SEC Info  
    Home      Search      My Interests      Help      Sign In      Please Sign In

China Pharma Holdings, Inc. – ‘10-Q’ for 6/30/22

On:  Thursday, 8/11/22, at 4:05pm ET   ·   For:  6/30/22   ·   Accession #:  1213900-22-46859   ·   File #:  1-34471

Previous ‘10-Q’:  ‘10-Q’ on 5/12/22 for 3/31/22   ·   Next:  ‘10-Q’ on 11/14/22 for 9/30/22   ·   Latest:  ‘10-Q’ on 11/13/23 for 9/30/23   ·   1 Reference:  By:  China Pharma Holdings, Inc. – ‘S-8’ on 10/24/22

Find Words in Filings emoji
 
  in    Show  and   Hints

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 8/11/22  China Pharma Holdings, Inc.       10-Q        6/30/22   62:3.2M                                   EdgarAgents LLC/FA

Quarterly Report   —   Form 10-Q

Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                    HTML    487K 
 2: EX-31.1     Certification -- §302 - SOA'02                      HTML     21K 
 3: EX-31.2     Certification -- §302 - SOA'02                      HTML     21K 
 4: EX-32.1     Certification -- §906 - SOA'02                      HTML     19K 
10: R1          Document And Entity Information                     HTML     72K 
11: R2          Condensed Consolidated Balance Sheets (Unaudited)   HTML    130K 
12: R3          Condensed Consolidated Balance Sheets (Unaudited)   HTML     39K 
                (Parentheticals)                                                 
13: R4          Condensed Consolidated Statements of Operations     HTML    105K 
                and Comprehensive Income (Loss) (Unaudited)                      
14: R5          Condensed Consolidated Statements of Operations     HTML     24K 
                and Comprehensive Income (Loss) (Unaudited)                      
                (Parentheticals)                                                 
15: R6          Condensed Consolidated Statements of Stockholders?  HTML     57K 
                Equity (Unaudited)                                               
16: R7          Condensed Consolidated Statements of Cash Flows     HTML    103K 
                (Unaudited)                                                      
17: R8          Organization and Significant Accounting Policies    HTML     36K 
18: R9          Inventory                                           HTML     22K 
19: R10         Property, Plant and Equipment                       HTML     27K 
20: R11         Intangible Assets                                   HTML     25K 
21: R12         Other Payables                                      HTML     22K 
22: R13         Related Party Transactions                          HTML     23K 
23: R14         Lines of Credit                                     HTML     25K 
24: R15         Convertible Note Payable                            HTML     29K 
25: R16         Leases                                              HTML     23K 
26: R17         Income Taxes                                        HTML     27K 
27: R18         Fair Value Measurements                             HTML     30K 
28: R19         Stockholders' Equity                                HTML     29K 
29: R20         Risks & Uncertainties                               HTML     23K 
30: R21         Subsequent Events                                   HTML     20K 
31: R22         Accounting Policies, by Policy (Policies)           HTML     47K 
32: R23         Inventory (Tables)                                  HTML     23K 
33: R24         Property, Plant and Equipment (Tables)              HTML     27K 
34: R25         Intangible Assets (Tables)                          HTML     22K 
35: R26         Other Payables (Tables)                             HTML     22K 
36: R27         Lines of Credit (Tables)                            HTML     23K 
37: R28         Leases (Tables)                                     HTML     21K 
38: R29         Fair Value Measurements (Tables)                    HTML     29K 
39: R30         Organization and Significant Accounting Policies    HTML     38K 
                (Details)                                                        
40: R31         Inventory (Details) - Schedule of inventory         HTML     26K 
41: R32         Property, Plant and Equipment (Details)             HTML     20K 
42: R33         Property, Plant and Equipment (Details) - Schedule  HTML     34K 
                of property, plant and equipment                                 
43: R34         Property, Plant and Equipment (Details) - Schedule  HTML     37K 
                of estimated useful lives of the assets                          
44: R35         Intangible Assets (Details)                         HTML     22K 
45: R36         Intangible Assets (Details) - Schedule of           HTML     24K 
                intangible assets                                                
46: R37         Other Payables (Details) - Schedule of other        HTML     27K 
                payables                                                         
47: R38         Related Party Transactions (Details)                HTML     46K 
48: R39         Lines of Credit (Details)                           HTML     44K 
49: R40         Lines of Credit (Details) - Schedule of principal   HTML     25K 
                payments                                                         
50: R41         Convertible Note Payable (Details)                  HTML     62K 
51: R42         Leases (Details)                                    HTML     32K 
52: R43         Leases (Details) - Schedule of operating lease      HTML     29K 
                liabilities                                                      
53: R44         Income Taxes (Details)                              HTML     28K 
54: R45         Fair Value Measurements (Details) - Schedule of     HTML     29K 
                assets and liabilities recorded at fair value                    
55: R46         Stockholders' Equity (Details)                      HTML     61K 
56: R47         Risks & Uncertainties (Details)                     HTML     47K 
57: R48         Subsequent Events (Details)                         HTML     25K 
60: XML         IDEA XML File -- Filing Summary                      XML    110K 
58: XML         XBRL Instance -- f10q0622_chinapharma_htm            XML    560K 
59: EXCEL       IDEA Workbook of Financial Reports                  XLSX     97K 
 6: EX-101.CAL  XBRL Calculations -- cphi-20220630_cal               XML    113K 
 7: EX-101.DEF  XBRL Definitions -- cphi-20220630_def                XML    469K 
 8: EX-101.LAB  XBRL Labels -- cphi-20220630_lab                     XML    969K 
 9: EX-101.PRE  XBRL Presentations -- cphi-20220630_pre              XML    465K 
 5: EX-101.SCH  XBRL Schema -- cphi-20220630                         XSD    146K 
61: JSON        XBRL Instance as JSON Data -- MetaLinks              282±   399K 
62: ZIP         XBRL Zipped Folder -- 0001213900-22-046859-xbrl      Zip    164K 


‘10-Q’   —   Quarterly Report

Document Table of Contents

Page (sequential)   (alphabetic) Top
 
11st Page  –  Filing Submission
"Part I Financial Information
"Financial Statements
"Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (Unaudited)
"Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months ended June 30, 2022 and 2021 (Unaudited)
"Condensed Consolidated Statements of Stockholders' Equity for the Six Months Ended June 30, 2022 and 2021 (Unaudited)
"Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021 (Unaudited)
"Notes to Condensed Consolidated Financial Statements (Unaudited)
"Management's Discussion and Analysis of Financial Condition and Results of Operations
"Quantitative and Qualitative Disclosures about Market Risk
"Controls and Procedures
"Part Ii Other Information
"Exhibits

This is an HTML Document rendered as filed.  [ Alternative Formats ]



 iX:   C:   C: 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM  i 10-Q

 

(Mark One) 

 i  QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

 

For the quarterly period ended  i June 30,  i 2022 / 

 

 i  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  i 001-34471

 

 i CHINA PHARMA HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

 i Nevada    i 75-1564807
(State or other jurisdiction of   (IRS Employer
incorporation or organization)   Identification No.)

 

 i Second Floor, No. 17, Jinpan Road

 i Haikou,  i Hainan Province,  i China

 

 i 570216

(Address of principal executive offices)   (Zip Code)

 

 i +86 -  i 898-6681-1730 (China)

(Registrant’s telephone number, including area code)

 

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

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
 i Common Stock    i CPHI    i NYSE American

 

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.  i Yes  No 

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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).  i Yes  No 

  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check One):

 

Large accelerated filer Accelerated filer

 i Non-accelerated filer

 

Smaller reporting company  i 

Emerging growth company  i 

 

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.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No  i 

 

As of August 10, 2022, there were  i 50,449,673 shares of common stock, $0.001 par value per share, issued and outstanding. 

 

 

 

 C: 

 

 

 

CHINA PHARMA HOLDINGS, INC. AND SUBSIDIARIES

 

TABLE OF CONTENTS

 

  Page
   

PART I FINANCIAL INFORMATION

1
     
Item 1. Financial Statements 1
     
  Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (Unaudited) 2
     
  Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months ended June 30, 2022 and 2021 (Unaudited) 3
     
  Condensed Consolidated Statements of Stockholders’ Equity for the Six Months Ended June 30, 2022 and 2021 (Unaudited) 4
     
  Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021 (Unaudited) 5
     
  Notes to Condensed Consolidated Financial Statements (Unaudited) 6
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 15
     
Item 3. Quantitative and Qualitative Disclosures about Market Risk 23
     
Item 4. Controls and Procedures 23
     
PART II OTHER INFORMATION 24
   
Item 6. Exhibits 24

 

 C: 

 C: 

 

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

CHINA PHARMA HOLDINGS, INC. AND SUBSIDIARIES

 

TABLE OF CONTENTS

 

Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (Unaudited) 2
   
Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2022 and 2021 (Unaudited) 3
   
Condensed Consolidated Statements of Stockholders’ Equity for the Six Months Ended June 30, 2022 and 2021 (Unaudited) 4
   
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021 (Unaudited) 5
   
Notes to Condensed Consolidated Financial Statements (Unaudited) 6

 

 C: 

 C: 1

 

 

CHINA PHARMA HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

   June 30,   December 31, 
   2022   2021 
ASSETS        
Current Assets:        
Cash and cash equivalents  $ i 2,244,962   $ i 4,859,059 
Banker’s acceptances    i 10,758     i 91,362 
Trade accounts receivable, less allowance for doubtful accounts of $ i 17,384,884 and $ i 18,312,707, respectively    i 318,638     i 714,475 
        
Other receivables, less allowance for doubtful accounts of $ i 29,574 and $ i 32,210, respectively    i 55,925     i 29,564 
        
Advances to suppliers    i 8,672     i 471 
Inventory    i 3,530,462     i 3,339,686 
Prepaid expenses    i 89,935     i 58,792 
Total Current Assets    i 6,259,352     i 9,093,409 
           
Property, plant and equipment, net    i 11,455,931     i 13,280,559 
Operating lease right of use asset    i 81,039     i 127,958 
Intangible assets, net    i 122,127     i 147,841 
TOTAL ASSETS  $ i 17,918,449   $ i 22,649,767 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current Liabilities:          
Trade accounts payable  $ i 397,543   $ i 926,749 
Accrued expenses    i 110,387     i 298,452 
Other payables    i 1,896,339     i 1,884,161 
Advances from customers    i 138,238     i 210,028 
Borrowings from related parties    i 2,501,819     i 2,779,690 
Operating lease liability    i 82,959     i 85,282 
Lines of credit    i 3,233,305     i 4,328,936 
Total Current Liabilities    i 8,360,590     i 10,513,298 
Non-current Liabilities:          
Convertible, redeemable note payable    i 4,750,000     i 5,250,000 
Operating lease liability, net of current portion   
-
     i 44,181 
Deferred tax liability    i 783,171     i 824,407 
Total Liabilities    i 13,893,761     i 16,631,886 
Commitments and Contingencies (Note 9)   
 
