NOTE 12 - BUSINESS SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2013 |
Segment Reporting [Abstract] | ' |
NOTE 12 - BUSINESS SEGMENT REPORTING | ' |
NOTE 12 - BUSINESS SEGMENT REPORTING |
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Our operating businesses are organized based on the nature of markets and customers. Effects of transactions between related companies are eliminated and consist primarily of inter-company transactions and transfers of cash or cash equivalents from corporate to support each business segment’s payroll, inventory sourcing and overall operations when each segment has working capital requirements. |
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A description of our operating segments as of September 30, 2013 and December 31, 2012, can be found below. |
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E-COMMERCE PLATFORM (ARKI BEIJING, AMERICA PINE BEIJING, ARKI FUXIN, ARKI NETWORK SERVICE) |
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The website provides an online marketing and retail platform for a wide variety of manufacturers and distributors to promote and sell their products and services directly to consumers in the PRC. The website also provides access to certain Western products that are generally unavailable in the PRC such as handbags and eyewear made by U.S. companies and food and beverage products from Spain, Germany, and France. |
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FOOD PRODUCT DISTRIBUTION (BEITUN) |
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Beitun is principally engaged in the wholesale distribution and import/export of various food and meat products to businesses located throughout the PRC. All products are sold in the PRC and are considered finished goods. |
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| | For the nine months ended September 30, 2013 |
| | | E-Commerce | | | | Food Distribution | | | | Consolidated | |
Net revenues | | $ | 11,488 | | | $ | 4,558,040 | | | $ | 4,569,528 | |
Cost of sales | | $ | — | | | $ | 4,506,053 | | | $ | 4,506,053 | |
Gross profit | | $ | 11,488 | | | $ | 51,987 | | | $ | 63,475 | |
Operating expenses: | | | | | | | | | | | | |
Selling expenses | | $ | 58,133 | | | $ | 34,362 | | | $ | 92,495 | |
General and administrative | | $ | 755,058 | | | $ | 14,069 | | | $ | 769,127 | |
Total operating expenses | | $ | 813,191 | | | $ | 48,431 | | | $ | 861,622 | |
Income (loss) from operations | | $ | (801,703 | ) | | $ | 3,556 | | | $ | (798,147 | ) |
Other income | | $ | 277,259 | | | $ | — | | | $ | 277,259 | |
Other expense | | $ | (1,621 | ) | | $ | — | | | $ | (1,621 | ) |
Income (loss) before taxes | | $ | (526,065 | ) | | $ | 3,556 | | | $ | (522,509 | ) |
Provision for income taxes | | $ | — | | | $ | 974 | | | $ | 974 | |
Net income (loss) | | $ | (526,065 | ) | | $ | 2,582 | | | $ | (523,483 | ) |
Net income attributable to non controlling interest | | $ | — | | | $ | 1,264 | | | $ | 1,264 | |
Net income (loss) attributable to Consumer Capital Group, Inc. | | $ | (526,065 | ) | | $ | 1,318 | | | $ | (524,747 | ) |
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Net income (loss) | | $ | (526,065 | ) | | $ | 2,582 | | | $ | (523,483 | ) |
Other comprehensive income (loss), net of tax | | | | | | | | | | | | |
Foreign currency translation adjustment | | $ | (5,027 | ) | | $ | 1,017 | | | $ | (4,010 | ) |
Comprehensive income (loss), net of tax | | $ | (531,092 | ) | | $ | 3,599 | | | $ | (527,493 | ) |
Less: Comprehensive income attributable to non-controlling interest | | $ | — | | | $ | 1,762 | | | $ | 1,762 | |
Comprehensive income (loss) attributable to Consumer Capital Group, Inc. | | $ | (531,092 | ) | | $ | 1,837 | | | $ | (529,255 | ) |
