-Regulation 14.1 and upon such terms and conditions, if any, as the Company deems appropriate.

 

 

14.8.

The indemnification and advancement of expenses provided by, or granted pursuant to, this section is not exclusive of any other rights to which the person seeking indemnification or advancement of expenses may be entitled under any agreement, Resolution of Shareholders, resolution of disinterested directors or otherwise, both as acting in the person’s official capacity and as to acting in another capacity while serving as a director of the Company.

 

 

14.9.

If a person referred to in Sub-Regulation 14.1 has been successful in defence of any proceedings referred to in Sub-Regulation 14.1, the person is entitled to be indemnified against all expenses, including legal fees, and against all judgments, fines and amounts paid in settlement and reasonably incurred by the person in connection with the proceedings.

 

 

14.10.

The Company may purchase and maintain insurance in relation to any person who is or was a director, officer or liquidator of the Company, or who at the request of the Company is or was serving as a director, officer or liquidator of, or in any other capacity is or was acting for, another company or a partnership, joint venture, trust or other enterprise, against any liability asserted against the person and incurred by the person in that capacity, whether or not the Company has or would have had the power to indemnify the person against the liability as provided in the Articles.

 

 

15.

RECORDS AND UNDERLYING DOCUMENTATION

 

 

15.1.

The Company shall keep the following documents at the office of its registered agent:

 

 

(a)

the Memorandum and the Articles;

 

 

(b)

the register of members, or a copy of the register of members;

 

 

(c)

the register of directors, or a copy of the register of directors; and

 

 

(d)

copies of all notices and other documents filed by the Company with the Registrar of Corporate Affairs in the previous 10 years.

 

 

15.2.

Until the directors determine otherwise by Resolution of Directors the Company shall keep the original register of members and original register of directors at the office of its registered agent.

 

 

15.3.

If the Company maintains only a copy of the register of members or a copy of the register of directors at the office of its registered agent, it shall:

 

 

(a)

within 15 days of any change in either register, notify the registered agent in writing of the change; and

 

 

(b)

provide the registered agent with a written record of the physical address of the place or places at which the original register of members or the original register of directors is kept.

 

-18-

 

 

 

 

15.4.

Where the original register of members or the original register of directors is maintained other than at the office of the registered agent, and the place at which the original records is changed, the Company shall provide the registered agent with the physical address of the new location of the records of the Company within 14 days of the change of location.

 

 

15.5.

The Company shall keep the following records at the office of its registered agent or at such other place or places, within or outside the British Virgin Islands, as the directors may determine:

 

 

(a)

the records and underlying documentation of the Company;

 

 

(b)

minutes of meetings and Resolutions of Shareholders and classes of Shareholders;

 

 

(c)

minutes of meetings and Resolutions of Directors and committees of directors; and

 

 

(d)

an impression of the Seal.

 

 

15.6.

The records and underlying documentation of the Company shall be in such form as:

 

 

(a)

are sufficient to show and explain the Company’s transactions; and

 

 

(b)

will, at any time, enable the financial position of the Company to be determined with reasonable accuracy.

 

 

15.7.

The Company shall retain the records and underlying documentation for a period of at least five years from the date:

 

 

(a)

of completion of the transaction to which the records and underlying documentation relate; or

 

 

(b)

the Company terminates the business relationship to which the records and underlying documentation relate.

 

 

15.8.

Where the records and underlying documentation of the Company are kept at a place or places other than at the office of its registered agent, the Company shall provide the registered agent with a written:

 

 

(a)

record of the physical address of the place at which the records and underlying documentation are kept; and

 

 

(b)

record of the name of the person who maintains and controls the Company’s records and underlying documentation.

 

 

15.9.

Where the place or places at which the records and underlying documentation of the Company, or the name of the person who maintains and controls the Company’s records and underlying documentation, change, the Company shall, within 14 days of the change, provide its registered agent with:

 

 

(a)

the physical address of the new location of the records and underlying documentation; or

 

 

(b)

the name of the new person who maintains and controls the Company’s records and underlying documentation.

 

 

15.10.

The Company shall provide its registered agent without delay any records and underlying documentation in respect of the Company that the registered agent requests pursuant to the Act.

 

 

15.11.

The records and underlying documentation kept by the Company under this Regulation shall be in written form or either wholly or partly as electronic records complying with the requirements of the Electronic Transactions Act, 2001 (No. 5 of 2001) as from time to time amended or re-enacted.

 

-19-

 

 

 

 

16.

REGISTER OF CHARGES

 

 

16.1.

The Company shall maintain at the office of its registered agent a register of charges in which there shall be entered the following particulars regarding each mortgage, charge and other encumbrance created by the Company:

 

 

(a)

the date of creation of the charge;

 

 

(b)

a short description of the liability secured by the charge;

 

 

(c)

a short description of the property charged;

 

 

(d)

the name and address of the trustee for the security or, if there is no such trustee, the name and address of the chargee;

 

 

(e)

unless the charge is a security to bearer, the name and address of the holder of the charge; and

 

 

(f)

details of any prohibition or restriction contained in the instrument creating the charge on the power of the Company to create any future charge ranking in priority to or equally with the charge.

 

 

16.2.

Where a change occurs in the relevant charges or in the details of the charges required to be recorded in the Company’s register of charges maintained in accordance with Sub-Regulation 16.1, the Company shall, within 14 days of the change occurring, transmit details of the change to the registered agent.

 

 

17.

SEAL

 

The Company shall have a Seal and may have more than one Seal and references herein to the Seal shall be references to every Seal which shall have been duly adopted by Resolution of Directors. The directors shall provide for the safe custody of the Seal and for an imprint thereof to be kept at the registered office. Except as otherwise expressly provided herein the Seal when affixed to any written instrument shall be witnessed and attested to by the signature of any one director or other person so authorised from time to time by Resolution of Directors. Such authorisation may be before or after the Seal is affixed, may be general or specific and may refer to any number of sealings. The directors may provide for a facsimile of the Seal and of the signature of any director or authorised person which may be reproduced by printing or other means on any instrument and it shall have the same force and validity as if the Seal had been affixed to such instrument and the same had been attested to as hereinbefore described.

 

 

18.

DISTRIBUTIONS

 

 

18.1.

The directors of the Company may, by Resolution of Directors, authorise a Distribution at a time and of an amount they think fit if they are satisfied, on reasonable grounds, that, immediately after the Distribution, the value of the Company’s assets will exceed its liabilities and the Company will be able to pay its debts as they fall due.

 

 

18.2.

Distributions may be paid in money, Shares, or other property.

 

 

18.3.

Notice of any Distribution that may have been declared shall be given to each Shareholder as specified in Sub-Regulation 20.1 and all Distributions unclaimed for 3 years after having been declared may be forfeited by Resolution of Directors for the benefit of the Company.

 

 

18.4.

No Distributions shall bear interest as against the Company and no Distribution shall be paid on Treasury Shares.

 

-20-

 

 

 

 

19.

ACCOUNTS AND AUDIT

 

 

19.1.

The Company shall keep records that are sufficient to show and explain the Company’s transactions and that will, at any time, enable the financial position of the Company to be determined with reasonable accuracy.

 

 

19.2.

The Company may by Resolution of Shareholders call for the directors to prepare periodically and make available a profit and loss account and a balance sheet. The profit and loss account and balance sheet shall be drawn up so as to give respectively a true and fair view of the profit and loss of the Company for a financial period and a true and fair view of the assets and liabilities of the Company as at the end of a financial period.

 

 

19.3.

The Company may by Resolution of Shareholders call for the accounts to be examined by auditors.

 

 

19.4.

The first auditors shall be appointed by Resolution of Directors; subsequent auditors shall be appointed by Resolution of Shareholders or by Resolution of Directors.

 

 

19.5.

The auditors may be Shareholders, but no director or other officer shall be eligible to be an auditor of the Company during their continuance in office.

 

 

19.6.

The remuneration of the auditors of the Company may be fixed by Resolution of Directors.

 

 

19.7.

The auditors shall examine each profit and loss account and balance sheet required to be laid before a meeting of the Shareholders or otherwise given to Shareholders and shall state in a written report whether or not:

 

 

(a)

in their opinion the profit and loss account and balance sheet give a true and fair view respectively of the profit and loss for the period covered by the accounts, and of the assets and liabilities of the Company at the end of that period; and

 

 

(b)

all the information and explanations required by the auditors have been obtained.

 

 

19.8.

The report of the auditors shall be annexed to the accounts and shall be read at the meeting of Shareholders at which the accounts are laid before the Company or shall be otherwise given to the Shareholders.

 

 

19.9.

Every auditor of the Company shall have a right of access at all times to the books of account and vouchers of the Company, and shall be entitled to require from the directors and officers of the Company such information and explanations as he thinks necessary for the performance of the duties of the auditors.

 

 

19.10.

The auditors of the Company shall be entitled to receive notice of, and to attend any meetings of Shareholders at which the Company’s profit and loss account and balance sheet are to be presented.

 

 

20.

NOTICES

 

 

20.1.

Any notice, information or written statement to be given by the Company to Shareholders may be given by personal service or by mail addressed to each Shareholder at the address shown in the register of members.

 

 

20.2.

Any summons, notice, order, document, process, information or written statement to be served on the Company may be served by leaving it, or by sending it by registered mail addressed to the Company, at its registered office, or by leaving it with, or by sending it by registered mail to, the registered agent of the Company.

 

-21-

 

 

 

 

20.3.

Service of any summons, notice, order, document, process, information or written statement to be served on the Company may be proved by showing that the summons, notice, order, document, process, information or written statement was delivered to the registered office or the registered agent of the Company or that it was mailed in such time as to admit to its being delivered to the registered office or the registered agent of the Company in the normal course of delivery within the period prescribed for service and was correctly addressed and the postage was prepaid.

 

 

21.

VOLUNTARY LIQUIDATION

 

The Company may by Resolution of Shareholders or, subject to section 199(2) of the Act, by Resolution of Directors appoint a voluntary liquidator.

 

 

22.

CONTINUATION

 

The Company may by Resolution of Shareholders or by a Resolution of Directors continue as a company incorporated under the laws of a jurisdiction outside the British Virgin Islands in the manner provided under those laws.

 

 

We, Vistra (BVI) Limited of Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands for the purpose of incorporating a BVI Business Company under the laws of the British Virgin Islands hereby sign these Articles of Association the 6th day of April, 2018.

 

 

Incorporator

 

……………………………………………….

(Sd.) Rexella D. Hodge

Authorised Signatory Vistra (BVI) Limited

 

 

 

-22-

 

 

EX-3.12 9 ex_149455.htm EXHIBIT 3.12 ex_149455.htm

 

 

Exhibit 3.12

 

TERRITORY OF THE BRITISH VIRGIN ISLANDS BVI BUSINESS COMPANIES ACT, 2004

 

 

 

CERTIFICATE OF INCORPORATION

(SECTION 7)

 

2390050214

 

 

The REGISTRAR of CORPORATE AFFAIRS, of the British Virgin Islands HEREBY CERTIFIES, that pursuant to the BVI Business Companies Act, 2004, all the requirements of the Act in respect of incorporation having been complied with,

 

Midheaven Sincerity International Resources Investment Co., Ltd

BVI COMPANY NUMBER: 1975498

 

 

 

is incorporated in the BRITISH VIRGIN ISLANDS as a BVI BUSINESS COMPANY, this 6th day of April, 2018.

 

 

 

for REGISTRAR OF CORPORATE AFFAIRS

6th day of April, 2018

 

 

 

EX-4.2 10 ex_149456.htm EXHIBIT 4.2 ex_149456.htm

 

Exhibit 4.2

 

中天诚国际资源投资有限公司

Midheaven Sincerity International Resources Investment Co., Ltd

 

NAME AND ADDRESS OF SHAREHOLDER

CERTIFICATE NUMBER

DISTINCTIVE NUMBERS

PAR VALUE PER SHARE

***7***

FROM

TO

US$1.00

SMARTHEAT INC

701 S CARSON ST STE 200, CARSON CITY, NV 89701

1

50,000

DATE OF ISSUE NO. OF SHARES CONSIDERATION PAID

14 January 2019

***50,000***

US$50,000.00

 

 

SHARE CERTIFICATE

OF

 

中天诚国际资源投资有限公司

 

Midheaven Sincerity International Resources Investment Co., Ltd

 

INCORPORATED IN THE BRITISH VIRGIN ISLANDS

 

Authorised to issue a maximum of 50,000 Shares of a single class each with a par value of US$1.00

 

 

THIS IS TO CERTIFY THAT THE UNDERMENTIONED PERSON IS THE REGISTERED HOLDER OF THE SHARES SPECIFIED HEREUNDER SUBJECT TO THE RULES AND LAWS GOVERNING THE ADMINISTRATION OF THE COMPANY

 

 

SHAREHOLDER

 

 

NO. OF SHARES

DISTINCTIVE NUMBERS

 

 

CERTIFICATE NUMBER

 

 

DATE OF ISSUE

   

FROM

TO

   

 

SMARTHEAT INC

 

 

***50,000***

 

 

1

 

 

50,000

 

 

***7***

 

 

14 January 2019

 

 

GIVEN UNDER THE COMMON SEAL OF THE COMPANY ON THE DATE STATED ABOVE AND IN THE PRESENCE OF

 

 

 


DIRECTOR/OFFICER/AUTHORISED PERSON

 

NO TRANSFER OF ANY OF THE ABOVE SHARES CAN BE REGISTERED UNLESS ACCOMPANIED BY THIS CERTIFICATE

 

 

 

EX-10.25 11 ex_149457.htm EXHIBIT 10.25 ex_149457.htm

 

Exhibit 10.25

 

Exclusive Agreement

 

Party A: Qinghai Zhongtian Boron and Lithium Science & Technology Co., Ltd. (hereinafter referred to as Party A)

 

Party B: Qinghai Zhongtian Boron and Lithium Mining Co., Ltd. (hereinafter referred to as Party B)

 

Based upon good trust, in consideration of the long-term development strategy of both parties, the following agreement has been reached after friendly negotiation between the two parties.

 

1.0 Cooperation Programme

 

1.1 Purpose of Cooperation

 

The purpose of cooperation between Party A and Party B is to create a win-win situation and establish a sustainable development strategic partnership through close cooperation between each other.

 

1.2 Cooperation Content

 

1.2.1 Cooperation between the two parties is exclusive. All products of Party B are determined to be supplied only to Party A;

 

1.2.2 Party B's boron ore products (with a grade of not less than 5%) are sold to Party A at 60 yuan per ton. The sales price is adjusted according to the actual annual mining cost. The annual price increase cannot exceed 5%. The annual supply of boron ore is based on Party A's production demand. Supply monthly supply of not less than 20,000 tons.

 

1.3 Cooperation Term

 

The cooperation term between the two parties is from January 1, 2019 to August 31, 2037.

 

2.0 Rights and Obligations of Both Parties

 

Strategic cooperation requires the joint efforts of both parties to achieve the desired results. Therefore, the rights and obligations of both parties are regulated as follows:

 

2.1 Rights of Party A and Party B

 

 

Both Party A and Party B have the right to request the other party to provide services stipulated in the contract.

 

Both Party A and Party B enjoy the economic rights and interests stipulated in this contract.

 

Both Party A and Party B enjoy the right of requiring for economic compensation for losses caused by the other party’s failure to perform relevant agreement and project responsibilities.

 

2.2 Obligations of Party A and Party B

 

Both Party A and Party B shall perform obligations as scheduled in this agreement.

 

It is the two parties’ obligation to advance and complete the project undertaken by both parties as planned.

 

The two parties should make full use of their industry influence and strategic partnership to provide favorable conditions for developing business and constructing sales channels.

 

Both Party A and Party B have the obligation to strictly manage product quality and must not damage the image and interests of both parties.

 

Party A and Party B shall be responsible for providing relevant training for teams of both parties.

 

3.0 Appendix

 

In the event of any incomplete part of the cooperative business and related commercial terms under this agreement, the two parties will negotiate a separate written statement and attach

 

 

 

 

it as an Appendix, which is an integral part of this agreement. Unless otherwise stated, the terms of this agreement also apply to the Appendix. If the terms of the Appendix conflict with this agreement, the instructions of the Appendix shall prevail. The specific issues of specific cooperation content, including the work process, cooperation time, settlement mode and other issues that need to be discussed jointly, shall be agreed upon through friendly negotiation and signed in the Appendix by the two parties.

 

4.0 Force Majeure

 

In the event of a force majeure event that severely obstructs either party from fulfilling its obligations under the agreement, or such force majeure events causing the goals of the contract unattainable, the party shall notify the other party without delay of the extent to which it has performed its contractual obligations or performed part of its contractual obligations. And the certificate of the relevant authority shall be issued.

 

5.0 Statement and Guarantee

 

5.1 Party B's statement and guarantee to Party A

 

Party B is legally established and validly existing under the relevant laws.

 

Business scope of Party B is in accordance with the relevant laws and regulations, and has the business qualifications prescribed by the state.

 

5.2 Party A's statement and guarantee to Party B

 

Party A is legally established and validly existing under the relevant laws.

 

Business scope of Party A is in accordance with the relevant laws and regulations, and has the business qualifications prescribed by the state.

 

6.0 Others

 

This agreement shall take effect on the date of sealing of both parties. This agreement is in duplicate and each party shall hold one which has the same legal effect.

 

7.0 Settlement of Disputes

 

The parties shall settle all disputes arising out of or in connection with this agreement through friendly negotiation. If the two parties cannot reach an agreement through negotiation, they shall file a lawsuit to the local court of Party A and settle down through litigation procedures.

 

Party A: Qinghai Zhongtian Boron and Lithium Science & Technology Co., Ltd.

 

Signing Date: January 1, 2019

 

Party B: Qinghai Zhongtian Boron and Lithium Mining Co., Ltd.

 

Signing Date: January 1, 2019

 

 

 

 

EX-10.26 12 ex_149458.htm EXHIBIT 10.26 ex_149458.htm

 

Exhibit 10.26

 

 

Of

 

Mining Right Assignment Contract in Qinghai Province

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract No.: 2005-1

 

Assignor: Department of Land Resources of Qinghai Province

 

Assignee: Qinghai Zhongtian Boron Lithium Mining Co. Ltd.

 

Signing Place: Department of Land Resources of Qinghai Province

 

Signing Date: January 5, 2005

 

 

 

 

 

Mining Right Assignment Contract

 

Assignor: Department of Land Resources of Qinghai Province

 

Address: No. 24, Shengli Road, Xining City

 

Assignee: Qinghai Zhongtian Boron Lithium Mining Co. Ltd.

 

Address: No. 3, Renmin West Road, Dachaidan, Haixi Prefecture

 

According to Law of the People's Republic of China on Mineral Resources, Contract Law of the People's Republic of China, Regulations on Mineral Resources Management in Qinghai Province and relevant laws and regulations, both parties sign the contract for the principles of equality, voluntariness, honesty and trustworthiness.

 

Article I The assignee obtains the mining right of Dachaidan Lake Boron Mine (part of ore section) through the method of transfer.

 

Article II The mining right is in Dachaidan Lake, Haixi Prefecture, Qinghai Province, the mining area is 35.6972 square kilometers, the mining depth is from 3147.37 m to 3134.37 m and the mining area where the mining right is transferred is delineated by 4 inflection points (see the copy of mining license).

 

Article III The term of assignment of mining right is 33 years (from August 2004) and the mining right will be reclaimed by the state upon the expiration.

 

Article IV The mining right shall not be transferred without authorization. In case of transfer, it must be approved by registration authority and it can be transferred after handling the transfer procedures in accordance with the law.

 

Article V The assignee must pay the fee of mining right on time in accordance with the contract. If the consignee fails to pay the fee of mining right on time within the prescribed time limit, the assignor shall receive 2‰ fine for delaying payment of the deferred payment daily from the day of delay. If one of the payment is 3 months overdue, the assignor has the right to terminate the contract, take the mining right back and the assignee shall bear other losses caused by breach of contract.

 

Article VI After receiving the mining license, the assignee must mine it by self, shall not contract or transfer it to any other person for mining in any form without authorization and collect contracting fees and management fees. In case of contracting or transfer without authorization and the plot is serious, the assignor has the right to take the mining right back and investigate and punish the assignee in accordance with illegal transfer of mining right.

 

Article VII Mineral resources must be rationally mined in accordance with the development and utilization plan, the relevant provisions on environmental protection and safe production, which shall not exceed the depth and beyond the boundary, shall not damage and destroy the surrounding natural ecological environment or facilities. In the event that the consignee does not mine in accordance with the development and utilization plan, the relevant provisions on environmental protection and safe production, or mines in excess of depth and beyond the boundary, or causes waste of resources or the damage and pollution to the environment, or major accidents in production safety or fails to meet the safety standard and the plot are serious, the assignor has the right to take the mining right back.

 

Article VIII According to the regulations of Article VII in Measures for the Registration Administration of Mineral Resources Exploitation, if the mining shall be continued upon expiration of mining license, the mining right owner shall handle the renewal of registration at registration authority 30 days before the expiration of the mining license. If the mining right owner does not handle the renewal of registration within the time limit, the mining license shall be annulled.

 

Article IX According to the regulations of Article XXXVII in Regulations on Mineral Resources Management in Qinghai Province, if the mining right owner alters the mining area, main mining minerals, mining method, name of mining enterprise or transfers the mining right in accordance with the law within the validity term of mining license,

 

 

 

 

the mining right owner shall apply to handle change of registration procedures at the original examination and approval and issuing authority.

 

Article X According to the regulations of Article XXXVIII in Regulations on Mineral Resources Management in Qinghai Province, if the mining right owner needs to stop or close the mine within the validity term or upon the expiration of mining license, the mining right owner shall apply to handle the procedures for deregistration of mining licenses at the original examination and approval and issuing authority within 30 days of the decision to stop or close the mine.

 

The assignee must restore and control the ecological environment of the mine when closing the mine.

 

Article XI The disputes arising from the performance of the contract shall be solved by both parties through negotiation in accordance with national laws or relevant policies. If negotiation fails, it shall be solved by    of this article:

 

(I) Submit it to        arbitration committee for arbitration.

 

(II) File a lawsuit to the people’s court.

 

Article XII The contract will come into force from the date of signature and seal of both parties.

 

Article XIII The contract is in quadruplicate with the assignor and the assignee holding 2 copies respectively.

 

Article XIV The contract is 4 pages in total.

 

Article XV The unaccomplished matters of the contract shall be agreed after negotiation of both parties, which shall be the annex of the contract. The annex has the equal legal effect with the contract.

 

Assignor: (Seal) Department of Land Resources of Qinghai Province

Assignee: (Seal) Qinghai Zhongtian Boron Lithium Mining Co. Ltd.

   

Address: No. 24, Shengli Road, Xining City

 Address: No. 3, Renmin West Road, Dachaidan, Haixi Prefecture

Legal Representative: Qingma Yinshun

Legal Representative: Zhang Mao

Authorized Representative:

Authorized Representative:

Tel.: 6136448

 Tel.:(0977)8282529

Fax: 6136448

Fax: 8281228

Postcode: 810001

Postcode::816200

 

Signing date: January 5, 2005

 

 

EX-21.1 13 ex_149459.htm EXHIBIT 21.1 ex_149459.htm

 

Exhibit 21.1

 

SmartHeat Inc. and subsidiaries as of December 31, 2013

 

Subsidiary Name

 

Jurisdiction of Incorporation

 

Percentage Owned

 
Mid-Heaven Sincerity International Resources Investment Co., Ltd    British Virgin Islands     100%  
*Qing Hai Mid-Heaven Sincerity Technology Co., Ltd   Peoples Republic of China   100%  
*Qing Hai Mid-Heaven Sincerity Salt-Lake R&D Co., Ltd   Peoples Republic of China         100%  
*Qing Hai Mid-Heaven Boron & Lithium Technology Co., Ltd     Peoples Republic of China   100%  

 

Heat HP Inc.

 

Nevada, United States

 

100%

 

*SmartHeat (China) Investment Co., Ltd.

 

People’s Republic of China

 

100%

 

*SmartHeat (Shanghai) Trading Co., Ltd.

 

People’s Republic of China

 

100%

 

*SmartHeat (Shenyang) Heat Pump Technology Co., Ltd.

 

People’s Republic of China

 

98.8%

 (1)

*Beijing SmartHeat Jinhui Energy Technology Co., Ltd

 

People’s Republic of China

 

52%

 (2)

 

* Indicates subsidiary of a subsidiary.

 

(1)  

We hold through 98.8% of the equity interest in SmartHeat Pump, with the remaining 1.2% of the equity interest held by Shenyang Economic and Technological Development Zone State-owned Assets Management Co., Ltd.

 

(2)  

We control 52% of Jinhui pursuant to a joint venture agreement entered into with the minority owner, Beijing Jun Tai Heng Rui Investment Consultancy Co. Ltd.

 

 

 

 

 

 

EX-31.1 14 ex_149460.htm EXHIBIT 31.1 ex_149460.htm

Exhibit 31.1

 

CERTIFICATION PURSUANT TO SECTION 302(a)

OF THE SARBANES-OXLEY ACT OF 2002

 

I, Jimin Zhang, certify that:

 

1.

I have reviewed this Annual Report on Form 10-K for the period ended December 31, 2018, of SmartHeat Inc.;

 

2.

Based on my knowledge, this 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 report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this 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 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 over financial reporting 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: July 12, 2019

By:

/s/ Jimin Zhang

 

 

 

Jimin Zhang

President

(Principal Executive Officer)

 

 

EX-31.2 15 ex_149461.htm EXHIBIT 31.2 ex_149461.htm

Exhibit 31.2

 

CERTIFICATION PURSUANT TO SECTION 302(a)

OF THE SARBANES-OXLEY ACT OF 2002

 

I, Xudong Wang, certify that:

 

1.

I have reviewed this Annual Report on Form 10-K for the period ended December 31, 2018, of SmartHeat Inc.;

 

2.

Based on my knowledge, this 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 report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this 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 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 over financial reporting 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: July 12, 2019  

By:

/s/ Xudong Wang

 

 

 

Xudong Wang

Chief Financial Officer
(Principal Financial Officer)

 

 

EX-32.1 16 ex_149462.htm EXHIBIT 32.1 ex_149462.htm

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 Annual Report on Form 10-K of SmartHeat Inc. (the “Company”) for the period ended December 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jimin Zhang, President of the Company, hereby certify to the best of my knowledge, pursuant to 18 U.S.C. §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 (15 U.S.C. §78m or §78o(d)); and

 

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

 

Date: July 12, 2019

By:

/s/ Jimin Zhang

 

 

 

Jimin Zhang

Chief Executive Officer

 

This certification accompanies each Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

 

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

EX-32.2 17 ex_149463.htm EXHIBIT 32.2 ex_149463.htm

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 Annual Report on Form 10-K of SmartHeat Inc. (the “Company”) for the period ended December 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Xudong Wang, Acting Chief Accountant of the Company, hereby certify to the best of my knowledge, pursuant to 18 U.S.C. §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 (15 U.S.C. §78m or §78o(d)); and

 

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

 

Date: July 12, 2019

By:

Xudong Wang

 

 

 

Xudong Wang

Chief Financial Officer

 

This certification accompanies each Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

 

