10-Q/A

UNITED STATES

  SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

Amendment No. 1

x             QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended June 30, 2012

¨             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: 0-53600

CHINA YCT INTERNATIONAL GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware	65-2954561
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

c/o Shandong Spring Pharmaceutical Co., Ltd Economic Development Zone. Gucheng Road Sishui County Shandong Province PR China	273200
(Address of principal executive offices)	(Zip Code)

Issuer's telephone number: 406-282-3188

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 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 x

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

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

Large accelerated filer £	Accelerated filer £
Non-accelerated filer   £  (Do not check if a smaller reporting company) Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ¨   No x

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes x No ¨

The number of shares outstanding of the issuer’s common stock on September 5, 2011 was 73,780,610.

EXPLANATORY NOTE – AMENDMENT

The sole purpose of this Amendment No. 1 to our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011 as filed with the Securities and Exchange Commission on September 9, 2011 (the “Form 10-Q”) is to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.

No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, and otherwise are not subject to liability under those sections.

Item 6. Exhibits

31.1	Rule 13a-14(a)/ 15d-14(a) Certification of Chief Executive Officer *
31.2	Rule 13a-14(a)/ 15d-14(a) Certification of Chief Financial Officer *
32.1	Section 1350 Certification of Chief Executive Officer *
32.2	Section 1350 Certification of Chief Financial Officer *

XBRL Exhibit

101.INS XBRL Instance Document. †

101.SCH XBRL Taxonomy Extension Schema Document. †

101.CALXBRL 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. †

*These exhibits were previously included in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011, filed on September 14, 2011.

† Furnished herewith

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CHINA YCT INTERNATIONAL GROUP, LTD.

By:

Date: September 11, 2012

/s/ Yan Tinghe

Yan Tinghe Chief Executive Officer

(Principal Executive Officer)

/s/ Li Chuanmin

Li Chuanmin Chief Financial Officer

(Principal Financial Officer)

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Tax Payable (Detail) (USD $)	Jun. 30, 2012	Mar. 31, 2012
Taxes [Line Items]
Corporate Income Tax	$ 348,333	$ 774,423
Value-Added Tax	43,542	225,223
Other Tax & Fees	3,315	18,897
Total Tax Payable	$ 395,190	$ 1,018,543

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Components of Property and Equipment (Detail) (USD $)	Jun. 30, 2012	Mar. 31, 2012
Property, Plant and Equipment [Line Items]
Machinery & Equipment	$ 537,770	$ 538,461
Furniture & Fixture	163,740	164,536
Building	10,060,650	10,109,560
Subtotal	10,762,160	10,812,557
Less: Accumulated Depreciation	(1,237,215)	(1,149,219)
Total plant, property and equipment, net	$ 9,524,945	$ 9,663,338

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INTANGIBLE ASSETS, NET (Tables)

3 Months Ended

Jun. 30, 2012

Net Land Use Right and Purchased Patent

Net land use right and purchased patents were as follows:

	Amortization	As of
	Period	June 30, 2012			March 31, 2012
Land use right	50 years	$	1,604,452		$	1,612,252
Less: Accumulated amortization			(185,224	)		(178,052	)
Land use right, net			1,419,228			1,434,200
Patent 1	16.5 years		7,272,842			7,308,199
Patent (non-US No. ZL200510045001.9)	13.75 years		9,802,526			9,850,182
Patent (non-US No. ZL200710013301.8)	14.95 years		1,581,053			1,588,739
Less: Accumulated amortization			(1,621,528	)		(1,317,810	)
Patents, net		$	17,034,893		$	17,429,310

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DERIVATIVE LIABILITY - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended	12 Months Ended		1 Months Ended
	Oct. 21, 2011	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Feb. 28, 2011 Patent (U.S. No. 6,475,531 B1) L.Y. Hong Kong Biotech Limited	Feb. 28, 2011 Patent (U.S. No. 6,475,531 B1) L.Y. Hong Kong Biotech Limited Minimum	Feb. 28, 2011 Patent (U.S. No. 6,475,531 B1) L.Y. Hong Kong Biotech Limited Scenario 1	Feb. 28, 2011 Patent (U.S. No. 6,475,531 B1) L.Y. Hong Kong Biotech Limited Scenario 2
Fair Value of Financial Instruments [Line Items]
Common stock shares issued to acquire patent					44,254,952
Common stock, shares issuable					31,610,544		11,063,968	20,546,711
Minimum Proceeds from issuance of debt and/or equity in order to issue shares to sellers of patent						$ 20,000,000
Agreement cancellation period	1 year
Number of shares issued	55,318,920
Number of shares to be repurchased	55,318,920	55,318,920
Fair value of price per share	$ 0.40	$ 0.10
Stock restriction period	1 year
Percentage of shares to be repurchased		100.00%	100.00%	15.00%
Derivative liability		$ 5,531,892	$ 5,531,892	$ 3,319,135
Agreement expiration date		Oct. 21, 2012	Oct. 21, 2012

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Net Land Use Right and Purchased Patent (Detail) (USD $)	1 Months Ended	3 Months Ended
	Oct. 31, 2011	Jun. 30, 2012	Mar. 31, 2012
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net		$ 18,454,121	$ 18,863,510
Land use rights
Finite-Lived Intangible Assets [Line Items]
Amortization Period		50 years
Intangible assets, gross		1,604,452	1,612,252
Accumulated amortization		(185,224)	(178,052)
Intangible assets, net		1,419,228	1,434,200
Patent 1
Finite-Lived Intangible Assets [Line Items]
Amortization Period		16 years 6 months
Intangible assets, gross		7,272,842	7,308,199
Patents (non-US No. ZL200510045001.9)
Finite-Lived Intangible Assets [Line Items]
Amortization Period	13 years 9 months	13 years 9 months
Intangible assets, gross		9,802,526	9,850,182
Patents (non-US No. ZL200710013301.8)
Finite-Lived Intangible Assets [Line Items]
Amortization Period	14 years 11 months 12 days	14 years 11 months 12 days
Intangible assets, gross		1,581,053	1,588,739
Patents
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization		(1,621,528)	(1,317,810)
Intangible assets, net		$ 17,034,893	$ 17,429,310

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PREPAID ACCOUNTS

3 Months Ended

Jun. 30, 2012

PREPAID ACCOUNTS

NOTE 3 – PREPAID ACCOUNTS

The prepaid account is a prepayment to Shandong YCT for purchase of its health products. The amount is $20,786 and $20,887 as of June 30, 2012 and March 31, 2012, respectively.

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STOCKHOLDERS' EQUITY - Additional Information (Detail) (USD $)	1 Months Ended			1 Months Ended		3 Months Ended
	Jan. 01, 2006	Jun. 30, 2012	Mar. 31, 2012	Sep. 09, 2011 Patent (U.S. No. 6,475,531 B1) L.Y. Hong Kong Biotech Limited	Feb. 28, 2011 Patent (U.S. No. 6,475,531 B1) L.Y. Hong Kong Biotech Limited	Jun. 30, 2012 Independent Directors Person
Class of Stock [Line Items]
Issuance of common shares to independent directors, shares						50,000
Number Of directors						3
Average market price of common stock						$ 0.10
Issuance of common shares to independent directors, value						$ 5,000
Common stock shares issued to acquire patent					44,254,952
Consideration for patents acquired				2,765,992	32,748,665
Statutory reserve fund	10.00%
Maximum Statutory reserve fund to registered capital	50.00%
Statutory reserve		$ 956,633	$ 956,633

