Attached files
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| 8-K - CURRENT REPORT - TIANYIN PHARMACEUTICAL CO., INC. | f8k101514_tianyinpharma.htm |
Exhibit 99.1
Tianyin Pharmaceutical Provides Update on Filing of Form 10-K for Fiscal Year Ended June 30, 2014
CHENGDU, China, Oct. 15, 2014 /PRNewswire/ -- Tianyin Pharmaceutical Inc. (NYSE MKT: TPI, the "Company"), a pharmaceutical company that specializes in the development and sale of patented biopharmaceutical medicine, modernized traditional Chinese medicine (TCM), branded generics and active pharmaceutical ingredients (API), today reported that it has delayed the filing of its Annual Report on Form 10-K for the year ended June 30, 2014 ("2014 Form 10-K") beyond the extended filing due date of October 14, 2014. As TPI indicated in its Current Reports on Form 8-K filed on October 8, 2013 and November 4, 2013, its Audit Committee and the Board of Directors both unanimously approved the termination of the Company's independent auditor, Patrizio and Zhao LLC ("P&Z"), due to the fact that P&Z agreed to a cease-and-desist order and prohibition from practicing before the Securities and Exchange Commission (the "SEC") on September 30, 2013; on November 4, 2013, TPI signed an Engagement Letter with Paritz & Company, P.A. ("Paritz") to engage Paritz as the independent accountants to audit its financial statements for the years ended June 30, 2014 and 2013. Accordingly, the Company was required by the SEC to have the financial statements for the year ended June 30, 2013 reaudited as a result of the cease-and-desist order and prohibition from practicing before the SEC in connection with its prior auditor.
Currently the Company is working diligently with the auditor to finish the audit and complete the 2014 10-K, and expect to file the 2014 Form 10-K within two weeks.
Under NYSE MKT rules, until the Company files its Form 10-K, its common stock will remain listed on the NYSE MKT under the symbol "TPI," but will be assigned an ".LF" indicator to signify late filing status.
Although the Company is working diligently to complete the 2014 Form 10-K and currently expects to complete and file the 2014 Form 10-K within two weeks of its due date, no assurance can be given that the 2014 Form 10-K will be filed within such period.
About TPI
Headquartered at Chengdu, China, TPI is a pharmaceutical company that specializes in the development, manufacturing, marketing and sales of patented biopharmaceutical, modernized traditional Chinese medicines, branded generics and active pharmaceutical ingredients (API). TPI currently manufactures a comprehensive portfolio of 58 products, 24 of which are listed in the highly selective national medicine reimbursement list, 10 are included in the essential drug list of China. TPI's pipeline targets various high incidence healthcare indications. For more information about TPI, please visit: http://www.tianyinpharma.com
Cautionary Statement Regarding Forward-Looking Statements
The forward-looking statements made in this press release and its attachments concerning, among other things, Tianyin Pharmaceutical Inc.'s expected financial performance and outlook, its strategic operational plans and growth strategy are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and the Company's actual results could differ materially from the results expressed or implied by such forward-looking statements. Furthermore, reported results should not be considered as an indication of future performance. The potential risks, uncertainties and other factors include, but are not limited to, changes to the Company's previously reported financial information as a result of the aforementioned re-audit and the risk that the Company will not be able to file the 2014 Form 10-K within 90 days of its due date. More information regarding these and other risks, uncertainties and factors is contained in the Company's filings with the Securities and Exchange Commission ("SEC") which are available on the SEC's website at www.sec.gov or the Company's website at http://www.tianyinpharma.com. You are cautioned not to unduly rely on these forward-looking statements, which speak only as of the date of this press release. All information in this press release and its attachments is as of October 15, 2014 and, unless required by law, the Company undertakes no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this press release or to report the occurrence of unanticipated events.
