[X]
|
ANNUAL REPORT UNDER SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
[ ]
|
TRANSITION REPORT UNDER SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Florida
(State or other jurisdiction
of
incorporation or
organization)
|
33-0961490
(I.R.S.
Employer
Identification
No.)
|
101
Xinanyao Street, Jinzhou District
Dalian,
Liaoning Province
(Address of principal executive
offices)
|
PRC 116100
(Zip Code)
|
Title
of each class
|
Name
of each exchange on which registered
|
None
|
None
|
Large
accelerated filer o
|
Accelerated
filer o
|
Non-accelerated
filer þ
|
Page
|
||
Part
I
|
||
ITEM
1.
|
DESCRIPTION
OF BUSINESS
|
3
|
ITEM 1A. | RISK FACTORS | 7 |
ITEM 1B. | UNRESOLVED STAFF COMMENTS | 10 |
ITEM 2. | PROPERTIES | 10 |
ITEM
3.
|
LEGAL
PROCEEDINGS
|
10
|
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS
|
10
|
Part
II
|
||
ITEM
5.
|
MARKET
FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
|
11
|
ITEM
6.
|
MANAGEMENT'S
DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
|
13
|
ITEM 6A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK FACTORS |
16
|
ITEM
7.
|
FINANCIAL
STATEMENTS
|
F1-F12
|
ITEM
8.
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
17
|
ITEM
8A.
|
CONTROLS
AND PROCEDURES
|
17
|
ITEM
8B.
|
OTHER
INFORMATION
|
17
|
Part
III
|
||
ITEM
9.
|
DIRECTORS,
EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE GOVERANCE;
COMPLIANCE WITH SECTION 16(a)
|
18
|
ITEM
10.
|
EXECUTIVE
COMPENSATION
|
19
|
ITEM
11.
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
|
20
|
ITEM
12.
|
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
INDEPENDENCE
|
21
|
ITEM
13.
|
EXHIBITS
|
21
|
ITEM
14.
|
PRINCIPAL
ACCOUNTANT FEES AND SERVICES
|
21
|
Bid
Prices
|
|||||||||
Fiscal
Year
Ended
September
30,
|
Period
|
High
|
Low
|
||||||
2005
|
First
Quarter
|
N/A | N/A | ||||||
Second
Quarter
|
N/A | N/A | |||||||
Third
Quarter
|
N/A | N/A | |||||||
Fourth
Quarter
|
$ | - | $ | - | |||||
2006
|
First
Quarter
|
N/A | N/A | ||||||
Second
Quarter
|
N/A | N/A | |||||||
Third
Quarter
|
$ | 2.30 | $ | 0.50 | |||||
Fourth
Quarter
|
$ | 1.75 | $ | 1.05 | |||||
2007
|
First
Quarter
|
$ | 1.40 | $ | 1.10 | ||||
Second
Quarter
|
$ | 1.18 | $ | 0.55 | |||||
Third
Quarter
|
$ | 0.60 | $ | 0.28 | |||||
Fourth
Quarter
|
$ | 0.31 | $ | 0.06 | |||||
2008
|
First
Quarter
|
$ | 0.20 | $ | 0.05 | ||||
Second
Quarter
|
$ | 0.09 | $ | 0.06 | |||||
Third Quarter | $ | 0.09 | $ | 0.06 | |||||
Forth Quarter | $ | 0.09 | $ | 0.06 |
China
Agro Sciences Corp.