    
 
 
Stockholders’ Equity:          
Preferred stock, $ i  i 0.001 /  par value;  i  i 5,000,000 /  shares authorized; no shares issued or outstanding   
-
    
-
 
Common stock, $ i  i 0.001 /  par value;  i  i 95,000,000 /  shares authorized;  i  i 49,310,072 /  shares and  i  i 47,339,557 /  shares issued and outstanding, respectively    i 49,310     i 47,340 
Additional paid-in capital    i 26,143,397     i 25,645,367 
Retained deficit   ( i 34,156,539)   ( i 32,238,655)
Accumulated other comprehensive income    i 11,988,520     i 12,563,829 
Total Stockholders’ Equity    i 4,024,688     i 6,017,881 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $ i 17,918,449   $ i 22,649,767 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 C: 

2

 

 

CHINA PHARMA HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

 

   For the Three Months   For the Six Months 
   Ended June 30,   Ended June 30, 
   2022   2021   2022   2021 
Revenue  $ i 1,613,156   $ i 2,415,559   $ i 3,217,161   $ i 4,773,930 
Cost of revenue    i 1,842,537     i 2,344,559     i 3,616,003     i 4,430,200 
                     
Gross profit   ( i 229,381)    i 71,000    ( i 398,842)    i 343,730 
                     
Operating expenses:                    
Selling expenses    i 266,451     i 445,478     i 446,012     i 823,813 
General and administrative expenses    i 273,056     i 329,758     i 787,224     i 738,756 
Research and development expenses    i 15,063     i 53,456     i 69,112     i 243,542 
Bad debt (benefit) expense   ( i 4,358)   ( i 4,744)   ( i 9,879)   ( i 12,965)
Total operating expenses    i 550,212     i 823,948     i 1,292,469     i 1,793,146 
                     
Loss from operations   ( i 779,593)   ( i 752,948)   ( i 1,691,311)   ( i 1,449,416)
                     
Other income (expense):                    
Interest income    i 1,240     i 579     i 7,895     i 985 
Interest expense   ( i 110,041)   ( i 72,392)   ( i 234,468)   ( i 143,657)
Net other expense   ( i 108,801)   ( i 71,813)   ( i 226,573)   ( i 142,672)
                     
Loss before income taxes   ( i 888,394)   ( i 824,761)   ( i 1,917,884)   ( i 1,592,088)
Income tax  expense   
-
    
-
    -    - 
Net (loss) income   ( i 888,394)   ( i 824,761)   ( i 1,917,884)   ( i 1,592,088)
Other comprehensive income (loss) - foreign currency translation adjustment   ( i 626,958)    i 183,455    ( i 575,309)    i 112,130 
                     
Comprehensive (loss) income  $( i 1,515,352)  $( i 641,306)  $( i 2,493,193)  $( i 1,479,958)
(Loss) Earnings per share:                    
Basic and diluted
  $( i 0.02)  $( i 0.02)  $( i 0.04)  $( i 0.03)
Weighted average shares outstanding    i 48,488,671     i 45,579,557     i 47,931,487     i 45,579,557 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.  

 

 C: 

3

 

 

CHINA PHARMA HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

 

                   Accumulated     
           Additional       Other   Total 
   Common Stock   Paid-in   Retained   Comprehensive   Stockholders’ 
   Shares   Amount   Capital   Deficit   Income   Equity 
Balance, January 1, 2021    i 45,579,557   $ i 45,580   $ i 24,452,684   $( i 28,839,179)  $ i 12,345,446   $ i 8,004,531 
Net loss for the period   -    
-
    
-
    ( i 767,327)   
-
    ( i 767,327)
Foreign currency translation adjustment   -    
-
    
-
    
-
    ( i 71,325)   ( i 71,325)
Balance, March 31, 2021    i 45,579,557     i 45,580     i 24,452,684    ( i 29,606,506)    i 12,274,121     i 7,165,879 
Net loss for the period   -    -    -    ( i 824,761)   -    ( i 824,761)
Foreign currency translation adjustment   -    -    -    -     i 183,455     i 183,455 
Balance, June 30, 2021       $ i 45,580   $ i 24,452,684   $( i 30,431,267)  $ i 12,457,576   $ i 6,524,573 

 

                   Accumulated     
           Additional       Other   Total 
   Common Stock   Paid-in   Retained   Comprehensive   Stockholders’ 
   Shares   Amount   Capital   Deficit   Income   Equity 
Balance, January 1, 2022    i 47,339,557   $ i 47,340   $ i 25,645,367   $( i 32,238,655)  $ i 12,563,829   $ i 6,017,881 
Conversions of Note Payable to common stock    i 960,414     i 960     i 299,040         -     i 300,000 
Net loss for the period   -    
-
    
-
    ( i 1,029,490)   
-
    ( i 1,029,490)
Foreign currency translation adjustment   -    
-
    
-
    
-
     i 51,649     i 51,649 
Balance, March 31, 2022    i 48,299,971     i 48,300     i 25,944,407    ( i 33,268,145)    i 12,615,478     i 5,340,040 
Conversions of Note Payable to common stock    i 1,010,101     i 1,010     i 198,990               i 200,000 
Net loss for the period                  ( i 888,394)        ( i 888,394)
Foreign currency translation adjustment                       ( i 626,958)   ( i 626,958)
Balance, June 30, 2022    i 49,310,072   $ i 49,310   $ i 26,143,397   $( i 34,156,539)  $ i 11,988,520   $ i 4,024,688 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 C: 

4

 

 

CHINA PHARMA HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

   For the Six Months 
   Ended June 30, 
   2022   2021 
Cash Flows from Operating Activities:        
Net loss  $( i 1,917,884)  $( i 1,592,088)
Depreciation and amortization    i 1,396,771     i 1,400,647 
Bad debt (benefit) expense   ( i 9,879)   ( i 12,965)
Inventory write off   
-
     i 121,604 
Changes in assets and liabilities:          
Trade accounts and other receivables    i 148,105    ( i 120,757)
Advances to suppliers   ( i 8,514)   ( i 702)
Inventory   ( i 85,985)    i 890,435 
Trade accounts payable   ( i 499,822)   ( i 558,912)
Other payables and accrued expenses   ( i 137,335)    i 447,500 
Advances from customers   ( i 63,438)   ( i 201,063)
Prepaid expenses   ( i 35,281)    i 25,421 
Net Cash (Used in) Provided by Operating Activities   ( i 1,213,262)    i 399,120 
           
Cash Flows from Investing Activities:          
Purchases of property and equipment   ( i 176,682)   ( i 15,022)
Net Cash Used in Investing Activities   ( i 176,682)   ( i 15,022)
           
Cash Flows from Financing Activities:          
Payments of construction term loan   
-
    ( i 154,516)
Payments of line of credit   ( i 910,000)   ( i 896,194)
Proceeds from line of credit   
-
     i 772,581 
Borrowings and interest from related party    i 15,023     i 932,876 
Repayments to related party   ( i 231,356)   ( i 251,861)
Net Cash (Used In) Provided By Financing Activities   ( i 1,126,333)    i 402,886 
           
Effect of Exchange Rate Changes on Cash   ( i 97,821)    i 10,231 
Net Change in Cash and Cash Equivalents   ( i 2,614,098)    i 797,215 
Cash and Cash Equivalents at Beginning of Period    i 4,859,060     i 957,653 
Cash and Cash Equivalents at End of Period  $ i 2,244,962   $ i 1,754,868 
           
Supplemental Cash Flow Information:          
Cash paid for income taxes  $
-
   $
-
 
Cash paid for interest  $ i 81,401   $ i 121,090 
           
Supplemental Noncash Investing and Financing Activities:          
Accounts receivable collected with banker’s acceptances  $ i 205,711   $ i 195,021 
Inventory purchased with banker’s acceptances    i 284,418     i 249,198 
Conversions of Note Payable to common stock    i 500,000    
-
 
Right of use assets obtained in exchange for operatng lease obligations   
-
     i 168,077 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 C: 

5

 

 

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)

 

 i 

NOTE 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

 

 i 

Organization and Nature of Operations – China Pharma Holdings, Inc., a Nevada corporation (the “Company”), owns  i 100% of Onny Investment Limited (“Onny”), a British Virgin Islands corporation, which owns  i 100% of Hainan Helpson Medical & Biotechnology Co., Ltd (“Helpson”), a company organized under the laws of the People’s Republic of China (the “PRC”). China Pharma Holdings, Inc. and its subsidiaries are referred to herein as the Company.

 

 / 

Onny acquired  i 100% of the ownership in Helpson on May 25, 2005, by entering into an Equity Transfer Agreement with Helpson’s three former shareholders. The transaction was approved by the Commercial Bureau of Hainan Province on June 12, 2005 and Helpson received the Certificate of Approval for Establishment of Enterprises with Foreign Investment in the PRC on the same day. Helpson received its business license evidencing its Wholly Foreign Owned Enterprise (“WFOE”) status on June 21, 2005.

 

Helpson is principally engaged in the development, manufacture and marketing of pharmaceutical products for human use in connection with a variety of high-incidence and high-mortality diseases and medical conditions prevalent in the PRC. All of its operations are conducted in the PRC, where its manufacturing facilities are located. Helpson manufactures pharmaceutical products in the form of dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions. The majority of its pharmaceutical products are sold on a prescription basis and all have been approved for at least one or more therapeutic indications by the National Medical Products Administration (the “NMPA”, formerly China Food and Drug Administration, or CFDA) based upon demonstrated safety and efficacy.

 

 i 

Liquidity and Going Concern

 

As of June 30, 2022, the Company had cash and cash equivalents of $ i 2.2 million and an accumulated deficit of $ i 34.2 million. The Company’s Chairperson, Chief Executive Officer and Interim Chief Financial Officer has advanced an aggregate of $ i 1,147,252 at June 30, 2022 to provide working capital and enable the Company to make the required payments related to its prior construction loan facility. The Company anticipates operating losses to continue for the foreseeable future due to, among other things, costs related to the production of its existing products, debt service costs and costs of selling and administrative costs. These conditions raise substantial doubt about its ability to continue as a going concern within one year after the date that the financial statements are issued. To alleviate the conditions that raise substantial doubt about the Company’s ability to continue as a going concern, management plans to enhance the sales model of advance payment, and further strengthen its collection of accounts receivable. Further, the Company is currently exploring strategic alternatives to accelerate the launch of nutrition products. In addition, management believes that the Company’s existing fixed assets can serve as collateral to support additional bank loans. While the current plans will allow the Company to fund its operations in the next twelve months, there can be no assurance that the Company will be able to achieve its future strategic alternatives raising substantial doubt about its ability to continue as a going concern.