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended			3 Months Ended	1 Months Ended			3 Months Ended	1 Months Ended	3 Months Ended		1 Months Ended
	Sep. 09, 2011	Jun. 30, 2012	Jun. 30, 2011	Mar. 31, 2012	Jun. 30, 2012 Patent 1	Mar. 31, 2010 Patent 1 Shandong YCT Patent	Oct. 31, 2011 Patents: (non-US No. ZL200510045001.9) and (non-US No. ZL200710013301.8) Patent	Oct. 31, 2011 Patents (non-US No. ZL200510045001.9)	Jun. 30, 2012 Patents (non-US No. ZL200510045001.9)	Oct. 31, 2011 Patents (non-US No. ZL200710013301.8)	Jun. 30, 2012 Patents (non-US No. ZL200710013301.8)	Jun. 30, 2012 Land use rights	Sep. 09, 2011 Patent (U.S. No. 6,475,531 B1) L.Y. Hong Kong Biotech Limited	Feb. 28, 2011 Patent (U.S. No. 6,475,531 B1) L.Y. Hong Kong Biotech Limited	Feb. 28, 2011 Patent (U.S. No. 6,475,531 B1) L.Y. Hong Kong Biotech Limited Minimum	Feb. 28, 2011 Patent (U.S. No. 6,475,531 B1) L.Y. Hong Kong Biotech Limited Scenario 1
Accounting Policies [Line Items]
Useful life of intangible assets					16 years 6 months	16 years 6 months		13 years 9 months	13 years 9 months	14 years 11 months 12 days	14 years 11 months 12 days	50 years		9 years 10 months 24 days
Number of patents purchased						1	2
Useful life of patent, starting from application date						20 years
Common stock shares issued to acquire patent														44,254,952
Common stock, shares issuable														31,610,544		11,063,968
Consideration for patents acquired													$ 2,765,992	$ 32,748,665
Number of shares of common stock issued and issuable													11,063,968	44,254,952
Quoted stock price	$ 0.25												$ 0.25	$ 0.74
Minimum Proceeds from issuance of debt and/or equity in order to issue shares to sellers of patent															20,000,000
Value-added tax rate		17.00%
Net VAT payable		43,542		225,223
Research and development expense		222,566	193,518
Advertising costs		285,379	76,910
Mailing and handling costs		278,608	390,010
Shares used in computation of diluted earnings per share		31,610,679	31,610,679
Foreign currency transaction and translation adjustment		$ 40,878	$ 417,275

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Useful Lives of Property and Equipment (Detail)	3 Months Ended
	Jun. 30, 2012
Buildings | Minimum
Property, Plant and Equipment [Line Items]
Useful lives of property and equipment	30 years
Buildings | Maximum
Property, Plant and Equipment [Line Items]
Useful lives of property and equipment	35 years
Machinery, equipment and automobiles | Minimum
Property, Plant and Equipment [Line Items]
Useful lives of property and equipment	7 years
Machinery, equipment and automobiles | Maximum
Property, Plant and Equipment [Line Items]
Useful lives of property and equipment	15 years

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Exchange Rates Adopted to Translate Amounts from RMB into United States Dollars (Detail)	3 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Mar. 31, 2012
Foreign Currency Exchange Rate [Line Items]
Three Months End RMB Exchange Rate (RMB/USD$)	6.3249	6.4716	6.2943
Average Period RMB Exchange Rate (RMB/USD$)	6.3074	6.5011	6.3933

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PREPAID ACCOUNTS - Additional Information (Detail) (USD $)	Jun. 30, 2012	Mar. 31, 2012
Prepaid Expenses [Line Items]
Prepaid accounts	$ 20,786	$ 20,887
Shandong YCT
Prepaid Expenses [Line Items]
Prepaid accounts	$ 20,786	$ 20,887

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Jun. 30, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

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

Principles of consolidation

The consolidated financial statements include the financial statements of China YCT, Landway Nano and its wholly owned subsidiary, Shandong Spring.  All inter-company transactions and balances are eliminated in consolidation.

Use of estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include: the valuation of inventory, and estimated useful lives and impairment of property and equipment and intangible assets.

Cash and cash equivalents

For the purposes of the statement of cash flow, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Inventory

Inventory is primarily composed of raw materials and packing materials for manufacturing, work in process, and finished goods. Inventories are valued at the lower of cost or market with cost determined on a weighted average basis. Management compares the cost of inventory with the market value and an allowance is made for writing down the inventory to its market value, if lower than cost.

Property and equipment

Property and equipment are stated at cost. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and locations for its intended use. Depreciation is calculated using the straight-like method over the following useful lives:

Buildings	30-35 years
Machinery, equipment and automobiles	7-15 years

Expenditures for maintenance and repairs are charged to expense as incurred. Additions, renewals and betterments are capitalized.

Intangible Assets

(i) Land Use Rights:

All land in the PRC is owned by the government and cannot be sold to any individual or company.  However, the government may grant a “land use right” for occupying, developing and using land. The Company records land use rights obtained as intangible assets at cost, which is amortized evenly over the grant period of 50 years.

(ii) Patents:

In March 2010, the Company purchased one patent from Shandong YCT Corp.  The patent is the Company’s exclusive right to use an aglycone type and purification method of biotransformation in the gingko product manufacturing process for a period of 20 years from the patent application date.  The patent was recorded at cost when purchased, and is being amortized over the shorter of its remaining legal life, 16.5 years, or its useful life, on a straight-line basis.

In October 2011, two patents were transferred to the Company based on a purchase agreement signed with Jining Tianruitong Technology development Company, Limited on October 26, 2010; which are “Treatment to ischemic encephalopathy and its preparation method” (ZL200510045001.9) and “Chinese herbal medicine compound to treat renal insufficiency and its preparation” (ZL200710013301.8). The patents were recorded at cost when purchased, and are being amortized over the shorter of the remaining legal lives, 13.75 years and 14.95 years, respectively; or their useful lives, on a straight-line basis.

On February 28, 2011, the Company acquired an US patent from L.Y. Hong Kong Biotech Limited (LYHK), L.Y. Research Corp’s wholly owned subsidiary incorporated in Hong Kong, China, in exchange for 44,254,952 shares of common stock at the acquisition date. In addition, 11,063,968 shares of common stock became issuable to the seller upon the occurrence of the quotation of the Company’s common stock on the OTCBB on September 9, 2011. The consideration of $32,748,665 at inception was calculated by multiplying 44,254,952 common stock shares by the Company’s quoted stock price of $0.74 per share on February 28, 2011. It is being amortized over the shorter of its remaining legal life, 9.9 years, or its useful life, on a straight-line basis. An additional consideration of $2,765,992 was calculated by multiplying 11,063,968 common stock shares by the Company’s quoted price of $0.25 per share on September 9, 2011 when the Company’s stock was successfully listed on the OTCQB and the L.Y. Research Corp was entitled to the 11,063,968 shares of the common stock. However, at the year ended on March 31, 2012, the Company reassessed the value of this patent for an impairment analysis. Per the impairment analysis, the Company determined that the patent’s value was impaired, therefore, wrote off the net carrying value of the patent as of March 31, 2012.

In accordance with the agreement between the Company and L.Y. Research Corp, the patent will be returned to L.Y. Research Corp. and the shares issued to Dr. Liu Yaguang will be returned to the Company by October, 2012 if the $20 million refinancing target is not achieved.

Revenue recognition

The Company’s revenue recognition policies are in compliance with Staff Accounting Bulletin (“SAB”) 104, included in the Codification as ASC 605, Revenue Recognition. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are recorded as customer deposits.

Unearned revenue

Revenue from the sale of goods or services is recognized at the time that goods are delivered or services are rendered. Receipts in advance for goods to be delivered or services to be rendered in a subsequent period are carried forward as unearned revenue.

Impairment of long-lived assets

The Company reviews and evaluates the net carrying value of its long-lived assets at least annually, or upon the occurrence of other events or changes in circumstances that indicate that the related carrying amounts may not be recoverable. Per ASC 360-10-35-21, a long-lived asset (asset group) shall be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. Per ASC 360-10-35-17, an impairment loss shall be recognized only if the carrying amount of the long-lived asset (asset group) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group).

