2870
|
20-3912942
|
(Primary
Standard Industrial
Classification
Code Number)
|
(I.R.S.
Employer Identification
Number)
|
Large
accelerated filer o
|
Accelerated
filer o
|
|
Non-accelerated
filer o
|
Smaller
reporting company x
|
Title of each class of securities to be registered
|
Amount to be
registered
|
Proposed
maximum
offering
price per
share (5)
|
Proposed
maximum
aggregate offering
price
|
Amount of
registration fee
|
||||||||||
Common
stock underlying convertible notes, par value $0.001 per share
(1)
|
1,000,000 shares
|
$
|
0.14
|
$
|
140,000
|
$
|
5.50
|
|||||||
Common
stock underlying investor warrants, par value $0.001 per share
(2)
|
500,000 shares
|
$
|
0.14
|
$
|
70,000
|
$
|
2.75
|
|||||||
Common
stock underlying placement agent warrants, par value $0.001 per share
(3)
|
80,000 shares
|
0.14
|
$
|
11,200
|
$
|
0.44
|
||||||||
Common
stock underlying underwriter warrants, par value $0.001 per share
(4)
|
37,980
shares
|
$
|
0.14
|
$
|
5,317.20
|
$
|
0.21
|
|||||||
Total
|
1,617,980 shares
|
$
|
0.14
|
$
|
226,517.20
|
$
|
8.90
|
Prospectus
Summary
|
3
|
The
Offering
|
3
|
Risk
Factors
|
4
|
Forward
Looking Statements
|
|
Business
|
|
Management's
Discussion and Analysis of Financial Condition or Plan of
Operations
|
14
|
Market
for Registrant's Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
19
|
Dividend
Policy
|
|
Selling
Security holders
|
20
|
Management
|
|
Certain
Relationships and Related Transactions
|
|
Plan
of Distribution
|
25
|
Description
of Capital Stock
|
|
Legal
Matters
|
26
|
Experts
|
27
|
Where
You Can Find Additional Information
|
27
|
Consolidated
Financial Statements
|
F-1
|
The
Offering
|
||
Shares
of common stock offered by the selling security holders
|
Up
to 1,617,980 shares of common stock, including (i) 500,000 Investor
Warrant Shares (ii) 80,000 Placement Agent Warrant Shares, (iii) 37,980
Underwriter Warrant Shares and (iv) 1,000,000 Conversion Shares. Assuming
the full conversion of all of the Notes, and the full exercise of the
Investor Warrants and the Placement Agent Warrants, the shares being
registered would represent approximately 11% of our outstanding common
stock. (1)
|
|
Common
stock to be outstanding after the offering
|
Up
to 14,576,554 shares, assuming the conversion of all of the Notes,
and the exercise of all of the Warrants. (1)
|
|
Use
of proceeds
|
China
Agri will not receive any proceeds from the sale of the shares of common
stock offered by the selling security holders to the public. However,
China Agri will receive proceeds from any cash exercise of the Warrants by
selling security holders. Any such proceeds will be used to support the
Company's expansion plans and for working
capital.
|
OTCBB
Ticker Symbol
|
CHBU
|
China
Agri-Business, Inc.
|
||
|
|
100%
ownership
|
|
|
||
Mei
Xin Agri Technology
(Shaanxi)
Co., Ltd.
|
—————————————————
Contractual
Relationship
(Management
Entrustment Agreement)
|
Shaanxi
Xin Sheng Centennial
Agricultural and Technology Co., Ltd. |
Product Brand Name
|
|
Description and Functionality
|
|
Plant Suitability
|
Price*
|
|
Xinsheng
Luyuan
|
A
line of fertilizer product whose primary function is to increase
agricultural production.
|
Wheat,
Rice, Maize, Tobacco, Cotton, Melons and various other fruits
and vegetables.
|
$ 61.56/Box
|
|||
Xinsheng
Lufeng
|
A
line of organic soil amendment products whose primary function is as a
bactericide.
|
Tomatoes
and Apples.
