BEIJING, March 28, 2011 /PRNewswire-Asia-FirstCall/ --
Lotus Pharmaceuticals, Inc. (OTC Bulletin Board: LTUS) ("Lotus" or
the "Company"), a fast-growing, profitable developer, manufacturer
and seller of medicine and drugs in the
People's Republic of China ("PRC"), today announced its
financial results for the fourth quarter and fiscal year ended
December 31, 2010. Summary financial
data is provided below:
Fiscal Year 2010 Financial Highlights
- Revenues for the 2010 fiscal year increased by 28.7%
year-over-year to $72.7 million, up
from $56.5 million in 2009.
- Wholesale revenue was $51.4
million, or 70.7% of total revenues.
- Retail revenues were $21.3
million, or 29.3% of total revenues.
- Gross profit for the year was $39.8
million, an increase of 26.6% compared to $31.4 million in 2009. Gross margin was 54.7% and
55.6% in 2010 and 2009, respectively.
- Adjusted* net income increased 16.7% to $21.2 million, compared to $18.2 million in 2009
- GAAP net income decreased 12.2% year-over-year to $14.4 million, compared to $16.4 million in the previous year
- Earnings per diluted share were $0.54 for the year, compared with diluted EPS of
$0.66 achieved in the previous
year
Fourth Quarter Financial Highlights
- Revenues for the three months ended December 31, 2010 increased by 21.9%
year-over-year to $20.1 million, up
from $16.5 million in the fourth
quarter of 2009
- Wholesale revenues were $13.9
million, or 69.0% of total revenues
- Retail revenues were $6.2
million, or 31.0% of total revenues
- Gross profit for the fourth quarter was $10.5 million, an increase of 25.2% compared to
$8.4 million in 2009. Gross margin
was 52.1% and 50.8% for the three months ended December 31, 2010 and 2009, respectively.
- Adjusted* net income decreased 26.6% to $3.2 million, compared to $4.4 million in 2009
- GAAP net loss for the three months ended December 31, 2010 was $3.5
million.
- Loss per diluted share was $0.13
for the quarter, compared with diluted EPS of $0.11 achieved in the same period a year ago
*2010 net income adjusted for one-time impairment loss of
$6.8 million ($0.25
on a diluted EPS basis) on construction in progress in
Inner Mongolia. 2009 net income adjusted for one-time
property and equipment impairment loss of $1.7 million ($0.07 on a
diluted EPS basis) to recognize the removal of a
portion of a Beijing En Ze Jia Shi building in order to construct
the new Beijing facility.
Mr. Zhongyi Liu, Chairman and CEO
of Lotus, stated, "We continued to expand our business in 2010 and
saw especially strong growth of 83% in our retail sales segment. We
entered the market for direct sales to over-the-counter drugstores
in Beijing in 2010 and have
already experienced tremendous success, serving more than 1,000 OTC
drugstores in addition to our own 10 stores. We expect this channel
to continue being a major sales growth driver in the coming year.
Construction of our Beijing
facility continues to progress, and we anticipate significant
efficiency improvements and additional capacity for growth once we
move into the new building."
Mr. Liu continued, "We plan to focus our capital expenditures in
the foreseeable future on the completion of our Beijing facility and our core business in
Beijing; as a result, we
recognized a one-time, non-cash impairment loss for construction
expenditures on our property in Inner Mongolia in 2010. Lotus has a
well-established nationwide sales and distribution network, strong
product development capabilities, and access to capital. Due to the
trends of consolidation and increasing regulatory oversight in
China's pharmaceuticals industry,
we believe these characteristics position Lotus to emerge as an
industry leader."
Fiscal Year 2010 Results of Operations
Revenues
Revenues for the fiscal year ended December 31, 2010 were $72.7 million, compared to $56.5 million in 2009. The increase of 28.7%, or
$16.2 million, was primarily due to
increased sales from the Company's five new wholesale drugs added
to its wholesale distribution channel in fiscal 2010. Wholesale
revenue increased 14.7% year-over-year to $51.4 million, or 70.7% of total revenues. Retail
revenues increased 82.9% year-over-year to $21.3 million, or 29.3% of total revenues. The
growth in retail revenues was primarily attributable to the success
of the Company's sales force and new general manager for its
Over-the-Counter Drug Division, which served the Company's ten
stores and more than 1,000 other OTC drug stores in Beijing during fiscal 2010.
