x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
|
14-1623047
|
|
(State
or other jurisdiction
of
incorporation)
|
(IRS
Employer
Identification
No.)
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
Non-accelerated
filer ¨(Do not check if
a smaller reporting company)
|
Smaller
reporting company ¨
|
Class
of Securities
|
Shares
Outstanding
|
|
Common
Stock, $0.001 par value
|
46,562,953
|
PART
I
|
FINANCIAL
INFORMATION
|
3
|
||
ITEM
1.
|
FINANCIAL
STATEMENTS.
|
3
|
||
ITEM
2.
|
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
|
22
|
||
ITEM
3.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
|
39
|
||
ITEM
4.
|
CONTROLS
AND PROCEDURES.
|
41
|
||
PART
II
|
OTHER
INFORMATION
|
41
|
||
ITEM
1.
|
LEGAL
PROCEEDINGS.
|
41
|
||
ITEM 1A.
|
RISK
FACTORS.
|
41
|
||
ITEM
2.
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
|
41
|
||
ITEM
3.
|
DEFAULTS
UPON SENIOR SECURITIES.
|
41
|
||
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS.
|
42
|
||
ITEM
5.
|
OTHER
INFORMATION.
|
42
|
||
ITEM
6.
|
|
EXHIBITS.
|
|
42
|
ITEM 1.
|
FINANCIAL
STATEMENTS.
|
Contents
|
|
Page(s)
|
|
|
|
Condensed Consolidated Balance
Sheets as of March 31, 2009 and June 30, 2008
|
|
4
|
Condensed Consolidated Statements
of Operations and
Comprehensive Income
for the nine months ended March 31, 2009 and 2008
|
|
5
|
Condensed Consolidated Statements of
Stockholders’ Equity for the nine months ended
March 31, 2009 and 2008
|
|
6
|
Condensed Consolidated Statements
of Cash Flows for the nine months ended March 31, 2009 and
2008
|
|
7
|
|
|
|
Notes to the Condensed
Consolidated Financial
Statements
|
|
8
|
(Unaudited)
|
||||||||||||
March 31,
|
June 30,
|
|||||||||||
Notes
|
2009
|
2008
|
||||||||||
Assets
|
||||||||||||
Current
assets
|
||||||||||||
Cash
and equivalents
|
$ | 5,569,806 | $ | 18,568,842 | ||||||||
Accounts
receivable net of allowances of $1,036,609 and $1,033,479 at March 31,
2009 and June 30, 2008, respectively
|
5
|
21,029,146 | 33,783,074 | |||||||||
Bills
receivable
|
2,288,691 | 4,309,703 | ||||||||||
Other
receivables
|
259,827 | 571,746 | ||||||||||
Inventories
|
6
|
22,606,039 | 17,815,087 | |||||||||
Prepaid
expenses
|
131,841 | 58,105 | ||||||||||
Advances
to suppliers, net of allowances of $2,530,479 and $2,522,837 at March 31,
2009 and June 30, 2008,respectively
|
7
|
25,477,855 | 33,027,365 | |||||||||
Total
current assets
|
77,363,205 | 108,133,922 | ||||||||||
Property
and equipment
|
||||||||||||
Property
and equipment, net
|
8
|
39,800,096 | 39,199,305 | |||||||||
Deposit
for plant and machinery
|
8,048,466 | - | ||||||||||
Construction-in-progress
|
9
|
29,949,380 | 16,476,454 | |||||||||
77,797,942 | 55,675,759 | |||||||||||
Intangible
assets, net
|
10
|
2,394,406 | 1,625,690 | |||||||||
Goodwill
|
99,999 | 99,999 | ||||||||||
Total
assets
|
$ | 157,655,552 | $ | 165,535,370 | ||||||||
Liabilities
and Stockholders' Equity
|
||||||||||||
Current
liabilities
|
||||||||||||
Accounts
payable and accrued liabilities
|
$ | 10,023,519 | $ | 12,047,981 | ||||||||
Advances
from customers
|
11
|
3,581,863 | 6,996,996 | |||||||||