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For more information, please visit: http://www.tianyinpharma.com, or email: ir@tpi.asia
Tel: +86-28-8551-6696 (Chengdu, China)
Address:
Tianyin Pharmaceutical Inc.
23rd Floor, Unionsun Yangkuo Plaza
No. 2, Block 3, South Renmin Road
Chengdu, 610041
China
Below is our preliminary financial information as of June 30, 2014:
Cash: $16.1 million
Total Assets: $107.1 million
Total Liabilities: $9.0 million
Equity: $98.1 million
Revenues: $46.6 million
Net Income/Net Loss: $0.4 million
Attached herein are our preliminary Consolidated Balance Sheet, Consolidated Statements of Operations, Consolidated Statements of Cash Flow, and Statements of Stockholders' Equity. Changes and adjustments may be made to the preliminary financial information contained in this press release as the Company is completing and finalizing the audit of the above-mentioned periods.
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| TIANYIN PHARMACEUTICAL CO., INC | ||
| Consolidated Balance Sheets |
| June 30, | June 30, | |||||||
| 2014 | 2013 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 16,120,041 | $ | 26,827,008 | ||||
| Restricted cash | 994,017 | 4,536,000 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $102,401 and $102,149 at June 30, 2014 and 2013, respectively | 9,074,565 | 10,112,718 | ||||||
| Inventory | 3,921,313 | 6,036,014 | ||||||
| Advance payments | 1,981,291 | - | ||||||
| Prepaid income tax | 1,717,387 | - | ||||||
| Other current assets | - | 313,320 | ||||||
| Total current assets | 33,808,614 | 47,825,060 | ||||||
| Property and equipment, net | 45,378,356 | 40,603,232 | ||||||
| Intangibles, net | 27,699,733 | 21,505,012 | ||||||
| Goodwill | 211,120 | 210,600 | ||||||
| Total assets | $ | 107,097,823 | $ | 110,143,904 | ||||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 1,491,771 | $ | 1,352,560 | ||||
| Accounts payable – construction related | 2,238,927 | 2,723,290 | ||||||
| Short-term bank loans | 4,547,200 | 5,929,200 | ||||||
| Income tax payable | 0 | 701,311 | ||||||
| Other taxes payable | 179,610 | 740,800 | ||||||
| Other current liabilities | 522,995 | 449,062 | ||||||
| Total current liabilities | 8,980,503 | 11,896,223 | ||||||
| Total liabilities | 8,980,503 | 11,896,223 | ||||||
| Equity | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $0.001 par value, 25,000,000 shares authorized, no shares issued and outstanding at June 30, 2014 and 2013 | - | - | ||||||
| Common stock, $0.001 par value, 50,000,000 shares authorized, 29,546,276 shares issued, 29,432,791 shares outstanding at June 30, 2014 and 29,496,276 shares issued, 29,382,791 shares outstanding at June 30, 2013 | 29,546 | 29,496 | ||||||
| Additional paid-in capital | 30,189,802 | 30,134,852 | ||||||
| Treasury stock | (135,925 | ) | (135,925 | ) | ||||
| Statutory reserve | 6,976,412 | 6,847,315 | ||||||
| Retained earnings | 50,569,206 | 50,967,308 | ||||||
| Accumulated other comprehensive income | 10,409,430 | 10,178,358 | ||||||
| Total stockholders' equity | 98,038,471 | 98,021,404 | ||||||
| Noncontrolling interest | 78,849 | 226,277 | ||||||
| Total equity | 98,117,320 | 98,247,681 | ||||||
| Total liabilities and equity | $ | 107,097,823 | $ | 110,143,904 | ||||
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| TIANYIN PHARMACEUTICAL CO., INC |
| Consolidated Statements of Operations |