|
$ 38.69/Box
|
|||
Xinsheng
Huang-jin-gai
|
A
line of amino acid fertilizer products designed to help crops absorb
calcium and to improve their overall quality.
|
Tomatoes
and Apples.
|
$ 32.25/Box
|
|||
Xinsheng
Jia-tian-xia
|
A
line of humic acid fertilizer products designed improve the overall
quality of crops
|
Maize,
Cotton, Apples, Tomatos, Watermelon, and various other fruits and
melons.
|
$ 32.25/Box
|
|||
Xinsheng
Bai-le
|
A
line of amino acid fertilizer products designed to provide supplementary
micro-nutrients to crops and to help crops grow with balanced
nutrition.
|
Maize,
Cotton, Apples, Tomatos, Watermelon, and various other fruits
& melons.
|
$ 26.38/Box
|
Registration
No.
|
Trademark/Product
Name
|
Expiration
Date
|
||
No.
(2004) 1485
|
Xinsheng
Luyuan
|
September
2009
|
||
No.
(2004) 1542
|
Xinsheng
Lufeng
|
October
2009
|
||
No.
(2007) 2968
|
Xinsheng
Huang-jin-gai
|
December
2009
|
||
No.
(2007) 2969
|
Xinsheng
Bai-le
|
December
2009
|
||
No.
(2007) 2970
|
Xinsheng
Jia-tian-xia
|
December
2009
|
Company
Name
|
Location
within PRC
|
|
Weifang
Xinde Bio-tech Co., Ltd.
|
Shandong
Province
|
|
Shaanxi
Haide'er Bio-tech Co., Ltd.
|
Shaanxi
Province
|
|
Weifang
Hengsheng Bio-tech Co., Ltd.
|
Shandong
Province
|
|
Zhejiang
Lanhai Bio-engineering Co., Ltd.
|
Zhejiang
Province
|
|
Aiwo
Beijing Agricultural Technology Co., Ltd.
|
Beijing
City
|
|
China
Green Agriculture, Inc.
|
Shaanxi
Province
|
|
Shandong
Dongyan Kefeng Bio-tech Co., Ltd.
|
Shangdong
Province
|
|
Shandong
Tianda Bio-tech Co., Ltd.
|
Shangdong
Province
|
|
Guangxi
Beihai Guofa Bio-tech Co., Ltd.
|
Guangxi
Province
|
Trademark
|
Registration
Number
|
Expiration
Date
|
||
Xinsheng
Shi ji
|
3412688
|
July
2014
|
||
Xinsheng
Luyuan
|
4734942
|
September
2015
|
||
Xinsheng
Lufeng
|
4734940
|
September
2015
|
||
Xinsheng
Huang-jin-gai
|
6213163
|
August
2022
|
||
Xinsheng
Bai-le
|
6212924
|
August
2022
|
||
Xinsheng
Jia-tian-xia
|
6213164
|
August
2022
|
||
New
Agriculture - Generator
|
6952690
|
September
2023
|
2008
|
2007
|
|||||||
Sales
|
$
|
2,922,385
|
$
|
3,037,414
|
||||
Cost
of Goods Sold
|
817,472
|
964,961
|
||||||
Gross
Profit
|
$
|
2,104,913
|
$
|
2,072,453
|
||||
Gross
Profit Margin
|
72.03
|
%
|
68.23
|
%
|
2008
|
2007
|
|||||||
Gross
Profit
|
$
|
2,104,913
|
$
|
2,072,453
|
||||
Selling
and marketing
|
316,272
|
146,178
|
||||||
Professional
fees
|
174,869
|
473,809
|
||||||
Depreciation
and amortization expenses
|
60,947
|
61,793
|
||||||
Other
general and administrative
|
177,190
