Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 14, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Consumer Capital Group, Inc. | |
Entity Central Index Key | 0001439299 | |
Trading Symbol | CCGN | |
Amendment Flag | true | |
Amendment Description | This Amendment No. 1 to Form 10-Q (the "Form 10-Q/A") amends the annual report on Form 10-Q of Consumer Capital Group, Inc., ("Consumer Capital") for the six months ended June 30, 2018, originally filed with the U.S. Securities and Exchange Commission ("SEC") on August 14, 2018 (the "Form 10-Q"). This Form 10-Q/A is being filed to include consolidated financial statements for income and comprehensive income, changes in shareholders' equity, and cash flows for the six months ended June 30, 2017 in accordance with Item 1 of Form 10-Q, and Articles 3-02(a) and 3-04 of Regulation S-X. No changes are made to the selected financial data and consolidated financial statements for income and comprehensive income, changes in shareholders' equity, and cash flows for the six months ended June 30, 2018 and 2017. The Form 10-Q, as amended by this Form 10-Q/A, speaks as of the original filing date of the Form 10-Q, is not intended to reflect events that may have occurred subsequent to the original filing date of the Form 10-Q. | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 27,208,849 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,491,515 | $ 725,774 |
Loans receivable - third parties, net (Note 5) | 1,661,990 | |
Loans receivable - related parties, net (Note 5) | 8,053,097 | |
Prepaid expense (Note 4) | 83,695 | 58,225 |
Other receivables (Note 6) | 34,601 | 31,136 |
Short-term investment (Note 8) | 461,115 | |
Total current assets | 11,324,898 | 1,276,250 |
Non-current assets: | ||
Property and equipment, net (Note 7) | 71,564 | 83,184 |
Total non-current assets | 71,564 | 83,184 |
Total Assets | 11,396,462 | 1,359,434 |
Current liabilities: | ||
Loans payable to third parties, non-current portion (Note 9) | 2,852,578 | 93,759 |
Loans payable to related parties, non-current portion (Note 9) | 8,924,887 | 1,098,991 |
Accrued interest payable | 1,213,563 | 531,812 |
Accrued fee payable | 51,747 | |
Taxes payable | 7,773 | 442 |
Received in advance | 601,940 | |
Other payable | 5,037 | 260 |
Payable to shareholders (Note 10) | 109,009 | 117,767 |
Due to related parties (Note 14) | 122,811 | 90,727 |
Deferred tax liabilities (Note 13) | 82,086 | 83,507 |
Total current liabilities | 13,971,431 | 2,017,265 |
Non-current liabilities: | ||
Loans payable to third parties, non-current (Note 9) | 793,223 | 1,506,309 |
Loans payable to related parties, non-current (Note 9) | 1,217,785 | 1,400,233 |
Total non - current liabilities | 2,011,008 | 2,906,562 |
Total Liabilities | 15,982,439 | 4,923,827 |
Stockholders' deficit: | ||
Common stock - $0.0001 par value, 100,000,000 shares authorized, 27,208,849 and 32,208,849 shares issued and outstanding as of June 30, 2018 and December 31, 2017 respectively. | 2,721 | 3,221 |
Additional paid-in capital | 8,021,677 | 8,021,677 |
Accumulated deficit | (11,101,633) | (10,264,149) |
Accumulated other comprehensive income (loss) | 36,570 | (64,466) |
Stockholders' deficit before non-controlling interests | (3,040,665) | (2,303,717) |
Non-controlling interests | (1,545,312) | (1,260,676) |
Total stockholders' deficit | (4,585,977) | (3,564,393) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 11,396,462 | $ 1,359,434 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 27,208,849 | 32,208,849 |
Common stock, shares outstanding | 27,208,849 | 32,208,849 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | ||||
Interest income on loans-third parties | $ 27,438 | $ 27,438 | ||
Interest income on loans-related parties | 131,446 | 3,143 | 133,962 | 133,768 |
Service fee income on loans-third parties | 13,719 | 13,719 | ||
Service fee income on loans-related parties | 66,981 | 66,981 | ||
Total revenue | 239,584 | 3,143 | 242,100 | 133,768 |
Cost of revenue | (53,800) | (53,800) | ||
Gross profit | 185,784 | 3,143 | 188,300 | 133,768 |
Operating expenses: | ||||
General and administrative | (211,610) | (466,007) | (617,521) | (811,672) |
Total operating expenses | (211,610) | (466,007) | (617,521) | (811,672) |
Loss from operations | (25,826) | (462,864) | (429,221) | (677,904) |
Other income (expenses): | ||||
Interest income | 893 | (41,939) | 25,541 | 5,344 |
Interest expense to third parties | (55,247) | (252,623) | (246,759) | (312,777) |
Interest expense to related parties | (162,582) | (562,232) | (471,452) | (562,232) |
Other income | 7 | |||
Other expense | (39) | (229) | ||
Reversal of provision for loan loss | 34,452 | |||
Total other income (expenses) | (216,968) | (822,342) | (692,899) | (869,665) |
Loss before provision for income taxes | (242,794) | (1,285,206) | (1,122,120) | (1,547,569) |
Provision for income taxes | ||||
Loss from operations | (242,794) | (1,285,206) | (1,122,120) | (1,547,569) |
Less: Net loss attributable to the non-controlling interest | (28,762) | (422,856) | (284,636) | (455,895) |
Net loss attributable to the Company's shareholders - continuing operations | (214,032) | (862,350) | (837,484) | (1,091,674) |
Discontinued operations | ||||
Income from discontinued operations before income taxes (Note 11) | 567,767 | 818,859 | ||
Provision for income taxes | (196,295) | (250,602) | ||
Income from discontinued operations, net of income taxes | 371,472 | 568,257 | ||
Net loss | (242,794) | (913,734) | (1,122,120) | (979,312) |
Net loss attributable to the Company's shareholders | (214,032) | (490,878) | (837,484) | (523,417) |
Comprehensive Loss: | ||||
Net Loss | (242,794) | (913,734) | (1,122,120) | (979,312) |
Foreign currency translation adjustment | (237,982) | 77,141 | (101,036) | (147,390) |
Comprehensive loss | (480,776) | (836,593) | (1,223,156) | (1,126,702) |
Less: comprehensive income (loss) attributable to non-controlling interest | 3,394 | (422,856) | (284,636) | |
Comprehensive loss attributable to the Company | $ (484,170) | $ (413,737) | $ (938,520) | $ (1,126,702) |
Weighted average number of common shares outstanding basic and diluted | 27,868,190 | 32,178,849 | 30,026,529 | 32,178,849 |
CONTINUING OPERATIONS | ||||
-Basic | $ (0.01) | $ (0.03) | $ (0.03) | $ (0.03) |
-Diluted | (0.01) | (0.03) | (0.03) | (0.03) |
DISCONTINUED OPERATIONS | ||||
-Basic | 0 | 0.01 | 0 | 0.02 |
-Diluted | 0 | 0.01 | 0 | 0.02 |
NET LOSS PER SHARE ATTRIBUTABLE TO THE COMPANY | ||||
-Basic | (0.01) | (0.02) | (0.03) | (0.02) |
-Diluted | $ (0.01) | $ (0.02) | $ (0.03) | $ (0.02) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Common stock | Additional paid-in capital | Accumulated (deficit) / earnings | Accumulated other comprehensive income | Stockholders' equity / (deficit) | Non-controlling interest |
Beginning balance at Dec. 31, 2016 | $ 3,278,869 | $ 3,218 | $ 7,990,637 | $ (4,675,858) | $ 143,943 | $ 3,461,940 | $ (183,071) |
Beginning balance, shares at Dec. 31, 2016 | 32,178,849 | ||||||
New Issues | 31,043 | $ 3 | 31,040 | 31,040 | |||
New Issues, shares | 30,000 | ||||||
Net Loss | (6,627,827) | (5,588,291) | (5,588,291) | (1,039,536) | |||
Foreign currency translation adjustment | (246,478) | (208,409) | (208,409) | (38,069) | |||
Ending balance at Dec. 31, 2017 | (3,564,393) | $ 3,221 | 8,021,677 | (10,264,149) | (64,466) | (2,303,717) | (1,260,676) |
Ending balance, shares at Dec. 31, 2017 | 32,208,849 | ||||||
Cancellation of shares | (500) | $ (500) | (500) | ||||
Cancellation of shares, shares | (5,000,000) | ||||||
Net Loss | (1,122,120) | (837,484) | (837,484) | (284,636) | |||
Foreign currency translation adjustment | 101,036 | 101,036 | 101,036 | ||||
Ending balance at Jun. 30, 2018 | $ (4,585,977) | $ 2,721 | $ 8,021,677 | $ (11,101,633) | $ 36,570 | $ (3,040,665) | $ (1,545,312) |
Ending balance, shares at Jun. 30, 2018 | 27,208,849 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (1,122,120) | $ (979,312) |
Less: Net income from discontinued operations | 568,257 | |
Net loss from continuing operations | (1,122,120) | (1,547,569) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 11,013 | 7,147 |
Deferred tax expense | 1,905 | |
Changes in operating assets and liabilities: | ||
Increase in accounts receivable | (5,062) | |
Increase in prepaid expenses | (27,490) | (56,795) |
(Increase) Decrease in other receivables | (4,112) | 1,271,479 |
Decrease in interest receivables | 19,350 | |
Increase (Decrease) in accrued liabilities | 4,970 | (4,987) |
Increase in taxes payable | 7,642 | 6,324 |
Increase in fees payable | 53,800 | |
Increase in interest payable | 718,211 | 113,369 |
(Decrease) Increase in due from related parties | (7,123) | 411,780 |
(Decrease) Increase in payable to Caesar Capital Mgmt Ltd | (8,758) | 15,732 |
Increase (Decrease) in received in advance | 625,825 | (129,574) |
Decrease in other payable | (5,994) | |
Net cash provided by (used in) operating activities from continuing operations | 251,859 | 97,105 |
Net cash provided by operating activities from discontinuing operations | 65,413 | |
Cash flows provided by operating activities | 251,859 | 162,518 |
Cash flows from investing activities: | ||
Originated loans disbursement - third parties | (2,199,195) | |
Originated loans disbursement - related parties | (8,372,648) | |
Repayment of loans from customers - related parties | 471,256 | 683,496 |
Proceeds of short-term investments | (51,205) | |
Proceeds of long-term investment | (442,440) | |
Redemption of short-term investment | 471,256 | |
Net cash (used in) provided by investing activities from continuing operation | (9,629,331) | 189,851 |
Net cash provided by investing activities from discontinued operation | ||
Cash flow (used in) provided by investing activities | (9,629,331) | 189,851 |
Cash flows from financing activities: | ||
Proceeds from related party debt | 40,385 | (1,254,111) |
Withdrawal of capital | (500) | (10,054) |
Proceeds from Loan payables - third parties | 8,459,045 | 1,369,368 |
Proceeds from Loan payables - related parties | 2,251,033 | 1,025,563 |
Repayment of Loan payables - third parties | (144,519) | (1,121,765) |
Repayment of Loan payables - related parties | (419,418) | (596,904) |
Net cash provided by (used in) financing activities from continuing operations | 10,186,026 | (587,903) |
Net cash provided by financing activities from discontinued operations | ||
Cash flows provide by (used in) financing activities | 10,186,026 | (587,903) |
Effect of exchange rate changes on cash, | (42,813) | (184,012) |
Net change in cash and cash equivalents | 765,741 | (419,546) |
Cash and cash equivalents, beginning balance | 725,774 | 1,461,176 |
Cash and cash equivalents, ending balance | 1,491,515 | 1,041,630 |
Less: Cash and equivalents from discontinued operations | 268,209 | |
Cash and equivalents from continuing operations | 1,491,515 | 773,421 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 543,507 | 762,547 |
Cash paid for income taxes |
Organization
Organization | 6 Months Ended |
Jun. 30, 2018 | |
Organization [Abstract] | |
ORGANIZATION | 1. ORGANIZATION Consumer Capital Group, Inc. (“CCG” or the “Company”) was incorporated in Delaware on April 25, 2008. The accompanying consolidated financial statements include the financial statements of the Company, its wholly owned subsidiaries, and an affiliated PRC entity (“Affiliated PRC Entity”) that is controlled through contractual arrangements. On February 5, 2010, in connection with the execution of a Stock Right Transfer Agreement, America Pine Group Inc. transferred both 100% of the stock rights of its wholly owned subsidiary Arki (Beijing) E-commerce Technology Co., Ltd. and 100% of its stock rights of America Pine (Beijing) Bio-Tech to Consumer Capital Group, Inc., a California corporation and wholly owned subsidiary of the Company (“CCG California”). On February 4, 2011, pursuant to a Plan and Agreement of Merger by and among Mondas Minerals Corp., its wholly owned subsidiary, CCG Acquisition Corp., a Delaware corporation (“CCG Delaware”), CCG California, and Scott D. Bengfort, Mondas Minerals Corp. merged its wholly-owned subsidiary CCG Delaware into CCG California, with CCG California surviving and CCG Delaware ceasing to exist. On February 7, 2011, the Company formed a new wholly-owned subsidiary by the name of “Consumer Capital Group Inc.” (“CCG Name Sub”) in Delaware solely for purposes of changing its corporate name to “Consumer Capital Group Inc.” in conjunction with the closing of the Merger. On February 17, 2011, the Company changed its name to Consumer Capital Group Inc. pursuant to a Certificate of Ownership filed with the Secretary of State of Delaware by merging CCG Name Sub into the Company with the Company surviving and the CCG Name Sub ceasing to exist. Unless the context specifies otherwise, references to the “Company” refers to CCG California prior to the Merger and the Company, its subsidiaries and Affiliated PRC Entity combined after the Merger. Consumer Capital Group Inc. is authorized to issue up to 100,000,000 shares of common stock, par value $0.0001 per share. On February 4, 2011, Consumer Capital Group Inc. effected a reverse stock split (the “Stock Split”), as a result of which each 21.96 shares of Consumer Capital Group’s common stock then issued and outstanding was converted into one share of Mondas Minerals’ common stock. Immediately prior to the merger, Consumer Capital Group, Inc. had 390,444,109 shares of its common stock issued and outstanding. In connection with the merger, Mondas Minerals issued 17,777,778 shares of its common stock in exchange for the issued and outstanding shares of common stock of CCG California. Immediately prior to the closing of the merger, there were 2,500,000 issued and outstanding shares of the Company’s common stock, 60% of which were held by the then principal stockholder, CEO, and sole director of the Company, Mr. Bengfort. As a part of the merger, CCG paid $335,000 in cash to Mr. Bengfort in exchange for his agreement to enter into various transaction agreements relating to the merger, as well as the cancellation of 1,388,889 shares of the Company’s common stock directly held by him, constituting 92.6% of his pre-merger holdings of common stock of the Company. YIN HANG FINANCIAL INFORMATION SERVICE (SHANGHAI) CO., LIMITED Yin Hang Financial Information Service (Shanghai) Co., Limited (“Yin Hang”) was incorporated on November 22, 2013 under the laws of the People’s Republic of China (“PRC” or “China”). The Company collects service fees calculated based on the complexity, required time, contents and commercial value of the credit risk assessment services provided to lenders and borrowers on a third party peer to peer (“P2P”) online lending platform. On December 1, 2016, the Company through its variable interest entity, America Arki Network Service Beijing Co., Ltd entered into a Share Exchange Agreement with Yin Hang, pursuant to the Agreement, the Company agreed to acquire 100% of the capital stock of Yin Hang