Attached files
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| 8-K - DIGUANG INTERNATIONAL DEVELOPMENT CO., LTD. | v202893_8k.htm |
Diguang
International Announces Third Quarter 2010 Results
SHENZHEN, China, November 16,
2010 -- Diguang International Development Co., Ltd. (OTC Bulletin
Board: DGNG)
(“Diguang” or the “Company”), a developer and producer of CCFL and LED
backlights for a wide range of TFT-LCD products, today announced its financial
results for the third quarter of fiscal year 2010 ended September 30,
2010.
Third
Quarter 2010 Highlights
|
§
|
Net
revenue increased 41% year-over-year to $19.1
million
|
|
§
|
Gross
profit increased 61% year-over-year to $1.5 million with gross
margin improving 1 percentage points to
8%
|
|
§
|
The
Company reported net loss of $0.9 million, or $(0.04) per
diluted share, compared to a net loss of $1.2 million, or $(0.06) per
diluted share, in the third quarter of fiscal year
2009
|
|
§
|
Adjusted
net loss (non-GAAP) was $0.3 million, or $(0.01) per share, compared to an
adjusted net loss of $0.4 million, or ($0.02) per diluted share, in the
third quarter of fiscal year 2009
|
“Our
Wuhan factory’s low gross margin significantly impacted the Company’s gross
margin level for all products in the third quarter,” said Mr. Song Yi, the
President and Chief Executive Officer of Diguang. “The Wuhan factory
only manufactures OEM products for a Taiwanese customer, and operates on a very
low gross margin in order to reduce the occupation of the Company’s working
capital. From January to September 2010, the total revenue at the Wuhan
facility was US$14.5 million but the gross margin was only 6.2%. And, in
the third quarter of 2010, the total revenue was US$5.1 million, which accounted
for 27% of the total sales volume in the third quarter, but the gross margin was
only 4%. However, the Company is now focusing more on sales of LED BLU for
large-size backlights (18’ to 32’ inch), which has a higher gross margin
(approximately 20%). As Diguang Technology's revenue for LED BLU products is
US$3.8 million, with a gross margin of 22%, and the Wuhan factory's revenue is
US$0.8 million, with a gross margin of 10%, the Company anticipates that
the growth of this new business line at Diguang Technology will provide profit
growth in the future.”
Highlights
for the Three Months Ended September 30, 2010
Net
revenue was $19.1 million for the three months ended Sept 30, 2010, an increase
of 41.0% from $13.5 million for the comparable period in 2009. This was due to
the improved market demand for the Company’s traditional and newly-developed
backlight products along with continued economic recovery from the global
financial crisis which adversely affected sales in the previous year. Sales of
LED products, including LED backlights, LED liquid crystal modules (LCM), LED
general lights and liquid crystal displays (LCD), amounted to $13.5 million, or
71% of total sales revenue, while sales of CCFL products, including CCFL
backlights and CCFL LCMs were $5.6 million, or 29%of total sales
revenue. Sales of LED backlights grew 57% to $10.6 million, while sales of CCFL
backlights increased 93% to $5.6 million in the third quarter of 2010.
Sales of LCMs totaled $2.0 million in the third quarter of 2010, representing a
decrease of $1.2 million, or 38%, compared with $3.2 million for the same period
in 2009. Sales of Liquid Crystal Displays (LCD) were $0.6 million in the third
quarter of 2010, representing an increase of $0.5 million, compared with $0.1
million for the same period in 2009. LCD products were launched in
2009, and the Company began the mass production of LCDs in the second quarter of
2010. Sales continued to grow in the third quarter of 2010, and the
Company expects further sales growth in the near future. Sales of LED
general lighting products declined due to aggressive competition. However,
management is still confident about the prospect of the LED general lighting
segment in the next few years.
Gross
profit for the third quarter of 2010 totaled $1.5 million, or 8.0% of net
revenue, compared to $0.9 million, or 7% of net revenue, for the same period of
2009. The overall gross margin for the third quarter of 2010 was 8%,
representing an increase of 1%, compared with 7% for the same period of
2009. The overall increase is mainly attributable to the Company’s
efforts on adjusting product mix and enhanced control on raw
materials. The Company developed new products to replace products
with very low or negative gross margins. Moreover, the Company
introduced incentives to enhance the efficiency of production and reduce
manufacturing costs. However, the increase in gross margin was to
some extent offset by a loss on the disposal of obsolete raw materials.