Income taxes

The Company accounts for income tax under the asset and liability method as stipulated by ASC 740 formerly Statement of Financial Accounting Standards (”SFAS”) No. 109, “ Accounting for Income Taxes ”, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns.  Deferred Income taxes are recognized for all significant temporary differences between tax and financial statements bases of assets and liabilities.  Valuation allowances are established against net deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company did not recognize any deferred tax amount at June 30, 2012 and March 31, 2012.

China YCT International, Inc. is a holding company of Shandong Spring Pharmaceutical Co., Ltd and does not have any operating activities. Although the contract for the acquisition of the US patent acquired in February 2011 from LY Research Corp. was executed by the holding company, in substance, the patent was acquired by the Company’s operating entity in China. For the same reason, the amortization of the patent was a deduction to the Chinese operating entity’s tax liability. Therefore, the Company does not incur any US income tax liabilities.

Value-added tax

Sales revenue represents the invoiced value of goods, net of a Value-Added Tax (“VAT”). All of the Company’s products that are sold in the PRC are subject to a Chinese value-added tax at a rate of 17% of the gross sales price. This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing their finished product.

The Company recorded net VAT Payable in amounts of $43,542 and $225,223 as of June 30, 2012 and March 31, 2012, respectively.

Research and development

Research and development costs are related primarily to the Company’s developing its intellectual property. Research and development costs are expensed as incurred. The costs of material and equipment that are acquired or constructed for research and development activities and have alternative future uses are classified as plant and equipment and depreciated over their estimated useful lives.

The research and development expense for the three months ended June 30, 2012 and 2011 was $222,566 and $193,518, respectively.

Advertising costs

Advertising costs for newspaper and television are expensed as incurred.  The Company incurred advertising costs of $285,379 and $76,910 for the three months ended June 30, 2012 and 2011, respectively.

Mailing and handling costs

The Company accounts for mailing and handling fees in accordance with the FASB ASC 605-45 (Emerging Issues Task Force (EITF) Issue No. 00-10, Accounting for Shipping and Handling Fees and Costs). The Company includes shipping and handling fees billed to customers in net revenues. Amounts incurred by the Company for freight are included in selling expenses. For the three months ended June 30, 2012 and 2011, the Company incurred $278,608 and $390,010 mailing and handling costs, respectively.

Stock Based Compensation

The Company measures compensation expense for its non-employee stock-based compensation under FASB ASC 718. The fair value of the stock issued is used to measure the transaction, as this is more reliable than the fair value of the services received. Fair value is measured as the value of the Company’s common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance is complete. The fair value of the equity instrument is charged directly to compensation expense.

Net income (loss) per share (“EPS”)

Basic EPS excludes dilution and is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (convertible preferred stock, forward contracts, warrants to purchase common stock, contingently issuable shares, common stock options and warrants and their equivalents using the treasury stock method) were exercised or converted into common stock. There are 31,610,679 common stock equivalents available for dilution purposes as of June 30, 2012 and 2011.

Risks and uncertainties

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

Fair Value of Financial Instruments

For certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due to their short maturities.

As of June 30, 2012, the Company did not identify any financial instruments that are required to be presented on the balance sheet at fair value other than those whose carrying amounts approximate fair value due to their short maturities.

Foreign currency translation

The accounts of the Company’s Chinese subsidiary are maintained in the RMB and the accounts of the U.S. parent company are maintained in the USD. The accounts of the Chinese subsidiary were translated into USD in accordance with Accounting Standards Codification (“ASC”) Topic 830 “Foreign Currency Matters,” with the RMB as the functional currency for the Chinese subsidiary. According to Topic 830, all assets and liabilities were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at historical rates and statement of income items are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with ASC Topic 220, “Comprehensive Income.” Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the statements of income.

Translation adjustments resulting from this process amounted to $40,878 and $417,275 for the three months ended June 30, 2012 and 2011, respectively.

The following exchange rates were adopted to translate the amounts from RMB into United States dollars (“USD$”) for the respective periods:

	June 30, 2012		March 31, 2012		June 30, 2011
Three Months End RMB Exchange Rate (RMB/USD$)		6.3249		6.2943		6.4716
Average Period RMB Exchange Rate (RMB/USD$)		6.3074		6.3933		6.5011

Recent accounting pronouncements

In July 2012, FASB issued an amendment to the FASB Codification Topic 350 – Testing Indefinite-Lived Intangible Assets for Impairment. The objective of the amendments in this Update is to reduce the cost and complexity of performing an impairment test for indefinite-lived intangible assets by simplifying how an entity tests those assets for impairment and to improve consistency in impairment testing guidance among long-lived asset categories. The amendments permit an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles – Goodwill and Other – General Intangibles Other than Goodwill. The more likely-than-not threshold is defined as having a likelihood of more than 50 percent. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company decided to adopt the amendment for the year starting with April 1, 2013. The Company does not expect the adoption of this pronouncement to have a significant impact on its financial condition or results of operations.

In June 2011, FASB issued an amendment to the FASB Codification Topic 220 – Presentation of Comprehensive Income. The objective of this Update is to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. To increase the prominence of items reported in other comprehensive income and to facilitate convergence of U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS), the FASB decided to eliminate the option to present components of other comprehensive income as part of the statement of changes in stockholders equity. The amendments require that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In the two-statement approach, the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income, the components of other comprehensive income, and the total of comprehensive income. The amendments in this Update should be applied retrospectively. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2012, and interim and annual periods thereafter. Early adoption is permitted, and the amendments do not require any transition disclosures. The Company decided to adopt the amendment for the year starting with June 1, 2012. The Company does not expect the adoption of this pronouncement to have a significant impact on tis financial condition or results of operations.

In May 2011, FASB issued an amendment to FASB Codification Topic 820 - Fair Value Measurement. The amendments in this Update apply to all reporting entities that are required or permitted to measure or disclose the fair value of an asset, a liability, or an instrument classified in a reporting entity's shareholders' equity in the financial statements. The amendments in this Update result in common fair value measurement and disclosure requirements in U.S. GAAP and IFRSs. Consequently, the amendments change the wording used to value measurements. For many of the requirements, the Board does not intend for the amendments in this Update to result in a change in the application of the requirements in Topic 820. Some of the amendments clarify the Board’s intent about the application of existing fair value measurement requirements. Other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The amendments in this Update are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. For nonpublic entities, the amendments are effective for annual periods beginning after December 15, 2011. Early application by public entities is not permitted. Nonpublic entities may apply the amendments in this Update early, but no earlier than for interim periods beginning after December 15, 2011. The Company does not expect any significant impact in tis financial statements when it is adopted for the year starting from June 1, 2012. The Company does not expect the adoption of this pronouncement to have a significant impact on tis financial condition or results of operations.

In April 2011, FASB issued an amendment to FASB Codification Topic 310 – Receivables: A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring. The amendment requires that, in evaluating whether a restructuring constitutes a troubled debt restructuring, a creditor must separately conclude that both exist: (1) the restructuring constitutes a concession. (2) The debtor is experiencing financial difficulties. The amendments to Topic 310 clarify the guidance on a creditor's evaluation of whether it has granted a concession as well as on a creditor's evaluation of whether a debtor is experiencing financial difficulties. In addition, the amendments to Topic 310 clarify that a creditor is precluded from using the effective interest rate test in the debtor's guidance on restructuring of payables when evaluating whether a restructuring constitutes a troubled debt restructuring. The amendments in this Update are effective for the first interim or annual period beginning on or after June 15, 2011, and should be applied retrospectively to the beginning of the annual period of adoption. As a result of applying these amendments, an entity may identify receivables that are newly considered impaired. For purposes of measuring impairment of those receivables, an entity should apply the amendments prospectively for the first interim or annual period beginning on or after June 15, 2011. As entity should disclose the total amount of receivables and the allowance for credit losses as of the end of the period of adoption related to those receivables that are newly considered impaired under Section 310-10-35 for which impairment was previously measured under Subtopic 450-20, Contingencies-Loss Contingencies. An entity should disclose the information required by paragraphs 310-10-50-33 through 50-34, which was deferred by Accounting Standards Update No. 2011-01, Receivables (Topic 310): Deferral of the Effective Date of disclosures about Troubled Debt Restructurings in Update No. 2010-20, for interim and annual periods beginning on or after June 15, 2011. For nonpublic entities, the amendments in this Update are effective for annual periods ending on or after December 15, 2012, including interim periods within those annual periods. Early adoption is permitted for public and nonpublic entities. A nonpublic entity may early adopt the amendments for any interim period of the fiscal year of adoption. A nonpublic entity that elects early adoption should apply the provisions of this Update retrospectively to restructurings occurring on or after the beginning of the fiscal year of adoption. The Company decides to adopt the amendment for the year starting from June 1, 2012, and the Company does not expect the adoption of this pronouncement to have a significant impact on its financial condition or results of operations.

