Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 14, 2016 | |
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-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 73,510,130 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 46,282,021 | $ 52,074,752 |
Accounts receivable | 5,101,893 | 3,645,907 |
Inventory | 138,042 | |
Prepaid expense | 22,019 | |
Total current assets | 49,165,875 | 55,720,659 |
Fixed assets | 865,760 | 2,161,102 |
Less: accumulated depreciation | (390,837) | (416,521) |
Fixed assets, net | 474,923 | 1,744,581 |
Other assets: | ||
Intangible assets, net | 11,244 | 16,749 |
Investment in project | 23,360,531 | 5,852,430 |
Other assets | 17,541 | 17,121 |
Prepaid income taxes | 146,296 | 1,164,478 |
Total other assets | 23,535,612 | 7,050,778 |
TOTAL ASSETS | 73,176,410 | 64,516,018 |
Current liabilities: | ||
Payroll payable | 56,848 | 47,891 |
Taxes payable | 936,972 | 176,997 |
Dividend payable | 186,122 | |
Loan from stockholder | 408,996 | 335,655 |
Accrued expenses and other payables | 177,367 | 192,550 |
Total current liabilities | 1,766,305 | 753,093 |
Commitments and Contingencies | 1,766,305 | 753,093 |
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; 73,510,130 and 58,510,130 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 73,510 | 58,510 |
Additional paid-in capital | 38,781,666 | 37,592,346 |
Retained earnings | 11,423,571 | 7,610,229 |
Statutory reserve fund | 2,123,887 | 1,695,564 |
Other comprehensive (loss) | (2,822,954) | (1,989,695) |
Stockholders' equity before noncontrolling interests | 49,579,680 | 44,966,954 |
Noncontrolling interests | 21,830,425 | 18,795,971 |
Total stockholders' equity | 71,410,105 | 63,762,925 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 73,176,410 | $ 64,516,018 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
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 | 73,510,130 | 58,510,130 |
Common stock, shares outstanding | 73,510,130 | 58,510,130 |
Consolidated Statements of Inco
Consolidated Statements of Income and Other Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Sales | $ 12,229,139 | $ 8,005,378 | $ 33,864,873 | $ 21,430,062 |
Cost of sales | (8,288,251) | (4,643,462) | (22,654,594) | (11,759,459) |
Gross profit | 3,940,888 | 3,361,916 | 11,210,279 | 9,670,603 |
Operating expenses: | ||||
Research and development expenses | 225,067 | 48,770 | 378,585 | 104,155 |
Selling and marketing | 140,710 | 309,859 | 442,422 | 441,221 |
General and administrative | 261,187 | 8,055,125 | 934,585 | 8,356,569 |
Total operating expenses | 626,964 | 8,413,754 | 1,755,592 | 8,901,945 |
Income from operations | 3,313,924 | (5,051,838) | 9,454,687 | 768,658 |
Non-operating income (loss): | ||||
Interest income | 99,367 | 48,098 | 272,195 | 129,770 |
Write off leasehold improvements | (54,404) | (54,404) | ||
Other non-operating income (loss) | 27 | (8,150) | (4,154) | (8,150) |
Total non-operating income (loss) | 99,394 | (14,456) | 268,041 | 67,216 |
Income (Loss) before provision for income taxes | 3,413,318 | (5,066,294) | 9,722,728 | 835,874 |
Provision for income taxes | 883,926 | 311,426 | 1,698,921 | 1,051,267 |
Net income (loss) | 2,529,392 | (5,377,720) | 8,023,807 | (215,393) |
Noncontrolling interests | 1,192,900 | (661,853) | 3,782,143 | (919,348) |
Net income (loss) attributable to common stockholders | $ 1,336,492 | $ (6,039,573) | $ 4,241,664 | $ (1,134,741) |
Earnings (loss) per common share, basic and diluted | $ 0.02 | $ (0.1) | $ 0.06 | $ (0.02) |
Weighted average shares outstanding, basic and diluted | 73,510,130 | 58,510,130 | 64,444,196 | 51,800,130 |
Comprehensive income (loss): | ||||
Net income (loss) | $ 2,529,392 | $ (5,377,720) | $ 8,023,807 | $ (215,393) |
Foreign currency translation adjustment | 209,449 | (2,354,088) | (1,396,779) | (2,191,963) |
Comprehensive (loss) income | 2,738,841 | (7,731,808) | 6,627,028 | (2,407,356) |
Comprehensive income (loss) attributable to noncontrolling interests | 1,112,404 | 266,459 | 3,218,623 | 530,811 |
Net comprehensive income (loss) attributable to common stockholders | $ 1,626,437 | $ (7,998,267) | $ 3,408,405 | $ (2,938,167) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Statutory Reserve Fund | Noncontrolling Interest | Other Comprehensive Income |
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) |
Sales of common stock | 1,204,320 | 15,000 | 1,189,320 | ||||
Net income | 8,023,807 | 4,241,665 | 3,782,142 | ||||
Appropriation of statutory reserve | (428,323) | 428,323 | |||||
Dividend declared | 186,122 | (184,168) | |||||
Other comprehensive income | (1,396,779) | (563,520) | (833,259) | ||||
Balance at Sep. 30, 2016 | $ 71,410,105 | $ 73,510 | $ 38,781,666 | $ 11,423,571 | $ 2,123,887 | $ 21,830,425 | $ (2,822,954) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 8,023,807 | $ (215,393) |
Adjustment to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 180,570 | 115,298 |
Loss on disposal of fixed assets | 4,144 | 54,404 |
Stock compensation for shareholder and consultants | 7,534,080 | |
Change in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | (1,456,406) | 535,864 |
(Increase) in inventory | (138,042) | |
(Increase) in prepaid expenses | (22,019) | |
Decrease in prepaid income taxes | 1,018,182 | 714,605 |
Increase in payroll payable | 8,957 | 20,859 |
Increase (decrease) in taxes payable | 759,975 | (20,195) |
(Decrease) increase in accrued expenses and other payable | (15,184) | 52,104 |
Net cash provided by operating activities | 8,363,984 | 8,791,626 |
Cash flows from Investing activities: | ||
Purchase of property, plant and equipment | (56,951) | (1,889,913) |
Purchase of intangible assets | (7,569) | (21,830) |
Proceeds from sale of subsidiary's stock | 1,290 | |
Purchase of VIE | (1,569) | |
Investment in project | (16,789,227) | |
Net cash used in investing activities | (16,853,747) | (1,912,022) |
