XIANYANG, China, April 13, 2017 /PRNewswire/ - Biostar
Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or "the Company"),
a PRC-based manufacturer and marketer of pharmaceutical and health
supplement products in China for a
variety of diseases and conditions, today announced its financial
results for the year ended December 31,
2016.
During the fiscal year of 2016, the Company recognized:
- Net sales of $2.4 million, a
decrease of approximately $24.7
million, or 91.2% as compared to the year 2015.
- Gross profit decreased by approximately $10.2 million, or 91.8% as compared to the year
2015.
- Net loss of $5.7 million as
compared to net loss of $25.1 million
for the year 2015.
- R&D expenses of approximately $1.1
million, as compared to $4.0
million for the year 2015.
The Company had no sales on all Aoxing Pharmaceutical Products
in the year ended December 31, 2016
as Aoxing Pharmaceutical temporarily stopped production to conduct
maintenance of its production lines in order to renew its GMP
certificates which is expected to be renewed in the first half of
2017 at which time the production will resume. Sales of Shaanxi
Weinan's products also decreased substantially during the year
ended December 31, 2016 due to
replacing production equipment to comply with government's
environmental protection requirement. The Company currently
anticipates that the production of Shaanxi Weinan products will
resume in the first half of 2017. The temporary suspension of
production has materially negatively affected the Company's
operating results; as a result, there may be substantial doubt
regarding the Company's ability to continue as a going
concern.
*The Company's Consolidated Balance Sheets, Statement of
Operations, and Cash Flows can be found on Form 10-K filed with the
U.S. Securities and Exchange Commission for further information
regarding the Company's results of operations.
About Biostar Pharmaceuticals, Inc.
Biostar Pharmaceuticals, Inc., through its wholly owned
subsidiary and controlled affiliate in China, develops, manufactures, and markets
pharmaceutical and health supplement products for a variety of
diseases and conditions. For more information please visit:
http://www.biostarpharmaceuticals.com.
Safe Harbor Relating to the Forward-Looking
Statements
Certain statements in this release concerning our future growth
prospects are forward-looking statements, within the meaning of
Section 27A of the U.S. Securities Act of 1933, as amended, and
Section 21E of the U.S. Securities Exchange Act of 1934, as
amended, which involve a number of risks and uncertainties that
could cause actual results to differ materially from those in such
forward-looking statements. The company uses words and phrases such
as "guidance," "forecasted," "projects," "is expected," "remain
confident," "will" and similar expressions to identify
forward-looking statements in this press release, including
forward-looking statements. Undue reliance should not be placed on
forward-looking information. Forward-looking information is based
on current expectations, estimates and projections that involve a
number of risks, which could cause actual results to vary and in
some instances to differ materially from those anticipated by
Biostar and described in the forward-looking information contained
in this news release. The risks and uncertainties relating to these
statements include, but are not limited to, risks and uncertainties
regarding the Company's ability to complete the certification
renewal process in the time frame currently anticipated, the
Company's ability to resume production as anticipated, its ability
to sustain its sales effort going forward, its ability promptly and
effectively to return to the normal production levels, its ability
to retain existing and retain new customers for its products, its
ability to achieve the projected sales through the efforts of the
call center, to complete the contemplated clinical trials and
capitalize on such opportunities, the Company's ability to recover
its sales and revenue following the repair and maintenance for GMP
certification renewal, the state of consumer confidence and market
demand or the Company's products, success of our investments, risks
and uncertainties regarding fluctuations in earnings, our ability
to sustain our previous levels of profitability including on
account of our ability to manage growth, intense competition, wage
increases in China, our ability to
attract and retain highly skilled professionals, time and cost
overruns on fixed-price, fixed-time frame contracts, client
concentration, our ability to successfully complete and integrate
potential acquisitions, withdrawal of governmental fiscal
incentives, political instability and regional conflicts and legal
restrictions on raising capital or acquiring companies outside
China. Additional risks that could
affect our future operating results are more fully described in our
United States Securities and Exchange Commission filings including
our most recent Annual Report on Form 10-K for the year ended
December 31, 2016, and other
subsequent filings. These filings are available
at www.sec.gov. We may, from time to time, make additional
written and oral forward-looking statements, including statements
contained in our filings with the Securities and Exchange
Commission and our reports to shareholders. We do not undertake to
update any forward-looking statements that may be made from time to
time by or on our behalf.
