Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Apr. 14, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Wonhe High-Tech International, Inc. | ||
Entity Central Index Key | 1,434,388 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 5,218,860 | ||
Entity Common Stock, Shares Outstanding | 58,510,130 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 52,074,752 | $ 34,447,100 |
Accounts receivable | 3,645,907 | 3,267,810 |
Total current assets | 55,720,659 | 37,714,910 |
Fixed assets | 2,161,102 | 486,516 |
Less: accumulated depreciation | (416,521) | (289,266) |
Fixed assets, net | 1,744,581 | 197,250 |
Other assets: | ||
Intangible assets, net | 16,749 | $ 8,667 |
Investment in project | 5,852,430 | |
Other assets | 17,121 | $ 14,223 |
Prepaid income taxes | 1,164,478 | 2,341,300 |
Total other assets | 7,050,778 | 2,364,190 |
TOTAL ASSETS | 64,516,018 | 40,276,350 |
Current liabilities: | ||
Payroll payable | 47,891 | 22,687 |
Taxes payable | 176,997 | 172,248 |
Loan from stockholder | 335,655 | 241,561 |
Accrued expenses and other payables | 192,550 | 154,261 |
Total current liabilities | $ 753,093 | $ 590,757 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Preferred stock: $0.001 par value; 10,000,000 shares authorized; none issued and outstanding | ||
Common stock: $0.001 par value; 90,000,000 shares authorized; 58,510,130 and 38,380,130 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively | $ 58,510 | $ 38,380 |
Additional paid-in capital | 37,592,346 | 17,011,131 |
Retained earnings | 7,610,229 | 18,332,743 |
Statutory reserve fund | 695,564 | 2,033,776 |
Other comprehensive (loss) income | (1,989,695) | 787,787 |
Stockholders' equity before noncontrolling interests | 44,966,954 | 38,203,817 |
Noncontrolling interests | 18,795,971 | 1,481,776 |
Total stockholders' equity | 63,762,925 | 39,685,593 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 64,516,018 | $ 40,276,350 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 58,510,130 | 38,380,130 |
Common stock, shares outstanding | 58,510,130 | 38,380,130 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Other Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||
Sales | $ 31,424,963 | $ 6,195,313 |
Cost of sales | (18,135,975) | (3,257,289) |
Gross profit | 13,288,988 | 2,938,024 |
Operating expenses: | ||
Research and development expenses | 142,527 | 92,956 |
Selling and marketing expenses | 642,207 | 177,036 |
General and administrative expenses | 8,394,140 | 489,714 |
Total operating expenses | 9,178,874 | 759,706 |
Income from operations | 4,110,114 | 2,178,318 |
Other income (expense): | ||
Interest income | 172,305 | $ 111,353 |
Other non-operating income | 1,924 | |
Other non-operating (expenses) | (69,302) | |
Total non-operating income | 104,927 | $ 111,353 |
Income before provision for income taxes | 4,215,041 | 2,289,671 |
Provision for income taxes | 1,489,251 | 295,973 |
Net income | 2,725,790 | 1,993,698 |
Noncontrolling interests | 4,842,574 | (96,756) |
Net (loss) income attributable to common stockholders | $ (2,116,783) | $ 1,896,942 |
Earnings (loss) per common share, basic and diluted | $ (0.04) | $ 0.05 |
Weighted average shares outstanding, basic and diluted | 52,333,253 | 38,380,130 |
Comprehensive income: | ||
Net income | $ 2,725,790 | $ 1,993,698 |
Foreign currency translation adjustment | (3,318,614) | (258,031) |
Comprehensive (loss) income | (592,824) | 1,735,667 |
Comprehensive (loss) income attributable to noncontrolling interests | 3,942,638 | (87,261) |
Comprehensive (loss) income attributable to common stockholders | $ (4,535,461) | $ 1,648,406 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Statutory Reserve Fund | Noncontrolling Interest | Other Comprehensive Income |
Balance at Dec. 31, 2013 | $ 37,949,926 | $ 38,380 | $ 17,011,131 | $ 16,634,433 | $ 1,835,144 | $ 1,394,515 | $ 1,036,323 |
Net income | $ 1,993,698 | 1,896,942 | $ 96,756 | ||||
Appropriation of statutory reserves | $ (198,632) | $ 198,632 | |||||
Other comprehensive (loss) | $ (258,031) | $ (9,495) | $ (248,536) | ||||
Balance at Dec. 31, 2014 | 39,685,593 | $ 38,380 | $ 17,011,131 | $ 18,332,743 | $ 2,033,776 | $ 1,481,776 | $ 787,787 |
Sale of common stock in private placement | 15,196,298 | $ 20,130 | 15,176,168 | ||||
Acquisition of VIE noncontrolling interest | (1,540) | 373,210 | $ 957,945 | $ 106,262 | $ (1,481,776) | $ 42,819 | |
Subsidiary stock issued for compensation | $ 7,534,080 | 7,534,080 | |||||
Reclassification for issuance of subsidiary stock for compensation | (3,029,520) | $ (7,716,275) | $ (856,015) | $ 11,945,813 | $ (344,003) | ||
Increase and reclassification in equity attributable to the sale of subsidiary stock | $ 1,941,318 | $ 527,277 | (1,292,476) | $ (143,383) | 2,907,520 | $ (57,620) | |
Net income | $ 2,725,790 | (2,116,784) | $ 4,842,574 | ||||
Appropriation of statutory reserves | $ (554,924) | $ 554,924 | |||||
Other comprehensive (loss) | $ (3,318,614) | $ (899,936) | $ (2,418,678) | ||||
Balance at Dec. 31, 2015 | $ 63,762,925 | $ 58,510 | $ 37,592,346 | $ 7,610,229 | $ 1,695,564 | $ 18,795,971 | $ (1,989,695) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Cash flows from operating activities: | ||
Net income | $ 2,725,790 | $ 1,993,698 |
Adjustment to reconcile net (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 207,546 | $ 90,150 |
Loss on disposal of fixed assets | 61,287 | |
Stock compensation | 7,534,080 | |
Change in operating assets and liabilities: | ||
(Increase) in accounts receivable | $ (378,097) | $ (3,254,690) |
Decrease in inventory | 165,407 | |
Decrease in prepaid expenses | 65,616 | |
Decrease in prepaid income taxes | $ 1,176,822 | 293,824 |
(Decrease) in accounts payable | (14,717) | |
Increase in payroll payable | $ 25,204 | 1,059 |
Increase in taxes payable | 4,749 | 138,529 |
Increase (decrease) in accrued expenses and other payable | 38,289 | (20,222) |
Net cash provided by (used in) operating activities | 11,395,670 | $ (541,346) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (1,877,447) | |
Purchase of intangible assets | (21,647) | |
Investment in project | (6,091,847) | |
Proceeds from sale of subsidiary's stock | 1,290 | |
Acquisition of VIE | (1,540) | |
Net cash (used) in investing activities | (7,991,191) | |
Cash flows from financing activities: | ||
Net proceeds from sale of subsidiary's stock | 1,941,318 | |
Proceeds from stockholder loan | 47,703 | $ 98,000 |
Proceeds from sale of common stock | 15,196,298 | |
Net cash provided by financial activities | 17,185,319 | $ 98,000 |
Effect of exchange rate changes on cash | (2,962,146) | (255,799) |
Net change in cash | 17,627,652 | (699,145) |
Cash, beginning | 34,447,100 | 35,146,245 |
Cash, ending | 52,074,752 | $ 34,447,100 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | $ 388,412 | |
Cash paid for interest | ||
Noncash financing activities: | ||
Payment of accrued expenses by stockholder | $ 108,003 | $ 98,000 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Business [Abstract] | |
ORGANIZATION AND BUSINESS | 1. ORGANIZATION AND BUSINESS Wonhe High-Tech International, Inc. (the “Company” or “Wonhe High-Tech”) was incorporated in the State of Nevada on August 13, 2007. The Company changed its name from Baby Fox International, Inc. to Wonhe High-Tech International, Inc. on April 20, 2012. On June 27, 2012, the Company acquired all of the outstanding capital stock of World Win International Holding Ltd. or “World Win” in exchange for 19,128,130 shares of the Company’s common stock (the “Share Exchange”). As a result of the acquisition in June 2012, the Company’s consolidated subsidiaries included World Win, the Company’s wholly-owned subsidiary, which is incorporated under the laws of the British Virgin Island (“BVI”), Kuayu International Holdings Group Limited (Hong Kong), or “Kuayu,” a wholly-owned subsidiary of World Win which is incorporated under the laws of Hong Kong, and Shengshihe Management Consulting (Shenzhen) Co., Ltd., or “Shengshihe Consulting,” a wholly-owned subsidiary of Kuayu which is incorporated under the laws of the People’s Republic of China (“PRC”). The Company also consolidated the financial position and results of operations of Shenzhen Wonhe Technology Co., Ltd., or “Shenzhen Wonhe,” a company incorporated under the laws of the PRC which was effectively and substantially controlled by Shengshihe Consulting through a series of captive agreements. Shenzhen Wonhe was considered a variable interest entity (“VIE”) of Shengshihe Consulting. On May 30, 2012, Shenzhen Wonhe entered into (i) an Exclusive Technical Service and Business Consulting Agreement, (ii) a Proxy Agreement, (iii) Share Pledge Agreement, and (iv) Call Option Agreement with Shengshihe Consulting. The foregoing agreements are collectively referred to as the “VIE Agreements.” Exclusive Technical Service and Business Consulting Agreement: Proxy Agreement: Call Option Agreement: Share Pledge Agreement: Until September 15, 2015, Shengshihe Management controlled Shenzhen Wonhe through the above contractual agreements, which made Shenzhen Wonhe a variable interest entity, the effect of which was to cause the balance sheet and operating results of Shenzhen Wonhe to be consolidated with those of Shengshihe Management in the Company’s financial statements. On September 15, 2015, Shengshihe Consulting, exercised its option to purchase all of the registered equity of Shenzhen Wonhe. The purchase price paid for the equity was RMB10,000 (approximately $1,569). The equity was purchased from Qing Tong, Nanfang Tong, Youliang Wang and Jingwu Li, who are the members of Wonhe High-Tech's Board of Directors. As a result of the acquisition by Shengshihe Consulting of the registered ownership of Shenzhen Wonhe, the balance sheet and operating results of Shenzhen Wonhe will hereafter continue to be consolidated with those of Shengshihe Consulting as its 100% owned subsidiary. In July 2015, World Win, the Company's wholly-owned subsidiary, organized Wonhe Multimedia Commerce Ltd. ("Australian Wonhe") under Australian law. 60% of the capital stock of Australian Wonhe was issued to World Win, 25% was issued to Wonhe International (Hong Kong), which is wholly owned and controlled by Qing Tong, who is Chairman of the Board of Wonhe High-Tech and the remaining 15% was issued to three non-affiliated financial consultants. On August 5, 2015, World Win sold all of the outstanding capital stock of Kuayu to Australian Wonhe. In exchange for Kuayu, Australian Wonhe paid World Win $10,000 Hong Kong Dollars (US $1,290). Kuayu is the sole owner of Shengshihe Consulting, which in turn had the VIE agreements with Shenzhen Wonhe at that time, the Company's VIE and operating company. The sale of Kuayu, therefore, reduced the interest of the Company in its operating company by 40%. On December 21, 2015, the Company’s 60% owned subsidiary, Australia Wonhe was listed on the ASX and sold 16,951,802 of its ordinary shares for net proceeds of $1,941,318. The 33,750,000 shares of Australia Wonhe issued to the chairman of the board’s wholly owned company, Wonhe International (Hong Kong), and the 20,250,000 shares issued to the financial consultants was recognized as compensation during the quarter ended September 30, 2015. The value of the compensation was determined using the public offering price of $0.13952 US per share for the shares to be sold in Australia. The total stock compensation recognized was $7,534,080. The Company’s current organization structure is as follows: Shenzhen Wonhe is a Chinese entity established on November 16, 2010 with registered capital of $7,495,000. It specializes in the research and development, outsourced-manufacturing and sale of hi-tech products based on x86 (instruction set architecture based on the Intel 8086 CPU) and ARM (32-bit reduced instruction set architecture). Current products still under research and development include a Smart Media Box (SMB), Home Smart Server (HSS), Mini PC (MPC), All in One PC (AIO-PC), Business PAD (B-PAD), and Portable PAD (P-PAD). The Company started to sell its new product HMC 720 in the last quarter of 2014. In addition, the Company started to sell another new product, a Wi-Fi-Router with model number YLT-100S, during the first quarter of 2015 and model number YLT-300S during the second quarter of 2015. YLT-100S is used by individuals, and YLT-300S is used in shopping malls. Shenzhen Wonhe is located in Shenzhen, Guangdong Province in the PRC. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting. The consolidated financial statements as of and for the years ended December 31, 2015 and 2014 include Wonhe High-Tech, World Win, Wonhe Multimedia, Kuayu, Shengshihe Consulting and Shenzhen Wonhe. All significant intercompany accounts and transactions have been eliminated in consolidation. All consolidated financial statements and notes to the consolidated financial statements are presented in United States dollars (“US Dollar” or “US$” or “$”). Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Foreign Currency Translation Almost all of the Company’s assets are located in the PRC. The functional currency for the majority of the operations is the Renminbi (“RMB”). For Kuayu, the functional currency for the majority of its operations is the Hong Kong Dollar (“HKD”). For Australian Wonhe, the functional currency is the Australian Dollar (“AUD”). The Company uses the US Dollar for financial reporting purposes. The consolidated financial statements of the Company have been translated into US dollars in accordance with the Financial Accounting Standards Board “FASB” Accounting Standards Codification “ASC” section 830, “Foreign Currency Matters.” All asset and liability accounts have been translated using the exchange rate in effect at the balance sheet date. Equity accounts have been translated at their historical exchange rates when the capital transactions occurred. The consolidated statements of operations and other comprehensive income (loss) amounts have been translated using the average exchange rate for the periods presented. Adjustments resulting from the translation of the Company’s consolidated financial statements are recorded as other comprehensive income (loss). The exchange rates used to translate amounts in RMB into US dollars for the purposes of preparing the consolidated financial statements are as follows: December 31, 2015 December 31, 2014 Balance sheet items, except for stockholders’ equity, as of year end 0.1540 0.1625 Amounts included in the statements of operations and the comprehensive income (loss), changes in stockholders’ equity and cash flows 0.1603 0.1627 The exchange rates used to translate amounts in AUD into US dollars for the purposes of preparing the consolidated financial statements are as follows: December 31, 2015 December 31, 2014 Balance sheet items, except for stockholders’ equity, as of year end 0.7288 0.8181 Amounts included in the statements of operations and the comprehensive income (loss), changes in stockholders’ equity and cash flows 0.7188 0.9024 For the years ended December 31, 2015 and 2014, foreign currency translation adjustments of $(3,318,614) and $(258,031), respectively, have been reported as other comprehensive income (loss). Other comprehensive income (loss) of the Company consists solely of foreign currency translation adjustments. Pursuant to FASB ASC 740-30-25-17, “Exceptions to Comprehensive Recognition of Deferred Income Taxes,” Although government regulations now allow convertibility of the RMB for current account transactions, significant restrictions still remain. Hence, such translations should not be construed as representations that the RMB could be converted into US and Australian dollars at that rate or any other rate. The value of the RMB against the US and Australian dollar may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of the RMB may materially affect the Company’s financial condition in terms of US dollar reporting. In August 2015, the PRC devalued its currency by approximately 3.5%. Revenue and Cost Recognition The Company receives revenues from the sale of electronic products. The Company’s revenue recognition policies are in compliance with SEC Staff Accounting Bulletin (“SAB”) 104 (codified in FASB ASC Topic 605). Sales revenue is recognized when the products are delivered and when customer acceptance occurs, the price is fixed or determinable, no other significant obligations of the Company exist and collectability is reasonably assured. Finished goods are delivered from outsourced manufacturers to the Company. Revenue is recognized when the title to the products has been passed to the customer, which is the date the products are picked up by the customer at the Company’s location or delivered to the designated locations by Company employees and accepted by the customer and the previously discussed requirements are met. The customer’s acceptance occurs upon inspection at the time of pickup or delivery by signing an acceptance form. The Company does not provide its customers with the right of return. A 36-month warranty is offered to customers for exchange or repair of defective products, the cost of which is substantially covered by the outsourced manufacturers’ warranty policies as specified in the contract between the Company and its outsourced manufacturers. As a result, the Company does not recognize a warranty liability. The Company follows the guidance set forth by FASB ASC 605-45-45 to assess whether the Company acts as the principal or agent in the transaction. The determination involves judgment and is based on an evaluation of whether the Company has the substantial risks and rewards of ownership under the terms of the arrangement. Based on the assessment, the Company determined it acts as a principal in the transaction and reports revenues on the gross basis. FASB ASC 605-45-45 sets forth eight criteria that support reporting recognition of gross revenue (i.e. principal sales) and three that support reporting net revenue (i.e. agent sales). As applied to the relationship between the Company, its manufacturers, and its customers, the following are the criteria that support reporting gross revenue: ● Shenzhen Wonhe is the primary obligor in each sale, as it is responsible for fulfillment of customer orders, including the acceptability of the products purchased by the customer. ● Shenzhen Wonhe has general inventory risk, as it takes title to a product before that product is ordered by or delivered to a customer. ● Shenzhen Wonhe establishes its own pricing for its products. ● Shenzhen Wonhe has discretion in supplier selection. ● Shenzhen Wonhe designed the Home Media Center Model 720 (the “HMC720”) and the two Wifi Routers and is responsible for all of its specifications. ● Shenzhen Wonhe has physical inventory loss risk until the product is delivered to the customer. ● Shenzhen Wonhe has full credit risk for amounts billed to its customers. The only criterion supporting recognition of gross revenue that is not satisfied by the relationship between the Company and its manufacturers is: the entity changes the product or performs part of the service. Moreover, none of the three criteria supporting recognition of net revenue is present in the Company’s sales transactions. For this reason, the Company records gross revenue with respect to sales by Shenzhen Wonhe. During the last quarter of 2014, the Company started to sell the HMC720, which was developed by the Company and outsourced to others to produce. During the first quarter of 2015, the Company commenced selling the Wifi-Router YLT-100S. During the second quarter of 2015, the Company commenced selling the YLT-300S. These Routers were developed by the Company and outsourced to others to produce. Fair Value of Financial Instruments FASB ASC 820 specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs). In accordance with ASC 820, the following summarizes the fair value hierarchy: Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements. ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of December 31, 2015 and 2014, none of the Company’s assets and liabilities were required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, accounts receivable and various payables, approximate their fair values due to the short term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented. Advertising Costs Advertising costs are paid to an advertising agency for market analysis and strategic planning and are charged to operations when incurred. Advertising costs were $341,840 and $130,160 for the years ended December 31, 2015 and 2014, respectively. Research and Development Costs The Company develops software to be marketed as part of its products, and that is not for internal use. The software is essential to the functionality of the Company’s tangible products. Therefore, the Company accounts for research and development costs incurred in development of its software in accordance with FASB ASC 985-20. Research and development costs are charged to operations when incurred. Development costs of computer software to be sold, leased, or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. In most instances, the Company’s products are released soon after technological feasibility has been established. Therefore, costs incurred subsequent to achievement of technological feasibility are usually not significant, and generally most software development costs have been expensed as incurred. Research and development costs were $142,527 and $92,956 for the years ended December 31, 2015 and 2014, respectively. Cash and Cash Equivalents The Company considers all demand and time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents. Accounts Receivable Accounts receivable are stated at cost, net of an allowance for doubtful accounts. Receivables outstanding longer than the payment terms are considered past due. The Company provides an allowance for doubtful accounts for estimated losses resulting from the failure of customers to make required payments, when due. The Company reviews the accounts receivable on a periodic basis and makes allowances where there is doubt as to the collectability of the outstanding balance. In evaluating the collectability of an individual receivable balance, the Company considers many factors, including the age of the balance, the customer’s payment history, its current credit-worthiness and current economic trends. As of December 31, 2015 and 2014, the Company considered all accounts receivable collectable and an allowance for doubtful accounts was not necessary. For the years ended December 31, 2015 and 2014, the Company did not write off any accounts receivable as bad debts. Fixed Assets and Depreciation Fixed assets are recorded at cost, less accumulated depreciation. Cost includes the price paid to acquire the asset, and any expenditure that substantially increases the asset’s value or extends the useful life of an existing asset. Leasehold improvements are amortized over the lesser of the remaining term of the lease or the estimated useful lives of the improvements. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the periods benefited. Maintenance and repairs are generally expensed as incurred. The estimated useful lives for fixed asset categories are as follows: Office equipment 5 years Motor vehicles 5 years Leasehold improvements Shorter of the remaining term of the lease or life of the improvement Impairment of Long-lived Assets The Company applies FASB ASC 360, “Property, Plant and Equipment,” Statutory Reserve Fund Pursuant to corporate law of the PRC, Shengshihe Consulting and Shenzhen Wonhe are required to transfer 10% of their net income, as determined under PRC accounting rules and regulations, to a statutory reserve fund until such reserve balance reaches 50% of their registered capital. The statutory reserve fund is non-distributable, other than during liquidation, and can be used to fund prior years’ losses, if any, and may be utilized for business expansion or used to increase registered capital, provided that the remaining reserve balance after such use is not less than 25% of the registered capital. As of December 31, 2015, $1,695,564 has been transferred from retained earnings to the statutory reserve fund. Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes” ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with these tax positions. As of December 31, 2015 and 2014, the Company did not have any liabilities for unrecognized tax benefits. The income tax laws of various jurisdictions in which the Company and its subsidiaries operate are summarized as follows: United States The Company is subject to United States tax at graduated rates from 15% to 35%. No provision for income taxes in the United States has been made as the Company had no U.S. taxable income for the years months ended December 31, 2015 and 2014. BVI World Win is incorporated in the BVI and is governed by the income tax laws of the BVI. According to current BVI income tax law, the applicable income tax rate for the Company is 0%. Australia Australian Wonhe is incorporated in Australia. Pursuant to the income tax laws of Australia, the Company is not subject to tax on non-Australia source income. Hong Kong Kuayu International is incorporated in Hong Kong. Pursuant to the income tax laws of Hong Kong, the Company is not subject to tax on non Hong Kong source income. PRC Shenzhen Wonhe and Shengshihe Consulting are subject to an Enterprise Income Tax at 25% and each file their own tax returns. Consolidated tax returns are not permitted in China. On July 23, 2012, the National Tax Bureau, Shenzhen Nanshan Branch declared that Shenzhen Wonhe is qualified for the preferential tax treatment afforded by the PRC to enterprises engaged in the development of software or integrated circuits. As a result, starting from its first profitable year, Shenzhen Wonhe had a two-year exemption from the Enterprise Income Tax and has a 50% exemption for the next three years commencing January 1, 2014. The tax regulations required that the enterprise pay income tax until its eligibility for the exemption is determined - i.e. until the local tax bureau determines that the enterprise has recorded its first profitable year. Payments were made of approximately $2,600,000 (RMB 16,107,000) based upon 2012 income while the local tax bureau reviewed the Company’s financial results. The National Tax Bureau determined that the Company had realized a profit in 2012. Since the Company was declared exempt from tax with respect to 2012, the payments that were made will be applied to future income taxes due. The payments have been reflected as prepaid income taxes on the balance sheet as of December 31, 2015 and 2014. For the year ended December 31, 2014, the Company offset the income tax provision of $277,274. For the year ended December 31, 2015, the Company offset the income tax provision of $1,485,898, paid income tax of $ 388,412, leaving a balance of prepaid income taxes of $ 1,164,478. Noncontrolling Interests The noncontrolling interest in Wonhe Multimedia not attributable, directly or indirectly to the Company, is measured at its carrying value in the stockholders’ equity section of the consolidated balance sheets. Net Income (Loss) Per Share The Company computes net income (loss) per common share in accordance with FASB ASC 260, “Earnings Per Share” |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2015 | |
Recently Issued Accounting Standards [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | 3. RECENTLY ISSUED ACCOUNTING STANDARDS In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. This accounting standard update is not expected to have a material impact on the Company’s financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The updated guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The update to the standard is effective for the Company beginning June 1, 2018. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements. In August 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendment is effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2017. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In March 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU 2015-03 – Interest – Imputation of Interest (Subtopic 835-30). This ASU addressed the simplification of debt issuance costs presentation by presenting debt issuance costs in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The amendment is effective for fiscal years beginning after December 15, 2015 and interim periods within that year. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements. In January 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU 2015-01 – Income Statement – Extraordinary and Unusual Items (Subtopic 225-20). This ASU addressed the simplification of income statement presentation by eliminating the concept of extraordinary items. The objective of the Simplification Initiative is to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements. In August 2014, the FASB issued authoritative guidance that requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and requires additional disclosures if certain criteria are met. This guidance is effective for fiscal periods ending after December 15, 2016, with early adoption permitted. This accounting standard update is not expected to have any impact on the Company’s financial statements. In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. ASU 2014-12 requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. It is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition”. The core principle of this updated guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new rule also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The FASB recently deferred the effective date to periods beginning after December 15, 2017. Companies are permitted to adopt this new rule following either a full or modified retrospective approach. Early adoption is not permitted. The Company has not yet determined the potential impact of this updated authoritative guidance on its consolidated financial statements. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2015 | |
Fixed Assets [Abstract] | |
FIXED ASSETS | 4. FIXED ASSETS Fixed assets at December 31, 2015 and 2014 are summarized as follows: December 31, 2015 December 31, 2014 Office equipment $ 211,897 $ 157,751 Motor vehicles 661,703 219,419 Production equipment 1,287,502 - Leasehold improvements - 109,346 2,161,102 486,516 Less: accumulated depreciation (416,521 ) (289,266 ) Fixed assets, net $ 1,744,581 $ 197,250 Depreciation expense charged to operations for the years ended December 31, 2015 and 2014 was $194,789 and $81,473, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | 5. INTANGIBLE ASSETS Intangible assets at December 31, 2015 and 2014 are summarized as follows: December 31, 2015 December 31, 2014 Software $ 45,432 $ 26,000 Less: accumulated amortization (28,683 ) (17,333 ) Intangible assets, net $ 16,749 $ 8,667 Amortization expense charged to operations for the years ended December 31, 2015 and 2014 was $12,757 and $8,677 respectively. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS | 6. COMMITMENTS Leases On September 30, 2013, the Company entered into a lease agreement with an unrelated party at a monthly rental of $9,514 per month. The lease expired on August 31, 2014. On September 1, 2014, the Company renewed the lease agreement at the same rent for twelve months. The lease was terminated in May 2015 without incurring any penalties. In May 2015, the Company entered into a new lease agreement with an unrelated party at a monthly rent of $11,897 for one year, expiring in May 2016. Rent expenses for the years ended December 31, 2015 and 2014 was $135,657 and $115,879, respectively. Employment Agreements Shenzhen Wonhe, our operating subsidiary, has employment agreements with our officers Nanfang Tong and Qing Tong: Nanfang Tong’s employment agreement, as the chief executive officer, provides for a monthly salary of RMB 8,000 (approximately US $1,282) which terminates on October 31, 2016. Mr. Tong is eligible for a bonus which is determined by, and at the discretion of, the Board of Directors of the Company, based on a review of Mr. Tong’s performance. Qing Tong’s employment agreement, as an officer, provides for a monthly salary of RMB 10,000 (approximately US $1603) and terminates on October 31, 2016. Mr. Tong is eligible for a bonus which is determined by, and at the discretion of, the Board of Directors of the Company, based on a review of Mr. Tong’s performance. Other than the salary and necessary social benefits required by the government, which are defined in the employment agreements, we currently do not provide other benefits to the officers at this time. Other than government-mandated severance payments, our executive officers are not entitled to severance payments upon the termination of their employment agreements or following a change in control. PRC employment law requires an employee be paid severance pay based on the number of years worked with the employer at the rate of one month’s wage for each full year worked. Any period of more than six months but less than one year shall be counted as one year. The severance pay payable to an employee for any period of less than six months shall be one-half of his monthly wages. The monthly salary mentioned above is defined as the average salary of 12 months before revocation or termination of the employment contract. Strategic Cooperation Agreement In April 2015, the Company entered into a distribution agreement with Shenzhen Yunlutong Technology Co., Ltd (“YLT”), which is owned by one of the Company’s directors, who owns 4.87% of the Company’s common stock. The agreement expires in 3 years. Under the agreement, 1) YLT shall purchase 662,000 commercial routers from Shenzhen WONHE, with 200,000 purchased during the first year, 220,000 during the second year and 242,000 during the third year, for a total purchase price of RMB 926,800,000 (US $148,566,040). Any change in share ownership of YLT shall be approved by Shenzhen Wonhe. In addition, Shenzhen Wonhe obtained an exclusive right to acquire YLT if its gross annual revenues reach RMB 150,000,000 (US $24,480,000) and net annual profit reaches RMB 12,500,000 (US $2,040,000) during the term of the agreement. YLT agreed not to sell any equity or issue any debt during the 3 years. The price of the acquisition shall be established by an independent appraiser. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 7. RELATED PARTY TRANSACTIONS From time to time, a stockholder/officer loans money to the Company, primarily to meet the non-RMB cash requirements of the parent and its subsidiaries. The loans are non-interest bearing, and the balance due was $335,655 and $241,561 at December 31, 2015 and 2014, respectively. The loans principally represent professional and legal fees incurred in the U.S. paid by the stockholder and operating expenses for Wonhe High-Tech and Shengshihe Consulting since their inception. The balance is reflected as loan from stockholder. Nanfang Tong, the chief executive officer and Qing Tong, the director, are brothers. |