 

Pursuant to the requirements of Accounting Standards Codification (ASC) 205-40, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. This evaluation initially does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued.

 

Under ASC 205-40, the strategic alternatives being pursued by the Company cannot be considered probable at this time because none of the Company’s current plans have been finalized at the time of the issuance of these financial statements and the implementation of any such plan is not probable of being effectively implemented as none of the plans are entirely within the Company’s control. Accordingly, substantial doubt is deemed to exist about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued.

 

The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above.

 

 C: 

6

 

 

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)

 

 i 

Consolidation and Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are expressed in United States dollars. The accompanying consolidated financial statements include the accounts and operations of the Company including its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation.

 

Helpson’s functional currency is the Chinese Renminbi. Helpson’s revenue and expenses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating Helpson’s financial statements are included in accumulated other comprehensive income, which is a component of stockholders’ equity. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity that is party to the transaction are included in the results of operations.

 

In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated on consolidation. However, the results of operations included in such financial statements may not necessary be indicative of annual results. Such financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2022 (“2021 Annual Report”).

 

 i 

Accounting Estimates The methodology used to prepare the Company’s financial statements is in conformity with U.S. GAAP, which requires the management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Therefore, actual results could differ from those estimates.

 

The Company uses the same accounting policies in preparing its quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.

 

 i 

Loss Per Share - Basic loss per share is calculated by dividing loss available to common stockholders by the weighted-average number of shares of common stock outstanding, excluding unvested stock. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if the potential common shares, including unvested stock, had been issued and if the additional common shares were dilutive.

 

The potentially dilutive common shares related to the Convertible, redeemable note payable of  i 21,379,074 and  i 11,975,447 at June 30, 2022 and December 31, 2021 as discussed in Note 8, respectively, and the option to purchase  i  i 65,000 /  shares of common stock at June 30, 2022 and December 31, 2021 are excluded from the computation of diluted net loss per share for all periods presented because the effect is anti-dilutive due to net losses of the Company.

 

 i 

Recent Accounting Pronouncements

 

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326), which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The pronouncement will be effective for public business entities that are SEC smaller reporting company filers in fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early application of the guidance will be permitted for all entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not anticipate the guidance will have a material impact on its financial statements.

 

 C: 

7

 

 

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)

 

In 2020, the Financial Accounting Standards Board issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to address the complexity in accounting for certain financial instruments with characteristics of liabilities and equity. Amongst other provisions, the amendments in this ASU significantly change the guidance on the issuer’s accounting for convertible instruments and the guidance on the derivative scope exception for contracts in an entity’s own equity such that fewer conversion features will require separate recognition, and fewer freestanding instruments, like warrants, will require liability treatment. The pronouncement will be effective for public business entities that are SEC smaller reporting company filers in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early application of the guidance will be permitted for all entities for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company adopted the standard during fiscal 2021.

 

From time to time, the FASB or other standards setting bodies issue new accounting pronouncements. Updates to the FASB ASC are communicated through issuance of ASUs. Unless otherwise discussed, the Company believes that the recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on its consolidated financial statements upon adoption.

 

 i 

NOTE 2 – INVENTORY

 

Inventory consisted of the following:

 

 i 
   June 30,   December 31, 
   2022   2021 
Raw materials    i 1,896,166     i 2,131,584 
Work in process    i 356,702     i 622,380 
Finished goods    i 1,277,594     i 585,722 
Total Inventory  $ i 3,530,462   $ i 3,339,686 
 / 

 

 i 

NOTE 3 – PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment consisted of the following:

 

 i 
   June 30,   December 31, 
   2022   2021 
Permit of land use  $ i 419,685   $ i 441,783 
Building    i 9,745,742     i 10,258,885 
Plant, machinery and equipment    i 28,782,817     i 30,122,235 
Motor vehicle    i 320,499     i 337,375 
Office equipment    i 268,349     i 278,892 
Total    i 39,537,092     i 41,439,170 
Less: accumulated depreciation   ( i 28,081,161)   ( i 28,158,611)
Property, plant and equipment, net  $ i 11,455,931   $ i 13,280,559 

 / 

 

Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:

 

 i 
Asset   Life - years
Permit of land use   i 40 -  i 70
Building   i 20 -  i 49
Plant, machinery and equipment   i 5 -  i 10
Motor vehicle   i 5 -  i 10
Office equipment   i 3- i 5

 

 / 

Depreciation relating to office equipment was included in general and administrative expenses, while all other depreciation was included in cost of revenue. Depreciation expense was $ i 673,931 and $ i 690,943 for the three months ended June 30, 2022 and 2021, respectively and $ i 1,377,808 and $ i 1,381,650 for the six months ended June 30, 2022 and 2021, respectively.

 

 i 

NOTE 4 - INTANGIBLE ASSETS

 

Intangible assets represent the cost of medical formulas approved for production by the NMPA. The Company did not obtain NMPA production approval for any new medical formulas during the six months ended June 30, 2022 and 2021 and no costs were reclassified from advances to intangible assets during the six months ended June 30, 2022 and 2021, respectively.

 

 C: 

8

 

 

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)

 

 i Approved medical formulas are amortized from the date NMPA approval is obtained over their individually identifiable estimated useful life, which range from ten to thirteen years.  It is at least reasonably possible that a change in the estimated useful lives of the medical formulas could occur in the near term due to changes in the demand for the drugs and medicines produced from these medical formulas. Amortization expense relating to intangible assets was $ i 9,680 and $ i 9,517 for the three months ended June 30, 2022 and 2021, respectively, and $ i 18,963 and $ i 18,997 for the six months ended June 30, 2022 and 2021, respectively, which was included in the general and administrative expenses. Medical formulas typically do not have a residual value at the end of their amortization period.

 

The Company evaluates each approved medical formula for impairment at the date of NMPA approval, when indications of impairment are present and also at the date of each financial statement. The Company’s evaluation is based on an estimated undiscounted net cash flow model, which considers currently available market data for the related drug and the Company’s estimated market share. If the carrying value of the medical formula exceeds the estimated future net cash flows, an impairment loss is recognized for the excess of the carrying value over the fair value of the medical formula, which is determined by the estimated discounted future net cash flows. No impairment loss was recognized during the six months ended June 30, 2022 and 2021.

 

Intangible assets consisted solely of NMPA approved medical formulas as follows:

 

 i 
   June 30,   December 31, 
   2022   2021 
Gross carrying amount  $ i 5,030,045   $ i 5,294,892 
Accumulated amortization   ( i 4,907,918)   ( i 5,147,051)
Net carrying amount  $ i 122,127   $ i 147,841 
 / 

 

 i 

NOTE 5 – OTHER PAYABLES

 

Other Payables consisted of the following:

 

 i 
   June 30,   December 31, 
   2022   2021 
Compensation payable to officer  $ i 723,506   $ i 715,506 
Compensation and interest to related parties    i 349,805     i 327,033 
Business taxes and other    i 823,028     i 841,622 
Total Other Payables  $ i 1,896,339   $ i 1,884,161 
 / 

 

 i 

NOTE 6 – RELATED PARTY TRANSACTIONS

 

A member of the Company’s board of directors (“Board”) had previously advanced to the Company an aggregate amount of $ i  i 1,354,567 /  as of June 30, 2022 and December 31, 2021 which is recorded as “Borrowings from related parties” on the accompanying condensed consolidated balance sheets. The advances bear interest at a rate of  i 1.0% per year.  Total interest expense for each of the three months ended June 30, 2022 and 2021 was $ i 3,387 and $ i 3,387, respectively and $ i 6,773 and $ i 6,773 for the six months ended June 30, 2022 and 2021, respectively. Compensation and interest payable to the board member is included in Other payables in the accompanying condensed consolidated balance sheet totaling $ i 349,805 and $ i 327,033 as of June 30, 2022 and December 31, 2021, respectively.

 

The Company repaid $ i 231,356 of the advances during the six months ended June 30, 2022 from its Chairperson, Chief Executive Officer and Interim Chief Financial Officer. Total amounts owed were $ i 1,147,252 and $ i 1,425,123 and are recorded as “Borrowings from related parties” on the accompanying condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021, respectively. On July 8, 2019 the Company entered into a loan agreement in exchange for cash of RMB  i 4,770,000 ($ i 738,379) with its Chairperson, Chief Executive Officer and Interim Chief Financial Officer. The loan bears interest at a rate of  i 4.35% and was payable within one year of the loan agreement. The due date of the loan agreement has been extended annually on identical terms, and is due July 9, 2023. Total interest expense related to the loan for the three months ended June 30, 2022 and 2021 was $ i 7,354 and $ i 7,539, respectively and $ i 15,023 and $ i 15,050 for the six months ended June 30, 2022 and 2021, respectively. Compensation payable to the Chairperson, Chief Executive Officer and Interim Chief Financial Officer is included in “Other payables” in the accompanying condensed consolidated balance sheet totaling $ i 723,506 and $ i 715,506 as of June 30, 2022 and December 31, 2021, respectively.

 

 C: 

9

 

 

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)

 

 i 

NOTE 7 –LINES OF CREDIT

 

In April 2020,  i the Company obtained a line of credit from Postal Savings Bank of China for an aggregate amount of RMB 10,000,000 (approximately $1.4 million), of which RMB 5,000,000 (approximately $0.7 million) was advanced in April 2020, and RMB 3,000,000 (approximately $0.4 million) was advanced in July 2020. The loan bears interest at a rate of 4.25% per annum. Advances on the line of credit are due two years from the date of the advance. A third party company has guaranteed the loan as being a second priority creditor in the collateral in certain land use rights and buildings next to Bank of China. In addition, the Company’s Chief Executive Officer and Chair of the Board personally guaranteed the new line of credit. Total interest expense under this facility for the three months ended June 30, 2022 and 2021 was $9,445 and $11,550, respectively and $12,708 and $23,494 for the six months ended June 30, 2022 and 2021, respectively. The Company repaid the remaining RMB 5,900,000 ($0.91 million) during the six months ended June 30, 2022.

