Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document and Entity Information [Abstract] | ' |
Document Type | 'S-1 |
Document Period End Date | 14-Jul-14 |
Amendment Flag | 'false |
Entity Registrant Name | 'XcelMobility Inc. |
Entity Central Index Key | '0001465509 |
Entity Filer Category | 'Smaller Reporting Company |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS(USD ($)) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' | ' |
Cash and cash equivalents | $87,847 | $431,707 | $98,739 |
Trade accounts receivable | 2,095,680 | 1,662,760 | 19,309 |
Other receivables, net | 2,409,968 | 431,824 | 5,615 |
Inventories | 936,141 | 2,101,585 | 348 |
Prepaid expenses | ' | ' | 8,887 |
Prepaid VAT | 239,946 | 188,586 | ' |
Advances to suppliers | ' | 913 | 3,372 |
Total Current Assets | 5,769,582 | 4,817,375 | 136,270 |
Property and equipment, net | 84,285 | 92,393 | 90,375 |
Intangible assets, net | 1,294,017 | 1,294,017 | ' |
Goodwill | 446,419 | 446,419 | ' |
TOTAL ASSETS | 7,594,303 | 6,650,204 | 226,645 |
Current liabilities: | ' | ' | ' |
Short-term bank loans | 2,272,026 | ' | ' |
Accounts payable | 1,274,580 | 2,814,906 | 76,594 |
Other payables and accrued expenses | 1,293,731 | 1,247,549 | 109,147 |
Other taxes payables | ' | 319 | ' |
Deferred revenue | 19,062 | 19,223 | 78,811 |
Convertible notes, net of debt discount | 95,631 | 60,703 | 46,040 |
Derivative liability | 356,700 | 384,598 | 423,480 |
Accrued interest | 5,386 | 5,223 | 140,520 |
Net deferred tax liability | 323,503 | 323,503 | ' |
Total Current Liabilities | 5,640,619 | 4,856,024 | 874,592 |
Convertible notes, net of debt discount | 654,627 | 621,872 | 314,967 |
Accrued interest | 168,370 | 147,654 | ' |
Deferred revenue | ' | ' | 20,130 |
Total Liabilities | 6,463,616 | 5,625,550 | 1,209,689 |
Stockholders' equity: | ' | ' | ' |
Preferred stock | ' | ' | ' |
Common Stock | 73,128 | 73,128 | 60,000 |
Shares unissued | 2,100,000 | 2,100,000 | ' |
Additional paid in capital | 713,620 | 713,620 | 131,562 |
Retained earnings (accumulated deficit) | -1,613,522 | -1,712,498 | -1,207,650 |
Accumulated other comprehensive income (loss) | -142,539 | -149,596 | 33,044 |
Total Shareholders' (Deficit) Equity | 1,130,687 | 1,024,654 | -983,044 |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | $7,594,303 | $6,650,204 | $226,645 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' | ' |
Other receivables, allowance for doubtful accounts | $3,578 | $3,500 | $3,500 |
Property and equipment, accumulated depreciation | $290,872 | $285,796 | $65,565 |
Preferred stock, par value per share | $0.00 | $0.00 | $0.00 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value per share | $0.00 | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 73,127,686 | 73,127,686 | 60,000,000 |
Common Stock, shares outstanding | 73,127,686 | 73,127,686 | 60,000,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS [Abstract] | ' | ' | ' | ' |
Revenue | $844,528 | $26,374 | $2,781,745 | $277,406 |
Cost of Revenue | 134,852 | ' | 494,485 | 17,953 |
Gross Profit | 709,676 | 26,374 | 2,287,260 | 259,453 |
Operating expenses: | ' | ' | ' | ' |
Selling expense | 35,017 | 4,487 | 298,496 | 41,136 |
General and administrative expenses | 519,121 | 281,932 | 2,372,864 | 986,908 |
Total Operating Expenses | 554,138 | 286,419 | 2,671,360 | 1,028,044 |
Income (Loss) from Operations | 155,586 | -260,045 | -384,100 | -768,591 |
Other income (expense): | ' | ' | ' | ' |
Interest income | ' | 35 | 274 | 853 |
Interest expense | -31,636 | -12,540 | -42,025 | -122,268 |
Amortisation of debt discount | -75,437 | -112,522 | -504,195 | -340,816 |
Gain on derivatives | 27,898 | ' | 188,176 | 669,329 |
Other income-government grant | ' | ' | 237,488 | 126,724 |
Other income | 22,613 | 13,964 | 408 | ' |
Other expenses | ' | ' | -874 | ' |
Total Other Income (Expense) | -56,562 | -111,063 | -120,748 | 333,822 |
Income (Loss) Before Taxes | 98,976 | -371,108 | -504,848 | -434,769 |
Income tax expense | ' | ' | ' | ' |
Net Income (Loss) | 98,976 | -371,108 | -504,848 | -434,769 |
Foreign currency translation adjustment | 7,057 | -4,178 | -182,640 | 2,381 |
Comprehensive income (loss) | $106,033 | ($375,286) | ($687,488) | ($432,388) |
Basic and diluted loss per share | ' | ' | ($0.01) | ($0.01) |
Earnings (loss) per share - Basic | $0.00 | ($0.01) | ($0.01) | ($0.01) |
Earnings (loss) per share - Dilutive | $0.00 | ($0.01) | ($0.01) | ($0.01) |
Basic and diluted weighted average number of shares outstanding | ' | ' | 68,606,084 | 60,000,000 |
Basic weighted average number of shares outstanding | 73,127,686 | 60,195,591 | 68,606,084 | 60,000,000 |
Diluted weighted average number of shares outstanding | 77,644,969 | 60,195,591 | 68,606,084 | 60,000,000 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) (USD $) | Common Stock [Member] | Shares Subscribed But Unissued [Member] | Additional Paid in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Beginning balance at Dec. 31, 2011 | $60,000 | ' | $72,248 | ($772,881) | $30,663 | ($609,970) |
Beginning balance (shares) at Dec. 31, 2011 | 60,000,000 | ' | ' | ' | ' | ' |
Stock based compensation to directors | ' | ' | 59,314 | ' | ' | 59,314 |
Net (loss) income for the year | ' | ' | ' | -434,769 | ' | -434,769 |
Foreign currency translation difference | ' | ' | ' | ' | 2,381 | 2,381 |
Ending balance at Dec. 31, 2012 | 60,000 | ' | 131,562 | -1,207,650 | 33,044 | -983,044 |
Ending balance (shares) at Dec. 31, 2012 | 60,000,000 | ' | ' | ' | ' | ' |
Stock issued in private placements | 6,000 | ' | 294,000 | ' | ' | 300,000 |
Stock issued in private placements (shares) | 6,000,000 | ' | ' | ' | ' | ' |
Stock based compensation to directors | 150 | ' | -47,464 | ' | ' | -47,314 |
Stock based compensation to directors (shares) | 150,000 | ' | ' | ' | ' | ' |