Cash flows from financing activities: | ||
Proceeds from sales of common stock | 1,204,320 | 15,196,298 |
Net cash provided by financial activities | 1,204,320 | 15,196,298 |
Effect of exchange rate changes on cash | (885,388) | (2,144,561) |
Net change in cash | (8,170,831) | 19,931,341 |
Cash, beginning | 52,074,752 | 34,447,100 |
Cash, ending | 43,903,921 | 54,378,441 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 391,805 | |
Cash paid for interest | ||
Noncash Investing activities: | ||
Fixed assets transferred to investment in project | 1,270,689 | |
Noncash financing activities: | ||
Dividend declared not paid | 186,122 | |
Payment of accrued expenses by stockholder | $ 75,000 | $ 70,742 |
Organization and Business
Organization and Business | 9 Months Ended |
Sep. 30, 2016 | |
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 were recognized as compensation during the nine months 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 the Shenzhen, Guangdong Province in the PRC. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
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 three and nine months ended September 30, 2016 and 2015 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. The unaudited interim consolidated financial statements of the Company as of September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements. Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. The interim consolidated financial information should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Form 10-K filed with the SEC. The results of operations for the three and nine months ended September 30, 2016 and 2015 are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2016. 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: September 30, December 31, (unaudited) Balance sheet items, except for stockholders’ equity, as of periods end 0.1499 0.1540 Three Months Ended Nine Months Ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Amounts included in the statements of income and cash flows for the periods 0.1500 0.1593 0.1520 0.1617 The exchange rates used to translate amounts in AUD into US dollars for the purposes of preparing the consolidated financial statements are as follows: September 30, December 31, (unaudited) Balance sheet items, except for stockholders’ equity, as of periods end 0.7635 0.7288 Three Months Ended Nine Months Ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Amounts included in the statements of income and cash flows for the periods 0.7579 0.7773 0.7420 0.7819 For the three and nine months ended September 30, 2016 and 2015, foreign currency translation adjustments of $209,449 and $(2,354,088) respectively, $(1,396,779) and $(2,191,963), 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. 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 Wi-Fi 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. 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 September 30, 2016 and December 31, 2015, none of the Company’s assets and liabilities was 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 $112,514 and $134,316, respectively, $341,975 and $232,056, respectively, for the three and nine months ended September 30, 2016 and 2015. 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 $225,067 and $48,770, respectively, and $378,585 and $104,155, respectively, for the three and nine months ended September 30, 2016 and 2015. 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 September 30, 2016 and December 31, 2015, the Company considered all accounts receivable collectable and an allowance for doubtful accounts was not necessary. For the three and nine months ended September 30, 2016 and 2015, the Company did not write off any accounts receivable as bad debts. Fixed Assets and Depreciation F ixed 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 September 30, 2016, $2,123,887 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 September 30, 2016 and December 31, 2015, 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 three and nine months ended September 30, 2016 and 2015. 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 September 30, 2016 and December 31, 2015. As of June 30, 2016, the eligibility for the 50% tax exemption had expired. From July 1, 2016, the Company will be required to pay 25% Enterprise Income Tax in full without any tax exemption. For the three and nine months ended September 30, 2016 and 2015, the Company offset the income tax provision of $188,707 and $309,417, respectively, and $1,003,702 and $1,045,118, respectively, leaving a balance of prepaid income taxes of $146,296 on September 30, 2016. Noncontrolling Interests The noncontrolling interest in Wonhe Multimedia is not attributable, directly or indirectly, to the Company. The noncontrolling interest 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 | 9 Months Ended |
Sep. 30, 2016 | |
Recently Issued Accounting Standards [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | 3. RECENTLY ISSUED ACCOUNTING STANDARDS In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the classification of certain specific cash flow issues including debt prepayment or extinguishment costs, settlement of certain debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of certain insurance claims and distributions received from equity method investees. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is currently evaluating the effect this ASU will have on its consolidated statement of cash flows. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new standard requires financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The standard will be effective for the Company beginning January 1, 2020, with early application permitted. The Company is evaluating the impact of adopting this new accounting guidance on its consolidated financial statements. In May, 2016, the FASB issued ASU No. 2016-10, Revenue with Contracts with Customers: Narrow-scope Improvements and Practical Expedients, which is an amendment to ASU No. 2014-09 that clarifies the objective of the collectability criterion, to allow entities to exclude amounts collected from customers from all sales taxes from the transaction price, to specify the measurement date for noncash consideration is contract inception, variable consideration guidance applies only to variability resulting from reasons other than the form of the consideration, and clarification on contract modifications at transition. The implementation guidelines follow ASU No. 2014-09. In April, 2016, the FASB issued ASU No. 2016-10, Revenue with Contracts with Customers: Identifying Performance Obligations and Licensing, which is an amendment to ASU No. 2014-09 that clarifies the aspects of identifying performance obligations and the licensing implementing guidance, while retaining the related principles within those areas. The implementation guidelines follow ASU No. 2014-09. In March, 2016, the FASB issued ASU No. 2016-08, Revenue with Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus net), which is an amendment to ASU No. 2014-09 that improved the operability and understandability of implementation guidance versus agent considerations by clarifying the determination of principal versus agent. The implementation guidelines follow ASU No. 2014-09. In March 2016, the FASB issued ASU No. 2016-06, Contingent Put and Call Options in Debt Instruments, Derivatives and Hedging (Topic 815). ASU 2016-06 clarifies that determining whether the economic characteristics of a put or call are clearly and closely related to its debt host requires only an assessment of the four-step decision sequence outlined in FASB ASC paragraph 815-15-25-24. Additionally, entities are not required to separately assess whether the contingency itself is clearly and closely related. The standard is effective for public business entities in interim and annual periods in fiscal years beginning after December 15, 2016. Early adoption is permitted in any interim period for which the entity’s financial statements have not been issued, but would be retroactively applied to the beginning of the year that includes the interim period. The standard requires a modified retrospective transition approach, with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. For instruments that are eligible for the fair value option, an entity has a one-time option to irrevocably elect to measure the debt instrument affected by the standard in its entirety at fair value with changes in fair value recognized in earnings. The Company does not expect the application of this guidance to have a material impact on the Company’s Consolidated Statements of Operations or Consolidated Statements of Condition. In March 2016, the FASB issued ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. This new guidance effectively removes the retroactive application imposed in current guidance when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The new standard becomes effective for the Company on January 1, 2017. Early adoption is permissible. The Company does not anticipate the adoption of ASU 2015-11 to have a material impact on the consolidated financial statements and related disclosures. In March 2016, the FASB Issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The updated guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard will be effective for the Company beginning January 1, 2017, with early application permitted. The Company is evaluating the impact of adopting this new accounting guidance on its consolidated financial statements. 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. |
Fixed Assets
Fixed Assets | 9 Months Ended |
Sep. 30, 2016 | |
Fixed Assets [Abstract] | |
FIXED ASSETS | 4. FIXED ASSETS Fixed assets at September 30, 2016 and December 31, 2015 are summarized as follows: September 30, 2016 December 31, 2015 (Unaudited) Office equipment $ 221,588 $ 211,897 Motor vehicles 644,172 661,703 Production equipment - 1,287,502 865,760 2,161,102 Less: accumulated depreciation (390,837 ) (416,521 ) Fixed assets, net $ 474,923 $ 1,744,581 Depreciation expense charged to operations for the three and nine months ended September 30, 2016 and 2015 was $28,690 and $63,453, respectively, $175,440 and $106,404, respectively. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | 5. INTANGIBLE ASSETS Intangible assets at September 30, 2016 and December 31, 2015 are summarized as follows: September 30, December 31, 2015 (Unaudited) Software $ 51,692 $ 45,432 Less: accumulated amortization (40,448 ) (28,683 ) Intangible assets, net $ 11,244 $ 16,749 Amortization expense charged to operations for the three and nine months ended September 30, 2016 and 2015 was $1,710 and $3,938, respectively, $5,130 and $8,894, respectively. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS | 6. COMMITMENTS In May 2015, the Company entered into a new lease agreement with an unrelated party at a monthly rent of $11,132 for one year, expiring in May 2016. In May 2016, the Company renewed this lease at the same monthly rent to May 2017. Rent expense for the three and nine months ended September 30, 2016 and 2015 was $36,789 and $44,671, respectively, and $111,819 and $116,387, respectively. On May 5 2016, the Company entered into an agreement to lease a laboratory office from an unrelated party with the fee to be determined based on usage. The lease has a two-year term, which expires on May 5, 2018. The lease fee of the laboratory for the three and nine months ended September 30, 2016 was $141,240 and $184,892, 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 13,000 (approximately US $1,950) and expires 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 15,000 (approximately US $2,250) and expires 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 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 three years. Under the agreement, 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. The Company produced approximately $5,145,000 and $13,403,000 in sales with YLT for the three and nine months ended September 31, 2016. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