Operating expenses totaled approximately $2.1 million for the third quarter of
2010, down 5% from $2.2 million in the third quarter of 2009. Total operating
expenses in the third quarter of 2010 amounted to 11% of net revenue, compared
to 16.3% in the third quarter of 2009. Selling expenses rose 10%,
primarily due to increased commissions and transportation expenses associated
with increased sales. The net research and development costs were $391,000
for the third quarter of 2010, representing a decrease of $70,000, or 15%,
compared with $461,000 for the third quarter of 2009. The decrease of
net research and development costs was attributable to the Company’s reduced
research and development activities when new products were put into production.
Research and development expenses accounted for 2% and 3% of total sales revenue
in the third quarters of 2010 and 2009, respectively. General and administrative
expenses were $0.9 million in the third quarter of 2010, compared to $1.0
million in the same period in 2009.
Interest
expense was $0.2 million for the third quarter of 2010, up from $0.1 million in
the same period of 2009 as the Company utilized additional bank loans to support
its working capital needs.
The
Company's net loss attributable to common shares during the three months ended
Sept 30, 2010 was $0.9 million, improved from a net loss of $1.2 million
attributable to common shares for the same period in 2009. Loss per basic and
diluted share were ($0.04) for the third quarter of 2010, improved from losses
per basic and diluted share of ($0.06) for the same period of 2009.
Adjusted
net loss (non-GAAP), which excludes non-cash items (including non-controlling
interest, depreciation, inventory provision, loss on disposal of assets and
share-based compensation), for the third quarter of 2010 would have been
$305,874, or $（0.01) per basic
and diluted share. Adjusted net loss (non-GAAP) for the third quarter of 2009
would have been $0.4 million, or ($0.02) per basic and diluted share.
Please see the reconciliation table below.
Nine
Months Results Ended Sept 30, 2010
Total
revenue for the nine months of 2010 was $48.6 million, up 64.2% from the nine
months of 2009. Gross profit for the nine months of 2010 was $4.8 million, a
significant increase of 140% from gross profit of $2.0 million in the comparable
period a year ago. Gross margin was 10.0% for the nine months of 2010, up from
6.6% in the same period of 2009. The Company recorded an operating loss of $0.8
million, compared with an operating loss of $4.4 million in the nine months of
2009. Net loss attributable to common shares for the nine months of 2010 was
$1.3 million, compared with a loss of $4.3 million in the nine months of 2009.
Basic and diluted loss per share were ($0.06) for the nines months of 2010
compared to ($0.19) in the nine months of 2009. Excluding non-cash items, net
loss for the first nine months of 2010 on a non-GAAP basis would have been $0.2
million, or $(0.01) per share, compared to non-GAAP net loss of $2.4 million, or
($0.11) per share a year ago. Please see the reconciliation table
above.
Reconciliation
of GAAP Net Income and Earnings per Share to Non-GAAP Net Income and Earnings
per Share
|
Three
Months ended Sept 30
|
Nine
Months ended Sept 30
|
|||
|
2010
|
2009
|
2010
|
2009
|
|
|
GAAP
net income (loss)
|
-855,089
|
-1,217,550
|
-1,305,120
|
-4,265,143
|
|
Non-cash
items:
|
|
|||
|
Non
controlling interest
|
-12,067
|
-65,543
|
-72,570
|
-248,609
|
|
Depreciation
|
543,542
|
362,126
|
1,483,654
|
1,219,618
|
|
Bad
debts allowance (recovery)
|
480
|
0
|
-108,420
|
0
|
|
Inventory
provision
|
-149
|
411,651
|
-33,619
|
568,265
|
|
Loss
(gain) on disposal of assets
|
8480
|
10,308
|
10,787
|
30,487
|
|
Share-based
compensation
|
11,218
|
101,300
|
33,655
|
301,480
|
|
Research
and development costs offset
by funding
advanced
|
-2,289
|
0
|
-516,156
|
0
|
|