Stock issued for service | 2,700 | ' | 186,300 | ' | ' | 189,000 |
Stock issued for service (shares) | 2,700,000 | ' | ' | ' | ' | ' |
Conversion of convertible notes into common stock | 4,278 | ' | 149,222 | ' | ' | 153,000 |
Conversion of convertible notes into common stock (shares) | 4,277,686 | ' | ' | ' | ' | ' |
Acquisition of a subsidiary | ' | 2,100,000 | ' | ' | ' | 2,100,000 |
Net (loss) income for the year | ' | ' | ' | -504,848 | ' | -504,848 |
Foreign currency translation difference | ' | ' | ' | ' | -182,640 | -182,640 |
Ending balance at Dec. 31, 2013 | $73,218 | $2,100,000 | $713,620 | ($1,712,498) | ($149,596) | $1,024,654 |
Ending balance (shares) at Dec. 31, 2013 | 73,127,686 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows from Operating Activities: | ' | ' | ' | ' |
Net income (loss) | $98,976 | ($371,108) | ($504,848) | ($434,769) |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ' | ' | ' | ' |
Depreciation | 5,744 | 7,409 | 36,990 | 20,381 |
Amortization | ' | ' | ' | 379 |
Stock based compensation expenses | ' | 15,114 | 141,686 | 59,314 |
Amortization of debt discount | 75,437 | 112,522 | 504,195 | 340,816 |
Fair value adjustment on derivative liability | -27,898 | ' | -188,176 | -669,329 |
Other changes in operating assets and liabilities: | ' | ' | ' | ' |
Trade accounts receivable | -432,920 | -4,834 | -230,219 | -19,302 |
Other receivables and prepayment | -2,029,504 | 4,040 | -965,660 | -159 |
Advances to suppliers | 913 | 3,385 | 2,522 | -3,371 |
Inventory | 1,165,444 | ' | -65,427 | -348 |
Accounts payable | -1,540,327 | -76,594 | -184,386 | 35,211 |
Accrued interest | 20,879 | -14,888 | 12,357 | 122,266 |
Other taxes payable | -319 | -740 | 119,991 | 1,787 |
Other payables and accrued expenses | 38,429 | 576,255 | 1,703,601 | 62,301 |
Deferred revenue | -161 | -35,785 | -81,436 | -204,959 |
Net cash provided by (used for) operating activities | -2,625,307 | 214,776 | 301,190 | -689,782 |
Cash flows provided by (used for) investing activities: | ' | ' | ' | ' |
Proceeds from disposal of property, plant and equipment | 2,365 | ' | ' | ' |
Purchase of property, plant and equipment, net of value added tax refunds received | ' | -1,158 | -13,192 | -44,328 |
Net cash provided by (used for) investing activities | 2,365 | -1,158 | -13,192 | -44,328 |
Financing activities: | ' | ' | ' | ' |
Proceeds from notes payable | ' | ' | 37,500 | 213,000 |
Proceeds from new bank loans obtained | 2,272,026 | ' | ' | ' |
Net cash provided by (used for) financing activities | 2,272,026 | ' | 37,500 | 213,000 |
Effect of exchange rate changes on cash | 7,056 | -3,677 | 7,469 | 4,641 |
Net Change in Cash and Cash Equivalents | -343,860 | 209,941 | 332,967 | -516,469 |
Cash and Cash Equivalents at Beginning of Year | 431,707 | 98,739 | 98,739 | 615,208 |
Cash and Cash Equivalents at End of Year | 87,847 | 308,680 | 431,707 | 98,739 |
Supplemental disclosure of cash flow information: | ' | ' | ' | ' |
Interest | 31,636 | ' | ' | ' |
Income taxes | ' | ' | ' | ' |
Organization_and_Nature_of_Bus
Organization and Nature of Business | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Organization and Nature of Business [Abstract] | ' | ' |
Organization and Nature of Business | ' | ' |
1. Organization and Nature of Business | 1. Organization and Nature of Business | |
XcelMobility Inc. | XcelMobility Inc. | |
XcelMobility Inc. ("Xcel" or the "Company") was incorporated under the laws of the State of Nevada on December 27, 2007. Initial operations have included organization and incorporation, target market identification, marketing plans, and capital formation. The Company was no longer a development stage company after the Company started to generate revenues from various application of mobile device. | XcelMobility Inc. ("Xcel" or the "Company") was incorporated under the laws of the State of Nevada on December 27, 2007. Initial operations have included organization and incorporation, target market identification, marketing plans, and capital formation. The Company was no longer a development stage company after the Company started to generate revenues from various application of mobile device. | |
Share Cancellation | Share Cancellation | |
On August 11, 2011, Moses Carlo Supera Paez, a director and shareholder of the Company, surrendered 17,700,000 shares of common stock for cancellation. Further, on August 30, 2011, Mr. Paez surrendered an additional 7,350,000 shares of our common stock for cancellation and Mr. Jaime Brodeth, one of our former directors and a shareholder, surrendered 22,950,000 shares of our common stock for cancellation. As such, immediately prior to the Exchange Transaction as further discussed in detail later and after giving effect to the foregoing cancellations, the Company had 29,700,000 shares of common stock issued and outstanding. Immediately after the Exchange Transaction, the Company had 60,000,000 shares of common stock issued and outstanding. | ||
On August 11, 2011, Moses Carlo Supera Paez, a director and shareholder of the Company, surrendered 17,700,000 shares of common stock for cancellation. Further, on August 30, 2011, Mr. Paez surrendered an additional 7,350,000 shares of our common stock for cancellation and Mr. Jaime Brodeth, one of our former directors and a shareholder, surrendered 22,950,000 shares of our common stock for cancellation. As such, immediately prior to the Exchange Transaction as further discussed in detail later and after giving effect to the foregoing cancellations, the Company had 29,700,000 shares of common stock issued and outstanding. Immediately after the Exchange Transaction, the Company had 60,000,000 shares of common stock issued and outstanding. | ||
CC Mobility Limited | ||