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

EX-101.INS 18 heat-20181231.xml XBRL INSTANCE DOCUMENT 0001384135 2018-12-31 0001384135 2017-12-31 0001384135 2018-01-01 2018-12-31 0001384135 2017-01-01 2017-12-31 0001384135 us-gaap:CommonStockMember 2016-12-31 0001384135 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0001384135 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-12-31 0001384135 us-gaap:RetainedEarningsMember 2016-12-31 0001384135 2016-12-31 0001384135 us-gaap:RetainedEarningsMember 2017-01-01 2017-12-31 0001384135 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-01-01 2017-12-31 0001384135 us-gaap:CommonStockMember 2017-12-31 0001384135 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001384135 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001384135 us-gaap:RetainedEarningsMember 2017-12-31 0001384135 us-gaap:CommonStockMember 2018-01-01 2018-12-31 0001384135 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-12-31 0001384135 us-gaap:RetainedEarningsAppropriatedMember 2018-01-01 2018-12-31 0001384135 us-gaap:RetainedEarningsMember 2018-01-01 2018-12-31 0001384135 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-12-31 0001384135 us-gaap:CommonStockMember 2018-12-31 0001384135 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001384135 us-gaap:RetainedEarningsAppropriatedMember 2018-12-31 0001384135 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001384135 us-gaap:RetainedEarningsMember 2018-12-31 0001384135 2019-07-01 0001384135 2018-06-30 0001384135 2013-08-23 2013-08-23 0001384135 heat:SmartHeatChinaInvestmentCoLtdMember heat:HeatHPIncMember 2013-08-23 2013-08-23 0001384135 heat:SmartHeatShanghaiTradingCoLtdMember heat:HeatHPIncMember 2013-08-23 2013-08-23 0001384135 heat:BeijingSmartheatJinhuiEnergyTechnologyCoLtdMember heat:HeatHPIncMember 2013-08-23 2013-08-23 0001384135 heat:SmartHeatDeutschlandGmbHSmartHeatGermanyMember heat:HeatHPIncMember 2013-08-23 2013-08-23 0001384135 heat:SmartHeatShenyangHeatPumpTechnologyCoLtdMember heat:HeatHPIncMember 2013-08-23 2013-08-23 0001384135 heat:SmartHeatTaiyuShenyangEnergyTechnologyCoLtdMember heat:HeatPHEIncMember 2013-08-23 2013-08-23 0001384135 heat:SmartHeatShenyangEnergyEquipmentCoLtdMember heat:HeatPHEIncMember 2013-08-23 2013-08-23 0001384135 heat:HohhotRuichengTechnologyCoLtdMember heat:HeatPHEIncMember 2013-08-23 2013-08-23 0001384135 us-gaap:RevolvingCreditFacilityMember heat:HeatPHEIncMember 2013-08-23 2013-08-23 0001384135 heat:SmartHeatHeatExchangeEquipmentCoMember 2013-12-31 0001384135 heat:SmartHeatSipingBeifangEnergyTechnologyCoLtdMember heat:EquityInterestPurchaseAgreementMember 2013-12-30 0001384135 heat:HohhotRuichengTechnologyCoLtdMember heat:EquityInterestPurchaseAgreementMember 2013-12-30 0001384135 heat:SmartHeatShenyangEnergyEquipmentCoLtdMember heat:EquityInterestPurchaseAgreementMember 2013-12-30 0001384135 heat:UrumchiXinRuiTechnologyLLCMember heat:EquityInterestPurchaseAgreementMember 2013-12-30 0001384135 heat:PHESegmentSubsidiariesTargetCompaniesMember heat:EquityInterestPurchaseAgreementMember 2013-10-30 2013-10-30 0001384135 heat:UrumchiXinRuiTechnologyLLCMember 2013-12-29 0001384135 heat:PHESegmentSubsidiariesTargetCompaniesMember heat:EquityInterestPurchaseAgreementMember 2014-11-28 2014-11-28 0001384135 heat:PHESegmentSubsidiariesTargetCompaniesMember heat:EquityInterestPurchaseAgreementMember 2014-11-28 0001384135 us-gaap:RevolvingCreditFacilityMember heat:HeatHPIncMember 2013-08-23 2013-08-23 0001384135 heat:SmartHeatGermanyMember 2016-01-20 2016-01-20 0001384135 heat:MidHavenSincerityInternationalResourcesInvestmentCoLtdMidHavenMember 2018-12-31 2018-12-31 0001384135 heat:QingHaiMidHavenBoronLithiumTechnologyCompanyLtdQingHaiTechnologyMember heat:MidHavenSincerityInternationalResourcesInvestmentCoLtdMidHavenMember 2018-12-31 0001384135 heat:MidHavenSincerityInternationalResourcesInvestmentCoLtdMidHavenMember 2018-12-31 0001384135 srt:MinimumMember 2018-12-31 0001384135 srt:MaximumMember 2018-12-31 0001384135 srt:MinimumMember 2018-01-01 2018-12-31 0001384135 srt:MaximumMember 2018-01-01 2018-12-31 0001384135 country:US 2018-12-31 0001384135 country:CN 2018-12-31 0001384135 country:DE 2018-12-31 0001384135 heat:PropertyAndEquipmentUsefulLivesMember 2018-01-01 2018-12-31 0001384135 us-gaap:BuildingMember 2018-01-01 2018-12-31 0001384135 srt:MinimumMember us-gaap:BuildingAndBuildingImprovementsMember 2018-01-01 2018-12-31 0001384135 srt:MaximumMember us-gaap:BuildingAndBuildingImprovementsMember 2018-01-01 2018-12-31 0001384135 srt:MinimumMember us-gaap:VehiclesMember 2018-01-01 2018-12-31 0001384135 srt:MaximumMember us-gaap:VehiclesMember 2018-01-01 2018-12-31 0001384135 us-gaap:OfficeEquipmentMember 2018-01-01 2018-12-31 0001384135 srt:MinimumMember us-gaap:EquipmentMember 2018-01-01 2018-12-31 0001384135 srt:MaximumMember us-gaap:EquipmentMember 2018-01-01 2018-12-31 0001384135 us-gaap:EquipmentMember 2018-01-01 2018-12-31 0001384135 heat:PropertyPlantAndEquipmentNetMember 2018-01-01 2018-12-31 0001384135 us-gaap:BuildingAndBuildingImprovementsMember 2018-12-31 0001384135 us-gaap:BuildingAndBuildingImprovementsMember 2017-12-31 0001384135 us-gaap:MachineryAndEquipmentMember 2018-12-31 0001384135 us-gaap:MachineryAndEquipmentMember 2017-12-31 0001384135 us-gaap:EquipmentMember 2018-12-31 0001384135 us-gaap:EquipmentMember 2017-12-31 0001384135 us-gaap:OfficeEquipmentMember 2018-12-31 0001384135 us-gaap:OfficeEquipmentMember 2017-12-31 0001384135 us-gaap:VehiclesMember 2018-12-31 0001384135 us-gaap:VehiclesMember 2017-12-31 0001384135 heat:NorthtechMember 2018-12-31 0001384135 2014-01-01 2016-12-31 0001384135 heat:QinghaiMiningMember 2018-01-01 2018-12-31 0001384135 heat:QinghaiMiningMember 2018-12-31 0001384135 heat:QinghaiMiningMember 2017-12-31 0001384135 heat:ZhongtianResourcesMember 2018-01-01 2018-12-31 0001384135 heat:ZhongtianResourcesMember 2017-01-01 2017-12-31 0001384135 heat:ZhongtianResourcesMember 2018-12-31 0001384135 heat:ZhongtianResourcesMember 2017-12-31 0001384135 heat:SanXinMember 2018-12-31 0001384135 heat:SanXinMember 2017-12-31 0001384135 heat:DingjiaMember 2018-12-31 0001384135 heat:DingjiaMember 2018-01-01 2018-12-31 0001384135 heat:DingjiaMember 2017-01-01 2017-12-31 0001384135 heat:DingjiaMember 2017-12-31 0001384135 us-gaap:MajorityShareholderMember 2018-12-31 0001384135 us-gaap:MajorityShareholderMember 2017-12-31 0001384135 heat:TechnologyUpgradeForUsingLeanOreToProduceMagnesiumSulfateMember 2018-12-31 0001384135 heat:TechnologyUpgradeForUsingLeanOreToProduceMagnesiumSulfateMember 2017-12-31 0001384135 heat:TechnicalTransformationForBoricAcidAndMagnesiumSulfateProducedFromLowGradeOreMember 2018-12-31 0001384135 heat:TechnicalTransformationForBoricAcidAndMagnesiumSulfateProducedFromLowGradeOreMember 2017-12-31 0001384135 heat:ProjectOfComprehensiveUtilizationOfDaChaiDanSolidBoronMineMember 2018-12-31 0001384135 heat:ProjectOfComprehensiveUtilizationOfDaChaiDanSolidBoronMineMember 2017-12-31 0001384135 heat:TechnologyUpgradeForUsingLeanOreToProduceMagnesiumSulfateMember 2018-01-01 2018-12-31 0001384135 heat:TechnologyUpgradeForUsingLeanOreToProduceMagnesiumSulfateMember 2017-01-01 2017-12-31 0001384135 heat:TechnicalTransformationForBoricAcidAndMagnesiumSulfateProducedFromLowGradeOreMember 2018-01-01 2018-12-31 0001384135 heat:TechnicalTransformationForBoricAcidAndMagnesiumSulfateProducedFromLowGradeOreMember 2017-01-01 2017-12-31 0001384135 heat:ProjectOfComprehensiveUtilizationOfDaChaiDanSolidBoronMineMember 2018-01-01 2018-12-31 0001384135 heat:ProjectOfComprehensiveUtilizationOfDaChaiDanSolidBoronMineMember 2017-01-01 2017-12-31 0001384135 heat:ProjectOfProductionOfHighPurityBoricAcidFromLeanOreMember 2018-01-01 2018-12-31 0001384135 heat:ProjectOfProductionOfHighPurityBoricAcidFromLeanOreMember 2017-01-01 2017-12-31 0001384135 heat:NorthtechMember 2018-06-14 0001384135 srt:MinimumMember heat:NorthtechMember 2018-06-14 0001384135 srt:MaximumMember heat:NorthtechMember 2018-06-14 0001384135 us-gaap:RevolvingCreditFacilityMember 2012-07-27 2012-07-27 0001384135 us-gaap:RevolvingCreditFacilityMember 2012-12-21 0001384135 us-gaap:RevolvingCreditFacilityMember 2013-06-25 2013-06-25 0001384135 us-gaap:RevolvingCreditFacilityMember 2013-09-01 2013-09-30 0001384135 us-gaap:RevolvingCreditFacilityMember 2014-03-27 2014-03-27 0001384135 us-gaap:RevolvingCreditFacilityMember 2014-03-27 0001384135 us-gaap:RevolvingCreditFacilityMember 2014-07-14 2014-07-14 0001384135 us-gaap:RevolvingCreditFacilityMember 2014-07-14 0001384135 us-gaap:RevolvingCreditFacilityMember 2014-07-22 2014-07-22 0001384135 us-gaap:RevolvingCreditFacilityMember 2014-07-22 0001384135 us-gaap:RevolvingCreditFacilityMember heat:LoanExtensionFeeMember 2015-12-28 2015-12-28 0001384135 us-gaap:RevolvingCreditFacilityMember heat:PrincipalMember 2015-12-28 2015-12-28 0001384135 us-gaap:RevolvingCreditFacilityMember 2015-12-28 2015-12-28 0001384135 us-gaap:RevolvingCreditFacilityMember 2015-12-28 0001384135 us-gaap:RevolvingCreditFacilityMember us-gaap:SeriesAPreferredStockMember 2015-12-28 2015-12-28 0001384135 heat:NorthtechMember heat:HeatHPIncMember 2018-01-01 2018-12-31 0001384135 heat:HeatHPIncMember us-gaap:RevolvingCreditFacilityMember 2015-12-28 0001384135 us-gaap:RevolvingCreditFacilityMember heat:ConversionOfDebtQuarterlyPaymentMember us-gaap:SeriesAPreferredStockMember 2015-12-28 2015-12-28 0001384135 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember us-gaap:SeriesAPreferredStockMember 2015-12-28 0001384135 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember us-gaap:SeriesAPreferredStockMember 2015-12-28 0001384135 us-gaap:RevolvingCreditFacilityMember us-gaap:SeriesAPreferredStockMember 2015-12-28 0001384135 us-gaap:RevolvingCreditFacilityMember 2016-07-31 0001384135 us-gaap:RevolvingCreditFacilityMember 2016-07-31 2016-07-31 0001384135 heat:NorthtechMember 2018-06-14 2018-06-14 0001384135 heat:NorthtechMember 2018-12-28 2018-12-28 0001384135 heat:NorthtechMember 2019-03-20 2019-03-20 0001384135 2018-06-14 2019-03-20 0001384135 us-gaap:DomesticCountryMember 2018-12-31 0001384135 us-gaap:DomesticCountryMember 2017-12-31 0001384135 us-gaap:ForeignCountryMember 2018-12-31 0001384135 us-gaap:ForeignCountryMember 2017-12-31 0001384135 2017-12-31 2017-12-31 0001384135 heat:BeijingSmartheatJinhuiEnergyTechnologyCoLtdMember us-gaap:ForeignCountryMember 2018-01-01 2018-12-31 0001384135 heat:SanDekeCoLtdMember us-gaap:ForeignCountryMember 2018-01-01 2018-12-31 0001384135 heat:SmartHeatChinaInvestmentCoLtdMember us-gaap:ForeignCountryMember 2018-01-01 2018-12-31 0001384135 heat:SmartHeatShenyangHeatPumpTechnologyCoLtdMember us-gaap:ForeignCountryMember 2018-01-01 2018-12-31 0001384135 heat:SmartHeatShanghaiTradingCoLtdMember us-gaap:ForeignCountryMember 2018-01-01 2018-12-31 0001384135 heat:SmartHeatHeatExchangeEquipmentCoMember us-gaap:ForeignCountryMember 2018-01-01 2018-12-31 0001384135 heat:MidHavenSincerityInternationalResourcesInvestmentCoLtdMidHavenMember us-gaap:ForeignCountryMember 2018-01-01 2018-12-31 0001384135 heat:QingHaiMidHavenBoronLithiumTechnologyCompanyLtdQingHaiTechnologyMember 2018-01-01 2018-12-31 0001384135 heat:QingHaiMidHavenBoronLithiumTechnologyCompanyLtdQingHaiTechnologyMember 2017-01-01 2017-12-31 0001384135 heat:QingHaiMidHavenBoronLithiumTechnologyCompanyLtdQingHaiTechnologyMember us-gaap:ForeignCountryMember 2018-01-01 2018-12-31 0001384135 us-gaap:ForeignCountryMember 2018-01-01 2018-12-31 0001384135 heat:ForeignInvestedEnterpriseMember 2018-01-01 2018-12-31 0001384135 heat:SmartHeatChinaInvestmentCoLtdMember 2018-12-31 0001384135 heat:DomesticEnterpriseMember 2018-01-01 2018-12-31 0001384135 2017-07-01 2017-09-30 0001384135 heat:SmartHeatChinaInvestmentCoLtdMember 2010-04-07 0001384135 heat:SmartHeatChinaInvestmentCoLtdMember 2010-04-15 2010-04-15 0001384135 heat:MidHavenSincerityInternationalResourcesInvestmentCoLtdMidHavenMember 2018-01-01 2018-12-31 0001384135 srt:ParentCompanyMember 2018-01-01 2018-12-31 0001384135 heat:MidHavenSincerityInternationalResourcesInvestmentCoLtdMidHavenMember 2017-01-01 2017-12-31 0001384135 srt:ParentCompanyMember 2017-01-01 2017-12-31 iso4217:USD iso4217:USD xbrli:shares xbrli:shares xbrli:pure iso4217:CNY iso4217:EUR 163145 0 512380 524932 111473 50504 154719 0 113705 125744 0 2350061 1735374 134505 2790796 3185746 1749060 2148830 1662847 1746572 3411907 3895402 6202703 7081148 1172001 1432072 1151253 381160 6698604 458196 228547 84261 310209 0 9560614 2355689 1504400 1774510 11065014 4130199 185968 106002 -7645727 1346346 780682 0 -11951 146579 1828717 1352022 -4862311 2950949 6202703 7081148 0.001 0.001 500000000 500000000 185968370 106001971 185968370 106001971 6029147 7265955 5147641 6096248 881506 1169707 294892 206290 254865 363189 549757 569479 331749 600228 8183 24741 237252 39989 229069 15248 560818 615476 84123 92321 476695 523155 158530 -135776 -318165 -658931 106221057 106001971 0.00 0.00 106001971 106002 1346346 10803 828867 2292018 523155 135776 135776 106001971 106002 1346346 146579 1352022 79966399 -79966 8992073 -780682 8131425 476695 -158530 -158530 185968370 185968 -7645727 780682 -11951 1828717 476695 523155 322486 279283 -191918 -39989 67984 -168881 -54869 18767 1621680 -648426 -1111467 -143321 -376214 32758 11873 -236489 128718 -3288 -2374622 1210649 163145 0 2901 411751 160244 -411751 2377523 -798898 2377523 -798898 163145 0 0 0 0 0 0 Smartheat Inc. 10-K --12-31 true false false false 185986370 0 false 0001384135 Yes No Non-accelerated Filer No 2018 FY 2018-12-31 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>1. ORGANIZATION AND DESCRIPTION OF BUSINESS</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">SmartHeat Inc., formerly known as Pacific Goldrim Resources, Inc. (the &#x201c;Company&#x201d; or &#x201c;SmartHeat&#x201d;), was incorporated on August 4, 2006, in the State of Nevada and had little or no operations. On April 14, 2008, the Company changed its name to SmartHeat Inc. and acquired the equity interests in Taiyu, at that time a developer of plate heat exchangers (&#x201c;PHEs&#x201d;) and PHE Units in China.&#xa0; Taiyu was formed in July 2002 under the laws of China and is headquartered in Shenyang City, Liaoning Province, China.&#xa0; The Company, through its operating subsidiaries in China and Germany, formerly designed, manufactured, sold PHEs, PHE Units, temperature sensors, valves and automated control systems, heat meters and heat pumps for use in commercial and residential buildings until the sale of certain of its subsidiaries effective December 31, 2014.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On August 23, 2013, the Company formed two new wholly-owned subsidiaries in the State of Nevada, Heat HP Inc., and HEAT PHE Inc.&#xa0;On the same date, the Company&#x2019;s United States (&#x201c;US&#x201d;) parent entered into Assignment Agreements with Heat HP Inc. and Heat PHE Inc., respectively. Under the Assignment Agreements, the Company transferred 100% of its right, title and interest in certain subsidiaries to Heat HP Inc. and Heat PHE Inc. The reorganization was performed so the Company&#x2019;s subsidiaries would be organized along their respective operating segments with Heat HP holding those subsidiaries that operated in the heat pumps and related products segment and Heat PHE holding those subsidiaries that operated in the plate heating equipment, meters and related products segment.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">After the assignment, Heat HP Inc. owned 100% of SmartHeat (China) Investment Co., Ltd. (&#x201c;SmartHeat Investment&#x201d;), SmartHeat (Shanghai) Trading Co., Ltd. (&#x201c;SmartHeat Trading&#x201d;), Beijing SmartHeat Jinhui Energy Technology Co., Ltd. (&#x201c;Jinhui&#x201d;), SmartHeat Deutschland GmbH (&#x201c;SmartHeat Germany&#x201d;), and 98.8% of SmartHeat (Shenyang) Heat Pump Technology Co., Ltd. (&#x201c;SmartHeat Pump&#x201d;).</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">After the assignment, Heat PHE Inc. owned 100% of SmartHeat Taiyu (Shenyang) Energy Technology Co., Ltd. (&#x201c;Taiyu&#x201d;), SanDeKe Co., Ltd., (&#x201c;SanDeKe&#x201d;), SmartHeat Siping Beifang Energy Technology Co., Ltd. (&#x201c;SmartHeat Siping&#x201d;), SmartHeat (Shenyang) Energy Equipment Co., Ltd. (&#x201c;SmartHeat Energy&#x201d;), and 51% of Hohhot Ruicheng Technology Co., Ltd. (&#x201c;Ruicheng&#x201d;).</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On August 23, 2013, the Company entered into a Stock Pledge Agreement with Northtech Holdings Inc. (&#x201c;Northtech&#x201d;).&#xa0;The Company delivered share certificates to Northtech representing 55% of Heat HP Inc. and Heat PHE Inc. to perfect the security interest in each of the Company&#x2019;s directly and wholly-owned subsidiaries granted to Northtech as collateral security for all of the obligations of the Company to Northtech.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In December 2013, SmartHeat US parent incorporated SmartHeat Heat Exchange Equipment Co. (&#x201c;Heat Exchange&#x201d;) in China with registered capital of $3.00 million for manufacturing and sale of PHE and PHE related products.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On December 30, 2013, the Company, closed the transaction contemplated by the Equity Interest Purchase Agreement (&#x201c;EIPA&#x201d;) dated October 10, 2013, whereby the buyers purchased 40% of the Company&#x2019;s equity interests in the following PHE segment subsidiaries: Taiyu; SmartHeat Siping; SmartHeat Energy; Ruicheng; and XinRui (collectively, the &#x201c;Target Companies&#x201d;). The purchase price was RMB 5 million ($0.82 million). XinRui was 46% owned by SmartHeat US parent prior to the 40% equity interest sale.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On November 28, 2014, the Company entered into an Amended and Restated EIPA, which amended and restated the EIPA dated October 10, 2013 between the Company and the buyers. Under the terms of the Amended EIPA, the buyers agreed to purchase the remaining 60% of the Company&#x2019;s equity interests in the Target Companies effective as of December 31, 2014 (the &#x201c;Closing Date&#x201d;). The purchase price for the remaining 60% consisted of: (i) RMB 8.5 million ($1.4 million) and (ii) the forgiveness of all net indebtedness of $11.75 million owed to the Target Companies by SmartHeat and each of its other subsidiaries as of December 31, 2014 subject to termination provisions as set forth in EIPA.&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The effectiveness of the transaction was subject to the following conditions: (i) approval of its shareholders and (ii) receipt by the Board of Directors (&#x201c;BOD&#x201d; or the &#x201c;Board&#x201d;) of the Company of an opinion that the purchase and sale transaction was fair to the shareholders of SmartHeat from a financial point of view. The parties executed a mutual release to be delivered at the closing which provided, in part, for the target companies to forgive all net indebtedness of $11.75 million from SmartHeat and all of its other subsidiaries. In the event that the conditions were not met prior to December 31, 2014, the consideration and all documents were to be deposited into escrow and released when the conditions were satisfied; provided that if the conditions were not satisfied on or before March 31, 2015, either party was able to terminate the Amended EIPA and the funds and documents were to be returned to the depositing party. The termination deadline of the Amended EIPA was extended to May 15, 2015.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On May 11, 2015, the Company&#x2019;s stockholders approved the sale of all of&#xa0;the remaining interests, constituting 100% of its ownership interests, (the &#x201c;Stock Sale&#x201d;) of certain subsidiaries of the Company as described above, all of the conditions precedents to the Stock Sale were satisfied. The parties executed a mutual release which became effective and provided, in part, that the Target Companies forgave all net indebtedness from SmartHeat and all of its other subsidiaries owed to the Target Companies. The consideration and all documents relating to the transaction were released from escrow upon the satisfaction of the foregoing conditions.&#xa0; The buyers consisted of 25 natural persons, all of whom are PRC citizens, including Wen Sha, Jun Wang and Xudong Wang, managers of the Company&#x2019;s subsidiaries engaged in the PHE segment of its business, and Huajun Ai and Yingkai Wang, the Company&#x2019;s Corporate Secretary and Acting Chief Accountant, respectively.&#xa0;Huajun Ai, Wen Sha, Jun Wang and Xudong Wang are also principals in Northtech.&#xa0;&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On January 20, 2016, SmartHeat Pump entered and closed a Share Purchase Agreement with a series of buyers to sell 85% of the equity shares of SmartHeat Germany for Euro 170,000 ($185,400).&#xa0; The purchase price of Euro 170,000 was returned to the buyers and subsequently paid into SmartHeat Germany as a reserve by the buyers. The buyers are not related parties of the Company. SmartHeat Germany had losses and our management decided to sell at a minimal or no cost due to its higher operating cost.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">During the year ended December 31, 2016, SmartHeat Pump filed for bankruptcy protection in China due to the slowdown of its business. SmartHeat Pump filed bankruptcy documents with the proper authorities in China, and expects the bankruptcy process to last for a few years before obtaining the final approval.&#xa0; Accordingly, the Company reclassified SmartHeat Pump business as a discontinued operation and made an impairment reserve for its assets including accounts receivable, retentions receivable, other receivables, advance to suppliers, inventory, deferred tax assets, fixed assets and intangible assets.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On December 31, 2018 (the "Closing Date"), the Company entered into and closed a Share Exchange Agreement and Plan of Reorganization, as amended on January 24 2019 (the &#x201c;Share Exchange Agreement&#x201d;) with Mid-Heaven Sincerity International Resources Investment Co., Ltd (Mid-heaven BVI) and its shareholders Mao Zhang, Jian Zhang, and Ying Zhao, constituting all of the shareholders of Mid-heaven BVI (the &#x201c;Mid-heaven Shareholders&#x201d;). Pursuant to the terms of the Share Exchange Agreement, the shareholders of Mid-Heaven BVI delivered all of the issued and outstanding shares of capital stock of Mid-Heaven BVI to SmartHeat, in exchange for the issuance of 106,001,971 shares of SmartHeat&#x2019;s Common Stock. Mid-heaven BVI, through two subsidiaries, Qinghai Mid-Heaven Sincerity Technology Co., Ltd (&#x201c;Sincerity&#x201d;) and Qinghai Mid-Heaven Sincerity Salt-Lake R&amp;D Co., Ltd (&#x201c;Salt-Lake&#x201d;) owns 100% of Qing Hai Mid-Heaven Boron &amp; Lithium Technology Company, Ltd. (&#x201c;Qinghai Technology&#x201d;).</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Acquisition was structured as a tax-free reorganization. As a result of the share exchange agreement, Mid-heaven BVI&#x2019;s shareholders own approximately 57% of the combined company.&#xa0;&#xa0;For accounting purposes, the transaction will be accounted for as a reverse acquisition of the Company by Mid-heaven BVI.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The main operating entity, Qinghai Technology was incorporated on December 18, 2018. The business of Qinghai Technology was carved out of the business of Qinghai Zhongtian Boron &amp; Litium Mining Co., Ltd (&#x201c;Qinghai Mining&#x201d;) on December 20, 2018. Qinghai Mining was founded on March 6, 2001 and engaged in manufacture and wholesale of boric acid and related compounds for industrial and consumer usage. Qinghai Technology obtains its raw material minerals exclusively from Qinghai Mining and currently processes boric acid by crushing and processing ore.</p><br/></div> 2 1.00 1.00 1.00 1.00 0.988 1.00 1.00 0.51 0.55 3000000 0.40 0.40 0.40 0.40 5000000 820000 0.46 On November 28, 2014, the Company entered into an Amended and Restated EIPA, which amended and restated the EIPA dated October 10, 2013 between the Company and the buyers. Under the terms of the Amended EIPA, the buyers agreed to purchase the remaining 60% of the Company&#x2019;s equity interests in the Target Companies effective as of December 31, 2014 (the &#x201c;Closing Date&#x201d;). The purchase price for the remaining 60% consisted of: (i) RMB 8.5 million ($1.4 million) and (ii) the forgiveness of all net indebtedness of $11.75 million owed to the Target Companies by SmartHeat and each of its other subsidiaries as of December 31, 2014 subject to termination provisions as set forth in EIPA.&#xa0; 0.60 8500000 1400000 11750000 1.00 25 0.85 170000 185400 106001971 2 1.00 0.57 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Basis of Presentation</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The consolidated financial statements (&#x201c;CFS&#x201d;) were prepared in accordance with accounting principles generally accepted in the United States of America (&#x201c;US GAAP&#x201d;).</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Principles of Consolidation</b>&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">For the year ended December 31, 2018, the accompanying CFS include the accounts of SmartHeat&#x2019;s US parent, and its subsidiaries Heat HP and Heat PHE, and their subsidiaries SanDeKe, Jinhui, SmartHeat Investment, SmartHeat Trading, SmartHeat Pump, and Heat Exchange; and Mid-heaven BVI and its subsidiaries, Sincerity, Salt-Lake and Qinghai Technology, which are collectively referred to as the &#x201c;Company.&#x201d; For the year ended December 31, 2017, the accompanying CFS consist of the accounts of Mid-heaven BVI and its subsidiaries, Sincerity, Salt-Lake and Qinghai Technology as a result of reverse merger of SmartHeat with Mid-heaven BVI. All significant intercompany accounts and transactions were eliminated in consolidation.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Noncontrolling Interest</b>&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company follows Financial Accounting Standards Board&#x2019;s (&#x201c;FASB&#x201d;) Accounting Standards Codification (&#x201c;ASC&#x201d;) Topic 810,<i>&#xa0;&#x201c;Consolidation,&#x201d;</i>&#xa0;which established new standards governing the accounting for and reporting of noncontrolling interests (&#x201c;NCIs&#x201d;) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs, previously referred to as minority interests, be treated as a separate component of equity, not as a liability, as was previously the case, that increases and decreases in the parent&#x2019;s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance. This standard also required changes to certain presentation and disclosure requirements. Losses attributable to the NCI in a subsidiary may exceed the NCI&#x2019;s interests in the subsidiary&#x2019;s equity. The excess attributable to the NCI is attributed to those interests. The NCI shall continue to be attributed its share of losses even if that attribution results in a deficit NCI balance.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Use of Estimates</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In preparing the financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Cash and Equivalents</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.&#xa0;&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The following table presents in US dollars (&#x201c;USD&#x201d;) the amount of cash and equivalents held by the Company as of December 31, 2018, based on the jurisdiction of deposit. The Company&#x2019;s US parent holds cash and equivalents in US bank accounts denominated in USD.</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2169" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2170" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>United States</b></b></p> </td> <td id="new_id-2171" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2172" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2173" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>China</b></b></p> </td> <td id="new_id-2174" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2175" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2176" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Total</b></b></p> </td> <td id="new_id-2177" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 55%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">December 31, 2018</p> </td> <td id="new_id-2178" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2179" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2180" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2181" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2182" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2183" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2184" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">163,145</td> <td id="new_id-2185" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2186" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2187" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2188" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">163,145</td> <td id="new_id-2189" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Accounts and Retentions Receivable, net</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Based on historical collection activity, the Company had allowances of $1.78 million and $0 at December 31, 2018 and 2017, respectively.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">At December 31, 2018 and 2017, the Company had retentions receivable from customers for product quality assurance of $0.14 million and $0, respectively. The retention rate varied from 5% to 20% of the sales price with variable terms from three to 24 months depending on the shipping date, and for PHE Units, the customer acceptance date of the products and the number of heating seasons that the warranty period covers. The Company had allowances for these retentions of $0.14 million and $0 at December 31, 2018 and 2017, respectively.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Advances to Suppliers, net</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company makes advances to certain vendors to purchase raw material, tools and equipment for production. The advances are interest-free and unsecured. As of December 31, 2018 and 2017, the Company had allowances for advances to suppliers of $2.16 million and $0, respectively.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Inventories, net</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Inventories are stated at the lower of cost or net realizable value with cost determined on a weighted-average basis. Management compares the cost of inventories with the net realizable value and an allowance is made to write down inventories to market value, if lower.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">In July 2015, the FASB issued ASU 2015-11, &#x201c;Inventory (Topic 330) - Simplifying the Measurement of Inventory,&#x201d; which requires that inventory within the scope of the guidance be measured at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company adopted ASU 2015-11 effective January 1, 2017 and it did not have a material effect on the Company&#x2019;s CFS.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">As part of inventory impairment analysis, the Company performs an evaluation of raw materials stored over one year and not anticipated to be consumed, and an evaluation of potential impairment to the quality of these raw materials. If management anticipates that obsolete raw materials in inventory can be utilized and will be consumed within the next six months through new customer orders or substitute orders, no impairment is recorded. The Company collects information about delayed and canceled contracts and meets with affected customers to discuss their financing situation and their projections of future orders. Finished goods manufactured for delayed and canceled contracts that the Company does not expect to be reinstated and contracts for which the Company has been unable to find substitute customers become impaired. Following the completion of the impairment analysis, the Company had inventory impairment allowance of $6.39 million and $0 as of December 31, 2018 and 2017, respectively.&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Property and Equipment, net</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred; major additions, repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method with a 3% - 10% salvage value and estimated lives as follows:&#xa0;</p><br/><table border="0" cellpadding="0" cellspacing="0" style="width:62.5%;text-indent:0;font-family:'Times New Roman', Times, serif;font-size:10pt;"> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Buildings</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">20 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Structures and improvements</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">4-20 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Vehicles</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">4-8 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Office equipment</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">5 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Production equipment</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">3-10 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Equipment upgrade</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">5 years</p> </td> </tr> </table><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Depreciation of plant, property and equipment attributable to manufacturing is capitalized as part of inventories, and expensed to cost of goods sold when inventories are sold.&#xa0;</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Impairment of Long-Lived Assets</b></p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Long-lived assets, which include tangible assets, such as property and equipment, goodwill and other intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable, but at least annually.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized based on the excess of the carrying amount over the fair value (&#x201c;FV&#x201d;) of the assets. FV generally is determined using the asset&#x2019;s expected future discounted cash flows or market value, if readily determinable.&#xa0;Based on its review, the Company believes that, as of December 31, 2018 and 2017, there was no significant impairments of its long-lived assets.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Warranties</b></p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The Company offers all customers warranties on its products for one or two heating seasons depending on the terms negotiated. The Company accrues for warranty costs based on estimates of the costs that may be incurred under its warranty obligations. The warranty expense and related accrual is included in the Company&#x2019;s selling expenses and other payables respectively, and is recorded when revenue is recognized. Factors that affect the Company&#x2019;s warranty liability include the number of units sold, its estimates of anticipated rates of warranty claims, costs per claim and estimated support labor costs and the associated overhead. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. However, the warranty is for the Company&#x2019;s PHE business, which had&#xa0;minimum operations as of December 31, 2018.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Research and Development Costs</b></p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Research and development (&#x201c;R&amp;D&#x201d;) costs are expensed as incurred and included in general and administrative (&#x201c;G&amp;A&#x201d;) expenses. These costs primarily consist of cost of materials used, salaries paid for the Company&#x2019;s development department and fees paid to third parties. R&amp;D costs for the years ended December 31, 2018 and 2017 were $44,320 and $57,904, respectively.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Income Taxes</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The Company follows ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Under the provisions of ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income.&#xa0; At December 31, 2018 and 2017, the Company did not take any uncertain positions that would necessitate recording a tax related liability.&#xa0;</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Revenue Recognition</b></p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">In May 2014 the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry specific guidance. This new standard requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB subsequently issued the following amendments to ASU No. 2014-09 that have the same effective date and transition date: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Company adopted these amendments with ASU 2014-09 (collectively, the new revenue standards).</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The new revenue standards became effective for the Company on January 1, 2018, and were adopted using the modified retrospective method. The adoption of the new revenue standards as of January 1, 2018 did not change the Company&#x2019;s revenue recognition as the majority of its revenues continue to be recognized when the customer takes control of its product. As the Company did not identify any accounting changes that impacted the amount of reported revenues with respect to its product revenues, no adjustment to retained earnings was required upon adoption.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Under the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Revenues from product sales are recognized when the customer obtains control of the Company&#x2019;s product, which occurs at a point in time, typically upon delivery to the customer. Sales and purchases are recorded net of VAT collected and paid as the Company acts as an agent for the government. VAT taxes are not affected by the income tax holiday.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Deferred Income</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Deferred income consists primarily of government grants and subsidies for supporting the Company&#x2019;s technology innovation and transformation of boric acid, lithium and magnesium sulfate projects. The Company uses most of the subsidies to purchase machinery and equipment. Deferred income is amortized to revenue (other income) over the life of the assets for which the grant and subsidy was used for. Subsidies for declared project fund require government inspection to ensure proper use of the funds for the designated project.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>Cost of Sales</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Cost of sales (&#x201c;COS&#x201d;) consists primarily of material costs and direct labor and manufacturing overhead attributable to the production of the products.&#xa0;Write-down of inventory to lower of cost or net realizable value is also recorded in COS.&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Advances from Customers</b><b> (</b><b>U</b><b>nearned </b><b>R</b><b>evenue)</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company records payments received from customers in advance of their orders as advance from customers account. These orders normally are delivered within a reasonable period of time based upon contract terms and customer demand.&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Concentration of Credit Risk</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Cash includes cash on hand and demand deposits in accounts maintained within China. Balances at financial institutions within China are not covered by insurance. The Company has not experienced any losses in such accounts.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Certain other financial instruments, which subject the Company to concentration of credit risk, consist of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of its customers&#x2019; financial condition and customer payment practices to minimize collection risk on accounts receivable.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The operations of the Company are located primarily in China. Accordingly, the Company&#x2019;s business, financial condition and results of operations may be influenced by the political, economic and legal environments in China, as well as by the general state of the PRC economy.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Statement of Cash Flows</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In accordance with FASB ASC Topic 230,&#xa0;<i>&#x201c;Statement of Cash Flows,&#x201d;</i>&#xa0;cash flows from the Company&#x2019;s operations are calculated based upon the local currencies. As a result, amounts shown on the statement of cash flows may not necessarily agree with changes in the corresponding asset and liability on the balance sheet. In addition, cash from operations, financing and investing activities are net of the effect of the reverse merger described in Note 1.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Basic and Diluted Earnings (Loss) per Share (EPS)</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Basic EPS is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted EPS are based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to have been exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Foreign Currency Translation and Comprehensive Income (Loss)</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The accounts of the US parent company are maintained in USD. The functional currency of the Company&#x2019;s China subsidiaries is the Chinese Yuan Renminbi (&#x201c;RMB&#x201d;). The accounts of the China subsidiaries were translated into USD in accordance with FASB ASC Topic 830,&#xa0;<i>&#x201c;Foreign Currency Matters.</i>&#x201d; According to FASB ASC Topic 830, all assets and liabilities were translated at the exchange rate on the balance sheet date, stockholders&#x2019; equity was translated at the historical rates and statement of operations items were translated at the&#xa0;average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with FASB ASC Topic 220,&#xa0;<i>&#x201c;Comprehensive Income.