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EXCEL - IDEA: XBRL DOCUMENT - Stevia CorpFinancial_Report.xls
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q/A
(Amendment No. 1)
 
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended: September 30, 2014
 
¨
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 000-53781
 
 
STEVIA CORP.
(Name of registrant as specified in its charter)

Nevada
 
98-0537233
(State or Other Jurisdiction of
 
(I.R.S. Employer
Incorporation or Organization)
 
Identification Number)
     
7117 US 31 S, Indianapolis, IN
 
46227
(Address of Principal Executive Offices)
 
(Zip Code)

(888) 250-2566
(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

None
 
None
(Title of each class)
 
(Name of each exchange on which registered)
 
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.  x Yes  ¨ No
 
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).  x Yes  ¨ 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 smaller  reporting company)
x
 Smaller Reporting  company
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  ¨ Yes  x No
 
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
 
Class
 
Outstanding at November 17, 2014
     
Common stock, $.001 par value
 
197,372,718


 
 

 

EXPLANATORY NOTE
 
The purpose of this Amendment No. 1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014, filed with the Securities and Exchange Commission on November 19, 2014 (the "Form 10-Q"), is to furnish Exhibit 101 to the Form 10-Q. Exhibit 101 provides the financial statements and related notes from the Form 10-Q formatted in XBRL (Extensible Business Reporting Language).
 
No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q continues to speak 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, are deemed not filed for purposes of Section 18 of the Securities Act of 1934, as amended, and otherwise are not subject to liability under those sections.
 
 
STEVIA CORP.
FORM 10-Q

September 30, 2014

INDEX

 
PAGE
PART I—FINANCIAL INFORMATION
 
   
Item 1.  Financial Statements.
4
   
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations
50
   
Item 3.  Quantitative and Qualitative Disclosures About Market Risk
53
   
Item 4.  Controls and Procedures
53
   
PART II—OTHER INFORMATION
 
   
Item 1.  Legal Proceedings
54
   
Item 1A.  Risk Factors
54
   
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
54
   
Item 3.  Defaults Upon Senior Securities
55
   
Item 4.  Mine Safety Disclosures
55
   
Item 5.  Other Information
55
   
Item 6.  Exhibits
55
   
Signatures
56
 
 
 
2

 

FORWARD-LOOKING STATEMENTS
 
This Report on Form 10-Q contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  Reference is made in particular to the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, and other forward-looking statements included in this report.  Such statements may be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “believe,” “estimate,” “anticipate,” “intend,” “continue,” or similar terms, variations of such terms, or the negative of such terms.  Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements.  Such statements address future events and conditions concerning, among others, capital expenditures, earnings, litigation, regulatory matters, liquidity and capital resources, and accounting matters.  Actual results in each case could differ materially from those anticipated in such statements by reason of factors such as future economic conditions, changes in consumer demand, legislative, regulatory and competitive developments in markets in which we operate, results of litigation, and other circumstances affecting anticipated revenues and costs, and the risk factors set forth under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2014, filed on July 15, 2014.
 
As used in this Form 10-Q, “we,” “us” and “our” refer to Stevia Corp., which is also sometimes referred to as the “Company.”
 
YOU SHOULD NOT PLACE UNDUE RELIANCE ON THESE FORWARD LOOKING STATEMENTS
 
The forward-looking statements made in this report on Form 10-Q relate only to events or information as of the date on which the statements are made in this report on Form 10-Q.  Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.  You should read this report and the documents that we reference in this report, including documents referenced by incorporation, completely and with the understanding that our actual future results may be materially different from what we expect or hope.
 

 
3

 

PART I—FINANCIAL INFORMATION
 
Item 1. Financial Statements
 

Stevia Corp.