Gross Profit
Gross profit for the year ended December
31, 2010 was $39.8 million or
54.7% of total net revenues, as compared to $31.4 million or 55.6% of total net revenues for
the year ended December 31, 2009.
The increase of 26.6%, or $8.3
million, was primarily attributable to the revenue growth
and the margin improvement in the wholesale segment from 2009 to
2010. The increase in wholesale gross margin was offset by higher
growth in the lower-margin retail segment, as well as lower unit
sales prices and higher inventory turnover in Lotus' retail
operations to compensate for a loss of warehouse space due to the
construction of the new Beijing
facility, causing overall gross margin to decline slightly.
Income from Operations
Operating income amounted to $14.5
million for the year ended December
31, 2010 as compared to operating income of $18.0 million for the previous year. The decrease
of 19.2%, or $3.5 million, was due
largely to a one-time property and equipment impairment loss
recognized in the amount of $6,762,659 and an increase in professional fees.
The Company purchased land in Inner Mongolia in 2008 and had
originally intended to build a pharmaceutical manufacturing and
storage facility on a portion of the property. Construction began
in August 2008 and stopped because
priority of capital expenditure was given to construction of the
Company's new building complex in Beijing. Because management currently believes
it is probable that Lotus will not move forward with the
construction of the planned facility in Inner Mongolia, the Company
recorded an impairment loss on the entire construction in progress
in fiscal 2010.
Net Income
Net income for the year ended December
31, 2010 was $14.4 million as
compared to $16.4 million for the
year ended December 31, 2009, due to
the reasons set forth above. Earnings per diluted share were
$0.54 for the year, compared with
diluted EPS of $0.66 for the previous
year.
Non-GAAP net income in 2010, adjusted net of the non-cash asset
impairment expense, was $21.2
million, as compared to non-GAAP adjusted net income of
$18.2 million in 2009, representing a
year-over-year increase of 16.7%. Adjusted diluted EPS was
$0.78 and $0.73 for fiscal 2010 and 2009, respectively.
Liquidity and Capital Resources
As of December 31, 2010, the
Company's current assets were $4.5
million and current liabilities were $8.1 million. Cash and cash equivalents totaled
$1.3 million as of December 31, 2010. The Company's shareholders'
equity at December 31, 2010 was
$89.0 million. The Company generated
$26.8 million in cash from operating
activities in 2010, compared to $31.4
million in 2009. The Company used $29.4 million in net cash for investing
activities during 2010, compared to $28.7
million in 2009.
Recent Business Highlights
- The Company began constructing its headquarters building in
March 2010. Once completed, this
state-of-the-art building will host the Company's GMP manufacturing
facility, a storage warehouse, an R&D center, a sales and
marketing center, and administrative offices, as well as employee
apartments. Currently the building is in its final external and
internal furnishing stage. Due to a number of events that are out
of the Company's control, such as a temporary ban on construction
projects during the National People's Congress and Chinese People's
Political Consultative Conference in March, and the requirement for
government inspection at numerous stages of the construction to
ensure the high quality of the building, the Company now expects to
complete and move into the facility by the end of the year.
- The Company's wholly owned subsidiary, En Ze Jia Shi
Pharmaceuticals, has been issued a patent by the State Intellectual
Property Office of the People's Republic
of China for controlled-release oral gliclazide, which is
commonly used to control mild to moderate adult-onset Type 2
diabetes. The patent covers the composition and preparation methods
for the drug through 2028.
- R-bambuterol, the Company's proprietary drug candidate for the
treatment of asthma, entered the clinical trial stage in
August 2010 and began Phase I
clinical trials in November 2010. The
Phase I studies were designed to evaluate the drug's safety,
tolerability, and pharmacokinetics, and Lotus expected to enroll 78
healthy volunteers. Based on the contract with the clinical
research organization (CRO), Beijing Zenith International Medical
Science and Technology Development Company, management expects to
receive the results from the Phase I trial in the second quarter of
2011.
- Liang Fang Pharmaceutical Co., the Company's operating entity,
signed contracts at the PHARMCHINA 64th National Drug Fair
Conference with five additional regional distributors for the
Company's products from multiple regions across China. The addition of the new distributors
increases Lotus' sales distribution network from 195 hospitals and
distributors to 200. In addition, the Company entered into
distribution contracts with six pharmaceutical manufacturing
companies and will act as the exclusive distributor for their
products in the Beijing area.
