Cover
Cover - USD ($) | 12 Months Ended | |
Dec. 31, 2011 | Jan. 06, 2020 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2011 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2011 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | CHUN CAN CAPITAL GROUP | |
Entity Central Index Key | 0001191334 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Public Float | $ 75,295 | |
Entity Common Stock, Shares Outstanding | 33,011 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2011 | Dec. 31, 2010 |
Current assets: | ||
Cash and cash equivalents | ||
Loans receivable | ||
Total current assets | ||
Long-term investments | ||
Property and equipment, net | ||
Equity method investments | ||
Deposits and other assets | ||
Total assets | 0 | 0 |
Current liabilities: | ||
Accounts payable | ||
Accrued liabilities | ||
Other current liabilities | ||
Total current liabilities | ||
Accrued severance benefits | ||
Convertible debt | ||
Total liabilities | 0 | 0 |
Commitments | ||
Stockholders' deficit: | ||
Preferred stock: par value $0.001 per share, 30,000,000 shares authorized, none issued and outstanding | ||
Common stock: par value $0.001 per share, 270,000,000 shares authorized, 33,011 and 23,825 shares issued and outstanding | 3 | 2 |
Additional paid-in capital | 20,666 | 20,389 |
Accumulated deficit | (20,669) | (20,391) |
Accumulated other comprehensive loss | ||
Total stockholders' deficit | 0 | 0 |
Total liabilities and stockholders' deficit | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2011 | Dec. 31, 2010 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 270,000,000 | 270,000,000 |
Common stock, shares issued | 33,011 | 23,825 |
Common stock, shares outstanding | 33,011 | 23,825 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2011 | Dec. 31, 2010 | |
Income Statement [Abstract] | ||
Net revenues | ||
Operating expenses: | ||
General and administrative expenses | 278 | 874 |
Depreciation and amortization | ||
Goodwill impairment loss | 2,559 | |
Total operating expenses | 278 | 3,433 |
Loss from operations | (278) | (3,433) |
Other income (expenses): | ||
Net loss on sale of property and equipment | (23) | |
Interest expense | (283) | |
Impairment loss on investment | (7,014) | |
Share of loss from equity investment | (8,878) | |
Foreign currency transactions, net | 2,313 | |
Gain on debt settlement | 37,008 | |
Other income (expenses), net | 23,123 | |
Income (loss) before income taxes | (278) | 19,690 |
Income tax expense | ||
Net income (loss) | (278) | 19,690 |
Other comprehensive income (loss) | ||
Reclassification related to disposals during year | (3,668) | |
Other comprehensive income (loss) | (3,668) | |
Total comprehensive income (loss) | $ (278) | $ 16,022 |
Income (loss) per share- basic and diluted: | $ (0.01) | $ 0.83 |
Weighted average number of common shares outstanding - basic and diluted | 26,930 | 23,825 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2011 | Dec. 31, 2010 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (278) | $ 19,690 |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Investment impairment | 7,014 | |
Impairment of goodwill | 2,559 | |
Share of loss from equity investment | 8,878 | |
Net loss on sale of property | 23 | |
Foreign currency transaction (gain) loss | (2,313) | |
Shares issued for services | 278 | |
Gain on debt settlement | (37,008) | |
(Increase) decrease in assets: | ||
Prepaid expenses and other assets | 478 | |
Security deposits | 46 | |
Increase (decrease) in liabilities: | ||
Accounts payable | 387 | |
Accrued liabilities | (87) | |
Cash provided by (used in) operating activities | (333) | |
Cash flows from investing activities: | ||
Payments on loan receivable | ||
Proceeds from loan receivable | 12 | |
Cash provided by investing activities | 12 | |
Cash flows from financing activities: | ||
Proceeds from notes payable | ||
Principal payments of notes payable | ||
Cash used in financing activities | ||
Net decrease in cash and cash equivalent | (321) | |
Effect of foreign currency translation | 1 | |
Cash and cash equivalent - beginning of year | 320 | |
Cash and cash equivalent - end of year | ||
Supplemental Disclosure of Cash Flows Information: | ||
Cash paid during the year for: Interest | 83 | |
Cash paid during the year for: Income taxes |
Consolidated Statement of Stock
Consolidated Statement of Stockholders Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total |
Beginning Balance (in shares) at Dec. 31, 2009 | 23,825 | ||||
Beginning Balance at Dec. 31, 2009 | $ 2 | $ 20,389 | $ (36,416) | $ (3,668) | $ (19,690) |
Net Loss | 19,690 | 19,690 | |||
Other compehensive loss | (3,668) | 3,668 | |||
Ending Balance (in shares) at Dec. 31, 2010 | 23,825 | ||||
Ending Balance at Dec. 31, 2010 | $ 2 | 20,389 | (20,391) | 0 | |
Shares issued for services (in shares) | 9,186 | ||||
Shares issued for services | $ 1 | 277 | 278 | ||
Net Loss | (278) | (278) | |||
Other compehensive loss | |||||
Ending Balance (in shares) at Dec. 31, 2011 | 33,011 | ||||
Ending Balance at Dec. 31, 2011 | $ 3 | $ 20,666 | $ (20,669) | $ 0 |
Organization and Nature of the
Organization and Nature of the Business | 12 Months Ended |