CC Mobility Limited ("CC Mobility"), a company organized under the laws of Hong Kong, was formed on May 3, 2011 and has authorized capital of 10,000 shares with registered capital of HK$1,000 at HK$1 per share. At formation, CC Mobility Limited has issued 560 shares to CC Wireless Limited, a company organized under the laws of Hong Kong, and 440 shares to Sheen Ventures Limited, a company organized under the laws of Hong Kong. The Company is a holding company formed for the purpose of acquiring a target company to effect a reverse merger with a U.S. reporting company. The reverse merger was completed on August 30, 2011. | CC Mobility Limited | |
CC Mobility Limited ("CC Mobility"), a company organized under the laws of Hong Kong, was formed on May 3, 2011 and has authorized capital of 10,000 shares with registered capital of HK$1,000 at HK$1 per share. At formation, CC Mobility Limited has issued 560 shares to CC Wireless Limited, a company organized under the laws of Hong Kong, and 440 shares to Sheen Ventures Limited, a company organized under the laws of Hong Kong. The Company is a holding company formed for the purpose of acquiring a target company to effect a reverse merger with a U.S. reporting company. The reverse merger was completed on August 30, 2011. | ||
CC Power Investment Consulting Co. Ltd. | ||
Shenzhen CC Power Investment Consulting Co. Ltd. ("CC Investment"), a wholly-owned subsidiary of CC Mobility, was incorporated on July 27, 2011 under the laws of the People's Republic of China ("PRC") as a wholly foreign owned limited liability company. The required registered capital is $2,000,000 and as of December 31, 2013, $400,000 of the registered capital has been contributed. | CC Power Investment Consulting Co. Ltd. | |
Shenzhen CC Power Investment Consulting Co. Ltd. ("CC Investment"), a wholly-owned subsidiary of CC Mobility, was incorporated on July 27, 2011 under the laws of the People's Republic of China ("PRC") as a wholly foreign owned limited liability company. The required registered capital is $2,000,000 and as of December 31, 2013, $400,000 of the registered capital has been contributed. | ||
Shenzhen CC Power Corporation | ||
Shenzhen CC Power Corporation ("CC Power") is a Chinese enterprise organized in the PRC on March 13, 2003 in accordance with the Laws of the People's Republic of China. The required registered capital of CC Power was approximately $1,547,000 (RMB 10,000,000) and as of December 31, 2013, CC Power has paid up approximately $346,000 (RMB2,526,000). In March 2011, Mr. Ryan Ge sold his 5% ownership in CC Power to the other shareholder, Xili Wang ("CC Power Shareholder"). Ms. Wang holds 100% ownership interest in CC Power at the end of the financial period. | Shenzhen CC Power Corporation | |
Shenzhen CC Power Corporation ("CC Power") is a Chinese enterprise organized in the PRC on March 13, 2003 in accordance with the Laws of the People's Republic of China. The required registered capital of CC Power was approximately $1,547,000 (RMB 10,000,000) and as of December 31, 2013, CC Power has paid up approximately $346,000 (RMB2,526,000). In March 2011, Mr. Ryan Ge sold his 5% ownership in CC Power to the other shareholder, Xili Wang ("CC Power Shareholder"). Ms. Wang holds 100% ownership interest in CC Power as of December 31, 2013 and 2012. | ||
CC Power is primarily engaged in the research, development and commercialization of applications for mobile devices that access the Internet utilizing mobile phone networks. CC Power's principal activity is the design, testing sale and support of software to support mobile internet applications on cellular phones, smart phones, tablets and mobile computers in China. The principal product designed and built by CC Power is its Mach 5 Accelerator. This product has been independently tested by all 3 mobile phone carriers in China and accesses the internet 5 times faster than with other mobile browsers. The speed of the Mach 5 browser enables CC Power to develop other mobile software that can leverage off the Mach 5 products speed of processing. In order to support CC Power products the Company has built a series of server locations throughout China. CC Power sells its products to corporations directly, to individual users via the company's website and retail locations, through distribution agents and through all three mobile phone carriers in China. | ||
CC Power is primarily engaged in the research, development and commercialization of applications for mobile devices that access the Internet utilizing mobile phone networks. CC Power's principal activity is the design, testing sale and support of software to support mobile internet applications on cellular phones, smart phones, tablets and mobile computers in China. The principal product designed and built by CC Power is its Mach 5 Accelerator. This product has been independently tested by all 3 mobile phone carriers in China and accesses the internet 5 times faster than with other mobile browsers. The speed of the Mach 5 browser enables CC Power to develop other mobile software that can leverage off the Mach 5 products speed of processing. In order to support CC Power products the Company has built a series of server locations throughout China. CC Power sells its products to corporations directly, to individual users via the company's website and retail locations, through distribution agents and through all three mobile phone carriers in China. | ||
As noted above, the primary purpose of CC Power is to develop software that allows user faster access to the Internet. CC Power's primary focus is in the mobile Internet market, with a focus on providing software that significantly increases the speed that users of smartphones, tablets and laptops can access the Internet over cellular phone networks. CC Power also uses their technology to increase the speed at which users of Virtual Private Networks can access data from their networks. | ||