|
347,450
|
||||||
Total
general and administrative
|
729,278
|
1,029,230
|
||||||
Income
from operations
|
1,375,635
|
1,043,223
|
||||||
Interest
expense
|
(58,403
|
)
|
-
|
|||||
Interest
income
|
28,107
|
15,659
|
||||||
Net
Income
|
$
|
1,345,339
|
$
|
1,058,882
|
High Sales
Price
|
Low Sales
Price
|
|||||||
|
|
|||||||
Year
Ended December 31, 2009:
|
|
|
||||||
1
st
Quarter (through March 26, 2009)
|
$ | 0.25 | $ | 0.10 | ||||
Year
Ended December 31, 2008:
|
||||||||
4
th
Quarter
|
$ | 0.55 | $ | 0.10 | ||||
3
rd
Quarter
|
$ | 0.51 | $ | 0.25 | ||||
2
nd
Quarter
|
$ | 1.50 | $ | 0.42 | ||||
1
st
Quarter
|
$ | 1.00 | $ | 0.40 | ||||
Year
Ended December 31, 2007:
|
||||||||
4
th
Quarter (from October 17, 2007 to December 31, 2007)
|
$ | 2.00 | $ | 0.62 |
Name
|
Total Shares
Issuable Upon
Conversion of
Notes
Plus shares
Issuable Upon
Exercise of
Warrants (1)
|
Total
Percentage
of Common
Stock,
Assuming
Full
Exercise (1)
|
Shares of
Common Stock
Included in
Prospectus
(2)
|
Beneficial
Ownership
Before the
Offering (3)
|
Percentage of
Common Stock
Owned Before
Offering (3)
|
Beneficial
Ownership
After the
Offering
(4)
|
Percentage
of Common
Stock Owned
After
Offering
(4)
|
||||||||||||||||||
JAG
Multi Investment (5)
|
750,000
|
5.2
|
%
|
750,000
|
750,000
|
5.2
|
%
|
—
|
—
|
||||||||||||||||
Keith
Guenther (6)
|
750,000
|
5.2
|
%
|
750,000
|
750,000
|
5.2
|
%
|
—
|
—
|
||||||||||||||||
Legend
Merchant Group, Inc. (7)
|
80,000
|
*
|
80,000
|
80,000
|
*
|
—
|
—
|
||||||||||||||||||
Spencer
Edwards, Inc. (8)
|
37,980
|
*
|
37,980
|
37,980
|
*
|
—
|
—
|
||||||||||||||||||
TOTALS
|
1,617,980
|
1,617,980
|
1,617,980
|
NAME
|
POSITION
|
AGE
|
||
Liping
Deng
|
Director,
Chief Executive Officer and President
|
37
|
||
Limin
Deng
|
Chairman
of Board of Directors
|
46
|
||
Xiaolong
Zhou
|
Chief
Financial Officer
|
56
|
||
Michael
Segal
|
Director
|
66
|
NAME
|
POSITION
|
AGE
|
||
Liping
Deng
|
Chairman
of Board of Directors
|
37
|
||
Limin
Deng
|
Vice-Chairman
of Board of Directors
|
46
|
||
Zhengfeng
Guo
|
Director
|
39
|
NAME
|
POSITION
|
AGE
|
||
Liping
Deng
|
Director,
and President
|
37
|
||
Limin
Deng
|
Chairman
of Board of Directors
|
46
|
||
Hong
Cai
|
Director
and Finance Manager
|
42
|
||
Yi
Fu
|
Director
and Vice President
|
36
|
||
Mengzhou
Li
|
Director
|
45
|
·
|
each
person known by us to be the beneficial owner of more than 5% of our
outstanding shares of common stock;
|
|
·
|
each
of our officers and directors; and
|
|
·
|
all
our officers and directors as a
group.