Deferred
tax assets
|
0
|
0
|
0
|
28,485
|
|
Non
GAAP net income (loss)
|
-305,874
|
-397,708
|
-507,789
|
2,365,417
|
|
|
||||
|
GAAP
net income (loss)
|
-0.04
|
-0.05
|
-0.06
|
-0.19
|
|
Non-cash
items:
|
|
|||
|
Non
controlling interest
|
0.00
|
0.00
|
0.00
|
-0.01
|
|
Depreciation
|
0.02
|
0.02
|
0.07
|
0.05
|
|
Bad
debts allowance
|
0.00
|
0.00
|
0.00
|
0.00
|
|
Inventory
provision
|
0.00
|
0.02
|
0.00
|
0.03
|
|
Loss
on disposal of assets
|
0.00
|
0.00
|
0.00
|
0.00
|
|
Share-based
compensation
|
0.00
|
0.00
|
0.00
|
0.01
|
|
Research
and development costs offset
by funding
advanced
|
0.00
|
0.00
|
-0.02
|
0.00
|
|
Deferred
tax assets
|
0.00
|
0.00
|
0.00
|
0.00
|
|
Non
GAAP net income (loss)
|
-0.01
|
-0.02
|
-0.02
|
-0.11
|
|
Weighted
average shares
outstanding
- diluted
|
22,072,000
|
22,072,000
|
22,072,000
|
22,072,000
|
Financial
Condition
As of
Sept 30, 2010, Diguang had $5.0 million in cash and cash equivalents and $3.0
million in restricted cash. Working capital increased to approximately $4.2
million compared to $2.8 million at the end of 2009. As of Sept 30, 2010, the
Company had $7.7 million in short-term bank loans and $8.6 million in long-term
bank loans. Shareholders' equity was $19.2 million as of Sept 30, 2010. Cash
used in operating activities was $3.3 million, improved from $8.9 million for
the nine months ended Sept 30, 2009, primarily due to reduced net loss and
increased funds provided by suppliers.
Business
Outlook
Diguang
continues to anticipate strong growth driven by increased demand for its LED TVs
and monitors and LED backlights. In the third quarter the Company started
large-scale production of its 32” and 42” ultra-thin LED backlights and
TVs, and also large-scale production of 19” LED TV and 24” LED
backlights for TCL, one of the largest TV manufacturers in
China.
Diguang’s
new production facility in Shenzhen, which is designed to manufacture large-size
LED backlights and LED TVs with ten production lines and a total annual
production capacity of 1.0 million units, is proceeding on schedule. The Company
expects to complete construction in the fourth quarter of 2010 and will begin
production in the first quarter of 2011.
The
Company’s product mix has continuously been changing in recent years given the
trend that the proportion of LED sales is increasing while the proportion of
CCFL product sales is decreasing. For the third quarter of 2010,
sales of LED products, including LED backlights, LED LCMs, LED general lights
and LCDs, amounted to $13.1 million, representing 69% of total sales revenue,
whereas sales of CCFL products, including CCFL backlights and CCFL LCMs,
amounted to $5.7 million, representing 30% of total sales revenue. In
comparison to CCFL, LED products have a superior contrast ratio, color gamut,
localized dimming and lower power consumption, meeting the environmental
protection standards of the market. Moreover, small to mid-size LED
backlights have the advantage of being lower in cost than the same size CCFL
product. In recent years, the Company has invested in LED research
and development and adjusted its product mix by gradually increasing the
proportion of LEDs products manufactured. The Company expects that,
overall, LED product shipments will continue to grow and experience sustainable
growth, as the transition from CCFL to LED backlights becomes more compelling
due to LEDs’ higher performance levels.
Use of Non-GAAP Financial
Measures
The
Company’s financial results prepared based on U.S. GAAP for the three and nine
months ended September 30, 2010 and 2009 include non-cash expenses such as
depreciation, share based compensation, bad debt allowance, inventory
provisions, loss on the disposal of assets, research and development costs
offset by funding advanced and deferred tax assets. To supplement the Company's
condensed consolidated financial statements presented in accordance with U.S.