As noted above, the primary purpose of CC Power is to develop software that allows user faster access to the Internet. CC Power's primary focus is in the mobile Internet market, with a focus on providing software that significantly increases the speed that users of smartphones, tablets and laptops can access the Internet over cellular phone networks. CC Power also uses their technology to increase the speed at which users of Virtual Private Networks can access data from their networks. | ||
Share Exchange Agreement | ||
Share Exchange Agreement | ||
On August 30, 2011, the Company completed a voluntary share exchange transaction with Shenzhen CC Power Corporation, CC Mobility Limited and the shareholders of CC Mobility ("Selling Shareholders") pursuant to a Share Exchange Agreement dated July 5, 2011 (the "Exchange Agreement"). In accordance with the terms of Exchange Agreement, on the Closing Date, Xcel issued 30,300,000 shares of its common stock to the Selling Shareholders in exchange for 100% of the issued and outstanding capital stock of CC Mobility (the "Exchange Transaction"). As a result of the Exchange Transaction, there was a change of control in the Company as the Selling Shareholders of CC Mobility acquired 50.5% of Xcel's issued and outstanding common stock, CC Mobility became Xcel's wholly-owned subsidiary, and Xcel acquired the business and operations of CC Mobility and CC Power. | ||
On August 30, 2011, the Company completed a voluntary share exchange transaction with Shenzhen CC Power Corporation, CC Mobility Limited and the shareholders of CC Mobility ("Selling Shareholders") pursuant to a Share Exchange Agreement dated July 5, 2011 (the "Exchange Agreement"). In accordance with the terms of Exchange Agreement, on the Closing Date, Xcel issued 30,300,000 shares of its common stock to the Selling Shareholders in exchange for 100% of the issued and outstanding capital stock of CC Mobility (the "Exchange Transaction"). As a result of the Exchange Transaction, there was a change of control in the Company as the Selling Shareholders of CC Mobility acquired 50.5% of Xcel's issued and outstanding common stock, CC Mobility became Xcel's wholly-owned subsidiary, and Xcel acquired the business and operations of CC Mobility and CC Power. | ||
For accounting purposes, the merger transaction is being accounted for as a reverse merger. The transaction has been treated as a recapitalization of CC Mobility and its subsidiaries, with Xcel (the legal acquirer of CC Mobility and its subsidiaries) considered the accounting acquiree and CC Mobility whose management took control of Xcel (the legal acquire of CC Mobility) considered the accounting acquirer. | ||
For accounting purposes, the merger transaction is being accounted for as a reverse merger. The transaction has been treated as a recapitalization of CC Mobility and its subsidiaries, with Xcel (the legal acquirer of CC Mobility and its subsidiaries) considered the accounting acquiree and CC Mobility whose management took control of Xcel (the legal acquire of CC Mobility) considered the accounting acquirer. | ||
CC Power is owned by an individual but controlled by CC Investment through a series of contractual arrangements that transferred all of the benefits and responsibilities for the operations of CC Power to CC Investment. CC Investment accounts for CC Power as a Variable Interest Entity ("VIE") under ASC 810 "Consolidation." Accordingly, CC Investment consolidates CC Power's results, assets and liabilities. | ||
CC Power is owned by an individual but controlled by CC Investment through a series of contractual arrangements that transferred all of the benefits and responsibilities for the operations of CC Power to CC Investment. CC Investment accounts for CC Power as a Variable Interest Entity ("VIE") under ASC 810 "Consolidation." Accordingly, CC Investment consolidates CC Power's results, assets and liabilities. | ||
Shenzhen Jifu Communication Technology Co., Ltd. | ||
Shenzhen Jifu Communication Technology Co., Ltd. | ||
Shenzhen Jifu Communication Technology Co., Ltd ("Jifu"), was incorporated on April 16, 2001 under the laws of the People's Republic of China ("PRC") as a limited liability company. The required registered capital is RMB3,000,000 and all of the required registered capital has been contributed. | ||
Shenzhen Jifu Communication Technology Co., Ltd ("Jifu"), was incorporated on April 16, 2001 under the laws of the People's Republic of China ("PRC") as a limited liability company. The required registered capital is RMB3,000,000 and all of the required registered capital has been contributed. | ||
Jifu is primarily engaged in develops and distributes optical transmitters and receivers, electronic surveillance equipment, and other communications equipment. Jifu also engages in the purchase and sale of electronic products, network products, and communications equipment. In order to bolster its business, Jifu also engages in software research and development. | ||
Jifu is primarily engaged in develops and distributes optical transmitters and receivers, electronic surveillance equipment, and other communications equipment. Jifu also engages in the purchase and sale of electronic products, network products, and communications equipment. In order to bolster its business, Jifu also engages in software research and development. | ||
On May 7, 2013, the Company entered into and consummated a Stock Purchase Agreement (the "Agreement") with Shenzhen CC Power Investment Consulting Co., Ltd., a company organized under the laws of the People's Republic of China and an indirect wholly-owned subsidiary of the Company ("CC Power"), Shenzhen Jifu Communication Technology Co., Ltd. a company organized under the laws of the People's Republic of China ("Jifu") the shareholders of Jifu set forth in the signature page to the Agreement (the "Jifu Shareholders") and Hui Luo. | ||
