Delaware
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001-34591
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74-2235008
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(State or other jurisdiction of
incorporation or organization)
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(Commission File No.)
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(IRS Employee Identification No.)
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99.1
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Press release issued November 13, 2012 relating to its third quarter financial results.
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99.2
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Press release issued on November 9, 2012 relating to the conference call.
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Date: November 14, 2012
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Cleantech Solutions International, Inc.
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By:
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/s/ Jianhua Wu
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Jianhua Wu
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Chief Executive Officer
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Company Contact:
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Ms. Wanfen Xu
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Crocker Coulson
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Chief Financial Officer
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CCG Investor Relations
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Cleantech Solutions International, Inc.
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Tel: +1 646 213 1915
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Email: xu_wf@cleantechsolutionsinternational.com
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Email: Crocker.coulson@ccgir.com,
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Web: www.cleantechsolutionsinternational.com
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Web: www.ccgirasia.com
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●
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Revenue from the sale of forged rolled rings exclusively to the wind power industry decreased by 28.4% to $3.2 million, representing 18.5% of net revenue, compared to $4.5 million, or 38.5% of net revenue, in the comparable period last year.
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●
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Revenue from the sale of forged rolled rings to other industries increased 112.1% to $6.6 million, or 38.2% of net revenue, compared with $3.1 million, or 26.7% of net revenue for the comparable period of the prior year.
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CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND SUBSIDIARIES
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||||||||
CONSOLIDATED BALANCE SHEETS
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||||||||
September 30,
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December 31,
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|||||||
2012
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2011
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|||||||
(Unaudited)
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(Audited)
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|||||||
ASSETS
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||||||||
CURRENT ASSETS:
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||||||||
Cash and cash equivalents
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$ | 955,405 | $ | 1,152,607 | ||||
Restricted cash
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- | 314,233 | ||||||
Notes receivable
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165,772 | 53,420 | ||||||
Accounts receivable, net of allowance for doubtful accounts
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10,533,490 | 7,087,958 | ||||||
Inventories, net of reserve for obsolete inventory
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6,220,634 | 4,276,090 | ||||||
Advances to suppliers
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847,216 | 219,347 | ||||||
Prepaid VAT on purchases
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675,448 | 1,512,213 | ||||||
Prepaid expenses and other
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179,826 | 110,670 | ||||||
Total Current Assets
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19,577,791 | 14,726,538 | ||||||
PROPERTY AND EQUIPMENT - net
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65,965,819 | 64,042,079 | ||||||
OTHER ASSETS:
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||||||||
Land use rights, net
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3,769,058 | 3,820,536 | ||||||
Total Assets
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$ | 89,312,668 | $ | 82,589,153 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
CURRENT LIABILITIES:
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||||||||
Short-term bank loans
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$ | 2,683,928 | $ | 2,356,749 | ||||
Bank acceptance notes payable
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- | 314,233 | ||||||
Accounts payable
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6,329,876 | 4,997,109 | ||||||
Accrued expenses
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725,423 | 771,597 | ||||||
Capital lease obligations- current portion
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249,597 | 244,747 | ||||||
Advances from customers
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1,840,352 | 1,166,942 | ||||||
Income taxes payable
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884,003 | 592,202 | ||||||
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||||||||
Total Current Liabilities
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12,713,179 | 10,443,579 | ||||||
OTHER LIABILITIES:
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||||||||
Capital lease obligations - net of current portion
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174,123 | 381,235 | ||||||
Total Liabilities
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12,887,302 | 10,824,814 | ||||||
STOCKHOLDERS' EQUITY:
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||||||||
Preferred stock $0.001 par value (30,000,000 shares authorized, all of which
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||||||||