- The Company announced its plan to make the best use of its land
asset in Inner Mongolia. Specifically, management plans to build a
100-mu pharmaceutical distribution center in Inner Mongolia, which
is expected to begin construction in 2011. For the remaining
approximately 900 mu of land, the Company plans to make the best
use of the asset, including co-developing or selling it to a third
party.
- The Company announced that it will add an additional 9,000 sq.
meters (97,000 sq. feet) to its new headquarters building in
Chaoyang District, Beijing, which
is currently under construction and is scheduled to be completed by
the end of June 2011. The new
construction will contain between 90 and 120 apartments for
employees, bringing the total gross area to 34,000 sq. meters
(366,000 sq. feet).
- Lotus submitted an application for a listing on a U.S. national
securities exchange in December 2010.
In February, the Company received the initial comments from the
exchange. The Company filed a response letter shortly thereafter
and is currently waiting for a response from the exchange.
Business Outlook for 2011
Management anticipates that 2011 will be a transitional year for
Lotus Pharmaceuticals, as the Company will be completing and moving
into its new headquarters and shifting its focus to the wholesale
business in Beijing and the
surrounding areas. After the completion of the headquarters, the
Company expects strong growth driven by the wholesale business in
Beijing and surrounding areas
starting in 2012.
The Company expects total revenue and profitability to be flat
or slightly down in fiscal 2011 compared to 2010. Specifically,
management anticipates continued growth in Lotus' retail business
in 2011, driven primarily by strong growth in the OTC sales
division. However, revenue from the wholesale business is expected
to decrease in 2011, as the Company will lose revenue from one of
its self-branded products, Muxin (an eye drop), due to the
termination of its outsourcing agreement and inability to stock the
product. In addition, the Company will undertake a strategic shift
as management prepares to enter the wholesale market in
Beijing.
Conference Call and Webcast
Management will host a conference call to discuss these
financial results on Wednesday, March 30,
2011 at 10:00 a.m. Eastern
time (7:00 a.m. Pacific).
To participate in the call, please dial (877) 941-1430, or (480)
629-9667 for international calls, approximately 10 minutes prior to
the scheduled start time.
A replay of the call will be available for two weeks from
1:00 p.m. EDT on March 30, 2011, until 11:59 p.m. EDT on April
13, 2011. The number for the replay is (877) 870-5176, or
(858) 858-384-5517 for international calls; the passcode for the
replay is 4428670.
About Lotus Pharmaceuticals, Inc.
Lotus Pharmaceuticals, Inc. is a fast-growing, profitable
developer and producer of drugs and a licensed national seller of
pharmaceutical items in the People's
Republic of China (PRC). Lotus operates its business through
its two controlled entities: Liang Fang Pharmaceutical, Ltd. and En
Ze Jia Shi Pharmaceutical, Ltd. Lotus' current drug development is
focused on the treatment of cerebro-cardiovascular diseases, asthma
and diabetes. Liang Fang sells drugs
directly and indirectly through its national sales channels to
hospitals, clinics and drugs stores in 30 provinces of the PRC.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the
statements in this press release are forward-looking statements
that are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks and uncertainties, which
may cause our actual results in future periods to differ materially
from forecasted results. These risks and uncertainties include,
among other things, product demand, market competition, and risks
inherent in our operations. These and other risks are described in
our filings with the U.S. Securities and Exchange
Commission.
Contacts:
At the Company:
|
|
Xing Shen, Ph.D.
|
|
VP of Corporate
Development
|
|
Lotus Pharmaceuticals,
Inc.
|
|
Ph: 415-690-7688
|
|
Email:
shen@lotuspharma.com
|
|
Web: http://www.lotuspharma.com
|
|
|
|
Investor
Relations:
|
|
Dave Gentry,
President
|
|
RedChip Companies,
Inc.
|
|
Tel: +1-800-733-2447, Ext.