GAAP, the Company has provided non-GAAP financial measures excluding the impact
of these items in this release, including adjusted net income and adjusted
diluted earnings per share. The Company's management believes that, in
conjunction with U.S. GAAP financial measures, these non-GAAP financial measures
(i) improve transparency for investors, (ii) assist investors in their
assessment of the Company’s operating performance, (iii) facilitate comparison
to the Company's historical performance, (iv) ensure that these measures are
fully understood in light of how the Company evaluates its operating results,
(v) properly define the metrics used and confirm their calculation. The
additional adjusted information is not meant to be considered in isolation or as
a substitute for items appearing on the Company’s financial statements prepared
in accordance with U.S GAAP. Rather, the non-GAAP measures should be used as
supplement to U.S. GAAP results to assist the reader in better understanding the
operational performance of the Company. The adjusted financial information that
the Company provides may also differ from the adjusted information provided by
other companies, which limits their usefulness as comparative measures. Our
management believes that these adjusted financial measures are useful to
investors because they exclude non-cash expenses that management excludes when
it internally evaluates the performance of the Company's business and makes
operating decisions, including internal budgeting, and performance measurement,
as these measures provide a consistent method of comparison to historical
periods. As a result, the provision of these adjusted measures allows investors
to evaluate the Company's performance using the same methodology and information
as that used by the Company's management. Moreover, management believes that
these adjusted measures reflect the essential operating activities of the
Company. Adjusted measures are subject to inherent limitations because they do
not include all of the expenses included under the U.S. GAAP and because they
involve the exercise of judgment of which charges are excluded from the adjusted
financial measure. However, the Company's management compensates for these
limitations by providing the relevant disclosure of the items excluded. A
reconciliation of each adjusted measures to the nearest U.S. GAAP financial
measures appears in the table above.
About
Diguang International Development Co., Ltd.
Through
its subsidiaries, Diguang develops and produces CCFL and LED backlights for a
wide range of TFT-LCD products. A backlight is the typical light source of a
liquid crystal display (LCD), with applications spanning televisions, computer
monitors, cellular phones, digital cameras, DVDs and other home appliances.
Leveraging its LED expertise, the Company also creates and markets energy-saving
technologies and solutions for rapidly growing markets such as LED backlight
monitors and LED general lighting. For more information, please go to Diguang's
website at http://www.diguangintl.com.
Safe
Harbor Statements
This
press release contains forward-looking statements made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward
looking statements are based upon the current plans, estimates and projections
of Diguang's management and are subject to risks and uncertainties, which could
cause actual results to differ from the forward looking statements. Therefore,
you should not place undue reliance on these forward-looking statements. The
following factors, among others, could cause actual results to differ from those
set forth in the forward-looking statements: business conditions in China,
weather and natural disasters, changing interpretations of generally accepted
accounting principles; outcomes of government reviews; inquiries and
investigations and related litigation; continued compliance with government
regulations; legislation or regulatory environments, requirements or changes
adversely affecting the businesses in which Diguang is engaged; fluctuations in
customer demand; management of rapid growth; intensity of competition from other
providers of backlights; timing approval and market acceptance of new product
introductions; general economic conditions; geopolitical events and regulatory
changes, as well as other relevant risks, including but not limited to risks
outlined in the Company's periodic filings with the U.S. Securities and Exchange
Commission. Diguang does not assume any obligation to update the information
contained in this press release.
For more
information, please contact:
Company
Contact:
Harvey
Li
Diguang
International Development Co., Ltd.
Email:
Lijunjiang@diguang.com
Tel:
+86-755-2655-3152 Ext 8888
DIGUANG
INTERNATIONAL DEVELOPMENT CO., LTD.
