Kandi Technologies Reports First Quarter 2019 Financial Results
- Q1 revenue increased 116.8% YoY to $18.1 million
- Q1 off-road vehicles sales increased 169.8% YoY to $5.3 million
- Q1 gross margin increased to 17.4% compared to 16.1%
JINHUA, China, May 10, 2019 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the first quarter of 2019.
First Quarter Highlights
- Total revenues increased 116.8% to $18.1 million for the first quarter of 2019, from $8.3 million for the same period in 2018.
- Electric Vehicle (“EV”) parts sales increased 100.4% to $12.8 million for the first quarter of 2019, compared with $6.4 million in the same period in 2018.
- Off-road vehicle revenues increased 169.8% to $5.3 million for the first quarter of 2019 compared with $2.0 million in the same period in 2018.
- GAAP net loss for the first quarter of 2019 was $4.4 million, or $0.09 loss per fully-diluted share, compared with net income of $3.7 million, or $0.07 income per fully-diluted share in the same period in 2018.
- Non-GAAP adjusted net loss1, which excludes stock compensation expenses of $0.03 million and changes in the fair value of contingent consideration, which was a gain of $0.09 million, was $4.5 million in the first quarter of 2019, compared with non-GAAP net loss of $0.6 million for the same period of 2018. Non-GAAP adjusted loss per share1 was approximately $0.09 loss per fully diluted share for the first quarter of 2019 compared with Non-GAAP adjusted loss per share1 of $0.01 per fully diluted share for the same quarter in 2018.
- The Company’s working capital surplus was $8.5 million as of March 31, 2019. Cash, cash equivalents and restricted cash totaled $8.4 million as of March 31, 2019.
Mr. Hu Xiaoming, Chairman and Chief Executive Officer of Kandi, commented, “Total revenues in the first quarter increased 116.8%, which represents an incredible year-over-year growth. However, the Chinese government’s national subsidy policy adjustment during the first quarter coupled with the JV Company’s pending restructuring, which is taking place in order to maximize the JV Company’s ability to grow into a prominent company, has resulted in our modifying the JV Company’s business development plan with respect to its integration into Geely under Geely’s management as a primary shareholder. This transition period has directly impacted production and sales, causing a loss for the JV Company. Despite this transitional period, the JV Company has made many meaningful advances in the first quarter. In the beginning of the year, Kandi Jiangsu received an approval notice from Jiangsu Development and Reform Commission with respect to Kandi Jiangsu’s application to an annual capacity of 50,000 pure electric vehicles project. This approval gives Kandi Jiangsu a license to build the factory for EV manufacturing. In April, a team of EV industry experts from the Ministry of Industry and Information Technology and we are currently anticipating approval.”
“Additionally, Kandi has taken advantage of every available opportunity to get into the online ride-hailing market by signing cooperative agreements with several major industry players such as Zhejiang Ruibo, Caocao Zhuan Che, China Resources (Zhejiang), and Didi Chuxing to provide government-accredited EVs. We strongly believe that car-sharing is a promising area with significant room for growth, and that the Company’s continued efforts in laying the foundations for supplying government-accredited EVs to drive sales growth will allow us to regain our position as the leading electric vehicle products manufacturer in the market. Furthermore, the JV Company will be able to achieve faster growth with Geely’s corporate resources and branding profile. While the restructuring reduces Kandi’s equity stake in the JV company to 22%, we believe that the value of Kandi’s 22% equity ownership in the JV Company, following the restructuring, will far exceed Kandi’s original 50% equity in the future.” Mr. Hu concluded.
Net Revenues and Gross Profit
| | 1Q19 | | 1Q18 | | Y-o-Y% | |
| Net Revenues (US$mln) | $18.1 | | $8.3 | | 116.8% | |
| Gross Profit (US$mln) | $3.1 | | $1.3 | | 113.6% | |
| Gross Margin | 17.4% | | 16.1% | | - | |
Net revenues for the first quarter increased 116.8% compared to the same period last year. The increase in revenue was mainly due to the increase in EV parts sales during this quarter. The increase in EV parts sales was primarily due to the increased sales volume of battery packs.