September 30, 2014 and 2013

Index to the Consolidated Financial Statements


Contents
 Page(s)
   
Consolidated Balance Sheets at September 30, 2014 (Unaudited) and March 31, 2014
5
   
Consolidated Statements of Operations for the Six Months and Three Months Ended September 30, 2014 and 2013 (Unaudited)
6
   
Consolidated Statement of Equity (Deficit) for the Fiscal Year Ended March 31, 2014 and for the Reporting Period Ended September 30, 2014 (Unaudited)
7
   
Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2014 and 2013 (Unaudited)
8
   
Notes to the Consolidated Financial Statements (Unaudited)
9
 

 
4

 
 
 Stevia Corp.
Consolidated Balance Sheets

   
September 30, 2014
   
March 31, 2014
 
   
(Unaudited)
         
Assets                
                 
Current assets:
               
Cash
 
 $
                                         310,076
   
 $
                                        735,044
 
Accounts receivable
   
                                         341,785
     
                                        673,039
 
Convertible note receivable
   
                                        250,000
     
                                                               -
 
Deposit for formation of majority-owned subsidiary
   
                                            25,000
     
                                                               -
 
Prepaid seeds and fertilizer
   
                                  3,594,230
     
                                   1,498,008
 
Other current assets
   
                                                       163
     
                                                 2,041
 
                 
    Total current assets
   
                                   4,521,254
     
                                   2,908,132
 
                 
 Non-current assets:
               
 Property and equipment
   
                                            28,033
     
                                            24,400
 
 Accumulated depreciation
   
                                           (7,393)
     
                                           (5,627)
 
                 
     Property and equipment, net
   
                                            20,640
     
                                             18,773
 
                 
 Acquired technology
   
                                   1,635,300
     
                                   1,635,300
 
 Accumulatd amortization
   
                                   (245,295)
     
                                    (190,785)
 
                 
     Acquired technology, net
   
                                   1,390,005
     
                                    1,444,515
 
                 
 Website development costs
   
                                             18,365
     
                                                6,203
 
 Accumulated amortization
   
                                           (3,893)
     
                                           (2,937)
 
                 
 Website development costs, net
   
                                             14,472
     
                                                3,266
 
                 
 Security deposit
   
                                                               -
     
                                             15,000
 
                 
   
 $
                                   5,946,371
   
 $
                                  4,389,686
 
                 
 Liabilities and equity (deficit)
               
                 
 Current liabilities:
               
 Accounts payable
 
 $
                                         125,256
   
 $
                                         540,144
 
 Accounts payable - president and CEO
   
                                         315,597
     
                                        252,486
 
 Credit card payable
   
                                                      659
         
 Accrued expenses
   
                                             19,350
     
                                             17,500
 
 Accrued interest
   
                                         128,634
     
                                            89,490
 
 Advances from president and significant stockholder
   
                                                2,497
     
                                                      852
 
 Convertible notes payable - net of discount
   
                                        444,340
     
                                         455,761
 
                 
     Total current liabilities
   
                                   1,036,333
     
                                   1,356,233
 
                 
 Non-Current liabilities:
               
 Derivative note liabilities
   
                                         142,425
     
                                   1,027,434
 
 Derivative warrant liabilities
   
                                        573,925
     
                                   4,364,190
 
                 
     Total non-current liabilities
   
                                         716,350
     
                                   5,391,624
 
                 
    Total liabilities
   
                                   1,752,683
     
                                  6,747,857
 
                 
 Commitments and Contingencies
               
                 
 Equity (Deficit)
               
 Stevia Corp stockholders' equity (deficit):
               
 Preferred stock par value $0.001: 1,000,000 shares authorized;
               
 none issued or outstanding
   
                                                               -
     
                                                               -
 
 Common stock par value $0.001: 250,000,000 shares authorized,
               
 197,372,718 and 149,109,271 shares issued and outstanding, respectively
   
                                          197,371
     
                                          149,108
 
 Additional paid-in capital
   
                               16,380,065
     
                                 11,383,415
 
 Accumulated deficit
   
                           (12,039,251)
     
                           (13,597,941)
 
                 
 Accumulated other comprehensive income:
               
 Foreign currency translation gain
               
                 
     Total Stevia Corp stockholders' equity (deficit)
   
                                   4,538,185
     
                              (2,065,418)
 
                 
 Non-controlling interest in subsidiaries
               
 Noncontrolling interest - accumulated deficit in consolidated subsidiaries
   
                                   (344,497)
     
                                   (292,753)
 
                 
 Non-controlling interest in subsidiaries
   
                                   (344,497)
     
                                   (292,753)
 
                 
    Total Equity (Deficit)    
                                   4,193,688
     
                               (2,358,171)
 
                 
    Total Liabilities and Equity (Deficit)  
 $
                                   5,946,371
   
 $
                                  4,389,686
 
 
 
 See accompanying notes to the consolidated financial statements.