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Components of Inventories (Detail) (USD $)	Jun. 30, 2012	Mar. 31, 2012
Inventory Disclosure [Line Items]
Raw materials	$ 750,363	$ 272,873
Work-in-progress	1,307,284	414,390
Finished goods	702,457	1,291,225
Total Inventories	$ 2,760,104	$ 1,978,488

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INCOME TAXES - Additional Information (Detail) (USD $)	3 Months Ended			12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011		Mar. 31, 2012
Income Taxes [Line Items]
Expense associated with the recognition of a contingent obligation				$ 5,531,892
Impairment loss				31,680,487
Income tax provisions	743,226	412,051	[1]
CHINA
Income Taxes [Line Items]
Tax difference amount caused by expenses				1,382,973
Tax difference amount caused impairment loss				$ 7,920,122
Shandong Spring Pharmaceutical
Income Taxes [Line Items]
Income tax at statutory rate	25.00%

[1] * Amended

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CONDENSED CONSOLIDATED BALANCE SHEET (USD $)	Jun. 30, 2012	Mar. 31, 2012
Current assets:
Cash and cash equivalent	$ 23,550,337	$ 22,146,240
Accounts receivable		115,938
Prepaid accounts	20,786	20,887
Inventory	2,760,104	1,978,488
Total current assets	26,331,227	24,261,553
Plant, property and equipment, net	9,524,945	9,663,338
Construction in progress	218,918	219,983
Intangible assets, net	18,454,121	18,863,510
Total assets	54,529,211	53,008,384
Current liabilities:
Tax payable	395,190	1,018,543
Other payable	4,694,300	4,766,952
Total current liabilities	5,089,490	5,785,495
Contingency
Derivative liabilities	5,531,892	5,531,892
Total liabilities	10,621,382	11,317,387
Stockholders' Equity
Preferred stock, par value $500.00 per share; 45 shares authorized and issued at March 31, 2012 and March 31, 2011	22,500	22,500
Common stock, par value $0.001 per share; 500,000,000 and 100,000,000 shares authorized, 73,780,610 shares issued and outstanding at March 31, 2012; and 73,731,361 shares issued at March 31, 2011, respectively	73,830	73,780
Additional paid-in capital	36,884,593	36,879,643
Statutory reserve	956,633	956,633
Retained earnings	2,669,995	417,285
Accumulated other comprehensive income	3,300,278	3,341,156
Total stockholders' equity	43,907,829	41,690,997
Total liabilities and stockholders' equity	$ 54,529,211	$ 53,008,384

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (USD $)	3 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash Flows From Operating Activities:
Net income	$ 2,252,710	$ 1,236,152
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	398,887	2,050,602
Issue of common shares as compensation	5,000
Changes in operating assets and liabilities:
Inventory	(781,616)	(1,576,067)
Advance to suppliers	0
Accounts receivable	115,938
Accounts payable		209,871
Taxes payable	(623,353)	(646,397)
Accrued expenses and other payables	(72,654)	(115,624)
Net cash provided by (used in) operating activities	1,294,912	1,158,537
Cash flows from investing activities:
Addition to plant and equipment	(1,914)	(77,596)
Prepayment/(deposit) to Jining Tianruitong for purchase of patents		10,030,688
Net cash provided by (used in) investing activities	(1,914)	9,953,092
Effect of exchange rate changes on cash and cash equivalents	111,099	(841,973)
Net increase (decrease) in cash and cash equivalents	1,404,097	10,269,656
Cash and cash equivalents at beginning of period	22,146,240	6,046,804
Cash and cash equivalents at ending of period	23,550,337	16,316,460
Cash paid during the periods for:
Interest	28,031.00	81.00
Income taxes	1,366,579	1,936,972
Non-cash financing activities:
Stock issued for services	$ 5,000	$ 11,111

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MAJOR CUSTOMER AND VENDOR - Additional Information (Detail) (USD $)	3 Months Ended
	Jun. 30, 2012 Distributor
Concentration Risk [Line Items]
Number of major distributors	9
Supplier Concentration Risk
Concentration Risk [Line Items]
Number of major vendors	3
Purchases from major suppliers	4,744,384
Percentage of purchases from major suppliers	92.00%

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INVENTORY (Tables)

3 Months Ended

Jun. 30, 2012

Components of Inventories

The components of inventories as of June 30, 2012 and March 31, 2012 were as follows:

	Period Ended
	June 30, 2012		March 31, 2012
Raw materials	$	750,363	$	272,873
Work-in-progress		1,307,284		414,390
Finished goods		702,457		1,291,225
Total Inventories	$	2,760,104	$	1,978,488

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Purchases from Major Suppliers (Detail) (Supplier Concentration Risk, USD $)	3 Months Ended
	Jun. 30, 2012
Concentration Risk [Line Items]
Purchases from major suppliers	$ 4,744,384
Shandong Kangyuan
Concentration Risk [Line Items]
Purchases from major suppliers	2,667,460
Shandong YCT
Concentration Risk [Line Items]
Purchases from major suppliers	1,342,190
Shandong Yongfeng
Concentration Risk [Line Items]
Purchases from major suppliers	$ 734,735

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MAJOR CUSTOMER AND VENDOR (Tables)

3 Months Ended

Jun. 30, 2012

Purchases from Major Suppliers

Shandong Kangyuan		2,667,460
Shandong YCT		1,342,190
Shandong Yongfeng		734,735
Total	$	4,744,384

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ORGANIZATION AND PRINCIPAL ACTIVITIES

3 Months Ended

Jun. 30, 2012

ORGANIZATION AND PRINCIPAL ACTIVITIES

NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES

China YCT International Group, Inc. (“China YCT”) was incorporated in the State of Florida, in the United States (the “US”) in January 1989, and reincorporated in the State of Delaware on April 4, 2007.  China YCT principally operates through the following directly owned subsidiaries: Landway Nano Bio-Tech, Inc. (100% owned), incorporated in Delaware, in the United States, and Shandong Spring Pharmaceutical Co., Ltd. (“Shandong Spring”), (100% owned), incorporated in the People’s Republic of China (“PRC”). China YCT International Group, Inc. and its subsidiaries are collectively referred to as the “Company.”

China YCT, through its wholly owned subsidiary, Shandong Spring, is engaged in the business of developing, manufacturing and marketing its own medicine from gingko extract, and other dietary supplement products in the P.R. China.

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CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $)	Jun. 30, 2012	Mar. 31, 2012
Preferred stock, par value	$ 500.00	$ 500.00
Preferred stock, shares authorized	45	45
Preferred stock, shares issued	45	45
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	100,000,000
Common stock, shares issued	73,780,610	73,731,361
Common stock, shares outstanding	73,780,610

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OTHER LIABILITY

3 Months Ended

Jun. 30, 2012

OTHER LIABILITY

NOTE 11 – OTHER LIABILITY

On February 28, 2011, the Company entered into a purchase agreement with L.Y. Research Corp., a New Jersey corporation (“LY Research”), which purchase agreement was amended and restated on August 15, 2011 and amended on October 21, 2011 (the “Purchase Agreement).   Pursuant to the terms of the Purchase Agreement, the Company acquired a patent (the “LY Patent”) from L.Y. (HK) Biotech Limited, a wholly owned company by L.Y. Research Corp., in exchange for 44,254,952 shares of the Company’s common stock at inception date. In addition, there will be two contingent considerations of total 31,610,544 shares to be issued upon the occurrences of some pre-determined events. The first contingent consideration of 11,063,968 shares should be issued upon the Company’s stock being listed on OTCBB or OTCQB.