|
Name of Beneficial Owner
|
Amount and
Nature of
Beneficial
Ownership (1)
|
Percent of
Class
|
||||||
Michael
Segal
11
East 86th Street
New
York, New York 10028
|
63,074
|
0.5
|
%
|
|||||
Liping
Deng
|
1,851,148
|
14.3
|
||||||
Liming
Deng
|
—
|
—
|
||||||
Xiaolong
Zhou
|
—
|
—
|
||||||
All
Directors and Executive Officers as a group (4
persons)
|
1,914,222
|
14.8
|
||||||
Trustees
for Xinsheng Shareholders (2)
|
9,099,749
|
70.2
|
||||||
JAG
Multi Investment (3)
|
750,000
|
5.8
|
||||||
Keith
Guenther (3)
|
750,000
|
5.8
|
Name and Principal
Position
(a)
|
Year
(b)
|
Salary
($)
(c)
|
Bonus
($)
(d)
|
Stock
Awards
($)
(e)
|
Option
Awards
($)
(f)
|
Non-Equity
Incentive
Plan
Compensation
($)
(g)
|
Change in
Pension
Value and
Nonqualified
Deferred
Compensation
Earnings
($)
(h)
|
All Other
Compensation
($)
(i)
|
Total
($)
(j)
|
||||||||||||||
Liping
Deng
Chief
Executive Officer (1)
|
2008
|
6,260
|
—
|
—
|
—
|
—
|
—
|
—
|
6,260
|
||||||||||||||
2007
|
5,260
|
—
|
—
|
—
|
—
|
—
|
—
|
5,260
|
|||||||||||||||
Xiaolong
Zhou
Chief
Financial Officer (2)
|
2008
|
45,000
|
—
|
—
|
—
|
—
|
—
|
—
|
45,000
|
||||||||||||||
2007
|
33,750
|
—
|
—
|
—
|
—
|
—
|
—
|
33,750
|
Name
(a)
|
Fees
Earned or
Paid in
Cash
($)
(b)
|
Stock
Awards
($)
(c)
|
Option
Awards
($)
(d)
|
Non-Equity
Incentive
Plan
Compensation
($)
(e)
|
Non-Qualified
Deferred
Compensation
Earnings
($)
(f)
|
All
Other
Compensation
($)
(g)
|
Total
($)
(j)
|
||||||||||||||||||
Limin
Deng
|
6,332
|
—
|
—
|
—
|
—
|
—
|
6,332
|
||||||||||||||||||
Michael
Segal
|
18,000
|
—
|
—
|
—
|
—
|
—
|
18,000
|
•
|
ordinary brokerage transactions
and transactions in which the broker-dealer solicits
purchasers;
|
•
|
block trades in which the
broker-dealer will attempt to sell the shares as agent but may position
and resell a portion of the block as principal to facilitate the
transaction;
|
•
|
purchases by a broker-dealer as
principal and resale by the broker-dealer for its
account;
|
•
|
an exchange distribution in
accordance with the rules of the applicable
exchange;
|
•
|
privately negotiated
transactions;
|
•
|
settlement of short sales entered
into after the effective date of the registration statement of which this
prospectus is a part;
|
•
|
broker-dealers may agree with the
selling security holders to sell a specified number of such shares at a
stipulated price per share;
|
•
|
through the writing or settlement
of options or other hedging transactions, whether through an options
exchange or otherwise;
|
•
|
a combination of any such methods
of sale; or
|
•
|
any other method permitted
pursuant to applicable law.
