WEB NEWS Comments & Business Outlook
CYBRDI, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2014
2013
2014
2013
Revenue
Housing
$
-
$
-
$
80,650
$
-
Commercial rental - related party
-
-
-
-
Tissue array products
111,929
132,941
265,584
422,820
Total revenue
111,929
132,941
346,234
422,820
Cost of Sales
Housing
-
-
47,145
-
Commercial rental - related party
4,500
182
38,164
21,444
Tissue array products
87,141
96,747
227,368
280,082
Total cost of sales
91,641
96,929
312,677
301,526
Gross Profit
20,288
36,012
33,557
121,294
Operating Expenses:
Salaries and wages
56,446
82,085
162,206
178,048
Depreciation and amortization
2,456
23,992
16,308
63,428
Bad debt expense
-
-
-
6,690
Professional fees
9,061
11,547
66,810
66,111
Selling and distribution expenses
1,411
1,622
6,005
7,726
Other general and administrative expenses
45,607
7,572
218,844
142,589
Total Operating Expenses
114,981
126,818
470,173
464,592
Loss from Operations
(94,693
)
(90,806
)
(436,616
)
(343,298
)
Other Income (Expense)
Interest expenses
(57,894
)
(66,564
)
(143,380
)
(174,362
)
Other income (expense), net
56
(2,931
)
(22,739
)
21,635
Total Other Expense, Net
(57,838
)
(69,495
)
(166,119
)
(152,727
)
Loss before Income Taxes
(152,531
)
(160,301
)
(602,735
)
(496,025
)
Income Tax Expense
74
104
(1,664
)
388
Net loss
(152,605
)
(160,405
)
(601,071
)
(496,413
)
Less: Net loss attributable to the
(74,379
)
(37,555
)
(74,379
)
(101,490
)
Net loss attributable to CYBRDI, INC.
(78,226
)
(122,850
)
(526,692
)
(394,923
)
Foreign currency translation loss
(18,468
)
182,387
(134,295
)
178,978
Comprehensive loss
$
(96,694
)
$
59,537
$
(660,987
)
$
(215,945
)
Net Loss Per Common Share
Basic and Diluted
$
(0.00
)
$
(0.00
)
$
(0.00
)
$
(0.00
)
Weighted Average Number of Shares Outstanding
Basic and Diluted
120,225,323
120,225,323
120,225,323
120,225,323
Management Discussion and Analysis
Net Revenue
Cybrdi mainly generates two categories of revenues, including sales of tissue chip & kits products and residential housing. The net sales decreased by $21,012 to $111,929 for the three months ended September 30, 2014 from $132,941 for the three months ended September 30, 2013, a decrease of 16%.
Tissue Chip & Kit Products: Net sales decreased by $21,012 to $111,929 for the three months ended September 30, 2014 as compared to $ 132,941 for the three months ended September 30, 2013, a decrease of 16%. The decrease in net sales of tissue chip & kit product was primarily due to no orders being placed in the USA. The sales revenues generated from export sales now are subject to the value added tax (“VAT”) pursuant to PRC tax regulations, which was exempt for export sales in 2013. The VAT imposed by PRC tax bureau on export sales is absorbed by the Company without charging the customers. Currently, our sole domestic sales representative in China is Xi’an AiLiNa Biotechnology Co., Ltd., and the only overseas sales representative is US BioMax, Ltd., a reseller located in the US. We mainly distribute our products through these two sales representatives, which are under common control by a non-affiliated person.
Housing: SD Chaoying completed the construction of the two six-story multi-family residential buildings with a total of 74 housing units in 2009. There was no sale of housing units for the three months ended September 30, 2014 and September 30, 2013, Since SD Chaoying is required to continue its involvement with the property after the sale, including installations of utility systems, improvements and amenities, and community landscaping, profit from the sale was recognized using the percentage of completion method as required by ASC Topic 360-20, “Property, Plant, and Equipment – Real Estate Sales”.
Commercial rental: In January 2011, SD Chaoying engaged Dongshan Victoria Spring Hotel (“Victoria”), which is controlled by the wife of the General Manager of SD Chaoying, to manage and operate the SPA business at the completed section of the cultural and entertainment facility. SD Chaoying has not been charged any fees from Victoria and no written agreement was signed. As a result, no revenue was recognized for the three months ended September 30, 2014 and 2013, respectively. Costs related to operating commercial rentals amounted to $4,500 and $182 for the three months ended September 30, 2014 and 2013, respectively.
As a result of the above factors, our net loss excluding minority interests decreased by $44,624, or 36%, from $122,850 for the three months ended September 30, 2013 to $78,226 for the three months ended September 30, 2014.