Investor Relations Contact
Please send questions or comments to:
Biostar Pharmaceuticals, Inc.
Investor Relations Coordinator
+86-29-3368-6638
office@aoxing-group.com
http://www.biostarpharmaceuticals.com
|
BIOSTAR
PHARMACEUTICALS, INC.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
AS OF DECEMBER
31,
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
173,290
|
|
|
$
|
38,898
|
|
Accounts receivable,
net
|
|
|
6,741,454
|
|
|
|
15,814,880
|
|
Inventories
|
|
|
166,564
|
|
|
|
234,660
|
|
Deposits and other
receivables
|
|
|
171,062
|
|
|
|
2,591
|
|
Value-added tax
receivable
|
|
|
41,462
|
|
|
|
-
|
|
Income tax
recoverable
|
|
|
71,292
|
|
|
|
76,280
|
|
Total Current
Assets
|
|
|
7,365,124
|
|
|
|
16,167,309
|
|
|
|
|
|
|
|
|
|
Non-current
Assets
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
21,148,284
|
|
|
|
16,099,958
|
|
Deferred tax assets,
net
|
|
|
2,515,272
|
|
|
|
5,406,593
|
|
Property and
equipment, net
|
|
|
5,866,612
|
|
|
|
6,810,933
|
|
Intangible assets,
net
|
|
|
5,607,146
|
|
|
|
6,878,787
|
|
Total Non-Current
Assets
|
|
|
35,137,314
|
|
|
|
35,196,271
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
42,502,438
|
|
|
$
|
51,363,580
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Accounts and other
payables
|
|
$
|
2,842,142
|
|
|
$
|
4,153,411
|
|
Short-term bank
loans
|
|
|
2,325,643
|
|
|
|
2,773,199
|
|
Valued-added tax
payable
|
|
|
-
|
|
|
|
112,629
|
|
Warrants
liability
|
|
|
455,476
|
|
|
|
59,202
|
|
Total Current
Liabilities
|
|
|
5,623,261
|
|
|
|
7,098,441
|
|
|
|
|
|
|
|
|
|
Commitment and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value, 100,000,000 shares authorized, 2,637,188 issued and
outstanding as of December 31, 2016 and 2,210,913 shares issued and
outstanding as of
December 31, 2015
|
|
|
2,637
|
|
|
|
2,210
|
|
Additional paid-in
capital
|
|
|
31,382,467
|
|
|
|
30,316,774
|
|
Statutory
reserve
|
|
|
7,354,413
|
|
|
|
7,354,413
|
|
(Accumulated deficit)
Retained earnings
|
|
|
(2,540,991)
|
|
|
|
3,157,394
|
|
Accumulated other
comprehensive income
|
|
|
680,651
|
|
|
|
3,434,348
|
|
Total Stockholders'
Equity
|
|
|
36,879,177
|
|
|
|
44,265,139
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
42,502,438
|
|
|
$
|
51,363,580
|
|
BIOSTAR
PHARMACEUTICALS, INC.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
AND COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
FOR THE YEARS
ENDED
DECEMBER 31,
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
Sales, net
|
|
$
|
2,384,492
|
|
|
$
|
27,129,609
|
|
Cost of
sales
|
|
|
1,469,318
|
|
|
|
16,025,544
|
|
Gross
profit
|
|
|
915,174
|
|
|
|
11,104,065
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Advertising
expenses
|
|
|
-
|
|
|
|
3,803,780
|
|
Selling
expenses
|
|
|
1,169,416
|
|
|
|
4,835,398
|
|
General and
administrative expenses
|
|
|
2,431,462
|
|
|
|
4,648,902
|
|
Research and
development expenses
|
|
|
1,144,044
|
|
|
|
4,020,909
|
|
Impairment loss on
intangible assets
|
|
|
-
|
|
|
|
2,973,796
|
|
(Recovery of)
provision for doubtful accounts receivable
|
|
|
(265,486)
|
|
|
|
4,666,730
|
|
Impairment loss on loan
receivables
|
|
|
-
|
|
|
|
8,845,999
|
|
Impairment loss on
prepaid lease payment
|
|
|
-
|
|
|
|
1,066,115
|
|
Total
operating expenses
|
|
|
4,479,436
|
|
|
|
34,861,629
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(3,564,262)
|
|
|
|
(23,757,564)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
1,165
|
|
|
|
8,895
|
|
Interest
expense
|
|
|
(206,195)
|
|
|
|