 

On June 30, 2020  i the Company obtained a line of credit with Bank of Communications for an aggregate amount of RMB  i 8,500,000 (approximately $ i 1.2 million), all of which has been advanced. The loan bears interest at the rate of  i 4.05% per annum. The line of credit is due in one year on the anniversary date of the line of credit. In addition, the Company’s Chief Executive Officer and Chair of the Board personally guaranteed the new line of credit and pledged personal assets as collateral for the loan. On June 21, 2021 the Company paid the balance in full. On June 25, 2021 the Company entered into a new loan bearing an interest rate of 4.17%. The line of credit is due in one year on the anniversary date of the line of credit. /  The Company paid all principal and interest on June 21, 2022 and on June 22, 2022 entered into a new loan for the same principal amount bearing interest at  i 4.17% and due December 21, 2022. In addition, the Company’s Chief Executive Officer and Chair of the Board personally guaranteed the new line of credit and pledged personal assets as collateral for the loan. Total interest expense for the three months ended June 30, 2022 and 2021 was $ i 13,971 and $ i 11,550, respectively and $ i 27,925 and $ i 23,517 for the six months ended June 30, 2022 and 2021, respectively.

 

 i The Company obtained a line of credit of RMB 3,200,000 (approximately $0.5 million) from China CITIC Bank in September 2020 and obtained an advance of RMB 2,343,340 (approximately $0.3 million), and the remaining of RMB 856,660 (approximately $0.1 million) in October 2020 under this line. The loan bears interest at the rate of 4.50% per annum. In September 2021, the Company repaid the line of credit in full. Also in September 2021, the Company entered into a new line of credit in the amount of RMB 3,200,000 (approximately $0.8 million) on the same terms. The line of credit is due on September 2, 2022. In addition, the Company’s Chief Executive Officer and Chair of the Board personally guaranteed the new line of credit and pledged personal assets as collateral for the loan. Total interest for the three months ended June 30, 2022 and 2021 was $ i 5,669 and $ i 5,552, respectively.

 

 i On September 18, 2021 the Company obtained a line of credit for RMB 10,000,000 (approximately $1.54 million) with Bank of China. The loan bears interest at the rate of 3.85% per annum. The line of credit is due September 18, 2022. The loan is collateralized by the Company’s new production facility and the included production line equipment and machinery. In addition, the Company’s Chief Executive Officer and Chair of the Board personally guaranteed the new line of credit. Total interest for the three months ended June 30, 2022 and 2021 was $ i 15,175 and $ i 0, respectively and $ i 30,332 and $ i 0 for the six months ended June 30, 2022 and 2021, respectively.

 

Principal payments required for the remaining terms of the loan facility and lines of credit as of June 30, 2022 are as follows:

 

 i 
Year  Lines of Credit 
2022  $ i 3,233,305 
   $ i 3,233,305 

 

 / 

Fair Value of Lines of Credit – Based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities, the carrying amounts of the lines of credit outstanding as of June 30, 2022 and December 31, 2021 approximated their fair values because the underlying instruments bear an interest rate that approximates current market rates. 

 

 i 

NOTE 8 – CONVERTIBLE NOTE PAYABLE

 

On November 17, 2021, the Company entered into a Securities Purchase Agreement (the “Agreement”) pursuant to which the Company issued an unsecured convertible promissory note (the “Note”) to an institutional accredited investor Streeterville Capital, LLC (the “Investor”). The Note matures  i fifteen months after the purchase price of the Note is delivered from the Investor to the Company (the “Purchase Price Date”). The Note has the original principal amount of $ i 5,250,000 and Investor gave consideration of $ i 5,000,000, reflecting original issue discount of $ i 250,000. The transaction contemplated under the Agreement was closed on November 19, 2021 and the Company has been using the proceeds for general working capital purposes.

 

 C: 

10

 

 

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)

 

The Note balance of $ i 4,750,000 at June 30, 2022 is convertible into  i 1,583,333 shares of the Company’s common stock at a price of $ i 3.00 per share.

 

 i 

Interest accrues on the outstanding balance of the Note at 5% per annum compounded daily. Upon the occurrence of an Event of Default as defined in the Note, interest accrues at the lesser of 22% per annum or the maximum rate permitted by applicable law. In addition, upon any Event of Default, the Investor may accelerate the outstanding balance payable under the Note, which will increase automatically upon such acceleration by 15% or 5%, depending on the nature of the Event of Default.

 

Pursuant to the terms of the Agreement and the Note, the Company must obtain Investor’s consent for certain fundamental transactions such as consolidation, merger with or into another entity (excerpt for a reincorporation merger), disposition of substantial assets, change of control, reorganization or recapitalization. Any occurrence of a fundamental transaction without Investor’s prior written consent will be deemed an Event of Default.

 

Investor may redeem all or any part the outstanding balance of the Note, subject to $ i 500,000 per calendar month, at any time after one hundred twenty-one (121) days from the Purchase Price Date upon three trading days’ notice, in cash or converting into shares of the Company’s common stock, at a price equal to  i 85% multiplied by the lowest daily volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion, subject to certain adjustments and ownership limitations specified in the Note. The Note provides for liquidated damages upon failure to comply with any of the terms or provisions of the Note. The Company may prepay the outstanding balance of the Note with the Investor’s consent. At inception, the Note was redeemable into  i 8,811,430 shares based on the lowest volume weighted average price of $ i 0.595817 on the inception date of November 19, 2021. As of June 30, 2022 and December 31, 2021, the Note was redeemable into  i 21,379,074 and  i 11,975,447 shares of common stock, respectively based on the lowest volume weighted average price of $ i 0.2222 and $ i 0.4384 on those dates, respectively.

 

Total interest expense for the three months ended June 30, 2022 and 2021 was $ i 63,585 and $ i 0, respectively and $ i 131,271 and $ i 0 for the six months ended June 30, 2022 and 2021, respectively.

 

On March 21, 2022 the Investor delivered its notice of redemption for $ i 100,000 of the Note and related interest at the price of $ i 0.3113, which was  i 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of  i 321,233 shares of common stock to the Investor on March 23, 2022.

 

On March 30, 2022 the Investor delivered its notice of redemption for $ i 200,000 of the Note and related interest at the price of $ i 0.3129, which was  i 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of  i 639,181 shares of common stock to the Investor on March 31, 2022.

 

On June 9, 2022 the Investor delivered its notice of redemption for $ i 200,000 of the Note and related interest at the price of $ i 0.198, which was  i 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of  i 1,010,101 shares of common stock to the Investor on June 13, 2022.

 

 i 

NOTE 9 - LEASES

 

The Company has leases for certain office and production facilities in the PRC which are classified as operating leases. The leases contain payment terms for fixed amounts. Options to extend are recognized as part of the lease liabilities and recognized as right to use assets when management estimates to renew the lease. There are no residual value guarantees, no variable lease payments, and no restrictions or covenants imposed by leases. The discount rate used in measuring the lease liabilities and right of use assets was determined by reviewing the Company’s incremental borrowing rate at the initial measurement date. For the three months ended June 30, 2022 and 2021, operating lease cost was $ i 19,101 and $ i 24,793, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $ i 20,060 and $ i 26,352, respectively. For the six months ended June 30, 2022 and 2021, operating lease cost was $ i 40,519 and $ i 48,760, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $ i 42,554 and $ i 51,827, respectively. As of June 30, 2022 and December 31, 2021, the Company reported operating lease right of use assets of $ i 81,038 and $ i 127,958, respectively and operating use liabilities of $ i 82,959 and $ i 129,462, respectively. As of June 30, 2022, its operating leases had a weighted average remaining lease term of  i 1.0 years and a weighted average discount rate of  i 4.75%.

 

 C: 

11

 

 

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)

 

Minimum lease payments for the Company’s operating lease liabilities were as follows for the twelve month periods ended June 30:

 

 i 
2023  $ i 85,109 
Total undiscounted cash flows    i 85,109 
Less: Imputed interest   ( i 2,150)
     i 82,959 
Less: Operating lease liabilities, current portion   ( i 82,959)
Operating lease liabilities, net of current portion  $
-
 

 

 / 

The Company has leases with terms less than  i one year for certain provincial sales offices that are not material.

 

 i 

NOTE 10 - INCOME TAXES

 

Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

 

Liabilities are established for uncertain tax positions expected to be taken in income tax returns when such positions are judged to meet the “more-likely-than-not” threshold based on the technical merits of the positions. Estimated interest and penalties related to uncertain tax positions are included as a component of other expenses. Through December 31, 2021, the Company has not identified any uncertain tax positions that it has taken. U.S. income tax returns for the years ended December 31, 2017 through December 31, 2021 and the Chinese income tax return for the year ended December 31, 2021 are open for possible examination.

 

Under the current tax law in the PRC, the Company is and will be subject to the enterprise income tax rate of  i 25%.

  

There was no provision for income taxes for the three and six months ended June 30, 2022 and 2021, respectively due to continued net losses of the Company.

 

As of June 30, 2022, the Company had net operating loss carryforwards for PRC tax purposes of approximately $ i 23.2 million which are available to offset any future taxable income through 2027.  i Approximately $4.1 million of these carryforwards will expire in December 2022. The Company also has net operating losses for United States federal income tax purposes of approximately $8.2 million of which $5.1 million is available to offset future taxable income, if any, through 2039, and $3.1 million are available for carryforward indefinitely subject to a limitation of 80% of taxable income for each tax year.

 

U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017.  i The U.S. Tax Reform significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transition tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings.

 

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.  The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible or tax loss carry forwards are utilized.  Management considers projected future taxable income and tax planning strategies in making this assessment.  Based upon an assessment of the level of historical taxable income and projections for future taxable income over the periods on which the deferred tax assets are deductible or can be utilized, management believes it is not likely for the Company to realize all benefits of the deferred tax assets as of June 30, 2022 and December 31, 2021.  Therefore, the Company provided for a valuation allowance against its deferred tax assets of $ i 23,305,276 and $ i 23,982,509 as of June 30, 2022 and December 31, 2021, respectively.

 

The Company also incurred various other taxes, comprised primarily of business taxes, value-added taxes, urban construction taxes, education surcharges and others. Any unpaid amounts are reflected on the balance sheets as accrued taxes payable.

 

 C: 

12

 

 

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)

 

 i 

NOTE 11 – FAIR VALUE MEASUREMENTS

 

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, a hierarchy has been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data; and Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

 

The Company uses fair value to measure the value of the banker’s acceptance notes it holds at June 30, 2022 and December 31, 2021. The banker’s acceptance notes are recorded at cost which approximates fair value.  The Company held the following assets and liabilities recorded at fair value:

 

 i 
       Fair Value Measurements at 
       Reporting Date Using 
Description  June 30, 2022   Level 1   Level 2   Level 3 
Banker’s acceptance notes  $ i 10,758   $
-
   $ i 10,758   $
-
 
Total  $ i 10,758   $
-
   $ i 10,758   $
-
 

 

 / 
       Fair Value Measurements at 
       Reporting Date Using 
Description  December 31, 2021   Level 1   Level 2   Level 3 
Banker’s acceptance notes  $ i 91,362   $
  -
   $ i 91,362   $
   -
 
Total  $ i 91,362   $
-
   $ i 91,362   $
 -
 

 

 i 

NOTE 12 - STOCKHOLDERS’ EQUITY

 

The Company is authorized to issue  i 95,000,000 shares of common stock, $ i 0.001 par value, and  i 5,000,000 shares of preferred stock, $ i 0.001 par value. The preferred stock may be issued in series with such designations, preferences, stated values, rights, qualifications or limitations as determined solely by the Company’s Board.

