NOTE 8 - RELATED PARTY TRANSACTIONS

3 Months Ended

Jul. 31, 2021

Notes

NOTE 8 - RELATED PARTY TRANSACTIONS

NOTE 8 - RELATED PARTY TRANSACTIONS

Accounts receivable - related party and revenue - related party

As of July 31, 2021 and April 30, 2021, $6,954,986 and $5,999,791 in accounts receivable - related party, respectively, were related to sales of products to Qufu Shengwang Import and Export Co., Ltd. ("Qufu Shengwang Import and Export"), a Chinese entity owned by our Chairman, Mr. Laiwang Zhang. For the three months ended July 31, 2021 and 2020, we recorded revenue - related party and cost of revenue – related party of $2,386,628and $151,823, and $2,617,569 and $1,609,508, respectively, from Qufu Shengwang Import and Export.

Due to (from) related parties

From time to time, we receive advances from related parties and advance funds to related parties for working capital purposes. In the three months ended July 31, 2021 and 2020, we received advances from related parties for working capital that totaled $5,265,725 and $3,055,118, respectively, and we repaid to related parties a total of $3,476,199 and $5,268,237, respectively.

In the three months ended July 31, 2021 and 2020, interest expense related to due to related parties amounted to $5,254 and $16,807, respectively, which were included in interest expense in the accompanying condensed consolidated statements of operations and comprehensive loss, and in connection with the advances of RMB5,000,000 (approximately $774,000) from Shangdong Shengwang Pharmaceutical Co., Ltd. ("Pharmaceutical Corporation"), a Chinese entity owned by our Chairman, Mr. Laiwang Zhang. This advance bears interest at the rate of 7.0% per annum. On July 27, 2020, we repaid in full amount of the above advance of RMB5,000,000 with accrued interest.

On September 23, 2019, the Company borrowed a one-year loan of RMB1,221,000 (approximately $189,000) from Weidong Cai, a management member of Qufu Shengren, bearing an annual interest rate of 10%. On September 23, 2020, the parties extended the loan for another year, under the same terms and conditions, reclassified unpaid interest payable to the principal of this loan, resulting in an increase of principal from RMB1,221,000 (approximately $189,000) to RMB1,343,100 (approximately $208,000).

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As of July 31, 2021, the balance we owed Pharmaceutical Corporation, Qufu Shengwang Import and Export and Mr. Weidong Chai amounted to $4,724,432, $6,686,795 and $230,118, respectively. On April 30, 2021, the balance we owed to Pharmaceutical Corporation, Qufu Shengwang Import and Export and Mr. Weidong Chai amounted to $3,484,266, $6,140,404, and $218,966, respectively.

As of July 31, 2021 and April 30, 2021, balance due to (from) related party activities consisted of the following: 

	Shandong Shengwang Pharmaceutical Co., Ltd.	Qufu Shengwang Import and Export Co., Ltd.	Mr. Wedong Chai	Total
Balance due to related parties, April 30, 2021	$3,484,266	$6,140,404	$218,966	$9,843,636
Working capital advances from related parties	3,631,725	1,629,499	9,755	5,270,979
Repayments	(2,389,867)	(1,086,332)	-	(3,476,199)
Effect of foreign currency exchange	(1,692)	3,224	1,397	2,929
Balance due to related parties, July 31, 2021	$4,724,432	$6,686,795	$230,118	$11,641,345