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| | For the nine months ended September 30, 2012 |
| | | E-Commerce | | | | Food Distribution | | | | Consolidated | |
Net revenues | | $ | 1,157,017 | | | $ | 3,894,207 | | | $ | 5,051,224 | |
Cost of sales | | $ | — | | | $ | 3,842,041 | | | $ | 3,842,041 | |
Gross profit | | $ | 1,157,017 | | | $ | 52,166 | | | $ | 1,209,183 | |
Operating expenses: | | | | | | | | | | | | |
Selling expenses | | $ | 915,066 | | | $ | 38,565 | | | $ | 953,631 | |
General and administrative | | $ | 1,212,741 | | | $ | 22,678 | | | $ | 1,235,419 | |
Total operating expenses | | $ | 2,127,807 | | | $ | 61,243 | | | $ | 2,189,050 | |
Loss from operations | | $ | (970,790 | ) | | $ | (9,077 | ) | | $ | (979,867 | ) |
Other income | | $ | 50,740 | | | $ | — | | | $ | 50,740 | |
Loss before taxes | | $ | (920,050 | ) | | $ | (9,077 | ) | | $ | (929,127 | ) |
Provision for income taxes | | $ | — | | | $ | 524 | | | $ | 524 | |
Net loss | | $ | (920,050 | ) | | $ | (9,601 | ) | | $ | (929,651 | ) |
Net loss attributable to non controlling interest | | $ | — | | | $ | (4,704 | ) | | $ | (4,704 | ) |
Net loss attributable to Consumer Capital Group, Inc. | | $ | (920,050 | ) | | $ | (4,897 | ) | | $ | (924,947 | ) |
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Net loss | | $ | (920,050 | ) | | $ | (9,601 | ) | | $ | (929,651 | ) |
Other comprehensive loss, net of tax | | | | | | | | | | | | |
Foreign currency translation adjustment | | $ | (11,768 | ) | | $ | (4 | ) | | $ | (11,772 | ) |
Comprehensive loss, net of tax | | $ | (931,818 | ) | | $ | (9,605 | ) | | $ | (941,423 | ) |
Less: Comprehensive loss attributable to non-controlling interest | | $ | — | | | $ | (4,706 | ) | | $ | (4,706 | ) |
Comprehensive loss attributable to Consumer Capital Group, Inc. | | $ | (931,818 | ) | | $ | (4,899 | ) | | $ | (936,717 | ) |
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| | For the three months ended September 30, 2013 |
| | | E-Commerce | | | | Food Distribution | | | | Consolidated | |
Net revenues | | $ | 9,260 | | | $ | 1,418,835 | | | $ | 1,428,095 | |
Cost of sales | | $ | — | | | $ | 1,401,248 | | | $ | 1,401,248 | |
Gross profit | | $ | 9,260 | | | $ | 17,587 | | | $ | 26,847 | |
Operating expenses: | | | | | | | | | | | | |
Selling expenses | | $ | 17,487 | | | $ | 12,986 | | | $ | 30,473 | |
General and administrative | | $ | 218,568 | | | $ | 4,067 | | | $ | 222,635 | |
Total operating expenses | | $ | 236,055 | | | $ | 17,053 | | | $ | 253,108 | |
Income (loss) from operations | | $ | (226,795 | ) | | $ | 534 | | | $ | (226,261 | ) |
Other income | | $ | 55,867 | | | $ | — | | | $ | 55,867 | |
Other expense | | $ | (5 | ) | | $ | — | | | $ | (5 | ) |
Income (loss) before taxes | | $ | (170,933 | ) | | $ | 534 | | | $ | (170,399 | ) |
Provision for income taxes | | $ | — | | | $ | 133 | | | $ | 133 | |
Net income (loss) | | $ | (170,933 | ) | | $ | 401 | | | $ | (170,532 | ) |
Net income attributable to non controlling interest | | $ | — | | | $ | 195 | | | $ | 195 | |
Net income (loss) attributable to Consumer Capital Group, Inc. | | $ | (170,933 | ) | | $ | 206 | | | $ | (170,727 | ) |
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Net income (loss) | | $ | (170,933 | ) | | $ | 401 | | | $ | (170,532 | ) |
Other comprehensive income (loss), net of tax | | | | | | | | | | | | |
Foreign currency translation adjustment | | $ | (3,079 | ) | | $ | 174 | | | $ | (2,905 | ) |
Comprehensive income (loss), net of tax | | $ | (174,012 | ) | | $ | 575 | | | $ | (173,437 | ) |
Less: Comprehensive income attributable to non-controlling interest | | $ | — | | | $ | 280 | | | $ | 280 | |
Comprehensive income (loss) attributable to Consumer Capital Group, Inc. | | $ | (174,012 | ) | | $ | 295 | | | $ | (173,717 | ) |