 

According to relevant PRC laws, companies registered in the PRC, including the Company’s PRC subsidiary, Helpson, are required to allocate at least  i 10% of their after tax income, as determined under the accounting standards and regulations in the PRC, to statutory surplus reserve accounts until the reserve account balances reach  i 50% of the company’s registered capital prior to their remittance of funds out of the PRC. Allocations to these reserves and funds can only be used for specific purposes and are not transferrable to the parent company in the form of loans, advances or cash dividends. The amount designated for general and statutory capital reserves is $ i  i 8,145,000 /  at June 30, 2022 and December 31, 2021.

 

2022 Share Issuances

 

On March 21, 2022 the Investor as discussed in Note 8 delivered its notice of redemption for $ i 100,000 of the Note and related interest at the lowest volume weighted average price of $ i 0.3113 during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of  i 321,233 shares of common stock to the Investor on March 23, 2022.

 

On March 30, 2022 the Investor as discussed in Note 8 delivered its notice of redemption for $ i 200,000 of the Note and related interest at the lowest volume weighted average price of $ i 0.3129 during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of  i 639,181 shares of common stock to the Investor on March 31, 2022.

 

On June 9, 2022 the Investor as discussed in Note 8 delivered its notice of redemption for $ i 200,000 of the Note and related interest at the lowest volume weighted average price of $ i 0.198 during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of  i 1,010,101 shares of common stock to the Investor on June 13, 2022.

 

 C: 

13

 

 

CHINA PHARMA HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)

 

2010 Incentive Plan

 

On November 12, 2010, the Company’s Board adopted the Company’s 2010 Incentive Plan (the “Plan”), which was then approved by stockholders on December 22, 2010. On October 17, 2019, the Board of Directors approved the First Amendment to the 2010 Incentive Plan (the “Amendment”), pursuant to which the term of the 2010 Incentive Plan was extended to December 31, 2029. The Amendment was adopted by the stockholders on December 19, 2019. On October 25, 2021, the Board of Directors approved, and on December 27, 2021 our stockholders adopted the Amendment No.2 to the Plan to increase the number of shares of the Common Stock, that are reserved thereunder by  i 5,000,000 shares from  i 4,000,000 shares to  i 9,000,000 shares. The Plan gave the Company the ability to grant stock options, restricted stock, stock appreciation rights and performance units to its employees, directors and consultants, or those who will become employees, directors and consultants of the Company and/or its subsidiaries. The Plan currently allows for equity awards of up to  i 9,000,000 shares of common stock. Through June 30, 2022, there were  i 3,935,000 shares of stock granted and outstanding under the Plan. A total of  i 65,000 options were outstanding as of June 30, 2022 under the Plan. As such, there are  i 5,000,000 additional shares available for issuance under the Plan.

 

As of June 30, 2022, there was no remaining unrecognized compensation expense related to stock options or restricted stock grants.

 

 i 

NOTE 13 – RISKS & UNCERTAINTIES

 

Current vulnerability due to certain concentrations

 

For the six months ended June 30, 2022, one customer accounted for  i 10.2% of sales and  i three customers accounted for  i 53.3%,  i 11.5% and  i 10.4% of accounts receivable.  i Three suppliers accounted for  i 22.4%,  i 15.8% and  i 13.6% of raw material purchases, and three different products accounted for  i 25.6%,  i 24.9% and  i 14.6% of revenue.

 

For the six months ended June 30, 2021, no customer accounted for more than  i 10% of sales and  i three customers accounted for  i 52.3%,  i 11.3% and  i 10.3% of accounts receivable.  i Two suppliers accounted for  i 37.8% and  i 13.9% of raw material purchases, and three different products accounted for  i 30.1%,  i 20.2% and  i 12.7% of revenue.

 

Nature of Operations

 

Impact from the New Coronavirus Global Pandemic (“COVID-19”) - Although the outbreak of COVID-19 since the first quarter of 2020 has been under control, and China has returned to normal production and social life in an orderly manner, China is still encountering frequent resurgences in many of the major cities. For now, these resurgences have not caused material impact to our daily operations, However, due to the lock down and zero-case policy, we cannot ensure that any future resurgence will not cause substantial influence onto our business. If that happens, any disruption or delay of the Company’s suppliers or customers in the future would likely impact its sales and operating results.

 

Economic environment - Substantially all of the Company’s operations are conducted in the PRC, and therefore the Company is subject to special considerations and significant risks not typically associated with companies operating in the United States of America. These risks include, among others, the political, economic and legal environments and fluctuations in the foreign currency exchange rate. The Company’s results from operations may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The unfavorable changes in global macroeconomic factors may also adversely affect the Company’s operations.

 

In addition, all of the Company’s revenue is denominated in the PRC’s currency of Renminbi (RMB), which must be converted into other currencies before remittance out of the PRC. Both the conversion of RMB into foreign currencies and the remittance of foreign currencies abroad require approval of the PRC government.

 

 i 

NOTE 14 – SUBSEQUENT EVENTS

 

On August 3, 2022 the Investor discussed in Note 8 delivered its notice of redemption for $ i 200,000 of the Note and related interest at the conversion price of $ i 0.1755, which was  i 85% of the lowest volume weighted average price during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of  i 1,139,601 shares of common stock to the Investor on August 4, 2022.

 

 C: 

14

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

 

The statements contained in this report with respect to our financial condition, results of operations and business that are not historical facts are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology, such as “anticipate,” “believe,” “expect,” “plan,” “intend,” “seek,” “estimate,” “project,” “could,” or the negative thereof or other variations thereon, or by discussions of strategy that involve risks and uncertainties. Management wishes to caution the readers that any such forward-looking statements contained in this report reflect our current beliefs with respect to future events and involve known and unknown risks, uncertainties and other factors, including, but not limited to, economic, competitive, regulatory, technological, key employees, and general business factors affecting our operations, markets, growth, services, products, licenses and other factors, some of which are described in this report and some of which are discussed in our other filings with the Securities and Exchange Commission (the “SEC”). These forward-looking statements are only estimates or predictions. No assurances can be given regarding the achievement of future results, as actual results may differ materially as a result of risks facing our company, and actual events may differ from the assumptions underlying the statements that have been made regarding anticipated events.

 

These risk factors should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. All written and oral forward-looking statements made in connection with this report that are attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Given these uncertainties, we caution investors not to unduly rely on our forward-looking statements. We do not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as required by applicable law or regulation.

 

Business Overview & Recent Developments

 

We are principally engaged in the development, manufacture and marketing of pharmaceutical products for human use in connection with a variety of high-incidence and high-mortality diseases and medical conditions prevalent in the People’s Republic of China (the “PRC”). All of our operations are conducted in the PRC, where our manufacturing facilities are located. We manufacture pharmaceutical products in the form of dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions. The majority of our pharmaceutical products are sold on a prescription basis and all of them have been approved for at least one or more therapeutic indications by the National Medical Products Administration (the “NMPA”, formerly China Food and Drug Administration, or CFDA) based upon demonstrated safety and efficacy.

 

China’s consistency evaluation of generic drugs continues to proceed in the first six months ended June 30, 2022. The supporting policies from central and provincial governments are constantly issued, including polices regarding consistency evaluation for injectable products. We have always taken the task of promoting the consistency evaluation as our top priority, and worked on them actively. However, due to the continuous dynamic changes of the detailed policies, future market, expected investment, and return of investment (“ROI”) for each drug’s consistency evaluation, entities in the whole industry, including us, have been making slow progresses in terms of the consistency evaluation. We have a product that passed biological equivalents experiments of consistency evaluation in March 2021. We have submitted application documents to NMPA at the end of 2021, and we passed the clinical verification of the drug by NMPA in June 2022.

 

 C: 

15

 

 

We have taken a more cautious and flexible attitude towards initiating and progressing any project for existing products’ consistency evaluation to cope with the changing macro environment of drug sales in China. Since “4 + 7” (refers to 11 selected pilot cities, including 4 municipalities and 7 other cities) trial Centralized Procurement (“CP”) activities initiated in 2018, seven rounds of CP activities have been carried out by July 2022, which significantly reduced the price of the drugs that won the bids. In addition, the consistency evaluation has been adopted as one of the qualification standards for participating in the CP activities. As a result, we need to balance at least the two factors above (namely, the investment of financial resources and time to obtain the qualification of CP, and the sharp decline in the price of drugs included in CP) before making decisions for any products.

 

In addition, we continue to explore the field of comprehensive healthcare. Comprehensive healthcare is a general concept proposed according to the development of the times, social needs and changes in disease spectrum. According to the Outline of “Healthy China 2030” issued by Chinese government in October 2016, the total size of China’s health service industry will reach RMB 16 trillion (approximately 2.5 trillion) by 2030. This industry focuses on people’s daily life, aging and disease, pays attention to all kinds of risk factors and misunderstandings affecting health, calls for self-health management, and advocates the comprehensive care throughout the entire process of life. It covers all kinds of health-related information, products and services, as well as actions taken by various organizations to meet the health needs. We launched Noni enzyme, a natural, Xeronine-rich antioxidant food supplement at the end of 2018. We also launched wash-free sanitizers and masks in 2020 to address the market needs caused by COVID-19 in China. With the impact of COVID-19 continuing, masks and sanitizers have become long-time anti-epidemic materials. We have sufficient production capacity for medical masks, surgical masks and KN95 masks, which meets the personal needs for protection against the epidemic outbreak.

 

We will continue to optimize our product structure and actively respond to the current health needs of human beings.

 

Market Trends

 

As a generic drug company, we are presented with a huge domestic market. We believe that through further upgrades and better conformity with Chinese consistency evaluations based on European and American production standards, we will be able to export our products to overseas markets. In China’s market, we believe that in the future, cost management and control ability will gradually become an important factor in determining the competitiveness of generic pharmaceutical enterprises. Although price control leads to a decline in the profitability, the CP’s winning enterprise has a good chance of achieving price-for-volume to increase its market share and support its continuous innovation transformation. On a separate note, consumption upgrading in China drives the increase of optional consumption. With the improvement of residents’ quality of life, the healthcare demand is also changing. We believe that there is a large number of unmet demands in comprehensive healthcare and Internet healthcare sectors.