in exchange for the issuance of 4,680,000 shares of Company’s common stock. The shares are locked up for one year upon issuance and Yin Hang’s investor may sell up to 2% of the shares after such lockup period. Further to a supplementary agreement dated March 28, 2017, as a payment for assisting in the acquisition, the Company also agreed to issue 320,000 shares of Common Stock to a third party. On August 31, 2017, Arki and Yin Hang entered into a Supplementary Agreement and mutually agreed to terminate the Share Exchange Agreement, effective immediately, because companies in the financial information industry are not permitted to be controlled by foreign companies outside of China. As a result of the termination, Yin Hang is no longer consolidated in the Company’s financial statements starting from September 1, 2017 and its operations are reflected in discontinued operations. Details of the Company’s wholly owned subsidiaries and its Affiliated PRC Entity as of June 30, 2018 are as follows: Company Date of Place of Percentage of Ownership by Principal Activities Consumer Capital Group Inc. (“CCG California”) October 14, 2009 California USA 100 % U.S. holding company and headquarters of the consolidated entities. Commencing in July 2011, CCG performs the U.S. e-commerce operations. Arki Beijing E commerce Technology Corp. (“Arki Beijing”) March 6, 2008 PRC 100 % Maintains the various computer systems, software and data. Owns the intellectual property rights of the “consumer market network”. Details of the Company’s wholly owned subsidiaries and its Affiliated PRC Entity as of June 30, 2018 are as follows: Company Date of Establishment Place of Establishment Percentage of Ownership by the Company Principal Activities America Pine Beijing Bio-tech, Inc. (“America Pine Beijing”) March 21, 2007 PRC 100 % (1) Assists in payment collection for e-commerce business. America Arki Fuxin Network Management Co. Ltd. November 26, 2010 PRC 100 % (1) Performs the principal daily e-commerce operations, transactions and management of the “consumer market network”. America Arki Network Service Beijing Co. Ltd. (“Arki Network Service” and Affiliated PRC Entity”) November 26, 2010 PRC 0 % (2) Entity under common control through relationships between Fei Gao and the Company. Holds the business license and permits necessary to conduct e-commerce operations in the PRC Yin Hang Financial Information Service (Shanghai) Co., Ltd (“Yin Hang”) November 22, 2013 PRC 0 % (4) Collects service fees calculated based on the complexity, required time, contents and commercial value of the credit risks assessment services provided to the lenders and borrowers on a third party peer to peer (“P2P”) online lending platform as of September 1, 2017, no longer owned by the Company. The results of operations of Yin Hang are reflected in the consolidated financial statements as “discontinued operations”. Details of the Company’s wholly owned subsidiaries and its Affiliated PRC Entity as of June 30, 2018 are as follows: Company Date of Place of Percentage of Ownership by Principal Activities Company Arki Tianjin Asset Management LLP. (“Arki Tianjin”) October 22, 2015 PRC 51 % (3) Offer asset management, management consulting, internet information services as well as advertising design, production, agent, publishing. (1) Wholly foreign owned entities (WFOE) (2) VIE (3) Arki Network Service, Inc. owned entities (4) Discontinued operation on August 31, 2017 In order to comply with PRC laws and regulations which prohibit foreign control of companies involved in internet content, the Company operates its website using the licenses and permits held by Arki Network Service, a 100% PRC owned entity. The equity interests of Arki Network Service are legally held directly by Mr. Jianmin Gao and Mr. Fei Gao, shareholders and directors of the Company. The effective control of Arki Network Service is held by Arki Beijing and Arki Fuxin through a series of contractual arrangements (the “Contractual Agreements”). As a result of the Contractual Agreements, Arki Beijing and Arki Fuxin maintain the ability to control Arki Network Service, and are entitled to substantially all of its economic benefits and are obligated to absorb all of its losses. Therefore, the Company consolidates Arki Network Service as a variable interest entity (“VIE”) in accordance with SEC Regulation SX-3A-02 and the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation in accounting for a variable interest entity (“VIE”).” The following is a summary of the Contractual Agreements of the Company’s VIE structure: The shareholders of Arki Network Service, namely Mr. Jianmin Gao and Mr. Fei Gao, entered into a loan agreement with Arki Fuxin on February 3, 2011. Under this loan agreement, Arki Fuxin granted an interest-free loan of RMB 1.0 million to Mr. Jianmin Gao and Mr. Fei Gao, collectively, for their capital contributions to Arki Network Service, as required by the PRC. The term of the loan is for ten years from the date of execution until the date when Arki Fuxin requests repayment. Arki Fuxin may request repayment of the loan with 30 days’ advance notice. The loan is not repayable at the discretion of the shareholders and is eliminated upon consolidation. The shareholders of Arki Network Service entered into an option agreement with Arki Fuxin on February 3, 2011, under which the shareholders of Arki Network Service jointly and severally granted to Arki Fuxin an option to purchase their equity interests in Arki Network Service. The purchase price will be set off against the loan repayment under the loan agreement. Arki Fuxin may exercise such option at any time until it has acquired all equity interests of Arki Network Service or freely transferred the option to any third party and such third party assumes the rights and obligations of the option agreement. Arki Fuxin and Arki Network Service entered into an exclusive business cooperation agreement deemed effective on November 26, 2010, under which Arki Network Service engaged Arki Fuxin as its exclusive provider of technical support, consulting services, maintenance and other commercial services. Arki Network Service shall pay to Arki Fuxin service fees determined based on the net income of Arki Network Service and which are eliminated in consolidation. Arki Fuxin shall exclusively own any intellectual property arising from the performance of this agreement. This agreement has a term of ten years from the effective date and can only be terminated mutually by the parties in a written agreement. During the term of the agreement, Arki Network Service may not enter into any agreement with third parties for the provision of identical or similar service without the prior consent of Arki Fuxin. The shareholders of Arki Network Service entered into a share pledge agreement with Arki Fuxin on February 3, 2011 under which the shareholders pledged all of their equity interests in Arki Network Service to Arki Fuxin as collateral for all of the payments due to Arki Fuxin and to secure their obligations under the above agreements. The shareholders of Arki Network Service may not transfer or assign the shares or the rights and obligations in the share pledge agreement or create or permit any pledges which may have an adverse effect on the rights or benefits of Arki Fuxin without Arki Fuxin’s preapproval. Arki Fuxin is entitled to transfer or assign in full or in part the shares pledged. In the event of default, Arki Fuxin, will be entitled to request immediate repayment of the loan or to dispose of the pledged equity interests through transfer or assignment. The shareholders of Arki Network Service entered into a power of attorney agreement with Arki Fuxin effective on November 26, 2010 under which the shareholders irrevocably appointed Arki Beijing and Arki Fuxin to vote on their behalf on all matters they are entitled to vote on, including matters relating to the transfer of any or all of their respective equity interests in the entity and the appointment of the chief executive officer and other senior management members. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
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 in accordance with accounting principles generally accepted in the United States of America. The consolidated financial statements include those of the Company and its wholly-owned subsidiaries based in the PRC, which include America Pine Beijing, Arki Beijing, Arki Fuxin, 51% majority ownership in Arki Tianjin, and the discontinued operations of Yin Hang. As a result of contractual arrangements, the Company consolidates Arki Network Service in accordance with SEC Regulation SX-3A-02 and Accounting Standards Codification (“ASC”) 810, Consolidation. All significant inter-company accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements of the Company as of June 30, 2018 and 2017 have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) which apply to 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. The consolidated financial information should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Form 10-Q filed with the SEC. 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 results of operations for the six months ended June 30, 2018 are not necessarily indicative of the results to be expected for future years. All consolidated financial statements and notes to the consolidated financial statements are presented in United States dollars (“US Dollar” or “US$” or “$”). Variable interest entity Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 810, “Consolidation” (“ASC 810”), the Company is required to include in its consolidated financial statements, the financial statements of its variable interest entities (“VIEs”). ASC 810 requires a VIE to be consolidated if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns. VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the company is the primary beneficiary of the entity. Under ASC 810, a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE. The reporting entity’s determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de - facto agents, have the unilateral ability to exercise those rights. Arki Network Service’s actual stockholders do not hold any kick-out rights that affect the consolidation determination. Through the VIE agreements disclosed in Note 1, the Company is deemed the primary beneficiary of Arki Network Service. Accordingly, the results of Arki Network Service have been included in the accompanying consolidated financial statements. Arki Network Service has no assets that are collateral for or restricted solely to settle their obligations. The creditors of Arki Network Service do not have recourse to the Company’s general credit. The following financial statement amounts and balances of Arki Network Service, Inc. have been included in the accompanying consolidated financial statements: June 30, December 31, 2018 2017 (Unaudited) Cash and cash equivalent $ 1,386,534 $ 686,368 Loan receivables, net 9,715,087 - Prepaid expenses 82,495 57,025 Due from inter-company 1,612,491 1,386,108 Due from related party 97,259 96,968 Other receivables 15,642 11,890 Total current assets 12,909,508 2,238,359 Property and equipment, net 43,259 50,453 Long-term investment 312,480 317,888 Total non-current assets 355,739 368,341 Total assets $ 13,265,247 $ 2,606,700 Loans payable - current portion $ 11,777,465 $ 1,192,750 Interest payable 1,213,563 531,812 Fee payables 51,747 - Accrued liabilities 5,036 203 Received in advance 601,940 - Other taxes payable 7,773 - Due to inter-company 1,951,183 1,729,803 Due to related party 244,178 250,810 Deferred tax liability 118,196 120,243 Total Current liabilities $ 15,971,081 $ 3,825,621 Loans payable, non-current portion 2,011,008 2,906,562 Total non-current liabilities $ 2,011,008 $ 2,906,562 Total liabilities 17,982,089 6,732,183 For the Six Months Ended 2018 2017 (Unaudited) (Unaudited) Net revenue $ 188,300 $ (1,099,698 ) Net loss from continuing operation $ (687,800 ) $ (1,099,698 ) Less: Net loss attributable to the non-controlling interest (284,636 ) (455,895 ) Net loss attributable to the company – continuing operations $ (403,164 ) $ (643,803 ) Net income from discontinued operations $ - $ 568,257 Less: Net income attributable to the non-controlling interest - - Net income attributable to the company – discontinued operations $ - $ 568,257 Net loss for the periods $ (687,800 ) $ (531,441 ) Net loss attributable to the Company’s shareholders $ (403,164 ) $ (75,546 ) For the Six Months Ended 2018 2017 (Unaudited) (Unaudited) Cash flow provided by (used in) operating activities $ 697,812 $ (1,185,473 ) -Net cash provided by (used in) operating activities from continuing operations 697,812 (1,250,886 ) -Net cash provided by operating activities from discontinued operations - 65,413 Cash flow (used in) provided by investing activities $ (10,112,461 ) $ 5,679 -Net cash (used in) provided by investing activities from continuing operations (10,112,461 ) 5,679 -Net cash used in investing activities from discontinued operations - - Net cash provided by financing activities $ 10,155,609 $ 1,248,378 -Net cash provided by financing activities from continuing operations 10,155,609 1,248,378 -Net cash provided by financing activities from discontinued operations - - Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure 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 Almost all of the Company assets are located in the PRC. The functional currency for the Company’s operations is the Renminbi (“RMB”). The Company uses the United States Dollar (“US Dollar” or “US$” or “$”) for financial reporting purposes. The financial statements of the Company have been translated into US Dollars in accordance with FASB 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. Statements of operations and comprehensive income (loss) and cash flows have been translated using the average exchange rate for the periods presented. Adjustments resulting from the translation of the Company’s 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 financial statements are as follows: As of As of (Unaudited) Balance sheet items, except for stockholders’ equity accounts 0.1511 0.1537 For the three months ended For the six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Items included in the statements of operations and comprehensive income (loss) and cash flows for the periods presented 0.1569 0.1475 0.1571 0.1463 Foreign currency translation adjustments of $(101,036) and $147,390 for the six months ended June 30, 2018 and 2017, respectively, have been reported as other comprehensive (loss) income. Other comprehensive (loss) income of the Company consists entirely of foreign currency translation adjustments. Although PRC 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 Dollars at that rate or any other rate. The value of the RMB against the US Dollar and other currencies 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 recognition The FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606). This guidance supersedes current guidance on revenue recognition in Topic 605, “Revenue Recognition.” In addition, there are disclosure requirements related to the nature, amount, timing, and uncertainty of revenue recognition. For publicly-traded business entities, Topic 606 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company will adopt the new revenue standard beginning July 1, 2018, using the modified retrospective method. The Company anticipates that the application of the new standard in the future may result in more disclosures, but its application is not likely to have a material impact on the timing and amounts of revenue recognized in the respective reporting periods. Revenue recognition (continued) We recognize revenue from services rendered when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectability is reasonably assured. E-commerce Revenue Recognition The Company evaluates whether it is appropriate to record the net amount of sales earned as commissions. The Company is not the primary obligor nor is it subject to inventory risk as the agreements with its suppliers specify that they have the responsibility to provide the product or service to the customer. Also, the amounts it earns from its vendors/suppliers is based on a fixed percentage and bound contractually. Additionally, the Company does not have any obligation to resolve disputes between the vendors and the customers that purchase the products on its website. Any disputes involving damaged, non-functional, product returns, and/or warranty defects are resolved between the customer and the vendor. The Company has no obligation for right of return and/or warranty for any of the sales completed using its website. Since the Company is not primarily obligated and amounts earned are determined using a fixed percentage, a fixed-payment schedule, or a combination of the two, it records its revenues as commissions earned on a net basis. The Company records deferred revenue when cash is received in advance of the performance of services or delivery of goods. Deferred revenue is also recorded to account for the seven-day grace period offered to customers for potential product disputes, if any. Revenue recognition (continued) Servicing fee income Borrowers typically pay the Company a servicing fee on each payment received. The service fees compensate the Company for the costs it incurs in servicing the related loan, including managing funding from investors, payments to investors and maintaining borrower’ account portfolios. The Company records servicing fees paid by borrower as a component of operating revenue when received. Yin Hang provided credit risks assessment services to the borrowers and lenders on a third party P2P online lending platform. The service fees are calculated based on complexity, required time, contents and commercial value of the coordination services between borrowers and lenders and are collected when the loan agreements are signed by all parties but before releasing the money to the borrowers. Interest on loan receivables is accrued monthly in accordance with their contractual terms and recorded in accrued interest receivable. The Company does not charge a prepayment penalty if they repay the loans in advance with or without notice. Cost of revenue The cost of revenue represented the fees paid to agents for the introduction of customers. Discontinued Operations “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” is utilized by the Company to present the operations of Yin Hang which have been disposed of. The amendments contained in this update change the criteria for reporting discontinued operations and enhance the reporting requirements for discontinued operations. Under the revised standard, a discontinued operation must represent a strategic shift that has or will have a major effect on an entity’s operations and financial results. Examples could include a disposal of a major line of business, a major geographical area, a major equity method investment, or other major parts of an entity. The revised standard also allows an entity to have certain continuing cash flows or involvement with the component after the disposal. Additionally, the standard requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The Company accounted for the dispose of Yin Hang as discontinued operations pursuant to this standard. Refer to Note 9 for additional details. The Company accounted for the disposal of Yin Hang during 2017 as a discontinued operation pursuant to this standard. Refer to Note 11 for additional details. Non-controlling interest Non-controlling interests held 49% shares of one of subsidiary is recorded as a component of our equity, separate from the Company’s equity. Purchase or sales of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings. Comprehensive income (loss) Comprehensive income (loss) includes all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, Accounting Standards Codification (ASC) 220, Comprehensive Income, requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. For the periods presented, the Company’s comprehensive income (loss) includes net income (loss) and foreign currency translation adjustments and is presented in the consolidated statements of operations and comprehensive income (loss). Earnings per share The Company calculates basic earnings per share by dividing its net income (loss) by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period and the weighted average number of dilute common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is not anti-dilute or the Company has a loss. 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. Loans receivable Loans receivable primarily represents the principle lent to the borrowers. Management regularly reviews the aging of the loans receivable and changes in payment trends and records an allowance when management believes collection of amounts due are at risk. Loans receivable considered noncollectable are written off after exhaustive efforts at collection. Allowance for loan losses The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss history, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The Company calculates the provision amount as below: 1. General Reserve - is based on the total loan receivable balance and to be used to cover unidentified probable loan loss. The General Reserve is required to be no less than 1% of total loans receivable. 2. Specific Reserve - is an allowance set aside covering losses due to risks related to a particular country, region, industry, borrower or type of loan. The reserve rate can also be decided based on management’s estimate of loan collectability. Interest receivable Interest receivable represents the amount of interest that has been earned as of the balance sheet date, but which has not yet been received in cash. Management regularly reviews the aging of interest receivable and changes in payment trends and records an allowance when management believes collection of amounts due are at risk. Interest receivable considered noncollectable is written off after exhaustive efforts at collection. Loans payable Loans from individuals primarily represent the principle of lending funds received from the individuals through the Company’s internet platform. The interest rates of such loans are 4% - 54% per annum with a term lasting from 6 months to two years. Property and equipment, net Property and equipment is recorded at cost and consists of computer equipment, office equipment and furniture and is depreciated using the straight-line method over the estimated useful lives of the related assets (generally three years or less). Costs incurred for maintenance and repairs are expended as incurred and expenditures for major replacements and improvements are capitalized and depreciated over their estimated remaining useful lives. Impairment of long-lived assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances (such as a significant adverse change in market conditions that will impact the future use of the assets) indicate its net book value may not be recoverable. The Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over its estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. The Company’s management currently believes there is no impairment of its long-lived assets. There can be no assurance, however, that market conditions will not change or demand for the Company’s services will continue. Either of these could result in the future impairment of long-lived assets. As of June 30, 2018 and December 31, 2017, the Company has not experienced impairment losses on its long-lived assets for both the continuing and discontinued operations. However, there can be no assurances that demand for the Company’s products or services will continue, which could result in an impairment of long-lived assets in the future Fair value of financial instruments FASB ASC 820, “Fair Value Measurement” 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 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 measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The tables below present information as of June 30, 2018 and December 31 2017, respectively, regarding the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy reflecting the valuation techniques utilized to determine such fair value. June 30, 2018: Level 1 Available-for-sale: Short-term investments $ - December 31, 2017: Level 1 Available-for-sale: Short-term investments $ 461,115 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 tax positions. As of June 30, 2018 and December 31, 2017, the Company does not have liability for any unrecognized tax benefits. The Company’s tax filings are subject to examination by the tax authorities. The tax years of 2017 and 2016 and 2015 remain open to examination by tax authorities in the PRC. Generally, the Company remains subject to PRC examination of its income tax returns annually. It believes that its income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. Its tax provision for interim periods is determined using an estimate of our annual effective tax rate based on rates established within the PRC and, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the Company updates its estimate of the annual effective tax rate, and if the estimated tax rate changes, the Company makes a cumulative adjustment. Going Concern As shown in the consolidated financial statements, the Company has generated a net loss of $1,122,120 for the six months ended June 30, 2018 and an accumulated deficit of $11,101,633 as of June 30, 2018. The Company also experienced insufficient cash flows from operations and will be required continuous financial support from the shareholder. The Company will need to raise capital to fund its operations until it is able to generate sufficient revenue to support the future development. Moreover, the Company may be continuously raising capital through the sale of debt and equity securities. The Company’s ability to achieve these objectives cannot be determined at this stage. If the Company is unsuccessful in its endeavors, it may be forced to cease operations. These consolidated financial statements do not include any adjustments that might result from this uncertainty which may include adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors have raised substantial doubt about the Company’s ability to continue as a going concern. There can be no assurances that the Company will be able to obtain adequate financing or achieve profitability. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2018 | |
Recently Issued Accounting Standards [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | 3. RECENTLY ISSUED ACCOUNTING STANDARDS In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606). This guidance supersedes current guidance on revenue recognition in Topic 605, “Revenue Recognition.” In addition, there are disclosure requirements related to the nature, amount, timing, and uncertainty of revenue recognition. For publicly-traded business entities, Topic 606 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company will adopt the new revenue standard beginning January 1, 2018, using the modified retrospective method. The Company anticipates that the application of the new standard in the future may result in more disclosures, but its application is not likely to have a material impact on the timing and amounts of revenue recognized in the respective reporting periods. In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-04, Intangibles – Goodwill and Other (Topic 350). The amendments in this update simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. The amendments in this update are effective for public companies for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We are evaluating the impact of adopting this guidance on our Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805); Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this update are effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company is currently reviewing the impact of adoption of ASU 2017-11on its financial statements. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information. |
Prepaid Expenses
Prepaid Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Prepaid Expenses [Abstract] | |
PREPAID EXPENSES | 4. PREPAID EXPENSES Prepaid expenses consisted of prepaid rent for our US company and other prepaid expenses for Arki Network as of June 30, 2018 and December 31, 2017. |
Loans Receivable, Net
Loans Receivable, Net | 6 Months Ended |
Jun. 30, 2018 | |
Loans Receivable, Net/Other Receivables [Abstract] | |
LOANS RECEIVABLE, NET | 5. LOANS RECEIVABLE, NET The monthly interest rates on loan issued at 6% and range from 8% to 30% for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018 and December 31, 2017, loan receivables balance was $9,715,087 and $0, respectively. Loan receivable consisted of the following as of June 30, 2018 and December 31, 2017: June 30, December 31, (Unaudited) Loans receivable - third parties $ 1,661,990 $ - Loans receivable - related parties 8,053,097 $ - Allowance for loan losses - - Loans receivable, net $ 9,715,087 $ - According to the outstanding contracts during the reporting period, the maturity terms are 3 months. The following table represents the aging of loan receivables as of June 30, 2018: 1-29 days 30-59 days 60-89 days Over 90 Total Current Total Loans receivables $ - $ - $ - $ - $ - $ 9,715,087 $ 9,715,087 The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss history, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The allowance is calculated at portfolio-level since our loans portfolio is typically of smaller balance homogeneous loans and is collectively evaluated for impairment. Finally, as appropriate, the Company also considers individual borrower circumstances and the condition and fair value of the loan collateral, if any. While management uses the best information available to make loan loss allowance evaluations, adjustments to the allowance may be necessary based on changes in economic and other conditions or changes in accounting guidance. For the six months ended June 30, 2018 and 2017, the Company believes that all loans can be collected and allowance for loan losses were nil and nil. Loans with modified terms are classified as troubled debt restructurings if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary below market rate reduction in interest rate or an extension of a loan’s stated maturity date. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. Loans classified as troubled debt restructurings are designated as impaired. There were no loans considered impaired as of June 30, 2018 and December 31, 2017. |
