Nevada | 001-34711 | 98-0557852 | ||
(State or other jurisdiction of Incorporation) | (Commission File No.) | (IRS Employer Identification No.) |
Exhibit No.
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Description
|
|
99.1
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Press Release, dated August 12, 2014.
|
CHINA JO-JO DRUGSTORES, INC.
|
||
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By:
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/s/ Lei Liu |
Name: Lei Liu
Title: Chief Executive Officer
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·
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Online sales contributed $2.6 million in revenue, an increase of 103.5% from the comparable quarter of prior year
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·
|
Retail sales, which includes online sales, accounted for approximately 80.0% of total revenue, and increased by $2.3 million, or 20.7% year over year to $13.2 million
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·
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Wholesale, which accounted for approximately 20.0% of total revenue, decreased to $3.3 million from $4.4 million for the same quarter of last year
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·
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Gross margin decreased quarter over quarter from 23.5% to 15.3%
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·
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Net loss was $0.35 million compared to $0.79 million for the comparable quarter of prior year; Diluted EPS loss was $0.02 compared to $0.06 for the comparable quarter of prior year
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June 30,
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March 31,
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|||||||
2014
|
2014
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|||||||
A S S E T S
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||||||||
CURRENT ASSETS
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||||||||
Cash
|
$
|
3,378,916
|
$
|
4,445,276
|
||||
Restricted cash
|
3,706,658
|
3,114,543
|
||||||
Trade accounts receivable, net
|
5,677,129
|
6,734,536
|
||||||
Inventories
|
7,223,808
|
8,419,132
|
||||||
Other receivables, net
|
425,983
|
149,546
|
||||||
Advances to suppliers, net
|
3,184,527
|
4,577,194
|
||||||
Other current assets
|
1,726,872
|
1,663,102
|
||||||
Total current assets
|
25,323,893
|
29,103,329
|
||||||
PROPERTY AND EQUIPMENT, net
|
9,034,288
|
9,412,688
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||||||
OTHER ASSETS
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||||||||
Long-term biological assets
|
1,373,425
|
-
|
||||||
Long term deposits
|
2,764,792
|
2,786,437
|
||||||
Other noncurrent assets
|
2,947,235
|
3,036,930
|
||||||
Intangible assets, net
|
1,563,347
|
1,569,443
|
||||||
Total other assets
|
8,648,799
|
7,392,810
|
||||||
Total assets
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$
|
43,006,980
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$
|
45,908,827
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||||
L I A B I L I T I E S A N D S T O C K H O L D E R S' E Q U I T Y
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||||||||
CURRENT LIABILITIES
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||||||||
Short-term loan payable
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$
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-
|
$
|
162,300
|
||||
Accounts payable, trade
|
10,218,415
|
14,554,726
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||||||
Notes payable
|
9,065,063
|
7,820,718
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||||||
Other payables
|
1,825,591
|
1,282,211
|
||||||
Other payables - related parties
|
2,808,588
|
2,384,294
|
||||||
Loan from third parties
|
234,813
|
294,042
|
||||||
Customer deposits
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3,386,007
|
3,185,885
|
||||||
Taxes payable
|
349,562
|
373,501
|
||||||
Accrued liabilities
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823,309
|
1,208,242
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||||||
Total current liabilities
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28,711,348
|
31,265,919
|
||||||
Purchase option and warrant liability
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155,217
|
278,916
|
||||||
Total liabilities
|
28,866,565
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31,544,835
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||||||
COMMITMENTS AND CONTINGENCIES
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||||||||
STOCKHOLDERS' EQUITY
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||||||||
Preferred stock; $0.001 par value; 10,000,000 shares authorized; nil issued and outstanding as of March 31, 2014 and June 30, 2014
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-
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-
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||||||
Common stock; $0.001 par value; 250,000,000 shares authorized; 14,416,022 and 14,416,022 shares issued and outstanding as of June 30, 2014 and March 31, 2014
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14,416
|
14,416
|
||||||
Additional paid-in capital
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17,427,911
|
17,355,555
|
||||||
Statutory reserves
|
1,309,109
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1,309,109
|
||||||
Accumulated deficit
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(8,607,504
|
)
|
(8,260,767
|
)
|
||||
Accumulated other comprehensive income
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3,957,404
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3,905,136
|
||||||
Total stockholders' equity
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14,101,336
|
14,323,449
|
||||||
Noncontrolling interests
|
39,079
|
40,543
|
||||||
Total equity
|
14,140,415
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14,363,992
|
||||||
Total liabilities and stockholders' equity
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$
|
43,006,980
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$
|
45,908,827
|
For the three months ended
June 30,
|
||||||||
2014
|
2013
|
|||||||
REVENUES, NET
|
$
|
16,459,232
|
$
|
15,336,519
|
||||
COST OF GOODS SOLD
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13,948,613
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11,735,350
|
||||||
GROSS PROFIT
|
2,510,619
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3,601,169
|
||||||
SELLING EXPENSES
|
1,768,577
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1,680,842
|
||||||
GENERAL AND ADMINISTRATIVE EXPENSES
|
1,081,201
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2,640,818
|
||||||
TOTAL OPERATING EXPENSES
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2,849,778
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4,321,660
|
||||||
LOSS FROM OPERATIONS
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(339,159
|
)
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(720,491
|
)
|
||||
OTHER LOSS, NET
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(115,836
|
)
|
(40,413
|
)
|
||||
CHANGE IN FAIR VALUE OF DERIVATIVE LIABILITIES
|
123,699
|
12,665
|
||||||
LOSS BEFORE INCOME TAXES
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(331,296
|
)
|
(748,239
|
)
|
||||
PROVISION FOR INCOME TAXES
|
16,141
|
39,520
|
||||||
NET LOSS
|
(347,437
|
)
|
(787,759
|
)
|
||||
ADD: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST
|
700
|
243
|
||||||
NET LOSS ATTRIBUTABLE TO CHINA JO-JO DRUGSTORES, INC.