On May 7, 2013, the Company entered into and consummated a Stock Purchase Agreement (the "Agreement") with Shenzhen CC Power Investment Consulting Co., Ltd., a company organized under the laws of the People's Republic of China and an indirect wholly-owned subsidiary of the Company ("CC Power"), Shenzhen Jifu Communication Technology Co., Ltd. a company organized under the laws of the People's Republic of China ("Jifu") the shareholders of Jifu set forth in the signature page to the Agreement (the "Jifu Shareholders") and Hui Luo. | ||
Pursuant to the terms and conditions of the Agreement, the Company will issue an aggregate of 27,000,000 shares of the Company's common stock (the "Purchase Shares") to the Jifu Shareholders as consideration for Jifu entering into certain controlling agreements (the "VIE Agreement") with CC Power. CC Power will effectively own Jifu through the various conditions prescribed in the VIE Agreements. The Company will also grant 3,000,000 shares (the "Luo Shares", together with the Purchase Shares, the "Shares'") to Mr. Luo. | ||
Pursuant to the terms and conditions of the Agreement, the Company will issue an aggregate of 27,000,000 shares of the Company's common stock (the "Purchase Shares") to the Jifu Shareholders as consideration for Jifu entering into certain controlling agreements (the "VIE Agreement") with CC Power. CC Power will effectively own Jifu through the various conditions prescribed in the VIE Agreements. The Company will also grant 3,000,000 shares (the "Luo Shares", together with the Purchase Shares, the "Shares'") to Mr. Luo. | ||
The Shares will be released to the Jifu Shareholders and Mr. Luo after the Company has reviewed Jifu's audited financial statements for the year ended December 31, 2013. If Jifu has achieved net revenue of $4,000,000 for the year ended December 31, 2013 (the "Target"), then the Company will release the Shares to the Jifu Shareholders and Mr. Luo in their full respective amounts. If Jifu has not achieved the Target by the end of the calendar year, the Company will decrease the amount of shares of common stock issued to the Jifu Shareholders and Mr. Luo in accordance with a formula set forth in the Agreement and release the Shares to the Jifu Shareholders and Mr. Luo in their respective decreased amounts. The Agreement has been approved by the boards of directors of the Company, CC Power, and Jifu, and the Jifu Shareholders. | ||
The Shares will be released to the Jifu Shareholders and Mr. Luo after the Company has reviewed Jifu's audited financial statements for the year ended December 31, 2013. If Jifu has achieved net revenue of $4,000,000 for the year ended December 31, 2013 (the "Target"), then the Company will release the Shares to the Jifu Shareholders and Mr. Luo in their full respective amounts. If Jifu has not achieved the Target by the end of the calendar year, the Company will decrease the amount of shares of common stock issued to the Jifu Shareholders and Mr. Luo in accordance with a formula set forth in the Agreement and release the Shares to the Jifu Shareholders and Mr. Luo in their respective decreased amounts. The Agreement has been approved by the boards of directors of the Company, CC Power, and Jifu, and the Jifu Shareholders. | ||
Service and equipment agreement - Jifu | ||
Service and equipment agreement - Jifu | ||
In January, 2013, Jifu entered into an agreement with Shenzhen Hong Di Industry Co., Ltd ("Hong Di"), a company incorporated in the PRC. Jifu will provide software and computer equipment with technical support services to Hong Di. The total consideration of this agreement is US$4,306,740 (equivalent to RMB27,169,500). The term of this agreement is 3 years. Ms. Sumin Su was the common director of both Jifu and Hong Di, before her resignation from the director of Hong Di became effective on June 19, 2013. | ||
In January, 2013, Jifu entered into an agreement with Shenzhen Hong Di Industry Co., Ltd ("Hong Di"), a company incorporated in the PRC. Jifu will provide software and computer equipment with technical support services to Hong Di. The total consideration of this agreement is US$4,306,740 (equivalent to RMB27,169,500). The term of this agreement is 3 years. Ms. Sumin Su was the common director of both Jifu and Hong Di, before her resignation from the director of Hong Di became effective on June 19, 2013. | ||
See HTML for organizational graphic | ||
See HTML for organizational graphic |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ' | ||||||||||||||||
2. Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies | |||||||||||||||||
Basis of presentation | Basis of presentation | |||||||||||||||||
The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries at March 31, 2014 and for the three months ended March 31, 2014 and 2013 reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the financial position and results of operations of the Company for the periods presented. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The accompanying condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended December 31, 2013. The Company follows the same accounting policies in the preparation of interim reports. The Company's accounting policies used in the preparation of the accompanying financial statements conform to accounting principles generally accepted in the United States of America ("US GAAP") | The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and have been consistently applied. The functional currency is the Chinese Renminbi, however the accompanying condensed consolidated financial statements have been translated and presented in United States Dollars ($). All significant inter-company balances and transactions have been eliminated in consolidation. | |||||||||||||||||
