United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

  

 

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 14, 2019

 

CHINA JO-JO DRUGSTORES, INC.

(Exact name of Registrant as specified in charter)

 

Nevada   001-34711   98-0557852
(State or other jurisdiction
of Incorporation)
  (Commission File No.)   (IRS Employer
Identification No.)

 

Hai Wai Hai Tongxin Mansion Floor 6 Gong Shu District,

Hangzhou City, Zhejiang Province, People’s Republic of China, 310008

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: +86-571-88219579

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17CFR230.425)

 

Soliciting material pursuant to Rule14a-12 under the Exchange Act (17CFR240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

  

 

 

 

 

  

Item 2.02. Results of Operations and Financial Condition.

 

On February 14, 2019, China Jo-Jo Drugstores, Inc. (the “Company”) issued a press release announcing certain financial results for the fiscal quarter ended December 31, 2018. A copy of the press release is attached hereto as Exhibit 99.1.

 

This information under this Item 2.02 and the press release attached to this Form 8-K as Exhibit 99.1 shall be deemed to be “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section and shall not be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended.

  

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

The following is filed as an exhibit to this report:

 

Exhibit No.   Description
     
99.1   Press Release, dated February 14, 2019.

  

1

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

  

  CHINA JO-JO DRUGSTORES, INC.
     
Date: February 14, 2019 By: /s/ Ming Zhao
  Name:  Ming Zhao
  Title: Chief Financial Officer

  

2

Exhibit 99.1

 

China Jo-Jo Drugstores Reports Third Quarter 2019 Financial Results

 

HANGZHOU, China, Feb. 14, 2019 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD) (“Jo-Jo Drugstores” or the “Company”), a leading online and offline retailer, wholesale distributor of pharmaceutical and other healthcare products, and healthcare provider in China, announced today its financial results for its third fiscal quarter, ended December 31, 2018.

 

Mr. Lei Liu, Chairman and Chief Executive Officer of Jo-Jo Drugstores, Inc., commented, “Our third quarter results reflect solid revenue growth as we continue to improve our business. Our progress reinforces our confidence in our underlying business and growth strategy. We will continue to provide exceptional retail drugstore services as we adapt to a changing regulatory and technological environment, which is reflected in our new executive hires and the everyday experience such as value-added medical consultation and monitoring that our customers receive.”  

 

Third Quarter of Fiscal 2019 Financial Highlights

 

   For the Three Months Ended December 31, 
($ millions, except per share data)  2018   2017   % Change 
Revenue   30.92    26.81    15.3%
      Retail drugstores   20.87    18.29    14.1%
      Online pharmacy   2.49    3.39    -26.6%
      Wholesale   7.56    5.13    47.3%
Gross profit   7.14    5.57    28.1%
Gross margin   23.1%   20.8%   2.3pp*
Loss from operations   (2.13)   (2.19)   -2.8%
Net loss   (2.21)   (1.63)   35.7%
Loss per share   (0.06)   (0.08)   -25.0%

 

* Notes: pp represents percentage points

 

Revenue increased by 15.3% to $30.92 million for the three months ended December 31, 2018, from $26.81 million for the same period of last year.
Gross profit increased by 28.1% to $7.14 million for the three months ended December 31, 2018, from $5.57 million for the same period of last year.
Gross margin increased by 2.3 percentage points to 23.1% for the three months ended December 31, 2018, from 20.8% for the same period of last year.
Net loss was $2.21 million, or $0.06 per basic and diluted share for the three months ended December 31, 2018, compared to $1.63 million, or $0.08 per basic and diluted share for the same period of last year.

 

 

 

Third Quarter of Fiscal 2019 Financial Results

 

Revenue

 

Revenue for the three months ended December 31, 2018 increased by $4.10 million, or 15.3%, to $30.92 million, from $26.81 million for the same period of last year. The increase in revenue was primarily due to the increase in retail drugstores business and wholesale business, partially offset by the decrease in online pharmacy business.

 

   For the Three Months Ended December 31, 
   2018   2017 
($ millions)  Revenue   Cost of Goods   Gross Margin   Revenue   Cost of Goods   Gross Margin 
Retail drugstores   20.87    14.90    28.6%   18.29    13.69    25.2%
Online pharmacy   2.49    2.23    10.4%   3.39    3.13    7.7%
Wholesale   7.56    6.65    12.1%   5.13    4.42    13.8%
Total   30.92    23.78    23.1%   26.81    21.24    20.8%

 

Revenue from the retail drugstores business increased by $2.58 million, or 14.1%, to $20.87 million for the three months ended December 31, 2018, from $18.29 million for the same period of last year. The increase was primarily due to consumer-facing benefits such as an emphasis on onsite medical care, chronic disease management services, incremental DTP (Direct-to-Patient) business caused by continuous hospital medical reform, promotional campaigns such as fifteen-year anniversary sales, and the maturation of stores opened a year ago.