Because the obligation to issue additional shares to LY Research Cop is contingent upon the occurrence of certain predetermined events, the liability is recognized when the contingencies are resolved. On September 9, 2011, LY Research Corp became entitled to the issuance of 11,063,968 shares of common stock upon the occurrence of the quotation of the Company’s common stock on the OTCQB.   Therefore, the liability to issue 11,063,968 shares of common stocks should be recorded for the quarter ended September 30, 2011 and forward.

The amount of the liability is calculated by multiplying the 11,063,968 shares of stocks by the quoted average stock price on September 9, 2011. The stock price per share on September 9, 2011 was $0.25. The calculation of the liability to issue 11,063,968 shares of the common stocks is as followed:

Other Liability $2,765,992 = 11,063,968 shares x $0.25

We recognized $2,765,992 as an “Other Liability” and an addition to the US patent, for the quarter ended September 30, 2011 and forward.

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Document and Entity Information	3 Months Ended
	Jun. 30, 2012	Aug. 09, 2012
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Trading Symbol	CYIG
Entity Registrant Name	CHINA YCT INTERNATIONAL GROUP, INC.
Entity Central Index Key	0000847464
Current Fiscal Year End Date	--03-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		73,918,110

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DERIVATIVE LIABILITY

3 Months Ended

Jun. 30, 2012

DERIVATIVE LIABILITY

NOTE 12 – DERIVATIVE LIABILITY

On February 28, 2011, the Company entered into a purchase agreement with L.Y. Research Corp., a New Jersey corporation (“LY Research”); and the purchase agreement was amended and restated on August 15, 2011 (the “Purchase Agreement”). Pursuant to the terms of the Purchase Agreement, the Company acquired a patent (the “LY Patent”) from L.Y. (HK) Biotech Limited, a wholly owned company by L.Y. Research Corp., in exchange for 44,254,952 shares of common stock at the acquisition date. In addition, 11,063,968 shares of common stock will be issued to the seller upon the occurrence of the quotation of the Company’s common stock on the OTCQB or OTCBB; and 20,546,711 shares will be issued to the seller upon the receipt by the Company of a minimum of $20,000,000 in gross proceeds from a debt or equity financing, or a series of debt and/or equity financings (the “Financing”); or upon the quotation of its common stock on NASDAQ or a major stock exchange located outside of the United States (collectively, “Events”). On September 9, 2011, the Company’s stock became quoted at OTCQB; therefore, 11,063,968 shares of common stock became issuable on September 9, 2011.

On October 21, 2011, the Purchase Agreement was further amended to state that if either of the Events should not occur within one year from October 21, 2011; the shares issued pursuant to the Purchase Agreement shall be returned to the Company and the LY Patent shall be returned to LY Research and the Purchase Agreement, as amended, shall be cancelled and of no further force or effect. Because the Company is required to acquire the issued shares by returning the US patent if the predetermined financing event is not met, the term meets the definition under the ASC 480-10-25-8, “Obligations to Repurchase Issuer’s Equity Shares by Transferring Assets”. Per ASC 480-10-25-8, the obligation to repurchase an issuer’s own shares by transferring asset should be recognized as a liability at inception.

In addition, because the acquisition is not a certain future event as of October 21, 2011 and June 30, 2012, the Company considers the contingent obligation to repurchase its own shares as a written put option. Per ASC 480-10-30-7, all financial instruments, recognized under the guidance in Section 480-10-25, other than certain physically settled forward purchase contracts, shall be measured initially at fair value.

The fair value of the obligation on October 21, 2011 should be the market price of the shares that the Company is obligated to repurchase if the financing is not consummated and weighted by the probability of the Company failing to meet the financing target of $20,000,000 or achieving the listing on NASDAQ or a major foreign stock exchange. On October 21, 2011, the Company had issued and was obligated to issue 55,318,920 common shares to Dr. Liu. Therefore, the number of potential shares needed to repurchase was 55,318,920 on October 21, 2011 and June 30, 2012.

Determination of the market price of the shares:

Per ASC 820-10-20 “Readily Determinable Fair Value”, “ The fair value of an equity security is readily determinable if sales prices or bid-and-asked quotations are currently available on a securities exchange registered with the U.S. Securities and Exchange Commission (SEC) or in the over-the-counter market, provided that those prices or quotations for the over-the-counter market are publicly reported by the National Association of Securities Dealers Automated Quotations systems or by Pink Sheets LLC. Restricted stock meets that definition if the restriction terminates within one year. ” Because the sales price of the Company’s common stock was currently available in the over-the-counter market, the fair value of the company’s stock is readily determinable and is the sales price of the stock on October 21, 2011. Because the Company’s common stock was not traded on October 21, 2011, the closest quotations were the prices on October 23, 2011, which was $0.40/share; therefore, the fair values per share was $0.40 for October 21, 2011. As of June 30, 2012, the most recent quoted CYIG stock price was $0.10 (at June 26, 2012).

Determination of the probability of the Company failing to meet the predetermined event:

The Company determined that on October 21, 2011, the chance that the final contingency would not be met, thereby triggering our obligation to repurchase those shares, was around 15% based on the reasons described in its amended 10Q for the quarter ended December 31, 2011. Therefore, the Company recognized $3,319,135 as a derivative liability as of December 31, 2011.

However, during March 2012, the Company was informed by its placement agent that it was highly unlikely that they could achieve the $20,00,000 financing by October 21, 2012. Therefore, the Company reassessed the probability of failing to achieve the financing target by October 21, 2012 to be 100% as of June 30, 2012 and March 31, 2012.

The fair value of the derivative obligation at June 30, 2012 and March 31, 2012 was calculated as follows:

$5,531,892 = 55,318,920 x $0.10/share x 100%

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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (USD $)	3 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Sales Revenue	$ 8,916,979	$ 7,944,264
Cost of Goods Sold	4,368,921	3,582,345
Gross Profit	4,548,058	4,361,919
Selling Expenses	870,204	1,179,552
G&A Expense	487,383	1,408,820	[1]
R&D Expenses	222,566	193,518
Total expense	1,580,153	2,781,890
Income from operation	2,967,905	1,580,029
Interest income (Expense)	28,031	(41)
Other income (Expense)		68,215
Profit before tax	2,995,936	1,648,203
Income tax	743,226	412,051	[1]
Net income	2,252,710	1,236,152
Other comprehensive income
Foreign currency translation adjustment	(40,878)	417,275	[1]
Comprehensive income	$ 2,211,832	$ 1,653,427
Basic and diluted income per common share
Basic and Diluted	$ 0.03	$ 0.02	[1]
Weighted average number of common shares outstanding
Basic and Diluted	73,782,832	73,780,610

[1] * Amended

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CONSTRUCTION IN PROGRESS

3 Months Ended

Jun. 30, 2012

CONSTRUCTION IN PROGRESS

NOTE 6 – CONSTRUCTION IN PROGRESS

Construction in progress represents direct costs of construction or acquisition and design fees incurred for the Company’s new plant and equipment. Capitalization of these costs ceases and the construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is made until construction is completed and put into use.

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PLANT, PROPERTY AND EQUIPMENT, NET

3 Months Ended

Jun. 30, 2012

PLANT, PROPERTY AND EQUIPMENT, NET

NOTE 5 – PLANT, PROPERTY AND EQUIPMENT, NET

The components of property and equipment as of June 30, 2012 and March 31, 2012 were as follows:

	Period Ended
	June 30, 2012			March 31, 2012
Machinery & Equipment	$	537,770		$	538,461
Furniture & Fixture		163,740			164,536
Building		10,060,650			10,109,560
Subtotal		10,762,160			10,812,557
Less: Accumulated Depreciation		(1,237,215	)		(1,149,219	)
Total plant, property and equipment, net	$	9,524,945		$	9,663,338

The depreciation expense for the three months ended June 30, 2012 and 2011 was $87,996 and $127,654, respectively.