Other Receivables
Other Receivables | 6 Months Ended |
Jun. 30, 2018 | |
Loans Receivable, Net/Other Receivables [Abstract] | |
OTHER RECEIVABLES | 6. OTHER RECEIVABLES Other receivables consist of the following as of June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 (Unaudited) Advances to unrelated third-parties $ 32,201 $ 28,736 Other deposits 2,400 2,400 Total $ 34,601 $ 31,136 |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2018 | |
Property and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 7. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following as of June 30, 2018 and December 31, 2017: As of June 30, As of December 31, 2018 2017 (Unaudited) Leasehold improvement $ 52,882 $ 53,797 Office equipment 25,711 25,748 Furniture & fixtures 6,875 6,994 Motor vehicles 20,710 20,710 106,178 107,249 Less: accumulated depreciation (34,164 ) (24,065 ) Total property & equipment, net $ 71,564 $ 83,184 For the six months ended June 30, 2018 and 2017, depreciation expense from the continuing operations was $11,013 and $7,147, respectively. |
Short-Term Investment
Short-Term Investment | 6 Months Ended |
Jun. 30, 2018 | |
Short-Term Investment [Abstract] | |
SHORT-TERM INVESTMENT | 8. SHORT-TERM INVESTMENT Short-term investment is highly liquid available-for-sale investment in accounts maintained with Industrial and Commercial Bank of China within the PRC. As of As of 2018 2017 (Unaudited) Short-term investment: Available-for-sale investment $ - $ 719,859 Less: Redemption - (258,744 ) Total short-term investment $ - $ 461,115 Interest income earned from the short-term investments for the six months ended June 30, 2018 and 2017 was $24,115 and $8,302, respectively. |
Loans Payable
Loans Payable | 6 Months Ended |
Jun. 30, 2018 | |
Loans Payable [Abstract] | |
LOANS PAYABLE | 9. LOANS PAYABLE Individuals can invest in loans that are offered through the Company’s marketplace and network. All the loans have maturities from six months to two years with interest rates varying from 4% to 100% per annum. Loans payable consisted of the following as of June 30, 2018 and December 31, 2017: June 30, December 31, Interest rate Remaining maturity 2018 2017 (Unaudited) 4 % Within 1 year $ 107,274 $ - 12 % Within 1 year 96,697 - 13 % Within 1 year - 15,370 14 % Within 1 year 78,567 158,316 18 % Within 1 year 302,180 - 30 % Within 1 year 1,122,599 - 40%-54 % Within 1 year 10,070,148 1,019,064 40%-54 % Between 1 to 2 years 1,376,430 2,906,562 80 % Between 1 to 2 years 317,289 - 100 % Between 1 to 2 years 317,289 - $ 13,788,473 $ 4,099,312 Current portion $ 11,777,465 $ 1,192,750 Non-current portion $ 2,011,008 $ 2,906,542 The Company has loans payable to related parties of $10,142,672 and $2,499,224, and loans payable to third parties of 3,645,801 and $1,600,068 as of June 30, 2018 and December 31, 2017, respectively. For the six months ended June 30, 2018 and 2017, the Company accrued $718,209 and $860,379 of interest expenses, respectively. |
Payable to Shareholder
Payable to Shareholder | 6 Months Ended |
Jun. 30, 2018 | |
Payable to Shareholder [Abstract] | |
PAYABLE TO SHAREHOLDER | 10. PAYABLE TO SHAREHOLDER Caesar Capital Management Ltd. (“Caesar”) a shareholder of the Company, advanced $109,009 and $117,767 to the Company as of June 30, 2018 and December 31, 2017, respectively. The loans were borrowed by the Company for operating purposes, without collateral, and were due between July 2013 to November 2013, with an annual interest rate of 6%. On July 1, 2013, the Company entered into an agreement with Caesar Capital Management Ltd. which amended the maturity date for all the existing loans between the Company and Caesar Capital Management Ltd. The loans became due on demand and are non-interest bearing. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations [Abstract] | |
DISCONTINUED OPERATIONS | 11. DISCONTINUED OPERATIONS In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity On December 1, 2016, the Company through its variable interest entity, America Arki Network Service Beijing Co., Ltd entered into certain Share Exchange Agreement with Yin Hang Financial Information Service (Shanghai) Co., Ltd, a company established under the laws of People’s Republic of China. Pursuant to the Agreement, the Company agreed to acquire 100% of the capital stock of Yin Hang in exchange for the issuance of 4,680,000 shares of Company’s common stock. Pursuant to the terms of the Agreement, all Acquisition Shares shall be locked up for one year upon issuance and Yin Hang’s investor may sell up to 2% of the Acquisition Shares after such lock-up period. Further to the supplementary agreement dated March 28, 2017, as a payment for the assisting with the acquisition, the Company also issued 320,000 additional shares of the Common Stock to a third party, Yu Yang. On August 31, 2017, Arki and Yin Hang entered into a Supplementary Agreement and mutually agreed to terminate the Share Exchange Agreement, effective immediately, because companies in the financial information industry are not permitted to be controlled by foreign companies outside of China. As a result of the termination, Yin Hang shall no longer be consolidated in the Company’s financial statements as of September 1, 2017. As of June 30 2017, the results of operations of Yin Hang are reflected in the Company’s consolidated financial statements as “discontinued operations.” The disposal represents a strategic shift and has a major effect on the Company’s results of operations. The disposed entities are accounted as discontinued operations in the consolidated financial statements for the six months ended June 30, 2017. The significant items included discontinued operations are as follow: For the three months ended For the six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue $ - $ 1,092,962 $ - $ 1,631,673 Operating expenses - (323,547 ) - (629,247 ) Interest expense - (46 ) - (17 ) Other expense - (201,602 ) - (183,550 ) Income from discontinued operations before income taxes - 567,767 - 818,859 Provision for income taxes - (196,295 ) - (250,602 ) Income from discontinued operations $ - $ 371,472 $ - $ 568,257 Related party transactions from discontinued operations a) Related parties: Name of related party Relationship with the Company Zhongxin Shitong (Beijing) Credit Investigation Co., Ltd. (“Zhongxin Credit”) A related company of former shareholder of Yin Hang, Yunfeng Du b) The Company had the following related party balances at of June 30, 2018 and December 31, 2017: June 30, December 31, (Unaudited) Due from related party: Zhongxin Credit $ - $ 207,203 Zhongxin Credit borrowed $418,041 from Yin Hang, and repaid $212,450 in 2016. On December 31, 2016, Zhongxin Credit entered into a loan agreement whereby Zhongxin Credit agreed to repay the outstanding receivable balance by scheduled payment within six months. As of December 31, 2017, the outstanding receivable balance was $207,203. |
Noncontrolling Interest
Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTEREST | 12. NONCONTROLLING INTEREST As of June 30, 2018 and December 31, 2017, non-controlling interest of Ark Tianjin of $1,545,312 and $1,260,676, respectively, was recognized in the Company’s consolidated balance sheets, representing Ark Tianjin’s cumulative results of operations attributable to shareholders other than CCG Group. For the six months ended June 30, 2018 and 2017, a $284,636 and a $455,895 net loss, respectively, attributable to the non-controlling interest of Arki Tianjin was recognized in the Company’s consolidated statements of comprehensive loss, representing Arki Tianjin’s net loss attributable to shareholders other than CCG Group. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Taxes [Abstract] | |
INCOME TAXES | 13. INCOME TAXES The income tax laws of various jurisdictions in which the Company and its subsidiaries operate are summarized as follows: United States Consumer Capital Group Inc. was incorporated in United States, and is subject to corporate income tax rate of 21%. The People’s Republic of China (PRC) Arki Beijing E-commerce Technology Corp., America Pine Beijing Bio-Tech, Inc., America Arki (Fuxin) Network Management Co. Ltd., America Arki Network Service Beijing Co. Ltd. and America Arki (Tianjin) Capital Management Partnership were incorporated in the People’s Republic of China and subject to PRC income tax at 25%. The Company did not generate taxable income in the People’s Republic of China for the six months ended June 30, 2018 and 2017, respectively. Yin Hang Financial Information Service (Shanghai) Co., Limited was incorporated in the People’s Republic of China and subject to PRC income tax at 25%. The new EIT Law also imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. Such withholding income tax was exempted under the previous income tax regulations. The income tax laws of various jurisdictions in which the Company and its subsidiaries operate are summarized as follows: For the three months ended For the six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Tax expense at statutory rate US 21 % 34 % 21 % 34 % Foreign income not recognized in the U.S. (21 )% (34 )% (21 )% (34 )% PRC enterprise income tax rate 25 % 25 % 25 % 25 % Changes in valuation allowance and others (25 )% (25 )% (25 )% (25 )% Effective income tax rates - - - - Loss before income taxes from continuing operations consists of: For the three months ended For the six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Non-PRC $ (31,573 ) $ 14,055 $ (35,677 ) $ 3,649 PRC (211,221 ) (1,299,261 ) (1,086,443 ) (1,551,218 ) Total $ (242,794 ) $ (1,285,206 ) $ (1,122,120 ) $ (1,547,569 ) The principal components of the Company’s deferred income tax assets and liabilities are as follows: June 30, December 31, (Unaudited) Deferred tax assets: Accrued interest payable $ 22,696 $ 23,089 Accrual 33,824 34,409 Total deferred tax assets 56,520 57,498 Less: Valuation allowance (56,520 ) (57,498 ) Total deferred tax assets, net $ - $ - June 30, December 31, (Unaudited) Deferred tax liabilities: Accrued interest receivable $ 35,616 $ 36,232 Accrued interest payable 46,470 47,275 Total deferred tax liabilities $ 82,086 $ 83,507 As of June 30, 2018 and December 31, 2017, the Company has a deferred tax asset of $56,520 and $57,498, and a deferred tax liability of $82,086 and $83,507 resulting from certain net operating losses in the PRC, respectively. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those net operating losses are available. The Company considers projected future taxable income and tax planning strategies in making its assessment. As of June 30, 2018 and December 31, 2017, the Company did not have sufficient operations to generate taxable income in Arki Beijing, America Pine Beijing, Arki Fuxin, Arki Network Service and Arki Tianjin to conclude that it is more-likely-than-not that the Company will be able to realize all of its tax benefits in the near future and therefore a valuation allowance has been provided for the full value of the deferred tax asset. A valuation allowance will be maintained until sufficient positive evidence exists to support the reversal of any portion or all of the valuation allowance. Should Arki Beijing, America Pine Beijing, Arki Fuxin, Arki Network Service, Arki Tianjin and Yin Hang have sufficient operation to generate taxable income in future periods with a supportable trend; the valuation allowance will be reduced accordingly. . As of June 30, 2018 and December 31, 2017, $56,520 and $57,498 valuation allowance was recorded respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 14. RELATED PARTY TRANSACTIONS a) Related parties: Name of related parties Relationship with the Company Mr. Jianmin Gao Stockholder, Chief Executive Officer, Chief Financial Officer and Chairman of the Board of the Company Mr. Fei Gao Stockholder, Director and Chief Operating Officer Mr. Dong Yao Stockholder, Director and Chief Technology Officer Ms. Lihua Xiao Stockholder, Management of the Company Ms. Li Juan Stockholder, procurement manager Ms. Zheng Zhong Stockholder, procurement manager Mr. Hao Siheng Stockholder, Son of Lihua Xiao b) The Company had the following related party balances as of June 30, 2018 and December 31, 2017: June 30 December 31, (Unaudited) Due to related parties: Mr. Jianmin Gao $ 115,950 $ 83,747 Mr. Fei Gao 6,861 6,980 $ 122,811 $ 90,727 As of June 30, 2018 and December 31, 2017, the amounts owed to Mr. Jianmin Gao and Mr. Fei Gao are without interest and due on demand. c) Loans receivable form related parties As of As of 2018 2017 (Unaudited) Related companies of non-controlling stockholders $ 8,053,097 $ - Total $ 8,053,097 $ - Interest income derived from the above loans receivable from related parties were $133,962 and $133,768 for the six months ended June 30, 2018 and 2017, respectively. Fee income derived from the above loans receivable from related parties were $66,981 and $0 for the six months ended June 30, 2018 and 2017, respectively. d) Loans payable to related parties June 30 December 31, (Unaudited) Non-controlling stockholders $ 3,450,895 $ 2,499,244 Related companies of non-controlling stockholders 6,691,777 - $ 10,142,672 $ 2,499,244 Interest expenses incurred on the above loans payable to related parties were $471,452 and $562,232 for the six months ended June 30, 2018 and 2017, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Operating Leases The Company has entered into lease agreements with various third parties. The terms of such non-cancellable operating leases are one to five years. As of June 30, 2018, the Company was obligated under non-cancellable operating leases minimum rentals as follows: For the twelve months ended June 30, 2019 $ 64,297 2020 54,984 2021 54,984 2022 4,582 Total $ 178,847 The rent expense for the six months ended June 30, 2018 and 2017 was $36,212 and $8,758 respectively. Legal Proceedings The Company is not currently a party to any legal proceeding, investigation or claim which, in the opinion of the management, is likely to have a material adverse effect on the business, financial condition or results of operations. |
Concentration of Credit and Bus
Concentration of Credit and Business Risks | 6 Months Ended |
Jun. 30, 2018 | |
Concentration of Credit and Business Risks [Abstract] | |