 
5

 
 
Stevia Corp.
 Consolidated Statements of Operations

   
For the Six Months
   
For the Three Months
   
For the Six months
   
For the Three Months
 
   
Ended
   
Ended
   
Ended
   
Ended
 
   
September 30, 2014
   
September 30, 2014
   
September 30, 2013
   
September 30, 2013
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
 Revenue
                       
 Farm management services -  related parties
  $ 179,641     $ 132,958     $ 99,953     $ 61,858  
 Royalty income
    324,000       162,000       486,000       486,000  
 Sales
    2,228,343       220,000       919,166       -  
                                 
    Total revenue     2,731,984       514,958       1,505,119       547,858  
                                 
 Cost of revenue
                               
 Farm produce
    1,662,135       -       758,809       -  
 Farm expenses
    25,791       10,791       313,309       30,270  
 Farm management services - related parties
    120,000       60,000       120,000       60,000  
                                 
    Total cost of revenue     1,807,926       70,791       1,192,118       90,270  
                                 
 Gross margin
    924,058       444,167       313,001       457,588  
                                 
 Operating expenses:
                               
 Directors' fees
    46,875       23,437       187,500       93,750  
 Professional fees
    278,885       152,244       309,732       100,886  
 Research and development
    182,000       86,000       190,880       74,349  
 Salary and compensation - officer
    106,730       53,365       600,000       -  
 Salary and compensation - others
    -       -       66,178       -  
 General and administrative expenses
    289,789       215,651       253,399       116,320  
                                 
    Total operating expenses     904,279       530,697       1,607,689       385,305  
                                 
 Income (loss) from operations
    19,779       (86,530 )     (1,294,688 )     72,283  
                                 
 Other (income) expense:
                               
 Change in fair value of derivative liability
    (1,991,393 )     162,645       (635,844 )     (318,693 )
 Debt discount
    393,506       194,079       563,183       356,813  
 Financing cost
    46,800       -       22,000       22,000  
 Interest expense
    63,920       11,305       47,903       25,850  
                                 
    Other (income) expense, net     (1,487,167 )     368,029       (2,758 )     85,970  
                                 
 Income (loss) before income tax provision and non-controlling interest
    1,506,946       (454,559 )     (1,291,930 )     (13,687 )
                                 
 Income tax provision
    -       -       -       -  
                                 
 Net income (loss)
                               
 Net income (loss) before non-controlling interest
    1,506,946       (454,559 )     (1,291,930 )     (13,687 )
 Net income (loss) attributable to the non-controlling interest
    (51,744 )     (23,748 )     (105,856 )     (30,509 )
                                 
    Net income (loss) attributable to Stevia Corp.   $ 1,558,690     $ (430,811 )   $ (1,186,074 )   $ 16,822  
                                 
 Earnings per share
                               
 - Basic:
  $ 0.01     $ (0.00 )   $ (0.02 )   $ 0.00  
                                 
 - Diluted:
  $ 0.01     $ (0.00 )   $ (0.02 )   $ 0.00  
                                 
 Weighted average common shares outstanding
                               
 - Basic:
    175,066,718       190,575,802       69,429,617       74,104,718  
                                 
 - Diluted:
    186,387,595       190,575,802       69,429,617       74,104,718  
 
 
 See accompanying notes to the consolidated financial statements.
 