|
For
the Years Ended September 30,
|
||||||
2008
|
2007
|
||||||
Statement
of Operations Data:
|
|||||||
Total
revenues
|
$ | - | - | ||||
Net
income (loss)
|
(487,073 | ) | (2,146,721 | ) | |||
Balance
Sheet Data:
|
|||||||
Current
assets
|
$ | 313,439 | 819,465 | ||||
Total
assets
|
4,573,225 | 4,820,815 | |||||
Current
liabilities
|
915,850 | 1,029,962 | |||||
Total
liabilities
|
1,290,378 | 1,371,466 | |||||
Total
stockholders’ equity
|
3,282,847 | 3,449,349 | |||||
Total
dividends per common share
|
-0- | - 0 - |
September
30, 2008
|
September
30, 2007
|
|||||
Revenue
|
$
|
-
|
$
|
-
|
||
Cost
of Sales
|
-
|
-
|
||||
General
and Administrative Expenses
|
495,782
|
1,033,647
|
||||
Impairment
Loss
|
-
|
1,103,775
|
||||
Net
Income (Loss)
|
$
|
(487,073)
|
$
|
(2,146,721)
|
September
30, 2008
|
September
30, 2007
|
Increase
(Decrease)
|
Percent
(Decrease)
|
|||||||
Cash
|
$
|
99,087
|
$
|
114,271
|
(15,184)
|
15.3% | ||||
Total
Current Assets
|
313,439
|
819,465
|
(506,026)
|
161.4% | ||||||
Total
Assets
|
4,573,225
|
4,820,815
|
(247,590)
|
5.4% | ||||||
Total
Current Liabilities
|
915,850
|
1,029,962
|
(114,112)
|
12.4% | ||||||
Total
Liabilities
|
$
|
1,290,378
|
$
|
1,371,466
|
(81,088)
|
6.2% |
Payments due by period (in U.S.
Dollars)
|
|||||||||
Obligations
|
Total
|
1 Year
|
1-3 Years
|
3-5 Years
|
5 Years
|
||||
Long-Term Debt
Obligations
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
||||
Capital Lease
Obligations
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
||||
Operating Lease
Obligations
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
||||
Purchase
Obligations
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
||||
Other Long-Term
Liabilities
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
||||
Total Contractual
Obligations
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
Reports
of Independent Registered Public Accounting Firms
|
F-2
|
Consolidated
Balance Sheets as of September 30, 2008 and
2007
|
F-3
|
Consolidated
Statements of Operation for years ended September 30, 2008 and
2007
|
F-4
|
Consolidated
Statements of Changes in Stockholders’ Equity for years
ended September 30, 2008 and 2007
|
F-5
|
Consolidated
Statements of Cash Flows for years ended September 30, 2008 and
2007
|
F-6
|
Notes
to Consolidated Financial Statements
|
F7-F12
|
SEPTEMBER
30,
|
|||||||
2008
|
2007
|
||||||
ASSETS | |||||||
CURRENT
ASSETS:
|
|||||||
Cash
|
$ | 99,087 | $ | 114,271 | |||
Prepaid
financial consulting expenses
|
207,415 | 405,271 | |||||
Due
from affiliated company
|
- | 291,345 | |||||
Other
current assets
|
6,937 | 8,578 | |||||
TOTAL
CURRENT ASSETS
|
313,439 | 819,465 | |||||
Property
and equipment, net of accumulated depreciation
|
4,259,786 | 4,001,350 | |||||
TOTAL
ASSETS
|
4,573,225 | 4,820,815 | |||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
CURRENT
LIABILITIES:
|
|||||||
Accounts
payable
|
$ | 427,335 | $ | 996,894 | |||
Due
to affiliated company
|
447,308 | - | |||||
Accrued
expenses
|
41,207 | 33,068 | |||||
TOTAL
CURRENT LIABILITIES
|
915,850 | 1,029,962 | |||||
LONG-TERM
DEBT
|