&#x201d;</i></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Fair Value (&#x201c;FV&#x201d;) of Financial Instruments</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Certain of the Company&#x2019;s financial instruments, including cash and equivalents, accrued liabilities and accounts payable, carrying amounts approximate their FV due to their short maturities. FASB ASC Topic 825, &#x201c;Financial Instruments,&#x201d; requires disclosure of the FV of financial instruments held by the Company. The carrying amounts reported in the balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their FV because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Fair Value Measurements and Disclosures</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">ASC Topic 820, &#x201c;Fair Value Measurements and Disclosures,&#x201d; defines FV, and establishes a three-level valuation hierarchy for disclosures of FV measurement that enhances disclosure requirements for FV measures. The three levels are defined as follow:</p><br/><table border="0" cellpadding="0" cellspacing="0" style="width:100%;text-indent:0;font-family:'Times New Roman', Times, serif;font-size:10pt;"> <tr> <td style="vertical-align:top;width:3.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#xa0;&#xa0;</p> </td> <td style="vertical-align:top;width:3.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#x25cf;</p> </td> <td style="vertical-align:top;width:92.3%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.</p> </td> </tr> <tr> <td style="vertical-align:top;width:3.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#xa0;&#xa0;</p> </td> <td style="vertical-align:top;width:3.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#x25cf;</p> </td> <td style="vertical-align:top;width:92.3%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</p> </td> </tr> <tr> <td style="vertical-align:top;width:3.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#xa0;&#xa0;</p> </td> <td style="vertical-align:top;width:3.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#x25cf;</p> </td> <td style="vertical-align:top;width:92.3%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Level 3 inputs to the valuation methodology are unobservable and significant to the FV measurement.</p> </td> </tr> </table><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">As of December 31, 2018 and 2017, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV.&#xa0;</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Segment Reporting</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">FASB ASC Topic 280,&#xa0;<i>&#x201c;Segment Reporting,&#x201d;</i>&#xa0;requires use of the &#x201c;management approach&#x201d; model for segment reporting.&#xa0;The management approach&#xa0;model is based on the way a company&#x2019;s management organizes segments within the company for making operating decisions and assessing performance.&#xa0;Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Management determined&#xa0;the Company&#x2019;s operations constitute a single reportable segment in accordance with ASC 280. The Company currently operates in one business and industry segment: manufacture and sale of boric acid.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>New Accounting Pronouncements</b></p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (&#x201c;ROU&#x201d;) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is in the process of evaluating the impact of adoption of this ASU on its CFS.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its CFS.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The amendments are an improvement to U.S. GAAP because they provide guidance for each of the eight issues, thereby reducing the current and potential future diversity in practice. This ASU is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company has adopted the guidance retrospectively to each period presented. The adoption did not have any material effect on the Company&#x2019;s CFS.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This ASU&#xa0;improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. For public business entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The adoption of this ASU did not have a significant impact on the Company&#x2019;s CFS.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In November 2016, the FASB issued ASU No.&#xa0;2016-18, Statement of Cash Flows (Topic&#xa0;230): Restricted Cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for fiscal years beginning after December&#xa0;15, 2017, and interim period within those fiscal years. The Company has adopted the guidance retrospectively to each period presented. The adoption did not have any material effect on the Company&#x2019;s CFS.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In January 2017, the FASB issued ASU No.&#xa0;2017-01, Business Combinations (Topic&#xa0;805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard is effective for fiscal years beginning after December&#xa0;15, 2017, including interim periods within those fiscal years. The Company has adopted the guidance effective January 1, 2018. The Company will evaluate the impact of adopting this standard prospectively upon any transactions of acquisitions or disposals of assets or businesses.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit&#x2019;s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December&#xa0;15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January&#xa0;1, 2017. The Company is currently evaluating the impact of adopting this standard on its CFS.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">In June 2018, the FASB issued ASU 2018-07, "Compensation &#x2014; Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. An entity should apply the requirements of ASC 718 to non-employee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The amendments specify that ASC 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The new guidance is effective for SEC filers for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2019 (i.e., January 1, 2020, for calendar year entities). Early adoption is permitted. The Company is evaluating the effects of the adoption of this guidance and currently believes it will impact the accounting of the share-based awards granted to non-employees.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>SEC Disclosure Update and Simplification</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In August 2018, the SEC issued Securities Act Release No. 33-10532 that amends certain disclosure requirements, including extending to interim periods the annual requirement to disclose changes in stockholders&#x2019; equity. Under the new requirements, registrants must now analyze changes in stockholders&#x2019; equity, in the form of a reconciliation, for the current and comparative year-to-date interim periods, with subtotals for each interim period. The final rule was effective in November 2018. The Company adopted the final rule and included a reconciliation of the changes in stockholders' equity in its Form 10-Q for the quarter that is after the year ending December 31, 2018.</p><br/></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Basis of Presentation</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The consolidated financial statements (&#x201c;CFS&#x201d;) were prepared in accordance with accounting principles generally accepted in the United States of America (&#x201c;US GAAP&#x201d;).</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Principles of Consolidation</b>&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">For the year ended December 31, 2018, the accompanying CFS include the accounts of SmartHeat&#x2019;s US parent, and its subsidiaries Heat HP and Heat PHE, and their subsidiaries SanDeKe, Jinhui, SmartHeat Investment, SmartHeat Trading, SmartHeat Pump, and Heat Exchange; and Mid-heaven BVI and its subsidiaries, Sincerity, Salt-Lake and Qinghai Technology, which are collectively referred to as the &#x201c;Company.&#x201d; For the year ended December 31, 2017, the accompanying CFS consist of the accounts of Mid-heaven BVI and its subsidiaries, Sincerity, Salt-Lake and Qinghai Technology as a result of reverse merger of SmartHeat with Mid-heaven BVI. All significant intercompany accounts and transactions were eliminated in consolidation.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Noncontrolling Interest</b>&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company follows Financial Accounting Standards Board&#x2019;s (&#x201c;FASB&#x201d;) Accounting Standards Codification (&#x201c;ASC&#x201d;) Topic 810,<i>&#xa0;&#x201c;Consolidation,&#x201d;</i>&#xa0;which established new standards governing the accounting for and reporting of noncontrolling interests (&#x201c;NCIs&#x201d;) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs, previously referred to as minority interests, be treated as a separate component of equity, not as a liability, as was previously the case, that increases and decreases in the parent&#x2019;s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance. This standard also required changes to certain presentation and disclosure requirements. Losses attributable to the NCI in a subsidiary may exceed the NCI&#x2019;s interests in the subsidiary&#x2019;s equity. The excess attributable to the NCI is attributed to those interests. The NCI shall continue to be attributed its share of losses even if that attribution results in a deficit NCI balance.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Use of Estimates</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In preparing the financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Cash and Equivalents</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.&#xa0;&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The following table presents in US dollars (&#x201c;USD&#x201d;) the amount of cash and equivalents held by the Company as of December 31, 2018, based on the jurisdiction of deposit. The Company&#x2019;s US parent holds cash and equivalents in US bank accounts denominated in USD.</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2169" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2170" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>United States</b></b></p> </td> <td id="new_id-2171" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2172" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2173" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>China</b></b></p> </td> <td id="new_id-2174" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2175" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2176" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Total</b></b></p> </td> <td id="new_id-2177" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 55%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">December 31, 2018</p> </td> <td id="new_id-2178" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2179" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2180" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2181" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2182" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2183" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2184" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">163,145</td> <td id="new_id-2185" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2186" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2187" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2188" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">163,145</td> <td id="new_id-2189" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Accounts and Retentions Receivable, net</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Based on historical collection activity, the Company had allowances of $1.78 million and $0 at December 31, 2018 and 2017, respectively.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">At December 31, 2018 and 2017, the Company had retentions receivable from customers for product quality assurance of $0.14 million and $0, respectively. The retention rate varied from 5% to 20% of the sales price with variable terms from three to 24 months depending on the shipping date, and for PHE Units, the customer acceptance date of the products and the number of heating seasons that the warranty period covers. The Company had allowances for these retentions of $0.14 million and $0 at December 31, 2018 and 2017, respectively.</p></div> 1780000 0 140000 0 0.05 0.20 P3M P24M 140000 0 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Advances to Suppliers, net</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company makes advances to certain vendors to purchase raw material, tools and equipment for production. The advances are interest-free and unsecured. As of December 31, 2018 and 2017, the Company had allowances for advances to suppliers of $2.16 million and $0, respectively.</p></div> 2160000 0 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Inventories, net</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Inventories are stated at the lower of cost or net realizable value with cost determined on a weighted-average basis. Management compares the cost of inventories with the net realizable value and an allowance is made to write down inventories to market value, if lower.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">In July 2015, the FASB issued ASU 2015-11, &#x201c;Inventory (Topic 330) - Simplifying the Measurement of Inventory,&#x201d; which requires that inventory within the scope of the guidance be measured at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company adopted ASU 2015-11 effective January 1, 2017 and it did not have a material effect on the Company&#x2019;s CFS.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">As part of inventory impairment analysis, the Company performs an evaluation of raw materials stored over one year and not anticipated to be consumed, and an evaluation of potential impairment to the quality of these raw materials. If management anticipates that obsolete raw materials in inventory can be utilized and will be consumed within the next six months through new customer orders or substitute orders, no impairment is recorded. The Company collects information about delayed and canceled contracts and meets with affected customers to discuss their financing situation and their projections of future orders. Finished goods manufactured for delayed and canceled contracts that the Company does not expect to be reinstated and contracts for which the Company has been unable to find substitute customers become impaired. Following the completion of the impairment analysis, the Company had inventory impairment allowance of $6.39 million and $0 as of December 31, 2018 and 2017, respectively.</p></div> 6390000 0 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Property and Equipment, net</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred; major additions, repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method with a 3% - 10% salvage value and estimated lives as follows:&#xa0;</p><br/><table border="0" cellpadding="0" cellspacing="0" style="width:62.5%;text-indent:0;font-family:'Times New Roman', Times, serif;font-size:10pt;"> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Buildings</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">20 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Structures and improvements</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">4-20 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Vehicles</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">4-8 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Office equipment</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">5 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Production equipment</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">3-10 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Equipment upgrade</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">5 years</p> </td> </tr> </table><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Depreciation of plant, property and equipment attributable to manufacturing is capitalized as part of inventories, and expensed to cost of goods sold when inventories are sold.</p></div> 0.03 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Impairment of Long-Lived Assets</b></p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Long-lived assets, which include tangible assets, such as property and equipment, goodwill and other intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable, but at least annually.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized based on the excess of the carrying amount over the fair value (&#x201c;FV&#x201d;) of the assets. FV generally is determined using the asset&#x2019;s expected future discounted cash flows or market value, if readily determinable.&#xa0;Based on its review, the Company believes that, as of December 31, 2018 and 2017, there was no significant impairments of its long-lived assets.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Warranties</b></p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The Company offers all customers warranties on its products for one or two heating seasons depending on the terms negotiated. The Company accrues for warranty costs based on estimates of the costs that may be incurred under its warranty obligations. The warranty expense and related accrual is included in the Company&#x2019;s selling expenses and other payables respectively, and is recorded when revenue is recognized. Factors that affect the Company&#x2019;s warranty liability include the number of units sold, its estimates of anticipated rates of warranty claims, costs per claim and estimated support labor costs and the associated overhead. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. However, the warranty is for the Company&#x2019;s PHE business, which had&#xa0;minimum operations as of December 31, 2018.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Research and Development Costs</b></p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Research and development (&#x201c;R&amp;D&#x201d;) costs are expensed as incurred and included in general and administrative (&#x201c;G&amp;A&#x201d;) expenses. These costs primarily consist of cost of materials used, salaries paid for the Company&#x2019;s development department and fees paid to third parties. R&amp;D costs for the years ended December 31, 2018 and 2017 were $44,320 and $57,904, respectively.</p></div> 44320 57904 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Income Taxes</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The Company follows ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Under the provisions of ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income.&#xa0; At December 31, 2018 and 2017, the Company did not take any uncertain positions that would necessitate recording a tax related liability.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Revenue Recognition</b></p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">In May 2014 the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry specific guidance. This new standard requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB subsequently issued the following amendments to ASU No. 2014-09 that have the same effective date and transition date: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Company adopted these amendments with ASU 2014-09 (collectively, the new revenue standards).</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The new revenue standards became effective for the Company on January 1, 2018, and were adopted using the modified retrospective method. The adoption of the new revenue standards as of January 1, 2018 did not change the Company&#x2019;s revenue recognition as the majority of its revenues continue to be recognized when the customer takes control of its product. As the Company did not identify any accounting changes that impacted the amount of reported revenues with respect to its product revenues, no adjustment to retained earnings was required upon adoption.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Under the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Revenues from product sales are recognized when the customer obtains control of the Company&#x2019;s product, which occurs at a point in time, typically upon delivery to the customer. Sales and purchases are recorded net of VAT collected and paid as the Company acts as an agent for the government. VAT taxes are not affected by the income tax holiday.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Deferred Income</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Deferred income consists primarily of government grants and subsidies for supporting the Company&#x2019;s technology innovation and transformation of boric acid, lithium and magnesium sulfate projects. The Company uses most of the subsidies to purchase machinery and equipment. Deferred income is amortized to revenue (other income) over the life of the assets for which the grant and subsidy was used for. Subsidies for declared project fund require government inspection to ensure proper use of the funds for the designated project.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>Cost of Sales</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Cost of sales (&#x201c;COS&#x201d;) consists primarily of material costs and direct labor and manufacturing overhead attributable to the production of the products.&#xa0;Write-down of inventory to lower of cost or net realizable value is also recorded in COS.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Advances from Customers</b><b> (</b><b>U</b><b>nearned </b><b>R</b><b>evenue)</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company records payments received from customers in advance of their orders as advance from customers account. These orders normally are delivered within a reasonable period of time based upon contract terms and customer demand.&#xa0;</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Concentration of Credit Risk</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Cash includes cash on hand and demand deposits in accounts maintained within China. Balances at financial institutions within China are not covered by insurance. The Company has not experienced any losses in such accounts.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Certain other financial instruments, which subject the Company to concentration of credit risk, consist of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of its customers&#x2019; financial condition and customer payment practices to minimize collection risk on accounts receivable.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The operations of the Company are located primarily in China. Accordingly, the Company&#x2019;s business, financial condition and results of operations may be influenced by the political, economic and legal environments in China, as well as by the general state of the PRC economy.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Statement of Cash Flows</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In accordance with FASB ASC Topic 230,&#xa0;<i>&#x201c;Statement of Cash Flows,&#x201d;</i>&#xa0;cash flows from the Company&#x2019;s operations are calculated based upon the local currencies. As a result, amounts shown on the statement of cash flows may not necessarily agree with changes in the corresponding asset and liability on the balance sheet. In addition, cash from operations, financing and investing activities are net of the effect of the reverse merger described in Note 1.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Basic and Diluted Earnings (Loss) per Share (EPS)</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Basic EPS is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted EPS are based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to have been exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Foreign Currency Translation and Comprehensive Income (Loss)</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The accounts of the US parent company are maintained in USD. The functional currency of the Company&#x2019;s China subsidiaries is the Chinese Yuan Renminbi (&#x201c;RMB&#x201d;). The accounts of the China subsidiaries were translated into USD in accordance with FASB ASC Topic 830,&#xa0;<i>&#x201c;Foreign Currency Matters.</i>&#x201d; According to FASB ASC Topic 830, all assets and liabilities were translated at the exchange rate on the balance sheet date, stockholders&#x2019; equity was translated at the historical rates and statement of operations items were translated at the&#xa0;average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with FASB ASC Topic 220,&#xa0;<i>&#x201c;Comprehensive Income.&#x201d;</i></p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Fair Value (&#x201c;FV&#x201d;) of Financial Instruments</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Certain of the Company&#x2019;s financial instruments, including cash and equivalents, accrued liabilities and accounts payable, carrying amounts approximate their FV due to their short maturities. FASB ASC Topic 825, &#x201c;Financial Instruments,&#x201d; requires disclosure of the FV of financial instruments held by the Company. The carrying amounts reported in the balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their FV because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Fair Value Measurements and Disclosures</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">ASC Topic 820, &#x201c;Fair Value Measurements and Disclosures,&#x201d; defines FV, and establishes a three-level valuation hierarchy for disclosures of FV measurement that enhances disclosure requirements for FV measures. The three levels are defined as follow:</p><br/><table border="0" cellpadding="0" cellspacing="0" style="width:100%;text-indent:0;font-family:'Times New Roman', Times, serif;font-size:10pt;"> <tr> <td style="vertical-align:top;width:3.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#xa0;&#xa0;</p> </td> <td style="vertical-align:top;width:3.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#x25cf;</p> </td> <td style="vertical-align:top;width:92.3%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.</p> </td> </tr> <tr> <td style="vertical-align:top;width:3.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#xa0;&#xa0;</p> </td> <td style="vertical-align:top;width:3.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#x25cf;</p> </td> <td style="vertical-align:top;width:92.3%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</p> </td> </tr> <tr> <td style="vertical-align:top;width:3.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#xa0;&#xa0;</p> </td> <td style="vertical-align:top;width:3.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#x25cf;</p> </td> <td style="vertical-align:top;width:92.3%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Level 3 inputs to the valuation methodology are unobservable and significant to the FV measurement.</p> </td> </tr> </table><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">As of December 31, 2018 and 2017, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV.</p></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>Segment Reporting</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">FASB ASC Topic 280,&#xa0;<i>&#x201c;Segment Reporting,&#x201d;</i>&#xa0;requires use of the &#x201c;management approach&#x201d; model for segment reporting.&#xa0;The management approach&#xa0;model is based on the way a company&#x2019;s management organizes segments within the company for making operating decisions and assessing performance.&#xa0;Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Management determined&#xa0;the Company&#x2019;s operations constitute a single reportable segment in accordance with ASC 280. The Company currently operates in one business and industry segment: manufacture and sale of boric acid</p></div> 1 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>New Accounting Pronouncements</b></p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (&#x201c;ROU&#x201d;) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is in the process of evaluating the impact of adoption of this ASU on its CFS.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its CFS.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The amendments are an improvement to U.S. GAAP because they provide guidance for each of the eight issues, thereby reducing the current and potential future diversity in practice. This ASU is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company has adopted the guidance retrospectively to each period presented. The adoption did not have any material effect on the Company&#x2019;s CFS.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This ASU&#xa0;improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. For public business entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The adoption of this ASU did not have a significant impact on the Company&#x2019;s CFS.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In November 2016, the FASB issued ASU No.&#xa0;2016-18, Statement of Cash Flows (Topic&#xa0;230): Restricted Cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for fiscal years beginning after December&#xa0;15, 2017, and interim period within those fiscal years. The Company has adopted the guidance retrospectively to each period presented. The adoption did not have any material effect on the Company&#x2019;s CFS.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In January 2017, the FASB issued ASU No.&#xa0;2017-01, Business Combinations (Topic&#xa0;805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard is effective for fiscal years beginning after December&#xa0;15, 2017, including interim periods within those fiscal years. The Company has adopted the guidance effective January 1, 2018. The Company will evaluate the impact of adopting this standard prospectively upon any transactions of acquisitions or disposals of assets or businesses.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit&#x2019;s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December&#xa0;15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January&#xa0;1, 2017. The Company is currently evaluating the impact of adopting this standard on its CFS.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">In June 2018, the FASB issued ASU 2018-07, "Compensation &#x2014; Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. An entity should apply the requirements of ASC 718 to non-employee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The amendments specify that ASC 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The new guidance is effective for SEC filers for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2019 (i.e., January 1, 2020, for calendar year entities). Early adoption is permitted. The Company is evaluating the effects of the adoption of this guidance and currently believes it will impact the accounting of the share-based awards granted to non-employees.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>SEC Disclosure Update and Simplification</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In August 2018, the SEC issued Securities Act Release No. 33-10532 that amends certain disclosure requirements, including extending to interim periods the annual requirement to disclose changes in stockholders&#x2019; equity. Under the new requirements, registrants must now analyze changes in stockholders&#x2019; equity, in the form of a reconciliation, for the current and comparative year-to-date interim periods, with subtotals for each interim period. The final rule was effective in November 2018. The Company adopted the final rule and included a reconciliation of the changes in stockholders' equity in its Form 10-Q for the quarter that is after the year ending December 31, 2018.</p></div> <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> The following table presents in US dollars (&#x201c;USD&#x201d;) the amount of cash and equivalents held by the Company as of December 31, 2018, based on the jurisdiction of deposit. The Company&#x2019;s US parent holds cash and equivalents in US bank accounts denominated in USD.<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2169" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2170" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>United States</b></b></p> </td> <td id="new_id-2171" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2172" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2173" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>China</b></b></p> </td> <td id="new_id-2174" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2175" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2176" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Total</b></b></p> </td> <td id="new_id-2177" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 55%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">December 31, 2018</p> </td> <td id="new_id-2178" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2179" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2180" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2181" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2182" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2183" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2184" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">163,145</td> <td id="new_id-2185" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2186" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2187" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2188" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">163,145</td> <td id="new_id-2189" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 0 163145 163145 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred; major additions, repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method with a 3% - 10% salvage value and estimated lives as follows:<br /><br /><table border="0" cellpadding="0" cellspacing="0" style="width:62.5%;text-indent:0;font-family:'Times New Roman', Times, serif;font-size:10pt;"> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Buildings</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">20 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Structures and improvements</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">4-20 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Vehicles</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">4-8 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Office equipment</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">5 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Production equipment</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">3-10 years</p> </td> </tr> <tr> <td style="vertical-align:top;width:46.8%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Equipment upgrade</p> </td> <td style="vertical-align:top;width:53.2%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">5 years</p> </td> </tr> </table></div> P20Y P4Y P20Y P4Y P8Y P5Y P3Y P10Y P5Y <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>3. INVENTORIES, NET</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Inventories at December 31, 2018 and 2017, respectively, were as follows:&#xa0;</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2190" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2191" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b><b>2018</b></b></b></p> </td> <td id="new_id-2192" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2193" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2194" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b><b>2017</b></b></b></p> </td> <td id="new_id-2195" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Raw materials</p> </td> <td id="new_id-2196" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2197" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2198" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,010,879</td> <td id="new_id-2199" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2200" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2201" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2202" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">62,612</td> <td id="new_id-2203" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Finished goods</p> </td> <td id="new_id-2204" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2205" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2206" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,118,731</td> <td id="new_id-2207" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2208" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2209" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2210" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">71,893</td> <td id="new_id-2211" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total</p> </td> <td id="new_id-2212" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2213" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2214" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">8,129,610</td> <td id="new_id-2215" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2216" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2217" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2218" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">134,505</td> <td id="new_id-2219" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less: inventory impairment allowance</p> </td> <td id="new_id-2220" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2221" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2222" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(6,394,236</td> <td id="new_id-2223" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-2224" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2225" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2226" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2227" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Inventories, net</p> </td> <td id="new_id-2228" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2229" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2230" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">1,735,374</td> <td id="new_id-2231" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2232" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2233" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2234" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">134,505</td> <td id="new_id-2235" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><br/></div> <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> Inventories at December 31, 2018 and 2017, respectively, were as follows:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2190" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2191" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b><b>2018</b></b></b></p> </td> <td id="new_id-2192" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2193" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2194" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b><b>2017</b></b></b></p> </td> <td id="new_id-2195" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Raw materials</p> </td> <td id="new_id-2196" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2197" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2198" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,010,879</td> <td id="new_id-2199" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2200" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2201" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2202" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">62,612</td> <td id="new_id-2203" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Finished goods</p> </td> <td id="new_id-2204" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2205" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2206" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,118,731</td> <td id="new_id-2207" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2208" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2209" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2210" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">71,893</td> <td id="new_id-2211" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total</p> </td> <td id="new_id-2212" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2213" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2214" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">8,129,610</td> <td id="new_id-2215" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2216" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2217" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2218" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">134,505</td> <td id="new_id-2219" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less: inventory impairment allowance</p> </td> <td id="new_id-2220" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2221" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2222" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(6,394,236</td> <td id="new_id-2223" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-2224" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2225" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2226" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2227" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Inventories, net</p> </td> <td id="new_id-2228" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2229" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2230" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">1,735,374</td> <td id="new_id-2231" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2232" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2233" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2234" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">134,505</td> <td id="new_id-2235" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 7010879 62612 1118731 71893 8129610 134505 6394236 0 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>4. NOTES RECEIVABLE &#x2013; BANK ACCEPTANCES</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The Company sold goods to its customers and received notes (bank acceptances) from them in lieu of payments. These bank acceptances were issued by customers to the Company and would be honored by the applicable bank. The Company may hold a bank acceptance until the maturity for full payment, have the bank acceptance cashed out from the bank at a discount at an earlier date, or transfer the bank acceptance to its vendors in lieu of payment for their own obligations. As of December 31, 2018 and 2017, the Company had notes receivable of $111,473 and $50,504, respectively; and at December 31, 2018, the Company had $1.68 million notes receivable that were endorsed to its vendors, in lieu of payment. The Company was contingently liable for these notes receivable until it is paid or matured. As of this report date, $1.60 million notes receivable was either matured or paid.