 
6

 
 
Stevia Corp.
Consolidated Statement of Equity (Deficit)
For the Fiscal Year Ended March 31, 2014 and the reporting period ending September 30, 2014
(Unaudited)

   
Common Stock Par Value $0.001
   
 
   
 
         
 
   
 
   
 
 
   
Number of Shares
   
Amount
   
Additional
paid-in Capital
   
Common stock
to be Issued
   
Accumulated
Deficit
   
Total STEV
Stockholders'
Equity (Deficit)
   
Non-controlling
Interest
   
Total
Equity (Deficit)
 
                                                 
 Balance, March 31, 2013
    63,555,635     $ 63,556     $ 4,760,624     $ -     $ (4,359,415 )   $ 464,765     $ (214,158 )   $ 250,607  
                                                                 
 Common shares issued for consulting services
                                                               
 valued at $0.20 per share on April 30, 2013
    500,000       500       99,500                       100,000               100,000  
                                                                 
 Exercise of warrant with exercise price adjusted
                                                               
 to $0.20 per share on May 6, 2013
    853,333       853       169,813                       170,666               170,666  
                                                                 
 Commissions and legal fees paid in connection with the exercise of
                                                               
 warrants on May 6, 2013
                    (18,653 )                     (18,653 )             (18,653 )
                                                                 
 Reclassification of derivative liability to additional paid-in capital
                                                               
 associated with the exercise of warrants
                    595,852                       595,852               595,852  
                                                                 
 Warrants issued to investors in connection with warrants
                                                               
 exercised on May 6, 2013 classified as derivative liability
                    (833,106 )                     (833,106 )             (833,106 )
                                                                 
 Make good shares released to officer for achieving
                                                               
 the second and third milestones on June 21, 2013
    3,000,000       3,000       597,000                       600,000               600,000  
                                                                 
 Common shares issued for future director  services on October 4, 2011
                                                               
 earned during the period endng June 30,2013
                    93,750                       93,750               93,750  
                                                                 
 Reclassification to derivative liability for warrants
                                                               
 that became derivatives
                    (167,949 )                     (167,949 )             (167,949 )
                                                                 
 Common shares issued for future director services on October 4, 2011
                                                               
 earned during the period endng September 30, 2013
                    93,750                       93,750               93,750  
                                                                 
 Anti-dilution shares issued in accordance with the Security Purchase
                                                               
 Agreement dated August 1, 2012 on October 1, 2013
    286,666       286       (286 )                     -               -  
                                                                 
 Common shares issued for future director service
                                                               
  on December 4, 2013
    1,500,000       1,500       186,000                       187,500               187,500  
                                                                 
 Common shares issued for future director service
                                                               
  on December 4, 2013
                    (187,500 )                     (187,500 )             (187,500 )
                                                                 
 Common shares issued per debt settlement agreement
                                                               
 for past due accounts payable and related settlement costs
    13,000,000       13,000       1,416,715       279,222               1,708,937               1,708,937  
                                                                 
 Common shares issued for future director service on December 4, 2013
                                                               
 earned during the period endng December 31, 2013
                    7,811                       7,811               7,811  
                                                                 
 Common shares issued per debt settlement agreement
                                                               
 for past due accounts payable and related settlement costs
    2,538,882       2,539       276,683       (279,222 )             -               -  
                                                                 
 Exercise of warrants with exercise price reset
                                                               
 to $0.0585 per share on February 13, 2014
    1,877,333       1,877       107,947                       109,824               109,824  
                                                                 
 Exercise of warrants with exercise price reset
                                                               
 to $0.053365 per share in February and March, 2014
    4,096,534       4,097       214,515                       218,612               218,612  
                                                                 
 Commissions paid in connection with the exercise of
                                                               
 warrants on during the quarter ending March 31, 2014
                    (26,275 )                     (26,275 )             (26,275 )
                                                                 
 Reclassification of derivative liability to additional paid-in capital
                                                               
 associated with the exercise of warrants
                    943,456                       943,456               943,456  
                                                                 
 Cashless exercise of warrants with exercise price reset
                                                               
 to $0.053365 per share on March 11, 2014
    3,438,181       3,438       180,040                       183,478               183,478  
                                                                 
 Cashless exercise of warrants on March 11, 2014
    (611,391 )     (611 )     (182,867 )                     (183,478 )             (183,478 )
                                                                 