Operating Income (Loss)
| | 1Q19 | | 1Q18 | | Y-o-Y% | |
| Operating Expenses (US$mln) | $3.2 | | $1.1 | | 188.5%) | |
| Operating (Loss) Income (US$mln) | ($0.06) | | $0.2 | | (124.5%) | |
| Operating Margin | (0.3%) | | 2.9% | | - | |
Total operating expenses in the first quarter were $3.2 million, compared with $1.1 million in the same quarter of 2018. The increase in total operating expenses was primarily due to increased general and administrative, which was $2.1 million in this quarter, compared with $0.4 million in the same quarter last year.
GAAP Net Income
| | 1Q19 | | 1Q18 | | Y-o-Y% | |
| Net (Loss) Income (US$mln) | ($4.4) | | $3.7 | | (218.3%) | |
| (Loss) earnings per Weighted Average Common Share Outstanding Basic | ($0.09) | | $0.07 | | - | |
| (Loss) earnings per Weighted Average Common Share Outstanding Diluted | ($0.09) | | $0.07 | | - | |
| Stock Compensation expenses | $0.03 | | ($1.6) | | - | |
| Change in fair value of contingent consideration | ($0.09) | | ($2.7) | | - | |
| Non-GAAP net Loss | ($4.5) | | ($0.6) | | 686.6% | |
Net loss was $4.4 million in the first quarter, compared with net income of $3.7 million in the same quarter of 2018. The decrease was primarily attributable to the increased share of loss of the JV Company compared to the same period of last year.
Non-GAAP net loss was $4.5 million, a 686.6% increase in loss in the first quarter of 2019 compared to net loss of $0.6 million in the same quarter of 2018. The increase in Non-GAAP net loss was primarily attributable to an increased share of loss of the JV Company from the JV Company compared to the same period of last year.
JV Company Financial Results
In this quarter, total revenue was $1.3 million as compared to $33.8 million for the quarter ended March 31, 2018.
The condensed financial income statement of the JV Company in the first quarter is as below:
| | 1Q19 | | 1Q18 | | Y-o-Y% | |
| Net Revenues (US$mln) | $1.3 | | $33.8 | | (96.3%) | |
| Gross (Loss) Profit (US$mln) | ($0.02) | | $5.6 | | (100.4%) | |
| Gross Margin | (1.7%) | | 16.5% | | - | |
| Net (Loss) Income | ($20.2) | | $1.0 | | (2076.4%) | |
| % of Net revenue | (1606.5%) | | 3.0% | | - | |
Kandi’s investments in the JV Company are accounted for under the equity method of accounting. Since loan to equity conversion in the JV Company resulting Kandi a 43.47% ownership was completed at end of this quarter and the transfer of 21.47% equity interests in the JV Company to a Geely affiliate has not been completed as of March 31, 2019, Kandi recorded 50% of the JV Company’s loss of $10.1 million for this quarter. After eliminating intra-entity profits and losses, Kandi’s share of the after tax loss of the JV Company was $9.9 million for the first quarter of 2019.
First Quarter of 2019 Conference Call Details
The Company has scheduled a conference call and live webcast to discuss its financial results at 8:00 A.M. Eastern Time (8:00 P.M. Beijing Time) on May 10, 2019. Mr. Hu Xiaoming, Chief Executive Officer of the Company, and Ms. Zhu Xiaoying, interim Chief Financial Officer of the Company, will deliver prepared remarks to be followed by a question and answer session.
The dial-in details for the conference call are as follows:
The live audio webcast can also be accessed by visiting Kandi's Investor Relations page on the Company’s website at http://www.kandivehicle.com. An archive of the webcast will be available on the Company’s website following the live call.
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. ("Kandi Vehicles") and its subsidiaries, SC Autosports, LLC, the wholly-owned subsidiary of Kandi in the United States and Kandi Electric Vehicles Group Co., Ltd. (the “JV Company”). Kandi Vehicles has established itself as one of China's leading manufacturers of pure electric vehicle parts and off-road vehicles.
