Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. CD INTERNATIONAL ENTERPRISES, INC. (1088787) 10-Q published on May 16, 2017 at 4:41 pm
Reporting Period: Mar 30, 2017
Diluted net income (loss) per share is computed using the weighted average number of common shares and dilutive potential common shares outstanding during the respective periods. The potentially dilutive securities that were not included in the calculation of diluted net income (loss) per share in the periods presented where their inclusion would be anti-dilutive including option to purchase common shares of 0 and 450, and convertible note convertible into common shares of (404,070,910) and 19,148 on a weighted average basis for the three months ended March 31, 2017 and 2016; and option to purchase common shares of 0 and 450, warrant to purchase common shares of 0 and 23, convertible preferred stock to convert into common shares of 995,054,090 and 125,063, and convertible note convertible into common shares of 221,845,730 and 34,788 on a weighted average basis for the six months ended March 31, 2017 and 2016, respectively.
Our Trading segment engages in the source and distribution of the global purchase and sale of industrial commodities in the Americas, which include Cannabidiol (CBD)-related products, oil-related products, mineral ores and non-ferrous metals. We have realigned our investments to our industrial commodities business in the Americas to maximize our profits and cash flow over the past fiscal years of 2017 and 2016. We are very excited to begin retailing CBD-based products in Chinese-speaking communities through the newly established subsidiary, while also pursuing opportunities to distribute bulk CBD crystal in the U.S. Research has indicated CBD to be effective in treating epilepsy, Alzheimer's disease, cirrhosis of the liver and to provide relief from hangover, anxiety and stress. Because natural extract of CBD-based products is so similar to traditional Chinese medicine, management believes there is huge opportunity in Chinese-speaking communities for CBD-based products. We plan to choose the best products available to start penetration of these enormous potential markets.
A significant portion of our business and operations are in China and, accordingly, its national economy plays a significant role in our results of operations. The Chinese economy advanced 6.9% year-on-year in the first quarter of 2017. Exports from China increased by 16.4 percent year-on-year to $180.6 billion in March of 2017, following a 1.3 percent decrease in February while markets expected a 3.2 percent growth. Considering the first three months of 2017, exports went up 8.2 percent from the same period a year earlier with sales increasing to Hong Kong (0.9 percent), India (14.2 percent), Japan (4.8 percent), South Korea (17.4 percent), Taiwan (10 percent), ASEAN countries (11.4 percent), the EU countries (7.4 percent), South Africa (16.5 percent), Brazil (35.8 percent), Russia (22.4 percent), Australia (8.7 percent) and New Zealand (6.5 percent).
AWe have been working on several major contracts focus on sourcing and distributing a variety of Cannabidiol-related products, oil-related products, industrial commodities such as iron ore and copper concentrate, we expect to see major transactions executed in 2017. In April 2017, the Company launched a new division to distribute Cannabidiol ("CBD") crystal in the U.S. and CBD-based products to Chinese speaking population. The launch of Green Products Distribution and the associated online store is a key part of the expansion plans underway. Our primary goal with this launch is to retail CBD-based products in Chinese-speaking communities, which collectively represent a potential global market of over 1.6 billion people.
The CBD crystal is processed from industrial hemp and manufactured in China. The Chinese have long embraced homeopathic and natural remedies. CBD has been used to treat epilepsy, cirrhosis of the liver, to provide relief from anxiety, stress and to assist those burdened with Alzheimer’s disease. Green Products Distribution has launched a new online store (http://www.greencbdproducts.com/cbd). This is a key part of CD International’s new expansion plan. The Company has entered several distribution agreements with major U.S. CBD-based manufacturers to market CBD-based products to Chinese speaking population.