(283,596)
|
|
Fair value adjustment
on warrants
|
|
|
227,106
|
|
|
|
324,093
|
|
Other income (expense),
net
|
|
|
496,855
|
|
|
|
(84,544)
|
|
Total
other income (expense), net
|
|
|
518,931
|
|
|
|
(35,152)
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
(3,045,331)
|
|
|
|
(23,792,716)
|
|
|
|
|
|
|
|
|
|
Provision for income
tax
|
|
|
2,653,054
|
|
|
|
1,319,846
|
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
$
|
(5,698,385)
|
|
|
$
|
(25,112,562)
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(2,753,697)
|
|
|
|
(2,957,650)
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
$
|
(8,452,082)
|
|
|
$
|
(28,070,212)
|
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(2.5)
|
|
|
$
|
(11.4)
|
|
Diluted
|
|
$
|
(2.5)
|
|
|
$
|
(11.4)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
2,297,336
|
|
|
|
2,210,913
|
|
Diluted
|
|
|
2,297,336
|
|
|
|
2,210,913
|
|
BIOSTAR
PHARMACEUTICALS, INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
FOR THE YEARS
ENDED
DECEMBER 31,
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net loss
|
|
$
|
(5,698,385)
|
|
|
$
|
(25,112,562)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Deferred income tax
expense
|
|
|
2,653,054
|
|
|
|
1,332,951
|
|
Depreciation and
amortization
|
|
|
1,142,538
|
|
|
|
2,320,195
|
|
(Recovery of) provision
for doubtful accounts
|
|
|
(265,486)
|
|
|
|
4,666,730
|
|
Recognition of deferred
research and development expenses
|
|
|
-
|
|
|
|
4,020,909
|
|
Impairment loss on
intangible assets
|
|
|
-
|
|
|
|
2,973,796
|
|
Impairment loss on loan
receivable
|
|
|
-
|
|
|
|
8,845,999
|
|
Impairment loss on
prepaid lease payment
|
|
|
-
|
|
|
|
1,066,115
|
|
Loss on disposal of
property, plant and equipment
|
|
|
-
|
|
|
|
738,834
|
|
Warrants
liability
|
|
|
(227,106)
|
|
|
|
(324,093)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
8,669,935
|
|
|
|
5,448,178
|
|
Inventories
|
|
|
55,148
|
|
|
|
420,584
|
|
Deposits and other
receivables
|
|
|
(176,293)
|
|
|
|
392,425
|
|
Accounts payable and
accrued expenses
|
|
|
(1,087,350)
|
|
|
|
(602,958)
|
|
Value-added tax
payable
|
|
|
(153,390)
|
|
|
|
(309,890)
|
|
Net cash provided
by operating activities
|
|
|
4,912,665
|
|
|
|
5,877,213
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
|
-
|
|
|
|
(59,475)
|
|
Deposit paid for intended
acquisitions
|
|
|
(6,378,136)
|
|
|
|
(8,122,236)
|
|
Receipt from loan
receivable
|
|
|
-
|
|
|
|
804,182
|
|
Net cash used in
investing activities
|
|
|
(6,378,136)
|
|
|
|
(7,377,529)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Repayment of
short-term bank loans
|
|
|
(278,315)
|
|
|
|
(160,836)
|
|
Proceeds from stock
issuance and warrants
|
|
|
1,689,500
|
|
|
|
-
|
|
Net cash provided
by (used in) financing activities
|
|
|
1,411,185
|
|
|
|
(160,836)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
188,678
|
|
|
|
14,896
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
134,392
|
|
|
|
(1,646,256)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning balance
|
|
|
38,898
|
|
|
|
1,685,154
|
|
Cash and cash
equivalents, ending balance
|
|
$
|
173,290
|
|
|
$
|
38,898
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES:
|
|
|
|
|
|
|
|
|
Interest
received
|
|
$
|
1,264
|
|
|
$
|
8,896
|
|
Interest
paid
|
|
$
|
(37,807)
|
|
|
$
|
(133,618)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/biostar-pharmaceuticals-inc-announces-its-annual-results-for-the-year-ended-december-31-2016-300439231.html
SOURCE Biostar Pharmaceuticals, Inc.