In 2013, Kandi Vehicles and Geely Group, China's leading automaker, jointly invested in the establishment of the JV Company in order to develop, manufacture and sell pure electric vehicle ("EV") products. As of March 31, 2019, Geely Group (including its affiliate) hold a 56.53%, and Kandi Vehicles holds 43.47% in the JV Company, pending a closing of a transfer of 22% of the equity interests of the JV Company from Kandi Vehicles to a Geely’s affiliate, resulting in Kandi Vehicles to hold 21.47% upon the closing. The JV Company has established itself as one of the driving forces in the development and the manufacturing of pure EV products in China.
More information about KNDI is available on the Company's corporate website at http://www.kandivehicle.com. The Company routinely posts important information on its website.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Follow us on Twitter: @ Kandi_Group
Company Contact:
Ms. Kewa Luo
Kandi Technologies Group, Inc.
Phone: 1-212-551-3610
Email: IR@kandigroup.com
– Tables Below –
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
| | March 31,
2019 | | | December 31,
2018 | |
| | (UNAUDITED) | | | | |
| Current assets | | | | | |
| Cash and cash equivalents | $ | 3,327,013 | | | $ | 15,662,201 | |
| Restricted cash | | 5,134,661 | | | | 6,690,870 | |
| Accounts receivable (net of allowance for doubtful accounts of $138,678 and $120,010 as of March 31, 2019 and December 31, 2018, respectively) | | 49,397,918 | | | | 34,274,728 | |
| Inventories (net of provision for slow moving inventory of $829,523 and $840,701 as of March 31, 2019 and December 31, 2018, respectively) | | 27,223,890 | | | | 21,997,868 | |
| Notes receivable | | - | | | | 72,712 | |
| Notes receivable from the JV Company and related party | | 3,769,874 | | | | 3,861,032 | |
| Other receivables | | 2,662,856 | | | | 1,264,323 | |
| Prepayments and prepaid expense | | 10,864,614 | | | | 11,136,408 | |
| Due from employees | | 2,522 | | | | 1,001 | |
| Advances to suppliers | | 4,919,164 | | | | 4,705,183 | |
| Amount due from the JV Company, net | | 61,060,228 | | | | 67,683,462 | |
| Right - of - use asset | | 108,324 | | | | - | |
| TOTAL CURRENT ASSETS | | 168,471,064 | | | | 167,349,788 | |
| | | | | | | | |
| LONG-TERM ASSETS | | | | | | | |
| Property, plant and equipment, net | | 82,341,986 | | | | 82,045,923 | |
| Land use rights, net | | 11,954,930 | | | | 11,749,728 | |
| Deferred taxes assets | | 11,461 | | | | 8,204 | |
| Investment in the JV Company | | 126,492,405 | | | | 128,929,893 | |
| Goodwill | | 29,087,159 | | | | 28,552,215 | |
| Intangible assets | | 4,268,365 | | | | 4,328,127 | |
| Other long term assets | | 5,708,341 | | | | 5,865,386 | |
| TOTAL Long-Term Assets | | 259,864,647 | | | | 261,479,476 | |
| | | | | | | | |
| TOTAL ASSETS | $ | 428,335,711 | | | $ | 428,829,264 | |
| | | | | | | | |
| CURRENT LIABILITIES | | | | | | | |
| Accounts payable | $ | 114,345,244 | | | $ | 112,309,683 | |
| Other payables and accrued expenses | | 4,353,437 | | | | 4,251,487 | |
| Short-term loans | | 31,291,443 | | | | 30,539,236 | |
| Customer deposits | | 132,921 | | | | 94,408 | |
| Notes payable | | 6,300,010 | | | | 12,787,619 | |
| Income tax payable | | 2,046,046 | | | | 3,471,366 | |
| Due to employees | | 8,595 | | | | 28,473 | |
| Deferred income | | 1,362,082 | | | | 1,340,605 | |
| Lease liability | | 108,324 | | | | - | |
| Total Current Liabilities | | 159,948,102 | | | | 164,822,877 | |
| | | | | | | | |