were designated as series A convertible preferred, 0 and 10,995,807 shares
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||||||||
issued and outstanding at September 30, 2012 and December 31, 2011, respectively)
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- | 10,996 | ||||||
Common stock ($0.001 par value; 50,000,000 shares authorized;
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||||||||
2,667,017 and 2,101,849 shares issued and outstanding
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||||||||
at September 30, 2012 and December 31, 2011, respectively)
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2,667 | 2,102 | ||||||
Additional paid-in capital
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28,089,776 | 27,489,600 | ||||||
Retained earnings
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38,128,307 | 34,618,341 | ||||||
Statutory reserve
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2,283,852 | 2,064,551 | ||||||
Accumulated other comprehensive gain - foreign currency translation adjustment
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7,920,764 | 7,578,749 | ||||||
Total Stockholders' Equity
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76,425,366 | 71,764,339 | ||||||
Total Liabilities and Stockholders' Equity
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$ | 89,312,668 | $ | 82,589,153 |
CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
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`
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For the Three Months Ended
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For the Nine Months Ended
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||||||||||||||
September 30,
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September 30,
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|||||||||||||||
2012
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2011
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2012
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2011
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|||||||||||||
(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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|||||||||||||
REVENUES
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$ | 17,343,723 | $ | 11,676,696 | $ | 39,585,815 | $ | 41,851,257 | ||||||||
COST OF REVENUES
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13,024,265 | 9,046,015 | 30,689,436 | 31,617,025 | ||||||||||||
GROSS PROFIT
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4,319,458 | 2,630,681 | 8,896,379 | 10,234,232 | ||||||||||||
0.249050218 | 0.225293268 | 0.225 | 0.245 | |||||||||||||
OPERATING EXPENSES:
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||||||||||||||||
Depreciation
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373,896 | 84,531 | 1,122,432 | 505,326 | ||||||||||||
Selling, general and administrative
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739,386 | 913,198 | 2,157,053 | 2,773,694 | ||||||||||||
Total Operating Expenses
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1,113,282 | 997,729 | 3,279,485 | 3,279,020 | ||||||||||||
INCOME FROM OPERATIONS
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3,206,176 | 1,632,952 | 5,616,894 | 6,955,212 | ||||||||||||
0.184860886 | 0.139847094 | |||||||||||||||
OTHER INCOME (EXPENSE):
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Interest income
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5,069 | 110 | 10,919 | 940 | ||||||||||||
Interest expense
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(84,289 | ) | (60,452 | ) | (244,685 | ) | (122,980 | ) | ||||||||
Foreign currency gain (loss)
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1,251 | (1,476 | ) | 6,642 | (4,817 | ) | ||||||||||
Warrants modification expense
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- | - | (235,133 | ) | - | |||||||||||
Other income
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51,523 | 14,266 | 64,803 | 91,379 | ||||||||||||
Total Other Income (Expense)
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(26,446 | ) | (47,552 | ) | (397,454 | ) | (35,478 | ) | ||||||||
INCOME BEFORE INCOME TAXES
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3,179,730 | 1,585,400 | 5,219,440 | 6,919,734 | ||||||||||||
INCOME TAXES
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824,628 | 450,410 | 1,490,173 | 1,949,625 | ||||||||||||
NET INCOME
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$ | 2,355,102 | $ | 1,134,990 | $ | 3,729,267 | $ | 4,970,109 | ||||||||
COMPREHENSIVE INCOME:
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||||||||||||||||
NET INCOME
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$ | 2,355,102 | $ | 1,134,990 | $ | 3,729,267 | $ | 4,970,109 | ||||||||
OTHER COMPREHENSIVE INCOME:
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Unrealized foreign currency translation (loss) gain
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(169,625 | ) | 655,213 | 342,015 | 2,145,996 | |||||||||||
COMPREHENSIVE INCOME
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$ | 2,185,477 | $ | 1,790,203 | $ | 4,071,282 | $ | 7,116,105 | ||||||||
NET INCOME PER COMMON SHARE:
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||||||||||||||||
Basic
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$ | 0.88 | $ | 0.57 | $ | 1.51 | $ | 2.57 | ||||||||
Diluted
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$ | 0.88 | $ | 0.46 | $ | 1.42 | $ | 1.98 | ||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
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Basic
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2,667,017 | 1,997,674 | 2,469,818 | 1,937,028 | ||||||||||||
Diluted
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2,667,017 | 2,462,159 | 2,617,798 | 2,512,637 | ||||||||||||
CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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For the Nine Months Ended
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||||||||
September 30,
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||||||||
2012
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2011
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|||||||
(Unaudited)
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(Unaudited)
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|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
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Net income