</p><br/></div> 1680000 1600000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>5. OTHER RECEIVABLES (NET), PREPAYMENTS AND DEPOSITS</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other receivables, prepayments and deposits consisted of the following at December 31, 2018:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 81%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Advances to unrelated third-party companies</p> </td> <td id="new_id-2236" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2237" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2238" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,471,902</td> <td id="new_id-2239" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Advances to employees</p> </td> <td id="new_id-2240" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2241" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2242" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">327,067</td> <td id="new_id-2243" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other</p> </td> <td id="new_id-2244" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2245" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2246" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">208,671</td> <td id="new_id-2247" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total</p> </td> <td id="new_id-2248" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2249" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2250" style="width: 16%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4,007,640</td> <td id="new_id-2251" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less: allowances</p> </td> <td id="new_id-2252" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2253" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2254" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(3,852,921</td> <td id="new_id-2255" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other receivables (net), prepayments and deposits</p> </td> <td id="new_id-2256" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2257" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2258" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">154,719</td> <td id="new_id-2259" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Advances to unrelated third-party companies were short-term unsecured advances.&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Advances to employees represented short-term loans to employees and advances for business trips and related expenses, with no interest, payable upon demand.</p><br/></div> <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> Other receivables, prepayments and deposits consisted of the following at December 31, 2018:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 81%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Advances to unrelated third-party companies</p> </td> <td id="new_id-2236" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2237" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2238" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,471,902</td> <td id="new_id-2239" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Advances to employees</p> </td> <td id="new_id-2240" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2241" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2242" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">327,067</td> <td id="new_id-2243" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other</p> </td> <td id="new_id-2244" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2245" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2246" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">208,671</td> <td id="new_id-2247" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total</p> </td> <td id="new_id-2248" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2249" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2250" style="width: 16%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4,007,640</td> <td id="new_id-2251" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less: allowances</p> </td> <td id="new_id-2252" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2253" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2254" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(3,852,921</td> <td id="new_id-2255" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other receivables (net), prepayments and deposits</p> </td> <td id="new_id-2256" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2257" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2258" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">154,719</td> <td id="new_id-2259" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 3471902 327067 208671 4007640 3852921 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>6</b><b>. PROPERTY AND EQUIPMENT, NET</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Property and equipment consisted of the following at December 31, 2018 and 2017, respectively:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2260" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2261" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-2262" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2263" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2264" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-2265" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Structures and improvements</p> </td> <td id="new_id-2266" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2267" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2268" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">457,547</td> <td id="new_id-2269" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2270" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2271" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2272" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">480,585</td> <td id="new_id-2273" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Production equipment</p> </td> <td id="new_id-2274" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2275" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2276" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,374,314</td> <td id="new_id-2277" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2278" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2279" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2280" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">2,614,774</td> <td id="new_id-2281" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Equipment upgrade</p> </td> <td id="new_id-2282" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2283" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2284" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">252,787</td> <td id="new_id-2285" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2286" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2287" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2288" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">265,515</td> <td id="new_id-2289" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Office equipment</p> </td> <td id="new_id-2290" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2291" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2292" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">188,021</td> <td id="new_id-2293" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2294" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2295" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2296" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2297" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Vehicles</p> </td> <td id="new_id-2298" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2299" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2300" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">172,422</td> <td id="new_id-2301" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2302" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2303" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2304" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2305" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total</p> </td> <td id="new_id-2306" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2307" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2308" style="width: 16%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4,445,091</td> <td id="new_id-2309" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2310" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2311" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2312" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,360,874</td> <td id="new_id-2313" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less: impairment of fixed assets</p> </td> <td id="new_id-2314" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2315" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2316" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(189,412</td> <td id="new_id-2317" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-2318" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2319" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2320" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2321" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#xa0;</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less: accumulated depreciation</p> </td> <td id="new_id-2322" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2323" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2324" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(2,506,619</td> <td id="new_id-2325" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-2326" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2327" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2328" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(1,212,044</td> <td id="new_id-2329" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Property and equipment, net</p> </td> <td id="new_id-2330" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2331" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2332" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">1,749,060</td> <td id="new_id-2333" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2334" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2335" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2336" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">2,148,830</td> <td id="new_id-2337" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Depreciation for the years ended December 31, 2018 and 2017 was $322,486 and $279,283, respectively.</p><br/></div> 322486 279283 <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> Property and equipment consisted of the following at December 31, 2018 and 2017, respectively:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2260" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2261" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-2262" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2263" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2264" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-2265" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Structures and improvements</p> </td> <td id="new_id-2266" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2267" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2268" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">457,547</td> <td id="new_id-2269" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2270" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2271" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2272" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">480,585</td> <td id="new_id-2273" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Production equipment</p> </td> <td id="new_id-2274" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2275" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2276" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,374,314</td> <td id="new_id-2277" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2278" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2279" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2280" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">2,614,774</td> <td id="new_id-2281" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Equipment upgrade</p> </td> <td id="new_id-2282" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2283" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2284" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">252,787</td> <td id="new_id-2285" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2286" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2287" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2288" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">265,515</td> <td id="new_id-2289" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Office equipment</p> </td> <td id="new_id-2290" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2291" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2292" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">188,021</td> <td id="new_id-2293" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2294" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2295" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2296" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2297" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Vehicles</p> </td> <td id="new_id-2298" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2299" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2300" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">172,422</td> <td id="new_id-2301" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2302" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2303" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2304" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2305" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total</p> </td> <td id="new_id-2306" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2307" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2308" style="width: 16%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4,445,091</td> <td id="new_id-2309" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2310" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2311" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2312" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,360,874</td> <td id="new_id-2313" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less: impairment of fixed assets</p> </td> <td id="new_id-2314" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2315" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2316" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(189,412</td> <td id="new_id-2317" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-2318" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2319" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2320" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2321" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#xa0;</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less: accumulated depreciation</p> </td> <td id="new_id-2322" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2323" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2324" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(2,506,619</td> <td id="new_id-2325" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-2326" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2327" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2328" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(1,212,044</td> <td id="new_id-2329" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Property and equipment, net</p> </td> <td id="new_id-2330" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2331" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2332" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">1,749,060</td> <td id="new_id-2333" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2334" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2335" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2336" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">2,148,830</td> <td id="new_id-2337" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 457547 480585 3374314 2614774 252787 265515 188021 0 172422 0 4445091 3360874 189412 0 2506619 1212044 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>7</b><b>. CONSTRUCTION IN PROGRESS</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">As of December 31, 2018 and 2017, the Company had construction in progress of $1,662,847 and $1,746,572, respectively. The construction in progress was mainly for Test and Experimental Plant I, which does not have any production currently; the Company intends to&#xa0;transform the plant as a pilot plant for pure boric acid and lithium carbonate production. However, the Company does not have a detailed and committed plan as of this report date.</p><br/></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>8</b><b>. TAXES PAYABLE</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Taxes payable consisted of the following December 31,2018 and 2017, respectively:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2338" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2339" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-2340" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2341" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2342" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-2343" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other</p> </td> <td id="new_id-2344" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2345" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2346" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">53,112</td> <td id="new_id-2347" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2348" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2349" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2350" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">9,483</td> <td id="new_id-2351" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">VAT</p> </td> <td id="new_id-2352" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2353" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2354" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">175,435</td> <td id="new_id-2355" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;">&#xa0;</td> <td id="new_id-2356" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2357" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2358" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">74,778</td> <td id="new_id-2359" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Taxes payable</p> </td> <td id="new_id-2360" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2361" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2362" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">228,547</td> <td id="new_id-2363" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> <td id="new_id-2364" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2365" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2366" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">84,261</td> <td id="new_id-2367" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> </tr> </table><br/></div> <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> Taxes payable consisted of the following December 31,2018 and 2017, respectively:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2338" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2339" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-2340" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2341" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2342" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-2343" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other</p> </td> <td id="new_id-2344" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2345" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2346" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">53,112</td> <td id="new_id-2347" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2348" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2349" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2350" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">9,483</td> <td id="new_id-2351" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">VAT</p> </td> <td id="new_id-2352" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2353" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2354" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">175,435</td> <td id="new_id-2355" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;">&#xa0;</td> <td id="new_id-2356" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2357" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2358" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">74,778</td> <td id="new_id-2359" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Taxes payable</p> </td> <td id="new_id-2360" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2361" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2362" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">228,547</td> <td id="new_id-2363" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> <td id="new_id-2364" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2365" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2366" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">84,261</td> <td id="new_id-2367" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 53112 9483 175435 74778 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>9</b><b>. ACCRUED LIABILITIES AND OTHER PAYABLES</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Accrued liabilities and other payables consisted of the following at December 31, 2018 and 2017, respectively:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2368" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2369" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-2370" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2371" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2372" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-2373" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Advances from third parties</p> </td> <td id="new_id-2374" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2375" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2376" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,120,967</td> <td id="new_id-2377" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2378" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2379" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2380" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2381" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Subsidy payable</p> </td> <td id="new_id-2382" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2383" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2384" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">291,410</td> <td id="new_id-2385" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2386" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2387" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2388" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">306,082</td> <td id="new_id-2389" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other</p> </td> <td id="new_id-2390" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2391" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2392" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">520,613</td> <td id="new_id-2393" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2394" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2395" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2396" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2397" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Accrued expenses</p> </td> <td id="new_id-2398" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2399" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2400" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">2,765,614</td> <td id="new_id-2401" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2402" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2403" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2404" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">152,114</td> <td id="new_id-2405" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total accrued liabilities and other payables</p> </td> <td id="new_id-2406" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2407" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2408" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">6,698,604</td> <td id="new_id-2409" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2410" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2411" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2412" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">458,196</td> <td id="new_id-2413" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Advances from third parties were short term, non-interest-bearing and due on demand.&#xa0;</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">At December 31, 2018, other mainly was for dividend payable to Northtech of $300,000.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">As of December 31, 2018 and 2017, the Company had $291,410 and $306,082, respectively, the government subsidy for Magnesium-rich waste liquid high value utilization project, and was recorded as other payable; the Company completed the project and is currently waiting for the government&#x2019;s inspection, the Company will reclassify the portion of equipment cost of this government subsidy to deferred income and amortize over 10 years, and reclassify the remaining portion of the subsidy as other income once the Company passing the inspection of the project.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">As of December 31, 2018, accrued expenses mainly consisted of accrued property and land rental fee of $2.38 million and accrued payroll of $0.38 million. As of December 31, 2017, accrued expenses mainly consisted of accrued payroll of $0.15 million.</p><br/></div> 300000 291410 2380000 380000 150000 <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> Accrued liabilities and other payables consisted of the following at December 31, 2018 and 2017, respectively:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2368" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2369" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-2370" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2371" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2372" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-2373" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Advances from third parties</p> </td> <td id="new_id-2374" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2375" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2376" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">3,120,967</td> <td id="new_id-2377" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2378" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2379" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2380" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2381" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Subsidy payable</p> </td> <td id="new_id-2382" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2383" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2384" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">291,410</td> <td id="new_id-2385" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2386" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2387" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2388" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">306,082</td> <td id="new_id-2389" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Other</p> </td> <td id="new_id-2390" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2391" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2392" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">520,613</td> <td id="new_id-2393" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2394" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2395" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2396" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2397" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Accrued expenses</p> </td> <td id="new_id-2398" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2399" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2400" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">2,765,614</td> <td id="new_id-2401" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2402" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2403" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2404" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">152,114</td> <td id="new_id-2405" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total accrued liabilities and other payables</p> </td> <td id="new_id-2406" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2407" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2408" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">6,698,604</td> <td id="new_id-2409" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2410" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2411" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2412" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">458,196</td> <td id="new_id-2413" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 3120967 0 291410 306082 520613 2765614 152114 <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"><b>1</b><b>0</b><b>. RELATED PARTY TRANSACTIONS</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Qinghai Technology purchased raw material boron rock from Qinghai Mining (owned by three major shareholders of the Company), and received no-interest short-term advances from Qinghai Mining. As of December 31, 2018 and 2017, total due to Qinghai Mining was $3.88 million and $2.73 million, respectively.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Qinghai Technology used equipment that belongs to Qinghai Province DaChaiDan ZhongTian Resources Development Co., Ltd (&#x201c;Zhongtian Resources&#x201d;, owned by two major shareholders of the Company) for production. The depreciation of these fixed assets had an impact on the production costs of boric acid of the Company, and was included in the Company&#x2019;s cost of sales. The depreciation of these fixed assets for the years ended December 31, 2018 and 2017 was $36,741 and $36,044, respectively. Due to Zhongtian Resources resulting from using its equipment was $0.11 million and $0.07 million at December 31, 2018 and 2017, respectively.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Qinghai Technology purchased raw material from DaChaiDan SanXin Industrial Company Ltd (&#x201c;SanXin&#x201d;). Outstanding payable balance to SanXin at December 31, 2018 and 2017 was $0.13 million and $0.12 million, respectively. SanXin is a non-related party company; however, Qinghai Mining assumed the payables that Qinghai Technology owed to SanXin at December 31, 2018 and 2017 under a Debt Offset Agreement between the Company, Qinghai Mining and SanXin.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Qinghai Technology sold boric acid to Qinghai Dingjia Zhixin Trading Co., Ltd (&#x201c;Dingjia&#x201d;, 90% owned by the son of the Company&#x2019;s major shareholder). For the years ended December 31, 2018 and 2017, the Company&#x2019;s sales to Dingjia was $1.52 million and $4.02 million, respectively. At December 31, 2018 and 2017, outstanding receivables from Dingjia was $4.06 million and $5.28 million, respectively.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Qinghai Technology, Qinghai Mining, Zhongtian Resources and Dingjia entered a Debt Offset Agreement, in which, Qinghai Mining assumed the outstanding payable balance of Qinghai Technology to Zhongtian at December 31, 2018 and 2017, and Qinghai Technology transferred the outstanding receivable balance from Dingjia to Qinghai Mining. With execution of the Debt Offset Agreement, the Company had $54,976 net due to Qinghai Mining at December 31, 2018, and $2,350,061 net due from Dingjia at December 31, 2017.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">In addition, at December 31, 2018, the Company had $255,233 due to another major shareholder of the Company, resulting from the certain of the Company&#x2019;s operating expenses such as legal and audit fees that were paid by this major shareholder on behalf of the Company. This short term advance bore no interest, and payable upon demand.</p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The following table summarized the due from (to) related parties as of December 31, 2018 and 2017, respectively:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2414" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2415" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2018</b></p> </td> <td id="new_id-2416" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2417" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2418" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2017</b></p> </td> <td id="new_id-2419" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 47.1%; border-bottom: thin solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>Related party name</b></p> </td> <td id="new_id-2420" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2421" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2422" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2423" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2424" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2425" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2426" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2427" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 22.9%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Due from</p> </td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Dingjia</p> </td> <td id="new_id-2428" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2429" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2430" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4,058,148</td> <td id="new_id-2431" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2432" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2433" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2434" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">5,277,995</td> <td id="new_id-2435" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Due to</p> </td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Qinghai Mining</p> </td> <td id="new_id-2436" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2437" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2438" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(3,878,896</td> <td id="new_id-2439" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-2440" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2441" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2442" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(2,731,102</td> <td id="new_id-2443" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Due to</p> </td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Zhongtian Resources</p> </td> <td id="new_id-2444" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2445" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2446" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(106,345</td> <td id="new_id-2447" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-2448" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2449" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2450" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(74,490</td> <td id="new_id-2451" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Due to</p> </td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">SanXin (debts assumed by Qinghai Mining)</p> </td> <td id="new_id-2452" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2453" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2454" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(127,883</td> <td id="new_id-2455" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-2456" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2457" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2458" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(122,342</td> <td id="new_id-2459" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Due to</p> </td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">A major shareholder</p> </td> <td id="new_id-2460" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2461" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2462" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">255,233</td> <td id="new_id-2463" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;">&#xa0;</td> <td id="new_id-2464" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2465" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2466" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2467" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="2" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Due from (to), net</p> </td> <td id="new_id-2468" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2469" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2470" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">(310,209</td> <td id="new_id-2471" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">)</td> <td id="new_id-2472" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2473" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2474" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">2,350,061</td> <td id="new_id-2475" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> </tr> </table><br/></div> 3 2 36741 36044 0.90 1520000 4020000 -54976 2350061 255233 <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> The following table summarized the due from (to) related parties as of December 31, 2018 and 2017, respectively:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2414" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2415" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2018</b></p> </td> <td id="new_id-2416" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2417" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2418" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2017</b></p> </td> <td id="new_id-2419" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 47.1%; border-bottom: thin solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>Related party name</b></p> </td> <td id="new_id-2420" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2421" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2422" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2423" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2424" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2425" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2426" style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2427" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 22.9%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Due from</p> </td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Dingjia</p> </td> <td id="new_id-2428" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2429" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2430" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4,058,148</td> <td id="new_id-2431" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2432" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2433" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2434" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">5,277,995</td> <td id="new_id-2435" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Due to</p> </td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Qinghai Mining</p> </td> <td id="new_id-2436" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2437" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2438" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(3,878,896</td> <td id="new_id-2439" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-2440" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2441" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2442" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(2,731,102</td> <td id="new_id-2443" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Due to</p> </td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Zhongtian Resources</p> </td> <td id="new_id-2444" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2445" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2446" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(106,345</td> <td id="new_id-2447" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-2448" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2449" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2450" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(74,490</td> <td id="new_id-2451" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Due to</p> </td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">SanXin (debts assumed by Qinghai Mining)</p> </td> <td id="new_id-2452" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2453" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2454" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(127,883</td> <td id="new_id-2455" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-2456" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2457" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2458" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(122,342</td> <td id="new_id-2459" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Due to</p> </td> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">A major shareholder</p> </td> <td id="new_id-2460" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2461" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2462" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">255,233</td> <td