Comments & Business Outlook
Three Months Ended June 30,
Six Months Ended June 30,
2014
2013
2014
2013
Revenue
Housing
$
-
$
-
$
80,650
$
-
Commercial rental - related party
-
-
-
-
Tissue array products
85,519
138,727
153,655
289,879
Total revenue
85,519
138,727
234,305
289,879
Cost of Sales
Housing
-
-
47,145
-
Commercial rental - related party
7,365
4,566
33,664
21,262
Tissue array products
72,157
84,815
140,227
183,335
Total cost of sales
79,522
89,381
221,036
204,597
Gross Profit
5,997
49,346
13,269
85,282
Operating Expenses:
Salaries and wages
54,772
42,050
105,760
95,963
Depreciation and amortization
2,430
5,991
13,852
39,436
Bad debt expense
-
-
-
6,630
Professional fees
19,174
14,457
57,749
54,564
Selling and distribution expenses
1,733
1,918
4,594
6,104
Other general and administrative expenses
49,699
107,485
173,237
135,077
Total Operating Expenses
127,808
171,901
355,192
337,774
Loss from Operations
(121,811
)
(122,555
)
(341,923
)
(252,492
)
Other Income (Expense)
Interest expenses
(38,014
)
(61,610
)
(85,486
)
(107,798
)
Other income (expense), net
(22,028
)
26,614
(22,795
)
24,566
Total Other Expense, Net
(60,042
)
(34,996
)
(108,281
)
(83,232
)
Loss before Income Taxes
(181,853
)
(157,551
)
(450,204
)
(335,724
)
Income Tax Expense
-
142
(1,738
)
284
Net loss
(181,853
)
(157,693
)
(448,466
)
(336,008
)
Less: Net loss attributable to the non-controlling interests
(55,886
)
(32,442
)
(89,366
)
(63,935
)
Net loss attributable to CYBRDI, INC.
(125,967
)
(125,251
)
(359,100
)
(272,073
)
Foreign currency translation loss
(45,257
)
33,685
(115,813
)
(3,409
)
Comprehensive loss
$
(171,224
)
$
(91,566
)
$
(474,913
)
$
(275,482
)
Net Loss Per Common Share
Basic and Diluted
$
(0.00
)
$
(0.00
)
$
(0.00
)
$
(0.00
)
Weighted Average Number of Shares Outstanding
Basic and Diluted
120,225,323
120,225,323
120,225,323
120,225,323
Management Discussion and Analysis
Net Revenue
Cybrdi now mainly generates two categories of revenues, including sales of tissue chip & kits products and residential housing. The net sales decreased $55,574 to $234,305 for the six months ended June 30, 2014 from $289,879 for the six months ended June 30, 2013, a decrease of 19.17% .
Tissue Chip & Kit Products: Net sales decreased by $136,224 to $153,655 for the six months ended June 30, 2014 as compared to $289,879 for the six months ended June 30, 2013, a decrease of 47%. The decrease in net sales of tissue chip & kit product was primarily due to no export sales during the six months ended June 30, 2014. The sales revenues generated from export sales now are subject to the value added tax (“VAT”) pursuant to PRC tax regulations, which was exempt for export sales in the past. The VAT imposed by PRC tax bureau on export sales is absorbed by the Company without charging to the customers. Currently, our sole domestic sales representative in China is Xi’an AiLiNa Biotechnology Co., Ltd., and the only overseas sales representative is US BioMax, Ltd., a reseller located in the US. We mainly distribute our products through these two sales representatives.
Housing: SD Chaoying completed the construction of the two six-story multi-family residential buildings with a total of 74 housing units in 2009. There were two housing units sold during the six months ended June 30, 2014, and we recognized sales revenue aggregating $80,650; while there was no housing unit sold during the quarter ended June 30,2014. Since SD Chaoying is required to continue its involvement with the property after the sale, including installations of utility systems, improvements and amenities, and community landscaping, profit from the sale was recognized using the percentage of completion method as required by ASC Topic 360-20, “Property, Plant, and Equipment – Real Estate Sales”.
Commercial rental: In January 2011, SD Chaoying engaged Dongshan Victoria Spring Hotel (“Victoria”), which is controlled by the wife of the General Manager of SD Chaoying, to manage and operate the SPA business at the completed section of the cultural and entertainment facility. SD Chaoying has not charged any fees from Victoria and no written agreement was signed. As a result, no revenue was recognized for the six months ended June 30, 2014 and June 30, 2013. Costs related to operating commercial rentals amounted to $33,664 and $21,262 for the six months ended June 30, 2014 and 2013, respectively.
As a result of the above factors, our net loss excluding minority interests increased by $130,606, or 6.9%, from $228,494 for the six months ended June 30, 2013 to $359,100 for the six months ended June 30, 2014.