 

In addition, the Office of the State Council issued “Pilot Plan for Marketing Authorization Holders” on May 24, 2016, allowing eligible drug research and development institutions and scientific researchers to become Marketing Authorization Holders (“MAH”) by obtaining drug marketing authorization and drug approval numbers from the State Council. This policy uses a management model of separating drug marketing authorization and drug production licenses, thereby allowing an MAH to produce pharmaceuticals themselves or to consign production to other pharmaceutical manufacturers. This policy not only transits China’s production practices to meet the European and United States standards by separating drug approval and production qualifications, thereby changing the existing model of bundling drug approval numbers to pharmaceutical manufacturers in China, but also serves as a supplement to the ongoing consistency evaluations policy.

 

In general, demand for pharmaceutical products is still experiencing steady growth in China. We believe the ongoing generic drug consistency evaluations and reform of China’s drug production registration and review policies will have major effects on the future development of our industry and may change its business patterns. We will continue to actively adapt to the national policy guidance and further evaluate market conditions for our existing products, then adjust and compete in the market in order to optimize our development strategy.

 

 C: 

16

 

 

Results of Operations for the three months ended June 30, 2022

 

Revenue

 

Revenue decreased by 33.2% to $1.6 million for the three months ended June 30, 2022, as compared to $2.4 million for the three months ended June 30, 2021. This decrease was mainly due to the decline in the sales price of our main products caused by the promotion of China’s drug Centralized Procurement policy, as well as the negative impact on drug sales triggered by quarantine, lagged logistics and transportation, and drug-sales-control polices caused by the scattered outbreak COVID-19 in the second quarter of 2022 in China.

 

Set forth below are our revenues by product category in millions (USD) for the three months ended June 30, 2022 and 2021:

 

   Three Months Ended
June 30,
         
Product Category  2022   2021   Net Change  % Change  
CNS Cerebral & Cardio Vascular   0.55    0.89   -0.34  -38 %
Anti-Viral/ Infection & Respiratory   0.69    1.10   -0.41  -37 %
Digestive Diseases   0.11    0.09   0.02  22 %
Others   0.27    0.33   -0.06  -18 %

 

The most significant revenue decrease in terms of dollar amount was in our “Anti-Viral/ Infection & Respiratory” product category, which generated $0.69 million in sales revenue in the three months ended June 30, 2022 compared to $1.10 million for the same period a year ago, which is a decrease of $0.41 million. This decrease was mainly due to the decrease in sales of Cefaclor Dispersible Tablet, which was caused by the price and sales volume pressure from Centralized Procurement on this products.

 

Sales in “CNS Cerebral & Cardio Vascular” product category generated $0.55 million in sales revenue in the three months ended June 30, 2022 compared to $0.89 million for the same period a year ago, which is a decrease of $0.34 million. This decrease was mainly due to the decrease in sales of Alginic Sodium Diester Injection, which was caused by market volatility.

 

Our “Others” product category generated $0.27 million in sales revenue in the three months ended June 30, 2022, compared to $0.33 million in the same period in 2021. This decrease was mainly due to the decrease in sales of Vitamin B6 for injection, which was caused by market volatility.

 

Our “Digestive Diseases” product category sales was $0.11 million in the three months ended June 30, 2022, as compared to $0.09 million for the same period in 2021, the increase was mainly due to the increase in sales of Tiopronin that was caused by market volatility.

 

  Three Months Ended
June 30,
 
Product Category  2022   2021 
CNS Cerebral & Cardio Vascular   34%   37%
Anti-Viral/ Infection & Respiratory   43%   45%
Digestive Diseases   7%   4%
Others   16%   14%

 

For the three months ended June 30, 2022, revenue breakdown by product category showed certain changes to that of the same period in 2021. Sales of the “Anti-Viral/Infection & Respiratory” products category represented 43% and 45% of total sales in the three months ended June 30, 2022 and 2021, respectively. The “CNS Cerebral & Cardio Vascular” product category represented 34% and 37% of total revenue in the three months ended June 30, 2022 and 2021, respectively. The “Others” product category represented 16% and 14% of revenues in the three months ended June 30, 2022 and 2021, respectively. The “Digestive Diseases” product category represented 7% and 4% of total revenue in the three months ended June 30, 2022 and 2021, respectively.

 

 C: 

17

 

 

Cost of Revenue

 

For the three months ended June 30, 2022, our cost of revenue was $1.8 million, or 114.2% of total revenue, while cost of revenue was $2.4 million, or 97.1% of total revenue, for the same period in 2021. The increase in the proportion of cost to revenue in this quarter was mainly due to the fact that the amount of fixed cost does not decrease with the decline of revenue.

 

Gross Profit (Loss) and Gross Margin

 

Gross loss for the three months ended June 30, 2022 was $0.23 million, as compared to a gross profit of $0.07 million during the same period in 2021. For the three months ended June 30, 2022, we had a gross loss margin of 14.2% as compared to a gross profit margin of 2.9% during the same period in 2021.

 

Selling Expenses

 

Our selling expenses for the three months ended June 30, 2022 and 2021 were $0.27 million and $0.45 million, respectively. Selling expenses accounted for 16.5% of the total revenue in the three months ended June 30, 2022, as compared to 18.4% during the same period in 2021. As a result of the adjustment of many policies of healthcare reform, we had reduced the number of personnel and expenses to efficiently support our sales and the collection of accounts receivable.

 

General and Administrative Expenses

 

Our general and administrative expenses were $0.27 million and $0.33 million for the three months ended June 30, 2022 and 2021, respectively. It accounted for 16.9% and 13.7% of our total revenues in the three months ended June 30, 2022 and 2021, respectively.

 

Research and Development Expenses

 

Our research and development expenses for the three months ended June 30, 2022 were $0.02 million, as compared to $0.05 million in the same period in 2021. Research and development expenses accounted for 0.9% and 2.2% of our total revenues in the three months ended June 30, 2022 and 2021, respectively. These expenditures were mainly for the consistency evaluations of our existing products.

 

Bad Debt (Benefit)

 

Our bad debt benefit was $4,358 for the three months ended June 30, 2022, and $4,744 for the three months ended June 30, 2021.

 

In general, our normal customer credit or payment terms are 180 days. This has not changed in recent years. Due to the peculiar environment affecting the Chinese pharmaceutical market, deferred payments to pharmaceutical companies by state-owned hospitals and local medicine distributors are common.

 

The amount of accounts receivable that was past due (or the amount of accounts receivable that was more than 180 days old) was $0.05 million and $0.11 million as of June 30, 2022 and December 31, 2021, respectively.

 

The following table illustrates our accounts receivable aging distribution in terms of percentage of total accounts receivable as of June 30, 2022 and December 31, 2021:

 

   June 30,   December 31, 
   2022   2021 
1 - 180 Days   1.51%   2.68%
180 - 360 Days   0.29%   0.17%
360 - 720 Days   0.10%   0.41%
> 720 Days   98.10%   96.74%
Total   100.00%   100.00%

 

Our bad debt allowance estimate practice is that we consider accounts receivable balances aged within 180 days current, except for any individual uncollectible account assessed by management. We account for the following respective percentage as bad debt allowance based on age of the accounts receivables: 10% of accounts receivable that is between 180 days and 365 days old, 70% of accounts receivable that is between 365 days and 720 days old, and 100% of accounts receivable that is greater than 720 days old.

 

 C: 

18

 

 

We recognize bad debt expenses per actual write-offs as well as changes of allowance for doubtful accounts. To the extent that our current allowance for doubtful accounts is higher than that of the previous period, we recognize a bad debt expense for the difference during the current period, and when the current allowance is lower than that of the previous period, we recognize a bad debt credit for the difference. The allowance for doubtful account balances were $17.4 million and $18.2 million as of June 30, 2022 and December 31, 2021, respectively. The changes in the allowances for doubtful accounts during the three months ended June 30, 2022 and 2021 were as follows:

 

   For the Three Months Ended 
   June 30, 
   2022   2021 
Balance, Beginning of Period   18,384,642   $18,013,339 
Bad debt expense (benefits)   (4,358)   (4,744)
Foreign currency translation adjustment   (995,400)   308,395 
Balance, End of Period   17,384,884   $18,316,990 

 

Loss from Operations

 

Our operating loss for the three months ended June 30, 2022 was $0.78 million, compared to an operating loss of $0.75 million during the same period in 2021.

 

Net Interest Expense

 

Net interest expense for the three months ended June 30, 2022 was $0.11 million, as compared to $0.07 million for the same period in 2021.

 

Net Loss

 

Net Loss for the three months ended June 30, 2022 was $0.89 million, as compared to a net loss of $0.82 million for the same period a year ago. The increase in net loss was mainly the result of decreased revenue and increased cost in this period.

 

Loss per basic and diluted common share were both $0.02 for the three months ended June 30, 2022 and 2021, respectively.

 

The number of basic and diluted weighted-average outstanding shares used to calculate loss per share was 48,488,671 and 45,579,557 for the three months ended June 30, 2022 and 2021.

 

Results of operations for the six months ended June 30, 2022

 

Revenue

 

Revenue was $3.2 million and $4.8 million for the six months ended June 30, 2022 and 2021, respectively. This decrease was mainly due to the decline in the sales price of our main products caused by the promotion of China’s drug Centralized Procurement policy, as well as the negative impact on drug sales triggered by quarantine, lagged logistics and transportation, and drug-sales-control polices caused by the scattered outbreak COVID-19 in the first half of 2022 in China.

 

 C: 

19

 

 

Set forth below are our revenues by product category in millions (USD) for the six months ended June 30, 2022 and 2021, respectively:

 

   Six Months Ended
June 30,
         
Product Category  2022   2021   Net Change   % Change 
CNS Cerebral & Cardio Vascular   0.84    1.39    -0.55    -40%
Anti-Viral/ Infection & Respiratory   1.74    2.59    -0.85    -33%
Digestive Diseases   0.17    0.17    0.00    2%
Others   0.47    0.62    -0.15    -24%

 

The most significant revenue decrease in terms of dollar amount was our “Anti-Viral/ Infection & Respiratory” product category, which generated $1.74 million in sales revenue in the six months ended June 30, 2022 compared to $2.59 million in the same period a year ago, represented a decrease of $0.85 million that was mainly caused by the decrease in sales of Cefaclor Dispersible Tablets.

 

Sales of our “CNS Cerebral & Cardio Vascular” was $0.84 million in sales revenue in the six months ended June 30, 2022, compared to $1.39 million in the same period a year ago, which represented a decrease of $0.55 million. This decrease was mainly due to sales decrease of Alginic Sodium Diester Injection.

 

Sales of “Others” product category generated $0.47 million and $0.62 million in sales revenue in the six months ended June 30, 2022 and 2021, respectively. The decrease was mainly caused by the decrease in sales of Vitamin B6.

