XIANYANG, China, May 19, 2017 /PRNewswire/ - Biostar
Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or "the Company"),
a PRC-based manufacturer and marketer of pharmaceutical and health
supplement products in China for a
variety of diseases and conditions, today announced its financial
results for first quarter ended March 31,
2017.
During the fiscal first quarter of 2017, the Company
recognized:
- No net sales, a decrease of approximately $0.8 million or 100% as compared to the same
period in 2016.
- No gross profit, a decreased of approximately $0.3 million or 100% as compared to the same
period in 2016.
- Net loss of $1.0 million as
compared to net loss of $0.6 million
for the same period in 2016.
The Company had no sales on all Aoxing Pharmaceutical Products
in the three months ended March 31,
2017 as Aoxing Pharmaceutical temporarily stopped production
to conduct maintenance of its production lines in order to renew
its GMP certificates which is expected to be renewed in the second
quarter of 2017 at which time the production is expected to resume.
There is no assurance that the production lines at Aoxing will
resume as expected and the renewal of GMP certificates will occur
when anticipated, or even if such certificated are renewed, the
Company will be able to return to the anticipated production
levels, which, in turn, may have material adverse effects on our
business, operations, financial performance and value of its
securities. The Company also had no sales on Shaanxi Weinan's
products during the first quarter of 2017 due to replacing
production equipment to comply with government's environmental
protection requirements. The Company currently anticipates that the
production of Shaanxi Weinan products will resume in the second
quarter of 2017. The temporary suspension of production has
materially negatively affected the Company's operating results; as
a result, there may be substantial doubt regarding the Company's
ability to continue as a going concern.
*The Company's Condensed Consolidated Balance Sheets,
Statement of Operations, and Cash Flows can be found at the end of
this press release. Please also refer the Company's Quarterly
Report on Form 10-Q filed with the U.S. Securities and Exchange
Commission for further information regarding the Company's results
of operations, including updated risk factors facing the
Company.
About Biostar Pharmaceuticals, Inc.
Biostar Pharmaceuticals, Inc., through its wholly owned
subsidiary and controlled affiliate in China, develops, manufactures, and markets
pharmaceutical and health supplement products for a variety of
diseases and conditions. For more information please visit:
http://www.biostarpharmaceuticals.com.
Safe Harbor Relating to the Forward-Looking
Statements
Certain statements in this release concerning our future growth
prospects are forward-looking statements, within the meaning of
Section 27A of the U.S. Securities Act of 1933, as amended, and
Section 21E of the U.S. Securities Exchange Act of 1934, as
amended, which involve a number of risks and uncertainties that
could cause actual results to differ materially from those in such
forward-looking statements. The company uses words and phrases such
as "guidance," "forecasted," "projects," "is expected," "remain
confident," "will" and similar expressions to identify
forward-looking statements in this press release, including
forward-looking statements. Undue reliance should not be placed on
forward-looking information. Forward-looking information is based
on current expectations, estimates and projections that involve a
number of risks, which could cause actual results to vary and in
some instances to differ materially from those anticipated by
Biostar and described in the forward-looking information contained
in this news release. The risks and uncertainties relating to these
statements include, but are not limited to, risks and uncertainties
regarding the Company's ability to complete the certification
renewal process in the time frame currently anticipated, the
Company's ability to resume production as anticipated, its ability
to sustain its sales effort going forward, its ability promptly and
effectively to return to the normal production levels, its ability
to retain existing and retain new customers for its products, its
ability to achieve the projected sales through the efforts of the
call center, to complete the contemplated clinical trials and
capitalize on such opportunities, the Company's ability to recover
its sales and revenue following the repair and maintenance for GMP
certification renewal, the state of consumer confidence and market
demand or the Company's products, success of our investments, risks
and uncertainties regarding fluctuations in earnings, our ability
to sustain our previous levels of profitability including on
account of our ability to manage growth, intense competition, wage
increases in China, our ability to
attract and retain highly skilled professionals, time and cost
overruns on fixed-price, fixed-time frame contracts, client
concentration, our ability to successfully complete and integrate
potential acquisitions, withdrawal of governmental fiscal
incentives, political instability and regional conflicts and legal
restrictions on raising capital or acquiring companies outside
China. Additional risks that could
affect our future operating results are more fully described in our
United States Securities and Exchange Commission filings including
our most recent Annual Report on Form 10-K for the year ended
December 31, 2016, and other
subsequent filings. These filings are available
at www.sec.gov. We may, from time to time, make additional
written and oral forward-looking statements, including statements
contained in our filings with the Securities and Exchange
Commission and our reports to shareholders. We do not undertake to
update any forward-looking statements that may be made from time to
time by or on our behalf.
Investor Relations Contact
Please send questions or comments to:
Biostar Pharmaceuticals, Inc.