id="new_id-2463" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;">&#xa0;</td> <td id="new_id-2464" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2465" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2466" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2467" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="2" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Due from (to), net</p> </td> <td id="new_id-2468" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2469" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2470" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">(310,209</td> <td id="new_id-2471" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">)</td> <td id="new_id-2472" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2473" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2474" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">2,350,061</td> <td id="new_id-2475" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 4058148 5277995 3878896 2731102 106345 74490 127883 122342 255233 0 -310209 2350061 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>1</b><b>1</b><b>. DEFERRED INCOME </b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Deferred income consisted mainly of the government subsidy to the Company&#x2019;s declared special projects at December 31, 2018 and 2017, respectively:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2476" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-2477" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2018</b></p> </td> <td id="new_id-2478" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2479" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-2480" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2017</b></p> </td> <td id="new_id-2481" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Technology upgrade for using lean ore to produce of magnesium sulfate</p> </td> <td id="new_id-2482" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2483" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2484" style="width: 12%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">146,919</td> <td id="new_id-2485" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2486" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2487" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2488" style="width: 12%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">187,985</td> <td id="new_id-2489" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Technical transformation for boric acid and magnesium sulfate produced from low grade ore</p> </td> <td id="new_id-2490" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2491" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2492" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">46,140</td> <td id="new_id-2493" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2494" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2495" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2496" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">56,115</td> <td id="new_id-2497" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Project of comprehensive utilization of DaChaiDan Solid Boron Mine</p> </td> <td id="new_id-2498" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2499" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2500" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,311,341</td> <td id="new_id-2501" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2502" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2503" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2504" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,530,410</td> <td id="new_id-2505" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Total</p> </td> <td id="new_id-2506" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2507" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2508" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">1,504,400</td> <td id="new_id-2509" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2510" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2511" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2512" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">1,774,510</td> <td id="new_id-2513" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The detail of deferred income for the Company&#x2019;s special projects are as following:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 43%;">&#xa0;</td> <td id="new_id-2514" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&#xa0;</td> <td colspan="2" id="new_id-2515" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>Government </b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>subsidy </b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>amount</b></b></p> </td> <td id="new_id-2516" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&#xa0;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 9%; border-bottom: thin solid rgb(0, 0, 0);"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b>Project </b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b>completion </b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b>date</b></p> </td> <td id="new_id-2517" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&#xa0;</td> <td colspan="2" id="new_id-2518" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>Useful life </b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>in years</b></b></p> </td> <td id="new_id-2519" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&#xa0;</td> <td id="new_id-2520" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&#xa0;</td> <td colspan="2" id="new_id-2521" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>Amortization </b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>in 2017</b></b></p> </td> <td id="new_id-2522" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&#xa0;</td> <td id="new_id-2523" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&#xa0;</td> <td colspan="2" id="new_id-2524" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>Amortization </b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>in 2018</b></b></p> </td> <td id="new_id-2525" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 43%;">&#xa0;</td> <td id="new_id-2526" style="width: 1%;">&#xa0;</td> <td id="new_id-2527" style="width: 1%;">&#xa0;</td> <td id="new_id-2528" style="width: 9%;">&#xa0;</td> <td id="new_id-2529" style="width: 1%;">&#xa0;</td> <td style="width: 9%;">&#xa0;</td> <td id="new_id-2530" style="width: 1%;">&#xa0;</td> <td id="new_id-2531" style="width: 1%;">&#xa0;</td> <td id="new_id-2532" style="width: 9%;">&#xa0;</td> <td id="new_id-2533" style="width: 1%;">&#xa0;</td> <td id="new_id-2534" style="width: 1%;">&#xa0;</td> <td id="new_id-2535" style="width: 1%;">&#xa0;</td> <td id="new_id-2536" style="width: 9%;">&#xa0;</td> <td id="new_id-2537" style="width: 1%;">&#xa0;</td> <td id="new_id-2538" style="width: 1%;">&#xa0;</td> <td id="new_id-2539" style="width: 1%;">&#xa0;</td> <td id="new_id-2540" style="width: 9%;">&#xa0;</td> <td id="new_id-2541" style="width: 1%;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 43%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Technology upgrade for using lean ore to produce magnesium sulfate</p> </td> <td id="new_id-2542" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2543" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2544" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">356,114</td> <td id="new_id-2545" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 9%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">8/1/2013</p> </td> <td id="new_id-2546" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2547" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2548" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">10</td> <td id="new_id-2549" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2550" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2551" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2552" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">32,584</td> <td id="new_id-2553" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2554" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2555" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2556" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">33,246</td> <td id="new_id-2557" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 43%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Technical transformation for boric acid and magnesium sulfate produced from low grade ore</p> </td> <td id="new_id-2558" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2559" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2560" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">81,784</td> <td id="new_id-2561" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 9%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">5/1/2015</p> </td> <td id="new_id-2562" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2563" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2564" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">10</td> <td id="new_id-2565" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2566" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2567" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2568" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,405</td> <td id="new_id-2569" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2570" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2571" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2572" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,556</td> <td id="new_id-2573" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 43%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Project of comprehensive utilization of DaChaiDan Solid Boron Mine</p> </td> <td id="new_id-2574" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2575" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2576" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,536,594</td> <td id="new_id-2577" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 9%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">1/1/2018</p> </td> <td id="new_id-2578" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2579" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2580" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">10</td> <td id="new_id-2581" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2582" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2583" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2584" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2585" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2586" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2587" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2588" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">151,117</td> <td id="new_id-2589" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 43%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Total</p> </td> <td id="new_id-2590" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2591" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2592" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">1,974,491</td> <td id="new_id-2593" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 9%;">&#xa0;</td> <td id="new_id-2594" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2595" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&#xa0;</td> <td id="new_id-2596" style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 9%;">&#xa0;</td> <td id="new_id-2597" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2598" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2599" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2600" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">39,989</td> <td id="new_id-2601" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> <td id="new_id-2602" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2603" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2604" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">191,918</td> <td id="new_id-2605" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> </tr> </table><br/></div> <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> Deferred income consisted mainly of the government subsidy to the Company&#x2019;s declared special projects at December 31, 2018 and 2017, respectively:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2476" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-2477" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2018</b></p> </td> <td id="new_id-2478" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2479" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-2480" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2017</b></p> </td> <td id="new_id-2481" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Technology upgrade for using lean ore to produce of magnesium sulfate</p> </td> <td id="new_id-2482" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2483" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2484" style="width: 12%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">146,919</td> <td id="new_id-2485" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2486" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2487" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2488" style="width: 12%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">187,985</td> <td id="new_id-2489" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Technical transformation for boric acid and magnesium sulfate produced from low grade ore</p> </td> <td id="new_id-2490" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2491" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2492" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">46,140</td> <td id="new_id-2493" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2494" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2495" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2496" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">56,115</td> <td id="new_id-2497" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Project of comprehensive utilization of DaChaiDan Solid Boron Mine</p> </td> <td id="new_id-2498" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2499" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2500" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,311,341</td> <td id="new_id-2501" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2502" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2503" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2504" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,530,410</td> <td id="new_id-2505" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Total</p> </td> <td id="new_id-2506" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2507" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2508" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">1,504,400</td> <td id="new_id-2509" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2510" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2511" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2512" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">1,774,510</td> <td id="new_id-2513" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 146919 187985 46140 56115 1311341 1530410 <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> The detail of deferred income for the Company&#x2019;s special projects are as following:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 43%;">&#xa0;</td> <td id="new_id-2514" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&#xa0;</td> <td colspan="2" id="new_id-2515" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>Government </b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>subsidy </b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>amount</b></b></p> </td> <td id="new_id-2516" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&#xa0;</td> <td style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 9%; border-bottom: thin solid rgb(0, 0, 0);"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b>Project </b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b>completion </b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b>date</b></p> </td> <td id="new_id-2517" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&#xa0;</td> <td colspan="2" id="new_id-2518" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>Useful life </b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>in years</b></b></p> </td> <td id="new_id-2519" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&#xa0;</td> <td id="new_id-2520" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&#xa0;</td> <td colspan="2" id="new_id-2521" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>Amortization </b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>in 2017</b></b></p> </td> <td id="new_id-2522" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&#xa0;</td> <td id="new_id-2523" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&#xa0;</td> <td colspan="2" id="new_id-2524" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>Amortization </b></b></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>in 2018</b></b></p> </td> <td id="new_id-2525" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 43%;">&#xa0;</td> <td id="new_id-2526" style="width: 1%;">&#xa0;</td> <td id="new_id-2527" style="width: 1%;">&#xa0;</td> <td id="new_id-2528" style="width: 9%;">&#xa0;</td> <td id="new_id-2529" style="width: 1%;">&#xa0;</td> <td style="width: 9%;">&#xa0;</td> <td id="new_id-2530" style="width: 1%;">&#xa0;</td> <td id="new_id-2531" style="width: 1%;">&#xa0;</td> <td id="new_id-2532" style="width: 9%;">&#xa0;</td> <td id="new_id-2533" style="width: 1%;">&#xa0;</td> <td id="new_id-2534" style="width: 1%;">&#xa0;</td> <td id="new_id-2535" style="width: 1%;">&#xa0;</td> <td id="new_id-2536" style="width: 9%;">&#xa0;</td> <td id="new_id-2537" style="width: 1%;">&#xa0;</td> <td id="new_id-2538" style="width: 1%;">&#xa0;</td> <td id="new_id-2539" style="width: 1%;">&#xa0;</td> <td id="new_id-2540" style="width: 9%;">&#xa0;</td> <td id="new_id-2541" style="width: 1%;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 43%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Technology upgrade for using lean ore to produce magnesium sulfate</p> </td> <td id="new_id-2542" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2543" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2544" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">356,114</td> <td id="new_id-2545" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 9%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">8/1/2013</p> </td> <td id="new_id-2546" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2547" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2548" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">10</td> <td id="new_id-2549" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2550" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2551" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2552" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">32,584</td> <td id="new_id-2553" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2554" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2555" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2556" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">33,246</td> <td id="new_id-2557" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 43%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Technical transformation for boric acid and magnesium sulfate produced from low grade ore</p> </td> <td id="new_id-2558" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2559" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2560" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">81,784</td> <td id="new_id-2561" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 9%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">5/1/2015</p> </td> <td id="new_id-2562" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2563" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2564" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">10</td> <td id="new_id-2565" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2566" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2567" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2568" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,405</td> <td id="new_id-2569" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2570" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2571" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2572" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,556</td> <td id="new_id-2573" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 43%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Project of comprehensive utilization of DaChaiDan Solid Boron Mine</p> </td> <td id="new_id-2574" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2575" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2576" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">1,536,594</td> <td id="new_id-2577" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 9%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">1/1/2018</p> </td> <td id="new_id-2578" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2579" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2580" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">10</td> <td id="new_id-2581" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2582" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2583" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2584" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2585" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2586" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2587" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2588" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">151,117</td> <td id="new_id-2589" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 43%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Total</p> </td> <td id="new_id-2590" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2591" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2592" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">1,974,491</td> <td id="new_id-2593" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 9%;">&#xa0;</td> <td id="new_id-2594" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2595" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%;">&#xa0;</td> <td id="new_id-2596" style="text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 9%;">&#xa0;</td> <td id="new_id-2597" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 1%; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2598" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2599" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2600" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">39,989</td> <td id="new_id-2601" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> <td id="new_id-2602" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2603" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2604" style="width: 9%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">191,918</td> <td id="new_id-2605" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 356114 2013-08-01 P10Y -32584 -33246 81784 2015-05-01 P10Y -7405 -7556 1536594 2018-01-01 P10Y 0 -151117 1974491 -39989 -191918 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>1</b><b>2</b><b>. OTHER INCOME</b></p><br/><p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Other income consisted of amortization of deferred income for declared special projects and government&#x2019;s general incentive fund (recorded as income upon receipt) for the years ended December 31, 2018 and 2017, respectively:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2606" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-2607" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2018</b></p> </td> <td id="new_id-2608" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2609" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-2610" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2017</b></p> </td> <td id="new_id-2611" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Technology upgrade for using lean ore to produce magnesium sulfate</p> </td> <td id="new_id-2612" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2613" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2614" style="width: 12%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">33,245</td> <td id="new_id-2615" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2616" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2617" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2618" style="width: 12%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">32,584</td> <td id="new_id-2619" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Technical transformation for boric acid and magnesium sulfate produced from low grade ore</p> </td> <td id="new_id-2620" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2621" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2622" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,555</td> <td id="new_id-2623" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2624" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2625" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2626" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,405</td> <td id="new_id-2627" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Project of production of high purity boric acid from lean ore</p> </td> <td id="new_id-2628" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2629" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2630" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">45,335</td> <td id="new_id-2631" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2632" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2633" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2634" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2635" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Project of comprehensive utilization of DaChaiDan Solid Boron Mine</p> </td> <td id="new_id-2636" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2637" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2638" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">151,117</td> <td id="new_id-2639" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2640" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2641" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2642" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2643" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Total</p> </td> <td id="new_id-2644" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2645" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2646" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">237,252</td> <td id="new_id-2647" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2648" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2649" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2650" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">39,989</td> <td id="new_id-2651" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><br/></div> <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> Other income consisted of amortization of deferred income for declared special projects and government&#x2019;s general incentive fund (recorded as income upon receipt) for the years ended December 31, 2018 and 2017, respectively:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2606" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-2607" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2018</b></p> </td> <td id="new_id-2608" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2609" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td colspan="2" id="new_id-2610" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2017</b></p> </td> <td id="new_id-2611" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Technology upgrade for using lean ore to produce magnesium sulfate</p> </td> <td id="new_id-2612" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2613" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2614" style="width: 12%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">33,245</td> <td id="new_id-2615" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2616" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2617" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2618" style="width: 12%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">32,584</td> <td id="new_id-2619" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Technical transformation for boric acid and magnesium sulfate produced from low grade ore</p> </td> <td id="new_id-2620" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2621" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2622" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,555</td> <td id="new_id-2623" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2624" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2625" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2626" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,405</td> <td id="new_id-2627" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Project of production of high purity boric acid from lean ore</p> </td> <td id="new_id-2628" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2629" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2630" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">45,335</td> <td id="new_id-2631" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2632" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2633" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2634" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2635" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Project of comprehensive utilization of DaChaiDan Solid Boron Mine</p> </td> <td id="new_id-2636" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2637" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2638" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">151,117</td> <td id="new_id-2639" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2640" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2641" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2642" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2643" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: justify; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Total</p> </td> <td id="new_id-2644" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2645" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2646" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">237,252</td> <td id="new_id-2647" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2648" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2649" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2650" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">39,989</td> <td id="new_id-2651" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 33245 32584 7555 7405 45335 0 151117 0 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>1</b><b>3</b><b>. CREDIT LINE PAYABLE (RELATED PARTY TRANSACTION)</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On July 27, 2012, the Company entered into a secured, revolving credit facility under the terms of a Secured Credit Agreement (the &#x201c;Credit Facility&#x201d; or the &#x201c;Credit Agreement&#x201d;) with Northtech Holdings Inc., a British Virgin Islands corporation (&#x201c;Northtech&#x201d;), owned by certain members of the Company&#x2019;s former management, James Wang, Rhett Wang and Wen Sha, Jane Ai, the Company&#x2019;s Corporate Secretary is also a part owner of Northtech. As amended on December 21, 2012, the Credit Facility provide for borrowings of up to $2.5 million.&#xa0;</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">An origination fee of 4% of the Committed Amount was accrued to Northtech upon the signing of the Credit Agreement. As amended, Borrowings bear interest of 10%, payable quarterly, and the Credit Facility matured on April 30, 2013, and extended to April 30, 2014 with an extension fee of 4% of the Committed Amount. Generally, borrowings may be prepaid at any time without premium or penalty, provided however that if the Company prepays any amount due under the Credit Facility from the proceeds of another instrument or agreement of indebtedness, the Company shall pay a 10% prepayment fee.&#xa0;All amounts due under the Credit Facility may, at the Company&#x2019;s option, be paid in either cash or restricted shares of the Company&#x2019;s common stock.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On June 25, 2013, the BOD approved a second amendment to the credit and security agreement and on August 23, 2013, the Company entered into a second amendment to the credit and security agreement with Northtech, which redefined the &#x201c;base rate&#x201d;, and adjusted the base rate to 10% annually, compounded quarterly, effective January 1, 2013.&#xa0;The Company delivered to Northtech 100,000 restricted shares of the Company&#x2019;s common stock as an Amendment Fee, issued in September 2013.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On March 26, 2014, the Company gave notice to Northtech pursuant to the terms of the Credit and Security Agreement between the Company and Northtech, dated July 27, 2012, as amended, extending the maturity date on the Credit Agreement from April 30, 2014 to January 3, 2015. The Company elected to pay the extension fee of 4% of the credit line amount of $2.5 million by issuing 200,000 shares of its common stock to Northtech at $0.50 per share (equal to $100,000). The BOD approved such extension on March 27, 2014.&#xa0;The FV of 200,000 shares on March 27, 2014 was $30,000. The Company recorded $70,000 gain from issuance of 200,000 shares.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On July 14, 2014, the BOD approved and the Company entered the third amendment to the Credit Agreement with Northtech, the Amendment modified the definition of&#xa0;&#x201c;Average Share Price&#x201d; in the Credit Agreement to decrease the minimum and maximum values for the &#x201c;Average Share Price,&#x201d; by 20% each from $0.50 to $0.40 and from $3.50 to $2.80, respectively.&#xa0;The Amendment also increased the maximum line, which may be borrowed under the Credit Agreement from $2,500,000 to $3,250,000 and extended the maturity date for amounts borrowed from April 30, 2014 to October 31, 2015.&#xa0;Pursuant to the terms of the Amendment, the Company extended the Initial Maturity Date by a payment to Northtech of an extension fee of 4% of the Maximum Line under the Credit Agreement. Northtech agreed to the extension of the maturity in consideration of an extension fee of 200,000 Restricted Shares of the Company&#x2019;s Common Stock at $0.50 per share issued on July 22, 2014. The FV of 200,000 shares on July 22, 2014 was $40,000.&#xa0;The Company recorded $60,000 gain from issuance of the 200,000 shares.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On December 28, 2015, the Company entered into the Fourth Amendment to the Credit and Security Agreement dated July 27, 2012, as first amended on December 21, 2012 and subsequently amended on August 23, 2013, and July 14, 2014, between the Company and Northtech.&#xa0; The Amendment provides that SmartHeat to pay 1) an extension fee of $100,000 for Northtech extending the maturity date to July 31, 2016 and a loan re-payment of $500,000 of outstanding principal (for a total payment of $600,000), represented by the delivery by the Company of 1,500,000 restricted shares of Common Stock at a price of $0.40 per share; 2) loan repayment of $1,000,000, represented by such number of shares of Series A Preferred Stock of Heat HP convertible into 20% of the issued and outstanding Common Stock of Heat HP on fully diluted basis, with a conversion, redemption and liquidation value of $1,000,000, and a 10% cumulative dividend accruing and payable quarterly ($25,000 per quarter).&#xa0;&#xa0;In addition, the parties agreed to adjust the minimum conversion/exchange price in the Amendment from $0.40 to $0.20 per share and the maximum conversion/exchange price from $2.80 to $1.40 to reflect the current market conditions of the stock.&#xa0;&#xa0;The new maximum credit line was reduced to $2,500,000.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">On July 31, 2016, the Company entered into the Fifth Amendment to the Credit and Security Agreement between the Company and Northtech. The Amendment increased the maximum credit line of the Credit Agreement to $3,500,000 and extended the maturity dated to October 31, 2017.&#xa0; The Company agreed to pay to Northtech an amendment fee of $80,000 payable in 400,000 restricted shares of the Company&#x2019;s Common Stock valued at $0.20 per share.&#xa0; The Amendment received the approval of a majority of shareholders of the Company in a vote held at the meeting of the stockholders on September 10, 2016.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">On June 14, 2018, SmartHeat entered into the Sixth Amendment to the Credit and Security Agreement dated July 27, 2012, as amended, between the Company and Northtech, as described below:</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">In October of 2017, The Company entered into negotiations with Northtech to restructure the terms of the Credit Agreement. On October 31, 2017 the Credit Line was not extended, and the parties continued negotiations.&#xa0; The parties agreed that Northtech will convert all outstanding interest and principal due under the Credit Agreement into the Company's common stock at a $.065 per share, which was a premium of $.0649 to the thirty-day average closing price of the Company's common stock of $.0001 per share.&#xa0; In addition, the parties agreed to reduce the maximum credit line under the Credit Agreement to $1,000,000 and extended the maturity date to December 31, 2018. Further conversion of any outstanding principal and interest under the Credit Agreement will be based on conversion price subject to a minimum of $.065 per share and a maximum of $.50 per share.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">As a result of the entering into the Sixth Amendment, the Company issued to Northtech 71,283,000 restricted shares of its common stock (66,316,601 shares were issued on December 28, 2018 due to the maximum limit of 75,000,000 authorized for issuance at December 31, 2018, and remaining 4,966,399 shares were issued on March 20, 2019). Upon the issuance of the common stock to Northtech, the total interest and principal of $4,633,395 due to Northtech was reduced to zero.</p><br/></div> 0.0001 0.065 0.50 revolving credit facility under the terms of a Secured Credit Agreement (the &#x201c;Credit Facility&#x201d; or the &#x201c;Credit Agreement&#x201d;) with Northtech Holdings Inc., a British Virgin Islands corporation (&#x201c;Northtech&#x201d;), owned by certain members of the Company&#x2019;s former management, James Wang, Rhett Wang and Wen Sha, Jane Ai, the Company&#x2019;s Corporate Secretary is also a part owner of Northtech. 2500000 0.04 0.10 2014-04-30 extension fee of 4% of the Committed Amount Generally, borrowings may be prepaid at any time without premium or penalty, provided however that if the Company prepays any amount due under the Credit Facility from the proceeds of another instrument or agreement of indebtedness, the Company shall pay a 10% prepayment fee. Company entered into a second amendment to the credit and security agreement with Northtech, which redefined the &#x201c;base rate&#x201d;, and adjusted the base rate to 10% annually, compounded quarterly, effective January 1, 2013 100000 2015-01-03 extension fee of 4% of the credit line amount of $2.5 million 200000 0.50 100000 30000 70000 On July 14, 2014, the BOD approved and the Company entered the third amendment to the Credit Agreement with Northtech, the Amendment modified the definition of&#xa0;&#x201c;Average Share Price&#x201d; in the Credit Agreement to decrease the minimum and maximum values for the &#x201c;Average Share Price,&#x201d; by 20% each from $0.50 to $0.40 and from $3.50 to $2.80, respectively. 