 

Sales of our “Digestive Diseases” product category generated $0.17 million in each of the six months ended June 30, 2022 and 2021, respectively.

 

  Six Months Ended
June 30,
 
Product Category  2022   2021 
CNS Cerebral & Cardio Vascular   26%   29%
Anti-Viral/ Infection & Respiratory   54%   54%
Digestive Diseases   5%   4%
Other   15%   13%

  

For the six months ended June 30, 2022, revenue breakdown by product category remained similar to that of the same period in 2021. Sales of the “Anti-Viral/Infection & Respiratory” products category represented both 54% of total sales in the six months ended June 30, 2022 and 2021. The “CNS Cerebral & Cardio Vascular” category represented 26% and 29% of total revenue in the six months ended June 30, 2022 and 2021, respectively. The “Others” category represented 15% and 13% of revenues in the six months ended June 30, 2022 and 2021, respectively. And the “Digestive Diseases” category represented 5% and 4% of total revenue in the six months ended June 30, 2022 and 2021, respectively.

 

Cost of Revenue

 

For the six months ended June 30, 2022, our cost of revenue was $3.6 million, or 112.4% of total revenue, comparing to $4.4 million, or 92.8% of total revenue, in the same period in 2021. The increase in the proportion of cost to revenue in this period was mainly due to the fact that the amount of fixed cost does not decrease with the decline of revenue.

 

Gross Profit (Loss) and Gross Margin

 

Gross loss for the six months ended June 30, 2022 was $0.4 million, compared to $0.3 million in the same period in 2021. Our gross loss margin in the six months ended June 30, 2022 was 12.4% compared to a gross profit margin of 7.2% in the same period in 2021.

 

 C: 

20

 

 

Selling Expenses

 

Our selling expenses for the six months ended June 30, 2022 and 2021 were $0.4 million and $0.8 million, respectively. Selling expenses accounted for 13.9% of the total revenue in the six months ended June 30, 2022 compared to 17.3% in the same period in 2021. 

 

General and Administrative Expenses

 

Our general and administrative expenses for the six months ended June 30, 2022 were $0.8 million, as compared to $0.7 million in the same period in 2021. Our general and administrative expenses accounted for 24.5% and 15.5% of our total revenues in the six months ended June 30, 2022 and 2021, respectively.

 

Research and Development Expenses

 

Our research and development expenses for the six months ended June 30, 2022 and 2021 were $0.07 million and $0.24 million, respectively. The decrease in research and development costs is mainly due to the fact that most of the consistency evaluation of our key product, Candesartan, was completed at the end of last year.

 

Bad Debt Benefit

 

Our bad debt benefit was $9,879 for the six months ended June 30, 2022, and $12,965 for the six months ended June 30, 2021.

 

The changes in the allowances for doubtful accounts during the six months ended June 30, 2022 and 2021 were as follows:

 

   For the Six Months Ended 
   June 30, 
   2022   2021 
Balance, Beginning of Period  $18,312,707   $18,150,493 
Bad debt expense (benefits)   (9,879)   (12,965)
Foreign currency translation adjustment   (917,944)   179,462 
Balance, End of Period  $17,384,884   $18,316,990 

  

Loss from Operations

 

Our operating loss for the six months ended June 30, 2022 was $1.7 million, compared to $1.4 million in the same period in 2021.

 

Net Interest Expense

 

Net interest expense for the six months ended June 30, 2022 was $0.23 million, compared to $0.14 million for the same period in 2021.

 

Net Loss

 

Net loss for the six months ended June 30, 2022 was $1.9 million, as compared to net loss of $1.6 million for the six months ended June 30, 2021. The decrease of net loss was mainly a result of decreased revenue and increased cost in this period.

 

For the six months ended June 30, 2022, loss per basic and diluted common share was $0.04, compared to loss per basic and diluted common share of $0.03 for the six months ended June 30, 2021.

 

The number of basic and diluted weighted-average outstanding shares used to calculate loss per share was 47,931,487 for the six months ended June 30, 2022, and 45,579,557 for the six months ended June 30, 2021.

 

Liquidity and Capital Resources

 

Our principal source of liquidity is cash generated from operations, bank lines of credit and the Convertible Note Payable. Currently the Company has not witnessed or expected to encounter any difficulties to refinance those line of credit this year. In addition to the aggregated advance of $1,425,123 from our CEO as of December 31,2021, we received some temporary advances from and made several repayments to her in the three months ended June 30, 2022. As of June 30, 2022, the aggregated advance from our CEO was $1,147,252 for use in operations. Our cash and cash equivalents were $2.2 million, representing 12.5% of our total assets, as of June 30, 2022, as compared to $4.9 million, representing 21.5% of our total assets as of December 31, 2021. All of the $2.2 million of cash and cash equivalents as of June 30, 2022 are considered to be reinvested indefinitely in the Company’s Chinese subsidiary, Helpson and are not expected to be available for payment of dividends or for other payments to its parent company or to its shareholders.

 

The Company obtained various lines of credit in details described under Note 7 to its condensed consolidated financial statements contained in this report which is incorporated by reference herein.

 

 C: 

21

 

  

The Company issued a convertible note to an institutional accredited investor as disclosed in Note 8 to the condensed consolidated financial statements contained in this report which is incorporated by reference herein.

 

Although the Company obtained the convertible note and additional lines of credit in 2021, there can be no assurance that the Company will be able to achieve its future strategic goal to accelerate the launch of nutrition products. This raises substantial doubt about the Company’s ability to continue as a going concern. Although our Chairperson and Chief Executive Officer had advanced funds for working capital during the year ended December 31, 2021, there can be no assurances that this will be the case in the future. We may seek additional debt or equity financing as necessary when we believe the market conditions are the most advantageous to us and/or require us to reduce certain discretionary spending, which could have a material adverse effect on our ability to achieve our business objectives.  There can be no assurance that any additional financing will be available on acceptable terms, if at all.

 

Operating Activities

 

Net cash used by operating activities was $1.2 million in the six months ended June 30, 2022, compared to net cash flow of $0.4 million generated in operating activities in the same period in 2021.

 

As of June 30, 2022, our net accounts receivable was $0.3 million, compared to $0.7 million as of December 31, 2021.

 

Total inventory was $3.5 million and $3.3 million as of June 30, 2022 and December 31, 2021, respectively.

 

Investing Activities

 

There was $0.18 million cash flow under investing activities during the six months ended June 30, 2022, compared to $ 0.02 million for the same period in 2021. Investing activities in the first half of 2022 was mainly for the purchase of equipment.

 

Financing Activities

 

Cash flow used in financing activities was $1.13 million in the six months ended June 30, 2022; compared to $0.40 million cash generated in the same period in 2021. The financing activities cash flow used in this period was mainly for the repayment of loans.

 

According to relevant PRC laws, companies registered in the PRC, including our PRC subsidiary, Helpson, are required to allocate at least ten percent (10%) of their after-tax net income, as determined under the accounting standards and regulations in the PRC, to statutory surplus reserve accounts until the reserve account balances reach fifty percent (50%) of the companies’ registered capital prior to their remittance of funds out of the PRC.  Allocations to these reserves and funds can only be used for specific purposes and are not transferrable to the parent company in the form of loans, advances or cash dividends.  As of June 30, 2022, and December 31, 2021, Helpson’s net assets totaled $1,511,000 and $3,447,000, respectively.  Due to the restriction on dividend distribution to overseas shareholders, the amount of Helpson’s net assets that was designated for general and statutory capital reserves, and thus could not be transferred to our parent company as cash dividends, was 50% of Helpson’s registered capital, which is both $8,145,000 as of June 30, 2022 and December 31, 2021, respectively. Since the amount that Helpson must set aside for the statutory surplus fund only accounts for 539% and 236%, respectively, of its total net assets, this reserve does not have a major impact on our liquidity.  There were no allocations to the statutory surplus reserve accounts during the six months ended June 30, 2022.

 

The Chinese government also imposes controls on the conversion of RMB into foreign currencies and the remittance of currencies out of China. Our businesses and assets are primarily denominated in RMB. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires the submission of a payment application form together with certain invoices and executed contracts. The currency exchange control procedures imposed by Chinese government authorities may restrict Helpson, our Chinese subsidiary, from transferring its net assets to our parent company through loans, advances or cash dividends.

 

Off-Balance Sheet Arrangements

 

As of June 30, 2022, we did not have any off-balance sheet arrangements.

 

Critical Accounting Policies

 

Management’s discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles. Our financial statements reflect the selection and application of accounting policies which require management to make significant estimates and judgments. The discussion of our critical accounting policies contained in Note 1 to our consolidated financial statements, “Organization and Significant Accounting Policies”, is incorporated herein by reference.

 

 C: 

22

 

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this item.

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

Our Chief Executive Officer and interim Chief Financial Officer, evaluated the effectiveness of our “disclosure controls and procedures” (as defined in the Securities Exchange Act of 1934 (the “Exchange Act”) Rules 13a-15(e) or 15d-15(e)) as of the end of the period covered by this quarterly report. Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act (a) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and (b) is accumulated and communicated to management, including our Chief Executive Officer and interim Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

 

Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives as described above. Based on this evaluation, our Chief Executive Officer and interim Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of June 30, 2022 to satisfy the objectives for which they are intended. This was due to the material weakness in our internal control over financial reporting, with respect to our lack of accounting financial reporting personnel who were knowledgeable in U.S. GAAP, as disclosed in our annual report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on March 30, 2022. Notwithstanding the aforementioned material weakness, management has concluded that our condensed consolidated financial statements included in this report are fairly stated in all material respects in accordance with U.S. GAAP for each period presented herein.

 

Changes in Internal Controls over Financial Reporting

 

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 C: 

23

 

  

PART II OTHER INFORMATION

 

Item 6. Exhibits

 

The exhibits required by this item are set forth in the Exhibit Index attached hereto.

  

 C: 

24

 

 

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 thereunto duly authorized. 

 

  CHINA PHARMA HOLDINGS, INC.
   