CONCENTRATION OF CREDIT AND BUSINESS RISKS | 16. CONCENTRATION OF CREDIT AND BUSINESS RISKS Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents, loans receivable and other receivables. The maximum exposure of such assets to credit risk is their carrying amounts as of the balance sheet dates. As of June 30, 2018 and December 31, 2017, substantially all of the Company’s cash and cash equivalents were deposited in financial institutions located in the PRC, which management believes are of high credit quality. Management believes the credit risk on bank deposits is limited because the counter-parties are banks with high credit-ratings assigned by international credit rating agencies, or state-owned banks in China. Cash includes cash on hand and demand deposits in accounts maintained with state-owned banks within the PRC and the United States of America. Balances at financial institutions or state owned banks within the PRC are not covered by insurance. Non-performance by these institutions could expose the Company to losses for amounts in excess of insured balances. As of June 30, 2018 and December 31, 2017, we had no uninsured balances with the banks in U.S. As of June 30, 2018 and December 31, 2017, our bank balances in the PRC were $1,470,675 and $706,771, respectively, which are uninsured and subject to credit risk. We have not experienced nonperformance by these institutions. Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of loans receivable from borrowers and the related accrued interest receivable. The aforementioned borrowers paid service fees and interest regularly according to the contract during the reporting period, and the Company believes that the default risk from these borrowers is low in the foreseeable future. The Company’s operations may be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than twenty years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC’s political, economic and social conditions. There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent or effective. The economy in the PRC has recently started to narrow. On December 15, 2014, the Company entered into six year agreements with the Chief Operating Officer, Mr. Fei Gao, for a compensation of approximately $2,655 (RMB 18,000) per month. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Event [Abstract] | |
Subsequent Event | 17. SUBSEQUENT EVENT There were no events or transactions that would require recognition or disclosure in our unaudited condensed consolidated financial statements for the six months ended June 30, 2018. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of accounting and presentation | Basis of accounting and presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The consolidated financial statements include those of the Company and its wholly-owned subsidiaries based in the PRC, which include America Pine Beijing, Arki Beijing, Arki Fuxin, 51% majority ownership in Arki Tianjin, and the discontinued operations of Yin Hang. As a result of contractual arrangements, the Company consolidates Arki Network Service in accordance with SEC Regulation SX-3A-02 and Accounting Standards Codification (“ASC”) 810, Consolidation. All significant inter-company accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements of the Company as of June 30, 2018 and 2017 have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) which apply to 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. The consolidated financial information should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Form 10-Q filed with the SEC. 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 results of operations for the six months ended June 30, 2018 are not necessarily indicative of the results to be expected for future years. All consolidated financial statements and notes to the consolidated financial statements are presented in United States dollars (“US Dollar” or “US$” or “$”). |
Variable interest entity | Variable interest entity Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 810, “Consolidation” (“ASC 810”), the Company is required to include in its consolidated financial statements, the financial statements of its variable interest entities (“VIEs”). ASC 810 requires a VIE to be consolidated if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns. VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the company is the primary beneficiary of the entity. Under ASC 810, a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE. The reporting entity’s determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de - facto agents, have the unilateral ability to exercise those rights. Arki Network Service’s actual stockholders do not hold any kick-out rights that affect the consolidation determination. Through the VIE agreements disclosed in Note 1, the Company is deemed the primary beneficiary of Arki Network Service. Accordingly, the results of Arki Network Service have been included in the accompanying consolidated financial statements. Arki Network Service has no assets that are collateral for or restricted solely to settle their obligations. The creditors of Arki Network Service do not have recourse to the Company’s general credit. The following financial statement amounts and balances of Arki Network Service, Inc. have been included in the accompanying consolidated financial statements: June 30, December 31, 2018 2017 (Unaudited) Cash and cash equivalent $ 1,386,534 $ 686,368 Loan receivables, net 9,715,087 - Prepaid expenses 82,495 57,025 Due from inter-company 1,612,491 1,386,108 Due from related party 97,259 96,968 Other receivables 15,642 11,890 Total current assets 12,909,508 2,238,359 Property and equipment, net 43,259 50,453 Long-term investment 312,480 317,888 Total non-current assets 355,739 368,341 Total assets $ 13,265,247 $ 2,606,700 Loans payable - current portion $ 11,777,465 $ 1,192,750 Interest payable 1,213,563 531,812 Fee payables 51,747 - Accrued liabilities 5,036 203 Received in advance 601,940 - Other taxes payable 7,773 - Due to inter-company 1,951,183 1,729,803 Due to related party 244,178 250,810 Deferred tax liability 118,196 120,243 Total Current liabilities $ 15,971,081 $ 3,825,621 Loans payable, non-current portion 2,011,008 2,906,562 Total non-current liabilities $ 2,011,008 $ 2,906,562 Total liabilities 17,982,089 6,732,183 For the Six Months Ended 2018 2017 (Unaudited) (Unaudited) Net revenue $ 188,300 $ (1,099,698 ) Net loss from continuing operation $ (687,800 ) $ (1,099,698 ) Less: Net loss attributable to the non-controlling interest (284,636 ) (455,895 ) Net loss attributable to the company – continuing operations $ (403,164 ) $ (643,803 ) Net income from discontinued operations $ - $ 568,257 Less: Net income attributable to the non-controlling interest - - Net income attributable to the company – discontinued operations $ - $ 568,257 Net loss for the periods $ (687,800 ) $ (531,441 ) Net loss attributable to the Company’s shareholders $ (403,164 ) $ (75,546 ) For the Six Months Ended 2018 2017 (Unaudited) (Unaudited) Cash flow provided by (used in) operating activities $ 697,812 $ (1,185,473 ) -Net cash provided by (used in) operating activities from continuing operations 697,812 (1,250,886 ) -Net cash provided by operating activities from discontinued operations - 65,413 Cash flow (used in) provided by investing activities $ (10,112,461 ) $ 5,679 -Net cash (used in) provided by investing activities from continuing operations (10,112,461 ) 5,679 -Net cash used in investing activities from discontinued operations - - Net cash provided by financing activities $ 10,155,609 $ 1,248,378 -Net cash provided by financing activities from continuing operations 10,155,609 1,248,378 -Net cash provided by financing activities from discontinued operations - - |
Use of estimates | Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure 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 translations Almost all of the Company assets are located in the PRC. The functional currency for the Company’s operations is the Renminbi (“RMB”). The Company uses the United States Dollar (“US Dollar” or “US$” or “$”) for financial reporting purposes. The financial statements of the Company have been translated into US Dollars in accordance with FASB 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. Statements of operations and comprehensive income (loss) and cash flows have been translated using the average exchange rate for the periods presented. Adjustments resulting from the translation of the Company’s 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 financial statements are as follows: As of June 30, 2018 As of December 31, 2017 (Unaudited) Balance sheet items, except for stockholders’ equity accounts 0.1511 0.1537 For the three months ended June 30, For the six months ended June 30, 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Items included in the statements of operations and comprehensive income (loss) and cash flows for the periods presented 0.1569 0.1475 0.1571 0.1463 Foreign currency translation adjustments of $(101,036) and $147,390 for the six months ended June 30, 2018 and 2017, respectively, have been reported as other comprehensive (loss) income. Other comprehensive (loss) income of the Company consists entirely of foreign currency translation adjustments. Although PRC 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 Dollars at that rate or any other rate. The value of the RMB against the US Dollar and other currencies 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 recognition | Revenue recognition The FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606). This guidance supersedes current guidance on revenue recognition in Topic 605, “Revenue Recognition.” In addition, there are disclosure requirements related to the nature, amount, timing, and uncertainty of revenue recognition. For publicly-traded business entities, Topic 606 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company will adopt the new revenue standard beginning July 1, 2018, using the modified retrospective method. The Company anticipates that the application of the new standard in the future may result in more disclosures, but its application is not likely to have a material impact on the timing and amounts of revenue recognized in the respective reporting periods. We recognize revenue from services rendered when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectability is reasonably assured. E-commerce Revenue Recognition The Company evaluates whether it is appropriate to record the net amount of sales earned as commissions. The Company is not the primary obligor nor is it subject to inventory risk as the agreements with its suppliers specify that they have the responsibility to provide the product or service to the customer. Also, the amounts it earns from its vendors/suppliers is based on a fixed percentage and bound contractually. Additionally, the Company does not have any obligation to resolve disputes between the vendors and the customers that purchase the products on its website. Any disputes involving damaged, non-functional, product returns, and/or warranty defects are resolved between the customer and the vendor. The Company has no obligation for right of return and/or warranty for any of the sales completed using its website. Since the Company is not primarily obligated and amounts earned are determined using a fixed percentage, a fixed-payment schedule, or a combination of the two, it records its revenues as commissions earned on a net basis. The Company records deferred revenue when cash is received in advance of the performance of services or delivery of goods. Deferred revenue is also recorded to account for the seven-day grace period offered to customers for potential product disputes, if any. Servicing fee income Borrowers typically pay the Company a servicing fee on each payment received. The service fees compensate the Company for the costs it incurs in servicing the related loan, including managing funding from investors, payments to investors and maintaining borrower’ account portfolios. The Company records servicing fees paid by borrower as a component of operating revenue when received. Yin Hang provided credit risks assessment services to the borrowers and lenders on a third party P2P online lending platform. The service fees are calculated based on complexity, required time, contents and commercial value of the coordination services between borrowers and lenders and are collected when the loan agreements are signed by all parties but before releasing the money to the borrowers. Interest on loan receivables is accrued monthly in accordance with their contractual terms and recorded in accrued interest receivable. The Company does not charge a prepayment penalty if they repay the loans in advance with or without notice. |
Cost of revenue | Cost of revenue The cost of revenue represented the fees paid to agents for the introduction of customers. |
Discontinued Operations | Discontinued Operations “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” is utilized by the Company to present the operations of Yin Hang which have been disposed of. The amendments contained in this update change the criteria for reporting discontinued operations and enhance the reporting requirements for discontinued operations. Under the revised standard, a discontinued operation must represent a strategic shift that has or will have a major effect on an entity’s operations and financial results. Examples could include a disposal of a major line of business, a major geographical area, a major equity method investment, or other major parts of an entity. The revised standard also allows an entity to have certain continuing cash flows or involvement with the component after the disposal. Additionally, the standard requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The Company accounted for the dispose of Yin Hang as discontinued operations pursuant to this standard. Refer to Note 9 for additional details. The Company accounted for the disposal of Yin Hang during 2017 as a discontinued operation pursuant to this standard. Refer to Note 11 for additional details. |
Non-controlling interest | Non-controlling interest Non-controlling interests held 49% shares of one of subsidiary is recorded as a component of our equity, separate from the Company’s equity. Purchase or sales of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) includes all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, Accounting Standards Codification (ASC) 220, Comprehensive Income, requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. For the periods presented, the Company’s comprehensive income (loss) includes net income (loss) and foreign currency translation adjustments and is presented in the consolidated statements of operations and comprehensive income (loss). |
