2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
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Basis of Presentation |
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These accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). |
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The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries CAM Group, CAM HK and CAM Hebei All inter-company balances and transactions have been eliminated in consolidation |
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Use of Estimates | ' |
Use of Estimates |
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The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the financial statements and accompanying notes. Actual results could differ from such estimates. |
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Cash and Cash Equivalents | ' |
Cash and cash equivalents |
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Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. |
Accounts Receivable | ' |
Accounts Receivable |
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Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company extends unsecured credit to its customers in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and determined based on managements’ assessment of known requirements, aging of receivables, payment history, the customer’s current credit worthiness and the economic environment. As of December 31, 2013, the Company had balance in accounts receivable of $1,675,831. |
Fixed Assets | ' |
Fixed Assets |
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Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: |
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| | Depreciable life | | Residual value | | |
Machinery and Equipment | | 5 years | | | 0 | % | | |
Furniture and fixture | | 7 years | | | 0 | % | | |
Computer and software | | 3 years | | | 0 | % | | |
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Expenditures for maintenance and repairs are expensed as incurred. |
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Revenue Recognition | ' |
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Revenue Recognition |
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In accordance with ASC 605-10-S99-1 for revenue recognition, the Company recognizes revenue when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the selling price is fixed or determinable and collectability is reasonably assured. Currently, our revenues are all generated from a related party. |
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(a) Advertising revenues |
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The Company set up its own media network by installing LCD displays in retail stores managed by a related party and provides air time for the clients’ advertisement through the network. Revenue is recognized when the air time is used by the clients. |
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After completing the installation of the LCD displays in 2012, the Company has entered an advertising services contract with this related party, pursuant to which the related party agrees to purchase a total of 15,768,000 seconds per year for LCD advertising time at a rate of no less than RMB2.54 (USD0.41), starting from June 2012. During the year of 2013, the Company generated all its advertising revenues from the related party in amount of $6,641,060. |
(b) Services revenues |
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Service revenue is primarily derived from acting as an agent in fertilizer trading. The Company serves primarily as a trading agent for this related party during the transactions. These services are generally billed on a time-cost plus basis. Revenue is recognized when services are rendered, products have been delivered, payments have been received, and risk of ownership has been transferred and accepted by the customers. |
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Cost of Revenues | ' |
Cost of Revenues |
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Cost of revenues consists primarily of the cost related to LCD display, direct labor, depreciation and overhead, which are directly attributable to revenue generation and the provision of services. The depreciation expenses in connection with equipments for advertising and broadcasting are included in cost of revenues. |
Advertising Expenses | ' |
Advertising expenses |
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Advertising costs are expensed as incurred. The Company had $69,236 and $107,516 advertising costs for the year ended December 31, 2013 and 2012, respectively. |
Shipping and Handling Costs | ' |
Shipping and handling cots |
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All shipping and handling costs are included in cost of sales. The Company had no freight out expense during the period presented. |
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Income Taxes | ' |
Income taxes |
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Income taxes are determined in accordance with Accounting Standards Codification Topic 740, “Income Taxes” (“ASC 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
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ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. Income tax periods 2011, 2012 and 2013 are open for tax examination by taxing authority. |
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The Company conducts major businesses in the PRC and Hong Kong and is subject to tax liabilities in these two jurisdictions. As a result of its business activities, the Company files tax returns that are subject to examination by the foreign tax authorities. As of December 31, 2013, the Company had no outstanding tax due with its tax authority in the PRC, and provisions for profit taxes due with its tax authority in Hong Kong were accrued. |
Comprehensive Income (Loss) | ' |
Comprehensive income (loss) |
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FASB ASC 220, “Reporting Comprehensive Income”, establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during the year from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying consolidated balance sheets consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit. |
Non-Controlling Interests | ' |
Non-Controlling Interests |
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Non-Controlling interest represents the 2% equity interest of CAM Hebei held by Hebei Agricultural Means of Production Co. Ltd (“Hebei AMP”), through its wholly-owned subsidiary, as of December 31, 2013. |
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The Parties shall share the profits, losses and risks of the Company in proportion to and, in the event of losses, to the extent of their respective contributions and contractual commitments to the registered capital of the Company. |
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The rights of Non-Controlling Interest Shareholder: (a) Intellectual property contributed by non-controlling interest shareholder, if any, remains the sole and exclusive property of non-controlling interest shareholder; (b) The Board of Directors shall be composed of five Directors, of whom two shall be appointed by non-controlling interest shareholder. |
Foreign Currency Translation | ' |
Foreign currency translation |
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Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of comprehensive income. |
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The reporting currency of the Company is the United States Dollars ("US$"). The Company's subsidiaries in the PRC maintain its books and records in its local currency, Renminbi Yuan ("RMB"), which is functional currency as being the primary currency of the economic environment in which the entity operates. |
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In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income. |
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Translation of amounts from RMB into US$1 has been made at the following exchange rates for the respective periods: |
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| | | 2013 | | | | 2012 | |
Balance sheet items, except for the registered and paid-up capital as of December 31, 2013 and 2012 | | | | | | | | |
USD 1:RMB 6.1104 | USD 1:RMB 6.2313 |
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Amounts included in the statement of operations, statement of changes in stockholders’ equity and statement of cash flows for the years ended December 31, 2013 and 2012 | USD 1:RMB 6.1905 | USD 1:RMB 6.3105 |
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Basic and Diluted Earnings Per Share | ' |
Basic and Diluted Earnings per Share |
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The Company calculates earnings per share in accordance with FASB ASC 260 “Earnings per Share”. Basic earnings per share are calculated by dividing the Company’s net income or loss applicable to common shareholders by the weighted average number of common shares during the period. If applicable, diluted earnings per share are computed by dividing the net income for the period by the weighted average number of common and common equivalent shares outstanding, using the treasury stock method for warrants and options and the if-converted method for convertible instruments when the conversion is not dependent on a substantive non-market based contingency during the period. Accordingly, this presentation has been adopted for the periods presented. |
Related Parties | ' |
Related parties |
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Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. A material related party transaction has been identified in Note 6 in the financial statements. |
Subsequent Events | ' |
Subsequent Events |
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The Company evaluated for subsequent events through the issuance date of the Company’s financial statements. |
Recently Issued Accounting Standards | ' |
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Recently Issued Accounting Standards |
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The Company has reviewed all recently issued, but not yet effective, accounting pronouncements up to ASU 2014-05, and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its consolidated financial condition or the consolidated results of its operations. |