China Pharma Holdings, Inc. Reports Third Quarter 2018 Financial Results

CHINA PHARMA HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Nine Months

Ended September 30,

2018

2017

Cash Flows from Operating Activities:

Net loss

$     (3,158,048)

$     (5,450,236)

Depreciation and amortization

2,499,114

2,447,866

Bad debt expense

1,481,786

954,518

Deferred income taxes

69,614

92,106

Impairment of long term assets

-

2,162,083

Changes in assets and liabilities:

Trade accounts and other receivables

(514,428)

21,325

Advances to suppliers

106,981

(251,306)

Inventory

471,995

1,237,573

Trade accounts payable

(516,263)

(1,303,944)

Accrued taxes payable

(114,432)

1,719

Other payables and accrued expenses

580,689

188,557

Advances from customers

86,675

(265,092)

Prepaid expenses

14,005

69,284

Net Cash Provided by (Used In) Operating Activities

1,007,688

(95,547)

Cash Flows from Investing Activities:

Purchases of property and equipment

(33,332)

(67,324)

Net Cash Used in Investing Activities

(33,332)

(67,324)

Cash Flows from Financing Activity:

Payments of construction term loan

(2,303,410)

(1,469,349)

Net Cash Used in Financing Activity

(2,303,410)

(1,469,349)

Effect of Exchange Rate Changes on Cash

(33,531)

90,857

Net (Decrease) Increase in Cash and Cash Equivalents

(1,362,585)

(1,541,363)

Cash and Cash Equivalents at Beginning of Period

2,030,214

2,665,802

Cash and Cash Equivalents at End of Period

$          667,629

$        1,124,439

Supplemental Cash Flow Information:

Cash paid for income taxes

$                       -

$                       -

Cash paid for interest

$           351,206

$           410,509

Supplemental Noncash Investing and Financing Activities:

Issuance of banker's acceptances

$          847,527

$          126,652

Accounts receivable collected with banker's acceptances

462,642

366,889

Inventory purchased with banker's acceptances

502,473

344,848