Sale of Common Stock
Sale of Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Sale of Common Stock [Abstract] | |
SALE OF COMMON STOCK | 8 . SALE OF COMMON STOCK In April 2015, Wonhe High-Tech International, Inc. sold 20,130,000 shares of common stock to 21 unrelated individuals, 3 major shareholders of Shenzhen Wonhe at the time, and 3 unrelated companies in a private offering in the PRC. The purchase price for the shares was approximately RMB 4.72 (US $0.77) per share, or a total of RMB 93,000,600 (US $15,196,298). The shares were sold to accredited investors for their own accounts. The offering was exempt from registration under the Securities Act of 1933 pursuant to Section 4(2) and Section 4(5) of the Securities Act. The offering was also sold in compliance with the exemption from registration provided by Regulation S, as all of the purchasers are residents of the People’s Republic of China. Of the 20,130,000 shares sold, 4,600,000 (22.7%) were sold to two directors and one officer /director of the Company. On the date of sale, the Company’s common stock was quoted on the OTCQB at $3.07 per share. Since over 75% of the shares in this offering were sold to unrelated parties at $0.77 per share, the Company believes that this price was more representative of the price per share than $3.07. In addition, no shares of the Company’s common stock were traded on the OTCQB from January 1, 2015 to April 22, 2015. As a result, management believes that the $0.77 per share was a fair price and recorded no compensation related to the share sold to the officer director of the Company. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
INCOME TAXES | 9. INCOME TAXES The Company is required to file income tax returns in both the United States and the PRC. Its operations in the United States have been insignificant and income taxes have not been accrued. In the PRC, the Company files tax returns for Shenzhen Wonhe and Shengshihe Consulting. The provision for (benefit from) income taxes consists of the following for the years ended December 31, 2015 and 2014: Year Ended December 31, 2015 2014 Current $ 1,489,251 $ 295,973 Deferred - - Total $ 1,489,251 $ 295,973 The following is a reconciliation of the statutory rate with the effective income tax rate for the year ended December 31, 2015 and 2014. Year Ended December 31, Year Ended December 31, 2015 2014 Tax at PRC statutory rate 25.0 % 25.0 % Subsidiary tax holiday in PRC (12.5 ) (12.5 ) Effect of unusable parent tax loss 22.6 - Other 0.2 0.4 Effective tax rate 35.3 % 12.9 % The following presents the aggregate dollar and per share effects of the Company’s subsidiaries/VIE tax holidays: Years Ended December 31, 2015 2014 Aggregate dollar effect of tax holiday $ 1,448,924 $ 276,445 Per share effect, basic and diluted 0.03 0.01 The stock compensation of approximately $7,534,000 would be deductible only to the U.S. Parent Company and accordingly there is no deferred tax benefit to be recognized. The Company did not recognize any tax benefit related to Parent’s loss of approximately $(7,644,000) since it has no income. The Company’s PRC tax filings for the tax years ended December 31, 2014 and 2013 were examined by the tax authorities. The examinations were completed and resulted in no adjustments. The Company did not file its U.S. federal income tax returns, including, without limitation, information returns on Internal Revenue Service (“IRS”) Form 5471, “Information Return of U.S. Persons with Respect to Certain Foreign Corporations” for the fiscal year ended June 30, 2012, the six month period ended December 31, 2012, a short year income tax return required to be filed as a result of the change in the fiscal year, and the years ended December 31, 2014 and 2013. Because the Company did not generate any income in the United States or otherwise have any U.S. taxable income, the Company does not believe that it has any U.S. federal income tax liabilities with respect to any transactions that the Company or any of its subsidiaries may have engaged in through December 31, 2015. However, there can be no assurance that the IRS will agree with this position, and therefore the Company ultimately could be liable for U.S. federal income taxes, interest and penalties. The tax year ended June 30, 2012, six-month tax period ended December 31, 2012, and the tax years ended December 31, 2014 and 2013 remain open to examination by the IRS. All of the Company’s operations are conducted in the PRC. At December 31, 2015, the Company’s unremitted foreign earnings of its PRC subsidiaries totaled approximately $17 million and the Company held approximately $35.3 million of cash and cash equivalents in the PRC. These unremitted earnings are planned to be reinvested indefinitely into the operations of the Company in the PRC. While repatriation of cash held in the PRC may be restricted by local PRC laws, most of the Company’s foreign cash balances could be repatriated to the United States but, under current U.S. income tax laws, would be subject to U.S. federal income taxes less applicable foreign tax credits. Determination of the amount of unrecognized deferred U.S. income tax liability on the unremitted earnings is not practicable because of the complexities associated with this hypothetical calculation, and as the Company does not plan to repatriate any cash in the PRC to the United States during the foreseeable future, no deferred tax liability has been accrued. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
CONTINGENCIES | 10. CONTINGENCIES As disclosed in Note 9, the Company was delinquent in filing certain tax returns with the U.S. Internal Revenue Service. The Company is unable to determine the amount of penalties, if any, that may be assessed at this time. Management is of the opinion that penalties, if any, that may be assessed would not be material to the consolidated financial statements. The Company did not file the information reports for the years ended December 31, 2014, 2013 and 2012, concerning its interest in foreign bank accounts on form TDF 90-22.1, “Report of Foreign Bank and Financial Accounts” (“FBAR”). Not complying with the FBAR reporting and recordkeeping requirements will subject the Company to civil penalties up to $10,000 for each of its foreign bank accounts. The Company has not determined the amount of any penalties that may be assessed at this time and believes that penalties, if any, that may be assessed would not be material to the consolidated financial statements. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Concentration of Credit Risk [Abstract] | |
CONCENTRATION OF CREDIT RISK | 11. CONCENTRATION OF CREDIT RISK Cash and cash equivalents Substantially all of the Company’s bank accounts are in banks located in the People’s Republic of China and are not covered by protection similar to that provided by the FDIC on funds held in United States banks. The Company’s bank account in Australia is protected by the Australian government up to AUD 250,000. Major customers Three customer accounted for approximately 36% of total sales for the year ended December 31, 2015. Two customer accounted for approximately 23% of total sales for the year ended December 31, 2014. Four customers accounted for approximately 94% of accounts receivable as of December 31, 2015, the largest being 34%. Seven customers accounted for approximately 91% of accounts receivable as of December, 2014, the largest being 11.67%. |
Contributions to Multi-Employer
Contributions to Multi-Employer Welfare Programs | 12 Months Ended |
Dec. 31, 2015 | |
Contributions to Multi-Employer Welfare Programs [Abstract] | |
CONTRIBUTIONS TO MULTI-EMPLOYER WELFARE PROGRAMS | 12. CONTRIBUTIONS TO MULTI-EMPLOYER WELFARE PROGRAMS Shenzhen Wonhe is required to make contributions to PRC multi-employer welfare programs by government regulations sometimes identified as the Mainland China Contribution Plan. Specifically, the following regulations require that the Company pay a percentage of employee salaries into the specified plans: Regulation Plan % of Salary Shenzhen Special Economic Zone Social Retirement Insurance Regulations Pension 13% Shenzhen Work-Related Injury Insurance Regulations Workers Comp. 0.4% Guangdong Unemployment Insurance Regulations Unemployment 2% Housing Provident Fund Management Regulations Housing 5% Shenzhen Social Medical Insurance Measures Medical 6.5% or 0.6%* Guangdong Employees Maternity Insurance Maternity 0.5% or 0.2%* * Depending on their position in the Company, employees receive either hospitalization, medical and maternity insurance or comprehensive medical and maternity insurance, which is a lower premium. Total contributions to employee welfare programs for the years ended December 31, 2015 and 2014 were as follow: Year Ended December 31, 2015 2014 Total contributions $ 29,981 $ 25,050 |
Investment in Project
Investment in Project | 12 Months Ended |
Dec. 31, 2015 | |
Investment in Project [Abstract] | |
INVESTMENT IN PROJECT | 13. INVESTMENT IN PROJECT Prior to the signing of the official investment contract as disclosed in Note 15, the Company invested RMB38,000,000 (USD $5.78 million) to develop a network station in one of the contracted “Wireless Network Coverage Project” locations, the TongZhou District of Beijing, as a pilot project before year end. As of December 31, 2015, total payments for the pilot project were included in “investment in project” in the consolidated balance sheet (See Note 15). |
Condensed Financial Information