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 $408,996 and $335,655 at September 30, 2016 and December 31, 2015, respectively. The proceeds of the loans were principally used to pay professional and legal fees incurred in the U.S. and other operating expenses for Wonhe High-Tech and Shengshihe Consulting incurred since their inception. The balance is reflected as loan from stockholder. |
Sale of Common Stock
Sale of Common Stock | 9 Months Ended |
Sep. 30, 2016 | |
Sale of Common Stock/Cash Dividends [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, three individuals who were shareholders of Shenzhen Wonhe at the time, and three 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 were 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, and no shares of the Company’s common stock were traded on the OTCQB from January 1, 2015 to April 22, 2015, the Company believes that the sales price of $0.77 was more representative of the fair value per share than the ORCQB price of $3.07. 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 and directors of the Company. On April 19, 2016 the Company sold a total of 15,000,000 shares of common stock to two investors in a private offering. Qing Tong, a member of the Registrant’s board of directors, purchased 3,000,000 shares. The remaining 12,000,000 shares were purchased by an unaffiliated entity. The purchase price for the shares was 0.52 Renminbi (approx. $.08) per share, or a total of 7,800,000 Renminbi (approx. $1,200,000). The shares were sold to investors who are accredited investors and were purchasing for their own accounts. The offering, therefore, 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 were residents of the People’s Republic of China. |
Cash Dividends
Cash Dividends | 9 Months Ended |
Sep. 30, 2016 | |
Sale of Common Stock/Cash Dividends [Abstract] | |
CASH DIVIDENDS | 9. CASH DIVIDENDS On September 30, 2016, the Board of Directors of Wonhe Multimedia Commerce Ltd., in which Wonhe High-Tech indirectly owns a 53.3% interest, declared a cash dividend of AUD $0.004857 per share, for a total dividend of AUD$637,190 (approximately USD$486,498). The dividend payment was made to the shareholders of Wonhe Multimedia Commerce Ltd. subsequent to the third quarter. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Taxes [Abstract] | |
INCOME TAXES | 10. 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 three and nine months ended September 30, 2016 and 2015: For the Three Months Ended For the Nine Months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Current $ 883,926 $ 311,426 $ 1,698,921 $ 1,051,267 Deferred - - - - $ 883,926 $ 311,426 $ 1,698,921 $ 1,051,267 The following is a reconciliation of the statutory rate with the effective income tax rate for the three and nine months ended September 30, 2016 and 2015. For the Three Months Ended September 30, 2016 For the Nine Months Ended September 30, 2016 Tax Rate Tax Rate (Unaudited) (Unaudited) (Unaudited) (Unaudited) Tax at PRC statutory rate $ 853,330 25.0 % $ 2,430,682 25.0 % VIE tax holiday (814,995 ) (8.4 )% Non-deductible allowance 30,596 0.90 % 83,234 0.9 % Effective tax rate $ 883,926 25.9 % $ 1,698,921 17.5 % For the Three Months Ended For the Nine Months Ended Tax Rate Tax Rate (Unaudited) (Unaudited) (Unaudited) (Unaudited) Tax at PRC statutory rate $ (1,266,574 ) 25.0 % $ 208,968 25.0 % Non-deductible stock 1,887,417 (37.3 )% 1,887,417 225.8 % VIE tax holiday (309,417 ) 6.1 % (1,045,118 ) (125.0 )% Effective tax rate $ (311,426 ) -6.2 % $ 1,051,267 125.8 % The following presents the aggregate dollar and per share effects of the Company’s subsidiaries/VIE tax holidays: Three Months Ended September 30, Nine Months Ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Aggregate dollar effect of tax holiday $ 439,340 $ 309,417 $ 1,254,335 $ 1,045,118 Per share effect, basic and diluted $ 0.01 $ 0.01 $ 0.01 $ 0.02 The Company’s PRC tax filings for the tax years ended December 31, 2015 and 2014 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” 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, 2015, 2014 and 2013 remain open to examination by the IRS. All of the Company’s operations are conducted in the PRC. At September 30, 2016, the Company’s unremitted foreign earnings of its PRC subsidiaries totaled approximately $19.2 million and the Company held approximately $46.2 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 | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
CONTINGENCIES | 11. CONTINGENCIES As disclosed in Note 10, 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, 2015, 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 | 9 Months Ended |
Sep. 30, 2016 | |
Concentration of Credit Risk [Abstract] | |
CONCENTRATION OF CREDIT RISK | 12. 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 customers accounted for approximately 10%, 41% and 10% (total of 61%, i.e. $7,495,572) of total sales for the three months ended September 30, 2016 and another three customers accounted for approximately 14%, 25% and 14% (total of 52%, i.e. $4,148,605) of total sales for the three months ended September 30, 2015. One customer accounted for approximately 38% of total sales for the nine months ended September 30, 2016 and no customer accounted for over 10% of total sales for the nine months ended September 30, 2015. Four customers accounted for approximately 14%, 15%, 51% and 15%, (total of 95%, i.e. $4,837,273) of accounts receivable as of September 30, 2016. Four customers accounted for approximately 27%, 19%, 15% and 27% (total of 89%, i.e. $2,517,850) of accounts receivable as of December 31, 2015. |
