v2.4.0.8
SEGMENT REPORTING
 9 Months Ended
Sep. 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 Nine months ended
 
Corn
 
Grain
 
Bulk Trading
 
 
 
 
 
 
September 30, 2014
 
Division
 
Division
 
Division
 
 
Others
 
Total
 
Revenues from external customers
 
$
45,417,926
 
$
24,354,578
 
$
583,700
 
 
-
 
$
70,356,204
 
Loss on inventory valuation reserve
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Intersegment revenues
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Interest revenue
 
 
2,215
 
 
1,964
 
 
187
 
 
149
 
 
4,516
 
Interest expense
 
 
(322,108)
 
 
(268,895)
 
 
-
 
 
(657)
 
 
(591,660)
 
Net interest (expense) income
 
 
(319,893)
 
 
(266,931)
 
 
187
 
 
(507)
 
 
(587,145)
 
Depreciation and amortization
 
 
(423,680)
 
 
(1,014,046)
 
 
(3,490)
 
 
(152,999)
 
 
(1,594,215)
 
Noncontrolling interest
 
 
-
 
 
-
 
 
-
 
 
604
 
 
604
 
Segment net profit (loss)
 
 
(11,398,376)
 
 
(444,052)
 
 
(487,235)
 
 
(2,198,336)
 
 
(14,527,999)
 
 
For the three months ended
 
Corn
 
Grain
 
Bulk Trading
 
 
 
 
 
 
 
September 30, 2014
 
Division
 
Division
 
Division
 
Others
 
Total
 
Revenues from external customers
 
$
28,624,331
 
$
9,195,665
 
$
-
 
$
-
 
$
37,819,996
 
Loss on inventory valuation reserve
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Intersegment revenues
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Interest revenue
 
 
1,019
 
 
1,439
 
 
36
 
 
63
 
 
2,557
 
Interest expense
 
 
(111,864)
 
 
(88,894)
 
 
-
 
 
(219)
 
 
(200,978)
 
Net interest (expense) income
 
 
(110,846)
 
 
(87,455)
 
 
36
 
 
(157)
 
 
(198,421)
 
Depreciation and amortization
 
 
(133,413)
 
 
(258,928)
 
 
(1,164)
 
 
(51,113)
 
 
(444,618)
 
Noncontrolling interest
 
 
-
 
 
-
 
 
-
 
 
297
 
 
297
 
Segment net profit (loss)
 
 
(1,897,211)
 
 
249,617
 
 
260,104
 
 
(937,924)
 
 
(2,325,414)
 
 
For the Nine months ended
 
Corn
 
Grain
 
Bulk Trading
 
 
 
 
 
 
 
September 30, 2013
 
Division
 
Division
 
Division
 
Others
 
Total
 
Revenues from external customers
 
$
118,737,234
 
$
32,675,928
 
$
57,704,021
 
$
-
 
$
209,117,183
 
Loss on inventory valuation reserve
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intersegment revenues
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Interest revenue
 
 
7,397
 
 
2,640
 
 
6,490
 
 
16,621
 
 
33,148
 
Interest expense
 
 
(319,356)
 
 
(226,329)
 
 
(47,779)
 
 
 
 
 
(593,464)
 
Net interest (expense) income
 
 
(311,959)
 
 
(223,689)
 
 
(41,289)
 
 
16,621
 
 
(560,316)
 
Depreciation and amortization
 
 
(363,886)
 
 
(1,238,322)
 
 
(3,025)
 
 
(160,998)
 
 
(1,766,231)
 
Noncontrolling interest
 
 
-
 
 
-
 
 
-
 
 
3,998
 
 
3,998
 
Segment net profit (loss)
 
 
(4,324,670)
 
 
(1,285,227)
 
 
376,918
 
 
(10,615,381)
 
 
(15,848,360)
 
 
For the three months ended
 
Corn
 
Grain
 
Bulk Trading
 
 
 
 
 
 
 
September 30, 2013
 
Division
 
Division
 
Division
 
Others
 
Total
 
Revenues from external customers
 
$
47,613,504
 
$
9,936,614
 
$
10,789,250
 
$
-
 
$
68,339,368
 
Loss on inventory valuation reserve
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Intersegment revenues
 
 
 
 
 
-
 
 
-
 
 
-
 
 
-
 
Interest revenue
 
 
1,398
 
 
552
 
 
1,189
 
 
16,337
 
 
19,476
 
Interest expense
 
 
(109,853)
 
 
(83,772)
 
 
3,442
 
 
-
 
 
(190,183)
 
Net interest (expense) income
 
 
(108,455)
 
 
(83,220)
 
 
4,631
 
 
16,337
 
 
(170,707)
 
Depreciation and amortization
 
 
(104,800)
 
 
(407,962)
 
 
(1,169)
 
 
(56,578)
 
 
(570,509)
 
Noncontrolling interest
 
 
-
 
 
-
 
 
-
 
 
194
 
 
194
 
Segment net profit (loss)
 
 
(4,863,957)
 
 
(3,033,318)
 
 
(230,797)
 
 
(6,981,692)
 
 
(15,109,764)
 
 
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 Nine Months Ended
 
 
 
September 30,
 
Corn Division :
 
2014
 
2013
 
Guangdong Wen’s poultry Co., Ltd.
 
 
5.4
%
 
0.6
%
Chengdu Zhengda Co., Ltd.
 
 
5.3
%
 
3.7
%
Shuangliu Zhengda Co., Ltd.
 
 
4.5
%
 
2.1
%
Top Three Customers as % of Total Gross Sales:
 
 
15.2
%
 
6.3
%
 
 
 
 
 
 
 
 
Grain Division :
 
 
 
 
 
 
 
Deyufang Innovation Food (Beijing) Co., Ltd.
 
 
66.5
%
 
51.4
%
Ethical Food SA
 
 
14.9
%
 
0.0
%
Jingzhong Shengde Grain Trading Co., Ltd.
 
 
2.2
%
 
0.0
%
Top Three Customers as % of Total Gross Sales
 
 
83.7
%
 
51.4
%
 
 
 
 
 
 
 
 
Bulk Trading Division :
 
 
 
 
 
 
 
Yuci Kaiwang Grain and Oil Wholesale Department
 
 
19.0
%
 
7.7
%
Shenzhen XinJiawang Agricultural By-products development Co. Ltd.
 
 
25.3
%
 
4.2
%
Shanxi Helifeihua Trading Co., Ltd.
 
 
48.3
%
 
12.5
%
Top Three Customers as % of Total Gross Sales:
 
 
92.6
%
 
24.4
%