NOTE 6 - RELATED PARTY TRANSACTIONS

12 Months Ended

Apr. 30, 2020

Notes

NOTE 6 - RELATED PARTY TRANSACTIONS

NOTE 6 - RELATED PARTY TRANSACTIONS

Accounts receivable - related party and revenue - related party

For the fiscal years ended April 30, 2020 and 2019, we recorded revenue from related party of $8,218,993 and $4,421,864, 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. As of April 30, 2020 and 2019, related party accounts receivable totaled $3,034,365 and $2,477,659, respectively, were due from Qufu Shengwang Import and Export Corporation.

Due to (from) related parties

From time to time, we received advances from related parties for working capital purposes and repaid funds to related parties. During the fiscal years ended April 30, 2020 and 2019, we received advances from related parties for working capital that totaled $7,977,435 and $4,564,183 respectively, and we repaid to related parties a total of $9,043,962 and $984,472, respectively.

In the fiscal years ended April 30, 2020 and 2019, interest expense related to due to related parties amounted to $108,461 and $136,914, respectively, which were included in interest expense in the accompanying consolidated statements of operations and comprehensive loss, and in connection with the advances of $742,512 (RMB5,000,000) and $1,188,019 (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. On December 12, 2019, we repaid $1,149,394 including the above advance of $1,145,180 (RMB8,000,000) and its accrued interest.

On September 23, 2018, the Company borrowed a one-year loan of $158,644 (RMB1,110,000) from Weidong Cai, a management member of Qufu Shengren, bearing an annual interest rate of 10%. On September 23, 2019, the parties extended the loan for another year, under the same terms and conditions, accrued interest were added to the original principal of this loan.

On April 30, 2020, the balance we owed to Pharmaceutical Corporation, Qufu Shengwang Import and Export and Mr. Weidong Chai, a management member of Qufu Shengren Pharmaceutical Co., Ltd., amounted to $3,981,915, $906,879, and $183,657, respectively. On April 30, 2019, the balance 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.

For the fiscal years ended April 30, 2020 and 2019, due to (from) related party activities consisted of the following: 

	Pharmaceutical Corporation	Qufu Shengwang Import and Export	Mr. Weidong Chai	Total
Balance due to related parties, April 30, 2018	$2,658,069	$103,169	$175,781	$2,937,019
Working capital advances from related parties	4,041,634	507,293	15,256	4,564,183
Repayments	(843,678)	(140,795)	0	984,472
Effect of foreign currency exchange	(186,250)	88,309	(10,268)	(108,209)
Balance due to related parties, April 30, 2019	$5,669,776	$557,976	$180,769	$6,408,521
Working capital advances from related parties	4,115,965	3,821,836	39,634	7,977,435
Repayments	(5,564,169)	(3,451,208)	(28,585)	(9,043,962)
Effect of foreign currency exchange	(239,657)	(21,725)	(8,161)	(269,543)
Balance due (from) to related parties, April 30, 2020	$3,981,915	$906,879	$183,657	$5,072,451