Contributions to Multi-Employer
Contributions to Multi-Employer Welfare Programs | 9 Months Ended |
Sep. 30, 2016 | |
Contributions to Multi-Employer Welfare Programs [Abstract] | |
CONTRIBUTIONS TO MULTI-EMPLOYER WELFARE PROGRAMS | 13. 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 three and nine months ended September 30, 2016 and 2015 were as follow: For the three months ended For the nine months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Total contributions $ 19,357 $ 6,676 $ 28,349 $ 21,188 |
Investment in Project
Investment in Project | 9 Months Ended |
Sep. 30, 2016 | |
Investment in Project [Abstract] | |
INVESTMENT IN PROJECT | 14. INVESTMENT IN PROJECT 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 $57.42 million), including 226,010,000 RMB (USD $33.88 million) in cash and 118,980,000 RMB (USD $17.84 million) in routers and other equipment. Shenzhen Wonhe will also contribute the network that it developed in the Tongzhou District of Beijing as a pilot project, at a cost of 38,000,000 RMB (USD $5.70 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. As of September 30, 2016, USD$23,360,531 had been contributed to the project. Prior to signing the official investment contract, the Company invested RMB38,000,000 (USD $5.70 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. As of September 30, 2016, total payments for the pilot project were included in “investment in project” in the consolidated balance sheet. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | 15. SUBSEQUENT EVENT On October 31 2016, Wonhe Multimedia Commerce Ltd., the Company’s 53.3%-owned Australian subsidiary, paid the dividend of AUD $637,190 (approximately USD$486,000) declared on September 30, 2016. On November 1, 2016, the Company renewed the employment agreements with Nanfang Tong and with Qing Tong for a three year period that expires on October 31, 2019. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
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 three and nine months ended September 30, 2016 and 2015 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. The unaudited interim consolidated financial statements of the Company as of September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements. Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. The interim consolidated financial information should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Form 10-K filed with the SEC. The results of operations for the three and nine months ended September 30, 2016 and 2015 are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2016. 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: September 30, December 31, (unaudited) Balance sheet items, except for stockholders’ equity, as of periods end 0.1499 0.1540 Three Months Ended Nine Months Ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Amounts included in the statements of income and cash flows for the periods 0.1500 0.1593 0.1520 0.1617 The exchange rates used to translate amounts in AUD into US dollars for the purposes of preparing the consolidated financial statements are as follows: September 30, December 31, (unaudited) Balance sheet items, except for stockholders’ equity, as of periods end 0.7635 0.7288 Three Months Ended Nine Months Ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Amounts included in the statements of income and cash flows for the periods 0.7579 0.7773 0.7420 0.7819 For the three and nine months ended September 30, 2016 and 2015, foreign currency translation adjustments of $209,449 and $(2,354,088) respectively, $(1,396,779) and $(2,191,963), 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. |
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 Wi-Fi 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. |
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 September 30, 2016 and December 31, 2015, none of the Company’s assets and liabilities was 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 $112,514 and $134,316, respectively, $341,975 and $232,056, respectively, for the three and nine months ended September 30, 2016 and 2015. |
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 $225,067 and $48,770, respectively, and $378,585 and $104,155, respectively, for the three and nine months ended September 30, 2016 and 2015. |
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 September 30, 2016 and December 31, 2015, the Company considered all accounts receivable collectable and an allowance for doubtful accounts was not necessary. For the three and nine months ended September 30, 2016 and 2015, the Company did not write off any accounts receivable as bad debts. |
Fixed Assets and Depreciation | Fixed Assets and Depreciation F ixed 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 September 30, 2016, $2,123,887 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 September 30, 2016 and December 31, 2015, 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 three and nine months ended September 30, 2016 and 2015. 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 September 30, 2016 and December 31, 2015. As of June 30, 2016, the eligibility for the 50% tax exemption had expired. From July 1, 2016, the Company will be required to pay 25% Enterprise Income Tax in full without any tax exemption. For the three and nine months ended September 30, 2016 and 2015, the Company offset the income tax provision of $188,707 and $309,417, respectively, and $1,003,702 and $1,045,118, respectively, leaving a balance of prepaid income taxes of $146,296 on September 30, 2016. |