 Reclassification of derivative liability to additional paid-in capital
                                                               
 associated with the cashless exercise of warrants
                    145,612                       145,612               145,612  
                                                                 
 Common shares issued for notes and accrued interest conversion
                                                               
 at $0.1194 per share on March 11, 2014
    1,973,337       1,973       233,643                       235,616               235,616  
                                                                 
 Common shares issued for notes and accrued interest conversion
                                                               
 at $0.25 per share on March 11, 2014
    1,124,274       1,124       279,945                       281,069               281,069  
                                                                 
 Common shares issued for notes conversion
                                                               
 at $0.0585 per share on January 21 and February 4, 2014
    850,000       850       48,875                       49,725               49,725  
                                                                 
 Common shares issued for notes and accrued interest conversion
                                                               
 at $0.053365 per share on February 19 and February 27, 2014
    1,400,158       1,400       73,319                       74,719               74,719  
                                                                 
 Common shares issued for notes conversion
                                                               
 at $0.0555 per share on March 3, 2014
    630,631       631       34,369                       35,000               35,000  
                                                                 
 Common shares issued for notes and accrued interest conversion
                                                               
 at $0.0551 per share on February 28 and Mar 5, 2014
    2,262,069       2,262       122,378                       124,640               124,640  
                                                                 
 Common shares issued for notes and accrued interest conversion
                                                               
 at $0.0559 per share on March 26 and March 27, 2014
    1,669,648       1,670       91,663                       93,333               93,333  
                                                                 
 Common shares issued for notes and accrued interest conversion
                                                               
 at $0.057 per share on March 31, 2014
    1,119,299       1,119       62,681                       63,800               63,800  
                                                                 
 Reclassification of derivative liability to additional paid-in capital
                                                               
 associated with the notes and accrued interest conversion
                    627,333                       627,333               627,333  
                                                                 
 Warrants issued to the placement agent in connection with
                                                               
 issuance and conversion of convertible notes
                    (139,223 )                     (139,223 )             (139,223 )
                                                                 
 Common shares issued for consulting services
                                                               
 valued at $0.053365 per share on February 24, 2014
    7,300,000       7,300       382,265                       389,565               389,565  
                                                                 
 Common shares issued for officer's service
                                                               
 valued at $0.053365 per share on February 24, 2014
    20,000,000       20,000       1,047,300                       1,067,300               1,067,300  
                                                                 
 Common shares issued for officer's service
                                                               
 valued at $0.053365 per share on February 24, 2014
                    (1,067,300 )                     (1,067,300 )             (1,067,300 )
                                                                 
 Common shares issued for officer's service
                                                               
 valued at $0.053365 per share on February 24, 2014
                    213,460                       213,460               213,460  
                                                                 
 Common shares issued per the Debt Conversion Agreement
                                                               
 valued at $0.053365 per share on February 26, 2014
    9,339,348       9,339       489,055                       498,394               498,394  
                                                                 
 Common shares issued for the subsidiary's debt conversion
                                                               
 valued at $0.053365 per share on February 26, 2014
    7,405,334       7,405       387,781                       395,186               395,186  
                                                                 
 Common shares issued for future director service on December 4, 2013
                                                               
 earned during the period endng March 31, 2014
                    23,439                       23,439               23,439  
                                                                 
                                      (9,238,526 )     (9,238,526 )     (78,595 )     (9,317,121 )
                                                                 
 Balance, March 31, 2014
    149,109,271       149,108       11,383,415       -       (13,597,941 )     (2,065,418 )     (292,753 )     (2,358,171 )
                                                                 
 Cashless exercise of warrants with exercise price reset
                                                               
 to $0.053365 per share on April 4, 2014
    4,684,718       4,685       245,315                       250,000               250,000  
                                                                 
 Cashless exercise of warrants on April 4, 2014
    (841,750 )     (842 )     (249,158 )                     (250,000 )             (250,000 )
                                                                 
 Reclassification of derivative liability to additional paid-in capital
                                                               
 associated with the cashless exercise of warrants
                    1,039,025                       1,039,025               1,039,025