|
Page
|
||
Report
of Independent Registered Public Accounting Firm
|
F-1
|
|
Consolidated
Balance Sheets as of December 31, 2008 and 2007
|
F-2
|
|
Consolidated
Statements of Operations for the Years ended December 31, 2008 and
2007
|
F-3
|
|
Consolidated
Statements of Stockholders’ Equity for the Years ended December 31, 2008
and 2007
|
F-4
|
|
Consolidated
Statements of Cash Flows for the Years ended December 31, 2008 and
2007
|
F-5
|
|
Notes
to Consolidated Financial Statements
|
F-6
- F-17
|
|
/s/
Michael
T. Studer, CPA, P.C.
|
|||
|
Michael
T. Studer, CPA, P.C.
|
|||
|
|
2008
|
2007
|
|||||||
Assets
|
||||||||
Current
Assets
|
||||||||
Cash
and cash equivalents
|
$ | 8,312,636 | $ | 5,984,448 | ||||
Accounts
receivable, net of allowance for doubtful accounts of $6,524
and $23,991, respectively
|
45,165 | 65,118 | ||||||
Inventory
|
47,113 | 60,582 | ||||||
Other
receivables
|
7,329 | 6,855 | ||||||
Prepaid
expenses
|
22,345 | 5,735 | ||||||
Total Current
Assets
|
8,434,588 | 6,122,738 | ||||||
Property,
plant and equipment, net
|
231,278 | 276,000 | ||||||
Investment
in Tienwe Technology
|
879,420 | 822,540 | ||||||
Deferred
financing costs, net of accumulated amortization of $28,403 and $0,
respectively
|
178,879 | - | ||||||
Intangible
assets, net
|
59,495 | 73,554 | ||||||
Total
Assets
|
$ | 9,783,660 | $ | 7,294,832 | ||||
Liabilities
and Stockholders' Equity
|
||||||||
Current
Liabilities
|
||||||||
Accounts
payable and accrued liabilities
|
$ | 234,007 | $ | 166,200 | ||||
Total Current Liabilities
|
234,007 | 166,200 | ||||||
Long
Term Liabilities
|
||||||||
Convertible
notes, net
|
327,020 | - | ||||||
Total Liabilities
|
561,027 | 166,200 | ||||||
Stockholders'
Equity
|
||||||||
Undesignated
preferred stock, par value $.001 per share; authorized 4,900,000 shares;
none issued
|
- | - | ||||||
Common
stock, par value $.001 per share; authorized 100,000,000 shares, issued
and outstanding 12,958,574 and 12,958,574 shares,
respectively
|
12,959 | 12,959 | ||||||
Additional
paid-in capital
|
4,369,786 | 4,150,636 | ||||||
Retained
earnings
|
3,654,212 | 2,308,873 | ||||||
Accumulated
other comprehensive income
|
1,185,676 | 656,164 | ||||||
Total stockholders' equity
|
9,222,633 | 7,128,632 | ||||||
Total Liabilities and
Stockholders' Equity
|
$ | 9,783,660 | $ | 7,294,832 |
2008
|
2007
|
|||||||
Sales
of products
|
$ | 2,922,385 | $ | 3,037,414 | ||||
Cost
of goods sold
|
817,472 | 964,961 | ||||||
Gross
profit
|
2,104,913 | 2,072,453 | ||||||
Selling,
general and administrative expenses
|
729,278 | 1,029,230 | ||||||
Income
from operations
|
1,375,635 | 1,043,223 | ||||||
Interest
and other income
|
28,107 | 15,659 | ||||||
Interest
expense
|
(58,403 | ) | - | |||||
Income
before income taxes
|
1,345,339 | 1,058,882 | ||||||
Income
taxes
|
- | - | ||||||
Net
income
|
1,345,339 | 1,058,882 | ||||||
Deemed
dividend relating to beneficial conversion feature of Series A preferred
stock
|
- | (200,000 | ) | |||||
Net
income attributable to common stockholders
|
$ | 1,345,339 | $ | 858,882 | ||||
Earnings
per common share:
|
||||||||
Basic
|
$ | 0.10 | $ | 0.07 | ||||
Diluted
|
$ | 0.10 | $ | 0.07 | ||||
Weighted
average number of common shares used to compute earnings per common
share:
|
||||||||
Basic
|
12,958,574 | 12,431,496 | ||||||
Diluted
|