 

Revenue from the online pharmacy business decreased by $0.90 million, or 26.5%, to $2.49 million for the three months ended December 31, 2018, from $3.39 million for the same period of last year. The decrease was mainly caused by a decline in sales via e-commerce platforms which suspended OTC drug sales on their sites directly, partially offset by the increase in business referred from Pharmacy Benefit Management (“PBM”) providers. The Company is adding more non-medical health products such as nutritional supplements into its sales menu to counteract the decline in sale of OTC drug category.

 

Revenue from the wholesale business increased by $2.43 million, or 47.3%, to $7.56 million for the three months ended December 31, 2018, from $5.13 million for the same period of last year. The increase was primarily due to sale of certain medicines, which the Company sold in large quantities at its retail stores, to other vendors at competitive prices, as well as the sale of certain nutritional supplements as sales agents.

 

Gross profit and gross margin

 

The total cost of goods sold increased by $2.54 million, or 12.0%, to $23.78 million for the three months ended December 31, 2018, from $21.24 million for the same period last year. Gross profit increased by $1.56 million, or 28.1%, to $7.14 million for three months ended December 31, 2018, from $5.57 million for the same period last year. Overall gross margin increased by 2.3 percentage points to 23.1% for the three months ended December 31, 2018, from 20.8% for the same period of last year, due to higher retail and online profit margins.

 

Gross margin for retail drugstores increased by 3.4 percentage points to 28.6% for the three months ended December 31, 2018, from 25.2% for the same period of last year, primarily as a result of the introduction of new suppliers, and the continuing renegotiation of prices with the Company’s suppliers.

 

Gross margin for the online pharmacy increased by 2.7 percentage points to 10.4% for the three months ended December 31, 2018, from 7.7% for the same period of last year, primarily due to the increase in sales via the Company’s own official website, offset by a decrease in sales via third-party platforms, which are usually subject to low profit margins.

 

Gross margin for wholesale decreased by 1.7 percentage to 12.1% for the three months ended December 31, 2018, from 13.8% for the same period of last year, primarily as a result of different products the Company carries and sells to certain pharmaceutical vendors.

 

2

 

 

Loss from operations

 

Selling and marketing expenses increased by $1.67 million, or 33.2%, to $6.69 million for the three months ended December 31, 2018, from $5.02 million for the same period of last year. The increase in selling and marketing expenses was primarily due to increases in marketing and sales staff expenses and rental expenses related to store expansions.

 

General and administrative expenses decreased by $0.16 million, or 6.0%, to $2.57 million for the three months ended December 31, 2018, from $2.74 million for the same period of last year. The decrease in general and administrative expenses was primarily caused by a decrease in bad debt expenses. 

 

Loss from operations totaled $2.13 million for the three months ended December 31, 2018, compared to $2.19 million for the same period of last year. Operating margin was negative 6.9% for the three months ended December 31, 2018, compared to negative 8.2% for the same period of last year.

 

Net loss

 

The Company’s net loss was $2.21 million, or $0.06 per basic and diluted share for the three months ended December 31, 2018, compared to $1.63 million, or $0.08 per basic and diluted share for the same period of last year.

 

Nine Months Ended December 31, 2018 Financial Highlights

 

   For the Nine Months Ended December 31, 
($ millions, except per share data)  2018   2017   % Change 
Revenue   81.10    71.97    12.7%
      Retail drugstores   54.97    46.36    18.6%
      Online pharmacy   6.64    9.59    -30.8%
      Wholesale   19.49    16.02    21.6%
Gross profit   18.55    15.31    21.2%
Gross margin   22.9%   21.3%   1.6pp*
Loss from operations   (4.33)   (5.30)   -18.3%
Net loss   (4.51)   (4.21)   6.9%
Loss per share   (0.14)   (0.17)   -19.1%

 

* Notes: pp represents percentage points

 

Revenue increased by 12.7% to $81.10 million for the nine months ended December 31, 2018, from $71.97 million for the same period of last year.
Gross profit increased by 21.2% to $18.55 million for the nine months ended December 31, 2018, from $15.31 million for the same period of last year.
Gross margin increased by 1.6 percentage points to 22.9% for the nine months ended December 31, 2018, from 21.3% for the same period of last year.
Net loss was $4.51 million, or $0.14 per basic and diluted share for the nine months ended December 31, 2018, compared to $4.21 million, or $0.17 per basic and diluted share for the same period of last year.

