New Dragon Asia Corp (NWD, Financial) filed Quarterly Report for the period ended 2010-06-25.
New Dragon Asia Corp has a market cap of $7.2 million; its shares were traded at around $0.074 . NWD is in the portfolios of Jim Simons of Renaissance Technologies LLC.
General and administrative expenses increased by $3,695,000, or 230%, to $5,303,000 for the six months ended June 25, 2010 as compared to $1,608,000 for the corresponding period in 2009. The increase was primarily due to the provision for doubtful accounts. This provision stems from customers with receivable balance over one year old. Many of our customers are export related companies. In the first half of 2010, these companies were still seriously affected by the world wide economy slowdown and overseas orders for Chinese food and agriculture products did not recover as quickly as expected. As a result, the food export industry in Shandong was slow to recover and its turnover rate of funds stayed at a low level. As a part of the industry chain and supplier to export entities, the Company had to inevitably face the lengthening of its average days outstanding regarding receivables from its customers. During the six months ended June 25, 2010, the Company believes it has recorded the appropriate provision for bad debts and it has the appropriate allowance at June 25, 2010. The Company will gradually tighten its credit policy and intends to strengthen collection effort regarding outstanding receivables, including legal remedies when necessary. The Company believes this will prevent significant bad debts in the future.
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 six months ended June 25, 2010, the gain in this regard was $51,000. For the corresponding period of 2009, the gain in this regard was $173,000. 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. An increase in our stock s market value increases the value of the derivative creating losses in our income statements and a decrease in the stock s market value reduces the value of the derivatives creating gains in our income statements.
For the three months ended June 25, 2010, cost of goods sold was $6,610,000, an increase of $97,000, or 1%, as compared to $6,513,000 for the three months ended June 25, 2009. The increase was due to the increase in sales of our products.
General and administrative expenses increased by $2,769,000, or 626%, to $3,211,000 for the quarter ended June 25, 2010 as compared to $442,000 for the corresponding quarter in 2009. The increase was primarily due to the provision for doubtful accounts. This provision stems from customers with receivable balance over one year old. Many of our customers are export related companies. In the first half of 2010, these companies were still seriously affected by the world wide economy slowdown and overseas orders for Chinese food and agriculture products did not recover as quickly as expected. As a result, the food export industry in Shandong was slow to recover and its turnover rate of funds stayed at a low level. As a part of the industry chain and supplier to export entities, the Company had to inevitably face the lengthening of its average days outstanding regarding receivables from its customers. During the quarter ended June 25, 2010, the Company believes it has recorded the appropriate provision for bad debts and it has the appropriate allowance at June 25, 2010. The Company will gradually tighten its credit policy and intends to strengthen collection effort regarding outstanding receivables, including legal remedies when necessary. The Company believes this will prevent significant bad debts in the future.
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 June 25, 2010, the gain in this regard was $41,000. For the corresponding period of 2009, the gain in this regard was $53,000. 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 $7.2 million; its shares were traded at around $0.074 . NWD is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
For the six months ended June 25, 2010, cost of goods sold was $12,633,000, an increase of $602,000, or 5%, as compared to $12,031,000 for the six months ended June 25, 2009. The increase was due to the increase in sales of our products.General and administrative expenses increased by $3,695,000, or 230%, to $5,303,000 for the six months ended June 25, 2010 as compared to $1,608,000 for the corresponding period in 2009. The increase was primarily due to the provision for doubtful accounts. This provision stems from customers with receivable balance over one year old. Many of our customers are export related companies. In the first half of 2010, these companies were still seriously affected by the world wide economy slowdown and overseas orders for Chinese food and agriculture products did not recover as quickly as expected. As a result, the food export industry in Shandong was slow to recover and its turnover rate of funds stayed at a low level. As a part of the industry chain and supplier to export entities, the Company had to inevitably face the lengthening of its average days outstanding regarding receivables from its customers. During the six months ended June 25, 2010, the Company believes it has recorded the appropriate provision for bad debts and it has the appropriate allowance at June 25, 2010. The Company will gradually tighten its credit policy and intends to strengthen collection effort regarding outstanding receivables, including legal remedies when necessary. The Company believes this will prevent significant bad debts in the future.
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 six months ended June 25, 2010, the gain in this regard was $51,000. For the corresponding period of 2009, the gain in this regard was $173,000. 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. An increase in our stock s market value increases the value of the derivative creating losses in our income statements and a decrease in the stock s market value reduces the value of the derivatives creating gains in our income statements.
For the three months ended June 25, 2010, cost of goods sold was $6,610,000, an increase of $97,000, or 1%, as compared to $6,513,000 for the three months ended June 25, 2009. The increase was due to the increase in sales of our products.
General and administrative expenses increased by $2,769,000, or 626%, to $3,211,000 for the quarter ended June 25, 2010 as compared to $442,000 for the corresponding quarter in 2009. The increase was primarily due to the provision for doubtful accounts. This provision stems from customers with receivable balance over one year old. Many of our customers are export related companies. In the first half of 2010, these companies were still seriously affected by the world wide economy slowdown and overseas orders for Chinese food and agriculture products did not recover as quickly as expected. As a result, the food export industry in Shandong was slow to recover and its turnover rate of funds stayed at a low level. As a part of the industry chain and supplier to export entities, the Company had to inevitably face the lengthening of its average days outstanding regarding receivables from its customers. During the quarter ended June 25, 2010, the Company believes it has recorded the appropriate provision for bad debts and it has the appropriate allowance at June 25, 2010. The Company will gradually tighten its credit policy and intends to strengthen collection effort regarding outstanding receivables, including legal remedies when necessary. The Company believes this will prevent significant bad debts in the future.
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 June 25, 2010, the gain in this regard was $41,000. For the corresponding period of 2009, the gain in this regard was $53,000. 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.
Read the The complete Report