3250000 2015-10-31 extension fee of 4% of the Maximum Line under the Credit Agreement 200000 0.50 40000 60000 100000 500000 600000 1500000 0.40 1000000 convertible into 20% of the issued and outstanding Common Stock of Heat HP on fully diluted basis 0.20 1000000 0.10 25000 0.20 1.40 2500000 3500000 2017-10-31 80000 $80,000 payable in 400,000 restricted shares of the Company&#x2019;s Common Stock valued at $0.20 per share 0.065 which was a premium of $.0649 to the thirty-day average closing price of the Company's common stock of $.0001 per share 1000000 71283000 66316601 75000000 4966399 4633395 0 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>1</b><b>4</b><b>. DEFERRED TAX ASSET</b><b>S</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">As of December 31, 2018 and 2017, respectively, deferred tax assets (liabilities) consisted of the following:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2652" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2653" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-2654" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2655" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2656" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-2657" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset - current (bad debt allowance for accounts receivable)</p> </td> <td id="new_id-2658" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2659" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2660" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">653,737</td> <td id="new_id-2661" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2662" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2663" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2664" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2665" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset - current (bad debt allowance for retention receivable)</p> </td> <td id="new_id-2666" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2667" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2668" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">36,201</td> <td id="new_id-2669" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2670" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2671" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2672" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2673" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset - current (inventory impairment provision)</p> </td> <td id="new_id-2674" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2675" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2676" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,592,875</td> <td id="new_id-2677" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2678" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2679" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2680" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2681" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset &#x2013; current (bad debt allowance for other receivables)</p> </td> <td id="new_id-2682" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2683" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2684" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">435,900</td> <td id="new_id-2685" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2686" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2687" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2688" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2689" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset &#x2013; current (allowance for advance to supplier)</p> </td> <td id="new_id-2690" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2691" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2692" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">541,194</td> <td id="new_id-2693" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2694" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2695" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2696" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2697" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset &#x2013; noncurrent (NOL of US parent company)</p> </td> <td id="new_id-2698" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2699" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2700" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">2,282,517</td> <td id="new_id-2701" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2702" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2703" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2704" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2705" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset &#x2013; noncurrent (NOL of PRC subsidiaries)</p> </td> <td id="new_id-2706" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2707" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2708" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4,905,775</td> <td id="new_id-2709" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2710" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2711" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2712" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2713" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less: valuation allowance</p> </td> <td id="new_id-2714" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2715" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2716" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(10,448,199</td> <td id="new_id-2717" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-2718" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2719" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2720" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2721" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax assets, net</p> </td> <td id="new_id-2722" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2723" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2724" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">-</td> <td id="new_id-2725" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> <td id="new_id-2726" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2727" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2728" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">-</td> <td id="new_id-2729" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> </tr> </table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company recorded a 100% valuation allowance for all deferred tax assets due to the uncertainty of its realization.&#xa0;</p><br/></div> 1.00 <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> As of December 31, 2018 and 2017, respectively, deferred tax assets (liabilities) consisted of the following:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2652" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2653" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-2654" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2655" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2656" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-2657" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset - current (bad debt allowance for accounts receivable)</p> </td> <td id="new_id-2658" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2659" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2660" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">653,737</td> <td id="new_id-2661" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2662" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2663" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2664" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2665" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset - current (bad debt allowance for retention receivable)</p> </td> <td id="new_id-2666" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2667" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2668" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">36,201</td> <td id="new_id-2669" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2670" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2671" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2672" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2673" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset - current (inventory impairment provision)</p> </td> <td id="new_id-2674" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2675" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2676" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">1,592,875</td> <td id="new_id-2677" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2678" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2679" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2680" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2681" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset &#x2013; current (bad debt allowance for other receivables)</p> </td> <td id="new_id-2682" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2683" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2684" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">435,900</td> <td id="new_id-2685" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2686" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2687" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2688" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2689" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset &#x2013; current (allowance for advance to supplier)</p> </td> <td id="new_id-2690" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2691" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2692" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">541,194</td> <td id="new_id-2693" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2694" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2695" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2696" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2697" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset &#x2013; noncurrent (NOL of US parent company)</p> </td> <td id="new_id-2698" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2699" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2700" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">2,282,517</td> <td id="new_id-2701" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2702" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2703" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2704" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2705" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax asset &#x2013; noncurrent (NOL of PRC subsidiaries)</p> </td> <td id="new_id-2706" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2707" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2708" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4,905,775</td> <td id="new_id-2709" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2710" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2711" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2712" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">-</td> <td id="new_id-2713" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Less: valuation allowance</p> </td> <td id="new_id-2714" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2715" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2716" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(10,448,199</td> <td id="new_id-2717" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</p> </td> <td id="new_id-2718" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2719" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2720" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2721" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred tax assets, net</p> </td> <td id="new_id-2722" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2723" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2724" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">-</td> <td id="new_id-2725" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> <td id="new_id-2726" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2727" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2728" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">-</td> <td id="new_id-2729" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 653737 0 36201 0 1592875 0 435900 0 541194 0 2282517 0 4905775 0 10448199 0 0 0 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>1</b><b>5</b><b>. INCOME TAXES</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company is subject to income taxes by entity on income arising in or derived from the tax jurisdiction in which each entity is domiciled.&#xa0;The Company&#x2019;s PRC subsidiaries file their income tax returns online with PRC tax authorities.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The President of the United States signed H.R. 1 (the &#x201c;Tax Reform&#x201d;). The Tax Reform Law, effective for tax years beginning on or after January 1, 2018, except for certain provisions, resulted in changes to existing United States tax law, including various provisions that are expected to impact the Company. The Tax Reform Law reduces the federal corporate tax rate from 35% to 21% effective January 1, 2018 for the Company. The Company will continue to analyze the provisions of the Tax Reform Law to assess the impact on the Company&#x2019;s CFS.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">SmartHeat, the parent company, was incorporated in the US and has net operating losses (&#x201c;NOL&#x201d;) for income tax purposes, the NOL arising in tax years beginning after 2017 may only reduce 80% of a taxpayer&#x2019;s taxable income, and may be carried forward indefinitely. SmartHeat has NOL carry forwards for income taxes of approximately $10.87 million at December 31, 2018. Management believes the realization of benefits from these losses remains uncertain due to SmartHeat&#x2019;s limited operating history and continuing losses. Accordingly, a 100% deferred tax asset valuation allowance was provided.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">SanDeKe, Jinhui, SmartHeat Investment, SmartHeat Pump, SmartHeat Trading and Heat Exchange are subject to the regular 25% PRC income tax rate.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Mid-Heaven BVI is a BVI company, and there is no income tax for companies domiciled in the BVI. Sincerity and Salt-Lake are governed by the Income Tax Law of the PRC concerning privately-run enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriate tax adjustments. Mid-Heaven BVI, Sincerity and Salt-Lake do not have any operations, and are not expected to have any operations in the future.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Qinghai Technology was carved out of Qinghai Mining on December 20, 2018. Qinghai Mining had a taxable loss for the years ended December 31, 2018 and 2017, and had no income tax payable at December 31, 2018 and 2017.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">Qinghai Technology as a stand alone entity had taxable income of $560,818 and $615,476 for the years ended December 31, 2018 and 2017. The Company used the Separate Return Method under ASC 740-10-30-27 to allocate its income tax expenses.&#xa0; Under the Separate Return Method, the Company calculated its tax provision as if it were filing its own tax return based on the pre-tax accounts.&#xa0; For the years ended December 31, 2018 and 2017, the Company calculated its income tax expense of $84,123 and $92,321 under the Separate Return Method, and credited it to due to related party &#x2013; Qinghai Mining. As a qualified business under the China Government&#x2019;s strategy of Develop-the-West, from January 1, 2011 through December 31, 20120, all the qualified business including Qinghai Technology is subject to a reduced income tax rate of 15% compared to a national customary rate of 25%.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">The following table reconciles the US statutory rates to the Company&#x2019;s effective tax rate for the years ended December 31, 2018 and 2017, respectively:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2730" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2731" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-2732" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2733" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2734" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-2735" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">US statutory benefit rates</p> </td> <td id="new_id-2736" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2737" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2738" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21.0</td> <td id="new_id-2739" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> <td id="new_id-2740" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2741" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2742" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">34.0</td> <td id="new_id-2743" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Tax rate difference</p> </td> <td id="new_id-2744" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2745" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2746" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4.0</td> <td id="new_id-2747" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> <td id="new_id-2748" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2749" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2750" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(9.0</td> <td id="new_id-2751" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)%</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Tax holiday in PRC</p> </td> <td id="new_id-2752" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2753" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2754" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(10.0</td> <td id="new_id-2755" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)%</p> </td> <td id="new_id-2756" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2757" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2758" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(10.0</td> <td id="new_id-2759" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)%</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Valuation allowance</p> </td> <td id="new_id-2760" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2761" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2762" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2763" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> <td id="new_id-2764" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2765" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2766" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2767" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Tax expense (benefit) per financial statements</p> </td> <td id="new_id-2768" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2769" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2770" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">15.0</td> <td id="new_id-2771" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> <td id="new_id-2772" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2773" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2774" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">15.0</td> <td id="new_id-2775" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> </tr> </table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The income tax benefit for the years ended December 31, 2018 and 2017, respectively, consisted of the following:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2776" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2777" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-2778" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2779" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2780" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-2781" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Income tax expense&#xa0;&#x2013; current</p> </td> <td id="new_id-2782" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2783" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2784" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">84,123</td> <td id="new_id-2785" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2786" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2787" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2788" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">92,321</td> <td id="new_id-2789" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Income tax benefit &#x2013; deferred</p> </td> <td id="new_id-2790" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2791" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2792" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2793" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2794" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2795" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2796" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2797" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total income tax benefit, net</p> </td> <td id="new_id-2798" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2799" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2800" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">84,123</td> <td id="new_id-2801" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> <td id="new_id-2802" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2803" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2804" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">92,321</td> <td id="new_id-2805" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> </tr> </table><br/></div> 0.35 0.80 10870000 0.25 0.25 0.25 0.25 0.25 0.25 0.25 560818 615476 84123 92321 0.15 0.25 <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> <table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2730" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2731" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-2732" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2733" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2734" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-2735" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">US statutory benefit rates</p> </td> <td id="new_id-2736" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2737" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2738" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">21.0</td> <td id="new_id-2739" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> <td id="new_id-2740" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2741" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2742" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">34.0</td> <td id="new_id-2743" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Tax rate difference</p> </td> <td id="new_id-2744" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2745" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2746" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4.0</td> <td id="new_id-2747" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> <td id="new_id-2748" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2749" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2750" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(9.0</td> <td id="new_id-2751" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)%</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Tax holiday in PRC</p> </td> <td id="new_id-2752" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2753" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2754" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(10.0</td> <td id="new_id-2755" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)%</p> </td> <td id="new_id-2756" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2757" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2758" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(10.0</td> <td id="new_id-2759" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)%</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Valuation allowance</p> </td> <td id="new_id-2760" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2761" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2762" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2763" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> <td id="new_id-2764" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2765" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2766" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2767" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Tax expense (benefit) per financial statements</p> </td> <td id="new_id-2768" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2769" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2770" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">15.0</td> <td id="new_id-2771" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> <td id="new_id-2772" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2773" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2774" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">15.0</td> <td id="new_id-2775" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p> </td> </tr> </table></div> 0.210 0.340 0.040 -0.090 0.100 0.100 0 0 0.150 0.150 <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> <table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td id="new_id-2776" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2777" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2018</b></b></p> </td> <td id="new_id-2778" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2779" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);">&#xa0;</td> <td colspan="2" id="new_id-2780" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>2017</b></b></p> </td> <td id="new_id-2781" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255); padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Income tax expense&#xa0;&#x2013; current</p> </td> <td id="new_id-2782" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2783" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2784" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">84,123</td> <td id="new_id-2785" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2786" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2787" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2788" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">92,321</td> <td id="new_id-2789" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Income tax benefit &#x2013; deferred</p> </td> <td id="new_id-2790" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2791" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2792" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2793" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2794" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2795" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&#xa0;</td> <td id="new_id-2796" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td id="new_id-2797" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total income tax benefit, net</p> </td> <td id="new_id-2798" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2799" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2800" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">84,123</td> <td id="new_id-2801" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> <td id="new_id-2802" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px;">&#xa0;</td> <td id="new_id-2803" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td id="new_id-2804" style="width: 16%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">92,321</td> <td id="new_id-2805" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px; white-space: nowrap;">&#xa0;</td> </tr> </table></div> 84123 92321 0 0 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>1</b><b>6</b><b>. STATUTORY RESERVES AND RESTRICTED NET ASSETS</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company&#x2019;s ability to pay dividends primarily depends on the Company receiving funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company&#x2019;s PRC subsidiaries only out of the subsidiary&#x2019;s retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with US GAAP differ from those reflected in the statutory financial statements of the Company&#x2019;s PRC subsidiaries.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">In accordance with the PRC Regulations on Enterprises with Foreign Investment and their articles of association, a foreign-invested enterprise (&#x201c;FIE&#x201d;) established in the PRC is required to provide certain statutory reserves, which are appropriated from net profit as reported in the FIE&#x2019;s PRC statutory accounts. An FIE is required to allocate at least 10% of its annual after-tax profit to the surplus reserve until such reserve has reached 50% of its respective registered capital based on the FIE&#x2019;s PRC statutory accounts. Appropriations to other funds are at the discretion of the BOD for all FIEs. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Additionally, shareholders of an FIE are required to contribute capital to satisfy the registered capital requirement of the FIE. Until such contribution of capital is satisfied, the FIE is not allowed to repatriate profits to its shareholders, unless otherwise approved by the State Administration of Foreign Exchange. SanDeKe, Jinhui, and SmartHeat Investment were established as FIEs and therefore are subject to the above-mandated restrictions on distributable profits. The Company met all registered capital requirements for its FIEs except for 1) SmartHeat Investment, for which the Company is committed to contribute an additional $40 million in registered capital by the end of 2017; as of this report date, the Company got oral agreement from the authority to extend the due date of capital contribution to the end of 2019. 2) Sincerity, incorporated on July 9, 2018 in China as a wholly foreign-owned enterprise (&#x201c;WFOE&#x201d;) with registered capital of $1.00 million, has 10 years from the incorporation date to fulfill the registered capital requirement.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Additionally, in accordance with the Company Laws of the PRC, a domestic enterprise is required to provide surplus reserve at least 10% of its annual after-tax profit until such reserve has reached 50% of its respective registered capital based on the enterprise&#x2019;s PRC statutory accounts. A domestic enterprise is also required to provide discretionary surplus reserve, at the discretion of the BOD, from the profits determined in accordance with the enterprise&#x2019;s PRC statutory accounts. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. SmartHeat Trading, SmartHeat Pump, Qinghai Technology were established as domestic enterprises and therefore are subject to the above-mentioned restrictions on distributable profits.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">As a result of these PRC laws and regulations that require annual appropriations of 10% of after-tax income to be set aside prior to payment of dividends as general reserve fund, the Company&#x2019;s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company as a dividend.</p><br/></div> An FIE is required to allocate at least 10% of its annual after-tax profit to the surplus reserve until such reserve has reached 50% of its respective registered capital based on the FIE&#x2019;s PRC statutory accounts. 40000000 Additionally, in accordance with the Company Laws of the PRC, a domestic enterprise is required to provide surplus reserve at least 10% of its annual after-tax profit until such reserve has reached 50% of its respective registered capital based on the enterprise&#x2019;s PRC statutory accounts. 0.10 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>1</b><b>7</b><b>. COMMITMENTS</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Capital Contribution</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company formed SmartHeat Investment on April 7, 2010, as an investment holding company with registered capital of $70 million to enable its establishment and investment in new businesses in China. Under PRC company law, registered capital must be used in the operations of the domestic company within its approved business scope. SmartHeat Investment was established as a separate subsidiary of the Company to allow allocation of capital to new businesses in China separate from its existing subsidiaries and operations. As a PRC investment holding company, the $70 million in approved registered capital of SmartHeat Investment is deemed a planned investment amount for the entity, not a traditional registered capital requirement under PRC corporate law. The Company contributed $30 million in capital to SmartHeat Investment on April 15, 2010, from proceeds of its public offering that closed on September 22, 2009. As of this report date, the Company got oral agreement from the authority to extend the due date of capital contribution to the end of 2019. The Company may satisfy this contribution through cash flow provided by operations, sales of assets, such as physical assets, financial assets, or interests in its subsidiaries, and funds raised through offerings of its securities, if and when the Company determines such offerings are required, and at such time that the Company identifies a new acquisition, investment or business opportunity to be financed through SmartHeat Investment, although no specific investment candidate has been identified to date. In addition, Sincerity with registered capital of $1.00 million and Salt-Lake incorporated in China on September 6, 2018 with registered capital of RMB 6 million ($0.88 million) have 10 years from the incorporation date to fulfill the registered capital requirement.</p><br/></div> 70000000 30000000 Sincerity with registered capital of $1.00 million and Salt-Lake incorporated in China on September 6, 2018 with registered capital of RMB 6 million ($0.88 million) have 10 years from the incorporation date to fulfill the registered capital requirement <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>18</b><b>. CONTINGENCIES</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company&#x2019;s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments in China and foreign currency exchange. The Company&#x2019;s results may be adversely affected by changes in PRC government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad and rates and methods of taxation, among other things.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company&#x2019;s sales, purchases and expense transactions in China are denominated in RMB and all of the Company&#x2019;s assets and liabilities in China are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current PRC law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB may require certain supporting documentation in order to affect the remittance.&#xa0;</p><br/></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>19</b><b>. </b><b>REVERSE MERGER</b><b>&#xa0;</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">On December 31, 2018 (the "Closing Date"), the Company entered into a Share Exchange Agreement and Plan of Reorganization with Mid-Heaven Sincerity International Resources Investment Co., Ltd (&#x201c;Mid-heaven BVI&#x201d;) and its shareholders Mao Zhang, Jian Zhang, and Ying Zhao, constituting all of the shareholders of Mid-heaven BVI (the &#x201c;Mid-heaven Shareholders&#x201d;).</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Pursuant to the terms of the Agreement, the shareholders of Mid-heaven BVI delivered all of the issued and outstanding shares of capital stock of Mid-heaven BVI to SmartHeat, in exchange for the issuance of 106,001,971 shares of SmartHeat&#x2019;s Common Stock. Mid-heaven, through two subsidiaries, owns 100% of Qing Hai Mid-Heaven Boron &amp; Lithium Technology Company, Ltd. (&#x201c;Qinghai Technology&#x201d;). The Acquisition was structured as a tax-free reorganization.</p><br/><p style="background-color: rgb(255, 255, 255); font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">As a result of the share exchange agreement, Mid-heaven BVI&#x2019;s shareholders own approximately 57% of the combined company.&#xa0;&#xa0;For accounting purposes, the transaction was accounted for as a reverse acquisition of the Company by Mid-heaven BVI.&#xa0;&#xa0;The following unaudited pro forma consolidated results of operations for the Company and Mid-heaven BVI for the years ended December 31, 2018 and 2017 presents the Company and Mid-heaven BVI&#x2019;s operations as if the acquisitions occurred on January 1, 2018 and 2017, respectively.&#xa0;&#xa0;The pro forma results are not necessarily indicative of the actual results that would have occurred had the acquisitions been completed as of the beginning of the periods presented, nor are they necessarily indicative of future consolidated results.</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2806" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="10" id="new_id-2807" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2018</b></p> </td> <td id="new_id-2808" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2809" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2810" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>Mid-heaven BVI</b></p> </td> <td id="new_id-2811" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2812" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2813" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>SmartHeat</b></p> </td> <td id="new_id-2814" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2815" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2816" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>Total</b></p> </td> <td id="new_id-2817" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 55%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net sales</p> </td> <td id="new_id-2818" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2819" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2820" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">6,029,147</td> <td id="new_id-2821" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2822" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2823" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2824" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">19,189</td> <td id="new_id-2825" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2826" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2827" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2828" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">6,048,336</td> <td id="new_id-2829" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net income</p> </td> <td id="new_id-2830" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2831" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2832" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">476,695</td> <td id="new_id-2833" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2834" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2835" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2836" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4,044,562</td> <td id="new_id-2837" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2838" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2839" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2840" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4,521,257</td> <td id="new_id-2841" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Basic and diluted weighted average shares outstanding</p> </td> <td id="new_id-2842" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2843" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2844" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">106,001,971</td> <td id="new_id-2845" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2846" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2847" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2848" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">9,855,174</td> <td id="new_id-2849" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2850" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2851" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2852" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">115,857,145</td> <td id="new_id-2853" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Basic and diluted net earnings per share</p> </td> <td id="new_id-2854" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2855" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2856" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">0.00</td> <td id="new_id-2857" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2858" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2859" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2860" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">0.41</td> <td id="new_id-2861" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2862" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2863" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2864" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">0.04</td> <td id="new_id-2865" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2866" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="10" id="new_id-2867" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2017</b></p> </td> <td id="new_id-2868" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2869" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2870" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>Mid-heaven BVI</b></p> </td> <td id="new_id-2871" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2872" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2873" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>SmartHeat</b></p> </td> <td id="new_id-2874" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2875" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2876" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>Total</b></p> </td> <td id="new_id-2877" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 55%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net sales</p> </td> <td id="new_id-2878" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2879" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2880" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,265,955</td> <td id="new_id-2881" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2882" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2883" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2884" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">772,158</td> <td id="new_id-2885" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2886" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2887" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2888" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">8,038,113</td> <td id="new_id-2889" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net income (loss)</p> </td> <td id="new_id-2890" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2891" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2892" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">523,155</td> <td id="new_id-2893" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2894" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2895" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2896" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(2,909,425</td> <td id="new_id-2897" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-2898" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2899" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2900" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(2,386,270</td> <td id="new_id-2901" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Basic and diluted weighted average shares outstanding</p> </td> <td id="new_id-2902" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2903" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2904" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">106,001,971</td> <td id="new_id-2905" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2906" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2907" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2908" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">8,504,769</td> <td id="new_id-2909" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2910" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2911" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2912" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">114,506,740</td> <td id="new_id-2913" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Basic and diluted net earnings (loss) per share</p> </td> <td id="new_id-2914" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2915" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2916" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">0.00</td> <td id="new_id-2917" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2918" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2919" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2920" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.34</td> <td id="new_id-2921" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-2922" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2923" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2924" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.02</td> <td id="new_id-2925" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> </table><br/></div> <div style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; "> As a result of the share exchange agreement, Mid-heaven BVI&#x2019;s shareholders own approximately 57% of the combined company. For accounting purposes, the transaction was accounted for as a reverse acquisition of the Company by Mid-heaven BVI. The following unaudited pro forma consolidated results of operations for the Company and Mid-heaven BVI for the years ended December 31, 2018 and 2017 presents the Company and Mid-heaven BVI&#x2019;s operations as if the acquisitions occurred on January 1, 2018 and 2017, respectively. The pro forma results are not necessarily indicative of the actual results that would have occurred had the acquisitions been completed as of the beginning of the periods presented, nor are they necessarily indicative of future consolidated results.