Earnings per share | Earnings per share The Company calculates basic earnings per share by dividing its net income (loss) by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period and the weighted average number of dilute common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is not anti-dilute or the Company has a loss. |
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. |
Loans receivable | Loans receivable Loans receivable primarily represents the principle lent to the borrowers. Management regularly reviews the aging of the loans receivable and changes in payment trends and records an allowance when management believes collection of amounts due are at risk. Loans receivable considered noncollectable are written off after exhaustive efforts at collection. |
Allowance for loan losses | Allowance for loan losses The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss history, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The Company calculates the provision amount as below: 1. General Reserve - is based on the total loan receivable balance and to be used to cover unidentified probable loan loss. The General Reserve is required to be no less than 1% of total loans receivable. 2. Specific Reserve - is an allowance set aside covering losses due to risks related to a particular country, region, industry, borrower or type of loan. The reserve rate can also be decided based on management’s estimate of loan collectability. |
Interest receivable | Interest receivable Interest receivable represents the amount of interest that has been earned as of the balance sheet date, but which has not yet been received in cash. Management regularly reviews the aging of interest receivable and changes in payment trends and records an allowance when management believes collection of amounts due are at risk. Interest receivable considered noncollectable is written off after exhaustive efforts at collection. |
Loans payable | Loans payable Loans from individuals primarily represent the principle of lending funds received from the individuals through the Company’s internet platform. The interest rates of such loans are 4% - 54% per annum with a term lasting from 6 months to two years. |
Property and equipment, net | Property and equipment, net Property and equipment is recorded at cost and consists of computer equipment, office equipment and furniture and is depreciated using the straight-line method over the estimated useful lives of the related assets (generally three years or less). Costs incurred for maintenance and repairs are expended as incurred and expenditures for major replacements and improvements are capitalized and depreciated over their estimated remaining useful lives. |
Impairment of long-lived assets | Impairment of long-lived assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances (such as a significant adverse change in market conditions that will impact the future use of the assets) indicate its net book value may not be recoverable. The Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over its estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. The Company’s management currently believes there is no impairment of its long-lived assets. There can be no assurance, however, that market conditions will not change or demand for the Company’s services will continue. Either of these could result in the future impairment of long-lived assets. As of June 30, 2018 and December 31, 2017, the Company has not experienced impairment losses on its long-lived assets for both the continuing and discontinued operations. However, there can be no assurances that demand for the Company’s products or services will continue, which could result in an impairment of long-lived assets in the future |
Fair value of financial instruments | Fair value of financial instruments FASB ASC 820, “Fair Value Measurement” 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 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 measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The tables below present information as of June 30, 2018 and December 31 2017, respectively, regarding the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy reflecting the valuation techniques utilized to determine such fair value. June 30, 2018: Level 1 Available-for-sale: Short-term investments $ - December 31, 2017: Level 1 Available-for-sale: Short-term investments $ 461,115 |
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 tax positions. As of June 30, 2018 and December 31, 2017, the Company does not have liability for any unrecognized tax benefits. The Company’s tax filings are subject to examination by the tax authorities. The tax years of 2017 and 2016 and 2015 remain open to examination by tax authorities in the PRC. Generally, the Company remains subject to PRC examination of its income tax returns annually. It believes that its income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. Its tax provision for interim periods is determined using an estimate of our annual effective tax rate based on rates established within the PRC and, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the Company updates its estimate of the annual effective tax rate, and if the estimated tax rate changes, the Company makes a cumulative adjustment. |
Going Concern | Going Concern As shown in the consolidated financial statements, the Company has generated a net loss of $1,122,120 for the six months ended June 30, 2018 and an accumulated deficit of $11,101,633 as of June 30, 2018. The Company also experienced insufficient cash flows from operations and will be required continuous financial support from the shareholder. The Company will need to raise capital to fund its operations until it is able to generate sufficient revenue to support the future development. Moreover, the Company may be continuously raising capital through the sale of debt and equity securities. The Company’s ability to achieve these objectives cannot be determined at this stage. If the Company is unsuccessful in its endeavors, it may be forced to cease operations. These consolidated financial statements do not include any adjustments that might result from this uncertainty which may include adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors have raised substantial doubt about the Company’s ability to continue as a going concern. There can be no assurances that the Company will be able to obtain adequate financing or achieve profitability. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Organization (Tables)
Organization (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization [Abstract] | |
Schedule of wholly owned subsidiaries and its Affiliated PRC Entity | Company Date of Place of Percentage of Ownership by Principal Activities Consumer Capital Group Inc. (“CCG California”) October 14, 2009 California USA 100 % U.S. holding company and headquarters of the consolidated entities. Commencing in July 2011, CCG performs the U.S. e-commerce operations. Arki Beijing E commerce Technology Corp. (“Arki Beijing”) March 6, 2008 PRC 100 % Maintains the various computer systems, software and data. Owns the intellectual property rights of the “consumer market network”. Company Date of Establishment Place of Establishment Percentage of Ownership by the Company Principal Activities America Pine Beijing Bio-tech, Inc. (“America Pine Beijing”) March 21, 2007 PRC 100 % (1) Assists in payment collection for e-commerce business. America Arki Fuxin Network Management Co. Ltd. November 26, 2010 PRC 100 % (1) Performs the principal daily e-commerce operations, transactions and management of the “consumer market network”. America Arki Network Service Beijing Co. Ltd. (“Arki Network Service” and Affiliated PRC Entity”) November 26, 2010 PRC 0 % (2) Entity under common control through relationships between Fei Gao and the Company. Holds the business license and permits necessary to conduct e-commerce operations in the PRC Yin Hang Financial Information Service (Shanghai) Co., Ltd (“Yin Hang”) November 22, 2013 PRC 0 % (4) Collects service fees calculated based on the complexity, required time, contents and commercial value of the credit risks assessment services provided to the lenders and borrowers on a third party peer to peer (“P2P”) online lending platform as of September 1, 2017, no longer owned by the Company. The results of operations of Yin Hang are reflected in the consolidated financial statements as “discontinued operations”. Company Date of Place of Percentage of Ownership by Principal Activities Company Arki Tianjin Asset Management LLP. (“Arki Tianjin”) October 22, 2015 PRC 51 % (3) Offer asset management, management consulting, internet information services as well as advertising design, production, agent, publishing. (1) Wholly foreign owned entities (WFOE) (2) VIE (3) Arki Network Service, Inc. owned entities (4) Discontinued operation on August 31, 2017 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of accompanying consolidated financial statements | June 30, December 31, 2018 2017 (Unaudited) Cash and cash equivalent $ 1,386,534 $ 686,368 Loan receivables, net 9,715,087 - Prepaid expenses 82,495 57,025 Due from inter-company 1,612,491 1,386,108 Due from related party 97,259 96,968 Other receivables 15,642 11,890 Total current assets 12,909,508 2,238,359 Property and equipment, net 43,259 50,453 Long-term investment 312,480 317,888 Total non-current assets 355,739 368,341 Total assets $ 13,265,247 $ 2,606,700 Loans payable - current portion $ 11,777,465 $ 1,192,750 Interest payable 1,213,563 531,812 Fee payables 51,747 - Accrued liabilities 5,036 203 Received in advance 601,940 - Other taxes payable 7,773 - Due to inter-company 1,951,183 1,729,803 Due to related party 244,178 250,810 Deferred tax liability 118,196 120,243 Total Current liabilities $ 15,971,081 $ 3,825,621 Loans payable, non-current portion 2,011,008 2,906,562 Total non-current liabilities $ 2,011,008 $ 2,906,562 Total liabilities 17,982,089 6,732,183 For the Six Months Ended 2018 2017 (Unaudited) (Unaudited) Net revenue $ 188,300 $ (1,099,698 ) Net loss from continuing operation $ (687,800 ) $ (1,099,698 ) Less: Net loss attributable to the non-controlling interest (284,636 ) (455,895 ) Net loss attributable to the company – continuing operations $ (403,164 ) $ (643,803 ) Net income from discontinued operations $ - $ 568,257 Less: Net income attributable to the non-controlling interest - - Net income attributable to the company – discontinued operations $ - $ 568,257 Net loss for the periods $ (687,800 ) $ (531,441 ) Net loss attributable to the Company’s shareholders $ (403,164 ) $ (75,546 ) For the Six Months Ended 2018 2017 (Unaudited) (Unaudited) Cash flow provided by (used in) operating activities $ 697,812 $ (1,185,473 ) -Net cash provided by (used in) operating activities from continuing operations 697,812 (1,250,886 ) -Net cash provided by operating activities from discontinued operations - 65,413 Cash flow (used in) provided by investing activities $ (10,112,461 ) $ 5,679 -Net cash (used in) provided by investing activities from continuing operations (10,112,461 ) 5,679 -Net cash used in investing activities from discontinued operations - - Net cash provided by financing activities $ 10,155,609 $ 1,248,378 -Net cash provided by financing activities from continuing operations 10,155,609 1,248,378 -Net cash provided by financing activities from discontinued operations - - |
Schedule of exchange rates used to translate amounts in RMB into US Dollars | As of June 30, 2018 As of December 31, 2017 (Unaudited) Balance sheet items, except for stockholders’ equity accounts 0.1511 0.1537 For the three months ended June 30, For the six months ended June 30, 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Items included in the statements of operations and comprehensive income (loss) and cash flows for the periods presented 0.1569 0.1475 0.1571 0.1463 |
Summary of financial assets and financial liabilities that are measured at fair value on a recurring basis | June 30, 2018: Level 1 Available-for-sale: Short-term investments $ - December 31, 2017: Level 1 Available-for-sale: Short-term investments $ 461,115 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans Receivable, Net/Other Receivables [Abstract] | |
Schedule of loan receivable | June 30, December 31, (Unaudited) Loans receivable - third parties $ 1,661,990 $ - Loans receivable - related parties 8,053,097 $ - Allowance for loan losses - - Loans receivable, net $ 9,715,087 $ - |
Schedule of aging of loan receivables | 1-29 days 30-59 days 60-89 days Over 90 Total Current Total Loans receivables $ - $ - $ - $ - $ - $ 9,715,087 $ 9,715,087 |
Other Receivables (Tables)
Other Receivables (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans Receivable, Net/Other Receivables [Abstract] | |
Schedule of other receivables | June 30, 2018 December 31, 2017 (Unaudited) Advances to unrelated third-parties $ 32,201 $ 28,736 Other deposits 2,400 2,400 Total $ 34,601 $ 31,136 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property and Equipment, Net [Abstract] | |
Schedule of property and equipment | As of June 30, As of December 31, 2018 2017 (Unaudited) Leasehold improvement $ 52,882 $ 53,797 Office equipment 25,711 25,748 Furniture & fixtures 6,875 6,994 Motor vehicles 20,710 20,710 106,178 107,249 Less: accumulated depreciation (34,164 ) (24,065 ) Total property & equipment, net $ 71,564 $ 83,184 |
Short-Term Investment (Tables)
Short-Term Investment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Short-Term Investment [Abstract] | |
Schedule of short-term investment | As of As of 2018 2017 (Unaudited) Short-term investment: Available-for-sale investment $ - $ 719,859 Less: Redemption - (258,744 ) Total short-term investment $ - $ 461,115 |
Loans Payable (Tables)
Loans Payable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans Payable [Abstract] | |
Schedule of loans payable | June 30, December 31, Interest rate Remaining maturity 2018 2017 (Unaudited) 4 % Within 1 year $ 107,274 $ - 12 % Within 1 year 96,697 - 13 % Within 1 year - 15,370 14 % Within 1 year 78,567 158,316 18 % Within 1 year 302,180 - 30 % Within 1 year 1,122,599 - 40%-54 % Within 1 year 10,070,148 1,019,064 40%-54 % Between 1 to 2 years 1,376,430 2,906,562 80 % Between 1 to 2 years 317,289 - 100 % Between 1 to 2 years 317,289 - $ 13,788,473 $ 4,099,312 Current portion $ 11,777,465 $ 1,192,750 Non-current portion $ 2,011,008 $ 2,906,542 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of discontinued operations | For the three months ended June 30, For the six months ended June 30, 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue $ - $ 1,092,962 $ - $ 1,631,673 Operating expenses - (269,241 ) - (629,247 ) Interest expense - (46 ) - (17 ) Other expense - (18,052 ) - - Income from discontinued operations before income taxes - 805,623 - 1,002,409 Provision for income taxes - (250,602 ) - (250,602 ) Income from discontinued operations $ - $ 555,021 $ - $ 751,807 |