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PLANT, PROPERTY AND EQUIPMENT, NET (Tables)

3 Months Ended

Jun. 30, 2012

Components of Property and Equipment

The components of property and equipment as of June 30, 2012 and March 31, 2012 were as follows:

	Period Ended
	June 30, 2012			March 31, 2012
Machinery & Equipment	$	537,770		$	538,461
Furniture & Fixture		163,740			164,536
Building		10,060,650			10,109,560
Subtotal		10,762,160			10,812,557
Less: Accumulated Depreciation		(1,237,215	)		(1,149,219	)
Total plant, property and equipment, net	$	9,524,945		$	9,663,338

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STOCKHOLDERS' EQUITY

3 Months Ended

Jun. 30, 2012

STOCKHOLDERS' EQUITY

NOTE 13 - STOCKHOLDERS’ EQUITY

Stock Issued to Independent Directors

During the three months ended June 30, 2012, the Company issued an aggregate of 50,000 shares of its common stock to the Company’s three independent directors as compensation for their services. The shares were valued at $0.10 per share, which was the average market price of the common stock for the five days before the grant date. Therefore, the total amount of compensation in the form of issuing shares of common stock to the independent directors was $5,000 for the three months ended June 30, 2012.

Stock Issued for Acquisition of Patent

On February 28, 2011, the Company issued 44,254,952 shares of common stocks, as a partial of total considerations to acquire a U.S. patent No. 6,475,531 B1 titled “Safe Botanical Drug for Treatment and Prevention of Influenza and Increasing Immune Function”) from L.Y. Research Corp., a New Jersey Corporation.   The shares of the common stocks were valued at the average closing market price on February 28, 2011 in the amount of $32,748,665.

Statutory Reserve

Subsidiaries incorporated in China are required to make appropriations to reserve funds, based on after-tax net income determined in accordance with generally accepted accounting principles of the People’s Republic of China (“PRC GAAP”).  Effective January 1, 2006, the Company is only required to contribute to one statutory reserve fund at 10% of net income after tax per annum, and any contributions are not to exceed 50% of the respective companies’ registered capital.

As of June 30, 2012, the Company appropriated $956,633 to the statutory reserve.

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TAX PAYABLE

3 Months Ended

Jun. 30, 2012

TAX PAYABLE

NOTE 9 - TAX PAYABLE

Tax payable at June 30, 2012 and March 31, 2012 were as follows:

	As of
	June 31, 2012		March 31, 2012
Corporate Income Tax	$	348,333	$	774,423
Value-Added Tax		43,542		225,223
Other Tax & Fees		3,315		18,897
Total Tax Payable	$	395,190	$	1,018,543

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MAJOR CUSTOMER AND VENDOR

3 Months Ended

Jun. 30, 2012

MAJOR CUSTOMER AND VENDOR

NOTE 7 - MAJOR CUSTOMER AND VENDOR

In the three months ended June 30, 2012, the Company mainly sells products to individual retail customers through nine major distributors.

For the three months ended June 30, 2012, the purchase from the three major vendors was $4,744,384, representing 92% of the Company’s total purchase for the quarter.

Shandong Kangyuan		2,667,460
Shandong YCT		1,342,190
Shandong Yongfeng		734,735
Total	$	4,744,384

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INTANGIBLE ASSETS, NET

3 Months Ended

Jun. 30, 2012

INTANGIBLE ASSETS, NET

NOTE 8 - INTANGIBLE ASSETS, NET

The intangible assets of the Company consist of land use right and purchased patents.

Net land use right and purchased patents were as follows:

	Amortization	As of
	Period	June 30, 2012			March 31, 2012
Land use right	50 years	$	1,604,452		$	1,612,252
Less: Accumulated amortization			(185,224	)		(178,052	)
Land use right, net			1,419,228			1,434,200
Patent 1	16.5 years		7,272,842			7,308,199
Patent (non-US No. ZL200510045001.9)	13.75 years		9,802,526			9,850,182
Patent (non-US No. ZL200710013301.8)	14.95 years		1,581,053			1,588,739
Less: Accumulated amortization			(1,621,528	)		(1,317,810	)
Patents, net		$	17,034,893		$	17,429,310

The amortization expense of land use right for the three months ended June 30, 2012 and 2011 was $7,172 and $9,805, respectively.

The amortization expense of the patents for the three months ended June 30, 2012 and 2011 was $303,718 and $1,174,887, respectively.

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INCOME TAXES

3 Months Ended

Jun. 30, 2012

INCOME TAXES

NOTE 10 - INCOME TAXES

Shandong Spring Pharmaceutical Co., Ltd is subject to the Enterprise income tax (“EIT”) at a statutory rate of 25%.

The expense associated with the recognition of a contingent obligation under ASC 480-10-25-8, is not tax deductible in China. Per ASC 740-10-25-3A, “An excess of the amount for financial reporting over the tax basis of an investment in a foreign subsidiary or a foreign corporate joint venture that is essentially permanent in duration. ” Therefore, the tax difference in the amount of $1,382,973 ($5,531,892 x 25% tax rate) caused by expense recognized at our book but not in the Chinese tax return at March 31, 2012 will be a permanent difference. In addition, the loss from impairment of the US patent is not tax deductible in China. Therefore, the tax difference in the amount of $7,920,122 ($31,680,487 x 25%) caused by loss recognized at our book but not in the Chinese tax return at March 31, 2012 will be a permanent difference as well.

For the quarters ended June 30, 2012 and 2011, Shandong Spring Pharmaceutical Co., Ltd. recorded income tax provisions of $743,226 and $412,051, respectively.

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PLANT, PROPERTY AND EQUIPMENT, NET - Additional Information (Detail) (USD $)	3 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 87,996	$ 127,654

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Jun. 30, 2012

Useful Lives of Property and Equipment

Depreciation is calculated using the straight-like method over the following useful lives:

Buildings	30-35 years
Machinery, equipment and automobiles	7-15 years

Exchange Rates Adopted to Translate Amounts from RMB into United States Dollars

The following exchange rates were adopted to translate the amounts from RMB into United States dollars (“USD$”) for the respective periods:

	June 30, 2012		March 31, 2012		June 30, 2011
Three Months End RMB Exchange Rate (RMB/USD$)		6.3249		6.2943		6.4716
Average Period RMB Exchange Rate (RMB/USD$)		6.3074		6.3933		6.5011

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TAX PAYABLE (Tables)

3 Months Ended

Jun. 30, 2012

Tax Payable

Tax payable at June 30, 2012 and March 31, 2012 were as follows:

	As of
	June 31, 2012		March 31, 2012
Corporate Income Tax	$	348,333	$	774,423
Value-Added Tax		43,542		225,223
Other Tax & Fees		3,315		18,897
Total Tax Payable	$	395,190	$	1,018,543

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OTHER LIABILITY - Additional Information (Detail) (USD $)	1 Months Ended		1 Months Ended
	Sep. 09, 2011	Sep. 30, 2011 Patent (U.S. No. 6,475,531 B1)	Sep. 09, 2011 Patent (U.S. No. 6,475,531 B1) L.Y. Hong Kong Biotech Limited	Feb. 28, 2011 Patent (U.S. No. 6,475,531 B1) L.Y. Hong Kong Biotech Limited	Feb. 28, 2011 Patent (U.S. No. 6,475,531 B1) L.Y. Hong Kong Biotech Limited Scenario 1
Other Liabilities [Line Items]
Common stock shares issued to acquire patent				44,254,952
Number of contingent consideration				2
Common stock, shares issuable				31,610,544	11,063,968
Common stock price, per share	$ 0.25		$ 0.25	$ 0.74
Other Liability		$ 2,765,992

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CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $)	Total	Preferred Stock Series A	Common shares	Additional paid-in capital	Statutory Reserve	Accumulated OCI	Retained Earnings
Beginning Balance at Mar. 31, 2012	$ 41,690,997	$ 22,500	$ 73,780	$ 36,879,643	$ 956,633	$ 3,341,156	$ 417,285
Beginning Balance (in shares) at Mar. 31, 2012		45	73,780,610
Issuance of common shares to independent directors (in shares)			50,000
Issuance of common shares to independent directors	5,000		50	4,950
Net income for the year	2,252,710						2,252,710
Foreign currency translation adjustment	(40,878)					(40,878)
Ending Balance at Jun. 30, 2012	$ 43,907,829	$ 22,500	$ 73,830	$ 36,884,593	$ 956,633	$ 3,300,278	$ 2,669,995
Ending Balance (in shares) at Jun. 30, 2012		45	73,830,610

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INVENTORY

3 Months Ended

Jun. 30, 2012

INVENTORY

NOTE 4 - INVENTORY

Inventory consists of finished goods, work-in-process, and raw materials. No allowance for inventory was made for the three months ended June 30, 2012 and 2011.