| LONG-TERM LIABILITIES | | | | | | | |
| Long term bank loans | | 29,503,360 | | | | 28,794,136 | |
| Deferred taxes liability | | 1,711,343 | | | | 1,711,343 | |
| Contingent liability | | 7,167,000 | | | | 7,256,000 | |
| Other long-term liability | | - | | | | 622,034 | |
| Total Long-Term Liabilities | | 38,381,703 | | | | 38,383,513 | |
| | | | | | | | |
| TOTAL LIABILITIES | | 198,329,805 | | | | 203,206,390 | |
| | | | | | | | |
| STOCKHOLDER’S EQUITY | | | | | | | |
| Common stock, $0.001 par value; 100,000,000 shares authorized; 56,004,502 and 55,992,002 shares issued and 52,580,841 and 51,484,444 outstanding at March 31,2019 and December 31,2018, respectively | | 52,581 | | | | 51,484 | |
| Additional paid-in capital | | 258,377,036 | | | | 254,989,657 | |
| Retained earnings (the restricted portion is $4,422,033 and $4,422,033 at March 31,2019 and December 31,2018, respectively) | | (13,906,481 | ) | | | (9,497,009 | ) |
| Accumulated other comprehensive loss | | (14,517,230 | ) | | | (19,921,258 | ) |
| TOTAL STOCKHOLDERS’ EQUITY | | 230,005,906 | | | | 225,622,874 | |
| | | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 428,335,711 | | | $ | 428,829,264 | |
| | | | | | | | |
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
| | Three Months Ended | |
| | March 31,
2019 | | | March 31,
2018 | |
| | | | | | |
| REVENUES FROM UNRELATED PARTY, NET | | 16,334,963 | | | | 5,732,463 | |
| REVENUES FROM THE JV COMPANY AND RELATED PARTY, NET | | 1,733,497 | | | | 2,603,444 | |
| | | | | | | | |
| REVENUES, NET | | 18,068,460 | | | | 8,335,907 | |
| | | | | | | | |
| COST OF GOODS SOLD | | (14,932,023 | ) | | | (6,989,956 | ) |
| | | | | | | | |
| GROSS PROFIT | | 3,136,437 | | | | 1,345,951 | |
| | | | | | | | |
| OPERATING EXPENSES: | | | | | | | |
| Research and development | | (537,433 | ) | | | (757,298 | ) |
| Selling and marketing | | (618,003 | ) | | | (748,225 | ) |
| General and administrative | | (2,039,528 | ) | | | 398,171 | |
| Total Operating Expenses | | (3,194,964 | ) | | | (1,107,352 | ) |
| | | | | | | | |
| (LOSS) INCOME FROM OPERATIONS | | (58,527 | ) | | | 238,599 | |
| | | | | | | | |
| OTHER INCOME (EXPENSE): | | | | | | | |
| Interest income | | 252,404 | | | | 942,993 | |
| Interest expense | | (439,183 | ) | | | (550,417 | ) |
| Change in fair value of contingent consideration | | 89,000 | | | | 2,680,179 | |
| Government grants | | 47,724 | | | | 95,255 | |
| Gain from equity dilution in JV | | 4,365,390 | | | | - | |
| Share of (loss) income after tax of the JV Company | | (9,949,158 | ) | | | 795,055 | |
| Other income , net | | 474,390 | | | | 22,977 | |
| Total other (expense) income, net | | (5,159,433 | ) | | | 3,986,042 | |
| | | | | | | | |
| (LOSS) INCOME BEFORE INCOME TAXES | | (5,217,960 | ) | | | 4,224,641 | |
| | | | | | | | |
| INCOME TAX BENEFIT (EXPENSE) | | 808,488 | | | | (496,646 | ) |
| | | | | | | | |
| NET (LOSS) INCOME | | (4,409,472 | ) | | | 3,727,995 | |
| | | | | | | | |
| OTHER COMPREHENSIVE INCOME | | | | | | | |
| Foreign currency translation | | 5,404,028 | | | | 7,465,240 | |
| | | | | | | | |
| COMPREHENSIVE INCOME | | 994,556 | | | $ | 11,193,235 | |
| | | | | | | | |
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | | 51,565,287 | | | | 50,643,423 | |
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | | 51,565,287 | | | | 50,643,423 | |
| | | | | | | | |
| NET (LOSS) INCOME PER SHARE, BASIC | | (0.09 | ) | | $ | 0.07 | |
| NET (LOSS) INCOME PER SHARE, DILUTED | | (0.09 | ) | | $ | 0.07 | |