CONSOLIDATED
STATEMENTS OF INCOME
AND
COMPREHENSIVE INCOME
(In
US Dollars)
|
Three
months ended September 30,
|
||||||||
|
2010
|
2009
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
Revenues:
|
||||||||
|
Revenues,
net
|
$ | 19,050,932 | $ | 13,456,366 | ||||
|
Cost
of sales
|
17,539,034 | 12,518,206 | ||||||
|
Gross
profit
|
1,511,898 | 938,160 | ||||||
|
Selling
expense
|
784,572 | 714,206 | ||||||
|
Research
and development
|
391,103 | 460,946 | ||||||
|
General
and administrative
|
889,226 | 997932 | ||||||
| 2,198,747 | 1,955,536 | |||||||
|
Loss
on disposing assets
|
8,480 | 10,308- | ||||||
|
Loss
from operations
|
(561,483 | ) | (1,245,232 | ) | ||||
|
Interest
income (expense), net
|
(226,099 | ) | (126,251 | ) | ||||
|
Investment
income (expense)
|
- | 0 | ||||||
|
Other
income (expense)
|
(63,375 | ) | 87,744 | |||||
|
|
|
|||||||
|
Loss
before income taxes
|
(850,957 | ) | (1,283,739 | ) | ||||
|
Income
tax provision
|
16,199- | (646 | ) | |||||
|
Net
loss
|
(867,156 | ) | (1,283,093 | ) | ||||
|
Net
income (loss) attributable to non-controlling interest
|
(12,067 | ) | (65,543 | ) | ||||
|
Net
loss attributable to common shares
|
$ | (855,089 | ) | $ | (1,217,550 | ) | ||
|
Weighted
average common shares outstanding – basic
|
22,072,000 | 22,072,000 | ||||||
|
Losses
per share – basic
|
(0.04 | ) | (0.06 | ) | ||||
|
Weighted
average common shares outstanding – diluted
|
22,072,000 | 22,072,000 | ||||||
|
Losses
per shares – diluted
|
(0.04 | ) | (0.06 | ) | ||||
|
Other
comprehensive income:
|
||||||||
|
Translation
adjustment
|
(282,519 | ) | (8,346 | ) | ||||
|
Comprehensive
loss
|
(584,637 | ) | (1,274,747 | ) | ||||
|
Comprehensive
income (loss) attributable to non-controlling interest
|
(21,082 | ) | (64,179 | )) | ||||
|
Comprehensive
income attributable to common shares
|
$ | (605,719 | ) | $ | (1,210,568 | )) | ||
DIGUANG
INTERNATIONAL DEVELOPMENT CO., LTD.
CONSOLIDATED
BALANCE SHEETS
(In
US Dollars)
|
September
30,
|
December
31,
|
|||||||
|
2010
|
2009
|
|||||||
|
(Unaudited)
|
||||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 5,244,308 | $ | 6,190,513 | ||||
|
Restricted
cash
|
3,030,857 | 4,341,112 | ||||||
|
Accounts
receivable, net of allowance for
doubtful
accounts $1,529,505 and $1,592,221
|
17,290,322 | 13,972,086 | ||||||
|
Inventories,
net of provision$3,519,124and $3,485,777
|
10,921,816 | 7,439,287 | ||||||
|
Other
receivables, net of provision $69,032 and $69,032
|
513,637 | 465,013 | ||||||
|
VAT
recoverable
|
269,286 | 82,497 | ||||||
|
Advance
to suppliers
|
1,270,769 | 900,328 | ||||||
|
Total
current assets
|
38,540,995 | 33,390,836 | ||||||
|
Investment,
net of impairment $1,500,000and $1,500,000
|
- | - | ||||||
|
Plant,
property and equipment, net
|
23,942,877 | 17,868,845 | ||||||
|
Long-term
prepayments
|
381,137 | 439,502 | ||||||
|
|
|
|||||||
|
Total
assets
|
$ | 62,865,009 | $ | 51,699,183 | ||||
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Bank
loans
|
7,660,318 | $ | 10,213,683 | |||||
|
Accounts
payable
|
22,149,847 | 15,446,721 | ||||||
|
Advance
from customers
|
874,619 | 325,165 | ||||||
|
Accruals
and other payables
|
2,030,277 | 2,510,206 | ||||||
|
Accrued
payroll and related expense
|
824,202 | 712,206 | ||||||
|
Income
tax payable
|
404,879 | 394,989 | ||||||
|
Amount
due to stockholders – current
|
358,052 | 943,378 | ||||||
|
Total
current liabilities
|
34,302,194 | 30,546,348 | ||||||
|
Long-term
bank loans
|
8,639,115 | - | ||||||
|
Research
funding advanced
|
688,476 | 952,255 | ||||||
|
Total
non-current liabilities
|
9,327,591 | 952,255 | ||||||
|
Total
liabilities
|
43,629,785 | 31,498,603 | ||||||
|
|
|
|||||||
|
Equity：
|
