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SEGMENT REPORTING
 12 Months Ended
Sep. 30, 2020
SEGMENT REPORTING  
SEGMENT REPORTING

NOTE 14 – SEGMENT REPORTING

ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different products. Based on management’s assessment, the Company has determined that it has three operating segments as defined by ASC 280.

The Company mainly manufactures and distributes active pharmaceutical ingredients and TCMD products as well as other by-products in China. Currently no revenue is derived from international markets. The following table presents segment information for years ended September 30, 2020, 2019 and 2018, respectively:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended September 30, 2020

 

 

Oxytetracycline 

 

 

 

 

 

 

 

 

 

 

 

& Licorice 

 

 

 

 

Heparin 

 

 

 

 

 

products and 

 

 

 

 

products and

 

 

 

 

 

TCMD

 

Fertilizer

 

Sausage casing

 

Total

Revenue

    

$

32,602,384

    

$

701,701

    

$

16,729,115

    

$

50,033,200

Cost of revenue

 

 

25,004,712

 

 

304,670

 

 

17,184,665

 

 

42,494,047

Gross profit

 

$

7,597,672

 

$

397,031

 

$

(455,550)

 

$

7,539,153

Depreciation and amortization

 

$

886,322

 

$

38,792

 

$

180,473

 

$

1,105,587

Capital expenditures

 

$

377,953

 

$

33,914

 

$

37,898

 

$

449,765

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended September 30, 2019

 

 

Oxytetracycline 

 

 

 

 

 

 

 

 

 

 

& Licorice 

 

 

 

 

Heparin 

 

 

 

 

 

products and 

 

 

 

 

products and 

 

 

 

 

 

TCMD

 

Fertilizer

 

Sausage casing

 

Total

Revenue

    

$

30,149,950

    

$

549,231

    

$

15,397,503

    

$

46,096,684

Cost of revenue

 

 

22,324,422

 

 

186,504

 

 

13,905,846

 

 

36,416,772

Gross profit

 

$

7,825,528

 

$

362,727

 

$

1,491,657

 

$

9,679,912

Depreciation and amortization

 

$

985,212

 

$

38,525

 

$

164,436

 

$

1,188,173

Capital expenditures

 

$

331,917

 

$

5,598

 

$

278,873

 

$

616,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended September 30, 2018

 

 

Oxytetracycline 

 

 

 

 

 

 

 

 

 

 

 

& Licorice 

 

 

 

 

Heparin 

 

 

 

 

 

products and 

 

 

 

 

products and 

 

 

 

 

 

TCMD

 

Fertilizer

 

Sausage casing

 

Total

Revenue

    

$

33,429,330

    

$

713,896

    

$

16,225,787

    

$

50,369,013

Cost of revenue

 

 

26,159,584

 

 

235,319

 

 

15,841,870

 

 

42,236,773

Gross profit

 

$

7,269,746

 

$

478,577

 

$

383,917

 

$

8,132,240

Depreciation and amortization

 

$

1,070,824

 

$

38,057

 

$

145,177

 

$

1,254,098

Capital expenditures

 

$

628,604

 

$

486,501

 

$

16,225,787

 

$

1,117,175

 

 

 

 

 

 

 

 

 

    

September 30,

    

September 30,

 

 

2020

 

2019

Total Assets

 

 

  

 

 

  

Oxytetracycline & Licorice products and TCMD

 

$

34,370,665

 

$

23,251,452

Fertilizer

 

$

2,438,442

 

$

2,149,680

Heparin products and Sausage casing

 

$

11,334,031

 

$

9,867,112

Total

 

$

48,143,138

 

$

35,268,244