Biostar Pharmaceuticals, Inc. Announces Its Quarterly Results for Three Months Ended March 31, 2016

News provided by

Biostar Pharmaceuticals, Inc.

May 23, 2016, 04:00 ET

XIANYANG, China, May 23, 2016 /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 first quarter ended March 31, 2016.

During the fiscal first quarter of 2016, the Company recognized:

  • Net sales of $0.8 million, a decrease of approximately $6.1 million, or 88.4% as compared to the same period in 2015.
  • Gross profit decreased by approximately $3.2 million, or 90.4% for the three months ended March 31, 2016 as compared to the same period in 2015.
  • Sales of Shaanxi Weinan Products increased by approximately $0.4 million, or 88.0% as compared to the same period in 2015.
  • Net loss of $0.6 million as compared to net loss of $0.2 million for the first quarter 2015.

The sales of Shaanxi Weinan's products increased during the three months ended March 31, 2016 as compared to the same period in 2015. After Shaanxi Weinan received the renewed GMP certificate in June 2015, the sales volume has been slowly climbing back to the anticipated volume. There were no sales for Aoxing Pharmaceutical Products and hospital products as the Company has temporarily stopped production for the maintenance of its production lines in order to renew its GMP certificates, which is expected to be completed by the second quarter of 2016. Net sales and related gross profit both decreased significantly as result of these maintenance efforts. In anticipation of reduced sales volume as result of decreased production capacity, the Company temporarily suspended all advertising and research activities during the three months ended March 31, 2016.

*The Company's Condensed Consolidated Balance Sheets, Statement of Operations, and Cash Flows can be found at the end of this press release. Please also refer the Company's Quarterly Report on Form 10-Q 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. The Company's most popular product is its XinAoxingOleanolic Acid Capsule, an over-the-counter ("OTC") medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population. 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, 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, 2015, 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
[email protected] 
http://www.biostarpharmaceuticals.com

BIOSTAR PHARMACEUTICALS, INC

CONDENSED CONSOLIDATED BALANCE SHEETS



March 31,

December 31,


2016

2015


(Unaudited)

ASSETS





Current Assets



Cash and cash equivalents

$

91,482

$

38,898

Accounts receivable, net

14,712,467

15,814,880

Inventories

293,441

234,660

Deposits and other receivables

2,608

2,591

Income tax recoverable

135,838

76,280

Loan receivables, net

-

-

Total Current Assets

15,235,836

16,167,309







Non-current Assets





Deposits

16,206,827

16,099,958

Deferred tax assets, net

5,442,481

5,406,593

Property and equipment, net

6,749,372

6,810,933

Intangible assets, net

6,740,676

6,878,787

Total Non-Current Assets

35,139,356

35,196,271







Total Assets

$

50,375,192

$

51,363,580














LIABILITIES AND STOCKHOLDERS' EQUITY







Current Liabilities





Accounts and other payables

$

3,844,762

$

4,153,411

Short-term bank loans

2,504,866

2,773,199

Value-added tax payable

40,500

112,629

Warrants liability

31,011

59,202

Total Current Liabilities

6,421,139

7,098,441







Commitment and contingencies












Stockholders' Equity





Common stock, $0.001 par value, 100,000,000 shares authorized,
   2,210,913 shares issued and outstanding as of
   March 31, 2016 and December 31, 2015

2,210

2,210

Additional paid-in capital

30,316,774

30,316,774

Statutory reserve

7,354,413

7,354,413

Retained earnings

2,537,053

3,157,394

Accumulated other comprehensive income

3,743,603

3,434,348

Total Stockholders' Equity

43,954,053

44,265,139







Total Liabilities and Stockholders' Equity

$

50,375,192

$

51,363,580

BIOSTAR PHARMACEUTICALS, INC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)



Three Months Ended March 31,


2016

2015





Sales

$

801,627

$

6,908,747

Cost of sales

456,657

3,327,497

Gross profit

344,970

3,581,250







Operating expenses:





Advertising expenses

-

1,377,164

Selling expenses

323,066

1,299,717

General and administrative expenses

690,422

775,755

Research and development expenses

-

1,018,612

Total operating expenses

1,013,488

4,471,248







Loss from operations

(668,518)

(889,998)







Other (expense) income





Interest income

-

322,345

Interest expense

(38,239)

(61,455)

Fair value adjustment on warrants

28,191

(9,867)

 Total other (expense) income, net

(10,048)

251,023







Loss before income taxes

(678,566)

(638,975)







Income tax benefit

58,225

478,871







Net loss

$

(620,341)

$

(160,104)







Other comprehensive income - foreign currency translation adjustment

309,255

381,065







Comprehensive (loss) income

$

(311,086)

$

220,961







Net loss per share





Basic

$

(0.28)

$

(0.07)

Diluted

$

(0.28)

$

(0.07)







Weighted average number of common shares outstanding





Basic

2,210,913

2,210,913

Diluted

2,210,913

2,210,913

BIOSTAR PHARMACEUTICALS, INC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



Three Months Ended
March 31,


2016

2015

CASH FLOWS FROM OPERATING ACTIVITIES



Net loss

$

(620,341)

$

(160,104)

Adjustments to reconcile net loss to net cash provided by operating activities:





Accrued interest income

-

(317,807)

Deferred tax benefit

(58,225)

(478,871)

Depreciation and amortization

316,877

487,437

Recognition of deferred research and development expenses

-

1,018,612

Warrants liability

(28,191)

9,867

Changes in operating assets and liabilities:





Accounts receivable

1,190,484

2,468,538

Inventories

(56,422)

280,628

Deposits and other receivables

-

90,837

Accounts payable and accrued expenses

(329,503)

(320,825)

Value-added tax payable

(71,857)

(243,286)

Net cash provided by operating activities

342,822

2,835,026







CASH FLOWS FROM INVESTING ACTIVITIES





Deposit paid for intended acquisition

-

(1,629,779)

Purchase of property, plant and equipment

-

(30,646)

Net cash used in investing activities

-

(1,660,425)







CASH FLOWS FROM FINANCING ACTIVITIES





Repayment of short-term bank loans

(282,725)

(162,978)

Net cash used in financing activities

(282,725)

(162,978)







Effect of exchange rate changes on cash and cash equivalents

(7,513)

12,614







Net increase in cash and cash equivalents

52,584

1,024,237







Cash and cash equivalents, beginning balance

38,898

1,685,154

Cash and cash equivalents, ending balance

$

91,482

$

2,709,391







SUPPLEMENTAL DISCLOSURES:





Interest received

$

-

$

4,538

Interest paid

$

(38,239)

$

(61,455)

SOURCE Biostar Pharmaceuticals, Inc.

Related Links

http://www.biostarpharmaceuticals.com

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

icon3
440k+
Newsrooms &
Influencers
icon1
9k+
Digital Media
Outlets
icon2
270k+
Journalists
Opted In
GET STARTED