Dec. 31, 2011 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of the Business | Note 1 – Organization and Nature of the Business Chun Can Capital Group (formerly Cintel Corp.), formerly Link2 Technologies, Inc. (the "Company") incorporated in Nevada in August 1996, is currently a non-operating shell company. The Company previously primarily owned and managed subsidiaries On September 30, 2003, the Company acquired 100% of the outstanding voting stocks of Cintel Co. Ltd. ("Cintel Korea") and in return, the shareholders of Cintel Korea received 16,683,300 shares (approximately 82%) of the Company's common stock. This transaction was a reverse-takeover by Cintel Korea whereby Cintel Korea's shareholders acquired the control of the Company. Cintel Korea, located in Seoul, Korea, was in the business of developing network solutions to improve technical limitations to the internet traffic. On October 30, 2006, the Company acquired 51% of the outstanding voting stocks of Phoenix Semiconductor Telecommunication Co., Ltd. ("PSTS") in China for $16.5 million. In March 2008, the Company contributed $4.9 million of additional capital to PSTS to proportionately match the additional investments made by the minority shareholders of PSTS. PSTS was in the business of semiconductor packaging and manufacturing. On May 18, 2007, the Company acquired 100% of the outstanding voting stocks of Bluecomm Korea, Co. Ltd. ("Bluecomm") in Korea for $6.5 million. Bluecomm was engaged in the business of Customer Relationship Management (CRM) solution and consulting, call-center operation, and database marketing. On August 27, 2007, the Company acquired 50.1% of the outstanding voting stocks of Phoenix Digital Tech Co. Ltd. ("PDT") in Korea for $34.7 million. PDT was in the business of designing, manufacturing and installing automated assembly line for Flat Panel Displays, and manufacturing and testing of PCB related equipment based on customers' specification. Acquisitions of these subsidiaries were financed by issuing convertible debts to various parties. In October 2009, the convertible debts issued to Woori PEF was called, and in December 2009, to satisfy the debts, the Company transferred to the creditor (1) 100% ownership in Bluecomm, (2) 48% ownership in PDT and (3) 32% ownership interest in PSTS. As a result, the Company had only one wholly-owned subsidiary, Cintel Korea as of December 31, 2010. In 2011, the Company abandoned its' investment in Cintel Korea. Going Concern The Company's financial statements are presented on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company is a non-operating shell company which has experienced recurring operating losses and has.an accumulated deficit. These conditions raise uncertainty about the Company's ability to continue as a going concern for a period of one year from the issuance of these financial statements. The Company's ability to continue as a going concern is contingent upon its ability to secure additional financing and find a merger candidate. It is the intent of management to continue to raise additional funds and to pursue acquisitions of operating companies in order to generate future profits for the Company. Although the Company plans to pursue additional equity financing and acquisitions, there can be no assurance that the Company will be able to secure financing or acquisition targets when needed or obtain such on terms satisfactory to the Company, if at all. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty. |
Summary of Significant Accounti
Summary of Significant Accounting Principles | 12 Months Ended |
Dec. 31, 2011 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Principles | Note 2 – Summary of Significant Accounting Policies: The following summary of significant accounting policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of the Company's management, who is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results may differ materially from these estimates. In addition, any changes in these estimates or their related assumptions could have a materially adverse effect on the Company's operating results. Basis of Presentation and Consolidation The accompanying consolidated financial statements previously includee the accounts of Chun Can Capital Group (formerly Cintel Corp.) and its wholly owned subsidiary, Cintel Korea, (collectively, the Company). Intercompany transactions and balances were eliminated in consolidation. When the Company did not have a controlling interest in an entity, but exerts significant influence over the entity, the Company applied the equity method of accounting. Where the functional currency of the Company's foreign subsidiaries is the local currency, all assets and liabilities are translated into U.S. dollars, in accordance with FASB ASC 830, Foreign Currency Translation On March 16, 2017, the Company effected a 1 for 4,000 reverse stock split. All share and per share information have been retroactively adjusted for this reverse stock split. Revenue Recognition The Company recognizes revenue upon shipment of products, or upon acceptance of products by customers, when pervasive evidence of a sales arrangement exists, the price is fixed or determinable, the title has transferred and collection of resulting receivables is reasonably assured. The Company had no revenues during periods presented. Cash and Cash Equivalents Cash includes currency, checks issued by others, other currency equivalents, current deposits and passbook deposits held by financial institutions. Cash equivalents consist primarily of cash deposits in money market funds that are available for withdrawal without restriction. The investments that mature within three months from the investment date are also included as cash equivalents. Investments Securities Investments are accounted in accordance with the provisions of FASB ASC 320, Accounting for Certain Investments in Debt and Equity Securities Trading and available-for-sale securities are recorded at fair value. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts. Unrealized holding gains and losses on trading securities are included in earnings. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of accumulated other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis. A decline in the market value of any available-for-sale or held-to-maturity security below cost that is deemed to be other than temporary results in an impairment to reduce the carrying amount to fair value. To determine whether an impairment is other-than-temporary, the Company considers all available information relevant to the collectability of the security, including past events, current conditions, and reasonable and supportable forecasts when developing estimate of cash flows expected to be collected. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year-end, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. Investments in long-term non-marketable equity securities are recorded at cost and consist primarily of non-marketable common and preferred stock of private companies with less than 20% of the voting rights. Gains and losses on securities sold are included in the statement of operations. Investments subject to significant influence have been recorded using the equity method. At December 31, 2011, all investments were fully impaired. Property and Equipment Property and equipment, including renewals and betterments, are stated at cost. Cost of renewals and betterment that extend the economic useful lives of the related assets are capitalized. Expenditures for ordinary repairs and maintenance are charged to expense as incurred. Gain or loss on sale or disposition of assets is included in the statement of operations. Depreciation is provided using the straight-line method over the following estimated useful lives of the assets. Machinery and equipment 5 - 10 years Furniture and fixtures 5 years Vehicles 5 years Software 5 years Long-Lived Assets Impairment The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount, an impairment loss would be measured based on the discounted cash flows compared to the carrying amount. Goodwill and Other Intangible Assets The Company accounts for goodwill and other intangible assets under FASB ASC 350, Goodwill and Other Intangible Assets The Company performs its annual impairment review of goodwill at December 1, and when a triggering event occurs between annual impairment tests. FASB ASC also requires that intangible assets with definitive lives be amortized over their estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate an asset's carrying value may not be recoverable. Currently the Company amortizes acquired intangible assets with definite lives over periods ranging primarily from five to ten years. Fair Value Measurements The Company follows the provisions of FASB ASC Topic 820, Fair Value Measurements, Fair Value Measurements and Disclosures, Fair Value of Financial Instruments In accordance with ASC 820, the Company to determines the fair value of financial assets and liabilities using a specified fair-value hierarchy. The objective of the fair value measurement of our financial instruments is to reflect the hypothetical amounts at which we could sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date (exit price). ASC 820 describes three levels of inputs that may be used to measure fair value, as follows: · Level 1 inputs are quoted prices in active markets for identical asset or liability that the reporting entity has the ability to access at the measurement date. · Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. · Level 3 inputs are unobservable inputs for the asset or liability that supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. The fair values of securities available-for-sale are generally determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist of cash equivalents and loan receivables. Cash equivalents are maintained with high quality institutions, the composition and maturities of which are regularly monitored by management. The Company diversifies its investments to reduce the exposure to loss from any single issuer, sector or bank. For loan receivables, the Company determines, on a continuing basis, the probable losses and sets up a provision for losses based on the estimated realizable value. Concentration of credit risk arises when a group of customers having similar characteristics such that their ability to meet their obligations is expected to be affected similarly by changes in economic conditions. Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, Accounting for Income Taxes, The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2011 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 3 – Goodwill The following table sets forth changes in the carrying of goodwill for the years ended December 31, 2011 and 2010: (In thousands) Balance as of December 31, 2009 $ 2,559 Goodwill impairment* (2,559 ) Balance as of December 31, 2010 $ - * The Company determined that the value of goodwill associated with the minority ownership in PSTS, a privately held company, which investment was accounted for under cost method is unlikely to be recoverable. Therefore, the Company determined that the goodwill was impaired as of December 31, 2010. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4 - Income Taxes Corporate tax rates range from 10% to 34%. The Company provided a valuation allowance equal to the deferred tax amounts resulting from the tax losses in the United States, as it is not likely that they will be realized. The U.S. tax losses can be carried forward for 15 to 20 years to offset future taxable income and expire in years 2020 to 2029. The provision for income taxes for the years ended December 31, 2011 and 2010 are summarized as follows: 2011 2010 (In thousands) Income tax – current $ - $ - Income tax – deferred - - $ - $ - The Company has deferred tax assets (liabilities) at December 31, 2011 and 2010 as follows: 2011 2010 (In thousands) Net operating loss carryforwards $ - $ - Valuation allowance (- ) (- ) $ - $ - |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2011 | |
Equity [Abstract] | |
Capital Stock | Note 5 – Capital Stock On March 12, 2011, the Company entered into a share purchase agreement with an officer of the Company, for the sale and issuance of 1,391 shares of common stock at a price of $0.03 per share. In the 4 th |