Noncontrolling interests | Noncontrolling Interests The noncontrolling interest in Wonhe Multimedia is not attributable, directly or indirectly, to the Company. The noncontrolling interest 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) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of exchange rates used to translate amounts in RMB into US dollars | September 30, December 31, (unaudited) Balance sheet items, except for stockholders’ equity, as of periods end 0.1499 0.1540 Three Months Ended Nine Months Ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Amounts included in the statements of income and cash flows for the periods 0.1500 0.1593 0.1520 0.1617 The exchange rates used to translate amounts in AUD into US dollars for the purposes of preparing the consolidated financial statements are as follows: September 30, December 31, (unaudited) Balance sheet items, except for stockholders’ equity, as of periods end 0.7635 0.7288 Three Months Ended Nine Months Ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Amounts included in the statements of income and cash flows for the periods 0.7579 0.7773 0.7420 0.7819 |
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) | 9 Months Ended |
Sep. 30, 2016 | |
Fixed Assets [Abstract] | |
Summary of components of fixed assets | September 30, 2016 December 31, 2015 (Unaudited) Office equipment $ 221,588 $ 211,897 Motor vehicles 644,172 661,703 Production equipment - 1,287,502 865,760 2,161,102 Less: accumulated depreciation (390,837 ) (416,521 ) Fixed assets, net $ 474,923 $ 1,744,581 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Intangible Assets [Abstract] | |
Summary of intangible assets | September 30, December 31, 2015 (Unaudited) Software $ 51,692 $ 45,432 Less: accumulated amortization (40,448 ) (28,683 ) Intangible assets, net $ 11,244 $ 16,749 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Taxes [Abstract] | |
Summary of provision for (benefit from) income taxes | For the Three Months Ended For the Nine Months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Current $ 883,926 $ 311,426 $ 1,698,921 $ 1,051,267 Deferred - - - - $ 883,926 $ 311,426 $ 1,698,921 $ 1,051,267 |
Summary of reconciliation of the statutory rate with the effective income tax rate | For the Three Months Ended September 30, 2016 For the Nine Months Ended September 30, 2016 Tax Rate Tax Rate (Unaudited) (Unaudited) (Unaudited) (Unaudited) Tax at PRC statutory rate $ 853,330 25.0 % $ 2,430,682 25.0 % VIE tax holiday (814,995 ) (8.4 )% Non-deductible allowance 30,596 0.90 % 83,234 0.9 % Effective tax rate $ 883,926 25.9 % $ 1,698,921 17.5 % For the Three Months Ended For the Nine Months Ended Tax Rate Tax Rate (Unaudited) (Unaudited) (Unaudited) (Unaudited) Tax at PRC statutory rate $ (1,266,574 ) 25.0 % $ 208,968 25.0 % Non-deductible stock 1,887,417 (37.3 )% 1,887,417 225.8 % VIE tax holiday (309,417 ) 6.1 % (1,045,118 ) (125.0 )% Effective tax rate $ (311,426 ) -6.2 % $ 1,051,267 125.8 % |
Summary of aggregate dollar and per share effects of the Company's VIE tax holidays | Three Months Ended September 30, Nine Months Ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Aggregate dollar effect of tax holiday $ 439,340 $ 309,417 $ 1,254,335 $ 1,045,118 Per share effect, basic and diluted $ 0.01 $ 0.01 $ 0.01 $ 0.02 |
Contributions to Multi-Employ27
Contributions to Multi-Employer Welfare Programs (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 | For the three months ended For the nine months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Total contributions $ 19,357 $ 6,676 $ 28,349 $ 21,188 |
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, 2016USD ($) | Sep. 30, 2015USD ($)$ / sharesshares | Apr. 19, 2016$ / shares | Apr. 19, 2016¥ / shares | 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 | $ 0.08 | ¥ 0.52 | $ 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 | $ (1,569) | ||||||||||||||||
Proceeds from sale of subsidiary's stock | 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) | HKD 10,000 | |||||||||||||||
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 Accoun29
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
AUD [Member] | |||||
Summary of exchange rates used to translate amounts in RMB into US dollars | |||||
Balance sheet items, except for stockholders' equity, as of periods end | 0.7635 | 0.7635 | 0.7288 | ||
Amounts included in the statements of income and cash flows for the periods | 0.7579 | 0.7773 | 0.7420 | 0.7819 | |
RMB [Member] | |||||
Summary of exchange rates used to translate amounts in RMB into US dollars | |||||
Balance sheet items, except for stockholders' equity, as of periods end | 0.1540 | 0.1540 | 0.1499 | ||
Amounts included in the statements of income and cash flows for the periods | 0.1500 | 0.1593 | 0.1520 | 0.1617 |
Summary of Significant Accoun30
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 | P5Y |
Motor vehicles [Member] | |
Schedule of estimated useful lives for fixed assets | |
Estimated useful lives for fixed assets | P5Y |
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 Accoun31
Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2016CNY (¥) | |
Summary of Significant Accounting Policies (Textual) | ||||||
Foreign currency translation adjustments | $ (2,043,425) | $ 6,368 | $ (1,606,228) | $ 162,125 | ||
Advertising costs | 114,803 | 97,980 | 229,461 | 97,740 | ||
Amount transfer from retained earnings to statuary reserve | 2,123,887 | 2,123,887 | ||||
Research and development costs | $ 225,067 | 48,770 | $ 378,585 | 104,155 | ||
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% | 50.00% | ||||
Enterprise income tax rate by income tax laws of PRC | 25.00% | 25.00% | ||||
Percentage of minimum remaining reserve balance of Registered Capital, description | Not less than 25% of the registered capital. | |||||
Prepaid income taxes | $ 2,600,000 | $ 2,600,000 | ¥ 16,107,000 | |||
Prepaid taxes | 146,296 | 146,296 | $ 1,164,478 | |||
Company offset income tax provision | $ 188,707 | $ 309,417 | $ 1,003,702 | $ 1,045,118 | ||