Other
taxes payables
|
3,529,867 | 3,976,239 | ||||||||||
Current
income taxes payable
|
4,746,903 | 4,742,387 | ||||||||||
Short-term
loans
|
12
|
17,430,904 | 17,465,799 | |||||||||
Total
current liabilities
|
39,313,056 | 45,229,402 | ||||||||||
Stockholders'
equity:
|
||||||||||||
Preferred
stock: $0.001 per value, 8,000,000 shares authorized, no shares
outstanding at March 31, 2009 and June 30, 2008
|
13
|
|||||||||||
Common
stock: $0.001 par value, 62,000,000 shares authorized, 46,562,953 and
46,472,953 issued and outstanding March 31, 2009 and June 30,
2008
|
13
|
46,563 | 46,473 | |||||||||
Additional
paid-in capital
|
13
|
75,642,383 | 75,372,488 | |||||||||
Accumulated
other comprehensive income
|
9,679,901 | 9,295,658 | ||||||||||
Retained
earnings
|
32,973,649 | 35,591,349 | ||||||||||
Total
stockholders' equity
|
118,342,496 | 120,305,968 | ||||||||||
Total
liabilities and stockholders' equity
|
$ | 157,655,552 | $ | 165,535,370 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
March 31,
|
March 31,
|
March 31,
|
March 31,
|
|||||||||||||||||
Notes
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||
Revenues
|
||||||||||||||||||||
Sales
revenues
|
$ | 7,623,209 | $ | 18,773,504 | $ | 50,547,587 | $ | 59,189,060 | ||||||||||||
Cost
of goods sold
|
9,605,252 | 13,399,010 | 45,125,635 | 42,172,997 | ||||||||||||||||
Gross
profit/(loss)
|
(1,982,043 | ) | 5,374,494 | 5,421,952 | 17,016,063 | |||||||||||||||
Operating
expenses
|
||||||||||||||||||||
Selling
expenses
|
298,492 | 203,477 | 1,632,322 | 484,926 | ||||||||||||||||
Administrative
expenses
|
541,251 | 699,220 | 1,581,456 | 2,031,816 | ||||||||||||||||
Bad
and doubtful debts
|
672 | 10,150 | 3,830,134 | 661,930 | ||||||||||||||||
Depreciation
and amortization
|
33,624 | 17,155 | 93,145 | 46,585 | ||||||||||||||||
Total
operating expenses
|
874,039 | 930,002 | 7,137,057 | 3,225,257 | ||||||||||||||||
Income/(loss)
from operations
|
(2,856,082 | ) | 4,444,492 | (1,715,105 | ) | 13,790,806 | ||||||||||||||
Other
income/(expense)
|
||||||||||||||||||||
Other
revenues
|
76,556 | 152,894 | 336,257 | 945,304 | ||||||||||||||||
Interest
and finance costs
|
(257,123 | ) | (415,863 | ) | (905,305 | ) | (1,174,864 | ) | ||||||||||||
Total
other income/(expense)
|
(180,567 | ) | (262,969 | ) | (569,048 | ) | (229,560 | ) | ||||||||||||
Net
income/(loss) from operations before income tax
|
(3,036,649 | ) | 4,181,523 | (2,284,153 | ) | 13,561,246 | ||||||||||||||
Income
tax
|
15
|
|||||||||||||||||||
Current
|
481,804 | 543,623 | 333,547 | 1,660,217 | ||||||||||||||||
Deferred
|
- | - | - | (1,064,028 | ) | |||||||||||||||
Total
income tax
|
481,804 | 543,623 | 333,547 | 596,189 | ||||||||||||||||
Net
income/(loss)
|
$ | (3,518,453 | ) | $ | 3,637,900 | $ | (2,617,700 | ) | $ | 12,965,057 | ||||||||||
Basic
earnings/(loss) per share
|
16
|
$ | (0.08 | ) | $ | 0.08 | $ | (0.06 | ) | $ | 0.31 | |||||||||
Basic
weighted average shares outstanding
|
46,562,953 | 45,896,288 | 46,560,656 | 42,088,128 | ||||||||||||||||
Diluted
earnings/(loss) per share
|
16
|