Comments & Business Outlook
CYBRDI, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the Fiscal Years Ended December 31,
2013
2012
Revenue
Housing
$
-
$
268,582
Commercial rental - related party
-
-
Tissue array products
574,261
514,593
Total revenue
574,261
783,175
Cost of Sales
Housing
-
220,980
Commercial rental - related party
50,485
65,846
Tissue array products
339,925
329,089
Total cost of sales
390,410
615,915
Gross Profit
183,851
167,260
Operating Expenses:
Salaries and wages
228,526
233,124
Depreciation and amortization
121,954
149,925
Bad debt expense
2,895
330
(Reversal) Estimates of loss contingencies
-
(38,025
)
Professional fees
74,924
77,408
Selling and distribution expenses
9,097
6,654
Other general and administrative expenses
288,780
169,594
Total Operating Expenses
726,176
599,010
Loss from Operations
(542,325
)
(431,750
)
Other Income/(Expense)
Interest expenses
(220,979
)
(194,592
)
Other income (expense), net
148,767
(28,442
)
Total Other Expense, Net
(72,212
)
(223,034
)
Loss before Income Taxes
(614,537
)
(654,784
)
Income Tax Expense
(2,210
)
(856
)
Net loss
(616,747
)
(655,640
)
Less: Net loss attributable to the non-controlling interests
(68,381
)
(125,840
)
Net loss attributable to CYBRDI, INC.
(548,366
)
(529,800
)
Foreign currency translation gain / (loss)
126,756
(10,362
)
Comprehensive loss
$
(421,610
)
$
(540,162
)
Net Loss Per Common Share
Basic and Diluted
$
(0.01
)
$
(0.01
)
Weighted Average Number of Shares Outstanding
Basic and Diluted
120,225,323
120,225,323
Management Discussion and Analysis
Revenue
Cybrdi generates one category of revenue in 2013, including sales of tissue chip & kits products, and two categories of revenue in 2012, including sales of tissue chip & kits products and residential housing. The total revenue for the fiscal year ended December 31, 2013 was $574,261, a decrease of approximately 26.7% from $783,175 for the fiscal year ended December 31, 2012 mainly due to no sales in residential housing.
Tissue Chip & Kit Product: Net sales increased by $59,668 from $514,593 for the fiscal year ended December 31, 2012 to $574,261 for the fiscal year ended December 31, 2013, a increase of approximately 11.6% . These net sales were generated from our PRC subsidiary, Chaoying Biotech. The increase in net sales of tissue chip & kit product was primarily due to the increase in the domestic sales revenue. Cost of sales increased by $10,836 from $329,089 to $339,925 for the fiscal year ended December 31, 2013, an increase of 3.3%. Since 2010, our sole domestic sales representative in China has become Xi’an AiLiNa Biotechnology Co., Ltd, and the only overseas sales representative has been US BioMax, Inc. We mainly distribute our products through these two sales representatives, which are controlled by the same individual, an unrelated party.
Commercial rental: In January 2011, SD Chaoying engaged Dongshan Victoria Spring Hotel (“Victoria”), which is controlled by the wife of the General Manager of SD Chaoying, to manage and operate the SPA business at the completed section of the cultural and entertainment facility. SD Chaoying has not charged any fees from Victoria and no written agreement was signed. As a result, no revenue was recognized for the years ended December 31, 2013 and 2012. Costs related to operating commercial rental amounted to $50,485 and $65,846 for the years ended December 31, 2013 and 2012, respectively.
Net Loss
As a result of the above factors, our net loss before minority interests decreased $38,893, or 5.9%, from $655,640 for the fiscal year ended December 31, 2012 to $616,747 for the fiscal year ended December 31, 2013.
Comments & Business Outlook
CYBRDI, INC. AND SUBSIDIARIES
Three Months Ended
Three Months Ended
March 31, 2012
March 31, 2011
Revenue
Housing
$
142,423
$
-
Commercial rental
-
-
Tissue array products
99,910
113,811
Total revenue
242,333
113,811
Cost of Sales
Housing
123,499
-
Commercial rental
16,466
14,627
Tissue array products
79,314
87,148
Total cost of sales
219,279
101,775
Gross Profit
23,054
12,036
Operating Expenses:
Salaries and wages
52,244
40,483
Depreciation and amortization
38,447
36,272
Professional fees
18,710
46,326
Operating tax expenses
16,229
71
Selling and distribution expenses
1,379
6,425
Other general and administrative expenses
30,342
26,284
Bad debt expense
-
45,604
Total Operating Expenses
157,351
201,465
Loss from Operations
(134,297
)
(189,429
)
Other Income
Net interest (expense) income
(45,990
)
487
Other (expense) income, net
(26,057
)
243
Total Other (Expense) Income, Net
(72,047
)
730
Loss before Income Taxes
(206,344
)
(188,699
)
Income Tax Benefit (Expense)
-
-
Net loss
(206,344
)
(188,699
)
Net loss attributable to the noncontrolling interest
(38,465
)
(25,009
)
Net loss attributable to CYBRDI, INC. AND SUBSIDIARIES
$
(167,879
)
$
(163,690
)
Net Loss Per Common Share
Basic and Diluted
$
(0.00
)
(0.00
)
Weighted Average Number of Shares Outstanding
Basic and Diluted
120,225,323
65,756,567
