NOTE 6 - RELATED PARTY TRANSACTIONS

9 Months Ended

Jan. 31, 2019

Notes

NOTE 6 - RELATED PARTY TRANSACTIONS

NOTE 6 - RELATED PARTY TRANSACTIONS

Accounts receivable - related party and revenue - related party

As of January 31, 2020 and April 30, 2019, $2,644,820 and $2,477,659 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 January 31, 2020 and 2019, we recorded revenue - related party and cost of revenue – related party of $1,784,135 and $1,081,379, $1,955,319 and $1,124,137, respectively, from Qufu Shengwang Import and Export. For the nine months ended January 31, 2020 and 2019, we recorded revenue - related party and cost of revenue – related party of $5,882,694 and $3,195,115, $5,671,819 and $3,022,288, 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, 2020 and 2019, we received advances from related parties for working capital that totaled $4,980,422 and $3,589,014, respectively, and we repaid to related parties a total of $6,215,431 and $666,121, respectively.

In the three months ended January 31, 2020 and 2019, interest expense related to due to related parties amounted to $32,023 and $35,855, and nine months ended January 31, 2020 and 2019, interest expense related to due to related parties amounted to $96,123 and $101,546, respectively, which were included in interest expense - related parties in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss, and in connection with the advances of $715,738 (RMB5,000,000) and $1,145,180 (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 7.0% and 6.3% per annum, respectively. On December 12, 2019, we repaid $1,149,394 including the above advance of $1,145,180 (RMB8,000,000) and its accrued interest. The other advances bear no interest and are payable on demand. 

As of January 31, 2020, the balance we owed Pharmaceutical Corporation, Qufu Shengwang Import and Export and Mr. Weidong Chai, a management member of Qufu Shengren Pharmaceutical Co., Ltd., amounted to $4,447,574, $357,891 and $188,159, respectively. On April 30, 2019, the balances we owed to Pharmaceutical Corporation, Qufu Shengwang Import and Export and Mr. Weidong Chai amounted to $5,669,776, $557,976 and $180,769, respectively.

As of January 31, 2020 and April 30, 2019, balances 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, 2019	$     5,669,776	$         557,976	$   180,769	$      6,408,521
Working capital advances from related parties	3,843,443	1,095,764	41,215	4,980,422
Repayments	(4,908,085)	(1,278,716)	(28,630)	(6,215,431)
Effect of foreign currency exchange	(157,560)	(17,133)	(5,195)	(179,888)
Balance due to related parties, January 31, 2020	$     4,447,574	$         357,891	$   188,159	$      4,993,624