$ | (0.08 | ) | $ | 0.08 | $ | (0.06 | ) | $ | 0.30 | |||||||||
Diluted
weighted average shares outstanding
|
46,562,953 | 46,365,778 | 46,560,656 | 42,555,912 | ||||||||||||||||
The
Components of comprehensive income/(loss):
|
||||||||||||||||||||
Net
income/(loss)
|
$ | (3,518,453 | ) | $ | 3,637,900 | $ | (2,617,700 | ) | $ | 12,965,057 | ||||||||||
Foreign
currency translation adjustment
|
(366,181 | ) | 3,481,498 | 384,243 | 5,567,813 | |||||||||||||||
Comprehensive
income/(loss)
|
$ | (3,884,634 | ) | $ | 7,119,398 | $ | (2,233,457 | ) | $ | 18,532,870 |
Accumulated
|
||||||||||||||||||||||||
Additional
|
Other
|
Total
|
||||||||||||||||||||||
Ordinary Shares
|
Paid-in
|
Comprehensive
|
Retained
|
Stockholders'
|
||||||||||||||||||||
Share
|
Amount
|
Capital
|
Income
|
Earnings
|
Equity
|
|||||||||||||||||||
Balance
at June 30, 2007
|
37,378,141 | $ | 37,378 | $ | 31,867,063 | $ | 2,192,160 | $ | 17,008,238 | $ | 51,104,839 | |||||||||||||
Sale
of common stock
|
7,100,000 | 7,100 | 44,498,650 | - | - | 44,505,750 | ||||||||||||||||||
Syndication
fees
|
- | - | (130,468 | ) | - | - | (130,468 | ) | ||||||||||||||||
Make
good shares
|
2,000,000 | 2,000 | (2,000 | ) | - | - | - | |||||||||||||||||
Exercise
of warrants
|
765,872 | 766 | 1,729,235 | - | - | 1,730,001 | ||||||||||||||||||
Cancellation
of stock
|
(771,060 | ) | (771 | ) | (2,589,992 | ) | - | - | (2,590,763 | ) | ||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | 7,103,498 | - | 7,103,498 | ||||||||||||||||||
Net
income
|
- | - | - | - | 18,583,111 | 18,583,111 | ||||||||||||||||||
Balance
at June 30, 2008
|
46,472,953 | 46,473 | 75,372,488 | 9,295,658 | 35,591,349 | 120,305,968 | ||||||||||||||||||
Exercise
of warrants
|
90,000 | 90 | 269,895 | - | - | 269,985 | ||||||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | 384,243 | - | 384,243 | ||||||||||||||||||
Net
loss
|
- | - | - | - | (2,617,700 | ) | (2,617,700 | ) | ||||||||||||||||
Balance at March 31,
2009 (unaudited)
|
46,562,953 | $ | 46,563 | $ | 75,642,383 | $ | 9,679,901 | $ | 32,973,649 | $ | 118,342,496 |
2009
|
2008
|
|||||||
Cash
flows from operating activities
|
||||||||
Net
Income/(loss)
|
$ | (2,617,700 | ) | $ | 12,965,057 | |||
Adjustments
to reconcile net income to net cash provided by operating
activities
|
||||||||
Depreciation
and amortization
|
2,746,541 | 1,841,947 | ||||||
Allowance
for bad and doubtful debts
|
3,830,134 | 661,930 | ||||||
Net
changes in assets and liabilities:
|
||||||||
Accounts
receivable, bills receivable and other receivables
|
11,360,509 | (26,067,887 | ) | |||||
Inventories
|
(4,732,832 | ) | (2,616,526 | ) | ||||
Deposits
|
- | 89,361 | ||||||
Prepaid
expenses
|
(73,753 | ) | (429,556 | ) | ||||
Advances
to suppliers
|
7,642,844 | (25,893,725 | ) | |||||
Accounts
payable and accrued expenses
|
(2,058,293 | ) | 5,702,234 | |||||
Advances
from customers
|
(3,433,313 | ) | 5,037,976 | |||||
Other
taxes payable
|
(458,015 | ) | 2,220,328 | |||||
Current
income taxes
|
(9,841 | ) | 2,365,673 | |||||
Deferred
income taxes
|
- | (1,064,028 | ) | |||||
Net
cash (used in)/provided by operating activities