The functional currency is the Chinese Renminbi, however the accompanying condensed consolidated financial statements have been translated and presented in United States Dollars ($). All significant inter-company balances and transactions have been eliminated in consolidation. | ||||||||||||||||||
Use of estimates | ||||||||||||||||||
All dollars are rounded to nearest hundred except for share data. | ||||||||||||||||||
In preparing financial statements in conformity with US GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported periods. Actual results could differ from those estimates. | ||||||||||||||||||
Use of estimates | Significant Estimates | |||||||||||||||||
In preparing financial statements in conformity with US GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported periods. Actual results could differ from those estimates. | These financial statements include some amounts that are based on management's best estimates and judgments. The most significant estimates relate to depreciation of property, plant and equipment, the valuation allowance for deferred taxes. It is reasonably possible that the above-mentioned estimates and others may be adjusted as more current information becomes available, and any adjustment could be significant in future reporting periods. | |||||||||||||||||
Significant Estimates | Variable Interest Entity | |||||||||||||||||
These financial statements include some amounts that are based on management's best estimates and judgments. The most significant estimates relate to depreciation of property, plant and equipment, the valuation allowance for deferred taxes. It is reasonably possible that the above-mentioned estimates and others may be adjusted as more current information becomes available, and any adjustment could be significant in future reporting periods. | CC Power | |||||||||||||||||
Variable Interest Entity | The accounts of CC Power have been consolidated with the accounts of the Company because CC Power is a variable interest entity with respect to CC Investment, which is a wholly-owned subsidiary of the Company. CC Investment entered into five agreements dated August 22, 2011 with CC Power Shareholder and with CC Power pursuant to which CC Investment provides CC Power with exclusive technology consulting and management services. In summary, the five agreements contain the following terms: | |||||||||||||||||
The accounts of CC Power have been consolidated with the accounts of the Company because CC Power is a variable interest entity with respect to CC Investment, which is a wholly-owned subsidiary of the Company. CC Investment entered into five agreements dated August 22, 2011 with CC Power Shareholder and with CC Power pursuant to which CC Investment provides CC Power with exclusive technology consulting and management services. In summary, the five agreements contain the following terms: | Entrusted Management Agreement. This agreement provides that CC Investment will provide exclusive management services to CC Power. Such management services include but are not limited to financial management, business management, marketing management, human resource management and internal control of CC Power. The Entrusted Management Agreement will remain in effect until the acquisition of all assets or equity of CC Power by CC Investment is complete (as more fully described in the Exclusive Purchase Option Agreement below). | |||||||||||||||||
Entrusted Management Agreement. This agreement provides that CC Investment will provide exclusive management services to CC Power. Such management services include but are not limited to financial management, business management, marketing management, human resource management and internal control of CC Power. The Entrusted Management Agreement will remain in effect until the acquisition of all assets or equity of CC Power by CC Investment is complete (as more fully described in the Exclusive Purchase Option Agreement below). | Technical Services Agreement. This agreement provides that CC Investment will provide exclusive technical services to CC Power. Such technical services include but are not limited to software, computer system, data analysis, training and other technical services. CC Investment shall be entitled to charge CC Power service fees equivalent to CC Power's total net income. The Technical Service Agreement will remain in effect until the acquisition of all assets or equity of CC Power by CC Investment is complete (as more fully described in the Exclusive Purchase Option Agreement below). | |||||||||||||||||
Technical Services Agreement. This agreement provides that CC Investment will provide exclusive technical services to CC Power. Such technical services include but are not limited to software, computer system, data analysis, training and other technical services. CC Investment shall be entitled to charge CC Power service fees equivalent to CC Power's total net income. The Technical Service Agreement will remain in effect until the acquisition of all assets or equity of CC Power by CC Investment is complete (as more fully described in the Exclusive Purchase Option Agreement below). | Exclusive Purchase Option Agreement. Under the Exclusive Purchase Option Agreement, the CC Power Shareholder granted CC Investment an irrevocable and exclusive purchase option to acquire CC Power's equity and/or assets at a nominal consideration. CC Investment may exercise the purchase option at any time. | |||||||||||||||||
Exclusive Purchase Option Agreement. Under the Exclusive Purchase Option Agreement, the CC Power Shareholder granted CC Investment an irrevocable and exclusive purchase option to acquire CC Power's equity and/or assets at a nominal consideration. CC Investment may exercise the purchase option at any time. | Loan Agreement. Under the Loan Agreement, CC Investment agreed to lend RMB 10,000,000 to the CC Power Shareholder, to be used solely for the operations of CC Power. | |||||||||||||||||