| | | | | | | | |
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| | Three Months Ended | |
| | March 31,
2019 | | | March 31,
2018 | |
| | | | | | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | |
| Net (loss) income | $ | (4,409,472 | ) | | $ | 3,727,995 | |
| Adjustments to reconcile net income to net cash provided by operating activities | | | | | | | |
| Depreciation and amortization | | 2,258,224 | | | | 875,463 | |
| Assets impairments | | (31,718 | ) | | | - | |
| Allowance for doubtful accounts | | 15,629 | | | | 240,419 | |
| Deferred taxes | | - | | | | (308,406 | ) |
| Share of (loss) income after tax of the JV Company | | 9,949,158 | | | | (795,055 | ) |
| Gain from equity dilution in JV | | (4,365,390 | ) | | | - | |
| Change in fair value of contingent consideration | | (89,000 | ) | | | (2,680,179 | ) |
| Stock compensation cost | | 31,675 | | | | (1,615,706 | ) |
| | | | | | | | |
| Changes in operating assets and liabilities, net of effects of acquisition: | | | | | | | |
| (Increase) Decrease In: | | | | | | | |
| Accounts receivable | | (17,991,854 | ) | | | 12,343,813 | |
| Deferred taxes assets | | - | | | | (53,414 | ) |
| Notes receivable | | 74,114 | | | | - | |
| Notes receivable from the JV Company and related party | | 444,682 | | | | (5,015,238 | ) |
| Inventories | | (4,659,780 | ) | | | 265,800 | |
| Other receivables and other assets | | (14,256,807 | ) | | | 752,017 | |
| Due from employee | | (21,961 | ) | | | (23,838 | ) |
| Advances to supplier and prepayments and prepaid expenses | | 436,768 | | | | 3,144,325 | |
| Advances to suppliers-long term | | - | | | | (3,712,576 | ) |
| Amount due from the JV Company | | (2,339,431 | ) | | | (9,902,514 | ) |
| | | | | | | | |
| Increase (Decrease) In: | | | | | | | |
| Accounts payable | | 22,593,966 | | | | 19,319,570 | |
| Other payables and accrued liabilities | | 5,459,852 | | | | (2,503,830 | ) |
| Notes payable | | (5,624,153 | ) | | | (16,117,038 | ) |
| Customer deposits | | 36,544 | | | | 120,458 | |
| Income tax payable | | (1,537,204 | ) | | | (819,372 | ) |
| Deferred income | | (11,483 | ) | | | 1,670,173 | |
| Net cash used in operating activities | $ | (14,037,641 | ) | | $ | (1,087,133 | ) |
| | | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | |
| Purchases of property, plant and equipment, net | | (300,704 | ) | | | (109,160 | ) |
| Purchases of land use rights and other intangible assets | | - | | | | (99,404 | ) |
| Acquisition of Jinhua An Kao (net of cash received) | | - | | | | (3,699,801 | ) |
| Purchases of construction in progress | | - | | | | (82,792 | ) |
| Net cash used in investing activities | $ | (300,704 | ) | | $ | (3,991,157 | ) |
| | | | | | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | |
| Proceeds from short-term bank loans | | 2,816,317 | | | | 3,775,587 | |
| Repayments of short-term bank loans | | (2,816,317 | ) | | | (3,775,587 | ) |
| Proceeds from notes payable | | - | | | | 25,539,803 | |
| Repayment of notes payable | | - | | | | (28,607,869 | ) |
| Net cash used in financing activities | $ | - | | | $ | (3,068,066 | ) |
| | | | | | | | |
| NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | | (14,338,345 | ) | | | (8,146,356 | ) |
| Effect of exchange rate changes on cash | | 446,948 | | | | 568,965 | |
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | | 22,353,071 | | | | 16,110,496 | |
| | | | | | | | |
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | | 8,461,674 | | | | 8,533,105 | |