|
12,196,281 | (25,187,216 | ) | |||||
Cash
flows from investing activities
|
||||||||
Purchases
of property, plant and equipment
|
(3,231,638 | ) | - | |||||
Deposit
for plant and machinery
|
(8,048,466 | ) | - | |||||
Purchases
of land use rights
|
(786,643 | ) | - | |||||
Construction
in progress
|
(13,423,016 | ) | (7,512,290 | ) | ||||
Net
cash (used in)/ investing activities
|
(25,489,763 | ) | (7,512,290 | ) | ||||
Cash
flows from financing activities
|
||||||||
Exercise
of common stock warrants
|
269,985 | - | ||||||
Sale
of common stock
|
44,375,282 | |||||||
Advances
from/(to) directors, net
|
- | 2,572,846 | ||||||
Notes
payable proceeds
|
- | 16,446,667 | ||||||
Repayments
of short-term loan
|
(87,801 | ) | (23,757,121 | ) | ||||
Net
cash provided by financing activities
|
182,184 | 39,637,674 | ||||||
Effect
of exchange rate
|
112,262 | 1,852,473 | ||||||
Net
increase/(decrease) in cash
|
(12,999,036 | ) | 8,790,641 | |||||
Cash
and cash equivalents, beginning of period
|
18,568,842 | 5,504,862 | ||||||
Cash
and cash equivalents, end of period
|
$ | 5,569,806 | $ | 14,295,503 | ||||
Supplemental
disclosure of cash flow information:
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest
paid
|
$ | 905,305 | $ | 1,174,864 | ||||
Taxes
paid
|
$ | 363,493 | $ | - | ||||
Fixed
asset purchases in accounts payable
|
$ | - | $ | 233,885 |
Plant
and machinery
|
10 years
|
|
Buildings
|
10 years
|
|
Motor
vehicles
|
5 years
|
|
Office
equipment
|
5 years
|
Customers
|
2009
|
% to
sales
|
2008
|
% to
sales
|
||||||||||||
Salzgitter
Mannesmann International GMBH
|
13,653,466
|
27
|
—
|
*
|
—
|
*
|
||||||||||
Shanghai
Changshuo Stainless Steel Co., Ltd.
|
—
|
*
|
—
|
*
|
14,174,957
|
24
|
||||||||||
Shanghai
Shengdejia Metal Products Limited
|
—
|
*
|
—
|
*
|
10,854,529
|
18
|
||||||||||
Sinosteel
Company Limited
|
—
|
*
|
—
|
*
|
10,854,529
|
18
|
Suppliers
|
2009
|
% to
consumption
|
2008
|
% to
purchase
|
||||||||||||
|
|
|
||||||||||||||
BaoSteel
Steel Products Trading Co. Ltd.
|
10,758,080 | 31 | 13,259,732 | 34 | ||||||||||||
Shanghai
Pinyun Steel Co., Ltd
|
8,486,770 | 25 | 8,278,110 | 21 |
At cost:
|
March 31,
2009
|
June 30,
2008
|
||||||
Raw materials
|
$
|
10,255,186
|
$
|
8,376,173
|
||||
Work
in progress
|
3,206,718
|
3,247,093
|
||||||
Finished
goods
|
7,029,177
|
3,918,801
|
||||||
Consumable
items
|
2,114,958
|
2,273,020
|
||||||
|
$
|
22,606,039
|
$
|
17,815,087
|
March 31,
2009
|
June 30,
2008
|
|||||||
Plant
and machinery
|
$
|
25,839,027
|
$
|
22,725,528
|
||||
Buildings
|
21,763,406
|
21,685,208
|
||||||
Motor
vehicles
|
526,552
|
379,885
|
||||||
Office
equipment
|
214,669
|
185,161
|
||||||
48,343,654
|
44,975,782
|
|||||||
Less:
Accumulated depreciation
|
(8,543,558
|
)
|
(5,776,477
|
)
|
||||
$
|
39,800,096
|
$
|
39,199,305
|
March 31,
2009
|
June 30,
2008
|
|||||||
Construction
costs
|
$
|
29,949,380
|
$
|
16,476,454
|
March 31,
2009
|
June 30,
2008
|
|||||||
Bank
loan dated August 1, 2008, due in one year with an interest rate of the
Singapore Interbank Offered Rate (“SIBOR”) plus 3% (4.2% at March 31,