374,528 | 341,504 | |||||
STOCKHOLDERS’
EQUITY:
|
|||||||
Common
stock, $0.001 par value
|
|||||||
100,000,000
shares authorized
|
|||||||
20,050,000
shares issued and outstanding
|
20,050 | 20,050 | |||||
Additional
paid-in capital
|
3,751,900 | 3,738,900 | |||||
Accumulated
deficit
|
(1,261,133 | ) | (774,060 | ) | |||
Accumulated
other comprehensive income
|
772,030 | 464,459 | |||||
TOTAL
STOCKHOLDERS’ EQUITY
|
3,282,847 | 3,449,349 | |||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
4,573,225 | 4,820,815 | |||||
See notes to financial statements |
For
the year
|
For
the year
|
|||||||
ended
|
ended
|
|||||||
September
30, 2008
|
September
30, 2007
|
|||||||
REVENUES
|
$ | - | $ | - | ||||
COSTS
AND EXPENSES:
|
||||||||
General and administrative
expenses
|
495,782 | 1,033,647 | ||||||
Impairment loss | - | 1,103,775 | ||||||
Other income | (36,673) | - | ||||||
Interest expense
|
27,964 | 9,299 | ||||||
|
||||||||
TOTAL
COSTS AND EXPENSES
|
487,073 | 2,146,721 | ||||||
NET
(LOSS)
|
(487,073) | (2,146,721) | ||||||
OTHER
COMPREHENSIVE INCOME:
|
||||||||
Foreign currency translation adjustment | 307,571 | 235,561 | ||||||
COMPREHENSIVE
INCOME
|
$ | (179,502) | $ | (1,911,160) | ||||
BASIC
AND DILUTED EARNINGS (LOSS) PER COMMON SHARE
|
$ | (0.02) | $ | (0.11) | ||||
WEIGHTED
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
|
20,050,000 | 20,050,000 | ||||||
See notes to Financial
Statements
|
|
Retained
|
Accumulated
Other
|
||||||||||||||||||||||
Common
Stock
|
Additional
|
Earnings
|
Comprehensive
|
|||||||||||||||||||||
Shares
|
Amount
|
Paid
in Capital
|
(Deficit)
|
Income
|
Total
|
|||||||||||||||||||
Balance
- OCTOBER 1, 2006
|
20,050,000 | $ | 20,050 | $ | 3,738,900 | $ | 1,372,662 | $ | 228,898 | $ | 5,360,510 | |||||||||||||
Foreign
currency translation ajustment
|
- | - | - | - | 235,561 | 235,561 | ||||||||||||||||||
Net
(loss)
|
- | - | - | (2,146,722) | - | (2,146,722) | ||||||||||||||||||
Balance
- September 30, 2007
|
20, 050,000 | 20,050 | 3,738,900 | (774,060) | 464,459 | 3,449,349 | ||||||||||||||||||
Imputed
interest on amount due to affiliated company
|
- | - | 13,000 | - | - | 13,000 | ||||||||||||||||||
|
||||||||||||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | - | 307,571 | 307,571 | ||||||||||||||||||
Net
(loss)
|
- | - | - | (487,073) | - | (487,073) | ||||||||||||||||||
Balance
September 30, 2008
|
20,050,000 | $ | 20,050 |
|
$ | 3,751,900 |
|
$ | (1,261,133) | $ | 772,030 | $ | 3,282,847 | |||||||||||
See notes to Financial Statements |
YEAR
ENDED SEPTEMBER 30,
|
||||||||
2008
|
2007
|
|||||||
OPERATION ACTIVITIES: | ||||||||
Net
(loss)
|
$ | (487,073 | ) | $ | (2,146,721) | |||
Adjustments
to reconcile net (loss) to net
|
||||||||
cash
(used in) provided by operating activities:
|
||||||||
Depreciation
|
124,012 | 462,749 | ||||||
Income
from sale of equipment exchanged for accounts payable
|
(33,649 | ) | - | |||||
Impairment
loss
|
- | 1,103,757 | ||||||
Imputed
interest
|
13,000 | - | ||||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
- | 2,121,681 | ||||||
Prepaid
expenses
|
237,046 | (405,271) | ||||||