Investor Relations Coordinator
+86-29-3368-6638
office@aoxing-group.com
http://www.biostarpharmaceuticals.com
|
BIOSTAR
PHARMACEUTICALS, INC.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
483,858
|
|
$
|
173,290
|
|
Accounts receivable,
net
|
|
5,555,998
|
|
|
6,741,454
|
|
Inventories
|
|
164,696
|
|
|
166,564
|
|
Deposits and other
receivables
|
|
17,197
|
|
|
171,062
|
|
Value-added tax
recoverable
|
|
48,139
|
|
|
41,462
|
|
Income tax
recoverable
|
|
72,669
|
|
|
71,292
|
|
Total Current
Assets
|
|
6,342,557
|
|
|
7,365,124
|
|
|
|
|
|
|
|
Non-current
Assets
|
|
|
|
|
|
|
Deposits
|
|
21,312,776
|
|
|
21,148,284
|
|
Deferred tax assets,
net
|
|
2,534,837
|
|
|
2,515,272
|
|
Property and
equipment, net
|
|
5,817,166
|
|
|
5,866,612
|
|
Intangible assets,
net
|
|
5,485,240
|
|
|
5,607,146
|
|
Total Non-Current
Assets
|
|
35,150,019
|
|
|
35,137,314
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
41,492,576
|
|
$
|
42,502,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Accounts and other
payables
|
$
|
2,528,402
|
|
$
|
2,842,142
|
|
Short-term bank
loans
|
|
2,343,732
|
|
|
2,325,643
|
|
Warrants
liability
|
|
438,510
|
|
|
455,476
|
|
Total Current
Liabilities
|
|
5,310,644
|
|
|
5,623,261
|
|
|
|
|
|
|
|
Commitment and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
Common stock, $0.001
par value, 100,000,000 shares authorized,
|
|
2,637
|
|
|
2,637
|
|
|
|
|
|
|
|
2,637,188
shares issued and outstanding as of
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, 2017 and December 31, 2016
|
|
|
|
|
|
|
Additional paid-in
capital
|
|
31,382,467
|
|
|
31,382,467
|
|
Statutory
reserve
|
|
7,354,413
|
|
|
7,354,413
|
|
Accumulated
deficit
|
|
(3,555,141)
|
|
|
(2,540,991)
|
|
Accumulated other
comprehensive income
|
|
997,556
|
|
|
680,651
|
|
Total Stockholders'
Equity
|
|
36,181,932
|
|
|
36,879,177
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
$
|
41,492,576
|
|
$
|
42,502,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BIOSTAR
PHARMACEUTICALS, INC.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
AND COMPREHENSIVE
INCOME
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Sales, net
|
$
|
-
|
|
$
|
801,627
|
|
Cost of
sales
|
|
-
|
|
|
456,657
|
|
Gross
profit
|
|
-
|
|
|
344,970
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Selling
expenses
|
|
273,476
|
|
|
323,066
|
|
General and
administrative expenses
|
|
766,325
|
|
|
690,422
|
|
Total operating
expenses
|
|
1,039,801
|
|
|
1,013,488
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(1,039,801)
|
|
|
(668,518)
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
Interest
income
|
|
1,304
|
|
|
-
|
|
Interest
expense
|
|
(45,717)
|
|
|
(38,239)
|
|
Fair value adjustment
on warrants
|
|
16,966
|
|
|
28,191
|
|
Recovery of provision
for doubtful accounts
|
|
53,499
|
|
|
-
|
|
Other
expense
|
|
(401)
|
|
|
-
|
|
Total other income
(expense), net
|
|
25,651
|
|
|
(10,048)
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(1,014,150)
|
|
|
(678,566)
|
|
|
|
|
|
|
|
Provision for income
tax (recovery)
|
|
-
|
|
|
(58,225)
|
|
|
|
|
|
|
|
Net
Loss
|
$
|
(1,014,150)
|
|
$
|
(620,341)
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
316,905
|
|
|
309,255
|
|
|
|
|
|
|
|
Comprehensive
loss
|
$
|
(697,245)
|
|
$
|
(311,086)
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
Basic
|
$
|
(0.38)
|
|
$
|
(0.28)
|
|
Diluted
|
$
|
(0.38)
|
|
$
|
(0.28)
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
Basic
|
|
2,637,188
|
|
|
2,210,913
|
|
Diluted
|
|
2,637,188
|
|
|
2,210,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BIOSTAR
PHARMACEUTICALS, INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
|
CASH FLOWS FROM
(USED IN) OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net loss
|
$
|
(1,014,150)
|
|
$
|
(620,341)
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
297,828
|
|
|
316,877
|
|
Fair value adjustment
on warrants
|
|
(16,966)
|
|
|
(28,191)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
1,238,270
|
|
|
1,190,484
|
|
Inventories
|
|
3,164
|
|
|
(56,422)
|
|
Deposits and other
receivables
|
|
155,242
|
|
|
-
|
|
Accounts payable and
accrued expenses
|
|
(335,902)
|
|
|
(329,503)
|
|
Value-added tax
payable
|
|
(6,357)
|
|
|
(71,857)
|
|
Income tax
recoverable
|
|
-
|
|
|
(58,225)
|
|
Net cash provided
by (used in) operating activities
|
|
321,129
|
|
|
342,822
|
|
|
|
|
|
|
|
CASH FLOWS USED IN
INVESTING ACTIVITIES
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
CASH FLOWS USED IN
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Repayment of
short-term bank loans
|
|
-
|
|
|
(282,725)
|
|
Net cash used in
financing activities
|
|
-
|
|
|
(282,725)
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(10,561)
|
|
|
(7,513)
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
310,568
|
|
|
52,584
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning balance
|
|
173,290
|
|
|
38,898
|
|
Cash and cash
equivalents, ending balance
|
$
|
483,858
|
|
$
|
91,482
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES:
|
|
|
|
|
|
|
Interest
received
|
$
|
1,304
|
|
$
|
-
|
|
Interest
paid
|
$
|
-
|
|
$
|
-
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/biostar-pharmaceuticals-inc-announces-its-quarterly-results-for-three-months-ended-march-31-2017-300460704.html
SOURCE Biostar Pharmaceuticals, Inc.