2009) (Note 8)
|
5,300,000
|
5,300,000
|
||||||
Bank
loan dated August 1, 2008, due in one year with an interest rate at 115%
of the standard market rate set by the People’s Bank of China for Renminbi
loans (6.11% at March 31, 2009) (Note 8)
|
2,902,130
|
2,886,952
|
||||||
Bank
loan dated July 26, 2008, due in one year with an interest rate at 115% of
the standard market rate set by the People’s Bank of China for Renminbi
loans (6.11% at March 31, 2009) (Note 8)
|
9,228,774
|
9,278,847
|
||||||
$
|
17,430,904
|
$
|
17,465,799
|
Exercise
Price
|
Outstanding
June 30, 2008
|
Granted
|
Expired or
Exercised
|
Outstanding
March 31,
2009
|
Expiration Date
|
||||||||
$ |
3.00
|
448,392
|
-0-
|
(90,000
|
)
|
358,392
|
February 22, 2011
|
||||||
$ |
3.60
|
100,000
|
-0-
|
-0-
|
100,000
|
February 22, 2010
|
|||||||
$ |
8.45
|
1,420,000
|
-0-
|
-0-
|
1,420,000
|
May 5, 2013
|
|||||||
$ |
7.38
|
225,600
|
-0-
|
-0-
|
225,600
|
November 5, 2010
|
Three months ended March 31,
|
Nine months ended March 31
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Tax
savings
|
$
|
188,410
|
$
|
(589,520
|
)
|
$
|
(223,567
|
)
|
$
|
(1,935,620
|
)
|
|||||
Benefit
per share
|
||||||||||||||||
Basic
|
$
|
0.004
|
$
|
(0.01)
|
$
|
(0.005
|
)
|
$
|
(0.04
|
)
|
||||||
Diluted
|
$
|
0.004
|
$
|
(0.01
|
)
|
$
|
(0.005
|
)
|
$
|
(0.04
|
)
|
Deferred tax assets and liabilities:
|
March 31
2009
|
June 30,
2008
|
||||||
Book
depreciation in excess of tax depreciation
|
$
|
770,458
|
$
|
169,962
|
||||
Temporary
differences resulting from allowances
|
891,770
|
573,324
|
||||||
Net
deferred income tax asset
|
$
|
1,662,228
|
$
|
743,286
|
||||
Valuation
allowance
|
(1,662,228
|
)
|
(743,286
|
)
|
||||
|
$
|
—
|
$
|
—
|
Three months ended
March 31,
|
Nine months ended
March 31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Computed
tax at federal statutory rate of 34%
|
$
|
(1,032,462
|
)
|
$
|
1,421,718
|
$
|
(776,613
|
)
|
$
|
4,610,824
|
||||||
Less
adjustment to China Enterprise Income Tax statutory rate of 25% in 2009
and 2008
|
248,556
|
(517,760
|
)
|
141,784
|
(1,131,579
|
)
|
||||||||||
Tax
effect of US losses not deductible in PRC
|
595,494
|
229,185
|
743,004
|
446,953
|
||||||||||||
Income
not subject to tax
|
—
|
—
|
—
|
(330,361
|
)
|
|||||||||||
Deferred
taxes
|
—
|
—
|
—
|
(1,064,028
|
)
|
|||||||||||
Benefit
of tax holiday
|
188,410
|
(589,520
|
)
|
(223,567
|
)
|
(1,935,620
|
)
|
|||||||||
Expenses
not deductible for tax
|
478,767
|
—
|
478,767
|
—
|
||||||||||||
Others
|
3,039
|
—
|
(29,828
|
)
|
—
|
|||||||||||
Income
tax expense per books
|
$
|
481,804
|
$
|
543,623
|
$
|
333,547
|
$
|
596,189
|
Three months ended
March 31,
|
Nine months ended
March 31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Income
tax expense for the current year - PRC
|
$ | 481,804 | $ | 543,623 | $ | 333,547 | $ | 1,660,217 | ||||||||
Deferred
income tax (benefit) - PRC
|
— | — | — | (1,064,028 | ) | |||||||||||
Income
tax expense per books
|
$ | 481,804 | $ | 543,623 | $ | 333,547 | $ | 596,189 |
|
Income(Loss)
|
Shares
|
Per Share
|
||||||
|