<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2806" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="10" id="new_id-2807" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2018</b></p> </td> <td id="new_id-2808" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2809" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2810" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>Mid-heaven BVI</b></p> </td> <td id="new_id-2811" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2812" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2813" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>SmartHeat</b></p> </td> <td id="new_id-2814" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2815" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2816" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>Total</b></p> </td> <td id="new_id-2817" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 55%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net sales</p> </td> <td id="new_id-2818" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2819" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2820" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">6,029,147</td> <td id="new_id-2821" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2822" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2823" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2824" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">19,189</td> <td id="new_id-2825" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2826" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2827" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2828" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">6,048,336</td> <td id="new_id-2829" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net income</p> </td> <td id="new_id-2830" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2831" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2832" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">476,695</td> <td id="new_id-2833" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2834" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2835" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2836" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4,044,562</td> <td id="new_id-2837" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2838" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2839" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2840" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">4,521,257</td> <td id="new_id-2841" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Basic and diluted weighted average shares outstanding</p> </td> <td id="new_id-2842" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2843" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2844" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">106,001,971</td> <td id="new_id-2845" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2846" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2847" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2848" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">9,855,174</td> <td id="new_id-2849" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2850" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2851" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2852" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">115,857,145</td> <td id="new_id-2853" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Basic and diluted net earnings per share</p> </td> <td id="new_id-2854" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2855" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2856" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">0.00</td> <td id="new_id-2857" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2858" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2859" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2860" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">0.41</td> <td id="new_id-2861" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2862" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2863" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2864" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">0.04</td> <td id="new_id-2865" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> </table><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px;"> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2866" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="10" id="new_id-2867" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>2017</b></p> </td> <td id="new_id-2868" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2869" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2870" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>Mid-heaven BVI</b></p> </td> <td id="new_id-2871" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2872" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2873" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>SmartHeat</b></p> </td> <td id="new_id-2874" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td id="new_id-2875" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> <td colspan="2" id="new_id-2876" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>Total</b></p> </td> <td id="new_id-2877" style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; width: 55%;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net sales</p> </td> <td id="new_id-2878" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2879" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2880" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">7,265,955</td> <td id="new_id-2881" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2882" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2883" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2884" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">772,158</td> <td id="new_id-2885" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2886" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2887" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2888" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">8,038,113</td> <td id="new_id-2889" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net income (loss)</p> </td> <td id="new_id-2890" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2891" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2892" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">523,155</td> <td id="new_id-2893" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2894" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2895" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2896" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(2,909,425</td> <td id="new_id-2897" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-2898" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2899" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2900" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(2,386,270</td> <td id="new_id-2901" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Basic and diluted weighted average shares outstanding</p> </td> <td id="new_id-2902" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2903" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2904" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">106,001,971</td> <td id="new_id-2905" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2906" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2907" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2908" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">8,504,769</td> <td id="new_id-2909" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2910" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2911" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2912" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">114,506,740</td> <td id="new_id-2913" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Basic and diluted net earnings (loss) per share</p> </td> <td id="new_id-2914" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2915" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2916" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">0.00</td> <td id="new_id-2917" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">&#xa0;</td> <td id="new_id-2918" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2919" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2920" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.34</td> <td id="new_id-2921" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> <td id="new_id-2922" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#xa0;</td> <td id="new_id-2923" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td id="new_id-2924" style="width: 12%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;">(0.02</td> <td id="new_id-2925" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">)</td> </tr> </table></div> 6029147 19189 6048336 476695 4044562 4521257 106001971 9855174 115857145 0.00 0.41 0.04 7265955 772158 8038113 523155 -2909425 -2386270 106001971 8504769 114506740 0.00 -0.34 -0.02 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; "> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>20</b><b>. SUBSEQUENT EVENTS</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company evaluated all events that have occurred subsequent to December 31, 2018 through the date that the CFS were issued, no material subsequent event has been identified.</p><br/></div> EX-101.SCH 19 heat-20181231.xsd XBRL TAXONOMY EXTENSION SCHEMA 001 - Statement - CONSOLIDATED BALANCE SHEETS link:presentationLink link:definitionLink link:calculationLink 002 - Statement - CONSOLIDATED BALANCE SHEETS (Parentheticals) link:presentationLink link:definitionLink link:calculationLink 003 - Statement - CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME link:presentationLink link:definitionLink link:calculationLink 004 - Statement - STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY (DEFICIT) link:presentationLink link:definitionLink link:calculationLink 005 - Statement - CONSOLIDATED STATEMENTS OF CASH FLOWS link:presentationLink link:definitionLink link:calculationLink 006 - Disclosure - 1. ORGANIZATION AND DESCRIPTION OF BUSINESS link:presentationLink link:definitionLink link:calculationLink 007 - Disclosure - 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES link:presentationLink link:definitionLink link:calculationLink 008 - Disclosure - 3. INVENTORIES, NET link:presentationLink link:definitionLink link:calculationLink 009 - Disclosure - 4. NOTES RECEIVABLE - BANK ACCEPTANCES link:presentationLink link:definitionLink link:calculationLink 010 - Disclosure - 5. OTHER RECEIVABLES (NET), PREPAYMENTS AND DEPOSITS link:presentationLink link:definitionLink link:calculationLink 011 - Disclosure - 6. PROPERTY AND EQUIPMENT, NET link:presentationLink link:definitionLink link:calculationLink 012 - Disclosure - 7. CONSTRUCTION IN PROGRESS link:presentationLink link:definitionLink link:calculationLink 013 - Disclosure - 8. TAXES PAYABLE link:presentationLink link:definitionLink link:calculationLink 014 - Disclosure - 9. ACCRUED LIABILITIES AND OTHER PAYABLES link:presentationLink link:definitionLink link:calculationLink 015 - Disclosure - 10. RELATED PARTY TRANSACTIONS link:presentationLink link:definitionLink link:calculationLink 016 - Disclosure - 11. DEFERRED INCOME link:presentationLink link:definitionLink link:calculationLink 017 - Disclosure - 12. OTHER INCOME link:presentationLink link:definitionLink link:calculationLink 018 - Disclosure - 13. CREDIT LINE PAYABLE (RELATED PARTY TRANSACTION) link:presentationLink link:definitionLink link:calculationLink 019 - Disclosure - 14. DEFERRED TAX ASSET link:presentationLink link:definitionLink link:calculationLink 020 - Disclosure - 15. INCOME TAXES link:presentationLink link:definitionLink link:calculationLink 021 - Disclosure - 16. STATUTORY RESERVES AND RESTRICTED NET ASSETS link:presentationLink link:definitionLink link:calculationLink 022 - Disclosure - 17. COMMITMENTS link:presentationLink link:definitionLink link:calculationLink 023 - Disclosure - 18. CONTINGENCIES link:presentationLink link:definitionLink link:calculationLink 024 - Disclosure - 19. REVERSE MERGER link:presentationLink link:definitionLink link:calculationLink 025 - Disclosure - 20. SUBSEQUENT EVENTS link:presentationLink link:definitionLink link:calculationLink 026 - Disclosure - Accounting Policies, by Policy (Policies) link:presentationLink link:definitionLink link:calculationLink 027 - Disclosure - 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) link:presentationLink link:definitionLink link:calculationLink 028 - Disclosure - 3. INVENTORIES, NET (Tables) link:presentationLink link:definitionLink link:calculationLink 029 - Disclosure - 5. OTHER RECEIVABLES (NET), PREPAYMENTS AND DEPOSITS (Tables) link:presentationLink link:definitionLink link:calculationLink 030 - Disclosure - 6. PROPERTY AND EQUIPMENT, NET (Tables) link:presentationLink link:definitionLink link:calculationLink 031 - Disclosure - 8. TAXES PAYABLE (Tables) link:presentationLink link:definitionLink link:calculationLink 032 - Disclosure - 9. ACCRUED LIABILITIES AND OTHER PAYABLES (Tables) link:presentationLink link:definitionLink link:calculationLink 033 - Disclosure - 10. RELATED PARTY TRANSACTIONS (Tables) link:presentationLink link:definitionLink link:calculationLink 034 - Disclosure - 11. DEFERRED INCOME (Tables) link:presentationLink link:definitionLink link:calculationLink 035 - Disclosure - 12. OTHER INCOME (Tables) link:presentationLink link:definitionLink link:calculationLink 036 - Disclosure - 14. DEFERRED TAX ASSET (Tables) link:presentationLink link:definitionLink link:calculationLink 037 - Disclosure - 15. INCOME TAXES (Tables) link:presentationLink link:definitionLink link:calculationLink 038 - Disclosure - 19. REVERSE MERGER (Tables) link:presentationLink link:definitionLink link:calculationLink 039 - Disclosure - 1. ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) link:presentationLink link:definitionLink link:calculationLink 040 - Disclosure - 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) link:presentationLink link:definitionLink link:calculationLink 041 - Disclosure - 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Cash and Cash Equivalents link:presentationLink link:definitionLink link:calculationLink 042 - Disclosure - 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Estimated Useful Lives of Property, Plant and Equipment link:presentationLink link:definitionLink link:calculationLink 043 - Disclosure - 3. INVENTORIES, NET (Details) - Schedule of Inventories link:presentationLink link:definitionLink link:calculationLink 044 - Disclosure - 4. NOTES RECEIVABLE - BANK ACCEPTANCES (Details) link:presentationLink link:definitionLink link:calculationLink 045 - Disclosure - 5. OTHER RECEIVABLES (NET), PREPAYMENTS AND DEPOSITS (Details) - Schedule of Receivables, Prepayments and Deposits link:presentationLink link:definitionLink link:calculationLink 046 - Disclosure - 6. PROPERTY AND EQUIPMENT, NET (Details) link:presentationLink link:definitionLink link:calculationLink 047 - Disclosure - 6. PROPERTY AND EQUIPMENT, NET (Details) - Schedule of Property, Plant and Equipment link:presentationLink link:definitionLink link:calculationLink 048 - Disclosure - 7. CONSTRUCTION IN PROGRESS (Details) link:presentationLink link:definitionLink link:calculationLink 049 - Disclosure - 8. TAXES PAYABLE (Details) - Schedule of Taxes Payable link:presentationLink link:definitionLink link:calculationLink 050 - Disclosure - 9. ACCRUED LIABILITIES AND OTHER PAYABLES (Details) link:presentationLink link:definitionLink link:calculationLink 051 - Disclosure - 9. ACCRUED LIABILITIES AND OTHER PAYABLES (Details) - Schedule of Accrued Liabilities and Other Payables link:presentationLink link:definitionLink link:calculationLink 052 - Disclosure - 10. RELATED PARTY TRANSACTIONS (Details) link:presentationLink link:definitionLink link:calculationLink 053 - Disclosure - 10. RELATED PARTY TRANSACTIONS (Details) - Schedule of Related Party Transactions link:presentationLink link:definitionLink link:calculationLink 054 - Disclosure - 11. DEFERRED INCOME (Details) - Deferred Revenue, by Arrangement, Disclosure link:presentationLink link:definitionLink link:calculationLink 055 - Disclosure - 11. DEFERRED INCOME (Details) - Schedule of Other Nonoperating Income, by Component link:presentationLink link:definitionLink link:calculationLink 056 - Disclosure - 12. OTHER INCOME (Details) - Schedule of Other Nonoperating Income (Expense) link:presentationLink link:definitionLink link:calculationLink 057 - Disclosure - 13. CREDIT LINE PAYABLE (RELATED PARTY TRANSACTION) (Details) link:presentationLink link:definitionLink link:calculationLink 058 - Disclosure - 14. DEFERRED TAX ASSET (Details) link:presentationLink link:definitionLink link:calculationLink 059 - Disclosure - 14. DEFERRED TAX ASSET (Details) - Schedule of Deferred Tax Liability link:presentationLink link:definitionLink link:calculationLink 060 - Disclosure - 15. INCOME TAXES (Details) link:presentationLink link:definitionLink link:calculationLink 061 - Disclosure - 15. INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation link:presentationLink link:definitionLink link:calculationLink 062 - Disclosure - 15. INCOME TAXES (Details) - Schedule of Components of Income Tax Expense link:presentationLink link:definitionLink link:calculationLink 063 - Disclosure - 16. STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) link:presentationLink link:definitionLink link:calculationLink 064 - Disclosure - 17. COMMITMENTS (Details) link:presentationLink link:definitionLink link:calculationLink 065 - Disclosure - 19. REVERSE MERGER (Details) link:presentationLink link:definitionLink link:calculationLink 066 - Disclosure - 19. REVERSE MERGER (Details) - Business Acquisition, Pro Forma Information link:presentationLink link:definitionLink link:calculationLink 000 - Document - Document And Entity Information link:presentationLink link:definitionLink link:calculationLink EX-101.CAL 20 heat-20181231_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.DEF 21 heat-20181231_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-101.LAB 22 heat-20181231_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE EX-101.PRE 23 heat-20181231_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE GRAPHIC 24 ex3-12.jpg begin 644 ex3-12.jpg M_]C_X 02D9)1@ ! 0$ 8 !@ #_X1#T17AI9@ 34T *@ @ ! $[ ( M . (2H=I 0 ! (6)R= $ < 0T.H< < @, /@ M FMC.60G/SX-"CQX.GAM M<&UE=&$@>&UL;G,Z>#TB861O8F4Z;G,Z;65T82\B/CQR9&8Z4D1&('AM;&YS M.G)D9CTB:'1T<#HO+W=W=RYW,RYO&UL;G,Z M#IX;7!M971A/@T*(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" *(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M"B @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" * M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" \/WAP86-K M970@96YD/2=W)S\^_]L 0P '!04&!00'!@4&" <'" H1"PH)"0H5#Q ,$1@5 M&AD8%1@7&QXG(1L=)1T7&"(N(B4H*2LL*QH@+S,O*C(G*BLJ_]L 0P$'" @* M"0H4"PL4*AP8'"HJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ M*BHJ*BHJ*BHJ*BHJ*BHJ_\ $0@ $P"^ P$B (1 0,1 ?_$ !\ $% 0$! M 0$! ! @,$!08'" D*"__$ +40 (! P,"! ,%!00$ !?0$" M P $$042(3%!!A-180'EZ@X2% MAH>(B8J2DY25EI>8F9JBHZ2EIJ>HJ:JRL[2UMK>XN;K"P\3%QL?(R;GZ.GJ\?+S]/7V]_CY^O_$ !\! ,! 0$! 0$! 0$ M ! @,$!08'" D*"__$ +41 (! @0$ P0'!00$ $"=P ! @,1! 4A,082 M05$'87$3(C*!"!1"D:&QP0DC,U+P%6)RT0H6)#3A)?$7&!D:)BH*#A(6&AXB)BI*3 ME)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&Q\C)RM+3U-76U]C9VN+C MY.7FY^CIZO+S]/7V]_CY^O_: P# 0 "$0,1 #\ ]_U35HM%M5NM0++"TJ1? MNXVD;<[;5&U023X@6L>H:P;V*YCL+ (R2+I]SO(V;G+C9A?;I_6M[ MQ#I$VM:=%;VUT+26*YAN%E,>_!CI:LMC=G3(;?3[K<#++=@.#R%P@7YLD>H]:J^*+71KB9K9=*L=5\130A(E>! M691T#R'!V(.3SUQ@9.!6+I'AWP]X*OK72=;TRVDC\U&TW5I;8,6DSG8[X.UP MV2I. 00!R#0!TD_C2QLM9N;2Z>*2",1[);23SW#,VS8\:Y<'=TP"#[8JAH_C MNYU0ZDITV2-;=+EK>8P3*CF*1E"ON0!20H.,GJ1P17->/FEMO&$]M::9)]GN M8+2:6YBF%ML\B2>5]KY7YC\O.0!D9.2,YG@HR::U[9ZRFH"X?2)9[$W2G_4L MH:>0L3DLTN.#R %X&: .MB^(NIO!:M+H*))=#]U'_II+G;N(4BT(/ )R"1@= M:FA\>:DVE7EY<:1;V[6U_#:&&2YD7_61HY+%H@5QYB_P^OL3PFH7$.JZ?I'K]SI[+-)XBLXS9W4^ MXG%O;*59SN+ [3R*[7P]&)98A((_P"T$PI(R%8D @^O M'%+K?C)=*T_3KJWAAOI;P _8K>IQ@8!.>U>>:=I$]QJVE6 M&M16EEJ37,T=O9S012R"-+><+,Y*YDYVC))!V ]\UUGB>#3[SP5HW]L6RZ-_ MI$33V\4WD- K964+M()!!8<=0: U%T?XFRZCJ)>#RUV([2!L*2K*4(*X/!SG MJ*YC2+:P.J:%9:^UQY$KW#V]GJ,++"J%Q]F0!QL+[<' ^8'M53QM(;8L/=3K$82_/11YFT-QQ'(W10: UL=AH7C]M8NPMQIPLHA;27+H M9C).%1@,^6J=#GIG=TXJ"T^(DU_LBT_3?.N6N;F/9+YL">7$7P^]H\$_( 5& M<%AG'2L/P@)HK^]U".^AC2:SN8;:_5&EMU,4N"S,9#T ![!N>1BLRQ2VTRQ@ MUO2]2NK_ %*XN+U+F'3Q#/<741N'Q)&CJX"Y4$A0!AB>HY!GI4GB80^"+?7K MG[':236TIVEE?VU].]LYO#&P0I*58K&0 I7!X (!P. MW0<^(;6T\-ZC+;W^H+ITB6Z&;YI(Y[ACF=GDP05 *C* /1K_QC_9N MAG4K[1-2@C%OYS!EC.PGHIPYYZ<>X[\57LO&L[6%H+_1+S^T)@ UO;M&1N[A M=SC.!D_@:R_&N@6MUX2M8-*DB%@7MTTZPLU5(I)7E&')&0Z@'BVMRUJ+J-Y6,"26S2(/);#%8X(V YZDXYZ4 :6H_$2]T_4;J%=%B MFM[6X,4DWVPH5'F1Q@E=AQDRCO\ PL>U:WA_QA_;VNSZ<+..(0VRSF5+D2=6 M*A<;1Z$YK@O$%O="YU"^ECCM](BUL)?W:W!5VC-Q;D+@ $%2"P8'CYL8)K8\ M*6S)XHOH#JS)(IG)QL#;2H7MN/#+0(ZB_\7- FI2V6 MFR7-OIDZ17%P90B8P#(5ZD^6",\>HSD'&CK.L#2=*%\J1S1EE!+SK$H#=#N/ M'7'YUP>CZYI(O+J31;B>2"P@:SL+-8KB47#Y)DEE"*2=S\ L">&;^*M;3=.% MY\-]6'AJ2^Q?6T\=KI]S*%^PS ,AB0X!3#@C!) QQ@4#'W'Q'B@4[;&.9]K, MJ17\3D[5+'H3C@=ZZS3+QM0TJTO'B\DW$*2F/=NV;@#C/?K7G>KV;*P4KM67C.%(X]:[[0EV>'M.4\8M8Q_XZ* )?-?;][^ M'/ZT1G D< !F4$D#DG%%%7T,KNY) 2SN3UXYQ[5-@$E%% $:P1(D:)$BK%_JU"@!.,<>G'%*8HVE64HID4$*Y'(!Z@'\ M!^5%% A%M8$5PD,:AWWN @^9O[Q]3P.:DP,@XY'0T44#!55!A %'H!0J*@PB AA1DG '<]:** &RQ1SQM'-&LB,,,KC((^E/Z=*** /__9 end GRAPHIC 25 ex_149444img001.gif begin 644 ex_149444img001.gif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end GRAPHIC 26 ex_149444img002.gif begin 644 ex_149444img002.gif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end GRAPHIC 27 ex_149445img001.gif begin 644 ex_149445img001.gif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end GRAPHIC 28 ex_149445img002.gif begin 644 ex_149445img002.gif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ex_149447img001.gif begin 644 ex_149447img001.gif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end GRAPHIC 30 ex_149447img002.gif begin 644 ex_149447img002.gif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end GRAPHIC 31 ex_149454img001.gif begin 644 ex_149454img001.gif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end GRAPHIC 32 ex_149455img001.jpg begin 644 ex_149455img001.jpg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ex_149455img002.gif begin 644 ex_149455img002.gif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end GRAPHIC 34 ex_149455img003.jpg begin 644 ex_149455img003.jpg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end GRAPHIC 35 image_1.jpg begin 644 image_1.jpg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�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end GRAPHIC 36 image_2.jpg begin 644 image_2.jpg M_]C_X 02D9)1@ ! 0$ 2 !( #_VP!# ," @," @,# P,$ P,$!0@%!00$ M!0H'!P8(# H,# L*"PL-#A(0#0X1#@L+$!80$1,4%145# \7&!84&!(4%13_ MVP!# 0,$! 4$!0D%!0D4#0L-%!04%!04%!04%!04%!04%!04%!04%!04%!04 M%!04%!04%!04%!04%!04%!04%!04%!3_P 1" #P 4 # 2( A$! Q$!_\0 M'P 04! 0$! 0$ $" P0%!@<("0H+_\0 M1 @$# P($ P4% M! 0 %] 0(# 01!1(A,4$&$U%A!R)Q%#*!D:$((T*QP152T? D,V)R@@D* M%A<8&1HE)B7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7& MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0 'P$ P$! 0$! M 0$! 0 $" P0%!@<("0H+_\0 M1$ @$"! 0#! <%! 0 0)W $" M Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O 58G+1"A8D-.$E\1<8&1HF M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$ MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4 MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H # ,! (1 Q$ /P!Y7KQ_GFGK M]W_/O3L#\?\ ]=."]?\ /K6H"?Y_G1M#?7_]=/6/V_SS4GE_Y_.G<1&(_P#/ MYT\+CZ__ *ZF6+/^?K0T77_/K57)$C[_ .?6K,:?Y_.H I7_ #]:GC..,_YY MIW*1:15QC]*F7'%5PWO4L+?,1G-(9/M%3JORU$>E21-VI 2KZ5/$ W%0*1FK M" #%,74F6,>E2(M1J]3IS3&/4&IU3V_SS4:8[_YZU.&'3M_^NFK"L21I_G\Z MDV\]/\\TQ3V_SWJ9>G^?>@DD6//^?K4ZP_Y_.HUR.W'_ .NIU;'7_/6@!ZP] M/2K44/2FPR#@&K<:CC!J6 ^.'I3I(Q@"IXU]:CF7G@\U#92*XCQ4JKTI40_6 MIT4<9'- PCC'I5A8<41I4Z*:& 1KTXJXB^W^>:;'&?\ /XU8C0?Y_&I*')&/ M\_C5A(O\_G3HX_\ /YU:BASBLV,C2WS5N&VZ=ZFCAQ@8JS''TK)LJUB..WJS M'![5-'&/2K4<6< "LVRXHKI;^U7;:Q+MP,"KEK8[L9'-;MAIHZD5SRGK8Z(Q M26I^;X7C_/O3PO\ G\ZE51Z4_;_G\Z]:YYXP#V_SS4BC_/YU(J^HY_\ UT\1 MCFD S'IQ_DTY8\Y./\\U+Y8_S^-."_Y_.F*Q$T9'^?K30NUO7_)JXL>[OQ2> M1R*8R(9_#_\ 74L?#>M/6WW=.E/\K;0!*O('-/7K[U$/E[TY6_"@"Y&!Q4OW M>M55DP14JR9Z]* )U;O4RR;<569^/;%"R ]Z?J(T%DSWJ:-_?_/-4E8;1D\U M(LF.] F:"MSUS_DU9C_S^M9B2=\U;BGXZ_YYH$:4;#O_ )ZU9C4/6?'*&_S] M:N13;?\ /UI#+D<.#UJW''56%PW-786^88-*X[%J,%5J-^6JPK#;4!(W5-]1 MCE7I4R+[5&IJ96Z#&:JXK$J+5J.'W_SS4$>>."15N,_@?_UTADBPGU_SS4ZQ M,/\ /UHCZV1_P#KJ6,6-6_S^-7;?QQ6392+"P^E:5G:98$C-4[6-F8<9KH=/AS MC(KFJ2-8HNV>G#@_C6M##Y=1VR[0.*NJM9TX\[L34ET/R_5CZ_YYJ0-[_P"> M:8-O^?QH*]>_^37LG-8G63D_Y]:E60>O^>:J!:E6,_Y_&@+%I9!TS_GFI%?: M>M5=I_'_ /73PK9_S[T!8NQM2[CN(ZU FX?Y^M3K\U 6)U(I_!S4*+4H7CKQ M0%@";B*?Y/H:@"(1U*J]*/XN*ECIW$)MX]:-GYU+VXI5]Z+@-7 M*TJL=U2J@R*?Y8IBL-63L*GCE]Z:L8&>*<(_:@5BS'<;>_\ GFKL-TK=_P#/ M-9JQ'TJQ'"P_S]:-!V-B&Z _S]:TK>8'H:P(PRXX_P \UH6K,I!Z5(S<\P[* MC5SGU%1+*=M.C;GFH*+D4V, KFKL,B'J,52BVU:C5:86-6%HW7&?T^M3_94; MHV#_ /KK,C49')'^35V/(Z'_ #S4W"Q;33C_ 'LU;CLO+P/^BFZ<@54C7=C@&K4:?[-9-EFC"P9>#S4^P]L&JL VXXJY M'U%0V6B[:0R* 0,UOZ>K<;A@UE6DP7'(%;%K<+P,UQR9KL:\7TJP.E589!Q5 MA6XK:C-1>IS23/RV2?\ S^=2K*#W_P \UFK)QUJ19/>O5)-1)!ZY_P FK"S# MC_/K6,LI]:E6;W_SS0!MK(O^?QJQ&8^Y%8:7'O\ YYJQ'=#UH W8XXVZ$9J3 MR1]:Q5O=O0U9CU ],TM0-98?PIZPGTK.CU+U-65U(>M("SY)[<4>6W2FK?!L M=*F2X0T7$0^6]2(".HJ99%;':I556[BBX6(5IZU.L*T];<>E.XK$*\'K4JFG M_9_PIPA/8T!80"I47T_SUH6$_7_)J9(V7M1<1)"H]/\ /-6HU_S^=1I]/\\U M.A'IC_)I7&3QQ GG_/6K<<8!ZU5C8;O\^]6XQ[U-P1,M.7.:(X_>G^6<\5/, M42HQ&.:GC8^M5U5O2IEB?@]J?,!>CFV@9ZU;BN@/;_)K+57%3(&..*38&Q'= M>A_SS5Z"\5>IK!CC;N<5:C4^O/\ ^NLFT,Z2&_7VJVE^*YJ-6]3_ )S5V!BO M7G_)K-EG117@[5:28-6+!)D 8Q6A;L#WQ6=RS5MF.X?-6W9S!2,\_P"37.K\ MO?!JQ#=/'GYL_6L)J^I:9VUO<+MJ.Y5N,UQUOJ#C^+_/-74U)EY#&L+M% M\BD?FLD)]:?]G)Z4V.8\=ZF6X]1BOH#B(_(8=Z-LB]JMQS(W'^>]3KL;TS_^ MND!F;W7MQ2_:&7L:U/(5L]#_ )-,:U5L\?YYI@9_VT]\TX7Q'?%6FT]3T_SU MJ-M-!SBF U=2/K4RZJ1SG-56TL\XJ-M/=?6@6IKQZP?7_/-68]8QWKG/LDB] MS1MF3UI"U.MCU@9ZUM<.LTB]X_.O/ M_P"T'7^*IDU8CO2L%SOUU9?6GKJ:GO7")JQ]?U^M3IK&.]%AG=+J([&IEU#/ M0BN(CUK'?FIUUSW!_&E8#N([[U.:MQW2MW_SS7#0ZZ.,FKL.O)QS4M#.WB93 MW_SS6A!&AQSUKAX?$2+QOQ]:T;?Q,G'S#\ZS:8]#N(8T ZU-M0'J"*Y.'Q'$ MW5_UJ]#K,4F,2#\ZAW&=&JJW<5,JKZBL*/4$_P">@/XU:AODX^89I:E6-@*. MW-2*A[#'^35&.[4_Q"K"W^WN#4W8TB_'"#U_SUJU'#&/\_6LA]2?L!BF_P!J M/UQFLQV.A54_S^-6H80QXKETULKUXJS'XB*]*AW*.JCQ'QUJ97VXP:YV+Q$N M/F%3#7(Y.AQBLVV58Z!;EN.XJ=+@'KG-8EKJD?'SC%:L,D5PN0X%+F)-".X' MO5E;C=W_ ,\UG",)]UL_2I8_:SEO'J1+YO6@#0 M&X=L_P"32ECR,?YYJDM\Q]ZF6\SU _SFI GWCN#_ )S2_*>WZ?6H_M0],_Y- M2QW"?Y_&E=@'DANW^>:1K52#\N?\FKL*GF'8Q38QL<8_SS M36TH'.#BNB2WC/.T5*MJC?PBESA8Y-M'9NAH_L*4\@9KL%TZ,]!2M;B%2>E/ MVC%RG'_V/,F?E(IC:=,N>#^7UKKED9\X7/;--=7Y)3/T%/V@^4Y3[#,.Q/\ MDT>2Z]C_ )S70RQS-G;$<57-C.Q^9 /\FGSBY3(#%>I('_ZZE6; Z_YYJS;O M#=37D2@E[5MDF1QG:&_D161%X@M;C1=/U%+=A'>2I$%8@$;F*Y_2CF"QHB8X MX)_SFI%N9%Z-C\?K4.F:A;7E]J-NZ!1:RB,,#G.4#9_6M0PV17AQFCF%8@2_ MF7^(\5K5 =-1ON2XX]:3^RY.S9I=3RY_.M*#Q&R_QUQLUO M+#DY'Y_6JK7DL9/;\:+7'<]0M_$QX^;]:OQ^)DXRWZUY"NL2+U8_G]:L)K+] MWP/K4\A7,>O+XGB_O\5*OB>#'WLUY/;ZM\PR_'UK7M=3A; +#/UK-P*4CT>+ MQ!:2<.X ]ZL?V[IR])5S]:X-1!<AQZK;2CY9 ME(^M6(Y5D^Y*OYUP-KX=E8#9.P/MS5^UT6]63"N^,XW$D5D^49V;-#4-57&U&QZ@5G:7:SV^-TK.?1CQ72VNLR6XP\63VPN16$I#Y26SUB_51N M1L]ZO#7KM?X"35%_$ Z>5CGG"U;L]6MYF^8 ?45AS>1O&)\6+<'^XI^AI3=! M>L)KP2'XR:A&3NM,CMAB#^-+'\;=4W$?8XW(//+#CTKZ3V;[GF\Q[RMXF?\ M5,/PJ9;B'NC _2OGZ?XW:VTR-;P101*>492V[\:O-\>=491LT^ '&#N9C^E' MLV*Y[N&MVY[U(L4+=/RKYYNOCAXAF(,4-M;C/0(6S[ XP M66,D_7!-'L9=PYD?1:VL/KC\:?\ 98%&6V/O XQ4^RD/F78^C!91_WR/\FE^QHN?W MG^>:\&D^/&H30H8-.AC.,MN9FS["KUQ\>MNFG;I3)>>KN3&/?UJ?93'S1/;5 MA5>DG^>:G3Y?X_\ /-?/_P#PT']/V,Q">XTZ^(D?:RJP)'!Y'/)K)T9]BE)'T%'-QS)4JR@L"64CW MKY;/[:GA0W#K;Z-JDT2MMW,%#'WZ_6F1_MP^'?/VOX9U!$S@MYR9'/7%8^SD M:71]80O&!C"XZ\58C\IFZ@5\T77[:'P_MXXWAMM4N6;[R+$ 5YZTT\FUT2ZN[T(N%8 MB.-FXSSDGU[5/)4*O$^E=$T#SK[Q(41?ENP.O/\ J4KB='\-O<_#OPLY4@-> MPKN'?]\U> >%?V[%L]3O7U#PYLM;RX\V1H+@LZ?(%P 1S]T?G5MOVRM"TWP# MHFG:;IUU=ZE9W"S.LJJL8VN6'.?>KY:J%>!]%Z+X-D.M^(\;F"7**GB* MT:4:G;6M\LC957B&$]@5Q6JA4,VX'TYJ2G30OWPSR"-0.>3G_"LOS;\D[IRI M[;3]:\2N/VV(-1AM3)I5D)H[A920S < \8_&BX_;-T&20_;M&D9LY+61!7IQ MUK11FMT0[=&>LWW]M&3;$[N2,^M41:^(&8\,1]:\@M/VXK*WN-I\*RF('"DW M"@D9_P!VO8/ O[8'PYUK1Q<:Q+'H=]N939RHTIP.C948YHE4E%?"$8XSBDBM]:DD"^4Y.?X1FNXL?VH/@ZL)DD\06#C&2GE.6Z].E5+[]M M?X(^'=6N;807^HF,[1=6-JK0OQU7+#U]*YGB9_R&OLE_,82:3JZKEE8#OP:> ML>IQR!5#GW(KTC0_VM/@OXHL5EBU6WTYVW V^H1&.08/4]1W]:W;CXJ?#VUM M[>ZEU/2(K>Z95@]>[ZQXHT@:%?FVBM7B^S2L'"Y'W#[5\[?%[XY MQ_#+4_"L5CX(+JQC6.: MY>7:<;GQD\]Z[K3/%MFR@2W0 ]"!7Q@W[8VHW&]O^$2TR,[CC]Z]=;\(_CW/ M\2O%C:-=Z);V9:)I%EMY&(&T#J#]:4H7U8DSZ_M_%&F1X(G1_JP%7X/'6EQM MM)4^I)!%>."U;HO3W%*--N%;Y7*CV!KFY(]S34]]T[Q?HTV/GB)]R*N2:EH< MS;B8P?\ 98"OGM8;R/[DA4_2DFDU+I]H;TZD5E[)/J:QD^Q^8OVZX:*0,7#= M 5;]:9'?W-NV$,@7.#S]>:V?,MY(R!%&.WW11BTV@-!'GUR17M79QF3#JEVO MF,;ETV] W)?K3K3Q'W6BWT$+& MZRW+$,/X5*G/KUHU#2YL21W#);72-&N" M 27J"WTJUCA"&20L!C<",TK65NK$BX;'&/Y5?:WMBPQ>*3W!49_G4=WIHN5*"6)U8=&4#-%V. MR,&;4+RQ\MX[F4%W"@[L@=:?)?:A]G$?VZ8(6SM.>>?_ *]<[K]K'873!&H^2"V,2-R!BM4VT9Z)V-^WN;C5(2&D=PC%1M)'> MI;AIM-MQ+%+(CJ5^8D\=:Y3<\,Z1B]&&?+,K8 'K6A]GFFC?;J:D$L0C,#@# M/^-/7N+1N]C6;Q1K"9 O[@#KT!%5-2\1:CJ<:)>7+3+&V5W*.#6'#J5[Y9 G MR . R@T[3KR:\O$CED)1V"_*!@]W-N:'8M?:DC92/XN2%&.F&QTO]H6)( M)AC)^@JCJ2RQ[)%A:.*3E2%P#[UEPPO<,HCBC;)P,,V*U)KB[FCB@?+F+Y8U M!. ,]* $MF421M,JNF<%3S6]':Z>RAC$@&<#I7*32NDJJ8V0*?F .:M_:H<9 M5;IQZ@ 4O,>QTPLM,4Y,:@GKBG'3=,D7"1@]^I%ZN%$C/+B-3 MAFQG&KZ1=&TN[/D J&1PH4<"O.H=#OX]3$AN,Q++O*AB."3Q M2]G%[H;E*+L?3]]^T;XUU.=99-=N[<*,!;98T'4\]*ZB+]H""XCA^UZ[XJ\U M0I;R_LA!8#KRM?,-]XBN?)9(XE5%1E#*IR>,9K,T&\U#5+EE8YVQX^4X.,]* MGV4>Q2J2[EUFC5\;U)]58XI&,3#EVS[,34;0N!D*N.V:CW.N?E4>GO5V()6 M_AG<'T+&FOYQ/,KGC^\:LV=TBL?M%L\HQT1]I'OT-->:(R$+&Z@G@$DXHV J M^1*AR)9!]&I39R,?FED ]2V:N>8#]T''<6#@QY]@"*.=BY4<2W@G8N%N=IQR"V*A'@N:,[H[D(1R,,?\*[5KJXZ!U4 M?[*BHO.N3+ M)GF8^VZAK21LCRY6/^\*.:PN4\^FT?5O+9?)+(>HX]ZSWTF\C8AH&'OCI7J8 MT>1N3 <=MSFE;1U;.5C3'1Y(8 792N6!)P?_ -5+J6J7 MNI6L,,MJ1Y)8J54@\_Y%>@?V/"K8:>,'/ !&:E;P_".YQ_>VDT4+% M+&P)CDSWX(/>N]M/B=!#K%EW/V5 M#_O8!J*31[#)"6RKSC&TFJNA69SGA?5'LM2MD,D:0-.A?S I&T'GK[9KTFUL M_#%UXW$L<\#6^YI"!,0I;DXQTKD9/#,4WW5(]E7%5Y? Y*EE24#KG%+0>I0U M'5VCOG22VCA\N5LM&IR>3QG-4A?&/05;3P M+*MJ8S*R@\G*BA-(-9'.&3<06,A(X*EC\W'6IH+@QQRKEO+7EDP6QQ_]>NCC M\$F1H@URP*=&. *V[/X1W=]'+)8EKSYE M7&<$DA^M:\WP_AL"8K@/"5/S)(I!%;6DVM MO8P".)XRHX!:)"?S(HYT'*<'I&EW.I:L88CY M-O,>X2+S!D;U(!Z\UVGAWQ%X2T72XK>7P7;Z@ZKAI7O)E8\=>#BNMM?&WPVO M88UOO -]&ZC :WU=@!] ZM1S$/4\8;36EC9/MENX88(YR:GT?PZ^FSRNTBH6 M4+QGU/\ C7KU]XR^''=0L2H90T5['(1R<=8_I7%ZKK5O=3G[(EQ+%C M %P5)_\ ':GF'RG!F0+P8@?3D8IF_J3 GY@XJ18S_=_.FO\ *Q^7B@D47#)@ MA$(Z8Q39)6=@?+7/J!FD.9&X;&*E5F5>H(Z9QF@+"+)Q@ _[E/$A'09^J@4 MU6QSN..F-M.;IGD^HYIB%\S"XVK^ Q4+7#!CS4P5."0<_C3FMTZ[&&?4$4P* MWGJR8//8X'-5I A8\MGZGWJXT<88;5^O-!@1R,(".^XF@"]H7A/5]>A\ZPLI M)HL[?,SA?UK=7X6^(YL!Q;Q#T>4'%8FF>(-0T%66PNY;9,Y*QN0#4\WCSQ!* M23J,N>QR!35A'4P_"/6&0(+[3QD<[@>/;I5/4/AEXBTOYX42[ .=T!4@<>YK MG4\;:^L@_P")E*2.3R*;<:[JFJ+MN[^XE4=%,C8IZ"U*]U?7MG>/'=!Q<=&5 ME )IDFL"/_EV8GUSDTAMPK;@YW'VR>]!B_VV8]< U)0Y=8!&3$0/;>2/&T-C./F-%@&S7<9Z )SQ@5-'=%E_UDGKC) JG M)'-Q\X''08H8R;<;U4XZCK0!I1ZD\*LN9!NX+#K51Y@Q)?S#N.,LH/D-GJ"QQ1<"WF/&5V'VQR*E5V13\D9/7GZU1N?-DV."L8SP%. M32*CKA@26STSBD/0N->2JP *#'7@ T->3MD,,CV.:C625L@Q#KSDTW!9@,LA M)X(.0*!Z"R7$BXP<#%"W4O.2!CL>?QHDM2K$>>7)YPHR:='9RR.!'MQT_>-0 M%QGVMMW&U_7(^M/CU.[LWWPR- _7=&2I_2K4FA7RX^="O MI;@TK ;GAGXGWFFZE$VK[M8L1D-;SD$'\Z['4KSX=_$&^1K>YF\)R]"K0(T/ M3KQSFO*)M#D23$8\X=MH)SUJ:/0-06,S"W,2 XRS=*8CI]4\"11:DUOIVNQW M\(.!,MNP!'KP33H_A_>>62UY:O&I.6;*FN16ZU&SF#0W+HZG^!\ 5KV'B[Q) M%')"+D2Q2##)<*K@^_/O0%SUGP#\(]#\36YMDCBO]57G[/!>$%UQUY_E69\0 MO >B>!]L36E]#>[L.K1L8TX/&\]ZXG1?ML=\MVVI+8RYSYT^0>=KRV QGF!V/T]*WF^' M?@N^M0(_',$$@'#20,0?? .?TKAM?MX!>3,4) &%,3*RDX]NHK.TNRTO4V*7 M6MQZ5SC=- [8_P"^(<=,YS7C=Y\+)U\/G5]+\1Z3K:*^PVMK,_GG_@!6 MN.AL+V:_%H;.8W#' A2,ER>>W6E8JXWSVSW]NG%1R7!!&1@_WCS3O)"YY)/0 M\T[RO4#'UJK&=R)I,\X!]1ZT!I. H&/7^E2!=O0C'UH=MK*,\]QGI18!T/RM MF4,R]2%8 FIKAXGC(AA:,YX+29_I50RD.5')[=:-S\Y)'OD4Q$B+MZ]:EDD= MQAY&(7NQ) JN9OFP"3S@C.*<9AMQN!X[D4 .X##YLY'X4@YYR".E0R2HV 2N M<] PI/,&/F<8]%YH L,N<\'UP*9M7N<']:K_ &R-257=GN-IH^TALG!QVSQG MWJK")%56R &/N3@4Z/ RJ@\'[V<]:B%T3G@ ],CI2QSC=@@]>3R!0%RVL+-N MXW'ZU:M]&O;S/E(HXSEB *KK'.4+JHV@9QD9-1QZ]IU*L0K&J.>%&#Z@+ MQ*Q/[K'/4G]:FMF"LQ8;VZXR142V<[-E@ .HW'K M33,BG:)/,93C:F&9(V9E0EB,;I&Z=>E45F*-MP MI'7:Q %/AE*RAL8'<*,BF!JV,TOF"21SM R%4X I+JZCO-PD:0C^XIZ]:I?: MK;@23X7/*#@]Z+:>C,"33[OQ%I]K#BUMS) M/TW <'BL]M'DD+--.<@XP6.:CAA925W*@!QNQDFF.Q%#?S39)58@W=N2/SIJ MRON=O-W@'&6/!J:6';(5WJP!!.X]:D\DHKX".",] /:D"*:RW'VC<)7C*]& MC8C'O5NS^TV\DL@=72088R("3GZTS]VJ%B@) P0&&/I3HV5H]R!DXR5/04AC MXC%#,&C+ YY96P1[_G6_)X@T]KJTN8X[C3+N$$FZM9V>0L <,-QX_ US,KP[ M0^[ SZ$9]JC6944@E3CU4_E2&5FCGXWNXBF?92RDY9C[M@586U4L/WD77L,FI&7RRJB1># MRP7(% [%;R65"H.!Z;B34@CDR1D'\":G.W)(E(.>PQ2KL[S$_1N#[4"(_L\K M1@#:!GDE.:([>3=M,AXZ$*HS4K-''@L"!ZFH97B;D/(/0>M,"06:)RTKD]1QC;C-)]IMR&7?R>0 03WJ)KZ+RSCE.XC)O]/N]/O)(+I'MI%/,; Y'M1Y"MUG&,"@!BV\8YVL>W' I0L;DG:2%/\ $V:)I&D8&,\=.E121R[@"#C_ M 'NM(HF\Q$)4*N/I2>9\O3)_V1TI881M+,RX)_+K4,TLET#D[LMG&%Y%(MP[( (O,8'D[0*7RWDYPJ#N,YS3]1;"R7M(RX./,9!G&%4<^U+-:AHP%#AY10!_>YSUYIR1*V%WKQZ CUHL%R9KK[P4;1T& M3R*9^] !ZCKE0!GVJ':\,A.P9'\6U NMG",4=NASBF&@LNH2 M;A&YP>IQP:GT_5(+=G+P^:,<;CR.O/O0FJE86CEBBG)X,C*,CVS59+&V;&)V M0L>AP0* 9:\Q+S:/Y@[/"O = ":@M MV\FY=S(SG'1@,'VQ0(U[^P-L%$A4;O0 U119H0'VJXS@ +C/X5:FD$]FSXPR MG.5X_P ]:KVK3^:/WA(]"<@4#U*\[F1E+*N.@1>!1Y,;80J$]4[GWK6: W"\ M1K(%).Y5X%1KIJW#2 (?,4_+L)R*11AM<(OS G']W _.FK>#RV4HQ;.,MQ44 MFT-R5)QR% H\T(?F)QVSCGWIDH%O JE?*9VZY+5(;J>1@/(79VY./K38F7EF M1G'?/XU+YR*IVIQ];,RG_5@@\<&IV>>12%A5ST& MXCWYI88+CJY2,=#\HS0(A_>MG=/[X5:L1Q_*6WN3W8C -3>6L9)>5W[C:,?A M3LYQM@D<<_>)I@1?9&R&<,QZ8W$#]*5K%9",1IGN22:E+S\ 0[1_M$DU''), MS0HQ^%(UA%M!9VQ MG^)J+#0][R.-B,*HQD_-BJS:EYC;8CDYXX_SFI_L]G&PRF21@9R15A54KA$4 M#H !1H&I###-(P)*C)YS^-3/"D:98AB.3A0*5E96&1D9Y(.,4R2X5<@$%NPZ MT6&-9VC8 *5R<_-G-(6+-HXZ M4["U%^SR-ED (Z=<&J[,T+#GOT( %660LP)+ XZ9%./D8^8$D:A^?=G<8R!T4=>M%@)MRP\D;R M>O)(ZU-O+;6SM7L,\GVJON^4!3Y@QC.#FGJS,H!^7Z<#O2 G68<<,Y]L4;S) MD%<#.!NJKN=[#CUJ':."H!.. M#R:75'#*P* MG.#W- S4L_$?V6WEC$$3QL,8=?FZ'O3HO%#30F-X+<)]T*R#/3K64UJC$;67 MIC!JDUOY"<]3C\*DFF>7$K2M]HSD MM&""*Y7[1=V^. 0/48-:5KX@*L-VY#CJ,<4K#,KRY8)' W$D\_,#C MO3BK-C"$?F,TP)%4OD-*S'/\+8%2)&C LA+$=N@IB((XR2I)[J?Y4X,D<9P! MTZ9P:8F/9O+7Y4!&.1NIDB_[';..3FD#9/;/0<>]*9V5025].* (Q-M8AU([ M&<_D/YT-$.&X (YRV,DFE(=_N*H] M,4NQ(UQD9SD ]^.E-,TG& #SU'3Z4 !1UYD3(SU8\#\*E,T4*K\BAP.H/!XI MDC%E//R]<-D9I(HT93E023]?PH <;H2 D(0.@XSS3&MWDY*[,]><9J>+*8"( M!^6*=N.X@G!QR.X1,X()]/6HGD: M3@#M@CTHU J2,8U.T'KVZ#K3 SG.0#GMFM 0KSDD#' '&:C6U#Y)W 9I 4U\ MU,'9M7J#V-!=SSD'G& W>@#/:3S!DED'?" M\^PJU:Z=<21XM+5I5QDG&!71^&]%B:^MGN'CDCSEE8$@5Z9;+;^4 I1PO 50 M,"K21+9Y-%X.UB>**5;8&.0<$.I/TJW#\/-6FC?*HF 3ACR>O%>L121K]T*! M[8JREST (Q3L+F/")/#>HV)=7C;_ '@!ELB\PG01,7*KH1R#U%,DF/.Y% M(['&:T;[2Y8V944.,_> YJJ+.>W8Y ([ MU2KIRW#XD 4$Y#'(_E6E9Z)&Z %W5L=3R#_G% %#<>/NJ.WO39KH1,3E0<^F M<5K'1XVC(PTA/ P/TIFF^!7U+6(([FX72+*YE"&\NE)CCR#\QQSBD%S&N-41 ML88LW;(-3Z?;Q7LJI,YB5N PXK[)^%W_ 3YL-=T"&^UOQ ]VUR3]G;12DD9 M&,AM[=U5MN6)/&!C Z\U0A?LY5F&]CSDA M31 K*"6>3/4*Y Q36D612%W?+QN)QZ\4S:_.>.XQ3 E=QN;+DG'J<&F[L=5. M#W!QGK357YB<@]L8IS-M/(RM589OFRR97 MMG\:LN.22,!A@+W'O0!(T44.,MG(R1FH9)$;;@8/0C(%1_>;YCP#]WUZU(JJ MT@.,>XQ3 :\9:/"D<=,C%*L0X)&0!C /-*T>Y=ZMN7L/SXI%8\ C!QGJ!^%2 M!96-1@@GI@9).*&VKD@9&?I4'FL-P# 'J#U%,61I% ('RC)"\ TAEK[0L>>0 M![\@U#<.>N,A^M:NG^(+FTR6D^;KD\FJ!;SI M"#&P(/&0"*ECM7>0A06)&,L !WH ZNV\<.=IEM@><;D;!/H:UK7QE9RJ2 Q< M'E20#7GDUJ88SO# 9P#FH1(H7!4@^N<'OS57%8[N^^(L:EXH;.1I5^96D4$ MYZUS^H>(+W5+@3R!L Y52QP.*Q[B]&T;001USQFH%N69FP^PYY/>E<=K&I)J M4DC$22D%A@G/MTJL9%;D$D="V<$U4:-G;=N9VQ]X<=C0(W_B&"?XB*0#I+87 MM:*6MU:??=#M P6ZCK5>S41Y 0"0#AASFI8]4$+.KQJYSD@\9 MXH U]/CFF\JX,( $FU]IXZ'_ KV'7H_!FH^ ]$OK[5S%JC6JR-:1QD9('7! M[UX+)XBDBVQA (^H .".3_B?SJA>:X-WE.A**,*,GCVZTAGLW@_]I3Q%\-V% MKX3O9(+%&$BPZ@HG6)AGYX]WW3R>GK5O5?VKO&/BB>X/B9X]-CDGU]J7*MRU)H__9 end GRAPHIC 37 image_3.jpg begin 644 image_3.jpg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end GRAPHIC 38 image_4.jpg begin 644 image_4.jpg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image_5-6.jpg begin 644 image_5-6.jpg M_]C_X 02D9)1@ ! 0$ 8 !@ #_X1#@17AI9@ 34T *@ @ ! $[ ( M ' (2H=I 0 ! (4IR= $ . 0RNH< < @, /@ M &UL;G,Z9&,](FAT=' Z+R]P=7)L+F]R9R]D8R]E;&5M M96YT#IX;7!M971A/@T*(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @ M(" @(" @(" @(" \/WAP86-K970@96YD/2=W)S\^_]L 0P '!04&!00'!@4& M" <'" H1"PH)"0H5#Q ,$1@5&AD8%1@7&QXG(1L=)1T7&"(N(B4H*2LL*QH@ M+S,O*C(G*BLJ_]L 0P$'" @*"0H4"PL4*AP8'"HJ*BHJ*BHJ*BHJ*BHJ*BHJ M*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ_\ $0@ H@&0 P$B M (1 0,1 ?_$ !\ $% 0$! 0$! ! @,$!08'" D*"__$ +40 M (! P,"! ,%!00$ !?0$" P $$042(3%!!A-180'EZ@X2%AH>(B8J2DY25EI>8F9JBHZ2EIJ>HJ:JRL[2U MMK>XN;K"P\3%QL?(R;GZ.GJ\?+S]/7V]_CY^O_$ M !\! ,! 0$! 0$! 0$ ! @,$!08'" D*"__$ +41 (! @0$ P0' M!00$ $"=P ! @,1! 4A,08205$'87$3(C*!"!1"D:&QP0DC,U+P%6)RT0H6 M)#3A)?$7&!D:)B&;IW"37$, _VLG%'*NH79W%]XTT-TSF64CO M''C]36!-XTC#'[/:NP_A+N!_*GVG@&&49DU;=G_GG'_B:TH/A_I<>/,DEN/7 M,FW^5%H"]XS$^(VIPIMBAMU/8MEB/UJK-X_U^=CB^$>>T48%=6WA#1XXQY&G MJK#NSE\_G4"QQZ9*/*M(XSZB,8-'-%= L^YR#ZAK^J<>;J5SG^Z7Q^E"^%-> MN%+C395'4M*0O\Z](L=>B+!9,^9V0(*-V#)SCZ50U&UNK[2K;S8)FDMQY,CJA*L%^X0<=<<'Z5 M[4;IID,;3J%/! Q7G]U$^C>)Y(K]!PVHQ@>OE'%:2>)8_-,+:C&&'.WS ,5=B\00 _ M/J$+'T\T&IYY#Y8F0GPNOW4%-5MR/^N9J1?A5J.,MJ]LH]XS6P-5C=LP7(!] MI54?J:'U.8L%-S P/4APQ'\A4^TF/DB<_P#\*XOFD*)J<+\X!\L\U;3X3ZCM M!?6;.(GLZ'-=5ILUJS W%_\ -V3('\JZBR?38UWB>)6]58<4O:2#DB>9+\(M M;E8""_MW7/WFC91^M6O^%*Z\1QJ=D?\ @+5Z9_;^G6X"K<+))V 89-,CU*YN MV^1]D9]3UI>UD')$\HE^#>M0RDB_L78]@"?Z5;DU_P ;>"?#MQHNFZS#;G30 M6S]F1PH;]Y\NY22?F[YKU^TFMK9?F'F-Z@5Y1\00U_JOB,P#YI(T"C&.?)05 MPXS$5(1BXNVJ.K#4XRDTU?0X8?'+XBQL"?$(D ZAK*W&?RCJ?_A>WCF?_F8' MM6_Z\K=T_P#1>1^M>=7FEZG9-BYMI%XR"!D'\J;:VTMU'OWI'&.&=VP!7L.2 M2NS@LV[(]$?XS?$T)OA\1B9/[T=E;-C_ ,AY%=3\/OBOXUURXN$U36?.$9&! M]EA7'_?*"O$IE6*8&SN&.!RX&TD^U>@?"A?](NL]=P)/KS\L;ST.#EN[1.]L_C+XYN8!')XL^SW>[@2V%OY4@[ M#<(_E/UXKH=<^+?B_18-)GEU52LK$3K]GA.\#'?;_*O#KJZ^S3&&2-A*IPRL M,$&NN^(2LWA30F7NS=/]T5Y^(N.-?_\ ).#_ .(KSR73I(OWMB?,3J1W'X4D%T"Q1QL< M=0:0'I*?&7QZ?O:__P"2<'_Q%/\ ^%R>.P/^0]_Y)P?_ !%>?K*#QWJ0'UH M[4_&?Q^K<'/\ XY5N'XQ^-Y "VO?7_0X/_B*X$J&&,4B9@<$CY32& M>EI\6_&C#_D-Y_[=8?\ XB@_%KQM_P!!K'_;I#_\17 PS*PPI%3B7G&,T =8 M?C!XZ5R#KG';-G!_\15V#XN>,W09UG)[_P"BP_\ Q%<)*RNN".>WM4,$ICDP M>/6EJ!Z/_P +5\9GIK _\!8?_B*/^%I>-3_S&P/^W2'_ .(KB4E)Z4\2^M*[ M&9D.G:(APP:4Y_C<_P!*N)9Z8N##!#'COM!_G5>[\1&+7X;2>"*2"5D.YXE/ M!]ZH7^OV\&H3VMQI"8C"XA_M"U?_ &D$ MBC\>*V[^P6\LX#I=^EJ"3N+*5#GU[XI\ZOJ9.A.^C3^:-2TUY[23=;W4UHQZ MA"0#]1WJ\?$UC<*1J<-M<^LB#RG_ #''Z5PLOAV_VEGU6U90<$B8XS^-,;PO MK?:N.! ZG=5)Q>S%*C5A\43L+C6/#<89[;4IK:0#B.1=X_,?X50_P"% M@VUKQO,X'3"X)KG6LICH3"[MS$(\G)3#*W;\ZH6;62VJ/)$LLAR2A0$X]=3'!IC'L=Q+']!6%IUS'.CE(?*" M, !@#^56]4U+[']GQ*(B\>0Q/H<=*?*MPYNA834]:D;_ $6P\G/.=O/YDU)) MJ?B:3"2W/DCWVC^0K#76K^09COK8_P"ZIR?PICZK/,-L^HW!_P!F.#'\Z0'1 M#1M7O 'N-6QGT9C_ (53N_#:6J_:O[29[B([E+$*,_SK$>Z4$;Y+Z1.X>8(* M3S[%^EE$3ZS7+-G\J-1:%_3-.T^]N&FU&Z6 2G* 2C/ZBMQ/#FA$9&J?E*G^ M%<9YXCN!M6W**3A3&610>V#S5Z.]C[P6'XVS4FF.Z.H;PSHP7Y-0=C[2I_A5 MFS\(:-(-TVL&+V\Q,URR7$#,&-OIWT,4@'\JN175J_ L](_%9A_2E9]PT.J_ MX0K0%7<=>91Z^9'1%X(TVYD_<:T^W^\S)7-*MDW,EMHY]O,F']*DQ9_P6NC_ M /@;(/YBEKW'='61?##3U8NOB!@3_N_XU./AY; [8_$DA/8(H/\ 6N*+VB@[ MM.T^0?[.I,*K2ZC:(5CBT=%)X7R=1+$^V*5I=Q71Z''\-KANGB211_G_ &JI MZEIM A9],U"+W%T2/Y5U?A^;[ M5X-G,+M&TBMM:5MQ4Y/4\5YN8I^SC?\ F1W8-KGEZ,XG58=8@C6"5+M[=1AV M#;@_'MTK171K?4-!)V):A(PXV@%D8=<]^16CC7+11E$ND'=&Z_@?\:&UB(1L ME[:-;2,,992,_P"?K7L))*QPMW9RL_A>^GM4N])Q>1])$C/SH<9Z=2*['X5Q MRPW]U%<1M&^0=KJ0:QI8M&A8R0W-R),#RQ =K(?KZ5N>'-=NKK68RQR8K;9O M899L'J??FN?%8=XBBZ:ZFM"HJ5139RWB:5?^$^OE_P"GO'ZU-XY?R]7M\@C- MLO/YUHZMX/NKC6WU&VN$D,DWF,CC!'/K67\1[:YDU2UEABD:(6RJSJI(!R>, MUC[&5.M25M$FC3VBE3F^[*6FSQZG9'2I<)+DM9SXP-_="?0_SIEOJ,5VOV/5 M]+!FMSL\ZT;RIUQQR.C']:Q+6>YLB"DK(N1GBD]F==&_LJCMT.-A9HGCG0 A'#*2,C(YK5\0V$-P(=8L!LAO/\ 6(.D M?0U#,ABF,32(Y !_=MD$'FH3"K);H1(ZE#U4]ZRYKJ R[M/RISS&QP#]#0!O*WO4 MNX,,'FN5&H79D94)'/W<(9,H3@>M6TO[?9NDD53[F MN7%A>2_??\WS3SH\B+EY5Q["E9 ;\NLV<:\SJ3[)9?-4V\BR-G&#TX'6J.G1Z M5-IT<75,UI2<:3I%*PTYKB9(Y+J3RRP! &2 M.>M=7KW@J_T6#4H)//:&(*(7FA52CCQI%>>#K;P_>V\D:PR*;>S MVGRF7)RK$DX.3G/Y8KD+J=6FFBC\/V6G!E8+Y19E8@9'#DYZ4HQ:;-JDU.,; M]"GIFI2[C&\\RAA_"^,=>U.MKEY/DGE#O(K _(,@$<=NM;MO>>'=2\&WSMHM MGIVJVKPFWFBFSN)[;48G0!H]X&X\CG_\ 73MH8RTV9+9/ M-;PS1I*&W,7QMP6/8]/3M4M_=WWV.%515>/KN49&3SUK/GNIXKEEERAR< TM MWJ!>1L?/G').32<;JQ2F[W+>EOJ5]J36BW*PMM8Y901D*3C]*N7\$TNF 3[) MV51@@X^8GK5'3KYHM0A=58=0?E]014B:@/DMI58LZG;Q@9!)KDE"2J+E1TQD MG#WF53IPD,2VV0S#D'KGO6UI'A"ZU.)HHE9IE;.5&>*[W0/#>C7/@];[[)&E MV;$S?:"[9#;]2ZV2-"ZC:[QJ,C\3 M7%^*%%CXIO&NH\6TAA>-XS\H##)Z<&DIRY;L?+=V1DR^![-9C&);G(QGYU]/ MI3U\!1,N1=2*!SRRG_V6NNDT:WOKDR6\D,R%%*LOS Y'M]*VK/PE%'-,5@$B M10N_[EP"V-OJ..OK7+]:3V-WAY+<\LN/"EM;R;'U%D)7L'PWH4T9S?731@<@*0O\JAZ?>).;J_BGC.5<*]/4-A",[OF/:OI?6](L]9\) M.NN2-+I_EAF=HU5\>N1SFOFGQ=8Z9#XFN(/#WF?8(\+'YG4' W9S_M9K54%4 MCRS]2HU'3=T93ZJR%OL8>$DY!5R,?ATJO<7MS>'_ $F9Y,= 3Q^5*T<47^LD MR?[J#-0/3 MD>@XJL)Y7'(/\J+@>M6^MZ9=MB*Z0-_=?Y35[RU=?EPRGTY!KQA6/>0+]!S5 MRUUB[L6_T:\E7_@=5S]R;'HM_P"%=)U YN+-0_\ ?C^4_I6?9>#TTF[DN;"8 M/F-D6*9 ],=427R[ME*N,@_*:WK?5=-O M0/LU["Y/0;L']:CUS38[[1+B-X1+M4O&/1O4>] M5O?1[@UHC6V1\R!]RD_0UT\ 1_AW?^:8W7[3&