13,216,108 | 12,664,099 |
Common
Stock
Shares
|
Common
Stock
Amount
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income
|
Total
|
|||||||||||||||||||
Balance,
December 31, 2006
|
12,278,774 | $ | 12,279 | $ | 3,629,709 | 1,449,991 | $ | 232,272 | $ | 5,324,251 | ||||||||||||||
Sales
of Units in public offering
|
379,800 | 380 | 379,420 | - | - | 379,800 | ||||||||||||||||||
Costs
relating to the public offering
|
- | - | (158,193 | ) | - | - | (158,193 | ) | ||||||||||||||||
Conversion
of Series A preferred stock
|
300,000 | 300 | 99,700 | - | - | 100,000 | ||||||||||||||||||
Deemed
dividend relating to beneficial conversion feature of Series A
preferred stock
|
- | - | 200,000 | (200,000 | ) | - | - | |||||||||||||||||
Net
income for the year ended December 31, 2007
|
- | - | - | 1,058,882 | - | 1,058,882 | ||||||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | - | 423,892 | 423,892 | ||||||||||||||||||
Balance,
December 31, 2007
|
12,958,574 | 12,959 | 4,150,636 | 2,308,873 | 656,164 | 7,128,632 | ||||||||||||||||||
Relative
fair value of warrants and beneficial conversion feature included in sale
of convertible notes
|
- | - | 199,230 | - | - | 199,230 | ||||||||||||||||||
Fair
value of Placement Agent warrants
|
- | - | 19,920 | - | - | 19,920 | ||||||||||||||||||
Net
income for the year ended December 31, 2008
|
- | - | - | 1,345,339 | - | 1,345,339 | ||||||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | - | 529,512 | 529,512 | ||||||||||||||||||
Balance,
December 31, 2008
|
12,958,574 | $ | 12,959 | $ | 4,369,786 | 3,654,212 | $ | 1,185,676 | $ | 9,222,633 |
2008
|
2007
|
|||||||
Operating
activities
|
||||||||
Net
income
|
$ | 1,345,339 | $ | 1,058,882 | ||||
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities:
|
||||||||
Bad
debt expense
|
(18,785 | ) | - | |||||
Depreciation
of property, plant and equipment
|
47,374 | 44,157 | ||||||
Amortization
of intangible assets and deferred financing costs
|
47,726 | 17,636 | ||||||
Amortization
of debt discount and fair value of warrants
|
26,250 | - | ||||||
Changes
in operating assets and liabilities:
|
||||||||
Decrease
in accounts receivable
|
37,420 | 38,726 | ||||||
(Increase)/decrease
in other receivable
|
(474 | ) | 11,621 | |||||
Decrease
in inventory
|
13,469 | 31,671 | ||||||
(Increase)/decrease
in prepaid expenses
|
(16,610 | ) | 16,402 | |||||
Increase
in accounts payable and accrued liabilities
|
67,807 | 114,924 | ||||||
Net
cash provided by operating activities
|
1,549,516 | 1,334,019 | ||||||
Investing
activities
|
||||||||
Loans
receivable collections
|
- | 301,447 | ||||||
Property,
plant and equipment additions
|
(5,300 | ) | (32,902 | ) | ||||
Net
cash (ussed in) provided by investing activities
|
(5,300 | ) | 268,545 | |||||
Financing
activities
|
||||||||
Proceeds
from public offering
|
- | 379,800 | ||||||
Costs
relating to public offering
|
- | (158,193 | ) | |||||
Proceeds
from convertible notes
|
500,000 | - | ||||||
Costs
relating to sale of convertible notes
|
(187,362 | ) | - | |||||
Net
cash provided by financing activities
|
312,638 | 221,607 | ||||||
Effect of exchange rate changes
on cash and cash equivalents
|
471,334 | 374,742 | ||||||
Increase
in cash and cash equivalents
|
2,328,188 | 2,198,913 | ||||||
Cash and cash equivalents,
beginning of period
|
