CHINA SKY ONE MEDICAL, INC. (CSKI, Financial) filed Amended Quarterly Report for the period ended 2010-03-31.
China Sky One Medical, Inc. has a market cap of $166 million; its shares were traded at around $9.88 with a P/E ratio of 4.7 and P/S ratio of 1.2. CSKI is in the portfolios of Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
On April 3, 2008, TDR completed its acquisition of Tianlong, a company that had a variety of medicines approved by the SFDA and new medicine applications, and which was in the business of manufacturing external-use pharmaceuticals. TDR previously acquired the Beijing sales office of Tianlong in mid-2006. In connection with this transaction, TDR acquired 100% of the issued and outstanding capital stock of Tianlong from its sole stockholder, in consideration for an aggregate purchase price of approximately $8,300,000, consisting of $8,000,000 in cash, and 23,850 shares of our common stock (valued at $12.00 per share).
On September 5, 2008, TDR acquired Peng Lai, from Peng Lai Jin Chuang Group Corporation. Peng Lai, which has received Good Manufacturing Practice (“GMP”) certification from the SFDA, was organized to develop, manufacture and distribute pharmaceutical, medicinal and diagnostic products in the PRC. In connection with this transaction, TDR acquired all of Peng Lai s assets, including, without limitation, franchise, production and operating rights to a portfolio of twenty (20) medicines approved by the SFDA, for an aggregate purchase price of approximately $7,000,000 million, consisting of approximately $2,500,000 million in cash, and 381,606 shares of our common stock (valued at $12.00 per share).
Derivative liabilities - The Class A Warrants (“the Warrants”) issued under our January 31, 2008 private placement memorandum include a reset provision triggered if the Company issues common shares below the exercise price of $12.50 as defined under the Warrant Agreement. Effective January 1, 2009 the reset provision of these warrants preclude equity accounting treatment under ASC 815 (formerly EITF 07-5). Accordingly, effective January 31, 2009, the Company is required to reclassify the Warrants at their fair value to liabilities each reporting period under ASC 815-40. The Company used the Monte Carlo valuation model to estimate the fair value of the Warrants. Significant assumptions used at March 31, 2010 include a term of approximately 3.7 years; volatility of 74.0% and a risk free interest rate of 1.94%. At March 31, 2009, the Company had 750,000 Class A Warrants outstanding. The Company used the Monte Carlo valuation model to estimate the fair value of the Class A Warrants. Significant assumptions used at March 31, 2009 include a term of approximately 3.7 years; volatility of 68.0% and a risk free interest rate of 1.72%. The outstanding Class A Warrants at March 31, 2010 had a fair value of approximately $5,636,000. Due to the change in fair value of derivative warrant liability the Company realized income of $4,927,000 and $2,239,000 for the three months ended March 31, 2010 and 2009, respectively.
For the three months ended March 31, 2010 and 2009, we incurred $3,764,000 and $2,413,000, respectively, in research and development expenditures.
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China Sky One Medical, Inc. has a market cap of $166 million; its shares were traded at around $9.88 with a P/E ratio of 4.7 and P/S ratio of 1.2. CSKI is in the portfolios of Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
We achieved continuing growth on the sale of our own product line through our sustained efforts to expand our distribution channels and promote our products. For the three months ended March 31, 2010, total revenues was $28,903,000, compared to $24,834,000 for the three months ended March 31, 2009. Net income was $12,589,000, or $0.74 per share for the three months ended March 31, 2010, compared to net income of $7,243,000, or $0.43 per share in the same period of 2009, as calculated on a diluted basis.On April 3, 2008, TDR completed its acquisition of Tianlong, a company that had a variety of medicines approved by the SFDA and new medicine applications, and which was in the business of manufacturing external-use pharmaceuticals. TDR previously acquired the Beijing sales office of Tianlong in mid-2006. In connection with this transaction, TDR acquired 100% of the issued and outstanding capital stock of Tianlong from its sole stockholder, in consideration for an aggregate purchase price of approximately $8,300,000, consisting of $8,000,000 in cash, and 23,850 shares of our common stock (valued at $12.00 per share).
On September 5, 2008, TDR acquired Peng Lai, from Peng Lai Jin Chuang Group Corporation. Peng Lai, which has received Good Manufacturing Practice (“GMP”) certification from the SFDA, was organized to develop, manufacture and distribute pharmaceutical, medicinal and diagnostic products in the PRC. In connection with this transaction, TDR acquired all of Peng Lai s assets, including, without limitation, franchise, production and operating rights to a portfolio of twenty (20) medicines approved by the SFDA, for an aggregate purchase price of approximately $7,000,000 million, consisting of approximately $2,500,000 million in cash, and 381,606 shares of our common stock (valued at $12.00 per share).
Derivative liabilities - The Class A Warrants (“the Warrants”) issued under our January 31, 2008 private placement memorandum include a reset provision triggered if the Company issues common shares below the exercise price of $12.50 as defined under the Warrant Agreement. Effective January 1, 2009 the reset provision of these warrants preclude equity accounting treatment under ASC 815 (formerly EITF 07-5). Accordingly, effective January 31, 2009, the Company is required to reclassify the Warrants at their fair value to liabilities each reporting period under ASC 815-40. The Company used the Monte Carlo valuation model to estimate the fair value of the Warrants. Significant assumptions used at March 31, 2010 include a term of approximately 3.7 years; volatility of 74.0% and a risk free interest rate of 1.94%. At March 31, 2009, the Company had 750,000 Class A Warrants outstanding. The Company used the Monte Carlo valuation model to estimate the fair value of the Class A Warrants. Significant assumptions used at March 31, 2009 include a term of approximately 3.7 years; volatility of 68.0% and a risk free interest rate of 1.72%. The outstanding Class A Warrants at March 31, 2010 had a fair value of approximately $5,636,000. Due to the change in fair value of derivative warrant liability the Company realized income of $4,927,000 and $2,239,000 for the three months ended March 31, 2010 and 2009, respectively.
For the three months ended March 31, 2010 and 2009, we incurred $3,764,000 and $2,413,000, respectively, in research and development expenditures.
Read the The complete Report