Related parties [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of related party | Name of related party Relationship with the Company Zhongxin Shitong (Beijing) Credit Investigation Co., Ltd. (“Zhongxin Credit”) A related company of former shareholder of Yin Hang, Yunfeng Du |
Due to related party [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of related party | June 30, 2018 December 31, 2017 (Unaudited) Due from related party: Zhongxin Credit $ - $ 207,203 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Taxes [Abstract] | |
Schedule of income tax laws of various jurisdictions | For the three months ended For the six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Tax expense at statutory rate US 21 % 34 % 21 % 34 % Foreign income not recognized in the U.S. (21 )% (34 )% (21 )% (34 )% PRC enterprise income tax rate 25 % 25 % 25 % 25 % Changes in valuation allowance and others (25 )% (25 )% (25 )% (25 )% Effective income tax rates - - - - |
Schedule of loss before income taxes from continuing operations | For the three months ended For the six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Non-PRC $ (31,573 ) $ 14,055 $ (35,677 ) $ 3,649 PRC (211,221 ) (1,299,261 ) (1,086,443 ) (1,551,218 ) Total $ (242,794 ) $ (1,285,206 ) $ (1,122,120 ) $ (1,547,569 ) |
Schedule of deferred income tax assets and liabilities | June 30, December 31, (Unaudited) Deferred tax assets: Accrued interest payable $ 22,696 $ 23,089 Accrual 33,824 34,409 Total deferred tax assets 56,520 57,498 Less: Valuation allowance (56,520 ) (57,498 ) Total deferred tax assets, net $ - $ - June 30, December 31, (Unaudited) Deferred tax liabilities: Accrued interest receivable $ 35,616 $ 36,232 Accrued interest payable 46,470 47,275 Total deferred tax liabilities $ 82,086 $ 83,507 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | a) Related parties: Name of related parties Relationship with the Company Mr. Jianmin Gao Stockholder, Chief Executive Officer, Chief Financial Officer and Chairman of the Board of the Company Mr. Fei Gao Stockholder, Director and Chief Operating Officer Mr. Dong Yao Stockholder, Director and Chief Technology Officer Ms. Lihua Xiao Stockholder, Management of the Company Ms. Li Juan Stockholder, procurement manager Ms. Zheng Zhong Stockholder, procurement manager Mr. Hao Siheng Stockholder, Son of Lihua Xiao |
Schedule of related party balances | June 30 2018 December 31, 2017 (Unaudited) Due to related parties: Mr. Jianmin Gao $ 115,950 $ 83,747 Mr. Fei Gao 6,861 6,980 $ 122,811 $ 90,727 |
Schedule of loans receivable from related party | As of As of 2018 2017 (Unaudited) Related companies of non-controlling stockholders $ 8,053,097 $ - Total $ 8,053,097 $ - |
Schedule of loans payable from related party | June 30 2018 December 31, 2017 (Unaudited) Non-controlling stockholders $ 3,450,895 $ 2,499,224 Related companies of non-controlling stockholders 6,691,777 - $ 10,142,672 $ 2,499,224 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies [Abstract] | |
Schedule of non-cancellable operating leases minimum rentals | 2019 $ 64,297 2020 54,984 2021 54,984 2022 4,582 Total $ 178,847 |
Organization (Details)
Organization (Details) | 6 Months Ended | ||
Jun. 30, 2018 | Nov. 17, 2017 | ||
Condensed Financial Statements, Captions [Line Items] | |||
Percentage of Ownership by the Company | 51.00% | 100.00% | |
Affiliated PRC Entity [Member] | Consumer Capital Group Inc. ("CCG California") [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Date of Establishment | Oct. 14, 2009 | ||
Place of Establishment | California USA | ||
Percentage of Ownership by the Company | 100.00% | ||
Principal Activities | U.S. holding company and headquarters of the consolidated entities. Commencing in July 2011, CCG performs the U.S. e-commerce operations. | ||
Affiliated PRC Entity [Member] | Arki Beijing E commerce Technology Corp. ("Arki Beijing") [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Date of Establishment | Mar. 6, 2008 | ||
Place of Establishment | PRC | ||
Percentage of Ownership by the Company | 100.00% | ||
Principal Activities | Maintains the various computer systems, software and data. Owns the intellectual property rights of the "consumer market network". | ||
Affiliated PRC Entity [Member] | America Pine Beijing Bio-tech, Inc. ("America Pine Beijing") [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Date of Establishment | Mar. 21, 2007 | ||
Place of Establishment | PRC | ||
Percentage of Ownership by the Company | [1] | 100.00% | |
Principal Activities | Assists in payment collection for e-commerce business. | ||
Affiliated PRC Entity [Member] | America Arki Fuxin Network Management Co. Ltd. ("Arki Fuxin") [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Date of Establishment | Nov. 26, 2010 | ||
Place of Establishment | PRC | ||
Percentage of Ownership by the Company | [1] | 100.00% | |
Principal Activities | Performs the principal daily e-commerce operations, transactions and management of the "consumer market network". | ||
Affiliated PRC Entity [Member] | America Arki Network Service Beijing Co. Ltd. ("Arki Network Service" and Affiliated PRC Entity") [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Date of Establishment | Nov. 26, 2010 | ||
Place of Establishment | PRC | ||
Percentage of Ownership by the Company | [2] | 0.00% | |
Principal Activities | Entity under common control through relationships between Fei Gao and the Company. Holds the business license and permits necessary to conduct e-commerce operations in the PRC | ||
Affiliated PRC Entity [Member] | Yin Hang Financial Information Service (Shanghai) Co., Ltd ("Yin Hang") [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Date of Establishment | Nov. 22, 2013 | ||
Place of Establishment | PRC | ||
Percentage of Ownership by the Company | [3] | 0.00% | |
Principal Activities | Collects service fees calculated based on the complexity, required time, contents and commercial value of the credit risks assessment services provided to the lenders and borrowers on a third party peer to peer ("P2P") online lending platform as of September 1, 2017, no longer owned by the Company. The results of operations of Yin Hang are reflected in the consolidated financial statements as "discontinued operations". | ||
Affiliated PRC Entity [Member] | Arki Tianjin Asset management LLP. ("Arki Tianjin") [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Date of Establishment | Oct. 22, 2015 | ||
Place of Establishment | PRC | ||
Percentage of Ownership by the Company | [4] | 51.00% | |
Principal Activities | Offer asset management, management consulting, internet information services as well as advertising design, production, agent, publishing. | ||
[1] | Wholly foreign owned entities (WFOE) | ||
[2] | VIE | ||
[3] | Discontinued operation on August 31, 2017 | ||
[4] | Arki Network Service, Inc. owned entities |
Organization (Details Textual)
Organization (Details Textual) $ / shares in Units, ¥ in Millions | Dec. 01, 2016shares | Jun. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2017$ / shares | Dec. 31, 2017CNY (¥)shares | Nov. 17, 2017 | Feb. 05, 2010 |
Organization (Textual) | ||||||
Percentage of ownership by company | 51.00% | 100.00% | ||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Reverse stock split, description | As a result of which each 21.96 shares of Consumer Capital Group's common stock then issued and outstanding was converted into one share of Mondas Minerals' common stock. | |||||
Advance notice period of loans | 30 days | |||||
Interest-free loan | ¥ | ¥ 1 | |||||
Mr. Bengfort [Member] | ||||||
Organization (Textual) | ||||||
Percentage of ownership by company | 60.00% | |||||
Business acquisition issued and outstanding shares | 2,500,000 | |||||
Cash payable | $ | $ 335,000 | |||||
Cancellation shares of common stock | 1,388,889 | |||||
Percentage of pre-merger holdings | 92.60% | |||||
Arki Beijing Ecommerce Technology Corp. ("Arki Beijing") [Member] | Stock Right Transfer Agreement [Member] | ||||||
Organization (Textual) | ||||||
Percentage of ownership by company | 100.00% | |||||
America Pine (Beijing) Bio-Tech [Member] | Stock Right Transfer Agreement [Member] | ||||||
Organization (Textual) | ||||||
Percentage of ownership by company | 100.00% | |||||
America Arki Network Service Beijing Co Ltd [Member] | ||||||
Organization (Textual) | ||||||
Business acquisition issued and outstanding shares | 4,680,000 | |||||
Additional shares of common stock | 320,000 | |||||
Supplementary agreement date | Mar. 28, 2017 | |||||
Percentage of sell acquisition shares | 2.00% | |||||
America Arki Network Service Beijing Co Ltd [Member] | Share Exchange Agreement [Member] | ||||||
Organization (Textual) | ||||||
Percentage of ownership by company | 100.00% | 100.00% | ||||
Merger, Mondas Minerals [Member] | ||||||
Organization (Textual) | ||||||
Business acquisition issued and outstanding shares | 17,777,778 | |||||
America Pine Group Inc. [Member] | ||||||
Organization (Textual) | ||||||
Percentage of ownership by company | 100.00% | |||||
Consumer Capital Group Inc. [Member] | ||||||
Organization (Textual) | ||||||
Common stock, shares issued | 390,444,109 | |||||
Common stock, shares outstanding | 390,444,109 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalent | $ 1,491,515 | $ 773,421 | $ 1,491,515 | $ 773,421 | $ 725,774 |
Loan receivables, net | 1,661,990 | 1,661,990 | |||
Prepaid expenses | 83,695 | 83,695 | 58,225 | ||
Due from related party | |||||
Other receivables | 34,601 | 34,601 | 31,136 | ||
Total current assets | 11,324,898 | 11,324,898 | 1,276,250 | ||
Property and equipment, net | 71,564 | 71,564 | 83,184 | ||
Total non-current assets | 71,564 | 71,564 | 83,184 | ||
Total assets | 11,396,462 | 11,396,462 | 1,359,434 | ||
Loans payable - current portion | 2,852,578 | 2,852,578 | 93,759 | ||
Interest payable | 1,213,563 | 1,213,563 | 531,812 | ||
Fee payables | 51,747 | 51,747 | |||
Accrued liabilities | 40,218 | 40,218 | |||
Received in advance | 40,218 | 40,218 | |||
Due to related party | 122,811 | 122,811 | 90,727 | ||
Deferred tax liability | 82,086 | 82,086 | 83,507 | ||
Total Current liabilities | 13,971,431 | 13,971,431 | 2,017,265 | ||
Loans payable, non-current portion | 793,223 | 793,223 | 1,506,309 | ||
Total non-current liabilities | 2,011,008 | 2,011,008 | 2,906,562 | ||
Total liabilities | 15,982,439 | 15,982,439 | 4,923,827 | ||
Net revenue | 239,584 | 3,143 | 242,100 | 133,768 | |
Net loss from continuing operation | (242,794) | (1,285,206) | (1,122,120) | (1,547,569) | |
Less: Net loss attributable to the non-controlling interest | (28,762) | (422,856) | (284,636) | (455,895) | |
Net loss attributable to the company - continuing operations | (214,032) | (862,350) | (837,484) | (1,091,674) | |
Less: Net income attributable to the non-controlling interest | |||||
Net (loss) income attributable to the company - discontinued operations | 371,472 | 568,257 | |||
Net loss for the periods | (242,794) | $ (913,734) | (1,122,120) | (979,312) | |
Net loss attributable to the Company’s shareholders | (1,122,120) | (1,731,119) | (6,627,827) | ||
Cash flow provided by (used in) operating activities | 251,859 | 162,518 | |||
Net cash provided by (used in) operating activities from continuing operations | 251,859 | 97,105 | |||
Net cash provided by operating activities from discontinued operations | 65,413 | ||||
Cash flow (used in) provided by investing activities | (9,629,331) | 189,851 | |||
-Net cash (used in) provided by investing activities from continuing operations | (9,629,331) | 189,851 | |||
-Net cash used in investing activities from discontinued operations | |||||
Net cash provided by financing activities | 10,186,026 | (587,903) | |||
Net cash provided by financing activities from continuing operations | 10,186,026 | (587,903) | |||
Net cash provided by financing activities from discontinued operations | |||||
Variable interest entity [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalent | 1,386,534 | 1,386,534 | 686,368 | ||
Loan receivables, net | 9,715,087 | 9,715,087 | |||
Prepaid expenses | 82,495 | 82,495 | 57,025 | ||
Due from inter-company | 1,612,491 | 1,612,491 | 1,386,108 | ||
Due from related party | 97,259 | 97,259 | 96,968 | ||
Other receivables | 15,642 | 15,642 | 11,890 | ||
Total current assets | 12,909,508 | 12,909,508 | 2,238,359 | ||
Property and equipment, net | 43,259 | 43,259 | 50,453 | ||
Long-term investment | 312,480 | 312,480 | 317,888 | ||
Total non-current assets | 355,739 | 355,739 | 368,341 | ||
Total assets | 13,265,247 | 13,265,247 | 2,606,700 | ||
Loans payable - current portion | 11,777,465 | 11,777,465 | 1,192,750 | ||
Interest payable | 1,213,563 | 1,213,563 | 531,812 | ||
Fee payables | 51,747 | 51,747 | |||
Accrued liabilities | 5,036 | 5,036 | 203 | ||
Received in advance | 601,940 | 601,940 | |||
Other taxes payable | 7,773 | 7,773 | |||
Due to inter-company | 1,951,183 | 1,951,183 | 1,729,803 | ||
Due to related party | 244,178 | 244,178 | 250,810 | ||
Deferred tax liability | 118,196 | 118,196 | 120,243 | ||
Total Current liabilities | 15,971,081 | 15,971,081 | 3,825,621 | ||
Loans payable, non-current portion | 2,011,008 | 2,011,008 | 2,906,562 | ||
Total non-current liabilities | 2,011,008 | 2,011,008 | 2,906,562 | ||
Total liabilities | $ 17,982,089 | 17,982,089 | $ 6,732,183 | ||
Net revenue | 188,300 | (1,099,698) | |||
Net loss from continuing operation | (687,800) | (1,099,698) | |||
Less: Net loss attributable to the non-controlling interest | (284,636) | (455,895) | |||
Net loss attributable to the company - continuing operations | (403,164) | (643,803) | |||
Net income from discontinued operations | 568,257 | ||||
Less: Net income attributable to the non-controlling interest | |||||
Net (loss) income attributable to the company - discontinued operations | 568,257 | ||||
Net loss for the periods | (687,800) | (531,441) | |||
Net loss attributable to the Company’s shareholders | (687,800) | (1,099,698) | |||
Cash flow provided by (used in) operating activities | 697,812 | (75,546) | |||
Net cash provided by (used in) operating activities from continuing operations | 697,812 | (1,250,886) | |||
Net cash provided by operating activities from discontinued operations | 65,413 | ||||
Cash flow (used in) provided by investing activities | (10,112,461) | 5,679 | |||
-Net cash (used in) provided by investing activities from continuing operations | (10,112,461) | 5,679 | |||
-Net cash used in investing activities from discontinued operations | |||||
Net cash provided by financing activities | 10,155,609 | 1,248,378 | |||
Net cash provided by financing activities from continuing operations | 10,155,609 | 1,248,378 | |||
Net cash provided by financing activities from discontinued operations |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |||||
Balance sheet items, except for stockholders' equity, as of years ended | 0.1511 | 0.1511 | 0.1537 | ||
Items included in the statements of operations and comprehensive income (loss) and cash flows for the periods presented | 0.1569 | 0.1475 | 0.1571 | 0.1463 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Short-term investments | $ 461,115 | |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Short-term investments | $ 461,115 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Nov. 17, 2017 | |