Loan Agreement. Under the Loan Agreement, CC Investment agreed to lend RMB 10,000,000 to the CC Power Shareholder, to be used solely for the operations of CC Power. | Equity Pledge Agreement. Under the Equity Pledge Agreement, the CC Power Shareholder pledged all of its equity interests in CC Power, including the proceeds thereof, to guarantee all of CC Investment's rights and benefits under the Entrusted Management Agreement, the Technical Service Agreement, the Exclusive Purchase Option Agreement and the Loan Agreement. Prior to termination of this Equity Pledge Agreement, the pledged equity interests cannot be transferred without CC Investment's prior consent. The CC Power Shareholder covenants to CC Investment that among other things, it will only appoint/elect the candidates for the directors of CC Power nominated by CC Investment. | |||||||||||||||||
Equity Pledge Agreement. Under the Equity Pledge Agreement, the CC Power Shareholder pledged all of its equity interests in CC Power, including the proceeds thereof, to guarantee all of CC Investment's rights and benefits under the Entrusted Management Agreement, the Technical Service Agreement, the Exclusive Purchase Option Agreement and the Loan Agreement. Prior to termination of this Equity Pledge Agreement, the pledged equity interests cannot be transferred without CC Investment's prior consent. The CC Power Shareholder covenants to CC Investment that among other things, it will only appoint/elect the candidates for the directors of CC Power nominated by CC Investment. | ||||||||||||||||||
In sum, the agreements transfer to CC Investment all of the benefits and all of the risk arising from the operations of CC Power, as well as complete managerial authority over the operations of CC Power. Through these contractual arrangements, the Company has the ability to substantially influence CC Power's daily operations and financial affairs, appoint its directors and senior executives, and approve all matters requiring board and/or shareholder approval. These contractual arrangements enable the Company to control CC Power and operate our business in the PRC through CC Investment. By reason of the relationship described in these agreements, CC Power is a variable interest entity with respect to CC Investment and CC Investment is considered the primary beneficiary of CC Power because the following characteristics identified in ASC 810-10-15-14 are present: | ||||||||||||||||||
In sum, the agreements transfer to CC Investment all of the benefits and all of the risk arising from the operations of CC Power, as well as complete managerial authority over the operations of CC Power. Through these contractual arrangements, the Company has the ability to substantially influence CC Power's daily operations and financial affairs, appoint its directors and senior executives, and approve all matters requiring board and/or shareholder approval. These contractual arrangements enable the Company to control CC Power and operate our business in the PRC through CC Investment. By reason of the relationship described in these agreements, CC Power is a variable interest entity with respect to CC Investment and CC Investment is considered the primary beneficiary of CC Power because the following characteristics identified in ASC 810-10-15-14 are present: | The holder of the equity investment in CC Power lacks the direct or indirect ability to make decisions about the entity's activities that have a significant effect on the success of CC Power, having assigned their voting rights and all managerial authority to CC Investment. (ASC 810-10-15-14(b)(1)). | |||||||||||||||||
- | The holder of the equity investment in CC Power lacks the direct or indirect ability to make decisions about the entity's activities that have a significant effect on the success of CC Power, having assigned their voting rights and all managerial authority to CC Investment. (ASC 810-10-15-14(b)(1)). | The holder of the equity investment in CC Power lacks the obligation to absorb the expected losses of CC Power, having assigned to CC Investment all revenue and responsibility for all payables. (ASC 810-10-15-14(b)(2). | ||||||||||||||||
- | The holder of the equity investment in CC Power lacks the obligation to absorb the expected losses of CC Power, having assigned to CC Investment all revenue and responsibility for all payables. (ASC 810-10-15-14(b)(2). | The holder of the equity investment in CC Power lacks the right to receive the expected residual returns of CC Power, having granted to CC Investment all revenue as well as an option to purchase the equity interests at a fixed price. (ASC 810-10-15-14(b)(3)). | ||||||||||||||||
- | The holder of the equity investment in CC Power lacks the right to receive the expected residual returns of CC Power, having granted to CC Investment all revenue as well as an option to purchase the equity interests at a fixed price. (ASC 810-10-15-14(b)(3)). | Accordingly, the Company's condensed consolidated financial statements reflect the results of operations, assets and liabilities of CC Power. The carrying amount and classification of CC Power's assets and liabilities included in the Condensed Consolidated Balance Sheets are as follows: | ||||||||||||||||
December 31, | December 31, | |||||||||||||||||
Accordingly, the Company's condensed consolidated financial statements reflect the results of operations, assets and liabilities of CC Power. The carrying amount and classification of CC Power's assets and liabilities included in the Condensed Consolidated Balance Sheets are as follows: | 2013 | 2012 | ||||||||||||||||
