v2.4.0.8
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
NOTE 18. SEGMENT REPORTING
 
The Company defined reportable segments according to ASC Topic 280. The segments, including corn division, grain division and bulk trading division, are identified primarily based on the structure of allocating resources and assessing performance of the group.
 
The corn division is in the business of purchasing corn from farmers, simple processing and distributing to agricultural product trading companies through wholesale. The business of the grain division is conducted by processing and distributing grains and other products. The business of the bulk trading division is conducted by bulk purchasing and the sale of raw grain.
 
For the six months
ended
 
Corn
 
Grain
 
Bulk Trading
 
 
 
 
 
 
June 30, 2014
 
Division
 
Division
 
Division
 
Others
 
Total
 
Revenues from external customers
 
$
16,793,595
 
$
15,159,046
 
$
583,567
 
 
 
$
32,536,208
 
Loss on inventory valuation reserve
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intersegment revenues
 
 
-
 
 
-
 
 
-
 
-
 
 
-
 
Interest revenue
 
 
1,196
 
 
525
 
 
150
 
87
 
 
1,959
 
Interest expense
 
 
(210,244)
 
 
(180,001)
 
 
-
 
(438)
 
 
(390,682)
 
Net interest (expense) income
 
 
(209,048)
 
 
(179,476)
 
 
150
 
(350)
 
 
(388,723)
 
Depreciation and amortization
 
 
(290,267)
 
 
(755,118)
 
 
(2,326)
 
(101,886)
 
 
(1,149,597)
 
Noncontrolling interest
 
 
-
 
 
-
 
 
-
 
307
 
 
307
 
Segment net profit (loss)
 
 
(9,501,165)
 
 
(693,669)
 
 
(747,339)
 
(1,260,412)
 
 
(12,202,585)
 
 
For the three months
ended
 
Corn
 
Grain
 
Bulk Trading
 
 
 
 
 
 
 
June 30, 2014
 
Division
 
Division
 
Division
 
Others
 
Total
 
Revenues from external customers
 
$
8,463,058
 
$
8,499,830
 
$
-
 
$
-
 
$
16,962,888
 
Loss on inventory valuation reserve
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Intersegment revenues
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Interest revenue
 
 
502
 
 
312
 
 
33
 
 
32
 
 
879
 
Interest expense
 
 
(105,193)
 
 
(89,620)
 
 
-
 
 
(216)
 
 
(195,029)
 
Net interest (expense) income
 
 
(104,692)
 
 
(89,308)
 
 
33
 
 
(185)
 
 
(194,151)
 
Depreciation and amortization
 
 
(141,695)
 
 
(353,533)
 
 
(1,150)
 
 
(50,573)
 
 
(546,951)
 
Noncontrolling interest
 
 
-
 
 
-
 
 
-
 
 
148
 
 
148
 
Segment net profit (loss)
 
 
(1,756,995)
 
 
(436,142)
 
 
(68,550)
 
 
(624,840)
 
 
(2,866,527)
 
 
For the six months ended
 
Corn
 
Grain
 
Bulk Trading
 
 
 
 
 
 
 
June 30, 2013
 
Division
 
Division
 
Division
 
Others
 
Total
 
Revenues from external customers
 
$
71,123,730
 
$
22,739,314
 
$
46,914,771
 
$
-
 
$
140,777,815
 
Loss on inventory valuation reserve
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intersegment revenues
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Interest revenue
 
 
5,999
 
 
2,089
 
 
5,300
 
 
284
 
 
13,672
 
Interest expense
 
 
(209,503)
 
 
(142,556)
 
 
(51,222)
 
 
 
 
 
(403,281)
 
Net interest (expense) income
 
 
(203,504)
 
 
(140,467)
 
 
(45,922)
 
 
284
 
 
(389,609)
 
Depreciation and amortization
 
 
(259,086)
 
 
(830,360)
 
 
(1,856)
 
 
(104,420)
 
 
(1,195,722)
 
Noncontrolling interest
 
 
-
 
 
-
 
 
-
 
 
3,804
 
 
3,804
 
Segment net profit (loss)
 
 
539,287
 
 
1,748,091
 
 
607,715
 
 
(3,633,689)
 
 
(738,596)
 
 
For the three months
ended
 
Corn
 
Grain
 
Bulk Trading
 
 
 
 
 
 
 
June 30, 2013
 
Division
 
Division
 
Division
 
Others
 
Total
 
Revenues from external customers
 
$
35,697,746
 
$
10,378,212
 
$
17,534,143
 
$
-
 
$
63,610,101
 
Loss on inventory valuation reserve
 
 
-
 
 
-
 
 
 
 
 
 
 
 
-
 
Intersegment revenues
 
 
 
 
 
-
 
 
-
 
 
-
 
 
 
 
Interest revenue
 
 
2,225
 
 
1,354
 
 
1,939
 
 
54
 
 
5,572
 
Interest expense
 
 
(124,226)
 
 
(78,198)
 
 
(25,153)
 
 
-
 
 
(227,577)
 
Net interest (expense) income
 
 
(122,001)
 
 
(76,844)
 
 
(23,214)
 
 
54
 
 
(222,005)
 
Depreciation and amortization
 
 
(137,237)
 
 
(395,211)
 
 
(1,164)
 
 
(62,695)
 
 
(596,307)
 
Noncontrolling interest
 
 
-
 
 
-
 
 
-
 
 
185
 
 
185
 
Segment net profit (loss)
 
 
(1,389,995)
 
 
565,116
 
 
(357,732)
 
 
(2,771,473)
 
 
(3,954,084)
 
 
Since April 2014, our grain business includes direct exporting the organic bean-based products to countries including the U.S., Australia, Canada, Israel, and Denmark. The export businesses were denominated in US Dollar. All long-lived assets are located in China. The following tables set forth our three major customers in each segment:
 
 
 
For the Six Months Ended
 
 
 
June 30,
 
Corn Division :
 
2014
 
 
2013
ShuangliuZhengda Co., Ltd.
 
8.6
%
 
3.5
%
Guangdong Wen’s poultry Co., Ltd.
 
5.5
%
 
0.9
%
Chengdu Golden bean Animal Nutrition Food Co., Ltd.
 
3.6
%
 
4.2
%
Top Three Customers as % of Total Gross Sales:
 
17.7
%
 
8.6
%
 
 
 
 
 
 
 
Grain Division :
 
 
 
 
 
 
Deyufang Innovation Food (Beijing) Co., Ltd.
 
71.3
%
 
48.3
%
Ethical Food SA
 
14.1
%
 
0.0
%
YuciKaiwang Grain and oil wholesale Department
 
1.0
%
 
0.0
%
Top Three Customers as % of Total Gross Sales
 
86.4
%
 
48.3
%
 
 
 
 
 
 
 
Bulk Trading Division :
 
 
 
 
 
 
Shanxi Helifeihua Trading Co., Ltd.
 
48.3
%
 
12.3
%
Shenzhen XinJiawang Agricultural By-products development Co. Ltd.
 
25.3
%
 
4.2
%
YuchiKaiwang Grain and Oil Wholesale Department
 
19.0
%
 
7.7
%
Top Three Customers as % of Total Gross Sales:
 
92.6
%
 
24.4
%