The components of inventories as of June 30, 2012 and March 31, 2012 were as follows:

	Period Ended
	June 30, 2012		March 31, 2012
Raw materials	$	750,363	$	272,873
Work-in-progress		1,307,284		414,390
Finished goods		702,457		1,291,225
Total Inventories	$	2,760,104	$	1,978,488

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ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional Information (Detail)	3 Months Ended
	Jun. 30, 2012
Landway Nano Bio-Tech, Inc.
Organization and Principal Activities [Line Items]
Percentage of ownership in subsidiaries	100.00%
Shandong Spring Pharmaceutical Co., Ltd.
Organization and Principal Activities [Line Items]
Percentage of ownership in subsidiaries	100.00%

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INTANGIBLE ASSETS, NET - Additional Information (Detail) (USD $)	3 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Land use rights
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 7,172	$ 9,805
Patents
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 303,718	$ 1,174,887

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Jun. 30, 2012

Basis of presentation

Basis of presentation

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

Principles of consolidation

Principles of consolidation

The consolidated financial statements include the financial statements of China YCT, Landway Nano and its wholly owned subsidiary, Shandong Spring.  All inter-company transactions and balances are eliminated in consolidation.

Use of estimates

Use of estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include: the valuation of inventory, and estimated useful lives and impairment of property and equipment and intangible assets.

Cash and cash equivalents

Cash and cash equivalents

For the purposes of the statement of cash flow, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Inventory

Inventory

Inventory is primarily composed of raw materials and packing materials for manufacturing, work in process, and finished goods. Inventories are valued at the lower of cost or market with cost determined on a weighted average basis. Management compares the cost of inventory with the market value and an allowance is made for writing down the inventory to its market value, if lower than cost.

Property and equipment

Property and equipment

Property and equipment are stated at cost. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and locations for its intended use. Depreciation is calculated using the straight-like method over the following useful lives:

Buildings	30-35 years
Machinery, equipment and automobiles	7-15 years

Expenditures for maintenance and repairs are charged to expense as incurred. Additions, renewals and betterments are capitalized.

Intangible Assets

Intangible Assets

(i) Land Use Rights:

All land in the PRC is owned by the government and cannot be sold to any individual or company.  However, the government may grant a “land use right” for occupying, developing and using land. The Company records land use rights obtained as intangible assets at cost, which is amortized evenly over the grant period of 50 years.

(ii) Patents:

In March 2010, the Company purchased one patent from Shandong YCT Corp.  The patent is the Company’s exclusive right to use an aglycone type and purification method of biotransformation in the gingko product manufacturing process for a period of 20 years from the patent application date.  The patent was recorded at cost when purchased, and is being amortized over the shorter of its remaining legal life, 16.5 years, or its useful life, on a straight-line basis.

In October 2011, two patents were transferred to the Company based on a purchase agreement signed with Jining Tianruitong Technology development Company, Limited on October 26, 2010; which are “Treatment to ischemic encephalopathy and its preparation method” (ZL200510045001.9) and “Chinese herbal medicine compound to treat renal insufficiency and its preparation” (ZL200710013301.8). The patents were recorded at cost when purchased, and are being amortized over the shorter of the remaining legal lives, 13.75 years and 14.95 years, respectively; or their useful lives, on a straight-line basis.

On February 28, 2011, the Company acquired an US patent from L.Y. Hong Kong Biotech Limited (LYHK), L.Y. Research Corp’s wholly owned subsidiary incorporated in Hong Kong, China, in exchange for 44,254,952 shares of common stock at the acquisition date. In addition, 11,063,968 shares of common stock became issuable to the seller upon the occurrence of the quotation of the Company’s common stock on the OTCBB on September 9, 2011. The consideration of $32,748,665 at inception was calculated by multiplying 44,254,952 common stock shares by the Company’s quoted stock price of $0.74 per share on February 28, 2011. It is being amortized over the shorter of its remaining legal life, 9.9 years, or its useful life, on a straight-line basis. An additional consideration of $2,765,992 was calculated by multiplying 11,063,968 common stock shares by the Company’s quoted price of $0.25 per share on September 9, 2011 when the Company’s stock was successfully listed on the OTCQB and the L.Y. Research Corp was entitled to the 11,063,968 shares of the common stock. However, at the year ended on March 31, 2012, the Company reassessed the value of this patent for an impairment analysis. Per the impairment analysis, the Company determined that the patent’s value was impaired, therefore, wrote off the net carrying value of the patent as of March 31, 2012.

In accordance with the agreement between the Company and L.Y. Research Corp, the patent will be returned to L.Y. Research Corp. and the shares issued to Dr. Liu Yaguang will be returned to the Company by October, 2012 if the $20 million refinancing target is not achieved.

Revenue recognition

Revenue recognition

The Company’s revenue recognition policies are in compliance with Staff Accounting Bulletin (“SAB”) 104, included in the Codification as ASC 605, Revenue Recognition. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are recorded as customer deposits.

Unearned revenue

Unearned revenue

Revenue from the sale of goods or services is recognized at the time that goods are delivered or services are rendered. Receipts in advance for goods to be delivered or services to be rendered in a subsequent period are carried forward as unearned revenue.

Impairment of long-lived assets

Impairment of long-lived assets

The Company reviews and evaluates the net carrying value of its long-lived assets at least annually, or upon the occurrence of other events or changes in circumstances that indicate that the related carrying amounts may not be recoverable. Per ASC 360-10-35-21, a long-lived asset (asset group) shall be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. Per ASC 360-10-35-17, an impairment loss shall be recognized only if the carrying amount of the long-lived asset (asset group) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group).

Income taxes

Income taxes

The Company accounts for income tax under the asset and liability method as stipulated by ASC 740 formerly Statement of Financial Accounting Standards (”SFAS”) No. 109, “ Accounting for Income Taxes ”, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns.  Deferred Income taxes are recognized for all significant temporary differences between tax and financial statements bases of assets and liabilities.  Valuation allowances are established against net deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company did not recognize any deferred tax amount at June 30, 2012 and March 31, 2012.

China YCT International, Inc. is a holding company of Shandong Spring Pharmaceutical Co., Ltd and does not have any operating activities. Although the contract for the acquisition of the US patent acquired in February 2011 from LY Research Corp. was executed by the holding company, in substance, the patent was acquired by the Company’s operating entity in China. For the same reason, the amortization of the patent was a deduction to the Chinese operating entity’s tax liability. Therefore, the Company does not incur any US income tax liabilities.

Value-added tax

Value-added tax

Sales revenue represents the invoiced value of goods, net of a Value-Added Tax (“VAT”). All of the Company’s products that are sold in the PRC are subject to a Chinese value-added tax at a rate of 17% of the gross sales price. This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing their finished product.