104
|
|
Email: info@redchip.com
|
|
Web: http://www.redchip.com
|
|
|
|
|
LOTUS
PHARMACEUTICALS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
For the
Years Ended
|
|
|
|
December
31,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
NET REVENUES:
|
|
|
|
|
|
Wholesale
|
|
$
51,412,468
|
|
$
44,842,525
|
|
Retail
|
|
21,284,150
|
|
11,639,923
|
|
|
|
|
|
|
|
Total Net
Revenues
|
|
72,696,618
|
|
56,482,448
|
|
|
|
|
|
|
|
COST OF REVENUES:
|
|
|
|
|
|
Wholesale
|
|
16,801,703
|
|
16,700,366
|
|
Retail
|
|
16,114,496
|
|
8,351,354
|
|
|
|
|
|
|
|
Total Cost of
Revenues
|
|
32,916,199
|
|
25,051,720
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
39,780,419
|
|
31,430,728
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
Selling
expenses
|
|
10,392,378
|
|
8,040,161
|
|
Research and
development expenses
|
|
86,545
|
|
-
|
|
Impairment
loss
|
|
6,762,659
|
|
1,719,884
|
|
General and
administrative expenses
|
|
8,016,353
|
|
3,693,869
|
|
|
|
|
|
|
|
Total
Operating Expenses
|
|
25,257,935
|
|
13,453,914
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
14,522,484
|
|
17,976,814
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
Debt issuance
costs
|
|
(52,226)
|
|
(412,184)
|
|
Other
income
|
|
784,461
|
|
1,342,197
|
|
Interest
income
|
|
3,142
|
|
48,520
|
|
Interest
expense
|
|
(612,626)
|
|
(2,154,373)
|
|
|
|
|
|
|
|
Total
Other Income (Expense)
|
|
122,751
|
|
(1,175,840)
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
14,645,235
|
|
16,800,974
|
|
|
|
|
|
|
|
INCOME TAXES
|
|
220,292
|
|
368,680
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
14,424,943
|
|
$
16,432,294
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME:
|
|
|
|
|
|
Foreign currency
translation gain
|
|
2,789,989
|
|
131,989
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
|
|
$
17,214,932
|
|
$
16,564,283
|
|
|
|
|
|
|
|
NET INCOME PER COMMON
SHARE:
|
|
|
|
|
|
Basic
|
|
$
0.55
|
|
$
0.74
|
|
Diluted
|
|
$
0.54
|
|
$
0.66
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
Basic
|
|
26,177,900
|
|
22,104,928
|
|
Diluted
|
|
26,996,397
|
|
25,023,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these consolidated
financial statements
|
|
|
|
|
|
|
|
|
|
|
LOTUS
PHARMACEUTICALS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
As of
December 31,
|
|
|
|
|
2010
|
|
2009
|
|
ASSETS
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash
|
|
$
1,339,972
|
|
$
3,945,740
|
|
|
Accounts receivable
|
1,973,150
|
|
1,784,194
|
|
|
Security deposit
|
16,682
|
|
16,132
|
|
|
Inventories
|
|
634,583
|
|
1,039,867
|
|
|
Prepaid expenses
|
577,077
|
|
856,691
|
|
|
Deferred debt costs
|
-
|
|
52,226
|
|
|
|
|
|
|
|
|
|
|
Total Current Assets
|
4,541,464
|
|
7,694,850
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT,
net
|
39,337,935
|
|
16,223,775
|
|
|
|
|
|
|
|
|
OTHER ASSETS
|
|
|
|
|
|
Prepaid expenses
|
-
|
|
1,359,583
|
|
|
Land use right held for
development
|
29,236,891
|
|
-
|
|
|
Deposits and Installments on
intangible assets
|
9,528,419
|
|
9,214,299
|
|
|
Land use right, net
|
12,932,421
|
|
41,673,492
|
|
|
Other intangible assets,
net
|
7,607,485
|
|
8,214,936
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$
103,184,615
|
|
$
84,380,935
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable
|
$
37,829
|
|
$
-
|
|
|
Other payables and accrued
liabilities
|
3,441,466
|
|
2,690,684
|
|
|
Taxes payable
|
2,024,565
|
|
3,131,908
|
|
|
Unearned revenue
|
504,442
|
|
1,163,771
|
|
|
Due to related
parties
|
2,042,376
|
|
1,490,649
|
|
|
Series A convertible redeemable
preferred stock, $.001 par value; 10,000,000 shares
|
|
|
|
|
|
authorized; 607,107 and
4,967,959 shares issued and outstanding
|
|
|
|
|
|
at December 31, 2010 and 2009,
respectively, net of discount
|
-
|
|
4,170,572
|
|
|
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
8,050,678
|
|
12,647,584
|
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Due to related
parties
|
869,067
|
|
866,102
|
|
|
Notes payable - related
parties
|
5,241,829
|
|
5,069,023
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
14,161,574
|
|