5,984,448 | 3,785,535 | ||||||
Cash and cash equivalents, end
of period
|
$ | 8,312,636 | $ | 5,984,448 | ||||
Supplemental Disclosures of Cash Flow
Informtion:
|
||||||||
Non
Cash Financing Activities:
|
||||||||
Relative
fair value of warrants and beneficial conversion feature recorded as debt
discount and additional paid in capital
|
$ | 199,230 | $ | - | ||||
Fair
value of Placement Agent warrants recorded as deferred financing costs and
additional paid in capital
|
$ | 19,920 | $ | - |
2008
|
2007
|
|||||||
Weighted
average number of common shares outstanding (used to compute basic
EPS)
|
12,958,574 | 12,431,496 | ||||||
Assumed
conversion of redeemable Series A preferred stock - See Note
9
|
- | 232,603 | ||||||
Convertible
notes - See Note 8
|
257,534 | - | ||||||
Weighted
average number of common shares and dilutive common stock equivalents
outstanding (used to compute diluted EPS)
|
13,216,108 | 12,664,099 |
Inventory
consists of:
|
December
31,
|
December
31,
|
||||||
2008
|
2007
|
|||||||
Raw
materials
|
$ | 39,125 | $ | 52,953 | ||||
Finished
goods
|
4,536 | 5,342 | ||||||
Other
|
3,452 | 2,287 | ||||||
Total
inventory
|
$ | 47,113 | $ | 60,582 |
December
31,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
Building
|
$ | 19,699 | $ | 18,425 | ||||
Transportation
equipment
|
223,092 | 271,081 | ||||||
Manufacturing
equipment and machinery
|
146,034 | 123,798 | ||||||
Office
and computer equipment
|
3,508 | 16,448 | ||||||
392,333 | 429,752 | |||||||
Less
accumulated depreciation
|
161,055 | 153,752 | ||||||
Property,
plant and equipment, net
|
$ | 231,278 | $ | 276,000 |
December
31,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
Placement
Agent commissions
|
$ | 40,000 | $ | - | ||||
Placement
Agent expense allowance
|
25,000 | - | ||||||
Fair
value of Placement Agent warrants
|
19,920 | - | ||||||
Legal
and other fees
|
122,362 | - | ||||||
Total | 207,282 | - | ||||||
Less:
accumulated amortization
|
(28,403 | ) | - | |||||
Balance
at December 31, 2008
|
$ | 178,879 | $ | - |
December
31,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
Product
rights
|
$ | 90,141 | $ | 84,310 | ||||
Patent
|
14,657 | 13,709 | ||||||
Trademark
|
2,190 | 1,555 | ||||||
Total
|
106,988 | 99,574 | ||||||
Less
accumulated amortization
|
47,493 | 26,020 | ||||||
Intangible
assets, net
|
$ | 59,495 | $ | 73,554 |
December
31,
2008
|
December
31,
2007
|
|||||||
Convertible
notes - face amount
|
$ | 500,000 | $ | - | ||||
Less:
|
||||||||
Debt
discount attributable to the relative fair value of
warrants
|
(149,615 | ) | - | |||||
Debt
discount attributable to the intrinsic value of the beneficial
conversion feature
|
(49,615 | ) | - | |||||
Less
accumulated amortization of debt discounts
|
26,250 | - | ||||||
Convertible
notes payable, net
|
$ | 327,020 | $ | - |
Year
Ended
December
31, 2008
|
Year
Ended
December
31, 2007
|
|||||||
Outstanding
at beginning of period
|
807,580 | 10,000 | ||||||
Warrants
issued
|
1,080,000 | 797,580 | ||||||
Warrants
exercised
|
- | - | ||||||
Warrants
expired
|
- | - | ||||||
Outstanding
at end of period
|
1,887,580 | 807,580 | ||||||
Exercisable
at end of period
|
1,887,580 | 807,580 |
Date
Issued
|
Expiration
Date
|
Number
of
Warrants
|
Weighted
Average
Exercise
Price
|
|||||||||
May
31, 2006
|
May
31, 2009
|
10,000 | $ | 1.50 | ||||||||