Summary of Significant Accoun_2
Summary of Significant Accounting Principles (Policies) | 12 Months Ended |
Dec. 31, 2011 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results may differ materially from these estimates. In addition, any changes in these estimates or their related assumptions could have a materially adverse effect on the Company's operating results. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying consolidated financial statements previously includee the accounts of Chun Can Capital Group (formerly Cintel Corp.) and its wholly owned subsidiary, Cintel Korea, (collectively, the Company). Intercompany transactions and balances were eliminated in consolidation. When the Company did not have a controlling interest in an entity, but exerts significant influence over the entity, the Company applied the equity method of accounting. Where the functional currency of the Company's foreign subsidiaries is the local currency, all assets and liabilities are translated into U.S. dollars, in accordance with FASB ASC 830, Foreign Currency Translation On March 16, 2017, the Company effected a 1 for 4,000 reverse stock split. All share and per share information have been retroactively adjusted for this reverse stock split. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue upon shipment of products, or upon acceptance of products by customers, when pervasive evidence of a sales arrangement exists, the price is fixed or determinable, the title has transferred and collection of resulting receivables is reasonably assured. The Company had no revenues during periods presented. |
Investments Securities | Investments Securities Investments are accounted in accordance with the provisions of FASB ASC 320, Accounting for Certain Investments in Debt and Equity Securities Trading and available-for-sale securities are recorded at fair value. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts. Unrealized holding gains and losses on trading securities are included in earnings. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of accumulated other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis. A decline in the market value of any available-for-sale or held-to-maturity security below cost that is deemed to be other than temporary results in an impairment to reduce the carrying amount to fair value. To determine whether an impairment is other-than-temporary, the Company considers all available information relevant to the collectability of the security, including past events, current conditions, and reasonable and supportable forecasts when developing estimate of cash flows expected to be collected. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year-end, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. Investments in long-term non-marketable equity securities are recorded at cost and consist primarily of non-marketable common and preferred stock of private companies with less than 20% of the voting rights. Gains and losses on securities sold are included in the statement of operations. Investments subject to significant influence have been recorded using the equity method. At December 31, 2011, all investments were fully impaired. |
Property and Equipment | Property and Equipment Property and equipment, including renewals and betterments, are stated at cost. Cost of renewals and betterment that extend the economic useful lives of the related assets are capitalized. Expenditures for ordinary repairs and maintenance are charged to expense as incurred. Gain or loss on sale or disposition of assets is included in the statement of operations. Depreciation is provided using the straight-line method over the following estimated useful lives of the assets. Machinery and equipment 5 - 10 years Furniture and fixtures 5 years Vehicles 5 years Software 5 years |
Long-Lived Assets Impairment | Long-Lived Assets Impairment The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount, an impairment loss would be measured based on the discounted cash flows compared to the carrying amount. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company accounts for goodwill and other intangible assets under FASB ASC 350, Goodwill and Other Intangible Assets The Company performs its annual impairment review of goodwill at December 1, and when a triggering event occurs between annual impairment tests. FASB ASC also requires that intangible assets with definitive lives be amortized over their estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate an asset's carrying value may not be recoverable. Currently the Company amortizes acquired intangible assets with definite lives over periods ranging primarily from five to ten years. |
Fair Value Measurements | Fair Value Measurements The Company follows the provisions of FASB ASC Topic 820, Fair Value Measurements, Fair Value Measurements and Disclosures, |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist of cash equivalents and loan receivables. Cash equivalents are maintained with high quality institutions, the composition and maturities of which are regularly monitored by management. The Company diversifies its investments to reduce the exposure to loss from any single issuer, sector or bank. For loan receivables, the Company determines, on a continuing basis, the probable losses and sets up a provision for losses based on the estimated realizable value. Concentration of credit risk arises when a group of customers having similar characteristics such that their ability to meet their obligations is expected to be affected similarly by changes in economic conditions. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, Accounting for Income Taxes, The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. |