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| | For the three months ended September 30, 2012 |
| | | E-Commerce | | | | Food Distribution | | | | Consolidated | |
Net revenues | | $ | 13,671 | | | $ | 2,188,939 | | | $ | 2,202,610 | |
Cost of sales | | $ | — | | | $ | 2,166,039 | | | $ | 2,166,039 | |
Gross profit | | $ | 13,671 | | | $ | 22,900 | | | $ | 36,571 | |
Operating expenses: | | | | | | | | | | | | |
Selling expenses | | $ | 47,833 | | | $ | 11,751 | | | $ | 59,584 | |
General and administrative | | $ | 367,063 | | | $ | 20,577 | | | $ | 387,640 | |
Total operating expenses | | $ | 414,896 | | | $ | 32,328 | | | $ | 447,224 | |
Loss from operations | | $ | (401,225 | ) | | $ | (9,428 | ) | | $ | (410,653 | ) |
Other expense | | $ | (64 | ) | | $ | — | | | $ | (64 | ) |
Loss before taxes | | $ | (401,289 | ) | | $ | (9,428 | ) | | $ | (410,717 | ) |
Provision for income taxes | | $ | — | | | $ | 365 | | | $ | 365 | |
Net loss | | $ | (401,289 | ) | | $ | (9,793 | ) | | $ | (411,082 | ) |
Net loss attributable to non controlling interest | | $ | — | | | $ | (4,798 | ) | | $ | (4,798 | ) |
Net loss attributable to Consumer Capital Group, Inc. | | $ | (401,289 | ) | | $ | (4,995 | ) | | $ | (406,284 | ) |
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Net loss | | $ | (401,289 | ) | | $ | (9,793 | ) | | $ | (411,082 | ) |
Other comprehensive loss, net of tax | | | | | | | | | | | | |
Foreign currency translation adjustment | | $ | (2,929 | ) | | $ | 465 | | | $ | (2,464 | ) |
Comprehensive loss, net of tax | | $ | (404,218 | ) | | $ | (9,328 | ) | | $ | (413,546 | ) |
Less: Comprehensive loss attributable to non-controlling interest | | $ | — | | | $ | (4,570 | ) | | $ | (4,570 | ) |
Comprehensive loss attributable to Consumer Capital Group, Inc. | | $ | (404,218 | ) | | $ | (4,758 | ) | | $ | (408,976 | ) |
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| | As of September 30, 2013 |
| | | E-Commerce | | | | Food Distribution | | | | Consolidated | |
Cash | | $ | 127,958 | | | $ | 159,668 | | | $ | 287,626 | |
Accounts receivable | | | — | | | | 755,384 | | | | 755,384 | |
Inventories | | | — | | | | 838,292 | | | | 838,292 | |
Advance to suppliers | | | — | | | | 273,779 | | | | 273,779 | |
Prepaid expenses | | | 66,788 | | | | 30,759 | | | | 97,547 | |
Other receivables | | | 5,786 | | | | 8,170 | | | | 13,956 | |
Total current assets | | | 200,532 | | | | 2,066,052 | | | | 2,266,584 | |
Property and equipment, net | | | 31,670 | | | | 3,185 | | | | 34,855 | |
Other assets | | | 98,296 | | | | 33,558 | | | | 131,854 | |
Total noncurrent assets | | | 129,966 | | | | 36,743 | | | | 166,709 | |
Total assets | | $ | 330,498 | | | $ | 2,102,795 | | | $ | 2,433,293 | |
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| | As of December 31, 2012 |
| | | E-Commerce | | | | Food Distribution | | | | Consolidated | |
Cash | | $ | 53,964 | | | $ | 120,283 | | | $ | 174,247 | |
Accounts receivable | | | — | | | | 793,490 | | | | 793,490 | |
Inventories | | | — | | | | 679,403 | | | | 679,403 | |
Advance to suppliers | | | — | | | | 445,798 | | | | 445,798 | |
Prepaid expenses | | | 132,238 | | | | 10,019 | | | | 142,257 | |
Other receivables | | | — | | | | 11,235 | | | | 11,235 | |
Total current assets | | | 186,202 | | | | 2,060,228 | | | | 2,246,430 | |
Property and equipment, net | | | 48,562 | | | | 4,872 | | | | 53,434 | |
Other assets | | | 96,071 | | | | 34,006 | | | | 130,077 | |
Total noncurrent assets | | | 144,633 | | | | 38,878 | | | | 183,511 | |
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Total assets | | $ | 330,835 | | | $ | 2,099,106 | | | $ | 2,429,941 | |
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