Summary of Significant Accounting Policies (Textual) | ||||||
Loans receivable, description | The General Reserve is required to be no less than 1% of total loans receivable. | |||||
Loans receivable variable rate, description | <div>The interest rates of such loans are 4% - 54% per annum with a term lasting from 6 months to two years.</div> | |||||
Intangible assets estimated useful lives computed method, description | Straight-line method over the estimated useful lives of the related assets (generally three years or less). | |||||
Foreign currency translation adjustment | $ (101,036) | $ 147,390 | ||||
Percentage of ownership by company | 51.00% | 51.00% | 100.00% | |||
Noncontrolling interests owned subsidiaries, percentage | 49.00% | 49.00% | ||||
Income tax benefit, percentage | 50.00% | |||||
Net loss | $ (242,794) | $ (913,734) | $ (1,122,120) | $ (979,312) | ||
Accumulated deficit | $ (11,101,633) | $ (11,101,633) | $ (10,264,149) |
Loans Receivable, Net (Details)
Loans Receivable, Net (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of loan receivables | ||
Loans receivable - third parties | $ 1,661,990 | |
Loans receivable - related parties | 8,053,097 | |
Allowance for loan losses | ||
Total loans | $ 9,715,087 |
Loans Receivable, Net (Details
Loans Receivable, Net (Details 1) | Jun. 30, 2018USD ($) |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total past due | |
Current | 9,715,087 |
Total loans | 9,715,087 |
1-29 days past due [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total past due | |
30-59 days past due [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total past due | |
60 to 89 days past due [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total past due | |
Over 90 days past due [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total past due |
Loans Receivable, Net (Detail_2
Loans Receivable, Net (Details Textual) - USD ($) | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Loan Receivables, Net (Textual) | |||
Loan receivables, net | $ 9,715,087 | ||
Monthly interest rate | 6.00% | 6.00% | |
Loans maturity term | 3 months | ||
Allowance for loan losses | |||
Minimum [Member] | |||
Loan Receivables, Net (Textual) | |||
Monthly interest rate | 8.00% | 8.00% | |
Maximum [Member] | |||
Loan Receivables, Net (Textual) | |||
Monthly interest rate | 30.00% | 30.00% |
Other Receivables (Details)
Other Receivables (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Loans Receivable, Net/Other Receivables [Abstract] | ||
Advances to unrelated third-parties | $ 32,201 | $ 28,736 |
Other deposits | 2,400 | 2,400 |
Total | $ 34,601 | $ 31,136 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property & equipment, gross | $ 106,178 | $ 107,249 |
Less: accumulated depreciation | (34,164) | (24,065) |
Total property & equipment, net | 71,564 | 83,184 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property & equipment, gross | 52,882 | 53,797 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property & equipment, gross | 25,711 | 25,748 |
Furniture & fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property & equipment, gross | 6,875 | 6,994 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property & equipment, gross | $ 20,710 | $ 20,710 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Property and Equipment, Net (Textual) | ||
Depreciation expense | $ 11,013 | $ 7,147 |
Short-Term Investment (Details)
Short-Term Investment (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Short-term investment: | ||
Available-for-sale investment | $ 719,859 | |
Less: Redemption | (258,744) | |
Total short-term investment | $ 461,115 |
Short-Term Investment (Details
Short-Term Investment (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Short-Term Investment [Abstract] | ||
Interest income earned from short-term investments | $ 24,115 | $ 8,302 |
Loans Payable (Details)
Loans Payable (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Loans payable | $ 13,788,473 | $ 4,099,312 |
Current portion | 2,852,578 | 93,759 |
Non-current portion | $ 793,223 | $ 1,506,309 |
Loans Payable One [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.00% | 4.00% |
Expiration date, description | Within 1 year | Within 1 year |
Loans payable | $ 107,274 | |
Loans Payable Two [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 12.00% | 12.00% |
Expiration date, description | Within 1 year | Within 1 year |
Loans payable | $ 96,697 | |
Loans Payable Three [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 13.00% | 13.00% |
Expiration date, description | Within 1 year | Within 1 year |
Loans payable | $ 15,370 | |
Loans Payable Four [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 14.00% | 14.00% |
Expiration date, description | Within 1 year | Within 1 year |
Loans payable | $ 78,567 | $ 158,316 |
Loans Payable Five [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 18.00% | 18.00% |
Expiration date, description | Within 1 year | Within 1 year |
Loans payable | $ 302,180 | |
Loans Payable Six [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 30.00% | 30.00% |
Expiration date, description | Within 1 year | Within 1 year |
Loans payable | $ 1,122,599 | |
Loans Payable Seven [Member] | ||
Debt Instrument [Line Items] | ||
Expiration date, description | Within 1 year | Within 1 year |
Loans payable | $ 10,070,148 | $ 1,019,064 |
Loans Payable Seven [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 40.00% | 40.00% |
Loans Payable Seven [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 54.00% | 54.00% |
Loans Payable Eight [Member] | ||
Debt Instrument [Line Items] | ||
Expiration date, description | Between 1 to 2 years | Between 1 to 2 years |
Loans payable | $ 1,376,430 | $ 2,906,562 |
Loans Payable Eight [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 40.00% | 40.00% |
Loans Payable Eight [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 54.00% | 54.00% |
Loans Payable Nine [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 80.00% | 80.00% |
Expiration date, description | Between 1 to 2 years | Between 1 to 2 years |
Loans payable | $ 317,289 | |
Loans Payable Ten [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 100.00% | 100.00% |
Expiration date, description | Between 1 to 2 yearr | Between 1 to 2 yearr |
Loans payable | $ 317,289 |
Loans Payable (Details Textual)
Loans Payable (Details Textual) - USD ($) | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Loans Payable (Textual) | |||
Loans payable to related parties | $ 10,142,672 | $ 2,499,224 | |
Loans payable to third parties | 3,645,801 | $ 1,600,068 | |
Interest | $ 718,209 | $ 860,379 | |
Loan maturity, description | All the loans have maturities from six months to two years with interest rates varying from 4% to 100% per annum. |
Payable to Shareholder (Details
Payable to Shareholder (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Payable to Shareholder (Textual) | ||
Advance amount of shareholders | $ 109,009 | $ 117,767 |
Annual interest rate | 6.00% | |
Caesar Capital Management Ltd. [Member] | ||
Payable to Shareholder (Textual) | ||
Expiration date, description | The loans were borrowed by the Company for operating purposes, without collateral, and were due between July 2013 to November 2013. |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | $ 1,092,962 | $ 1,631,673 | ||
Operating expenses: | (323,547) | (629,247) | ||
Interest expense | (46) | (17) | ||
Other expense | (201,602) | (183,550) | ||
Income from discontinued operations before income taxes | 567,767 | 818,859 | ||
Provision for income taxes | (196,295) | (250,602) | ||
Income from discontinued operations | $ 371,472 | $ 568,257 |
Discontinued Operations (Deta_2
Discontinued Operations (Details 1) | 6 Months Ended |
Jun. 30, 2018 | |
Zhongxin Shitong (Beijing) Credit Investigation Co., Ltd. ("Zhongxin Credit") [Member] | |
Related parties: | |
Relationship with the Company | <div>A related company of former shareholder of Yin Hang, Yunfeng Du</div> |
Discontinued Operations (Deta_3
Discontinued Operations (Details 2) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Zhongxin Credit [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Due from related party: | $ 207,203 |
Discontinued Operations (Deta_4
Discontinued Operations (Details Textual) - USD ($) | Dec. 01, 2016 | Dec. 31, 2016 | Jun. 30, 2018 | Dec. 31, 2017 |
Zhongxin Credit [Member] | ||||
Discontinued Operations (Textual) | ||||
Due from related parties | $ 207,203 | |||
Borrowed | $ 418,041 | |||
America Arki Network Service Beijing Co., Ltd [Member] | ||||
Discontinued Operations (Textual) | ||||
Business acquisition issued and outstanding shares | 4,680,000 | |||
Additional shares of common stock | 320,000 | |||
Supplementary agreement date | Mar. 28, 2017 | |||
Percentage of sell acquisition shares | 2.00% | |||
Percentage of acquire of capital stock | 100.00% | |||
Yin Hang [Member] | ||||
Discontinued Operations (Textual) | ||||
Due from related parties | $ 212,450 |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |||||
Noncontrolling interest | $ (1,545,312) | $ (1,545,312) | $ (1,260,676) | ||
Net loss | $ (28,762) | $ (422,856) | $ (284,636) | $ (455,895) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Taxes [Abstract] | ||||
Tax expense at statutory rate US | 21.00% | 34.00% | 21.00% | 34.00% |
Foreign income not recognized in the U.S. | (21.00%) | (34.00%) | (21.00%) | (34.00%) |
PRC enterprise income tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Changes in valuation allowance and others | (25.00%) | (25.00%) | (25.00%) | (25.00%) |
Effective income tax rates |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Taxes [Line Items] | ||||
Total | $ (242,794) | $ (1,285,206) | $ (1,122,120) | $ (1,547,569) |
Non-PRC [Member] | ||||
Income Taxes [Line Items] | ||||
Total | (31,573) | 14,055 | (35,677) | 3,649 |
PRC [Member] | ||||
Income Taxes [Line Items] | ||||
Total | $ (211,221) | $ (1,299,261) | $ (1,086,443) | $ (1,551,218) |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Accrued interest payable | $ 22,696 | $ 23,089 |
Accrual | 33,824 | 34,409 |
Total deferred tax assets | 56,520 | 57,498 |
Less: Valuation allowance | (56,520) | (57,498) |
Total deferred tax assets, net | ||
Deferred tax liabilities: | ||
Accrued interest receivable | 35,616 | 36,232 |
Accrued interest payable | 46,470 | 47,275 |
Total deferred tax liabilities | $ 82,086 | $ 83,507 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Taxes (Textual) | |||||
Deferred tax asset | $ 56,520 | $ 56,520 | $ 57,498 | ||
Deferred tax liability | 82,086 | 82,086 | 83,507 | ||
Valuation allowance | $ 56,520 | $ 56,520 | $ 57,498 | ||
Effective income tax rates | |||||
Arki Beijing E-commerce Technology Corp. [Member] | |||||
Income Taxes (Textual) | |||||
Effective income tax rates | 25.00% | ||||
America Pine Beijing Bio-Tech, Inc. [Member] | |||||
Income Taxes (Textual) | |||||
Effective income tax rates | 25.00% | ||||
America Arki (Fuxin) Network Management Co. Ltd. [Member] | |||||
Income Taxes (Textual) | |||||
Effective income tax rates | 25.00% | ||||
America Arki Network Service Beijing Co. Ltd. [Member] | |||||
Income Taxes (Textual) | |||||
Effective income tax rates | 25.00% | ||||
Yin Hang Financial Information Service (Shanghai) Co., Limited [Member] | |||||
Income Taxes (Textual) | |||||
Effective income tax rates | 25.00% | ||||
Company generated taxable income | $ 1,076,308 | ||||
America Arki (Tianjin) Capital Management Partnership [Member] | |||||
Income Taxes (Textual) | |||||
Effective income tax rates | 25.00% | ||||
Consumer Capital Group Inc. [Member] | |||||
Income Taxes (Textual) | |||||
Effective income tax rates | 21.00% |
Related Party Transactions (Det
Related Party Transactions (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Mr. Jianmin Gao [Member] | |
Relationship with the Company | Stockholder, Chief Executive Officer, Chief Financial Officer and Chairman of the Board of the Company |
Mr. Fei Gao [Member] | |
Relationship with the Company | Stockholder, Director and Chief Operating Officer |
Mr. Dong Yao [Member] | |
Relationship with the Company | Stockholder, Director and Chief Technology Officer |
Ms. Lihua Xiao [Member] | |
Relationship with the Company | Stockholder, Management of the Company |
Ms. Li Juan [Member] | |
Relationship with the Company | Stockholder, procurement manager |
Ms. Zheng Zhong [Member] | |
Relationship with the Company | Stockholder, Son of Lihua Xiao |
Mr. Hao Siheng [Member] | |
Relationship with the Company | Stockholder, procurement manager |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Due to related parties: | ||
Due to related parties | $ 122,811 | $ 90,727 |
Mr. Jianmin Gao [Member] | ||
Due to related parties: | ||
Due to related parties | 115,950 | 83,747 |
Mr. Fei Gao [Member] | ||
Due to related parties: | ||
Due to related parties | $ 6,861 | $ 6,980 |
Related Party Transactions (D_3
Related Party Transactions (Details 2) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Related companies of non-controlling stockholders | $ 8,053,097 | |
Total | $ 8,053,097 |
Related Party Transactions (D_4
Related Party Transactions (Details 3) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Related Party Transactions [Abstract] | ||
Non-controlling stockholders | $ 3,450,895 | $ 2,499,244 |
Related companies of non-controlling stockholders | 6,691,777 | |
Loans payable to related parties | $ 10,142,672 | $ 2,499,244 |
Related Party Transactions (D_5
Related Party Transactions (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transactions [Abstract] | ||
Interest income derived | $ 133,962 | $ 133,768 |
Loans receivable from related parties | 66,981 | 0 |
Interest expenses | $ 471,452 | $ 562,232 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Jun. 30, 2018USD ($) |
Commitments and Contingencies [Abstract] | |
2019 | $ 64,297 |
2020 | 54,984 |
2021 | 54,984 |
2022 | 4,582 |
Total | $ 178,847 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Commitments and Contingencies (Textual) | |||
Operating leases, term | The terms of such non-cancellable operating leases are one to five years. | ||
Rent expense | $ 36,212 | $ 8,758 |
Concentration of Credit and B_2
Concentration of Credit and Business Risks (Details) | Dec. 15, 2014USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 15, 2014CNY (¥) |
PRC [Member] | ||||
Concentration of Credit and Business Risks (Textual) | ||||
Bank balances | $ 1,470,675 | $ 706,771 | ||
Mr. Fei Gao [Member] | ||||
Concentration of Credit and Business Risks (Textual) | ||||
Credit agreement term, description | The Company entered into six year agreements with the Chief Operating Officer, Mr. Fei Gao, for a compensation of approximately $2,655 (RMB 18,000) per month. | |||
Compensation payable | $ 2,655 | ¥ 18,000 |