Monday, August 15, 2011

China Sky One Medical - is the cash flow matching Asset values ?

China Sky One Medical - CSKI

The Cash flow statement of this company does NOT seem to match the assets reported... What am I missing ?

Cash flow for six months ended June 2011 shows investment of $ 8.38 Million. However Gross assets have NOT increased by 8.38 Million from end 2010 to June 2011

Why ?

Cash flow as reported in 10 Q - June 2011


China Sky One Medical, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited, $ in thousands)

   
Six Months Ended June 30,
 
   
2011
   
2010
 
             
Cash flows from operating activities
           
Net Income
  $ 12,225     $ 24,830  
Adjustments to reconcile net cash provided by (used in) operating activities:
               
Depreciation and amortization
    3,021       1,919  
Change in fair value of derivative liability
    (1,591 )     (7,013 )
Net change in assets and liabilities:
               
Accounts receivable
    (1,335 )     (2,719 )
Inventories
    (4,196 )     (3,124 )
Prepaid expenses and other current assets
    1       50  
Accounts payable and accrued expenses
    4,007       3,487  
Taxes payable
    882       1,838  
Net cash provided by operating activities
    13,014       19,268  
                 
Cash flows from investing activities
               
Land and construction deposits
    (6,281 )     (7,316 )
Purchase of property and equipment
    (96 )     (407 )
Purchase of land use rights
    (1,986 )     -  
Purchase of intangible assets
    (4,389 )     -  
Purchase of construction in process
    (20 )     -  
Net cash used in investing activities
    (12,772 )     (7,723 )
                 
Cash flows from financing activities
               
Proceeds from warrants conversion
    -       94  
Net cash provided by financing activities
    -       94  
                 
Effect of exchange rate changes on cash and cash equivalents
    929       261  
                 
Net increase in cash and cash equivalents
    1,171       11,900  
Cash and cash equivalents at beginning of period
    43,124       52,756  
Cash and cash equivalents at end of period
  $ 44,295     $ 64,656  
                 
Supplemental disclosure of cash flow information
               
Interest paid
  $ -     $ -  
Income taxes paid
  $ 3,840     $ 4,942  


Assets as reported in 10 - Q - June 2011

10.
Property and Equipment, net

As of June 30, 2011 and December 31, 2010, Property and Equipment, net consist of the following:
   
($ in thousands)
 
   
June 30,
   
December 31,
 
   
2011 (Unaudited)
   
2010
 
Buildings and improvements
  $ 25,730     $ 25,185  
Machinery and equipment
    6,126       5,961  
Transportation equipment
    1,272       1,188  
Furniture and equipment
    404       392  
Total Property and Equipment
    33,532       32,726  
Less: Accumulated Depreciation
    (4,642 )     (3,766 )
Property and Equipment, Net
  $ 28,890     $ 28,960  




Source : company's 10 - Q published here http://www.sec.gov/Archives/edgar/data/798985/000114420411045037/v228796_10q.htm



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