Condensed Financial Information of The Parent Company | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of The Parent Company [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 14. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The condensed financial information of the Company’s US parent only balance sheets as of December 31, 2015, and the US parent company only statements of operations, and cash flows for the years ended December 31, 2015 and 2014 are as follows: Condensed Balance Sheets ASSETS December 31, 2015 December 31, 2014 Cash-restricted $ 14,332,241 $ - Other receivable from subsidiaries 9,912,000 9,912,000 Investment in subsidiaries 21,093,752 28,558,212 TOTAL ASSETS $ 45,337,994 $ 38,470,212 LIABILITIES AND STOCKHOLDERS’ EQUITY December 31, 2015 December 31, 2014 Current liabilities: Loan from stockholder $ 366,040 $ 228,886 Accrued liabilities 5,000 37,509 Total current liabilities 371,040 266,395 Stockholders’ equity: Preferred stock: $0.001 par value; 10,000,000 shares authorized; none issued and outstanding - - Common stock: $0.001 par value; 90,000,000 shares authorized; 58,510,130 and 38,380,130 shares issued and outstanding at December 31, 2015 and 2014, respectively 58,510 38,380 Additional paid-in capital 37,592,346 17,011,131 Retained earnings 7,316,098 21,154,306 Total stockholders’ equity 44,966,954 38,203,817 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 45,337,994 $ 38,470,212 Condensed Statements of Income Year Ended 2015 2014 Revenues: Share of earnings from investment in subsidiaries $ 5,521,942 $ 1,733,071 Operating expenses: Stock compensation 7,534,080 - General and administrative 104,645 (84,665 ) Net income $ (2,116,783 ) $ 1,648,406 Condensed Statements of Cash Flows Year Ended 2015 2014 Cash flows from operating activities: Net income $ (2,116,783 ) $ 1,648,406 Adjustments to reconcile net income to net cash provided by (used in) operating activities Share of earnings from investment in subsidiaries (5,521,942 ) (1,644,656 ) Stock compensation 7,534,080 - (Decrease) increase in accrued liabilities (32,509 ) (101,750 ) Net cash (used by) operating activities (137,154 ) (98,000 ) Cash flows from financing activities: Proceeds from sale of common stock 15,196,298 - Proceeds from stockholders 137,154 98,000 Net cash (used by) financing activities 15,333,452 98,000 Effect of exchange rate changes on cash: (864,057 ) - Year Ended 2015 2014 Net increase in cash 14,332,241 - Cash, beginning of year - - Cash, end of year $ 14,332,241 $ - Noncash financing activities: Payment of accrued liabilities by shareholder $ 108,003 $ 98,000 Basis of Presentation The Company records its investment in its subsidiaries under the equity method of accounting. Such investment is presented as “Investment in subsidiaries” in the condensed balance sheets and the U.S. parent’s share of the subsidiaries’ profits are presented as “Share of earnings from investment in subsidiaries” in the condensed statements of income. Certain information and footnote disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted. The parent only financial information has been derived from the Company’s consolidated financial statements and should be read in conjunction with the Company’s consolidated financial statements. Restricted Net Assets Under PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer certain of their net assets to the parent company in the form of dividend payments, loans or advances. The restricted net assets of the Company’s PRC subsidiaries amounted to $45,337,994 and $38,470,212 as of December 31, 2015 and 2014, respectively. In addition, the Company’s operations and revenues are conducted and generated in the PRC; all of the Company’s revenues being earned and currency received are denominated in RMB. RMB is subject to the foreign exchange control regulations in China, and, as a result, the Company may be unable to distribute any dividends outside of China due to PRC’s foreign exchange control regulations that restrict the Company’s ability to convert RMB into US Dollars. Schedule I of Article 5-04 of Regulation S-X requires the condensed financial information of the parent company to be filed when the restricted net assets of consolidated subsidiaries’ exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of this test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of its consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company in the form of loans, advances or cash dividends without the consent of a third party. The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company’s PRC subsidiaries exceed 25% of the consolidated net assets of the Company. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Event [Abstract] | |
SUBSEQUENT EVENT: | 15. SUBSEQUENT EVENT: On January 12, 2016 the Company's operating subsidiary, Shenzhen Wonhe Technology Co., Ltd. ("Shenzhen Wonhe"), entered into an agreement titled "Wireless Network Coverage Project in Beijing Area" with Guangdong Kesheng Enterprise Co., Ltd. ("Guangdong Kesheng"). The agreement contemplates that the two parties will work together to develop a wireless network in certain designated areas of Beijing. The commercial purpose of the network will be to serve as a vehicle for advertising and marketing, with the revenue to be shared between Shenzhen Wonhe and Guangdong Kesheng. Shenzhen Wonhe has committed in the agreement to provide 382,990,000 RMB (USD $58.25 million (USD$5,852,000 which was expended as of December 31, 2015, see Note 13) to the project, including 226,010,000 RMB (USD $34.37 million) in cash and 118,980,000 RMB (USD $18.09 million) in routers and other equipment. Shenzhen Wonhe will also contribute the network that it recently developed in the Tongzhou District of Beijing as a pilot project, at a cost of 38,000,000 RMB (USD $5.78 million). Shenzhen Wonhe's cash contribution will be paid over three years: 104,498,990 RMB in 2016, 84,636,558 RMB in 2017 and 36,871,412 RMB in 2018. Shenzhen Wonhe has also committed to develop the data systems that will be used by the network. Guangdong Kesheng has committed to supervise the engineering and construction, coordinate relationships with local government, and manage the network's operations. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Accounting and Presentation | Basis of Accounting and Presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting. The consolidated financial statements as of and for the years ended December 31, 2015 and 2014 include Wonhe High-Tech, World Win, Wonhe Multimedia, Kuayu, Shengshihe Consulting and Shenzhen Wonhe. All significant intercompany accounts and transactions have been eliminated in consolidation. All consolidated financial statements and notes to the consolidated financial statements are presented in United States dollars (“US Dollar” or “US$” or “$”). |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Foreign Currency Translations | Foreign Currency Translation Almost all of the Company’s assets are located in the PRC. The functional currency for the majority of the operations is the Renminbi (“RMB”). For Kuayu, the functional currency for the majority of its operations is the Hong Kong Dollar (“HKD”). For Australian Wonhe, the functional currency is the Australian Dollar (“AUD”). The Company uses the US Dollar for financial reporting purposes. The consolidated financial statements of the Company have been translated into US dollars in accordance with the Financial Accounting Standards Board “FASB” Accounting Standards Codification “ASC” section 830, “Foreign Currency Matters.” All asset and liability accounts have been translated using the exchange rate in effect at the balance sheet date. Equity accounts have been translated at their historical exchange rates when the capital transactions occurred. The consolidated statements of operations and other comprehensive income (loss) amounts have been translated using the average exchange rate for the periods presented. Adjustments resulting from the translation of the Company’s consolidated financial statements are recorded as other comprehensive income (loss). The exchange rates used to translate amounts in RMB into US dollars for the purposes of preparing the consolidated financial statements are as follows: December 31, 2015 December 31, 2014 Balance sheet items, except for stockholders’ equity, as of year end 0.1540 0.1625 Amounts included in the statements of operations and the comprehensive income (loss), changes in stockholders’ equity and cash flows 0.1603 0.1627 The exchange rates used to translate amounts in AUD into US dollars for the purposes of preparing the consolidated financial statements are as follows: December 31, 2015 December 31, 2014 Balance sheet items, except for stockholders’ equity, as of year end 0.7288 0.8181 Amounts included in the statements of operations and the comprehensive income (loss), changes in stockholders’ equity and cash flows 0.7188 0.9024 For the years ended December 31, 2015 and 2014, foreign currency translation adjustments of $(3,318,614) and $(258,031), respectively, have been reported as other comprehensive income (loss). Other comprehensive income (loss) of the Company consists solely of foreign currency translation adjustments. Pursuant to FASB ASC 740-30-25-17, “Exceptions to Comprehensive Recognition of Deferred Income Taxes,” Although government regulations now allow convertibility of the RMB for current account transactions, significant restrictions still remain. Hence, such translations should not be construed as representations that the RMB could be converted into US and Australian dollars at that rate or any other rate. The value of the RMB against the US and Australian dollar may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of the RMB may materially affect the Company’s financial condition in terms of US dollar reporting. In August 2015, the PRC devalued its currency by approximately 3.5%. |
Revenue and Cost Recognition | Revenue and Cost Recognition The Company receives revenues from the sale of electronic products. The Company’s revenue recognition policies are in compliance with SEC Staff Accounting Bulletin (“SAB”) 104 (codified in FASB ASC Topic 605). Sales revenue is recognized when the products are delivered and when customer acceptance occurs, the price is fixed or determinable, no other significant obligations of the Company exist and collectability is reasonably assured. Finished goods are delivered from outsourced manufacturers to the Company. Revenue is recognized when the title to the products has been passed to the customer, which is the date the products are picked up by the customer at the Company’s location or delivered to the designated locations by Company employees and accepted by the customer and the previously discussed requirements are met. The customer’s acceptance occurs upon inspection at the time of pickup or delivery by signing an acceptance form. The Company does not provide its customers with the right of return. A 36-month warranty is offered to customers for exchange or repair of defective products, the cost of which is substantially covered by the outsourced manufacturers’ warranty policies as specified in the contract between the Company and its outsourced manufacturers. As a result, the Company does not recognize a warranty liability. The Company follows the guidance set forth by FASB ASC 605-45-45 to assess whether the Company acts as the principal or agent in the transaction. The determination involves judgment and is based on an evaluation of whether the Company has the substantial risks and rewards of ownership under the terms of the arrangement. Based on the assessment, the Company determined it acts as a principal in the transaction and reports revenues on the gross basis. FASB ASC 605-45-45 sets forth eight criteria that support reporting recognition of gross revenue (i.e. principal sales) and three that support reporting net revenue (i.e. agent sales). As applied to the relationship between the Company, its manufacturers, and its customers, the following are the criteria that support reporting gross revenue: ● Shenzhen Wonhe is the primary obligor in each sale, as it is responsible for fulfillment of customer orders, including the acceptability of the products purchased by the customer. ● Shenzhen Wonhe has general inventory risk, as it takes title to a product before that product is ordered by or delivered to a customer. ● Shenzhen Wonhe establishes its own pricing for its products. ● Shenzhen Wonhe has discretion in supplier selection. ● Shenzhen Wonhe designed the Home Media Center Model 720 (the “HMC720”) and the two Wifi Routers and is responsible for all of its specifications. ● Shenzhen Wonhe has physical inventory loss risk until the product is delivered to the customer. ● Shenzhen Wonhe has full credit risk for amounts billed to its customers. The only criterion supporting recognition of gross revenue that is not satisfied by the relationship between the Company and its manufacturers is: the entity changes the product or performs part of the service. Moreover, none of the three criteria supporting recognition of net revenue is present in the Company’s sales transactions. For this reason, the Company records gross revenue with respect to sales by Shenzhen Wonhe. During the last quarter of 2014, the Company started to sell the HMC720, which was developed by the Company and outsourced to others to produce. During the first quarter of 2015, the Company commenced selling the Wifi-Router YLT-100S. During the second quarter of 2015, the Company commenced selling the YLT-300S. These Routers were developed by the Company and outsourced to others to produce. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments FASB ASC 820 specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs). In accordance with ASC 820, the following summarizes the fair value hierarchy: Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements. ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of December 31, 2015 and 2014, none of the Company’s assets and liabilities were required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, accounts receivable and various payables, approximate their fair values due to the short term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented. |
Advertising Costs | Advertising Costs Advertising costs are paid to an advertising agency for market analysis and strategic planning and are charged to operations when incurred. Advertising costs were $341,840 and $130,160 for the years ended December 31, 2015 and 2014, respectively. |
Research and Development Costs | Research and Development Costs The Company develops software to be marketed as part of its products, and that is not for internal use. The software is essential to the functionality of the Company’s tangible products. Therefore, the Company accounts for research and development costs incurred in development of its software in accordance with FASB ASC 985-20. Research and development costs are charged to operations when incurred. Development costs of computer software to be sold, leased, or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. In most instances, the Company’s products are released soon after technological feasibility has been established. Therefore, costs incurred subsequent to achievement of technological feasibility are usually not significant, and generally most software development costs have been expensed as incurred. Research and development costs were $142,527 and $92,956 for the years ended December 31, 2015 and 2014, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all demand and time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Accounts Receivable | Accounts Receivable Accounts receivable are stated at cost, net of an allowance for doubtful accounts. Receivables outstanding longer than the payment terms are considered past due. The Company provides an allowance for doubtful accounts for estimated losses resulting from the failure of customers to make required payments, when due. The Company reviews the accounts receivable on a periodic basis and makes allowances where there is doubt as to the collectability of the outstanding balance. In evaluating the collectability of an individual receivable balance, the Company considers many factors, including the age of the balance, the customer’s payment history, its current credit-worthiness and current economic trends. As of December 31, 2015 and 2014, the Company considered all accounts receivable collectable and an allowance for doubtful accounts was not necessary. For the years ended December 31, 2015 and 2014, the Company did not write off any accounts receivable as bad debts. |
Fixed Assets and Depreciation | Fixed Assets and Depreciation Fixed assets are recorded at cost, less accumulated depreciation. Cost includes the price paid to acquire the asset, and any expenditure that substantially increases the asset’s value or extends the useful life of an existing asset. Leasehold improvements are amortized over the lesser of the remaining term of the lease or the estimated useful lives of the improvements. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the periods benefited. Maintenance and repairs are generally expensed as incurred. The estimated useful lives for fixed asset categories are as follows: Office equipment 5 years Motor vehicles 5 years Leasehold improvements Shorter of the remaining term of the lease or life of the improvement |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company applies FASB ASC 360, “Property, Plant and Equipment,” |
Statutory Reserve Fund | Statutory Reserve Fund Pursuant to corporate law of the PRC, Shengshihe Consulting and Shenzhen Wonhe are required to transfer 10% of their net income, as determined under PRC accounting rules and regulations, to a statutory reserve fund until such reserve balance reaches 50% of their registered capital. The statutory reserve fund is non-distributable, other than during liquidation, and can be used to fund prior years’ losses, if any, and may be utilized for business expansion or used to increase registered capital, provided that the remaining reserve balance after such use is not less than 25% of the registered capital. As of December 31, 2015, $1,695,564 has been transferred from retained earnings to the statutory reserve fund. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes” ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with these tax positions. As of December 31, 2015 and 2014, the Company did not have any liabilities for unrecognized tax benefits. The income tax laws of various jurisdictions in which the Company and its subsidiaries operate are summarized as follows: United States The Company is subject to United States tax at graduated rates from 15% to 35%. No provision for income taxes in the United States has been made as the Company had no U.S. taxable income for the years months ended December 31, 2015 and 2014. BVI World Win is incorporated in the BVI and is governed by the income tax laws of the BVI. According to current BVI income tax law, the applicable income tax rate for the Company is 0%. Australia Australian Wonhe is incorporated in Australia. Pursuant to the income tax laws of Australia, the Company is not subject to tax on non-Australia source income. Hong Kong Kuayu International is incorporated in Hong Kong. Pursuant to the income tax laws of Hong Kong, the Company is not subject to tax on non Hong Kong source income. PRC Shenzhen Wonhe and Shengshihe Consulting are subject to an Enterprise Income Tax at 25% and each file their own tax returns. Consolidated tax returns are not permitted in China. On July 23, 2012, the National Tax Bureau, Shenzhen Nanshan Branch declared that Shenzhen Wonhe is qualified for the preferential tax treatment afforded by the PRC to enterprises engaged in the development of software or integrated circuits. As a result, starting from its first profitable year, Shenzhen Wonhe had a two-year exemption from the Enterprise Income Tax and has a 50% exemption for the next three years commencing January 1, 2014. The tax regulations required that the enterprise pay income tax until its eligibility for the exemption is determined - i.e. until the local tax bureau determines that the enterprise has recorded its first profitable year. Payments were made of approximately $2,600,000 (RMB 16,107,000) based upon 2012 income while the local tax bureau reviewed the Company’s financial results. The National Tax Bureau determined that the Company had realized a profit in 2012. Since the Company was declared exempt from tax with respect to 2012, the payments that were made will be applied to future income taxes due. The payments have been reflected as prepaid income taxes on the balance sheet as of December 31, 2015 and 2014. For the year ended December 31, 2014, the Company offset the income tax provision of $277,274. For the year ended December 31, 2015, the Company offset the income tax provision of $1,485,898, paid income tax of $ 388,412, leaving a balance of prepaid income taxes of $ 1,164,478. |
Noncontrolling interests | Noncontrolling Interests The noncontrolling interest in Wonhe Multimedia not attributable, directly or indirectly to the Company, is measured at its carrying value in the stockholders’ equity section of the consolidated balance sheets. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company computes net income (loss) per common share in accordance with FASB ASC 260, “Earnings Per Share” |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of exchange rates used to translate amounts in RMB into US dollars | December 31, 2015 December 31, 2014 Balance sheet items, except for stockholders’ equity, as of year end 0.1540 0.1625 Amounts included in the statements of operations and the comprehensive income (loss), changes in stockholders’ equity and cash flows 0.1603 0.1627 December 31, 2015 December 31, 2014 Balance sheet items, except for stockholders’ equity, as of year end 0.7288 0.8181 Amounts included in the statements of operations and the comprehensive income (loss), changes in stockholders’ equity and cash flows 0.7188 0.9024 |
Summary of estimated useful lives for fixed assets | Office equipment 5 years Motor vehicles 5 years Leasehold improvements Shorter of the remaining term of the lease or life of the improvement |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fixed Assets [Abstract] | |
Summary of components of fixed assets | December 31, 2015 December 31, 2014 Office equipment $ 211,897 $ 157,751 Motor vehicles 661,703 219,419 Production equipment 1,287,502 - Leasehold improvements - 109,346 2,161,102 486,516 Less: accumulated depreciation (416,521 ) (289,266 ) Fixed assets, net $ 1,744,581 $ 197,250 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Summary of intangible assets | December 31, 2015 December 31, 2014 Software $ 45,432 $ 26,000 Less: accumulated amortization (28,683 ) (17,333 ) Intangible assets, net $ 16,749 $ 8,667 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Summary of provision for (benefit from) income taxes | Year Ended December 31, 2015 2014 Current $ 1,489,251 $ 295,973 Deferred - - Total $ 1,489,251 $ 295,973 |
Summary of reconciliation of the statutory rate with the effective income tax rate | Year Ended December 31, Year Ended December 31, 2015 2014 Tax at PRC statutory rate 25.0 % 25.0 % Subsidiary tax holiday in PRC (12.5 ) (12.5 ) Effect of unusable parent tax loss 22.6 - Other 0.2 0.4 Effective tax rate 35.3 % 12.9 % |