 

3

 

 

Nine Months Ended December 31, 2018 Financial Results

 

Revenue

 

Revenue for the nine months ended December 31, 2018 increased by $9.12 million, or 12.7%, to $81.10 million from $71.97 million for the same period of last year. The increase in revenue was primarily due to the increase in retail drugstores and wholesale business, partially offset by the decrease in online pharmacy business.

 

   For the Nine Months Ended December 31, 
   2018   2017 
($ millions)  Revenue   Cost of Goods   Gross Margin   Revenue   Cost of Goods   Gross Margin 
Retail drugstores   54.97    39.35    28.4%   46.35    34.23    26.2%
Online pharmacy   6.64    5.88    11.4%   9.60    8.65    9.9%
Wholesale   19.49    17.32    11.1%   16.02    13.79    13.9%
Total   81.10    62.55    22.9%   71.97    56.67    21.3%

 

Revenue from the retail drugstores business increased by $8.61 million, or 18.6%, to $54.97 million for the nine months ended December 31, 2018, from $46.36 million for the same period of last year. The increase was primarily due to consumer-facing benefits such as emphasis on onsite medical care, chronic disease management, incremental DTP (Direct-to-Patient) business caused by continuous hospital medical reform, and the maturation of stores opened a year ago.

 

Revenue from the online pharmacy business decreased by $2.95 million, or 30.8%, to $6.64 million for the nine months ended December 31, 2018, from $9.59 million for the same period of last year. The decrease was mainly caused by a decline in sales via e-commerce platforms which suspended the direct sale of OTC drugs on their sites, and was partially offset by the increase in business referred to the Company from PBM providers. The Company is adding more non-medical health products such as nutritional supplements into its sales menu to counteract the decline in sale of OTC drug category.

 

Revenue from the wholesale business increased by $3.47 million, or 21.6%, to $19.49 million for the nine months ended December 31, 2018, from $16.02 million for the same period of last year. The increase was primarily a result of the Company’s ability to sell certain medicines, which the Company sold in large quantities in its retail stores, to other vendors at competitive prices, as well as the sale of certain nutritional supplements as sales agents.

 

Gross profit and gross margin

 

The total cost of goods sold increased by $5.88 million, or 10.4%, to $62.55 million for the nine months ended December 31, 2018, from $56.67 million for the same period of last year. Gross profit increased by $3.24 million, or 21.2%, to $18.55 million for nine months ended December 31, 2018, from $15.31 million for the same period of last year. Overall gross margin increased by 1.6 percentage points to 22.9% for the nine months ended December 31, 2018, from 21.3% for the same period of last year, due to higher retail profit margins.

 

Gross margin for retail drugstores increased by 2.2 percentage points to 28.4% for the nine months ended December 31, 2018, from 26.2% for the same period of last year, primarily because of the introduction of new suppliers, and the continuing renegotiating of prices with the Company’s suppliers.

 

Gross margin for online pharmacy increased by 1.5 percentage points to 11.4% for the nine months ended December 31, 2018, from 9.9% for the same period of last year. The increase was due to the increase in sales via the Company’s own official website, offset by the decrease in sales via third-party platforms, which are usually subject to low profit margin.

 

4

 

 

Gross margin for wholesale decreased by 2.8 percentage points to 11.1% for the nine months ended December 31, 2018, from 13.9% for the same period of last year, primarily as a result of different products the Company carried and sold to certain pharmaceutical vendors.

 

Loss from operations

 

Selling and marketing expenses increased by $3.25 million, or 24.5%, to $16.54 million for the nine months ended December 31, 2018 from $13.29 million for the same period of last year. The increase in selling and marketing expenses was primarily due to an increase in marketing and sales staff expense and rental expense related to store expansion.

 

General and administrative expenses decreased by $0.98 million, or 13.3%, to $6.34 million for the nine months ended December 31, 2018, from $7.32 million for the same period of last year. The decrease in general and administrative expenses was primarily caused by a decrease in bad debt expense. 

 

Loss from operations was $4.33 million for the nine months ended December 31, 2018, compared to $5.30 million for the same period of last year. Operating margin was negative 5.3% for the nine months ended December 31, 2018, compared to negative 7.4% for the same period of last year.

 

Net loss

 

Net loss totaled $4.51 million, or $0.14 per basic and diluted share for the nine months ended December 31, 2018, compared to $4.21 million, or $0.17 per basic and diluted share for the same period of last year.

