SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2014

SEGMENT INFORMATION [Text Block]

NOTE 18 SEGMENT INFORMATION

The Company operates in three business segments identified by product, “Cordyceps Militaris”, “beverages” and “organic and specialty food products”. The Cordyceps Militaris segment consists of the growing and sales of Cordyceps Militaris, which business is conducted through Daqing Shuaiyi. The beverages segment consists of the manufacturing of functional health beverages featuring the Cordyceps Militaris as a core ingredient, which business is also conducted through Daqing Shuaiyi and was launched in the fourth quarter of 2010.The organic and specialty food products segment consists of the sales of rice, flour, silage corn and other agricultural products which business is mainly conducted through Harbin Shuaiyi.

During the three and six months ended June 30, 2014 and 2013, all of the Company’s operations were carried out in one geographical segment - China.

The Company’s segment revenue and results for the six months ended June 30, 2014 and 2013 are as follows:

				Six Months Ended June 30, 2014
						Organic and
		Cordyceps				Specialty Food		Corporate
		Militaris		Beverages		Products		Unallocated			Consolidated
Segment revenue from external customers	$	16,752,179	$	1,985,070	$	1,133,994	$	-		$	19,871,243
Segment income before income taxes	$	13,165,302	$	825,899	$	115,771	$	(580,215	)	$	13,526,757
Income before income taxes										$	13,526,757
Segment assets	$	126,809,032	$	61,934	$	1,423,109	$	1,998,140		$	130,292,215
Total assets										$	130,292,215
Other segment information:
Depreciation and amortization	$	687,429	$	2,779	$	1,396	$	51,448		$	743,052
Expenditure for segment assets	$	-	$	-	$	-	$	-		$	-

				Six Months Ended June 30, 2013
						Organic and
		Cordyceps				Specialty Food		Corporate
		Militaris		Beverages		Products		Unallocated			Consolidated
Segment revenue from external customers	$	14,878,845	$	3,323,531	$	1,083,094	$	-		$	19,285,470
Segment income before income taxes	$	11,364,647	$	1,919,102	$	64,790	$	(571,177	)	$	12,777,362
Income before income taxes											12,777,362
Segment assets	$	102,955,633	$	64,439	$	1,479,757	$	2,247,835		$	106,747,664
Total assets										$	106,747,664
Other segment information:
Depreciation and amortization	$	676,136	$	2,737	$	1,369	$	50,886		$	731,128
Expenditure for segment assets	$	-	$	-	$	-	$	-		$	-

The Company’s segment revenue and results for the three months ended June 30, 2014 and 2013 are as follows:

				Three Months Ended June 30, 2014
						Organic and
		Cordyceps				Specialty Food		Corporate
		Militaris		Beverages		Products		Unallocated			Consolidated
Segment revenue from external customers	$	10,690,516	$	1,750,018	$	564,028	$	-		$	13,004,562
Segment income before income taxes	$	8,557,968	$	783,550	$	51,605	$	(258,484	)	$	9,134,639
Income before income taxes											9,134,639
Segment assets	$	126,809,032	$	61,934	$	1,423,109	$	1,998,140		$	130,292,215
Total assets										$	130,292,215
Other segment information:
Depreciation and amortization	$	341,859	$	2,081	$	-	$	26,335		$	370,275
Expenditure for segment assets	$	-	$	-	$	-	$	-		$	-

				Three Months Ended June 30, 2013
						Organic and
		Cordyceps				Specialty Food		Corporate
		Militaris		Beverages		Products		Unallocated			Consolidated
Segment revenue from external customers	$	8,797,304	$	2,535,341	$	541,689	$	-		$	11,874,334
Segment income before income taxes	$	6,922,978	$	1,442,079	$	31,562	$	(313,681	)	$	8,082,938
Income before income taxes										$	8,082,938
Segment assets	$	102,955,633	$	64,439	$	1,479,757	$	2,247,835		$	106,747,664
Total assets										$	106,747,664
Other segment information:
Depreciation and amortization	$	341,416	$	1,376	$	8	$	25,332		$	368,132
Expenditure for segment assets	$	-	$	-	$	-	$	-		$	-