Date: August 11, 2022 By: /s/ Zhilin Li
    Name: Zhilin Li
    Title: President and Chief Executive Officer
    (principal executive officer)
   
Date: August 11, 2022 By: /s/ Zhilin Li
    Name: Zhilin Li
    Title: Interim Chief Financial Officer
    (principal financial officer and
principal accounting officer)

 

 C: 

25

 

 

EXHIBIT INDEX

 

No.   Description
     
31.1 -   Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
31.2 -   Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
32.1 -   Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
101.INS -   Inline XBRL Instance Document
     
101.SCH -   Inline XBRL Taxonomy Extension Schema Document
     
101.CAL -   Inline XBRL Taxonomy Extension Calculation Linkbase Document
     
101.DEF -   Inline XBRL Taxonomy Extension Definition Linkbase Document
     
101.LAB -   Inline XBRL Taxonomy Extension Label Linkbase Document
     
101.PRE -   Inline XBRL Taxonomy Extension Presentation Linkbase Document
     
104 -   Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

 

26

 
 i   i   i   i   i   i   i   i   i   i   i   i 0.02  i 0.02  i 0.03  i 0.04  i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i   i false  i --12-31  i Q2  i 0001106644 0001106644 2022-01-01 2022-06-30 0001106644 2022-08-10 0001106644 2022-06-30 0001106644 2021-12-31 0001106644 2022-04-01 2022-06-30 0001106644 2021-04-01 2021-06-30 0001106644 2021-01-01 2021-06-30 0001106644 us-gaap:CommonStockMember 2020-12-31 0001106644 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001106644 us-gaap:RetainedEarningsMember 2020-12-31 0001106644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001106644 2020-12-31 0001106644 us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001106644 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001106644 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001106644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-03-31 0001106644 2021-01-01 2021-03-31 0001106644 us-gaap:CommonStockMember 2021-03-31 0001106644 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001106644 us-gaap:RetainedEarningsMember 2021-03-31 0001106644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001106644 2021-03-31 0001106644 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001106644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0001106644 us-gaap:CommonStockMember 2021-06-30 0001106644 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001106644 us-gaap:RetainedEarningsMember 2021-06-30 0001106644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001106644 2021-06-30 0001106644 us-gaap:CommonStockMember 2021-12-31 0001106644 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001106644 us-gaap:RetainedEarningsMember 2021-12-31 0001106644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001106644 us-gaap:CommonStockMember 2022-01-01 2022-03-31 0001106644 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-03-31 0001106644 2022-01-01 2022-03-31 0001106644 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0001106644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-03-31 0001106644 us-gaap:CommonStockMember 2022-03-31 0001106644 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0001106644 us-gaap:RetainedEarningsMember 2022-03-31 0001106644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-03-31 0001106644 2022-03-31 0001106644 us-gaap:CommonStockMember 2022-04-01 2022-06-30 0001106644 us-gaap:AdditionalPaidInCapitalMember 2022-04-01 2022-06-30 0001106644 us-gaap:RetainedEarningsMember 2022-04-01 2022-06-30 0001106644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-04-01 2022-06-30 0001106644 us-gaap:CommonStockMember 2022-06-30 0001106644 us-gaap:AdditionalPaidInCapitalMember 2022-06-30 0001106644 us-gaap:RetainedEarningsMember 2022-06-30 0001106644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-06-30 0001106644 cphi:OnnyInvestmentLimitedMember 2022-06-30 0001106644 cphi:HainanHelpsonMedicalBiotechnologyCoLtdMember 2022-06-30 0001106644 cphi:HainanHelpsonMedicalBiotechnologyCoLtdMember 2005-05-25 0001106644 pf0:ManagementMember 2022-06-30 0001106644 2021-01-01 2021-12-31 0001106644 pf0:MinimumMember cphi:PermitOfLandUseMember 2022-01-01 2022-06-30 0001106644 pf0:MaximumMember cphi:PermitOfLandUseMember 2022-01-01 2022-06-30 0001106644 pf0:MinimumMember us-gaap:BuildingMember 2022-01-01 2022-06-30 0001106644 pf0:MaximumMember us-gaap:BuildingMember 2022-01-01 2022-06-30 0001106644 pf0:MinimumMember us-gaap:PropertyPlantAndEquipmentMember 2022-01-01 2022-06-30 0001106644 pf0:MaximumMember us-gaap:PropertyPlantAndEquipmentMember 2022-01-01 2022-06-30 0001106644 pf0:MinimumMember cphi:MotorVehicleMember 2022-01-01 2022-06-30 0001106644 pf0:MaximumMember cphi:MotorVehicleMember 2022-01-01 2022-06-30 0001106644 pf0:MinimumMember us-gaap:OfficeEquipmentMember 2022-01-01 2022-06-30 0001106644 pf0:MaximumMember us-gaap:OfficeEquipmentMember 2022-01-01 2022-06-30 0001106644 pf0:ChiefExecutiveOfficerMember 2022-06-30 0001106644 pf0:ManagementMember 2019-07-08 0001106644 pf0:ManagementMember 2022-04-01 2022-06-30 0001106644 pf0:ManagementMember 2021-04-01 2021-06-30 0001106644 pf0:ManagementMember 2022-01-01 2022-06-30 0001106644 pf0:ManagementMember 2021-01-01 2021-06-30 0001106644 pf0:ChiefExecutiveOfficerMember 2021-12-31 0001106644 2020-04-01 2020-04-30 0001106644 2020-06-01 2020-06-30 0001106644 2020-06-30 0001106644 2022-06-22 0001106644 cphi:BankOfCommunicationsMember 2022-04-01 2022-06-30 0001106644 cphi:BankOfCommunicationsMember 2021-04-01 2021-06-30 0001106644 cphi:BankOfCommunicationsMember 2022-01-01 2022-06-30 0001106644 cphi:BankOfCommunicationsMember 2021-01-01 2021-06-30 0001106644 cphi:ChinaCITICBankMember 2022-01-01 2022-06-30 0001106644 cphi:ChinaCITICBankMember 2022-04-01 2022-06-30 0001106644 cphi:ChinaCITICBankMember 2021-04-01 2021-06-30 0001106644 cphi:BankOfChinaMember 2021-09-18 2021-09-18 0001106644 cphi:BankOfChinaMember 2022-04-01 2022-06-30 0001106644 cphi:BankOfChinaMember 2021-04-01 2021-06-30 0001106644 cphi:BankOfChinaMember 2022-01-01 2022-06-30 0001106644 cphi:BankOfChinaMember 2021-01-01 2021-06-30 0001106644 us-gaap:UnusedLinesOfCreditMember 2022-06-30 0001106644 2021-11-17 2021-11-17 0001106644 2021-11-17 0001106644 2021-11-19 2021-11-19 0001106644 2022-03-15 2022-03-21 0001106644 2022-03-21 0001106644 2022-03-23 0001106644 2022-03-25 2022-03-30 0001106644 2022-03-30 0001106644 2022-06-09 2022-06-09 0001106644 2022-06-09 0001106644 2022-06-13 0001106644 us-gaap:FairValueInputsLevel1Member 2022-06-30 0001106644 us-gaap:FairValueInputsLevel2Member 2022-06-30 0001106644 us-gaap:FairValueInputsLevel3Member 2022-06-30 0001106644 us-gaap:FairValueInputsLevel1Member 2021-12-31 0001106644 us-gaap:FairValueInputsLevel2Member 2021-12-31 0001106644 us-gaap:FairValueInputsLevel3Member 2021-12-31 0001106644 2021-12-27 0001106644 pf0:MinimumMember 2021-12-27 0001106644 pf0:MaximumMember 2021-12-27 0001106644 cphi:TwoThousandTenIncentivePlanMember 2022-01-01 2022-06-30 0001106644 us-gaap:SalesRevenueNetMember 2022-01-01 2022-06-30 0001106644 us-gaap:AccountsReceivableMember cphi:CustomerOneMember 2022-01-01 2022-06-30 0001106644 us-gaap:AccountsReceivableMember cphi:CustomerTwoMember 2022-01-01 2022-06-30 0001106644 us-gaap:AccountsReceivableMember cphi:CustomerThreeMember 2022-01-01 2022-06-30 0001106644 cphi:RawMaterialPurchasesMember 2022-01-01 2022-06-30 0001106644 cphi:RawMaterialPurchasesMember cphi:SuppliersOneMember 2022-01-01 2022-06-30 0001106644 cphi:RawMaterialPurchasesMember cphi:SuppliersTwoMember 2022-01-01 2022-06-30 0001106644 cphi:RawMaterialPurchasesMember cphi:SuppliersThreeMember 2022-01-01 2022-06-30 0001106644 cphi:SalesRevenuesNetOneMember 2022-01-01 2022-06-30 0001106644 cphi:SalesRevenuesNetTwoMember 2022-01-01 2022-06-30 0001106644 cphi:SalesRevenuesNetThreeMember 2022-01-01 2022-06-30 0001106644 us-gaap:SalesRevenueNetMember 2021-01-01 2021-06-30 0001106644 us-gaap:AccountsReceivableMember cphi:CustomerOneMember 2021-01-01 2021-06-30 0001106644 us-gaap:AccountsReceivableMember cphi:CustomerTwoMember 2021-01-01 2021-06-30 0001106644 us-gaap:AccountsReceivableMember cphi:CustomerThreeMember 2021-01-01 2021-06-30 0001106644 cphi:RawMaterialPurchasesMember 2021-01-01 2021-06-30 0001106644 cphi:RawMaterialPurchasesMember cphi:SuppliersOneMember 2021-01-01 2021-06-30 0001106644 cphi:RawMaterialPurchasesMember cphi:SuppliersTwoMember 2021-01-01 2021-06-30 0001106644 cphi:SalesRevenuesNetOneMember 2021-01-01 2021-06-30 0001106644 cphi:SalesRevenuesNetTwoMember 2021-01-01 2021-06-30 0001106644 cphi:SalesRevenuesNetThreeMember 2021-01-01 2021-06-30 0001106644 us-gaap:SubsequentEventMember 2022-08-03 2022-08-03 0001106644 us-gaap:SubsequentEventMember 2022-08-04 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure iso4217:CNY

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-Q’ Filing    Date    Other Filings
12/31/29
12/15/23
7/9/23
12/31/22
12/21/22
12/15/22
9/18/22
9/2/22
Filed on:8/11/22
8/10/22
8/4/22
8/3/22
For Period end:6/30/22
6/22/228-K
6/21/22
6/13/22
6/9/22
3/31/2210-Q
3/30/2210-K
3/23/22
3/21/22
1/1/22
12/31/2110-K
12/27/21DEF 14A
11/19/21
11/17/218-K
10/25/21
9/18/21
6/30/2110-Q
6/25/21
6/21/21
3/31/2110-Q
1/1/21
12/15/20
6/30/2010-Q
12/19/198-K,  DEF 14A
12/15/19
10/17/19
7/8/19
12/31/1710-K
12/22/17
5/24/16
12/22/108-K,  DEF 14A
11/12/10DEF 14A,  DEFA14A
6/21/05
6/12/05
5/25/05
 List all Filings 


1 Subsequent Filing that References this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

10/24/22  China Pharma Holdings, Inc.       S-8        10/24/22    4:184K                                   EdgarAgents LLC/FA
Top
Filing Submission 0001213900-22-046859   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Copyright © 2024 Fran Finnegan & Company LLC – All Rights Reserved.
AboutPrivacyRedactionsHelp — Fri., Mar. 29, 7:18:54.1am ET