 

Financial Condition

 

As of December 31, 2018, the Company had cash and restricted cash of $20.61 million, compared to $24.22 million as of March 31, 2018. Net cash used in operating activities totaled $10.32 million for the nine months ended December 31, 2018, compared to $9.80 million for the same period of last year. Net cash used in investing activities was $6.85 million for the nine months ended December 31, 2018, compared to $1.76 million for the same period of last year. Net cash provided by financing activities was $7.98 million for the nine months ended December 31, 2018, compared to net cash provided by financing activities of $5.57 million for the same period of last year.

 

About China Jo-Jo Drugstores, Inc.

 

China Jo-Jo Drugstores, Inc. (“Jo-Jo Drugstores” or the “Company”), is a leading online and offline retailer and wholesale distributor of pharmaceutical and other healthcare products in China. Jo-Jo Drugstores currently operates retail drugstores and an online pharmacy. It is also a wholesale distributor of products similar to those carried in its pharmacies and it cultivates and sells herbs used for traditional Chinese medicine. For more information about the Company, please visit http://jiuzhou360.com.The Company routinely posts important information on its website.

 

5

 

 

Forward-Looking Statements

 

This press release contains information about the Company’s view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. The Company’s encourages you to review other factors that may affect its future results in the Company’s annual reports and in its other filings with the Securities and Exchange Commission.

 

For more information, please contact:

 

Company Contact: 

 

Frank Zhao
Chief Financial Officer
+86-571-88077108
frank.zhao@jojodrugstores.com

 

Steve Liu
Investor Relations Director
steve.liu@jojodrugstores.com

 

Investor Relations Contact:

  

Tina Xiao
Ascent Investor Relations LLC
+1-917-609-0333
tina.xiao@ascent-ir.com

 

6

 

  

CHINA JO-JO DRUGSTORES, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS 

(UNAUDITED)

 

   December 31,   March 31, 
   2018   2018 
ASSETS        
CURRENT ASSETS        
Cash  $5,619,051   $15,132,640 
Restricted cash   14,988,478    16,319,551 
Financial assets available for sale   176,560    175,140 
Notes receivable   296,687    279,082 
Trade accounts receivable   10,637,316    8,322,393 
Inventories   10,483,059    13,429,568 
Other receivables, net   3,718,546    3,098,079 
Advances to suppliers   3,489,010    3,447,452 
Other current assets   1,468,188    2,116,237 
Total current assets   50,876,895    62,320,142 
           
PROPERTY AND EQUIPMENT, net   8,427,870    2,843,640 
           
OTHER ASSETS          
Long-term investment   34,208    40,890 
Farmland assets   727,064    796,286 
Long term deposits   2,266,420    2,501,968 
Other noncurrent assets   1,121,814    1,253,352 
Intangible assets, net   3,570,986    4,056,414 
Total other assets   7,720,492    8,648,910 
           
Total assets  $67,025,257   $73,812,692 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
CURRENT LIABILITIES          
Accounts payable, trade   19,223,835    25,259,526 
Notes payable   25,271,064    19,180,200 
Other payables   3,851,366    4,272,523 
Other payables - related parties   726,219    850,342 
Customer deposits   1,492,122    4,040,867 
Taxes payable   745,518    366,040 
Accrued liabilities   1,618,006    841,993 
Total current liabilities   52,928,130    54,811,491 
           
Financial liability   79,957      
Purchase option and warrants liability   312,751    138,796 
Total liabilities   53,320,838    54,950,287 
           
COMMITMENTS AND CONTINGENCIES          
           
STOCKHOLDERS’ EQUITY          
Common stock; $0.001 par value; 250,000,000 shares authorized; 28,936,778 and 28,936,778 shares issued and outstanding as of December 31, 2018 and March 31, 2018   28,937    28,937 
Preferred stock; $0.001 par value; 10,000,000 shares authorized; nil issued and outstanding as of December 31, 2018 and March 31, 2018   -    - 
Additional paid-in capital   43,747,589    43,599,089 
Statutory reserves   1,309,109    1,309,109 
Accumulated deficit   (33,572,688)   (29,661,190)
Accumulated other comprehensive income   2,628,814    3,586,460 
Total stockholders’ equity   14,141,761    18,862,405 
Noncontrolling interests   (437,342)   - 
Total equity   13,704,419    18,862,405 
Total liabilities and stockholders’ equity  $67,025,257   $73,812,692 

  

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CHINA JO-JO DRUGSTORES, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

 