Other
current assets
|
2,470 | 13,490 | ||||||
Accounts
payable
|
(324,964 | ) | (495,251) | |||||
Accrued
expenses
|
4,941 | 33,067 | ||||||
NET
CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES
|
(464,217 | ) | 687,519 | |||||
FINANCING
ACTIVITIES:
|
||||||||
Loans
from (repayment to) affiliated company
|
459,480 | (653,965) | ||||||
NET
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
459,480 | (653,965) | ||||||
EFFECT
OF EXCHANGE RATE ON CASH
|
(10,447 | ) | (23,100) | |||||
DECREASE
(INCREASE) IN CASH
|
(15,184 | ) | 10,454 | |||||
CASH –
BEGINNING OF YEAR
|
114,271 | 103,817 | ||||||
CASH –
END OF YEAR
|
$ | 99,087 | $ | 114,271 | ||||
Supplemental
disclosures of cash flow information:
|
||||||||
Cash paid during the year
for:
|
||||||||
Interest
|
$ | 13,710 | $ | 3,911 | ||||
Non-cash operating
activities:
|
||||||||
Repayment
of accounts payable by inventory
|
$ | - | $ | 421,101 | ||||
Transfer
accounts payable to affiliated company
|
$ | 307,346 | $ | - | ||||
See notes to Financial Statements |
Maintenance,
repairs and minor renewals are charged to expense when
incurred. Replacements and major renewals are
capitalized.
|
|
Impairment
of long-lived assets
|
3
|
PROPERTY
AND EQUIPMENT
|
September
30,
|
|||||||||
2008
|
2007
|
||||||||
Amount
|
Life
|
||||||||
Furniture, fixtures and office equipement | $ | 23,119 | $ | 21,082 |
5-7
years
|
||||
Building and building improvements | 4,551,175 | 4,247,499 |
40
years
|
||||||
Automobile | 31,168 | 28,420 |
5
years
|
||||||
4,605,462 | 4,297,001 | ||||||||
Accumulated depreciation | 345,676 | 295,651 | |||||||
$ | 4,259,786 | $ | 4,001,350 |
Year
ended September 30th
(using current year exchange rates)
|
||||
2009
|
$ | - | ||
2010
|
34,090 | |||
2011
|
34,090 | |||
2012
|
34,090 | |||
2013
|
34,090 | |||
Thereafter
|
238,168 | |||
$ | 374,528 |
8
|
RISK
FACTORS
|
2008 |
QUARTER
|
||||
First
|
Second
|
Third
|
Fourth
|
Total
|
Revenue
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Operating
loss
|
(71,428 | ) | (103,925 | ) | (99,250 | ) | (212,470 | ) | (487,073 | ) | ||||||||||
Net
loss
|
(71,428 | ) | (103,925 | ) | (99,250 | ) | (212,470 | ) | (487,073 | ) | ||||||||||
Basic
and diluted earnings per
common
share (1)
|
(0.003) | (0.01 | ) | (0.005 | ) | (0.01 | ) | (0.02 | ) | |||||||||||
2007 |
QUARTER
|
||||
First
|
Second
|
Third
|
Fourth
|
Total
|
Revenue
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Operating
loss
|
(208,644 | ) | (218,490 | ) | (187,153 | ) | (1,532,434 | ) | (2,146,721 | ) | ||||||||||
Net
loss
|
(208,644 | ) | (218,490 | ) | (187,153 | ) | (1,532,434 | ) | (2,146,721 | ) | ||||||||||
Basic
and diluted earnings per
common
share (1)
|
(0.01 | ) | (0.01 | ) | (0.01 | ) | (0.08 | ) | (0.11 | ) | ||||||||||
ASSETS
|
||||
INVESTMENT
IN SUBSIDIARIES
|
$ | 3,282,847 | ||
TOTAL
ASSETS
|
$ | 3,282,847 | ||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||
STOCKHOLDERS’
EQUITY
|
$ | 3,272,847 | ||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 3,272,847 | ||
LOSS
FROM EARNINGS OF SUBSIDIARIES
|
$ | (474,073 | ) | |
NET
LOSS BEFORE INCOME TAXES
|