| For the Years Ended June 30, | ||||||||
| 2014 | 2013 | |||||||
| Sales | $ | 46,555,021 | $ | 67,500,476 | ||||
| Cost of sales | 29,146,615 | 41,496,812 | ||||||
| Gross profit | 17,408,407 | 26,003,664 | ||||||
| Operating expenses | ||||||||
| Selling expenses | 7,800,507 | 11,442,664 | ||||||
| General and administrative expenses | 5,796,448 | 4,351,592 | ||||||
| Research and development | 946,300 | 894,995 | ||||||
| Total operating expenses | 14,543,255 | 16,689,251 | ||||||
| Income from operations | 2,865,151 | 9,314,413 | ||||||
| Other income (expenses): | ||||||||
| Interest income | 165,533 | 162,563 | ||||||
| Interest expense | (392,010 | ) | (437,897 | ) | ||||
| Other expense | (3,070,795 | ) | - | |||||
| Total other income (expenses) | (3,297,272 | ) | (275,334 | ) | ||||
| Income (loss) before provision for income tax | (432,121 | ) | 9,039,079 | |||||
| Provision for income tax | 0 | 2,423,906 | ||||||
| Net income (loss) | (432,121 | ) | 6,615,173 | |||||
| Less: Net income (loss) attributable to noncontrolling interest | (163,115 | ) | (56,978 | ) | ||||
| Net income attributable to Tianyin Pharmaceutical Co., Inc. | $ | (269,005 | ) | $ | 6,672,151 | |||
| Basic and diluted earnings per share | ($ | 0.01 | ) | $ | 0.23 | |||
| Weighted average number of common shares outstanding: | ||||||||
| Basic and diluted | 29,432,791 | 29,382,791 | ||||||
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TIANYIN PHARMACEUTICAL CO., INC
Consolidated Statements of Comprehensive Income
| For the Years Ended June 30, | ||||||||
| 2014 | 2013 | |||||||
| Net income (loss) | ($ | 432,121 | ) | $ | 6,615,173 | |||
| Other comprehensive income | ||||||||
| Foreign currency translation adjustment | 246,759 | 2,083,061 | ||||||
| Total other comprehensive income | 246,759 | 2,083,061 | ||||||
| Total Comprehensive income (loss) | (185,362 | ) | 8,698,234 | |||||
| Less: Comprehensive income (loss) attributable to the noncontrolling interest | (147,428 | ) | (51,749 | ) | ||||
| Comprehensive income (loss) attributable to | ||||||||
| Tianyin Pharmaceutical Co., Inc. | ($ | 37,934 | ) | $ | 8,749,983 | |||
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| TIANYIN PHARMACEUTICAL CO., INC | ||||||||||||
| Statements of stockholders' equity |
| ITEM | Common Stock | Treasury stock | Preferred Stock | Additional Paid in Capital | Statutory Reserve | Retained Earnings | Accumulated other Comprehensive Income | Total Stockholders' Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||
| Balance at Jun 30, 2012 | 29,446,276 | $ | 29,446 | $ | (135,925 | ) | 0 | $ | - | $ | 30,104,902 | $ | 6,120,143 | $ | 45,022,329 | $ | 8,100,526 | $ | 89,241,421 | $ | 278,026 | $ | 89,519,447 | |||||||||||||||||||||||||
| Net income | 6,672,151 | 6,672,151 | (56,978 | ) | 6,615,173 | |||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | 2,077,832 | 2,077,832 | 5,229 | 2,083,061 | ||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income | 8,749,983 | (51,749 | ) | 8,698,234 | ||||||||||||||||||||||||||||||||||||||||||||
| Common shares issued | 50,000 | 50 | 29,950 | 30,000 | 30,000 | |||||||||||||||||||||||||||||||||||||||||||
| Statutory reserve | 727,172 | (727,172 | ) | - | - | |||||||||||||||||||||||||||||||||||||||||||
| Balance at Jun 30, 2013 | 29,496,276 | 29,496 | (135,925 | ) | 0 | 0 | 30,134,852 | 6,847,315 | 50,967,308 | 10,178,358 | 98,021,404 | 226,277 | 98,247,681 | |||||||||||||||||||||||||||||||||||