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$ | 3,729,267 | $ | 4,970,109 | ||||
Adjustments to reconcile net income from operations to net cash
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||||||||
provided by operating activities:
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Depreciation
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4,719,769 | 3,651,168 | ||||||
Amortization of land use rights
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70,068 | 68,145 | ||||||
(Decrease) increase in allowance for doubtful accounts
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(46,616 | ) | 389,120 | |||||
Warrants modification expense
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235,133 | - | ||||||
Stock-based compensation expense
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129,030 | 282,259 | ||||||
Changes in assets and liabilities:
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||||||||
Notes receivable
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(112,209 | ) | (96,409 | ) | ||||
Accounts receivable
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(3,368,092 | ) | (70,783 | ) | ||||
Inventories
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(1,925,810 | ) | (1,935,112 | ) | ||||
Prepaid value-added taxes on purchases
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844,969 | 814,967 | ||||||
Prepaid and other current assets
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(41,315 | ) | (48,340 | ) | ||||
Advances to suppliers
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(627,455 | ) | (495,317 | ) | ||||
Accounts payable
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1,310,123 | (2,741,480 | ) | |||||
Accrued expenses
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(49,578 | ) | 58,098 | |||||
VAT and service taxes payable
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- | (82,941 | ) | |||||
Income taxes payable
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289,230 | (712,490 | ) | |||||
Advances from customers
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668,446 | 1,839,882 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES
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5,824,960 | 5,890,876 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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||||||||
Payments for deposit on equipment
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- | (768,520 | ) | |||||
Purchase of property and equipment
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(6,334,776 | ) | (6,413,874 | ) | ||||
NET CASH USED IN INVESTING ACTIVITIES
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(6,334,776 | ) | (7,182,394 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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Principal payments on capital lease
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(205,509 | ) | (143,545 | ) | ||||
Proceeds from bank loans
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2,686,706 | 2,612,969 | ||||||
Repayment of bank loans
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(2,370,623 | ) | (2,151,857 | ) | ||||
Decrease (increase) in restricted cash
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316,083 | (461,112 | ) | |||||
(Decrease) increase in bank acceptance notes payable
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(316,083 | ) | 461,112 | |||||
Proceeds from sale of common stock
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- | 125,000 | ||||||
Proceeds from exercise of warrants
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198,142 | 400,000 | ||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES
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308,716 | 842,567 | ||||||
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS
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3,898 | 20,048 | ||||||
NET DECREASE IN CASH AND CASH EQUIVALENTS
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(197,202 | ) | (428,903 | ) | ||||
CASH AND CASH EQUIVALENTS - beginning of period
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1,152,607 | 947,177 | ||||||
CASH AND CASH EQUIVALENTS - end of period
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$ | 955,405 | $ | 518,274 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
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Cash paid for:
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Interest
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$ | 244,685 | $ | 122,980 | ||||
Income taxes
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$ | 1,200,944 | $ | 2,662,115 | ||||
NON-CASH INVESTING AND FINANCING ACTIVITIES:
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Security deposit and leased property in exchange for capital lease obligations
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$ | - | $ | 795,022 | ||||
Series A preferred converted to common shares
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$ | 13,198 | $ | 3,536 | ||||
Common stock issued for future service
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$ | 27,440 | $ | 63,576 | ||||
Reconciliation of Net Income to Adjusted EBITDA
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(Amounts expressed in US$)
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For the Three Months Ended September 30,
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For the Nine Months Ended September 30,
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|||||||||||||||
2012
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2011
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2012
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2011
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Net income
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$ | 2,355,102 | $ | 1,134,990 | $ | 3,729,267 | $ | 4,970,109 | ||||||||
Add: income tax
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824,628 | 450,410 | 1,490,173 | 1,949,625 | ||||||||||||
Add: interest expense
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84,289 | 60,452 | 244,685 | 122,980 | ||||||||||||
Add: warrant modification expense
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- | - | 235,133 | - | ||||||||||||
Add: depreciation and amortization
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1,650,599 | 1,170,416 | 4,789,837 | 3,719,313 | ||||||||||||
EBITDA
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$ | 4,914,618 | $ | 2,816,268 | $ | 10,489,095 | $ | 10,762,027 |