WEB NEWS Comments & Business Outlook
AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
For the three months ended
June 30,
For the six months ended
June 30,
2011
2010
2011
2010
Net revenues
$ 3,595,412 $ 2,826,296 $ 5,183,071 $ 3,653,545
Cost of goods sold
776,985 597,651 1,106,383 714,541
Gross profit
2,818,427 2,228,645 4,076,688 2,939,004
Selling, general and administrative expenses
210,158 34,945 605,363 67,800
Share based consulting fee
2,625,008 - 2,625,008 -
Bad debt expense
1,404,985 - 1,407,510 -
Net (loss) income
(1,421,724 ) 2,193,700 (561,193 ) 2,871,204
Other comprehensive income-foreign currency translation gains
329,779 26,499 190,764 26,739
Comprehensive (loss) income
$ (1,091,945 ) $ 2,220,199 $ (370,429 ) $ 2,897,943
Basic and diluted (loss) earnings per share
$ (0.03 ) $ 0.04 $ (0.01 ) $ 0.06
Weighted average number of shares
50,437,640
49,870,814 50,875,142 49,870,814
Reverse Merger Activity
On July 16, 2010, Dandong LongSheng Horticulture Technology Co., Ltd. went public via a reverse merger trancsaction .
Company Snapshot:
Products consist of a number of blueberry seedling varietals.
Industry Snapshot:
China has historically not been a major producer or consumer of blueberries. In recent years, Chinese farmers have begun to cultivate blueberries in earnest due to the high price that can be commanded in the market. There are more than 400 varieties of blueberries in the world with over 200 in China. Concurrent with increased awareness of health benefits of blueberry consumption, global production has recently increased rapidly driven by robust demand Worldwide blueberry acreage has more than doubled in the past twelve years, from 62,800 acres in 1997 to approximately 145,000 acres in 2009 It is anticipated that global blueberry production will nearly quadruple from 2005 levels to over 1.2B lbs by 2012. North and South America will be major drivers, and production in China is also anticipated to see explosive growth. Japan is Asia’s largest importer of blueberries, and currently only produces 7% of its yearly consumption. Japan currently imports 10 to 14 million tons of U.S.-grown blueberries annually and is expected to become the largest importer of Chinese blueberries in the near future. China’s domestic blueberry industry is in an early stage of development. There were an estimated 400 to 600 hectares of blueberry fields under cultivation in 2007, located primarily in Jilin, Liaoning and Shandong Provinces. Due to foreign and domestic investment in blueberry production and government promotion of the industry, the area under cultivation is expected to reach 17,200 hectares by the end of 2010.
Post Merger Share Calculation :
240,130: Pre reverse merger outstanding shares and post 1 for 284 reverse split.
110,944: Shares cancelled as part of the Share Exchange
49,870,814 : Newly issued shares of Common Stock
GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions: : 50,000,000
Financial Snapshot: See note
Financials
March 31, 2010
March 31, 2009
% of Net
% of Net
Amount
Sales
Amount
Sales
Net Sales
$ 827,249
100 %
$ -
-
Cost of sales
116,890
14 %
-
-
Gross profit
710,359
86 %
-
-
Selling, General and Administrative Expenses
32,742
4 %
18,315
-
Operating Income
677,617
82 %
(18,315 )
-
(Other expense)
(113 )
0 %
(184 )
-
Income Before Income Taxes
677,504
82 %
(18,499 )
-
Income taxes
-
0 %
-
-
Net income
$ 677,504
82 %
$ (18,499 )
-
____________________________________________________________________________
Full Year
December 31, 2009
December 31, 2008
% of Net
% of Net
Amount
Sales
Amount
Sales
Net Sales
$ 5,008,712
100 %
$ 5,697,871
100 %
Cost of sales
1,297,480
26 %
2,610,873
46 %
Gross profit
3,711,232
74 %
3,086,998
54 %
Selling, General and Administrative Expenses
581,443
12 %
87,250
2 %
Compensation to officer
2,471,127
49.3 %
0
0 %
Operating Income
658,662
13 %
2,999,748
53 %
Other income
93
0 %
222
0 %
Income Before Income Taxes
658,755
13 %
2,999,970
53 %
Income taxes
0
0 %
0
0 %
Net income
$ 658,755
13 %
$ 2,999,970
53 %
Liquidity Requirements
We believe that our cash on hand and cash flow from operations will meet part of our present cash needs and we will require additional cash resources to meet our expected capital expenditure and working capital for the next 12 months.
Reverse Merger Activity
Idcentrix may be contemplating a reverser merger with a Chinese firm due to the involvement of certain parties mentioned in a recent stock purchase agreement :
On April 5, 2010, iDcentrix, Inc. entered into a Common Stock Purchase Agreement by and among Tsoi Tik Man (the “Buyer”), Belmont Partners , LLC, a Virginia limited liability company (the “Seller”), and the Company. Pursuant to the terms of the Purchase Agreement, on April 5, 2010, the Buyer acquired from the Seller 36,688,800 shares, or approximately 53.81 %, of the issued and outstanding common stock of the Company. In consideration for the sale of the Purchased Stock, the Buyer paid the Seller $300,000 and the Company agreed to issue to the Seller shares of its common stock such that the Seller will own 10% of the issued and outstanding capital stock of the Company after the closing of a merger transaction with an as of yet unidentified target corporation contemplated by the Purchase Agreement.
Tsoi Tik Man was appointed as the Company’s President and Secretary, effective immediately.
Belmont Partners is an active player in the ChinaHybrid reverse merger space.
Tsoi Tik Man profile:
Mr. Tsoi graduated in 1980 from the University of Scientific and Technology of China , Faculty of Physics, with a bachelor’s degree. From 1981 to 1991, Mr. Tsoi served in Chinese government agencies including the Ministry of Electronics Industry and the Ministry of Labor and Human Resources. From 1991 to 2006, Mr. Tsoi established and acted as President or other senior officer of several companies, including Kong man Investment Ltd., Dynasty Technology Inc., New Power (China) Investment Ltd., Ever Wealth Investment (Holding) Ltd. and Shenzhen KeTuoDa Development Ltd. In 2006, Mr. Tsoi established China Digital Communication Group Ltd. and has served as its President since such time. In 2008, Mr. Tsoi established and became President of ECO Ltd.
Research
It appears that this shell may soon be involved in a transaction with a Chinese company.
On April 5, 2010, iDcentrix, Inc. entered into a Common Stock Purchase Agreement by and among Tsoi Tik Man, Belmont Partners, LLC, a Virginia limited liability company, and the Company. Pursuant to the terms of the Purchase Agreement, on April 5, 2010, the Buyer acquired from the Seller 36,688,800 shares, or approximately 53.81% , of the issued and outstanding common stock of the Company.
Mr. Tsoi has been the President and Secretary of the Company since April 5, 2010. Mr. Tsoi graduated in 1980 from the University of Scientific and Technology of China, Faculty of Physics, with a bachelor’s degree. From 1981 to 1991, Mr. Tsoi served in Chinese government agencies including the Ministry of Electronics Industry and the Ministry of Labor and Human Resources . From 1991 to 2006, Mr. Tsoi established and acted as President or other senior officer of several companies, including Kong man Investment Ltd., Dynasty Technology Inc., New Power (China) Investment Ltd., Ever Wealth Investment (Holding) Ltd. and Shenzhen KeTuoDa Development Ltd. In 2006, Mr. Tsoi established China Digital Communication Group Ltd. and has served as its President since such time. In 2008, Mr. Tsoi established and became President of ECO Ltd.