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 ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Summary of components of fixed assets | ||
Fixed assets | $ 865,760 | $ 2,161,102 |
Less: accumulated depreciation | (390,837) | (416,521) |
Fixed assets, net | 474,923 | 1,744,581 |
Office equipment [Member] | ||
Summary of components of fixed assets | ||
Fixed assets | 221,588 | 211,897 |
Motor vehicles [Member] | ||
Summary of components of fixed assets | ||
Fixed assets | 644,172 | 661,703 |
Production equipment [Member] | ||
Summary of components of fixed assets | ||
Fixed assets | $ 1,287,502 |
Fixed Assets (Details Textual)
Fixed Assets (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fixed Assets (Textual) | ||||
Depreciation expense | $ 28,690 | $ 63,453 | $ 175,440 | $ 106,404 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Summary of intangible assets | ||
Software | $ 51,692 | $ 45,432 |
Less: accumulated amortization | (40,448) | (28,683) |
Intangible assets, net | $ 11,244 | $ 16,749 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Intangible Assets (Textual) | ||||
Amortization expense | $ 5,130 | $ 8,894 | $ 1,710 | $ 3,938 |
Commitments (Details)
Commitments (Details) | Nov. 01, 2016 | Sep. 30, 2013USD ($) | May 31, 2016 | May 31, 2015USD ($) | Apr. 30, 2015USD ($)Routers | Apr. 30, 2015CNY (¥)Routers | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016CNY (¥) | Sep. 30, 2015USD ($) | Jul. 31, 2015 | Apr. 30, 2015CNY (¥) |
Commitments (Textual) | ||||||||||||||
Lease expiration date | May 31, 2017 | |||||||||||||
Rent expense | $ 36,789 | $ 44,671 | $ 111,819 | $ 116,387 | ||||||||||
Gross annual revenues | $ 5,145,000 | 13,403,000 | ||||||||||||
Ownership Percentage | 25.00% | |||||||||||||
Laboratory lease fee | $ 141,240 | $ 184,892 | ||||||||||||
Laboratory lease term | 2 years | 2 years | ||||||||||||
Description of laboratory lease, expiration date | The lease has a two-year term, which expires on May 5, 2018. | The lease has a two-year term, which expires on May 5, 2018. | ||||||||||||
Future commitments | $ 153,000 | $ 153,000 | ||||||||||||
Subsequent Event [Member] | ||||||||||||||
Commitments (Textual) | ||||||||||||||
Lease expiration date | Oct. 31, 2019 | |||||||||||||
Shenzhen Yunlutong Technology Co., Ltd [Member] | ||||||||||||||
Commitments (Textual) | ||||||||||||||
Number of commercial routers purchase | Routers | 662,000 | 662,000 | ||||||||||||
Shenzhen Yunlutong Technology Co., Ltd [Member] | First Year [Member] | ||||||||||||||
Commitments (Textual) | ||||||||||||||
Number of commercial routers purchase | Routers | 200,000 | 200,000 | ||||||||||||
Shenzhen Yunlutong Technology Co., Ltd [Member] | Second Year [Member] | ||||||||||||||
Commitments (Textual) | ||||||||||||||
Number of commercial routers purchase | Routers | 220,000 | 220,000 | ||||||||||||
Shenzhen Yunlutong Technology Co., Ltd [Member] | Third Year [Member] | ||||||||||||||
Commitments (Textual) | ||||||||||||||
Number of commercial routers purchase | Routers | 242,000 | 242,000 | ||||||||||||
Lease Agreement [Member] | ||||||||||||||
Commitments (Textual) | ||||||||||||||
Lease expiration date | Aug. 31, 2014 | |||||||||||||
Monthly rental from unrelated parties | $ 9,075 | |||||||||||||
New Lease Agreement [Member] | ||||||||||||||
Commitments (Textual) | ||||||||||||||
Lease expiration date | May 31, 2016 | |||||||||||||
Monthly rental from unrelated parties | $ 11,360 | |||||||||||||
Term of agreement | 1 year | |||||||||||||
Employment Agreements [Member] | Nanfang Tong [Member] | ||||||||||||||
Commitments (Textual) | ||||||||||||||
Monthly salary | $ 1,950 | ¥ 13,000 | ||||||||||||
Employment agreemnet, expiration date | Oct. 31, 2016 | Oct. 31, 2016 | ||||||||||||
Employment Agreements [Member] | Qing Tong [Member] | ||||||||||||||
Commitments (Textual) | ||||||||||||||
Monthly salary | $ 2,250 | ¥ 15,000 | ||||||||||||
Employment agreemnet, expiration date | Oct. 31, 2016 | Oct. 31, 2016 | ||||||||||||
Strategic Cooperation Agreement [Member] | Shenzhen Yunlutong Technology Co., Ltd [Member] | ||||||||||||||
Commitments (Textual) | ||||||||||||||
Ownership percentage | 4.87% | 4.87% | ||||||||||||
Term of agreement | 3 years | 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 ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Related Party Transactions (Textual) | ||
Loan from stockholder | $ 408,996 | $ 335,655 |
Sale of Common Stock (Details)
Sale of Common Stock (Details) | 1 Months Ended | 9 Months Ended | |||||||
Apr. 19, 2016USD ($)Directors$ / sharesshares | Apr. 19, 2016CNY (¥)Directorsshares | Apr. 30, 2015USD ($)IndividualsCompaniesShareholders$ / sharesshares | Apr. 30, 2015CNY (¥)shares | Sep. 30, 2016shares | Apr. 19, 2016¥ / shares | Apr. 30, 2015IndividualsCompaniesShareholders¥ / shares | May 30, 2012$ / shares | May 30, 2012¥ / shares | |
Sale Of Common Stock (Textual) | |||||||||
Sale of common stock shares | 15,000,000 | 15,000,000 | 20,130,000 | 20,130,000 | 4,600,000 | ||||
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, and no shares of the Company's common stock were traded on the OTCQB from January 1, 2015 to April 22, 2015, the Company believes that the sales price of $0.77 was more representative of the fair value per share than the ORCQB price of $3.07. 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 and directors of the Company. | ||||||||
Percentage of sale of stock | 22.70% | ||||||||
Common stock purchase price | (per share) | $ 0.08 | $ 0.77 | ¥ 0.52 | ¥ 4.72 | $ 0.16 | ¥ 1 | |||
Total common stock value | $ 1,200,000 | ¥ 7,800,000 | $ 15,196,298 | ¥ 93,000,600 | |||||
Number of unrelated individuals | Individuals | 21 | 21 | |||||||
Number of unrelated companies | Companies | 3 | 3 | |||||||
Number of shareholders | Shareholders | 3 | 3 | |||||||
Number of directors | Directors | 2 | 2 | |||||||
Unaffiliated Entity [Member] | |||||||||