18,582,709
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTIGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
Preferred stock ($.001 par
value; 10,000,000 shares authorized;
|
|
|
|
|
|
607,107 and 4,967,959 shares
issued and outstanding
|
|
|
|
|
|
at December 31, 2010 and 2009,
respectively)
|
607
|
|
-
|
|
|
Common stock ($.001 par value;
100,000,000 and 200,000,000
shares authorized;
|
|
|
|
|
|
26,763,485 and 23,653,166
shares issued and outstanding
|
|
|
|
|
|
at December 31, 2010 and 2009,
respectively)
|
26,763
|
|
23,653
|
|
|
Additional paid-in
capital
|
21,679,147
|
|
15,672,981
|
|
|
Statutory reserves
|
6,240,202
|
|
5,674,324
|
|
|
Retained earnings
|
53,925,101
|
|
40,066,036
|
|
|
Accumulated other comprehensive
income
|
7,151,221
|
|
4,361,232
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' Equity
|
89,023,041
|
|
65,798,226
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$
103,184,615
|
|
$
84,380,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these consolidated
financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOTUS
PHARMACEUTICALS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
For the
Years Ended
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
Net income
|
|
$ 14,424,943
|
|
$
16,432,294
|
|
|
Adjustments to reconcile net
income from operations to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
480,046
|
|
425,895
|
|
|
|
Amortization of intangible
assets
|
|
1,767,722
|
|
1,560,466
|
|
|
|
Loss on impairment
|
|
6,762,659
|
|
1,719,884
|
|
|
|
Amortization of deferred debt
issuance costs
|
|
52,226
|
|
412,184
|
|
|
|
Amortization of discount on
convertible redeemable preferred stock
|
|
151,553
|
|
1,196,106
|
|
|
|
Amortization of prepaid expense
attributable to warrants
|
|
-
|
|
14,849
|
|
|
|
Warrants issued for
service
|
|
170,041
|
|
-
|
|
|
|
Interest expense attributable to
beneficial conversion feature of preferred shares
|
184,660
|
|
-
|
|
|
|
Stock issued for
service
|
|
765,749
|
|
-
|
|
|
|
Stock issued for
compensation
|
|
246,000
|
|
282,083
|
|
|
|
Interest expenses caused by
escrow shares transfer
|
|
-
|
|
337,500
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(124,976)
|
|
4,361,619
|
|
|
|
Other receivable
|
|
-
|
|
(336)
|
|
|
|
Other receivable - related
party
|
|
-
|
|
2,031,902
|
|
|
|
Inventories
|
|
429,879
|
|
2,755,869
|
|
|
|
Prepaid expenses
|
|
1,654,229
|
|
11,643
|
|
|
|
Accounts payable
|
|
36,898
|
|
(172,330)
|
|
|
|
Other payables and accrued
liabilities
|
|
1,173,055
|
|
1,054,423
|
|
|
|
Taxes payable
|
|
(1,184,209)
|
|
(1,895,451)
|
|
|
|
Unearned revenue
|
|
(681,787)
|
|
596,414
|
|
|
|
Due to related
parties
|
|
467,088
|
|
237,452
|
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY OPERATING
ACTIVITIES
|
|
26,775,776
|
|
31,362,466
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
Payments on intangible
assets
|
|
-
|
|
(17,581,071)
|
|
|
|
Purchase of property and
equipment
|
|
(29,448,568)
|
|
(11,118,884)
|
|
|
|
|
|
|
|
|
|
|
NET CASH USED IN INVESTING
ACTIVITIES
|
|
(29,448,568)
|
|
(28,699,955)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY
FINANCING ACTIVITIES
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE ON
CASH
|
|
67,024
|
|
4,421
|
|
|
|
|
|
|
|
|
|
|
NET (DECREASE) INCREASE IN
CASH
|
|
(2,605,768)
|
|
2,666,932
|
|
|
|
|
|
|
|
|
|
|
CASH - beginning of
year
|
|
3,945,740
|
|
1,278,808
|
|
|
|
|
|
|
|
|
|
|
CASH - end of year
|
|
$
1,339,972
|
|
$
3,945,740
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
|
|
|
|
|
|
|
Cash paid for:
|
|
|
|
|
|
|
|
Interest
|
|
$
-
|
|
$
-
|
|
|
|
Income taxes
|
|
$
647,189
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing and financing
activities:
|
|
|
|
|
|
|
|
Common stock issued for
conversion of
convertible redeemable preferred
stock
|
$
4,048,200
|
|
$
1,110,000
|
|
|
|
Convertible redeemable preferred
stock
reclassified to permanent
equity
|
|
$
595,233
|
|
$
-
|
|
|
|
The
accompanying notes are an integral part of these consolidated
financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Lotus Pharmaceuticals, Inc.