Summary of aggregate dollar and per share effects of the Company's VIE tax holidays | Years Ended December 31, 2015 2014 Aggregate dollar effect of tax holiday $ 1,448,924 $ 276,445 Per share effect, basic and diluted 0.03 0.01 |
Contributions to Multi-Employ27
Contributions to Multi-Employer Welfare Programs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Contributions to Multi-Employer Welfare Programs [Abstract] | |
Schedule of percentage of employee salaries into the specified plans | Regulation Plan % of Salary Shenzhen Special Economic Zone Social Retirement Insurance Regulations Pension 13% Shenzhen Work-Related Injury Insurance Regulations Workers Comp. 0.4% Guangdong Unemployment Insurance Regulations Unemployment 2% Housing Provident Fund Management Regulations Housing 5% Shenzhen Social Medical Insurance Measures Medical 6.5% or 0.6%* Guangdong Employees Maternity Insurance Maternity 0.5% or 0.2%* * Depending on their position in the Company, employees receive either hospitalization, medical and maternity insurance or comprehensive medical and maternity insurance, which is a lower premium. |
Schedule of total contributions to employee welfare programs | Year Ended December 31, 2015 2014 Total contributions $ 29,981 $ 25,050 |
Condensed Financial Informati28
Condensed Financial Information of The Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of The Parent Company [Abstract] | |
Condensed Balance Sheets | ASSETS December 31, 2015 December 31, 2014 Cash-restricted $ 14,332,241 $ - Other receivable from subsidiaries 9,912,000 9,912,000 Investment in subsidiaries 21,093,752 28,558,212 TOTAL ASSETS $ 45,337,994 $ 38,470,212 LIABILITIES AND STOCKHOLDERS’ EQUITY December 31, 2015 December 31, 2014 Current liabilities: Loan from stockholder $ 366,040 $ 228,886 Accrued liabilities 5,000 37,509 Total current liabilities 371,040 266,395 Stockholders’ equity: Preferred stock: $0.001 par value; 10,000,000 shares authorized; none issued and outstanding - - Common stock: $0.001 par value; 90,000,000 shares authorized; 58,510,130 and 38,380,130 shares issued and outstanding at December 31, 2015 and 2014, respectively 58,510 38,380 Additional paid-in capital 37,592,346 17,011,131 Retained earnings 7,316,098 21,154,306 Total stockholders’ equity 44,966,954 38,203,817 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 45,337,994 $ 38,470,212 |
Condensed Statements of Income | Year Ended 2015 2014 Revenues: Share of earnings from investment in subsidiaries $ 5,521,942 $ 1,733,071 Operating expenses: Stock compensation 7,534,080 - General and administrative 104,645 (84,665 ) Net income $ (2,116,783 ) $ 1,648,406 |
Condensed Statements of Cash Flows | Year Ended 2015 2014 Cash flows from operating activities: Net income $ (2,116,783 ) $ 1,648,406 Adjustments to reconcile net income to net cash provided by (used in) operating activities Share of earnings from investment in subsidiaries (5,521,942 ) (1,644,656 ) Stock compensation 7,534,080 - (Decrease) increase in accrued liabilities (32,509 ) (101,750 ) Net cash (used by) operating activities (137,154 ) (98,000 ) Cash flows from financing activities: Proceeds from sale of common stock 15,196,298 - Proceeds from stockholders 137,154 98,000 Net cash (used by) financing activities 15,333,452 98,000 Effect of exchange rate changes on cash: (864,057 ) - |
Organization and Business (Deta
Organization and Business (Details) | Dec. 21, 2015USD ($)shares | Sep. 15, 2015USD ($) | Sep. 15, 2015CNY (¥) | Aug. 05, 2015USD ($) | Aug. 05, 2015HKD | Jun. 27, 2012shares | May. 30, 2012USD ($)$ / shares | May. 30, 2012CNY (¥) | Jul. 31, 2015 | Sep. 30, 2014USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($) | Apr. 30, 2015$ / shares | Apr. 30, 2015¥ / shares | May. 30, 2012¥ / shares | Nov. 16, 2010USD ($) |
Organization and Business (Textual) | ||||||||||||||||
Number of common stock issued in exchange of acquisition | shares | 19,128,130 | |||||||||||||||
Registered capital of Shenzhen Wonhe Technology Co. Ltd. | $ 7,495,000 | |||||||||||||||
Purchase price per share paid for equity interest acquired | (per share) | $ 0.16 | $ 0.77 | ¥ 4.72 | ¥ 1 | ||||||||||||
Service fee paid to shengshihe consulting description | 95% of Shenzhen Wonhe's annual net income plus an additional monthly payment of approximately $8,165 (RMB 50,000). | 95% of Shenzhen Wonhe's annual net income plus an additional monthly payment of approximately $8,165 (RMB 50,000). | ||||||||||||||
Additional payment paid for consideration of consulting services | $ 8,015 | ¥ 50,000 | ||||||||||||||
Ownership Percentage | 25.00% | |||||||||||||||
Acquisition of VIE | $ (1,540) | |||||||||||||||
Proceeds from sale of subsidiary's stock | HKD 10,000 | 1,290 | ||||||||||||||
Stock compensation for shareholder and consultants | $ 7,534,080 | |||||||||||||||
Wonhe International Holdings Group Co., Ltd. [Member] | ||||||||||||||||
Organization and Business (Textual) | ||||||||||||||||
Ownership Percentage | 100.00% | 100.00% | ||||||||||||||
Percentage change of ownership | 15.00% | |||||||||||||||
Shares issued | shares | 20,250,000 | |||||||||||||||
Kuayu [Member] | ||||||||||||||||
Organization and Business (Textual) | ||||||||||||||||
Proceeds from sale of subsidiary's stock | $ (1,290) | |||||||||||||||
Wonhe Multimedia Commerce Ltd [Member] | ||||||||||||||||
Organization and Business (Textual) | ||||||||||||||||
Ownership Percentage | 60.00% | |||||||||||||||
Shengshihe Consulting [Member] | ||||||||||||||||
Organization and Business (Textual) | ||||||||||||||||
Acquisition of VIE | $ 1,569 | ¥ 10,000 | ||||||||||||||
Australia Wonhe [Member] | ||||||||||||||||
Organization and Business (Textual) | ||||||||||||||||
Ownership Percentage | 60.00% | |||||||||||||||
Proceeds from sale of subsidiary's stock | $ 1,941,318 | |||||||||||||||
Shares issued | shares | 33,750,000 | |||||||||||||||
Shares price (US per share) | $ / shares | $ 0.13952 | |||||||||||||||
Ordinary shares | shares | 16,951,802 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
AUD [Member] | ||
Summary of exchange rates used to translate amounts in RMB into US dollars | ||
Balance sheet items, except for stockholders' equity as of year end | 0.7288 | 0.8181 |
Amounts included in the statements of operations and the comprehensive income (loss) changes in stockholders' equity and cash flows | 0.7188 | 0.9024 |
RMB [Member] | ||
Summary of exchange rates used to translate amounts in RMB into US dollars | ||
Balance sheet items, except for stockholders' equity as of year end | 0.1540 | 0.1625 |
Amounts included in the statements of operations and the comprehensive income (loss) changes in stockholders' equity and cash flows | 0.1603 | 0.1627 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details 1) | 12 Months Ended |
Dec. 31, 2015 | |
Office equipment [Member] | |
Schedule of estimated useful lives for fixed assets | |
Estimated useful lives for fixed assets | 5 years |
Motor vehicles [Member] | |
Schedule of estimated useful lives for fixed assets | |
Estimated useful lives for fixed assets | 5 years |
Leasehold improvements [Member] | |
Schedule of estimated useful lives for fixed assets | |
Estimated useful lives for fixed assets | Shorter of the remaining term of the lease or life of the improvement |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Details Textual) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2015 | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015CNY (¥) | |
Summary of Significant Accounting Policies (Textual) | ||||
Foreign currency translation adjustments | $ (3,318,614) | $ (258,031) | ||
Advertising costs | 341,840 | 130,160 | ||
Amount transfer from retained earnings to statuary reserve | 1,695,564 | |||
Research and development costs | $ 142,527 | 92,956 | ||
Percentage of net income transfer to statutory reserve fund | 10.00% | |||
Applicable income tax rate by income tax laws of BVI | 0.00% | |||
Enterprise income tax exemption | 50.00% | |||
Enterprise income tax rate by income tax laws of PRC | 25.00% | |||
Valuation of currency percentage | 3.50% | |||
Percentage of minimum remaining reserve balance of Registered Capital, description | Not less than 25% of the registered capital. | |||
Prepaid income taxes | $ 2,600,000 | ¥ 16,107,000 | ||
Prepaid taxes | 1,164,478 | $ 2,341,300 | ||
Paid income tax | 388,412 | |||
Company offset income tax provision | $ 1,485,898 | $ 277,274 | ||
Statutory reserve fund transfer limitation, description | 10% of their net income, as determined under PRC accounting rules and regulations, to a statutory reserve fund until such reserve balance reaches 50% of their registered capital. | |||
Federal tax at graduated rates, minimum (percentage) | 15.00% | |||
Federal tax at graduated rates, maximum (percentage) | 35.00% |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of components of fixed assets | ||
Fixed assets | $ 2,161,102 | $ 486,516 |
Less: accumulated depreciation | (416,521) | (289,266) |
Fixed assets, net | 1,744,581 | 197,250 |
Office equipment [Member] | ||
Summary of components of fixed assets | ||
Fixed assets | 211,897 | 157,751 |
Motor vehicles [Member] | ||
Summary of components of fixed assets | ||
Fixed assets | 661,703 | $ 219,419 |
Production equipment [Member] | ||
Summary of components of fixed assets | ||
Fixed assets | $ 1,287,502 | |
Leasehold improvements [Member] | ||
Summary of components of fixed assets | ||
Fixed assets | $ 109,346 |
Fixed Assets (Details Textual)
Fixed Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fixed Assets (Textual) | ||
Depreciation expense | $ 194,789 | $ 81,473 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of intangible assets | ||
Software | $ 45,432 | $ 26,000 |
Less: Accumulated amortization | (28,683) | (17,333) |
Intangible assets, net | $ 16,749 | $ 8,667 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets (Textual) | ||
Amortization expense | $ 12,757 | $ 8,677 |
Commitments (Details)
Commitments (Details) | Sep. 30, 2013USD ($) | May. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Dec. 31, 2015USD ($)Routers | Dec. 31, 2015CNY (¥)Routers | Dec. 31, 2014USD ($) | Jul. 31, 2015 | Apr. 30, 2015CNY (¥) |
Commitments (Textual) | ||||||||
Lease expiration date | Aug. 31, 2014 | May 31, 2016 | ||||||
Rent expense | $ | $ 135,657 | $ 115,879 | ||||||
Monthly rental from unrelated parties | $ | $ 9,514 | $ 11,897 | ||||||
Ownership Percentage | 25.00% | |||||||
YLT [Member] | ||||||||
Commitments (Textual) | ||||||||
Number of commercial routers purchase | 662,000 | 662,000 | ||||||
Ownership Percentage | 4.87% | 4.87% | ||||||
YLT [Member] | One Year [Member] | ||||||||
Commitments (Textual) | ||||||||
Number of commercial routers purchase | 200,000 | 200,000 | ||||||
YLT [Member] | Two Year [Member] | ||||||||
Commitments (Textual) | ||||||||
Number of commercial routers purchase | 220,000 | 220,000 | ||||||
YLT [Member] | Three Year [Member] | ||||||||
Commitments (Textual) | ||||||||
Number of commercial routers purchase | 242,000 | 242,000 | ||||||
Employment Agreements [Member] | Nanfang Tong [Member] | ||||||||
Commitments (Textual) | ||||||||
Monthly salary | $ 1,282 | ¥ 8,000 | ||||||
Agreements terminates date | Oct. 31, 2016 | Oct. 31, 2016 | ||||||
Employment Agreements [Member] | Qing Tong [Member] | ||||||||
Commitments (Textual) | ||||||||