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(346,737
|
)
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(787,516
|
)
|
||||
OTHER COMPREHENSIVE INCOME
|
||||||||
Foreign currency translation adjustments
|
52,268
|
759,791
|
||||||
COMPREHENSIVE LOSS
|
$
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(294,469
|
)
|
$
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(27,725
|
)
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||
WEIGHTED AVERAGE NUMBER OF SHARES:
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||||||||
Basic
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14,416,022
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13,609,003
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||||||
Diluted
|
14,416,022
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13,609,003
|
||||||
LOSSES PER SHARES:
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||||||||
Basic
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$
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(0.02
|
)
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$
|
(0.06
|
)
|
||
Diluted
|
$
|
(0.02
|
)
|
$
|
(0.06
|
)
|
Three months ended
June 30,
|
||||||||
2014
|
2013
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net loss
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$
|
(347,437
|
)
|
$
|
(787,759
|
)
|
||
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
502,101
|
588,936
|
||||||
Stock compensation
|
71,544
|
27,338
|
||||||
Bad debt provision
|
(637,819
|
)
|
1,181,478
|
|||||
Inventory reserve
|
4,316
|
-
|
||||||
Change in fair value of purchase option derivative liability
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(123,699
|
)
|
(12,665
|
)
|
||||
Change in operating assets:
|
||||||||
Accounts receivable, trade
|
1,187,128
|
(190,989
|
)
|
|||||
Notes receivable
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-
|
(290,214
|
)
|
|||||
Inventories and biological assets
|
(171,784
|
)
|
(398,271
|
)
|
||||
Other receivables
|
(59,183
|
)
|
(159,171
|
)
|
||||
Advances to suppliers
|
1,694,269
|
(1,111,259
|
)
|
|||||
Other current assets
|
(61,633
|
)
|
(782,304
|
)
|
||||
Long term deposit
|
25,040
|
-
|
||||||
Other noncurrent assets
|
93,294
|
49,586
|
||||||
Change in operating liabilities:
|
||||||||
Accounts payable, trade
|
(4,347,548
|
)
|
1,363,429
|
|||||
Other payables and accrued liabilities
|
155,208
|
(570,952
|
)
|
|||||
Customer deposits
|
195,894
|
365,295
|
||||||
Taxes payable
|
(24,361
|
)
|
(2,212
|
)
|
||||
Net cash used in operating activities
|
(1,844,670
|
)
|
(729,734
|
)
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase of equipment
|
(104,682
|
)
|
(2,934
|
)
|
||||
Additions to leasehold improvements
|
-
|
(3,958
|
)
|
|||||
Payments on construction-in-progress
|
-
|
(111,152
|
)
|
|||||
Net cash used in investing activities
|
(104,682
|
)
|
(118,044
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from short-term bank loan
|
-
|
161,230
|
||||||
Repayment of short-term bank loan
|
(162,250
|
)
|
-
|
|||||
Repayment of third parties loan
|
(59,500
|
)
|
-
|
|||||
Change in restricted cash
|
(587,371
|
)
|
(1,336,189
|
)
|
||||
Proceeds from notes payable
|
1,918,599
|
650,108
|
||||||
Repayments of notes payable
|
(685,791
|
)
|
(816,304
|
)
|
||||
Proceeds from other payables-related parties
|
423,752
|
194,973
|
||||||
Net cash provided by financing activities
|
847,439
|
(1,146,182
|
)
|
|||||
EFFECT OF EXCHANGE RATE ON CASH
|
35,553
|
181,265
|
||||||
DECREASE IN CASH
|
(1,066,360
|
)
|
(1,812,695
|
)
|
||||
CASH, beginning of period
|
4,445,276
|
4,524,094
|
||||||
CASH, end of period
|
$
|
3,378,916
|
$
|
2,711,399
|
||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid for income taxes
|
$
|
21,325
|
$
|
9,529
|
||||
Cash paid for interest
|
$
|
1,460
|
$
|
8,764
|