X[CU]JY*6QNA)(L5LT@3 MJ5YX]<=:Z+24D_X5AK0527%S$0,8[UAB[*$5YK\S2AK)^C&"T1M#M]3T)C]I MLCY=TIZ\_=?!_*L]+N*XNYYM5W0JJ980H%P<@9Q77^#_ M?ZW\/KJ[T^>.* MY;S8&A>(?O5'.,^O/%<^GA348=)GEDM[M@?D*2Q;E7D'[PZ<5NJ4D[7O?;N9 MN2?RW,@,UR\PTQ&NUC&>!@[?7;U_*J$B7K,AV[ Z[EP<<5>;3OLRK*8GM\]' M4[E_/J*MWEQ(FG6D7DQRIY0;S57Y@=QSSZ5;OTJN9$\K+316 MSDF1,,W\:=14!E:UX?\ >1L<*_\ C5?[5Y1Q(XI#J00_N\M[8IB+:W>>4&![ M4\W+NN-V?:LHO+(2T\3 R]-I(Y[1MP.HK,O=>CT8.N+>*4;]B/&S$JW0$_G^=:VMK%$[ M[LCT]);@0X.!,2$)7J1V^O%:$T-PBJDZQE=_ED2E1M..._'!KG-&O;9,LURL M8C.4*<@^N#6MJNJ:.K$65TUSE 06'1NXK6ZM9V)L6?"^E06VKVVX6MV;C<(X M6EX'8!C@XYK#\>6@TK6/*2(!4[9P <] /:LA=7U"UU9;JU.\*1@$ =ZMZUJL M_B&16UIOA MJ34LF-/D4X)ZUTEAX52T(=8'WXY+#-92FEL=BBSB;+2+V] :WA8C(^--PW#[YST% M9>TET-.5%S1;_P"Q>%8=-GY=(#"Y!X(/_P!:N=ATFXMKB.2VDB6*-_E^4DA< MYQC.#6^NE72H%2)\'[V+/"\>C>&X+34IA-=M;^8LZR$"0YRN!]*=IEK_I'D->PQ^8> M2'^;\?:NW^(6CPW%AI37T(9TMQ X!Y]>HJDWU!I=#PS1]9O=$F80'?$Q^:,D MX/N/2O:?!VN0:_#=3QR*6^S,CPNV)%)*]/4<5YUKOA^&&W%Q8Q_*HPZ=<#UK M&L;NXTVX6>S?RI4.0R\5A.E&3NMS6-225F?0'A]YKCQI=W#YW6\;QK'*NTA0 M%P3^=:FHO9W%W.FH6R@Q6L:YE0,N2<]>@KB? WCO2KN]E?6T-K?31D/,KDB9 MC@8 [<#Z5=\8:UJ6FC49M'@2XDGN((R\G0J(\]!]163II1:0GJS7G\/:6UB9 M+=6MW9 %:WD9,DX[ XIFK:8]I< QZS=D+QLG1) ?J< _K6%9ZVU]K\-C#8RP M!ID4W$+?(<8YQC':JVJ7OBC57E%II;#$O$DF$!7/.1GKBN-4IWV#H=YK%EKV MI>")+&VEL7NI(UP5S'D=<8.1R*^6/'UE?Z;XXU"WO81:W">7OCC(PN8U/&.. M^:^G=,\1))XN.GF78BH$,,@VMN"@?XUX9\9+9I/BQK+*Q&?(X_[81UZE&HY5 M>7LO\C":LCS07=TG20GZ\TIU.4#]Y&C_ (8JS-:LO7G\*R[UFAV@)N+'I7<9 MEK^U+=N'MV!]5:C[1:R='*_[RU02":7E8&_ 5=@TBZESA N%+$,>PH ;)&C# MY74_C55;:62<)$C,2> .]6(D@8_-<(/85;BVV\R26K,S*&W$XBN+J*(E&8$GC(&<9]ZTHK#5-:C+6EV\FWJC/C%5QH=ZFI2V M5TI26.!YBQY5@JYX-3-J,6[V''5V,;[(8+D+)&A4,,L)<\?A73^'O$7]ES[) M TRM(<;F. GIUQFL&UNK3?\ Z9',J_\ 3+&?UKHM-L_#MSI]U>W$LZ0121QJ MTN00S ]A]*F34;-CBF]"7Q;H49,>I:6Q$4OSQNO53W7_ #WIWA*]DC\#Z[,^ M&:&2+/F#.23SFKNA7]BTTNBRW4=S:3\12*WW6/3Z?XU;M= 6#1O$>AR/Y%Q= M"-E.,[@&^\!_.L<9!U*?NKJOS-,/+DGKV9V7PKD%QX6N7$"Q W3\*<@Y4>(_!%B^G:?]CN+667S&+J0ZYP" M1GCH*ZS4M3L$T.;3M0MI9_MUM')N4@;&V\$<=01FG6@I5*:3M:XZ<[0G?K8G MMO#&D:EIFHM=V"QS1W5QMD4G<#N)!R.W?%>.:EI]VRVT\9COT6$JS1/L8X8\ MXZU[+X2U.&Q\( ZS-^_GFD!= 7W-TR?0GKBO.;VQC:..+%NS*6P\A,3_ 'NQ MZ5K5DI\K6NK,X)J]S@ =]C.%*W69=K1DXWQG(!QGK5J]LVLTG\W$@ M=48,@VGKTQTJM@C3K=[>5HV$K]3M/1?P-7S-,BR96\\)]X@BD>>-^BEOI5]X M8S)="XME&Q,J\8QW ^E6(=$ADTTWAGD/[S:(U3!Q@'O]:I33)<6C&$LJ#*KQ MGO4@GF8<*GYUJ7%K864[P7#R%XVVM\W?\JA\S1T_@R?L:?=2J M##.&M9@>A##_ /77-^%=$MO#WBN\TA8U2*YA:' Z%2,C^M=9XT3[1X%:YJRZ7J%UI4R,LMG.\1( M'7!Q7&:QY>HS-*K/N/3=SC]:]"^-VEC3OB==S1C$5]&EROOD8/ZBO/.!]XJ! M[UJZLMB.1;D6FB;3KM+F.8ET[%<@CI@@]15ZYNYKZ4/<%25&%"H%"CT %5X MS&?F9^!^%,>\(;%LF[WZ 5D[O4O8M+ F^0A%]34L<]K#.@*,1G!G(K&M+V74E:*?DH/] M<.#]#ZU=M$L[99<7(RXVN6;^E3>P&]>:VA4B#G_:-9:V$^J[IKB7R;9?OROS MGV4=S5:> VZ>9&?-[@$Y&*A-S/*,R.[<8 [#Z"F D]T+2XABTI?L\"R*S,<% MY2#P6/I[#BO6]3UZ:YT0)>2JTCM&XDDYY*=AZ5XO.2)%)!X/I4NAZG?7GB)H MKR[GDAPRJIC;[A %NXX-LH^0HY8.#[8KE-4LC97A0KL5OF0,0 M2!^%=;; 2:2AW,TMJ<9)ZJ>?YYK+UC35N(Q)%M#-\RD=,^GXUE=,NS.;27RV M&#@CTKNO!_Q"?2#]EU.%+RU=LEG'SJ<8R#7!,AS@\$=:%&.E)I,:9]-K/H6K MPVE]HUW#',TJ[GC(!X!/S*>O3O5FXU;2X4:*]N+12V LT4RE6)]1U7^7O7SE MHNN7.CW0EAD)&"I4C(P1@_H:]/\ !EWX4UB:W5UE@U$2+@-)E&]?I2NU?0=M MM19VT73_ !(;F74K*Y2>Z>3@[RH'')'K_2LO6? 6F>+]4GUC1]>LH8[DC;!( MYRI4!3U.>JDUZ'>_"[0;B-?LR/#(IR#NW*WL1Z?0BO%_&_A.PTSQA?6EO!Y" M1^7A5D+ 9C4]3SWS5TJ#C4<_(SE--%B[^"FM%3]DOK&?TQ)BN8U/X*^-A(/( MLX)(P.J3#)J.33FMP6ANKB(*,Y65ABL^3Q%MASI7C34HV ^XQ=1GTS74^9&: MY6:VG^ /$FE1.UYI$ZLN,84-D=^E/T;0Y(1J<]_;3P-#I\I594*[WP%_G79V?QJUY& N-/TNX3/.^/!-4?$ MOB^#Q5K<>I:CH=I!B(1;+>3;NQW/'7FE>5PLC(TK4+C2KY+B.\@&W[R!LY'I MQ752>)-2U&%FT_1X[@M&\8D4EBH9<'CZ&J&GVEIJT-S-I=N]NEG TUP.'VJ/ MXN@INA>)K/1;T7EO>S.QX:.6/Y9%]..GUHNI>[(+6U1B75K/8R"#48!:R[ V MUTP<>M/0R?\ "/W4R2YL$GC69 !RY!V\?3-=WK^KZ%XJ6&1O#^J7$R?*);8# MY@>=I]:YN:XC@T.^L=/L9[2)KB,R22A;>$Y M=3BUJ0Z3(;VY-M*K1.W 0J0S=1T'-=/!%XFLO&9UIKC3[2_CV.\#WL28 0 # M:6SRN..^:.9J:70+)Q./O-=U[2;IH7O#*,_*)E#'%=/XG\37%C/I"FTCF672 MX)"/RK$D MU72+I_WMP(VS_P M 5KLX_#$Z^%]2M)M/N(V:6&3RS&&;&?3 M[,^1]DO(U,30F,@RJO(<>^.#^%94Y*$Y:;O]"Y)RBO0QY],BU"U9=,U..)F( MY1@<_K6=I/A+4=+O+B9VCF1[>1 4."6(XZU6L_#E[K>IS6NFPY,*&0 *0S@= MAZFFO8>(M)?;+9ZM;@'_ )YN/TKJE&,E9F46T[H2\MM3*.+BTDC14P R;AU& M>E4(XK=K&W^TVSA//;<$R"/E'8^M::^)M1M5PTLQ;L)XNE:FBZW_ &U?&VU" M&V$*Q/+)*$)PJKD\?A4N$7J-2>QF6]C;A;AHAN#+GACGL?<F1FL>?2X+>$R[2#N; ![#'^-=5KQ>ZUBZ MG&P,TIW1%AN0@8(/OQ6'?*QM74_*5W''J"!_A5)-,EM-&+A>/]'8CL2^,T\* MW\-NOXRFG(H>W&T\HC']:8P[U[5H?B!?$/A66U$>Z M:QN$E /3GT)_&JDUK9HJ(5RT0*J$6=B;B;:@^[D9) M_#M6_I/A>S@PTD9G8'AFX4?05IZG?0VZ^7#@?*><9)-8VF:AJUQJ 195\C." M"O.*E\S6X:(Z=+-5&$.W\*3^SD8GS#N^HJS# D]W)%>,OVCML^[SGUIA\%3'_F),/^ '_&NS'A MK64^:YO%@D*!Q#(J*1GIGK^IS7*R^,%TZ_EL]1L)I3'TDAP,GT(/2J]\7ND, M7@Z>-'"ZGRW0^5T/YU4_X5ZQ)9]48L>2?*_^O6J?'%B(3(-(U!E'4ADHT;QW MI6LZU!IL5A>123$@,[KC@9HM,/=%M?"Y@M1#-J$DN!][;@TC>$+=_O7MR?\ M@5/O?&MM S):Z+/(ZDCYYOZ 5DS^.]2.?LVC1)[L&:E:0>Z73X%LBU-FN]3>8W#W6V ] M(]O/YT[2[BT/02/+AD".T09=K,G4"LEEN(;J*U6Y\R (?O'DG.0:K0WEZ]M# MB0!74<[:O7MZMCXAM+M[82V]U#L028 WCAN:F,>A5RIK.FM#Y=TH^64MOTJKXBLK3Q%XDO-2AU MNSB2XD^1)7VL N%&0?I7EBN<]2/QKJ;+X8:GXIT"WO[([%G9B)-F2=K%>N?] MFM:3DI6Z$5$FK]2W?^%HVADA;6K(K(I4M'*"0#Z3 .T*\! M4/NF]V8VL=IX%@^SZ??+D-Y<3C(Z&N U/X?WEW?37%M/%MDMK[3897 MUZY@F8$-&001^M8RJ012BS6^'_A6?PU_:\&J7EC_ ,3*R>T4"4-M+#&2,CI7 M-CX/>(5F:+[18M@\$78 Q5C3_!T\VI7$DZ-+$J-L&[)%+G3-1LGT^[MH;1(+ZVCN5W,R9^9?4XQ^ M5'3FCGA+W0M):G,>"])O?#^ MK&[CL)[ES:30M%@ CVD25DN%V'<#EQ[^PK&U6V2;7+F\NM(:.Y:3^\)C['JVGR2:1<1%+_+;LKNP) !T*YQ]*UM7TZ[L=2ALX[J M62W6+-C-%*5$D1)8#(/)&:S] N=2BAM;.S\/I=Q21/&L)EVB52_/TYXK8M;& M_:W?PWXGTYM-\QRVEM(X<1-U\K=Z8Z9JJ;35Y=R9)WT+.F3W\6B:@PNKY)56 M+:PN"7 W'H$_#_ (8UJW?3 MYM&A@D>(IJ5J&89D5AANN<'J,5L2_#;PAI=Q'%;Z1'%;W:/'/;K7I;;SKJ?3DNR8WC15!CW<<@ ]#6SX0L;'6/B7J%MII:"Q6"6-XG MD)V*YV@)GV-;/BCX8:'X>8R6RR3O,K!A(V H [8Z5K&I%>Y+62W):=[K8X.; M6_$0\-W+/%+)>?:0%21"Q$8W4!O#FMZ9/*;:XB>'S%;=+PQ4CI[U7]>OKU;NWMT:9(Y+NX+[% 4 M[>F??GBNM^'>@V,?CO5=+O;6">$6^\1C+QAE)((S^%5?BO96UCXDT&&SLHX( M)9'>4QKM)9@H.?K6FC2%KJ>0S7T,EQ)/)9%W>3+O-DLQ/4]:FN9[>;2X5-NL M0GE*[DSNX /]:W;SPO:PM?LMF3;*X$,A8[O?/-8%Q:10V R/(NCM!/0%5J. M:[L,RWMP9'C@4@K)LR>=P/\ ^JGKILA>+,NS>N]?EQVS70>!VT]O%4D6JPQ7 M-K(V61^B-3[URFKWV9XG;D9* M'Z&KNI7.86.>E3FF*]UIT\4L AV9 M^829Y_*GZAKNG:/&2!MI*AR,'%.SL M&AH7%]]IN#-/(6)/&>PJ2'Q->V,T+6K0.L,GF!94Z],CCZ56GTR:,@$=>GO4 M!TJY\Q!)&Z(W1V4@8J;6U'N=Q'XTAUV:74]/9G=V"SJPQ\W7'/3ICBLR:RFN M=2GO9H%NC<2&1PO# GT[']*QM/MX=/O)A:1$(EOE"$)W2;N_KQ7;^'$EN+;S M+I-KD\ *0 /Q[U$I,M1N<_Y-I:70FM@9(V.+BT9<.H_O@'GCOZURLT-EIOQ8 MT_\ L]U,;NK';T&X5[/J>DVCW,M]+)' M"YC)R&(P/UK)FT\Q9WR1 CJ!("1^5)JXB:75;?;A'D'_ &L:XNYY;@J&4P= MO6II(HU!^;/T%59 45&V$*X.W/M32$V>D^%K2&Y\.6[S9)Y'7T-+XGTI;W28 MK>!PKI(2C/R%R.>*;X0E \,0 G^)OYT_6KU81$"PY8GFAZ;#6QGPVC11(LHC M9U&&([U0NK)HE*Y!C=CY9_NGT/UJV=5M^[_I4QK-7'H M8F#]#WHY'7D433K+(2G4$JV%QN([U&9/>K$*R'^ U],_"-<_"S2"W7]]_P"C MY*^9-W>OISX1<_"O2/\ MM_Z/DJX;DSV.HU2_M='TFZU&_<1V]K$TLC'L ,U M\3ZWXGN?%'C2[UJ[8A[F;\1KQK7GW:Y>?-G$SX_.O9O! M!VV,I/&8\5X?J[+'KEZ9&P3)+#3/$&H6[?VFL3V.A%IP?@OQ1KMK:2:;IR+S_ +5N M5LY1.=TACW?+FJGPBL5M=3O8]39$,MC) -S?>+, !^51F^2'Q"VE7.IWEE;1 M2F-H2Y7: ??L:Z]&SCM9&MHKZ]!=::UC)9(X5C"7#$*-XSG\:[G5_#/Q"\0_ M:[&ZN-%(MEK\SPK&Q+"=[;\C2T[4-2T?5'O+N'9K6EJ(=3MU&1=0= MI5]?6NX\5:@D_A>*_L)1+'+#(8Y%[AHR,UXQJ6I6^D:PNLVGB.^U.YC(1([L M*WF1_P 2L1T'I70KKB0:/MMYO^)%>))+"",FWE*G,?TSTHKWE2ER[BC[LE@:G:W?B*V-M+OV6K[N.GS(:Z?XH27"-;3V4Z0LC1EC(/E91K/&TJ M-*82%Y/S9&:I?\+&OXIAHZ6#:@T;L)?LZ'*X..X_&N7O]8U+0O$YNI$CCMI' M?8XC&-_>;W.:4FE;L:B>)3X9^)&N74%N"T4 BC3. 2ZC!/M MEJPO%?B*^UG5()-5\A)A=B-8XSDAD"AOPZ5CRRV]W-=3->27,WD%Y;IR0V1T M#)T..E5X+22=9+R6:*18D\UOF._)X!'XXK7F25ET,W)O7N;?B373%>7^G1V< MDC_>+J#A1C.:X"[OC-#/&88=[$-YBY.X =.:ZBVN]0U ^=6W=ILJ&0@D#C./<5=CM+K47,\0, M 8[E 8D ]\5Z]'\,='7)#1X(Q\S$@_A4G_"LM.(_=F #ZT7+469%]<;X7EE; MR;51DNW!;_ 5Y_K.NF\D:&RREOTST+?X"F:UK][KS;Y!Y-HAPL6>_J?4UC;' MQEWF3M_KK@^OH*HZ# M>/::[:SJOF,'QC.,YXK/)W2%,\CK4D.8IT<=58&JZ"OJ>KO>17=NS1DK)$M0S0T[35-3NEC%O96+2A_P![&DH)"^HYZUTN@7VHQR2#5[:) M$!&PQGJ/SKGH?+T6!5\B-+J0 @'"\>YJ2X\66=A;EKZ9 V/N*X8D^F*C?H7L M1?%SQ,]I9V^D:?,R/-B61D;!"CH/QKS"YU2^(1A>7"Y4?\M6_P :-[NI_]=JW*0V9DW1@EMZXKG'#=,'\J;;.L$[2-&2Q7''>AQ$I&I(QS38V.\ M#/4BJ;WN3D1MS[U-&QVJY&.^,U#3L4FKG6ZOIB?V:CVR;6A7H.X[US!DQQ77 M6&H+>6(<8_NLN:Y;6+1[*\) Q'(3Y3AI6P! M[\UT7(L=%X-7.GMG^[7F5YH,?]IW37%O<2%YF97%N0!SZFO3O!W&ED_[-*X+2SON5(QR:]"TITA5"Y51[UQ M3+.TTRVSM&T&NNT^U.#E1TKE-,O[=-I:>,9_VA76Z7J%K+,(8[F-Y",[58$X MK&S'8D#EFZCM7"^,;V:V\/QA&PR.,>V>/ZUZ#XVOK33AYEXY"M)@ M'%>;Z[<67B33F&FW<,@((V9PV1WP:UIZ[BUOH9&DV6H:@\EOI,)FG< %5'., M]CV^M>P^"_ >D6^@KJ?B5KU.CN]5TRPO\ 2S;I=6\\P\[DRO48]Q5.:*,H6CU78<$#**?:L8-ILTGRV)O#&G2>'/&E MW]HD+0FWD8'M@E<,#Z&O3_$MQ8^(;(8G6/RX5)#C(W ]#7F>EW+M%%I_VV&> M]A1C:R*1^\3^*)A_*NITF6"YLY)2&E78NY9.=I#=,>U<^)IO6:ZM!3?3U""X MU*&%_P"QH;:XEP%W&+ /U8UE^(?".M:^8I'GM(Y ,N .I].G2NHCO%'$9 Q_ M#Z5*MS\V2P'T-=,8M(3UW/,V^&>MH'$*6[;UVMMD^\/2MGP_\/+E;F[BU>PC M6W:,>4X?/(/3KGI7=QWVT_+R:F&I;!EF'TJMB/9Q.1^--;P?<=I& M_ UUBZO;=S5F+4;9U#A@%SWI[ CXQL4DG\RVB5-T@[]>.P]ZJ[MC\C!';IBM M>5FT7Q7N1R560.K$=0>:K:_#Y&LS&-<1S'S4^CU,;--S[4AD^BPZ7!J0DUY;F:UPW)J"9XA(WD!]F3M+8SCMGWHZ MTN%(P>GTI@=E;3O/HEI(A3;+NH9:9A>(+Z74-6DN7F9]W0$_='I67^=.\W M'!7/O0&&,;>*I$O4C+'UJW90W$S?)&Q7N=O%7M+LK>1P]P S8RJ'I4NIS7(D M\NW;8@';C-*XBE_9VH@G$0]N16GX=2ZAU0_:HBB[#@]C6<(A@9N'SW;=].U3 M64URERD0E,BDX*GG ]: 1T!<'5N/+R&Z%3N_.KWBBXGM]*TN>(*4V2*V>N=U M/T:SFO\ 2KZ?R5,EIAD9APWMFL34O$*:EI\5G-"(O(+=&SG-27HRA%=27>XN M !C/%5[V"0('C8^^#26S!&9$8L&4CZ4TL!GC]:KF(Y1(](U>?0[S5H-WV:R* M[V)/))Z#Z=:?%=M+&K=F&X?UI@D)4JI8 ]L\4.N57C&#VI7;W*LD;.AZD8+K MRB?EDX_&NAOXOMMFT;'YNJ_6N$7*L"I.0<@BNQTV^^T62/CY@,-]:XZ\7&2F MCKHRNN5G/$,CLKC#*<&NAUI\_#C1PJLQ$S9 [_.]9FLVQCD\].C?>KJ='@6X M\+Z/)*V%AE=P,9R=[UV49M7>S, MHJ?VCK/"7&E'/]VO(M9N3)=W2YQASWZ\UZWX4.-)_P" UPUUX7N%O9)FC696 M8G Z]:WGLA15V9.D9$J5TFH3%;6WZ94D\TNF:+;B;$C-$1T#+6W>>&#JL"0V MUW I4'DG% ML72/AB\]O;175WE;>7?OB;@G.:[FUTC2=$N#)')^_495S)DC/!K652+BT3[& M5SF/B1:-J\ZV",R_/DL.U>>OHM]X2N2MG']L>:(8\V+/.> .U>F>(YK _P"D M07#R21Y[DY/IZ5RU[\3/LMB;:"Q5FSM+R?-M]P.U8132+Y4GJSEKN]NMMEJ, M[+#+)$Z3V<8.8R">>?7BJJZQJ%S#;VLB;E("[C("W7J>"#_ M $%=)H/V75='NEOMTSJ".H&#G@C'IC-<=Y,UWK'+'-(Q1XA]P@=SGI2H\R@HRU956JE*Z1EZ;JDUU=26NIN62$;8&> M$ L*Z*&WD:$"%X<8^ZRU?;P];K(0T70^M*N@6V[A"/HQ%-[FZ6AA7NGZAY;/ M!863R#E)%.QE/8@XJU8:G-;>9];7_"-0.O#2C/\ M=RN*US+2:61N6=47JI3RG/NO3 M]*-1;[;H%K=#E[<^4_T/2F61^TZ#=VO4Q$2H/IU_2FZ6X>WN;%R-LR$KGLPY M%49&3G-(>:4C'7K24 )FE!/>BE )H U=)!*G.0&8#010SF14B M&5[ _P"-6=+1(+4D;2\:%L'Z5SLDDDTK22G+,FQMJ1 M9;AX!M (+,!N^E1"QNVM\[@N,$]^*N:?)&LBNP) .2O8T[71/4ZT^%HS; M/+'!(!QFFV8C!7S&< MKW"\4DGU+FDGH;-M<8A2TMD\J,XW8_C^MP M;&?PS6Y-J<5HC)$?FQ@J#S^)K(DU-]0A_?PQ?(WR.JX9<=P:&K$IF++;R6UP M\,\30RJ""KC!!J#K7>K /%.@O=:DXAEMQY4$JKG//\7<@YKCWT>^68QK 7(/ M\!SGZ5*:*L4U[5(#C%$D4EO*8IT:.13AE88(I1CG\Q3 ,]ZU=$NO)N3"WW)/ MT-9> :56*N&4X(Z5$X\T;%P;B[G;2VRSQ,C#((K2TA$MM%M+6X=L1A\ 'CEV M-9>FW8N;-)01G&&'H:ZBQT^&ZTV)G'.#S_P(UQX:34W%G572<5)"I);;=JL! M]:R]8EB@MI"K!B5( !K0F\/;@3 ^#[]*Y[4-!U*!9-T)<-U9#FO05NIR.YU? MA1PVD@CI]VKJ1QR$D8.#@YJOX=M9+30[9'3Y]NY\\8)YJR(HHI"[3>Y"]ZTG M4BT8KW'[S'>3">&16/IBGK;1'D0* .Y%,%\IRMM$9&_V1G_ZU/6UO+C_ %S" M)?0')_PK'FOL6I-_"AYNEA0@L H[ U']J>;(MX&D]P./S/%7(-)B0AV!D;U< MYK06(*N!C'I1RMARM_$SG_[%N+SFZFV*3RBI(R3]36 MVA5>#Q4NZ,=.:?+8M)+8YFY\':?=#<;=5/\ L#&*S)_ %NP/D32(?0\C]:[M M,?6I2JGH.?>JU063/,+CP#>?8[9%:&1K?I6I[=/D M"N>0>M3,BQX-9\UWH:E'E8Z4 5!$1 MSBK<,D20E=I#D?>QG%,\OG)R*?&O."!]:4HJ2LP3:8P6V[^ZU1M9CLM: C / M(_*G[ 1@52T%N?(^A_\ 'XP[&-L_E69(2+A,''-%%(A!+_KC2"BBF #J*DA_ MUJ_6BBD(U[4D6]Y@G_5M_*L@444AFL%!M5) )QUQ6N3\HHHJ64>9G4-*Y&(SRQ_O4450&WJ/ M_'V_N.:IP_\ 'I116F:I_>U!%;E<]#THHK*1P+^*= M'&BH@"*%'H!BIH@/2BBM8['>2_P4WO115$CEZ4\<,,444P)EZ"IT)++110,? M)]X5(O:BBHEL5'%,8#?THHI =@*_"C'K34^_112$38XI /FHHI@34Y/O444 C_]D! end GRAPHIC 40 image_7.jpg begin 644 image_7.jpg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image_8.jpg begin 644 image_8.jpg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end GRAPHIC 42 image_9.jpg begin 644 image_9.jpg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�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end GRAPHIC 43 image_10.jpg begin 644 image_10.jpg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end GRAPHIC 44 image_11.jpg begin 644 image_11.jpg M_]C_X 02D9)1@ ! 0$ 8 !@ #_X1#T17AI9@ 34T *@ @ ! $[ ( M . (2H=I 0 ! (6)R= $ < 0T.H< < @, /@ M FMC.60G/SX-"CQX.GAM M<&UE=&$@>&UL;G,Z>#TB861O8F4Z;G,Z;65T82\B/CQR9&8Z4D1&('AM;&YS M.G)D9CTB:'1T<#HO+W=W=RYW,RYO&UL;G,Z M#IX;7!M971A/@T*(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" *(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M"B @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" * M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" \/WAP86-K M970@96YD/2=W)S\^_]L 0P '!04&!00'!@4&" <'" H1"PH)"0H5#Q ,$1@5 M&AD8%1@7&QXG(1L=)1T7&"(N(B4H*2LL*QH@+S,O*C(G*BLJ_]L 0P$'" @* M"0H4"PL4*AP8'"HJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ M*BHJ*BHJ*BHJ*BHJ*BHJ_\ $0@"K $' P$B (1 0,1 ?_$ !\ $% 0$! M 0$! ! @,$!08'" D*"__$ +40 (! P,"! ,%!00$ !?0$" M P $$042(3%!!A-180'EZ@X2% MAH>(B8J2DY25EI>8F9JBHZ2EIJ>HJ:JRL[2UMK>XN;K"P\3%QL?(R;GZ.GJ\?+S]/7V]_CY^O_$ !\! ,! 0$! 0$! 0$ M ! @,$!08'" D*"__$ +41 (! @0$ P0'!00$ $"=P ! @,1! 4A,082 M05$'87$3(C*!"!1"D:&QP0DC,U+P%6)RT0H6)#3A)?$7&!D:)BH*#A(6&AXB)BI*3 ME)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&Q\C)RM+3U-76U]C9VN+C MY.7FY^CIZO+S]/7V]_CY^O_: P# 0 "$0,1 #\ ^D:**S?$-Q+:>'+^>V+_ /"7Z_\ ]!2;\E_PH_X2_7_^@I-^2_X5 MZ']G5.Z//_M"GV9[117B_P#PE^O_ /04F_)?\*/^$OU__H*3?DO^%']G5.Z# M^T*?9GM%%>+_ /"7Z_\ ]!2;\E_PH_X2_7_^@I-^2_X4?V=4[H/[0I]F>T45 MXO\ \)?K_P#T%)OR7_"C_A+]?_Z"DWY+_A1_9U3N@_M"GV9[117B_P#PE^O_ M /04F_)?\*/^$OU__H*3?DO^%']G5.Z#^T*?9GM%%>+_ /"7Z_\ ]!2;\E_P MH_X2_7_^@I-^2_X4?V=4[H/[0I]F>T45XO\ \)?K_P#T%)OR7_"C_A+]?_Z" MDWY+_A1_9U3N@_M"GV9[117B_P#PE^O_ /04F_)?\*/^$OU__H*3?DO^%']G M5.Z#^T*?9GM%%>+_ /"7Z_\ ]!2;\E_PH_X2_7_^@I-^2_X4?V=4[H/[0I]F M>T45XO\ \)?K_P#T%)OR7_"C_A+]?_Z"DWY+_A1_9U3N@_M"GV9[117B_P#P ME^O_ /04F_)?\*W_ 7XAU;4?$T=O?7TDT)C[?RK2E_$CZHSJ?!+T/%****^J/F0HHHH ***='&\KA(D9W/15&2: & MT4]H9$4LT;JJMM)*D 'T^M'D2[D7RGW.,H-IRP]O6E=!9C**DBMIYBPA@DD* M_>"(3CZXIRV=TT?F+;3,F,[A&3;RR;3AMD9.#Z&F>6XD\O8V_.-F.<^F M*+H+,;13_)EPI\M\.<*=I^8^@]:5;>9T=TAD94^\P0D+]?2BZ"S(Z***8!11 M10 5TWP^_P"1PB_ZXR?RKF:Z;X??\CA%_P!<9/Y5AB/X,O1FV'_BQ]3UNBBB MOF#Z0**** "BBB@ HHHH **** "LGQ3_ ,BIJ7_7NW\JUJR?%/\ R*FI?]>[ M?RK2E_$CZHSJ?!+T/%****^J/F0HHHH *T-'N&M[J0J\"AXBC+.Y0.#U 8=# M[UGT5,E=6'%V=SJ4N],:WFTZ2])M9YV9I'))4A00V>_((S0VK6L7%S;716*YM'8@Y4B0K@@CU)Y_&J-@GV'5M,N;N90LC"5LDY1,GUJZ;2FF M^Y%1-P:1X9177?\ "MM:_P">UI_WVW^%'_"MM:_Y[6G_ 'VW^%?1_6:/\R/G M_J];^5G(T5UW_"MM:_Y[6G_?;?X4?\*VUK_GM:?]]M_A1]9H_P R#ZO6_E9R M-%==_P *VUK_ )[6G_?;?X4?\*VUK_GM:?\ ?;?X4?6:/\R#ZO6_E9R-%==_ MPK;6O^>UI_WVW^%'_"MM:_Y[6G_?;?X4?6:/\R#ZO6_E9R-%==_PK;6O^>UI M_P!]M_A1_P *VUK_ )[6G_?;?X4?6:/\R#ZO6_E9R-%;6@>%[OQ+8/>:5M_*SD:*Z[_A6VM?\ M/:T_[[;_ H_X5MK7_/:T_[[;_"CZS1_F0?5ZW\K.1HKKO\ A6VM?\]K3_OM MO\*/^%;:U_SVM/\ OMO\*/K-'^9!]7K?RLY&BNN_X5MK7_/:T_[[;_"C_A6V MM?\ /:T_[[;_ H^LT?YD'U>M_*SD:Z;X??\CA%_UQD_E5C_ (5MK7_/:T_[ M[;_"MGPKX,U+1=?CO;N2W:)8V4B-B3DCZ5C7Q%*5*24NAK1H58U(MQZG=444 M5\^>\%%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %-D.V-C MZ FG5%=';9S'TC8_I36X'"_!L8\%W'O?.?\ QQ*[^N#^#XQX)D][QS_XZM=Y M71BOX\O4Y\+_ 8^@4445S'0%%%% !1110 4444 %%%% !1110 4444 %%%% M !1110 4444 %%%% !1110 4444 %%%% !1110 57U [=,NCZ0N?T-6*J:J= MNC7I]+>0_P#CIIQW0I;'FGPY\:>']!\*?8]5O_L]QY[N4\F1N#C!RJD=JZO_ M (6=X0_Z"_\ Y+3?_$5B_#'0=)O_ 5'/?Z7974K3R#S)K='; /3)%=?_P ( MKX>_Z .F?^ $/^@O_ .2TW_Q%:O\ PBOA[_H Z9_X!Q_X4?\ "*^'O^@# MIG_@''_A6%\-VE]Z_P C:V([K[G_ )F5_P +.\(?]!?_ ,EIO_B*/^%G>$/^ M@O\ ^2TW_P 16K_PBOA[_H Z9_X!Q_X4?\(KX>_Z .F?^ 6?9;G_GWF_[] MG_"O4P<:3@^5=>IYV+=535WTZ%W_ (2/6O\ H*W?_?TT?\)'K7_05N_^_IJE M]EN?^?>;_OV?\*/LMS_S[S?]^S_A7;R4^R.+GGW9=_X2/6O^@K=_]_35N'4? M$4\,JW!21F4'[0?EVC))]!CFL?[+<_P#/O-_W[/\ A5VWN;ZVMDACLOE5 MF;)A8EMPVD'V(XJ90C;W4BHRE?WFS267Q,S*O]JS#=RN;D_,O'S#U'(JO>ZG MK]B0)]6NLL3MQ*W(]?;^=5Y;[4IHC'):DKMV#]RWRIQ\@]N![^],N;K4;JU% MO-;N4#[AB)ACK@?09J%#75(MSTT;%_X2/6O^@K=_]_31_P )'K7_ $%;O_OZ M:I?9;G_GWF_[]G_"C[+<_P#/O-_W[/\ A6O)3[(RYY]V7?\ A(]:_P"@K=_] M_31_PD>M?]!6[_[^FJ7V6Y_Y]YO^_9_PH^RW/_/O-_W[/^%')3[(.>?=GMNA M2O-X?T^69V>1[:-F9CDL2HR35^L_P^I7PWIH8$$6L>01C'RBM"OF*GQL^DI_ M @HHHJ"PHHHH ***B-W;@D&XB!!P07'%.S8KI$M%0_;+;_GXB_[[%'VRV_Y^ M(O\ OL46871-14/VRV_Y^(O^^Q1]LMO^?B+_ +[%%F%T345#]LMO^?B+_OL4 M?;+;_GXB_P"^Q19A=$U4=;./#^HGTM9?_0#5C[9;?\_$7_?8K.\0WEO_ ,(S MJF+B(G['+@!QS\AJH1?,B927*S#^%(QX MO>67_T(UV=<7\+YX(OA_9"2:-6 M+RG#. ?]8U==]LMO^?B+_OL5KB$_;2]698=KV,?1$U%0_;+;_GXB_P"^Q1]L MMO\ GXB_[[%869O=$U%0_;+;_GXB_P"^Q1]LMO\ GXB_[[%%F%T345#]LMO^ M?B+_ +[%'VRV_P"?B+_OL46871-14/VRV_Y^(O\ OL4?;+;_ )^(O^^Q19A= M$U%0_;+;_GXB_P"^Q2K*\*U&*1M2OY5C8QI5)Y'G;3Y6[9N[9Q MG%>Q='D69'@>@HP/05*()6VXB<[E++A3R!U(]JCR* $P/048'H*7-&:8"8'H M*9/'OMY%4#2> !4LMK<0LRS02QE1N8.A&!ZTKA8HV,#06:1R M ;AG/?O5C ]!2Y%&13$)@>@HP/05(D4D@S'&SC=MRHSSZ?6F9H&)@>@HP/04 MYT:)MLBE&ZX88-#*RJI92 PRI(ZB@!N!Z"C ]!2Y%&1ZT )@>@HP/05(L4C[ M=B,VYMJX&@K;\' ?\ "8:=Q_RT/_H)K%R/6M[PE!)% MXLTIY$*K*Y9"?XAAAG\ZRK?PY>C-*7\2/JCV.BBBOECZ8**** "BBB@ HHHH M **** "BBB@ KR*&]M8IM3LKV;RXKJ]=9."=J_-\WX'%>NUX1J?_ "%[S_KX MD_\ 0C7IX"*ES)^1YV.DX\K7F;5QJEC=1-YI!5;]PYJFUC6DO=):Z/FF)A'$DP8 M+G?*N3_ *TJQ;RSG&#@9SGTXHY::ZCYIOH6 M;S4(9IX98)88I8KQS&ZQ8"Q\%20!R,U++=:?F9FDC,LD:[E0LT8;S 3MSR., MDBLRZTBYLK9Y;DHFUS'LY))'X8'XU9;0)&DQ%<1*NV+F4[=V9K=)%DF6W?R@%12!L) '3.:=!?:>EJ@E-O+)N;[1DA!(A%9(T2\;[JHW#$O\V!MZC&,GKV%)QI M[7&I5-[&A#J]JFH--YL2;;]3&5B Q#@C@8Z2$Z%/=OY4ER)&M5=4X< M,=V\<=0./QJI_8F^&U:"[A=YD=V!) 0+U.<>U/'AZ^DQ'#-#,/E?:DA.U6&0 M^,=,#ZT6IIWO_2"]1JUB\VJV0NMP>)U>:$2,\>X^6(P&'(Z9I(M1LW%G]HFC M988)(T4C!C?<=I)VGC'?FJ7_ CEWA2TL"+(0L3.Q7S"QZU&VC$OI\ M<5S&\MX.5P?W9W$?EQ1RT^_]6#FJ=B]+J-F%81B!&>ZB\PJ ^Z,#YCG:.IZ@ M 4X7UC<7"R2RQ1/')-L*QA1MXV#[I [\X-9?V&WN'?[#<.$A4M-)<*%51G ( MQGJ>W6JUU;26=PT,NTL ""IR&!&01[52IP>B9+G):G1OJ5BTZ)'<0BTCU#S# M&4ZH5'(X]G:'<03>*=!2W8,(C(I 'WBBBOFSZ$**** "BBB@ HH MHH **** "BBB@ KPC4_^0O>?]?$G_H1KW>O"-3_Y"]Y_U\2?^A&O5RW>1Y>8 M;1(;>9[:YCGCQOC8.N1QD5:>=0*G$K$8);GT)Z>M9M% M+DCV'SR[E^?6+B>(Q[8HDQ& (UQM"9VX_.I!KMP)I'$,"^=_K552OF'.=QP< MY^E9E%')'L'/+N7#J4GV6>!(XT%P?WC#<21G..3^O6GMK%TQ4GR_E:-A\O>, M86J%%')'L'/+N7_[9O/LZPJRJJ3_ &A2%Y#9SU],D\4K:Q*UVEPT$1="2/F? M&?7[U9]%')'L'/+N:#:SJJ, M?D>:SJ*/9Q[!SR[F@=9N-R%$C39*LH'S-\P&!U)-1MJ7BBBOECZ8**** "BBB@ HHHH **** "BBB@ MKD+CX<:9<7,LS75T&E=G(#+P2<^GO77T5I3JSI_ [&HKT&L?Q<<>"]9_Z\9O_0#5PQ59S2]=112>*K-6<@6&HIW40HHHKG.@**** "BBB@ HHHH **** M"BBB@ HHHH **** "BBB@ HHHH *Q?&1QX)UC_KSD_\ 036U6%XW./ VK_\ M7J_\JTI?Q(^J,ZGP2]"M\.1CX>Z5_N/_ .AM735S7P^(7P!I()'^J)_\>-=$ M9XAUE0?5A55OXLO5BH_PH^B'T5";NV7K<1#ZN*:=0LU^]=P#ZRC_ !K*S-+H ML454.JZU:Q'UN M4_QII\2:&.NLZ>/K=)_C1R2[!SQ[FE17G'CK7[A=0LI-&U-OLTL!(>VFRCD. M1G(X/3%M?]!6[_ ._IKNIX&=2"EM?]!6[_ ._IK3^SI_S(C^T(?RL]OHKQ)?$.M.X4:M= DXR9B!^= M7OM'BT6>OT5Y&)/$S1NRZM,^ MW@!+@G<M9\NOZU%,T?]KW3;3C(E;!H6 ;VDAO');Q9[917B'_ D> MM?\ 05N_^_IH_P"$CUK_ *"MW_W]-5_9T_YD3_:$/Y6>WT5XA_PD>M?]!6[_ M ._IK;\'ZUJEWXLLH;K4+F:)B^Y'D)!^1CTJ)X"<(N5]BHXZ,I*-MSU2BBBO M./0"BBB@ HHHH **** "BBB@ HHHH *Y_P =G'@35_\ KW/]*Z"N=\?G'@'5 MO^N'_LPK6C_$CZHSJ_PY>C.,\,?"W1-9\,V.H7=Q?+-<1[W$!_9;G_G MWF_[]G_"C[+<_P#/O-_W[/\ A7OE%7_:3_E_'_@$?VJ&5I5M/+ZC MYRR):F-E!"[86^7+;CCZGK5:[%Y>7+3S6TFYL#Y8VQP,5[M10LP2U4/Q_P" M#P#>\_P/ _LMS_S[S?\ ?L_X4?9;G_GWF_[]G_"O?**K^TG_ "_C_P 7]G+ M^;\#P/[+<_\ /O-_W[/^%;W@FWG3QC8L\,BJ"^2R$ ?(U>O45,\P*+?PX;<7%O+-Y^['ED<8QZ_6 ML3_A9]A_SX77YK_C53XH_?TW_MI_2N KV<-A*52DI26IY&(Q56G5<8O0]*_X M6?8?\^%U^:_XT?\ "S[#_GPNOS7_ !KS6BNCZC0[&'UVMW/2O^%GV'_/A=?F MO^-'_"S[#_GPNOS7_&O-:*/J-#L'UVMW/2O^%GV'_/A=?FO^-'_"S[#_ )\+ MK\U_QKS6BCZC0[!]=K=STK_A9]A_SX77YK_C6+XO\$[W3K6RN%EG"!2 MQ7 PZGL?05Q]%..#HQDI);$RQ=:47%O<[O0OB#9Z;X>T^REL;DR6]M'$Q!7! M(4 ]ZO\ _"S[#_GPNOS7_&O-:*'@J+=VAK&5DK)GI7_"S[#_ )\+K\U_QH_X M6?8?\^%U^:_XUYK12^HT.P_KM;N>E?\ "S[#_GPNOS7_ !H_X6?8?\^%U^:_ MXUYK11]1H=@^NUNYZ5_PL^P_Y\+K\U_QH_X6?8?\^%U^:_XUYK11]1H=@^NU MNYZ5_P +/L/^?"Z_-?\ &C_A9]A_SX77YK_C7FM%'U&AV#Z[6[GI7_"S[#_G MPNOS7_&C_A9]A_SX77YK_C7FM%'U&AV#Z[6[GI7_ L^P_Y\+K\U_P :/^%G MV'_/A=?FO^->:T4?4:'8/KM;N>E?\+/L/^?"Z_-?\:/^%GV'_/A=?FO^->:T M4?4:'8/KM;N>E?\ "S[#_GPNOS7_ !K4T#QG:^(-1:TM[6:)EC,FZ0C& 0,< M'WKR&NN^&O\ R,\O_7JW_H2UC7P=&%-R2U1K1Q=6=11;/4Z***\0]D**** " MBBB@#C/B#!"T,-U-'YWV:-F6(D@$DJ,G'.!7'-I=O/;B>)/)\V&)_+R3Y9:3 M8<9/3OS73_$FYFM;C39+:5HGQ(,J>H^7BN'FU:^N /.N78@ ;N-Q .0">X!Z M>E>[A8S=&+3/$Q4HJK)-&E_8$$DQ%M//(B-*CC8 Q*8^[SCG/>HQI5IYFJQ+ M<+MM8U,/2H[O4)+FXGD0> M2DP"NBGA@/7U/>NE1J7LW_5SFYJ=KI&Q+X>ADO98XG:-%C7RV4@JS>7N/WCD M_0#BJMO86RZ[90W$?F020++(@)&

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