Monthly salary | $ 1,603 | ¥ 10,000 | ||||||
Agreements terminates date | Oct. 31, 2016 | Oct. 31, 2016 | ||||||
Strategic Cooperation Agreement [Member] | YLT [Member] | ||||||||
Commitments (Textual) | ||||||||
Ownership percentage | 4.87% | 4.87% | ||||||
Term of agreement | 3 years | |||||||
Total purchase price | $ 148,566,040 | ¥ 926,800,000 | ||||||
Gross annual revenues | $ 24,480,000 | ¥ 150,000,000 | ||||||
Net annual profit | $ 2,040,000 | ¥ 12,500,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transactions (Textual) | ||
Loan from stockholder | $ 335,655 | $ 241,561 |
Sale of Common Stock (Details)
Sale of Common Stock (Details) | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2015USD ($)IndividualsShareholdersCompanies$ / sharesshares | Apr. 30, 2015CNY (¥)shares | Dec. 31, 2015Directorsshares | Apr. 30, 2015IndividualsShareholdersCompanies¥ / shares | May. 30, 2012$ / shares | May. 30, 2012¥ / shares | |
Sale Of Common Stock Textual [Abstract] | ||||||
Sale of common stock shares | shares | 20,130,000 | 20,130,000 | 4,600,000 | |||
Common stock purchase price | (per share) | $ 0.77 | ¥ 4.72 | $ 0.16 | ¥ 1 | ||
Total common stock value | $ 15,196,298 | ¥ 93,000,600 | ||||
Number of unrelated individuals | Individuals | 21 | 21 | ||||
Number of shareholders | Shareholders | 3 | 3 | ||||
Number of unrelated companies | Companies | 3 | 3 | ||||
Description of sale of stock | The Company's common stock was quoted on the OTCQB at $3.07 per share. Since over 75% of the shares in this offering were sold to unrelated parties at $0.77 per share, the Company believes that this price was more representative of the price per share than $3.07. In addition, no shares of the Company's common stock were traded on the OTCQB from January 1, 2015 to April 22, 2015. As a result, management believes that the $0.77 per share was a fair price and recorded no compensation related to the share sold to the officer/ director of the Company. | |||||
Percentage of sale of stock | 22.70% | |||||
Number of director | Directors | 2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Provision for (benefit from) income taxes | ||
Current | $ 1,489,251 | $ 295,973 |
Deferred | ||
Total | $ 1,489,251 | $ 295,973 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of reconciliation of the statutory rate with the effective income tax rate | ||
Tax at PRC statutory rate | 25.00% | 25.00% |
Subsidiary tax holiday in PRC | (12.50%) | (12.50%) |
Effect of unusable parent tax loss | 22.60% | |
Other | 0.20% | 0.40% |
Effective tax rate | 35.30% | 12.90% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of aggregate dollar and per share effects of the Company's VIE tax holidays | ||
Aggregate dollar effect of tax holiday | $ 1,448,924 | $ 276,445 |
Per share effect, basic and diluted | $ 0.03 | $ 0.01 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Taxes (Textual) | |
Unremitted foreign earnings of PRC subsidiaries | $ 17,000,000 |
Cash and cash equivalents in PRC | 35,300,000 |
Stock compensation, no deferred tax benefit to be recognized | 7,534,000 |
Unrecognized tax benefits | $ (7,644,000) |
Contingencies (Details)
Contingencies (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Contingencies (Textual) | |
Civil penalties of each foreign bank account | $ 10,000 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) | 12 Months Ended | |
Dec. 31, 2015AUDCustomers | Dec. 31, 2014Customers | |
Concentration of Credit Risk (Textual) | ||
Bank account in Australia | AUD | AUD 250,000 | |
Accounts receivable [Member] | ||
Concentration of Credit Risk (Textual) | ||
Concentration risk, Percentage | 34.00% | 11.67% |
Customer [Member] | ||
Concentration of Credit Risk (Textual) | ||
Concentration risk, Percentage | 36.00% | 23.00% |
Number of major customer accounted for revenue | 3 | 2 |
Customer [Member] | Accounts receivable [Member] | ||
Concentration of Credit Risk (Textual) | ||
Concentration risk, Percentage | 94.00% | 91.00% |
Number of major customer accounted for revenue | 4 | 7 |
Contributions to Multi-Employ46
Contributions to Multi-Employer Welfare Programs (Details) | 12 Months Ended | |
Dec. 31, 2015 | ||
Pension [Member] | ||
Multiemployer Plans [Line Items] | ||
Regulation | Shenzhen Special Economic Zone Social Retirement Insurance Regulations | |
% of Salary | 13% | |
Workers Comp. [Member] | ||
Multiemployer Plans [Line Items] | ||
Regulation | Shenzhen Work-Related Injury Insurance Regulations | |
% of Salary | 0.4% | |
Unemployment [Member] | ||
Multiemployer Plans [Line Items] | ||
Regulation | Guangdong Unemployment Insurance Regulations | |
% of Salary | 2% | |
Housing [Member] | ||
Multiemployer Plans [Line Items] | ||
Regulation | Housing Provident Fund Management Regulations | |
% of Salary | 5% | |
Medical [Member] | ||
Multiemployer Plans [Line Items] | ||
Regulation | Shenzhen Social Medical Insurance Measures | |
% of Salary | 6.5% or 0.6% | [1] |
Maternity [Member] | ||
Multiemployer Plans [Line Items] | ||
Regulation | Guangdong Employees Maternity Insurance | |
% of Salary | 0.5% or 0.2% | [1] |
[1] | Depending on their position in the Company, employees receive either hospitalization, medical and maternity insurance or comprehensive medical and maternity insurance, which is a lower premium. |
Contributions to Multi-Employ47
Contributions to Multi-Employer Welfare Programs (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Contributions to Multi-Employer Welfare Programs [Abstract] | ||
Total contributions | $ 29,981 | $ 25,050 |
Investment in Project (Details)
Investment in Project (Details) - Dec. 31, 2015 $ in Thousands | USD ($) | CNY (¥) |
Investment In Project (Textual) | ||
Investments | $ 5,780 | ¥ 38,000,000 |
Condensed Financial Informati49
Condensed Financial Information of The Parent Company (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | |||
Investment in subsidiaries | $ 5,852,430 | ||
TOTAL ASSETS | 64,516,018 | $ 40,276,350 | |
Current liabilities: | |||
Loan from stockholder | 335,655 | 241,561 | |
Accrued liabilities | 192,550 | 154,261 | |
Total current liabilities | $ 753,093 | $ 590,757 | |
Stockholders' equity: | |||
Preferred stock: $0.001 par value; 10,000,000 shares authorized; none issued and outstanding | |||
Common stock: $0.001 par value; 90,000,000 shares authorized; 58,510,130 and 38,380,130 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively | $ 58,510 | $ 38,380 | |
Additional paid-in capital | 37,592,346 | 17,011,131 | |
Retained earnings | 7,610,229 | 18,332,743 | |
Total stockholders' equity | 63,762,925 | 39,685,593 | $ 37,949,926 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 64,516,018 | $ 40,276,350 | |
Parent Company [Member] | |||
ASSETS | |||
Cash-restricted | 14,332,241 | ||
Other receivable from subsidiaries | 9,912,000 | $ 9,912,000 | |
Investment in subsidiaries | 21,093,752 | 28,558,212 | |
TOTAL ASSETS | 45,337,994 | 38,470,212 | |
Current liabilities: | |||
Loan from stockholder | 366,040 | 228,886 | |
Accrued liabilities | 5,000 | 37,509 | |
Total current liabilities | $ 371,040 | $ 266,395 | |
Stockholders' equity: | |||
Preferred stock: $0.001 par value; 10,000,000 shares authorized; none issued and outstanding | |||
Common stock: $0.001 par value; 90,000,000 shares authorized; 58,510,130 and 38,380,130 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively | $ 58,510 | $ 38,380 | |
Additional paid-in capital | 37,592,346 | 17,011,131 | |
Retained earnings | 7,316,098 | 21,154,306 | |
Total stockholders' equity | 44,966,954 | 38,203,817 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 45,337,994 | $ 38,470,212 |
Condensed Financial Informati50
Condensed Financial Information of The Parent Company (Parenthetical) (Details 1) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 58,510,130 | 38,380,130 |
Common stock, shares outstanding | 58,510,130 | 38,380,130 |
Parent Company [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 58,510,130 | 38,380,130 |
Common stock, shares outstanding | 58,510,130 | 38,380,130 |
Condensed Financial Informati51
Condensed Financial Information of The Parent Company (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating expenses: | ||
Stock compensation | $ 7,534,080 | |
General and administrative | 8,394,140 | $ 489,714 |
Net income | (2,116,783) | 1,896,942 |
Parent Company [Member] | ||
Revenues: | ||
Share of earnings from investment in subsidiaries | 5,521,942 | $ 1,733,071 |
Operating expenses: | ||
Stock compensation | 7,534,080 | |
General and administrative | 104,645 | $ (84,665) |
Net income | $ (2,116,783) | $ 1,648,406 |
Condensed Financial Informati52
Condensed Financial Information of The Parent Company (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ (2,116,783) | $ 1,896,942 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Stock compensation | 7,534,080 | |
Net cash (used by) operating activities | 11,395,670 | $ (541,346) |
Cash flows from financing activities: | ||
Proceeds from sale of common stock | 15,196,298 | |
Net cash (used by) financing activities | 17,185,319 | $ 98,000 |
Parent Company [Member] | ||
Cash flows from operating activities: | ||
Net income | (2,116,783) | 1,648,406 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Share of earnings from investment in subsidiaries | (5,521,942) | $ (1,644,656) |
Stock compensation | 7,534,080 | |
(Decrease) increase in accrued liabilities | (32,509) | $ (101,750) |
Net cash (used by) operating activities | (137,154) | $ (98,000) |
Cash flows from financing activities: | ||
Proceeds from sale of common stock | 15,196,298 | |
Proceeds from stockholders | 137,154 | $ 98,000 |
Net cash (used by) financing activities | 15,333,452 | $ 98,000 |
Effect of exchange rate changes on cash: | $ (864,057) |
Condensed Financial Informati53
Condensed Financial Information of The Parent Company (Details Textual) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Restricted net assets value | $ 44,966,954 | $ 38,203,817 |
Parent Company [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Restricted net assets value | $ 45,337,994 | $ 38,470,212 |
Restricted net assets exceed percentage | 25.00% |
Subsequent Event (Details)
Subsequent Event (Details) | Jan. 12, 2016USD ($)Parties | Jan. 12, 2016CNY (¥)Parties | Dec. 31, 2015USD ($) | Jan. 12, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Subsequent Event [Line Items] | |||||
Amount of committed agreement | $ 5,780,000 | ¥ 38,000,000 | |||
Shenzhen Wonhe [Member] | |||||
Subsequent Event [Line Items] | |||||
Committed agreement expended amount | $ | $ 5,852,000 | ||||
Subsequent Event [Member] | Shenzhen Wonhe [Member] | |||||
Subsequent Event [Line Items] | |||||
Committed agreement expended amount | $ 5,780,000 | ¥ 38,000,000 | |||
Project including in cash | 34,370,000 | ¥ 226,010,000 | |||
Routers and other equipment | $ 18,090,000 | 118,980,000 | |||
Parties in agreement | Parties | 2 | 2 | |||
Subsequent Event [Member] | Shenzhen Wonhe [Member] | 2016 [Member] | |||||
Subsequent Event [Line Items] | |||||
Project including in cash | 104,498,990 | ||||
Subsequent Event [Member] | Shenzhen Wonhe [Member] | 2017 [Member] | |||||
Subsequent Event [Line Items] | |||||
Project including in cash | 84,636,558 | ||||
Subsequent Event [Member] | Shenzhen Wonhe [Member] | 2018 [member] | |||||
Subsequent Event [Line Items] | |||||
Project including in cash | ¥ 36,871,412 |