$ | (474,073 | ) | |
OPERATING
ACTIVITIES:
|
||||
Net
loss
|
$ | (474,073 | ) | |
Adjustments
to reconcile net income to net
|
||||
cash
provided by operating activities:
|
||||
Loss
from earnings of subsidiaries
|
474,073 | |||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
- | |||
CASH
– BEGINNING OF YEAR
|
- | |||
CASH
– END OF YEAR
|
$ | - | ||
Name
|
Age
|
Position(s)
|
||
Zhengquan
Wang
|
66
|
Chief
Executive Officer, Chief Financial Officer, Secretary, and Director
(2006)
|
Annual
Compensation
|
|||||||||||||
Name
and Principal Position
|
Year
|
Salary(USD)
|
Bonus
|
Other
Annual
Compensation
|
|||||||||
Zhengquan
Wang, Chief Executive Officer, Chief Financial Officer, Secretary and
Director
|
2008
|
$
|
0
|
0
|
0
|
||||||||
Zhengquan
Wang, Chief Executive Officer, Chief Financial Officer, Secretary and
Director
|
2007
|
$
|
0
|
0
|
0
|
||||||||
Zhengquan
Wang, Chief Executive Officer, Chief Financial Officer, Secretary and
Director
|
2006 | $ | 0 | 0 | 0 |
Common Stock
|
|||
Title of Class
|
Name and Address
of Beneficial Owner
|
Amount and Nature of
Beneficial Ownership
|
Percent
of Class (1)
|
Common
Stock
|
Zhengquan
Wang (2)(3)
|
16,000,000
(4)
|
80.0%
(4)
|
Common
Stock
|
All Directors and
Officers
As a Group (2
persons)
|
16,000,000
(4)
|
80.0%
(4)
|
|
(1)
|
Unless
otherwise indicated, based on 20,000,000 shares of common stock issued and
outstanding following the Merger. Shares of common stock subject to
options or warrants currently exercisable, or exercisable within 60 days,
are deemed outstanding for purposes of computing the percentage of the
person holding such options or warrants, but are not deemed outstanding
for the purposes of computing the percentage of any other person.
|
|
(2)
|
Indicates
one of our officers or directors.
|
|
(3)
|
Unless
indicated otherwise, the address of the shareholder is 101 Xinanyao
Street, Jinzhou District, Dalian, Liaoning Province, PRC 116100.
|
|
(4)
|
Includes
3,000,000 shares held by Xiufen Bi, 3,000,000 shares held by Qiming Wang,
2,000,000 shares held by Yinghua Wang, and 2,000,000 shares held by Feng
Yang, Mr. Wang’s spouse, son, daughter, and son-in-law, respectively.
|
Number
|
Exhibit
|
Location
|
|||
3.1 | Articles of Incorporation of China Agro Sciences Corp. |
Incorporated
by reference to Exhibit 3.1 to Form SB-2 filed on August 31,
2001
|
|||
3.2 |
Articles
of Amendment to Articles of Incorporation Changing Name to China Agro
Sciences Corp.
|
Incorporated
by reference to Form 8-K filed on May 5, 2006
|
|||
3.3 | Articles of Merger Merging DaLian Acquisition Corp. into China Agro Sciences Corp. |
Incorporated
by reference to Form 8-K filed on May 5, 2006
|
|||
3.5 | Bylaws of China Agro Sciences Corp. |
Incorporated
by reference to Exhibit 3.1 to Form SB-2 filed on August 31,
2001
|
|||
31.1 |
Certification
of CEO and CFO pursuant to Rule 13a-14(a)/15(d)-14(a).
|
Filed
within
|
|||
32.1 |
Certification
of CEO and CFO pursuant to Section 1350.
|
Filed
within
|
China Agro Sciences
Corp.
|
|
Dated: January 13,
2009
|
/s/ Zhengquan Wang |
Zhengquan Wang
|
|
President, Director, CEO,
CFO
|