||||||||
|
Common
stock, par value $0.001 per share, 50 million
shares
authorized, 22,593,000 and 22,593,000 shares issued,
22,072,000
and 22,072,000 shares outstanding
|
22,593 | 22,593 | ||||||
|
Additional
paid-in capital
|
20,915,290 | 20,881,635 | ||||||
|
Treasury
stock at cost
|
(674,455 | ) | (674,455 | ) | ||||
|
Appropriated
earnings
|
798,928 | 802,408 | ||||||
|
Accumulated
deficit
|
(8,945,894 | ) | (7,644,254 | ) | ||||
|
Translation
adjustment
|
4,668,489 | 4,338,891 | ||||||
|
Total
stockholders’ equity
|
16,784,951 | 17,726,818 | ||||||
|
Non-controlling
interest
|
2,450,273 | 2,473,762 | ||||||
|
Total
equity
|
19,235,224 | 20,200,580 | ||||||
|
Total
liabilities and stockholders’ equity
|
$ | 62,865,009 | $ | 51,699,183 | ||||
DIGUANG
INTERNATIONAL DEVELOPMENT CO., LTD.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
Increase
(Decrease) in Cash and Cash Equivalents
(In
US Dollars)
|
Nine
Months Ended September 30,
|
||||||||
|
2009
|
2010
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
Cash
flows from operating activities:
|
||||||||
|
Net
loss
|
$ | (4,513,752 | ) | $ | (1,377,690 | ) | ||
|
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||
|
Depreciation
|
1,219,618 | 1,483,654 | ||||||
|
Bad
debts allowance
|
- | (108,420 | ) | |||||
|
Inventory
provision
|
568,265 | (33,619 | ) | |||||
|
Loss
on disposing assets
|
30,487 | 10,787 | ||||||
|
Share-based
compensation
|
301,480 | 33,655 | ||||||
|
Research
and development costs offset by funding advanced
|
- | (516,156 | ) | |||||
|
Deferred
tax asset
|
28,485 | - | ||||||
|
Changes
in operating assets and liabilities:
|
||||||||
|
Accounts
receivable
|
(3,294,841 | ) | (3,147,437 | ) | ||||
|
Inventory
|
(2,953,544 | ) | (3,374,239 | ) | ||||
|
Other
receivables
|
110,788 | (46,814 | ) | |||||
|
VAT
recoverable
|
(256,989 | ) | (183,117 | ) | ||||
|
Prepayments
and other assets
|
(371,720 | ) | (371,260 | ) | ||||
|
Accounts
payable
|
238,456 | 4,156,825 | ||||||
|
Accruals
and other payable
|
(64,672 | ) | (362,591 | ) | ||||
|
Advance
from customers
|
(11,404 | ) | 557,944 | |||||
|
Accrued
interest payable to related parties
|
57,103 | - | ||||||
|
Taxes
payable
|
(17,492 | ) | 9,928 | |||||
|
Net
cash used in operating activities
|
(8,929,732 | ) | (3,268,550 | ) | ||||
|
Cash
flows from investing activities:
|
||||||||
|
Purchase
of fixed assets investment in construction
|
(87,631 | ) | (4,738,704 | ) | ||||
|
Proceeds
from disposal of fixed assets
|
29,152 | 11,805 | ||||||
|
Net
cash used in investing activities
|
(58,479 | ) | (4,726,899 | ) | ||||
|
Cash
flows from financing activities:
|
||||||||
|
Due
to related parties
|
(800,912 | ) | (597,568 | ) | ||||
|
Proceeds
from (repayments for) short-term bank facilities
|
8,741,354 | (1,253,804 | ) | |||||
|
Repayments
for import financing loans
|
- | (1,356,660 | ) | |||||
|
Restricted
cash released from (pledged for) import financing loans
|
(4,340,769 | ) | 1,310,255 | |||||
|
Proceeds
from long-term loan facilities
|
- | 8,639,115 | ||||||
|
Research
funding advanced
|
- | 248,603 | ||||||
|
Net
cash received from financing activities
|
3,599,673 | 6,989,941 | ||||||
|
Effect
of changes in foreign exchange rates
|
(187,961 | ) | 59,303 | |||||
|
Net
decrease in cash and cash equivalents
|
(5,576,499 | ) | (946,205 | ) | ||||
|
Cash
and cash equivalents, beginning of the period
|
15,024,363 | 6,190,513 | ||||||
|
Cash
and cash equivalents, end of the period
|
$ | 9,447,864 | $ | 5,244,308 | ||||
|
Supplemental
disclosures of cash flow information:
|
||||||||
|
Cash paid for interest
|
$ | 233,986 | $ | 588,700 | ||||
|
Cash paid for income taxes
|
14,821 | 24,174 | ||||||