Note 8 - Related Party Transactions

6 Months Ended

Oct. 31, 2016

Notes

Note 8 - Related Party Transactions

NOTE 8 - RELATED PARTY TRANSACTIONS

Accounts receivable - related party and revenue - related party

On October 31, 2016 and April 30, 2016, we reported $3,069,485 and $3,632,876 in accounts receivable - related party, respectively, related to sales of products to Qufu Shengwang Import and Export Corporation, a Chinese entity owned by our Chairman, Mr. Laiwang Zhang. For the three months ended October 31, 2016 and 2015, we had revenue - related party of $1,948,631 and $782,398, respectively. For the six months ended October 31, 2016 and 2015, we had revenue - related party of $3,462,369 and $3,858,054, respectively, from Qufu Shengwang Import and Export Corporation,

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. During the three and six months ended October 31, 2016 and 2015, we paid on interest expense related to due to related parties amounted to $32,468 and $32,246, and $58,113 and $73,712, respectively, which were included in interest expense in the accompanying consolidated statements of operations and comprehensive loss, and in connection with the advances of $821,693 (RMB5,000,000) and $1,314,708 (RMB8,000,000) from Shangdong Shengwang Pharmaceutical., Co., Ltd. ("Pharmaceutical Corporation"), a Chinese entity owned by our Chairman, Mr. Laiwang Zhang. These advances bear interest at the rate of 9.225% per annum and we have repaid these two loans with all accrued interests on May 8, 2015 and June 11, 2015, respectively. On May 22, 2015 and June 17, 2015, we received additional advances of $788,825 (RMB4,800,000) and $1,314,708 (RMB8,000,000) from the Pharmaceutical Corporation, at a lowered interest rate of 7.65% per annum. On May 4, 2016, we have repaid one of these two loans, RMB4,800,000 with its accrued interests. On August 31, 2016, we received additional advances of $738,040 (RMB5,000,000) from the Pharmaceutical Corporation, at interest rate of 7.87% per annum. The other advances bear no interest and are payable on demand. On October 31, 2016, the balance we owed Qufu Shengwang Import Export Co., Ltd. and Shandong Shengwang Pharmaceutical Co., Ltd. of $350,516 and $953,343, respectively. On April 30, 2016, the balance we owed Qufu Shengwang Import and Export Co., Ltd. and Shandong Shengwang Pharmaceutical Co., Ltd. of $366,875 and $910,373, respectively. On October 31, 2016 and April 30, 2016, due to (from) related party activities consisted of the following: 

	Shandong Shengwang Pharmaceutical Co., Ltd.	Qufu Shengwang Import and Export Co., Ltd.	Total
Balance due to related parties, April 30, 2016	$        910,373	$      366,875	$     1,277,248
Working capital advances from related parties	1,754,845	281,036	2,035,881
Repayments	(1,650,914)	(310,651)	(1,961,565)
Effect of foreign currency exchange	(60,961)	13,256	(47,705)
Balance due to related parties, October 31, 2016	$        953,343	$      350,516	$     1,303,859