(Numerator)
|
(Denominator)
|
Amount
|
||||||
For
the three months ended March 31, 2009:
|
|||||||||
Net
(loss)
|
$
|
(3,518,453
|
)
|
||||||
Basic
EPS income/(loss) available to common shareholders
|
$
|
(3,518,453
|
)
|
46,562,953
|
$
|
(0.08
|
)
|
||
Effect
of dilutive securities
|
-
|
||||||||
Diluted
EPS income/(loss) available to common shareholders
|
$
|
(3,518,453)
|
46,562,953
|
$
|
(0.08
|
)
|
|||
For
the three months ended March 31, 2008:
|
|||||||||
Net
income
|
$
|
3,637,900
|
|||||||
Basic
EPS income available to common shareholders
|
$
|
3,637,900
|
45,896,288
|
$
|
0.08
|
||||
Effect
of dilutive securities
|
-
|
||||||||
Warrants
|
469,490
|
||||||||
Diluted
EPS income available to common shareholders
|
$
|
3,637,900
|
46,562,953
|
$
|
0.08
|
Income
|
Shares
|
Per Share
|
|||||||
(Numerator)
|
(Denominator)
|
Amount
|
|||||||
For
the nine months ended March 31, 2009:
|
|||||||||
Net
income/(loss)
|
$
|
(2,617,700
|
)
|
||||||
Basic
EPS income available to common shareholders
|
$
|
(2,617,700
|
)
|
46,560,656
|
$
|
(0.06
|
)
|
||
Effect
of dilutive securities
|
-
|
||||||||
Diluted
EPS income available to common shareholders
|
$
|
(2,617,700
|
)
|
46,560,656
|
$
|
(0.06
|
)
|
||
For
the nine months ended March 31, 2008:
|
|||||||||
Net
income
|
$
|
12,965,057
|
|||||||
Basic
EPS income available to common shareholders
|
$
|
12,965,057
|
42,088,128
|
$
|
0.31
|
||||
Effect
of dilutive securities
|
-
|
||||||||
Warrants
|
467,784
|
||||||||
Diluted
EPS income available to common shareholders
|
$
|
12,965,057
|
42,555,912
|
$
|
0.30
|
·
|
Revenues:
Our revenues were approximately $7.6 million for the third quarter of
2009, a decrease of 59.4% from the same quarter of last
year.
|
·
|
Gross
Margin: Gross margin was (26.0)% for the third quarter of 2009, as
compared to 28.6% for the same period in
2008.
|
·
|
Income/(loss)
from operations before tax: Loss from operations before tax was
approximately $2.9 million for the third quarter of 2009, as compared to
income from operations before tax of $4.4 million of the same period last
year.
|
·
|
Net
Income/(loss): Net loss was approximately $3.5 million for the third
quarter of 2009, a decrease of 196.7% from a net income of approximately
$3.6 million for the same period last
year.
|
·
|
Fully
diluted loss per share was $0.08 for the third quarter of 2009 compared to
a fully diluted earnings per share of $0.08 for the same period last
year.
|
Three Months ended March 31,
|
Nine Months ended March 31,
|
|||||||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||||
Revenues
|
$ | 7,623,209 | 100.0 | % | $ | 18,773,504 | 100.0 | % | $ | 50,547,587 | 100.0 | % | $ | 59,189,060 | 100.00 | % | ||||||||
Cost
of sales (including depreciation and amortization)
|
9,605,252 | 126.0 | % | 13,399,010 | 71.4 | % | 45,125,635 | 89.3 | % | 42,172,997 | 71.3 | % | ||||||||||||
Gross
profit/(loss)
|
(1,982,043 | ) | (26.0 | )% | 5,374,494 | 28.6 | % | 5,421,952 | 10.7 | % | 17,016,063 | 28.7 | % | |||||||||||
Selling
and marketing
|
298,492 | 3.9 | % | 203,477 | 1.1 | % | 1,632,322 | 3.2 | % |