   For the three months ended
December 31,
   For the nine months ended
December 31,
 
   2018   2017   2018   2017 
                 
REVENUES, NET  $30,916,549   $26,812,242   $81,098,161   $71,973,653 
                     
COST OF GOODS SOLD   23,780,763    21,240,629    62,548,471    56,666,782 
                     
GROSS PROFIT   7,135,786    5,571,613    18,549,690    15,306,871 
                     
SELLING EXPENSES   6,688,577    5,020,971    16,539,078    13,288,602 
GENERAL AND ADMINISTRATIVE EXPENSES   2,572,862    2,737,782    6,342,874    7,318,780 
TOTAL OPERATING EXPENSES   9,261,439    7,758,753    22,881,952    20,607,382 
                     
LOSS FROM OPERATIONS   (2,125,653)   (2,187,140)   (4,332,262)   (5,300,511)
                     
INTEREST INCOME   18,964    76,266    92,196    479,509 
OTHER INCOME, NET   32,795    301,292    12,436    263,241 
                     
CHANGE IN FAIR VALUE OF DERIVATIVE LIABILITIES   (85,115)   221,859    (173,955)   420,610 
                     
LOSS BEFORE INCOME TAXES   (2,159,009)   (1,587,723)   (4,401,585)   (4,137,151)
                     
PROVISION FOR INCOME TAXES   47,958   38,106    104,712    76,691 
                     
NET LOSS   (2,206,967)   (1,625,829)   (4,506,297)   (4,213,842)
                     
OTHER COMPREHENSIVE (LOSS) INCOME                    
Foreign currency translation adjustments   (130,619)   588,543    (957,646)   1,680,796 
                     
COMPREHENSIVE LOSS  $(2,337,586)  $(1,037,286)  $(5,463,943)  $(2,533,046)
                     
WEIGHTED AVERAGE NUMBER OF SHARES:                    
Basic   28,936,778    25,214,678    28,936,778    25,214,678 
Diluted   28,936,778    25,214,678    28,936,778    25,214,678 
                     
EARNINGS PER SHARES:                    
Basic  $(0.06)  $(0.08)  $(0.14)  $(0.17)
Diluted  $(0.06)  $(0.08)  $(0.14)  $(0.17)

  

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CHINA JO-JO DRUGSTORES, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

   Nine months ended
December 31,
 
   2018   2017 
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net loss  $(4,506,297)  $(4,213,842)
Adjustments to reconcile net loss to net cash used in operating activities:          
Bad debt direct write-off and provision   1,266,994    1,948,887 
Depreciation and amortization   937,268    1,063,170 
Impairment of leasehold improvement   -    (362,737)
Stock based compensation   121,547    976,816 
Change in fair value of purchase option derivative liability   173,955    (420,610)
Accounts receivable, trade   (4,061,698)   (4,830,933)
Notes receivable   (43,024)   79,250 
Inventories and biological assets   1,828,232)   (2,945,926)
Other receivables   (681,667)   (149,447)
Advances to suppliers   (911,061)   (990,309)
Other current assets   476,909    562,148 
Long term deposit   18,548    (1,345,486)
Other noncurrent assets   23,206    (63,263)
Accounts payable, trade   (3,945,980)   853,598 
Other payables and accrued liabilities   815,725    (127,969)
Customer deposits   (2,258,202)   387,458 
Taxes payable   422,665    (222,207)
Net cash used in operating activities   (10,322,880)   (9,801,402)
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Disposal of financial assets available for sale   87,471    - 
Purchase of financial assets available for sale   (104,577)   (136,074)
Acquisition of equipment   (5,368,240)   (237,108)
Increase in construction-in-progress   -    (1,125,110)
Increase intangible assets   (29,879)   - 
Investment in a joint venture   -    (9,601)
Additions to leasehold improvements   (1,432,060)   (249,097)
Net cash used in investing activities   (6,847,285)   (1,756,990)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Proceeds from notes payable   32,903,549    28,352,683 
Repayment of notes payable   (24,930,903)   (22,501,743)
Increase in financial liability   82,167    - 
Proceeds from equity and debt financing   7,544    - 
Repayment of other payables-related parties   (82,866)   (278,691)
Net cash used in financing activities   7,979,491    5,572,249 
           
EFFECT OF EXCHANGE RATE ON CASH   (1,653,988)   2,408,839 
           
INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH   (10,844,662)   (3,577,304)
           
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year   31,452,191    27,795,810 
           
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, end of period  $20,607,529   $24,218,506 
           
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:          
Cash paid for income taxes  $56,539   $27,856 

 

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