October
11, 2007
|
October
10, 2010
|
379,800 | 1.50 | |||||||||
October
11, 2007
|
October
10, 2010
|
379,800 | 2.00 | |||||||||
October
11, 2007
|
October
10, 2012
|
37,980 | 1.00 | |||||||||
September
29, 2008
|
September
29, 2011
|
80,000 | 1.00 | |||||||||
September
29, 2008 (1)
|
September
29, 2011
|
500,000 | 1.50 | |||||||||
September
29, 2008 (2)
|
-
|
500,000 | 2.00 | |||||||||
Total
|
1,887,580 | $ | 1.70 |
Years
Ended December 31,
|
||||||||
2008
|
2007
|
|||||||
Expected
tax at 35%
|
$ | 470,869 | $ | 383,724 | ||||
Tax
effect of unutilized losses of China Agri and Meixin
|
71,807 | 135,664 | ||||||
Effect
of PRC income tax exemption granted to Xinsheng
|
(387,626 | ) | (349,431 | ) | ||||
Permanent
difference relating to Xinsheng's earnings to be permanently
invested in operations outside the United States
|
(155,050 | ) | (169,957 | ) | ||||
Actual
provision for income taxes
|
$ | - | $ | - |
Year
ending
December
31,
|
Minimum
Rent
|
|||
2009
|
$ | 72,530 | ||
2010
|
68,300 | |||
2011
|
13,425 | |||
Total
|
$ | 154,255 |
Amount to
|
||||
Be Paid
|
||||
SEC
registration fee
|
$
|
8.90
|
||
Legal
fees and expenses
|
$
|
25,000
|
||
Accounting
fees and expenses
|
$
|
5,000
|
||
Miscellaneous
|
$
|
2000
|
||
Total
|
$
|
32,008.90
|
3.1.1
|
Articles
of incorporation (1)
|
|
3.2
|
By-Laws
(1)
|
|
3.3
|
Articles
of Incorporation, as amended (1)
|
|
4.1
|
Form
of 3% Convertible Note (2)
|
|
4.2
|
Form
of Series C Warrant (2)
|
|
4.3
|
Form
of Series D Warrant (2)
|
|
4.4
|
Form
of Underwriter Warrant (3)
|
|
4.5
|
Form
of Placement Agent Warrant (3)
|
|
5.1
|
Legal
Opinion (To be filed by amendment)
|
|
9.1
|
Stock
Purchase Agreement between Company and Xinsheng Shareholders dated April
22, 2006. (1)
|
|
9.2
|
Management
Agreement between Xinsheng and Meixin dated April 18,2006.
(1)
|
|
9.3
|
Voting
Trust and Escrow Agreement with Xinsheng Shareholders and their trustee
dated April 22 2006. (1)
|
|
10.1
|
Form
of Subscription Agreement (2)
|
|
10.2
|
Form
of Registration Rights Agreement (2)
|
|
21.1
|
Subsidiaries
of the small business issuer (1)
|
|
23.1
|
Consent
of Michael Studer CPA PC *
|
|
23.2
|
Legal
Opinion (see Exhibit 5.1)
|
|
23.3
|
Consent
of China Shaanxi Chunhua County Land and Fertilizer Working Station dated
March 24, 2009 *
|
|
23.4
|
Consent
of China Shaanxi Province Land and Fertilizer Working Station dated March
24, 2009 *
|
|
23.5
|
Consent
of China Shaanxi Province Yangling Zong Land and Fertilizer Working
Station dated March 24, 2009
*
|
CHINA
AGRI-BUSINESS, INC.
|
||
By:
|
/s/
Liping Deng *
|
|
Name: Liping Deng
Title: Chief Executive Officer and President (Principal Executive
Officer)
|
By:
|
/s/
Xiaolong Zhou
|
|
Name: Xiaolong Zhou
Title: Chief Financial Officer, (Principal Accounting and Financial
Officer)
|
By:
|
/s/
Liping Deng*
|
April 13, 2009
|
|
Name:
Liping Deng
Title:
Chief Executive Officer and President (Principal Executive
Officer)
|
|
By:
|
/s/
Xiaolong Zhou
|
April 13, 2009
|
|
Name:
Xiaolong Zhou
Title:
Chief Financial Officer (Principal Accounting and Financial
Officer)
|
|
By:
|
/s/
Michael Segal
|
April 13, 2009
|
|
Name:
Michael Segal
Title:
Director
|
|
By:
|
/s/
Limin Deng*
|
April 13, 2009
|
|
Name:
Limin Deng
Title:
Director
|
|
*By:
|
/s/
Xiaolong Zhou
|
April 13, 2009
|
|
Xiaolong
Zhou, Attorney
in fact
|