Sale Of Common Stock (Textual) | |||||||||
Sale of common stock shares | 12,000,000 | 12,000,000 | |||||||
Board of Directors [Member] | |||||||||
Sale Of Common Stock (Textual) | |||||||||
Sale of common stock shares | 3,000,000 | 3,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Provision for (benefit from) income taxes | ||||
Current | $ 883,926 | $ 311,426 | $ 1,698,921 | $ 1,051,267 |
Deferred | ||||
Total | $ 883,926 | $ 311,426 | $ 1,698,921 | $ 1,051,267 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Summary of reconciliation of the statutory rate with the effective income tax rate | ||||
Tax at PRC statutory rate | 25.00% | 25.00% | 25.00% | 25.00% |
VIE tax holiday | (37.30%) | (8.40%) | 225.80% | |
Non-deductible allowance | 0.90% | 6.10% | 0.90% | (125.00%) |
Effective tax rate | 25.90% | (6.20%) | 17.50% | 125.80% |
Tax at PRC statutory rate | $ 853,330 | $ (1,266,574) | $ 2,430,682 | $ 208,968 |
VIE tax holiday | 1,887,417 | (814,995) | 1,887,417 | |
Non-deductible allowance | 30,596 | (309,417) | 83,234 | (1,045,118) |
Effective tax rate | $ 883,926 | $ (311,426) | $ 1,698,921 | $ 1,051,267 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Summary of aggregate dollar and per share effects of the Company's VIE tax holidays | ||||
Aggregate dollar effect of tax holiday | $ 439,340 | $ 309,417 | $ 1,254,335 | $ 1,045,118 |
Per share effect, basic and diluted | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.02 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) $ in Millions | Sep. 30, 2016USD ($) |
Income Taxes (Textual) | |
Unremitted foreign earnings of PRC subsidiaries | $ 19.2 |
Cash and cash equivalents in PRC | $ 46.2 |
Contingencies (Details)
Contingencies (Details) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Contingencies (Textual) | |
Civil penalties of each foreign bank account | $ 10,000 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2015USD ($)Customers | Sep. 30, 2016USD ($)Customers | Sep. 30, 2015USD ($)Customers | Sep. 30, 2016USD ($)Customers | Sep. 30, 2015USD ($)Customers | Sep. 30, 2016AUD | |
Concentration of Credit Risk (Textual) | ||||||
Concentration risk, Percentage | 61.00% | 52.00% | 38.00% | 10.00% | ||
Number of major customer accounted for revenue | 3 | 3 | 1 | 0 | ||
Bank account in Australia | $ 4,148,605 | $ 4,148,605 | AUD 7,495,572 | |||
Accounts receivable [Member] | ||||||
Concentration of Credit Risk (Textual) | ||||||
Concentration risk, Percentage | 89.00% | 95.00% | ||||
Number of major customer accounted for revenue | 4 | 4 | ||||
Bank account in Australia | $ | $ 2,517,850 | $ 4,837,273 | $ 4,837,273 | |||
Customer [Member] | ||||||
Concentration of Credit Risk (Textual) | ||||||
Concentration risk, Percentage | 10.00% | 14.00% | ||||
Customer [Member] | Accounts receivable [Member] | ||||||
Concentration of Credit Risk (Textual) | ||||||
Concentration risk, Percentage | 27.00% | 14.00% | ||||
Customer One [Member] | ||||||
Concentration of Credit Risk (Textual) | ||||||
Concentration risk, Percentage | 10.00% | 14.00% | ||||
Customer One [Member] | Accounts receivable [Member] | ||||||
Concentration of Credit Risk (Textual) | ||||||
Concentration risk, Percentage | 19.00% | 15.00% | ||||
Customer Two [Member] | ||||||
Concentration of Credit Risk (Textual) | ||||||
Concentration risk, Percentage | 41.00% | 25.00% | ||||
Customer Two [Member] | Accounts receivable [Member] | ||||||
Concentration of Credit Risk (Textual) | ||||||
Concentration risk, Percentage | 15.00% | 51.00% | ||||
Customer Three [Member] | Accounts receivable [Member] | ||||||
Concentration of Credit Risk (Textual) | ||||||
Concentration risk, Percentage | 27.00% | 15.00% |
Contributions to Multi-Employ45
Contributions to Multi-Employer Welfare Programs (Details) | 9 Months Ended | |
Sep. 30, 2016 | ||
Pension [Member] | ||
Multiemployer Plans [Line Items] | ||
Regulation | Shenzhen Special Economic Zone SocialRetirement 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-Employ46
Contributions to Multi-Employer Welfare Programs (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Contributions to Multi-Employer Welfare Programs [Abstract] | ||||
Total contributions | $ 19,357 | $ 6,676 | $ 28,349 | $ 21,188 |
Investment in Project (Details)
Investment in Project (Details) - Sep. 30, 2016 | USD ($) | CNY (¥) |
Investment In Project (Textual) | ||
Investment face amount | $ 33,880,000 | ¥ 226,010,000 |
Investments cost | 5,700,000 | 38,000,000 |
Shenzhen Wonhe [Member] | ||
Investment In Project (Textual) | ||
Investment face amount | 57,420,000 | 382,990,000 |
Investments cost | 5,700,000 | 38,000,000 |
Guangdong Kesheng [Member] | ||
Investment In Project (Textual) | ||
Investments cost | $ | 23,360,531 | |
2016 | Shenzhen Wonhe [Member] | ||
Investment In Project (Textual) | ||
Investments cost | 104,498,990 | |
2017 | Shenzhen Wonhe [Member] | ||
Investment In Project (Textual) | ||
Investments cost | 84,636,558 | |
2018 | Shenzhen Wonhe [Member] | ||
Investment In Project (Textual) | ||
Investments cost | 36,871,412 | |
Routers and Other Equipment [Member] | ||
Investment In Project (Textual) | ||
Investment face amount | $ 17,840,000 | ¥ 118,980,000 |
Subsequent Event (Details)
Subsequent Event (Details) | Nov. 01, 2016 | Oct. 30, 2016USD ($) | Oct. 30, 2016AUD | May 31, 2016 | Jul. 31, 2015 |
Subsequent Event [Line Items] | |||||
Lease expiration date | May 31, 2017 | ||||
Ownership interest, Percentage | 25.00% | ||||
Wonhe Multimedia Commerce Ltd [Member] | |||||
Subsequent Event [Line Items] | |||||
Ownership interest, Percentage | 60.00% | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Lease expiration date | Oct. 31, 2019 | ||||
Subsequent Event [Member] | Wonhe Multimedia Commerce Ltd [Member] | |||||
Subsequent Event [Line Items] | |||||
Ownership interest, Percentage | 53.30% | 53.30% | |||
Dividend declared | $ 486,000 | AUD 637,190 |