New Dragon Asia Corp (NWD, Financial) filed Quarterly Report for the period ended 2009-09-25.
New Dragon Asia Corp has a market cap of $19.5 million; its shares were traded at around $0.127 with a P/E ratio of 1.1 and P/S ratio of 1.1.
General and administrative expenses increased by $206,000, or 11%, to $2,021,000 for the nine months ended September 25, 2009 as compared to $1,815,000 for the corresponding period in 2008. The increase was primarily due to the provision for bad debt due from customers who were seriously affected by the abrupt slowdown in the economy worldwide.
The Company issued Series A Redeemable Convertible Preferred Stock in July 2005, together with 3,157,895 warrants to purchase Class A Common Stock resulting in aggregate proceeds of $6 million. The Company also issued Series B Redeemable Convertible Preferred Stock in December 2005, together with 2,968,750 warrants to purchase Class A Common Stock resulting in aggregate proceeds of $9.5 million. The fair value of each instrument was recorded as a derivative liability on our balance sheet. The corresponding gain or loss, which was non-cash in nature, from changes in the fair values of these instruments was recorded in our statement of income. For the nine months ended September 25, 2009, the gain in this regard was $162,000. For the corresponding period of 2008, the gain in this regard was $1,790,000. The determination of the change in the value of the derivatives requires the use of a complex valuation model and can fluctuate significantly between periods based on changes in the price of our shares and the time remaining in the life of the underlying financial instruments. Increase in our stock s market value increases the value of the derivative creating losses in our income statements and decrease in the stock s market value reduces the value of the derivatives creating gains in our income statements.
For the three months ended September 25, 2009, cost of goods sold was $6,560,000, a decrease of $5,879,000, or 47%, as compared to $12,439,000 for the three months ended September 25, 2008. The decrease was in line with the decrease in sales of our products.
General and administrative expenses decreased by $156,000, or 27%, to $413,000 for the quarter ended September 25, 2009 as compared to $569,000 for the corresponding quarter in 2008. The decrease was primarily due to the cost controls implemented by us.
The Company issued Series A Redeemable Convertible Preferred Stock in July 2005, together with 3,157,895 warrants to purchase Class A Common Stock resulting in aggregate proceeds of $6 million. The Company also issued Series B Redeemable Convertible Preferred Stock in December 2005, together with 2,968,750 warrants to purchase Class A Common Stock resulting in aggregate proceeds of $9.5 million. The fair value of each instrument was recorded as a derivative liability on our balance sheet. The corresponding gain or loss, which was non-cash in nature, from changes in the fair values of these instruments was recorded in our statement of income. For the quarter ended September 25, 2009, the loss in this regard was $11,000. For the corresponding period of 2008, the gain in this regard was $362,000. The determination of the change in the value of the derivatives requires the use of a complex valuation model and can fluctuate significantly between periods based on changes in the price of our shares and the time remaining in the life of the underlying financial instruments. Increase in our stock s market value increases the value of the derivative creating losses in our income statements and decrease in the stock s market value reduces the value of the derivatives creating gains in our income statements.
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New Dragon Asia Corp has a market cap of $19.5 million; its shares were traded at around $0.127 with a P/E ratio of 1.1 and P/S ratio of 1.1.
Highlight of Business Operations:
For the nine months ended September 25, 2009, cost of goods sold was $18,591,000, a decrease of $15,375,000, or 45%, as compared to $33,966,000 for the nine months ended September 25, 2008. The decrease was in line with the decrease in sales of our products.General and administrative expenses increased by $206,000, or 11%, to $2,021,000 for the nine months ended September 25, 2009 as compared to $1,815,000 for the corresponding period in 2008. The increase was primarily due to the provision for bad debt due from customers who were seriously affected by the abrupt slowdown in the economy worldwide.
The Company issued Series A Redeemable Convertible Preferred Stock in July 2005, together with 3,157,895 warrants to purchase Class A Common Stock resulting in aggregate proceeds of $6 million. The Company also issued Series B Redeemable Convertible Preferred Stock in December 2005, together with 2,968,750 warrants to purchase Class A Common Stock resulting in aggregate proceeds of $9.5 million. The fair value of each instrument was recorded as a derivative liability on our balance sheet. The corresponding gain or loss, which was non-cash in nature, from changes in the fair values of these instruments was recorded in our statement of income. For the nine months ended September 25, 2009, the gain in this regard was $162,000. For the corresponding period of 2008, the gain in this regard was $1,790,000. The determination of the change in the value of the derivatives requires the use of a complex valuation model and can fluctuate significantly between periods based on changes in the price of our shares and the time remaining in the life of the underlying financial instruments. Increase in our stock s market value increases the value of the derivative creating losses in our income statements and decrease in the stock s market value reduces the value of the derivatives creating gains in our income statements.
For the three months ended September 25, 2009, cost of goods sold was $6,560,000, a decrease of $5,879,000, or 47%, as compared to $12,439,000 for the three months ended September 25, 2008. The decrease was in line with the decrease in sales of our products.
General and administrative expenses decreased by $156,000, or 27%, to $413,000 for the quarter ended September 25, 2009 as compared to $569,000 for the corresponding quarter in 2008. The decrease was primarily due to the cost controls implemented by us.
The Company issued Series A Redeemable Convertible Preferred Stock in July 2005, together with 3,157,895 warrants to purchase Class A Common Stock resulting in aggregate proceeds of $6 million. The Company also issued Series B Redeemable Convertible Preferred Stock in December 2005, together with 2,968,750 warrants to purchase Class A Common Stock resulting in aggregate proceeds of $9.5 million. The fair value of each instrument was recorded as a derivative liability on our balance sheet. The corresponding gain or loss, which was non-cash in nature, from changes in the fair values of these instruments was recorded in our statement of income. For the quarter ended September 25, 2009, the loss in this regard was $11,000. For the corresponding period of 2008, the gain in this regard was $362,000. The determination of the change in the value of the derivatives requires the use of a complex valuation model and can fluctuate significantly between periods based on changes in the price of our shares and the time remaining in the life of the underlying financial instruments. Increase in our stock s market value increases the value of the derivative creating losses in our income statements and decrease in the stock s market value reduces the value of the derivatives creating gains in our income statements.
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