Nice 2009 results...future looks encouraging.....
I think it has become fairly obvious at this point that RHGP intends to seek an uplisting out of the pink sheets, and most likely you will eventually see RHGP trading on the AMEX or Nasdaq at some point in the future. This was probably the most detailed/extensive annual report that RHGP has filed, and they appear to be quite serious about remaining compliant with their SEC filings and getting all of their financial matters in order......
Since the third quarter of our 2009 fiscal year, we have begun the implementation of some of the remedial measures described above, including hiring of a new chief financial officer, additional staff, engaging consultants, training our staff, implementing more rigorous policies and procedures relating to period-end financial reporting, journal-entry approval, supporting documentation, and account reconciliations. We expect to continue to implement additional financial and management controls, reporting systems and procedures.
One interesting thing I noted in the 10K was that there was absolutely no mention of any kind regarding two research and development projects that were prominently featured in past filings (the diagnostic kits and lysozyme). My best guess is that during the above mentioned review process the company may have determined that those projects are actually owned/controlled by one of the CEO's other companies and may not be technically owned by RHGP. So at this point I am assuming the diagnostic kits that I have previously referred to are no longer part of the RHGP immediate picture.
Financial results for 2009 looked pretty good, IMO. The EPS number I use below is based on a fully-diluted share count (38.3M, includes 1.07M warrants) and fully-taxed (25%)....
43.4M rev
14.8M net income
.29 EPS
This item from the "Current R&D Projects" section of the annual report looks very encouraging.....
Siberian Ginseng (Acanthopanax) Development Project. We have been successful in separating effective components of Siberian Ginseng (Acanthopanax), namely total glucosides, total flavonoids and syringin, in particular, syringin has significant effects in the treatment of depression and nerve regulation. We have created a sample of syringin freeze-dried Acanthopanax powder spasmolytic that is currently undergoing pilot test. If successful, this achievement represents great pioneering work in the field of Chinese medicine, and will enhance our competitive edge in this area.