| | | | | | | | |
| SUPPLEMENTARY CASH FLOW INFORMATION | | | | | | | |
| Income taxes paid | | 594,425 | | | | 1,466,761 | |
| Interest paid | | 439,183 | | | | 414,319 | |
| | | | | | | | |
| SUPPLEMENTAL NON-CASH DISCLOSURES: | | | | | | | |
| Long term and short term Advances to suppliers transferred to Construction in progress | | - | | | | 3,712,576 | |
| Settlement of due from the JV Company and related parties with notes receivable from related parties | | 10,586,387 | | | | 20,337,201 | |
| Settlement of accounts receivables with notes receivable from unrelated parties | | 3,750,148 | | | | 7,866 | |
| Settlement of other receivables with notes receivable from unrelated parties | | 2,001,067 | | | | - | |
| Assignment of notes receivable from unrelated parties to supplier to settle accounts payable | | 5,751,215 | | | | 7,866 | |
| Assignment of notes receivable from the JV Company and related parties to supplier to settle accounts payable | | 15,277,778 | | | | 18,996,867 | |
| Assignment of notes receivable from the JV Company and related parties to supplier to settle other payable | | 6,166,252 | | | | - | |
| Settlement of accounts payable with notes payables | | 2,488,735 | | | | 786,581 | |
| Replacement of notes payables with accounts payable | | 3,631,566 | | | | - | |
| Deferred tax changed to other comprehensive income | | - | | | | 42,528 | |
| | | | | | | | |
KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018
(UNAUDITED)
| | | Common Stock | | Additional | | Accumulated Other | | | |
| | | Shares | | Par
Value | | Paid-in
Capital | | Retained
Earnings | | Comprehensive
Income | | Total | |
| BALANCE AT JANUARY 1, 2018 | | | 48,036,538 | | $ | 48,037 | | $ | 233,055,348 | | $ | (3,802,310 | ) | $ | (6,310,763 | ) | $ | 222,990,312 | |
| Stock issuance and award | | | 2,972,337 | | | 2,972 | | | 19,099,556 | | | | | | | | | 19,102,528 | |
| Foreign currency translation | | | | | | | | | | | | | | | 7,465,240 | | | 7,465,240 | |
| Net income | | | | | | | | | | | | 3,727,995 | | | | | | 3,727,995 | |
| | | | | | | | | | | | | | | | | | | | |
| BALANCE AT MARCH 31, 2018 | | | 51,008,875 | | $ | 51,009 | | $ | 252,154,904 | | $ | (74,315 | ) | $ | 1,154,477 | | $ | 253,286,075 | |
| | | | | | | | | | | | | | | | | | | | |
| BALANCE AT JANUARY 1, 2019 | | | 51,484,444 | | $ | 51,484 | | $ | 254,989,657 | | $ | (9,497,009 | ) | $ | (19,921,258 | ) | $ | 225,622,874 | |
| Stock issuance and award | | | 1,096,397 | | | 1,097 | | | 3,387,379 | | | | | | | | | 3,388,476 | |
| Foreign currency translation | | | | | | | | | | | | | | | 5,404,028 | | | 5,404,028 | |
| Net loss | | | | | | | | | | | | (4,409,472 | ) | | | | | (4,409,472 | ) |
| | | | | | | | | | | | | | | | | | | | |
| BALANCE AT MARCH 31, 2019 | | | 52,580,841 | | $ | 52,581 | | $ | 258,377,036 | | $ | (13,906,481 | ) | $ | (14,517,230 | ) | $ | 230,005,906 | |
| | | | | | | | | | | | | | | | | | | | |
1Non-GAAP measures, including the Non-GAAP net income (loss) and Non-GAAP EPS are defined as the financial measures excluding the change of the fair value of contingent consideration and the effects of the stock compensation expense. We supply non-GAAP information because we believe it allows our investors to obtain a clearer understanding of our operations. Any non-GAAP measures should not be considered as a substitute for, and should only be read in conjunction with, measures of financial performance prepared in accordance with GAAP.