| Net income | (269,005 | ) | (269,005 | ) | (163,115 | ) | (432,120 | ) | ||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | 231,072 | 231,072 | 15,687 | 246,759 | ||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income | (37,933 | ) | (147,428 | ) | (185,361 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Common shares issued | 50,000 | 50 | 54,950 | 55,000 | 55,000 | |||||||||||||||||||||||||||||||||||||||||||
| Statutory reserve | 129,097 | (129,097 | ) | - | - | |||||||||||||||||||||||||||||||||||||||||||
| Balance at Jun 30, 2014 | 29,546,276 | $ | 29,546 | $ | (135,925 | ) | 0 | $ | - | $ | 30,189,802 | $ | 6,976,412 | $ | 50,569,206 | $ | 10,409,430 | $ | 98,038,471 | $ | 78,849.00 | $ | 98,117,320 | |||||||||||||||||||||||||
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| TIANYIN PHARMACEUTICAL CO., INC. | ||
| Consolidated Statements of Cash Flows |
| For the Years Ended June 30, | ||||||||
| 2014 | 2013 | |||||||
| Cash flows from operating activities: | ||||||||
| Net Income | ($ | 432,121 | ) | $ | 6,615,173 | |||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 2,587,565 | 2,435,138 | ||||||
| Change in fair value of warrant liability | ||||||||
| Provision for bad debts | (14,004 | ) | ||||||
| Share-based payment | 55,000 | 30,000 | ||||||
| Changes in current assets and current liabilities: | ||||||||
| Accounts receivable | 1,065,075 | 1,400,397 | ||||||
| Inventory | 2,133,539 | (42,849 | ) | |||||
| Advance payments | - | 645,923 | ||||||
| Other current assets | 314,674 | 130,893 | ||||||
| Accounts payable and accrued expenses | 136,123 | (264,388 | ) | |||||
| Accounts payable – construction related | (491,994 | ) | 1,935,150 | |||||
| Trade notes payable | (4,703,775 | ) | ||||||
| Income tax payable | (2,418,061 | ) | (119,146 | ) | ||||
| Other taxes payable | (564,060 | ) | 225,356 | |||||
| Other current liabilities | 72,959 | (27,787 | ) | |||||
| Net cash provided by operating activities | 2,458,699 | 8,246,081 | ||||||
| Cash flows from investing activities: | ||||||||
| Addition to property and equipment | - | (1,704,154 | ) | |||||
| Addition of Construction in progress | (6,450,737 | ) | (13,274,213 | ) | ||||
| Additions to intangible assets – land use right | (6,973,301 | ) | (886,611 | ) | ||||
| Loans receivable | (1,984,940 | ) | - | |||||
| Acquisition of subsidiary | - | (207,285 | ) | |||||
| Net cash used in investing activities | (15,408,978 | ) | (16,072,263 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Restricted cash | 3,559,747 | (908,865 | ) | |||||
| Proceeds from short-term bank loans | 4,555,600 | 10,300,470 | ||||||
| Repayments of short-term bank loans | (5,954,820 | ) | (10,523,700 | ) | ||||
| Net cash provided by (used in) financing activities | 2,160,527 | (1,132,095 | ) | |||||
| Effect of foreign currency translation on cash | 82,785 | 632,990 | ||||||
| Net increase in cash and cash equivalents | (10,706,967 | ) | (8,325,287 | ) | ||||
| Cash and cash equivalents – beginning | 26,827,008 | 35,152,295 | ||||||
| Cash and cash equivalents – ending | $ | 16,120,041 | $ | 26,827,008 | ||||
| Supplemental cash flow disclosure | ||||||||
| Cash paid for interest | $ | 391,942 | $ | 437,605 | ||||
| Income tax paid | $ | 2,421,477 | $ | 2,583,722 | ||||
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