Note 6 - Related Party Transactions

9 Months Ended

Jan. 31, 2018

Notes

Note 6 - Related Party Transactions

NOTE 6 - RELATED PARTY TRANSACTIONS

Accounts receivable - related party and revenue - related party

On January 31, 2018 and April 30, 2017, we reported $2,479,670 and $339,270 in accounts receivable - related party, respectively, 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 January 31, 2018 and 2017, we had revenue - related party of $1,591,329 and $2,129,371, respectively. For the nine months ended January 31, 2018 and 2017, we had revenue - related party of $1,858,709 and $5,591,740, 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 nine months ended January 31, 2018 and 2017, we received advances from related parties for working capital totaled $5,068,601 and $2,595,313, respectively, and we repaid to related parties a total of $3,251,990 and $2,768,284, respectively. During the three and nine months ended January 31, 2018 and 2017, interest expense related to due to related parties amounted to $25,945 and $38,207, and $71,135 and $96,320, respectively, which were included in interest expense in the accompanying consolidated statements of operations and comprehensive loss, and in connection with the advances of $743,196 (RMB5,000,000) and $1,189,114 (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 7.87% per annum and we have repaid one of the loans of RMB5,000,000 with its accrued interests on April 1, 2017. The other advances bear no interest and are payable on demand. On January 31, 2018, the balance we owed to Pharmaceutical Corporation, Qufu Shengwang Import and Export, Mr. Weidong Chai, a management member of Qufu Shengren Pharmaceutical Co., Ltd., and Mr. Laiwang Zhang is $1,336,203, $126,676, $161,621 and $397,532, respectively. On April 30, 2017, the balance we owed to Qufu Shengwang Import and Export and Mr. Weidong Chai totaled $21,878 and $134,002, respectively, the balance due from Pharmaceutical Corporation was $30,568, which was repaid on July 28, 2017. On January 31, 2018 and April 30, 2017, the balance of due to (from) related parties consisted of the following:  

	Shandong Shengwang Pharmaceutical Co., Ltd.	Qufu Shengwang Import and Export Co., Ltd.	Weidong Chai	Laiwang Zhang	Total
Balance due to related parties, April 30, 2017	$       (30,568)	$       21,878	$ 134,002	$              0	$     125,312
Working capital advances from related parties	4,191,461	465,863	13,745	397,532	5,068,601
Repayments	(2,865,717)	(386,273)	0	0	(3,251,990)
Effect of foreign currency exchange	41,027	25,208	13,874	0	80,109
Balance due to related parties, January 31, 2018	$   1,336,203	$    126,676	$ 161,621	$ 397,532	$ 2,022,032