Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.7.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Cash flows from operating activities    
Net income $ 5,627,777 $ 3,460,270
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 4,937,688 4,939,882
Allowance for doubtful accounts 1,651,546 949
Impairment of machinery and equipment 530,914 0
Loss on disposal of property, plant and equipment 609,842 233,296
Deferred income tax (benefit) expense (32,756) 9,107
Equity in earnings of investee (351,755) 0
Share based compensation 317,946 653,017
Gain on change of fair value of warrant liability (140,290) (927,125)
Changes in operating assets and liabilities:    
Accounts receivable (13,809,278) (5,446,752)
Notes receivable 575,514 (1,222,793)
Prepayments and other receivables (1,755,589) (2,435,316)
Amount due from Yipeng (7,457,338) 0
Amount due to Yipeng 1,589,963 0
Inventories (4,410,429) 1,831,737
Accounts payable 11,196,709 (3,322,054)
Deferred income (64,658) 1,890,332
Other payables and accrued liabilities 5,471,022 755,757
Income taxes payable 307,984 (74,111)
Net cash flows provided by operating activities 4,794,812 346,196
Cash flows from investing activities    
Acquisition of plant and equipment (8,487,473) (11,256,553)
Long-term investment (3,005,666) 0
Net cash flows used in investing activities (11,493,139) (11,256,553)
Cash flows from financing activities    
Proceeds from short-term bank loans 19,611,969 14,430,014
Repayment of short-term bank loans (13,526,998) (13,438,449)
Proceeds from non-financial institution borrowings 4,508,499 0
Repayment of non-financial institution borrowings (601,133) 0
Repayment of long-term bank loans (1,803,399) (1,924,002)
Proceeds from notes payable 59,952,794 63,544,496
Repayment of notes payable (57,731,108) (61,118,292)
Proceeds from exercise of employee options 35,010 44,534
Change in restricted cash (320,093) 2,966,205
Net cash flows provided by financing activities 10,125,541 4,504,506
Effect of foreign currency translation on cash 47,212 (2,356,074)
Net increase (decrease) in cash 3,474,426 (8,761,925)
Cash - beginning of year 5,849,967 14,611,892
Cash - end of year 9,324,393 5,849,967
Cash paid for:    
Income taxes 1,163,950 883,740
Interest expenses 1,229,173 1,002,151
Non-cash transactions    
Offset of deferred income related to government grant and property, plant and equipment 229,951 2,547,545
Transfer of equipment to Yipeng $ 7,156,717 $ 0