The Company recorded net VAT Payable in amounts of $43,542 and $225,223 as of June 30, 2012 and March 31, 2012, respectively.

Research and development

Research and development

Research and development costs are related primarily to the Company’s developing its intellectual property. Research and development costs are expensed as incurred. The costs of material and equipment that are acquired or constructed for research and development activities and have alternative future uses are classified as plant and equipment and depreciated over their estimated useful lives.

The research and development expense for the three months ended June 30, 2012 and 2011 was $222,566 and $193,518, respectively.

Advertising costs

Advertising costs

Advertising costs for newspaper and television are expensed as incurred.  The Company incurred advertising costs of $285,379 and $76,910 for the three months ended June 30, 2012 and 2011, respectively.

Mailing and handling costs

Mailing and handling costs

The Company accounts for mailing and handling fees in accordance with the FASB ASC 605-45 (Emerging Issues Task Force (EITF) Issue No. 00-10, Accounting for Shipping and Handling Fees and Costs). The Company includes shipping and handling fees billed to customers in net revenues. Amounts incurred by the Company for freight are included in selling expenses. For the three months ended June 30, 2012 and 2011, the Company incurred $278,608 and $390,010 mailing and handling costs, respectively.

Stock Based Compensation

Stock Based Compensation

The Company measures compensation expense for its non-employee stock-based compensation under FASB ASC 718. The fair value of the stock issued is used to measure the transaction, as this is more reliable than the fair value of the services received. Fair value is measured as the value of the Company’s common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance is complete. The fair value of the equity instrument is charged directly to compensation expense.

Net income (loss) per share ("EPS")

Net income (loss) per share (“EPS”)

Basic EPS excludes dilution and is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (convertible preferred stock, forward contracts, warrants to purchase common stock, contingently issuable shares, common stock options and warrants and their equivalents using the treasury stock method) were exercised or converted into common stock. There are 31,610,679 common stock equivalents available for dilution purposes as of June 30, 2012 and 2011.

Risks and uncertainties

Risks and uncertainties

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

Fair Value of Financial Instruments

Fair Value of Financial Instruments

For certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due to their short maturities.

As of June 30, 2012, the Company did not identify any financial instruments that are required to be presented on the balance sheet at fair value other than those whose carrying amounts approximate fair value due to their short maturities.

Foreign currency translation

Foreign currency translation

The accounts of the Company’s Chinese subsidiary are maintained in the RMB and the accounts of the U.S. parent company are maintained in the USD. The accounts of the Chinese subsidiary were translated into USD in accordance with Accounting Standards Codification (“ASC”) Topic 830 “Foreign Currency Matters,” with the RMB as the functional currency for the Chinese subsidiary. According to Topic 830, all assets and liabilities were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at historical rates and statement of income items are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with ASC Topic 220, “Comprehensive Income.” Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the statements of income.

Translation adjustments resulting from this process amounted to $40,878 and $417,275 for the three months ended June 30, 2012 and 2011, respectively.

The following exchange rates were adopted to translate the amounts from RMB into United States dollars (“USD$”) for the respective periods:

	June 30, 2012		March 31, 2012		June 30, 2011
Three Months End RMB Exchange Rate (RMB/USD$)		6.3249		6.2943		6.4716
Average Period RMB Exchange Rate (RMB/USD$)		6.3074		6.3933		6.5011

Recent accounting pronouncements

Recent accounting pronouncements

In July 2012, FASB issued an amendment to the FASB Codification Topic 350 – Testing Indefinite-Lived Intangible Assets for Impairment. The objective of the amendments in this Update is to reduce the cost and complexity of performing an impairment test for indefinite-lived intangible assets by simplifying how an entity tests those assets for impairment and to improve consistency in impairment testing guidance among long-lived asset categories. The amendments permit an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles – Goodwill and Other – General Intangibles Other than Goodwill. The more likely-than-not threshold is defined as having a likelihood of more than 50 percent. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company decided to adopt the amendment for the year starting with April 1, 2013. The Company does not expect the adoption of this pronouncement to have a significant impact on its financial condition or results of operations.

In June 2011, FASB issued an amendment to the FASB Codification Topic 220 – Presentation of Comprehensive Income. The objective of this Update is to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. To increase the prominence of items reported in other comprehensive income and to facilitate convergence of U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS), the FASB decided to eliminate the option to present components of other comprehensive income as part of the statement of changes in stockholders equity. The amendments require that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In the two-statement approach, the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income, the components of other comprehensive income, and the total of comprehensive income. The amendments in this Update should be applied retrospectively. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2012, and interim and annual periods thereafter. Early adoption is permitted, and the amendments do not require any transition disclosures. The Company decided to adopt the amendment for the year starting with June 1, 2012. The Company does not expect the adoption of this pronouncement to have a significant impact on tis financial condition or results of operations.

In May 2011, FASB issued an amendment to FASB Codification Topic 820 - Fair Value Measurement. The amendments in this Update apply to all reporting entities that are required or permitted to measure or disclose the fair value of an asset, a liability, or an instrument classified in a reporting entity's shareholders' equity in the financial statements. The amendments in this Update result in common fair value measurement and disclosure requirements in U.S. GAAP and IFRSs. Consequently, the amendments change the wording used to value measurements. For many of the requirements, the Board does not intend for the amendments in this Update to result in a change in the application of the requirements in Topic 820. Some of the amendments clarify the Board’s intent about the application of existing fair value measurement requirements. Other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The amendments in this Update are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. For nonpublic entities, the amendments are effective for annual periods beginning after December 15, 2011. Early application by public entities is not permitted. Nonpublic entities may apply the amendments in this Update early, but no earlier than for interim periods beginning after December 15, 2011. The Company does not expect any significant impact in tis financial statements when it is adopted for the year starting from June 1, 2012. The Company does not expect the adoption of this pronouncement to have a significant impact on tis financial condition or results of operations.

In April 2011, FASB issued an amendment to FASB Codification Topic 310 – Receivables: A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring. The amendment requires that, in evaluating whether a restructuring constitutes a troubled debt restructuring, a creditor must separately conclude that both exist: (1) the restructuring constitutes a concession. (2) The debtor is experiencing financial difficulties. The amendments to Topic 310 clarify the guidance on a creditor's evaluation of whether it has granted a concession as well as on a creditor's evaluation of whether a debtor is experiencing financial difficulties. In addition, the amendments to Topic 310 clarify that a creditor is precluded from using the effective interest rate test in the debtor's guidance on restructuring of payables when evaluating whether a restructuring constitutes a troubled debt restructuring. The amendments in this Update are effective for the first interim or annual period beginning on or after June 15, 2011, and should be applied retrospectively to the beginning of the annual period of adoption. As a result of applying these amendments, an entity may identify receivables that are newly considered impaired. For purposes of measuring impairment of those receivables, an entity should apply the amendments prospectively for the first interim or annual period beginning on or after June 15, 2011. As entity should disclose the total amount of receivables and the allowance for credit losses as of the end of the period of adoption related to those receivables that are newly considered impaired under Section 310-10-35 for which impairment was previously measured under Subtopic 450-20, Contingencies-Loss Contingencies. An entity should disclose the information required by paragraphs 310-10-50-33 through 50-34, which was deferred by Accounting Standards Update No. 2011-01, Receivables (Topic 310): Deferral of the Effective Date of disclosures about Troubled Debt Restructurings in Update No. 2010-20, for interim and annual periods beginning on or after June 15, 2011. For nonpublic entities, the amendments in this Update are effective for annual periods ending on or after December 15, 2012, including interim periods within those annual periods. Early adoption is permitted for public and nonpublic entities. A nonpublic entity may early adopt the amendments for any interim period of the fiscal year of adoption. A nonpublic entity that elects early adoption should apply the provisions of this Update retrospectively to restructurings occurring on or after the beginning of the fiscal year of adoption. The Company decides to adopt the amendment for the year starting from June 1, 2012, and the Company does not expect the adoption of this pronouncement to have a significant impact on its financial condition or results of operations.