March 31, | December 31, | Total current assets | $ | 86,173 | $ | 113,894 | ||||||||||||
2014 | 2013 | Total assets | 153,178 | 190,199 | ||||||||||||||
Total current liabilities | 551,012 | 320,873 | ||||||||||||||||
Total current assets | $ | 89,058 | $ | 86,173 | Total liabilities | 551,012 | 341,003 | |||||||||||
Total assets | 244,583 | 153,178 | ||||||||||||||||
Total current liabilities | 527,507 | 551,012 | Jifu | |||||||||||||||
Total liabilities | 527,507 | 551,012 | ||||||||||||||||
The accounts of Jifu have been consolidated with the accounts of the Company because Jifu is a variable interest entity with respect to CC Investment, which is a wholly-owned subsidiary of the Company. CC Investment entered into five agreements dated May 7, 2013 with Jifu Shareholder and with Jifu pursuant to which CC Investment provides Jifu with exclusive technology consulting and management services. In summary, the five agreements contain the following terms: | ||||||||||||||||||
Jifu | ||||||||||||||||||
The accounts of Jifu have been consolidated with the accounts of the Company because Jifu is a variable interest entity with respect to CC Investment, which is a wholly-owned subsidiary of the Company. CC Investment entered into five agreements dated May 7, 2013 with Jifu Shareholder and with Jifu pursuant to which CC Investment provides Jifu with exclusive technology consulting and management services. In summary, the five agreements contain the following terms: | Entrusted Management Agreement. Effective on May 7, 2013, CC Investment entered into an Entrusted Management Agreement with Jifu and the Jifu Shareholders, pursuant to which CC Investment agreed to provide, and Jifu agreed to accept, exclusive management services provided by CC Investment. Such management services include but are not limited to financial management, business management, marketing management, human resource management and internal control of Jifu. Jifu will pay a service fee to CC Investment on a quarterly basis, which fee will be a percentage of Jifu's total operational income. The Entrusted Management Agreement will remain in effect until the acquisition of all the assets or equity of Jifu by CC Investment. | |||||||||||||||||
Entrusted Management Agreement. Effective on May 7, 2013, CC Investment entered into an Entrusted Management Agreement with Jifu and the Jifu Shareholders, pursuant to which CC Investment agreed to provide, and Jifu agreed to accept, exclusive management services provided by CC Investment. Such management services include but are not limited to financial management, business management, marketing management, human resource management and internal control of Jifu. Jifu will pay a service fee to CC Investment on a quarterly basis, which fee will be a percentage of Jifu's total operational income. The Entrusted Management Agreement will remain in effect until the acquisition of all the assets or equity of Jifu by CC Investment. | Technical Services Agreement. Effective on May 7, 2013, CC Investment entered into a Technical Services Agreement with Jifu and the Jifu Shareholders, pursuant to which CC Investment agreed to provide, and Jifu agreed to accept, exclusive technical services provided by CC Investment. Such technical services include but are not limited to software services, computer systems services, data analysis, training and other technical services. Jifu will pay a service fee to CC Investment on a quarterly basis, which fee shall be a percentage of Jifu's total operational income. The Technical Service Agreement will remain in effect until the acquisition of all the assets or equity of Jifu by CC Investment. | |||||||||||||||||
Technical Services Agreement. Effective on May 7, 2013, CC Investment entered into a Technical Services Agreement with Jifu and the Jifu Shareholders, pursuant to which CC Investment agreed to provide, and Jifu agreed to accept, exclusive technical services provided by CC Investment. Such technical services include but are not limited to software services, computer systems services, data analysis, training and other technical services. Jifu will pay a service fee to CC Investment on a quarterly basis, which fee shall be a percentage of Jifu's total operational income. The Technical Service Agreement will remain in effect until the acquisition of all the assets or equity of Jifu by CC Investment. | Exclusive Purchase Option Agreement. Effective on May 7, 2013, CC Investment entered into an Exclusive Purchase Option Agreement with Jifu and the Jifu Shareholders, pursuant to which the Jifu Shareholders granted CC Investment an irrevocable and exclusive purchase option to acquire all of Jifu's equity and/or assets at a nominal consideration. CC Investment may exercise the purchase option at any time. Until CC Investment has exercised its purchase option, Jifu is required to conduct its business in accordance with certain covenants as further described in the Exclusive Purchase Option Agreement. | |||||||||||||||||
Exclusive Purchase Option Agreement. Effective on May 7, 2013, CC Investment entered into an Exclusive Purchase Option Agreement with Jifu and the Jifu Shareholders, pursuant to which the Jifu Shareholders granted CC Investment an irrevocable and exclusive purchase option to acquire all of Jifu's equity and/or assets at a nominal consideration. CC Investment may exercise the purchase option at any time. Until CC Investment has exercised its purchase option, Jifu is required to conduct its business in accordance with certain covenants as further described in the Exclusive Purchase Option Agreement. | Loan Agreement | |||||||||||||||||
Loan Agreement | Effective on May 7, 2013, CC Investment entered into a Loan Agreement with the Jifu Shareholders, pursuant to which CC Investment agreed to lend RMB 3,000,000 to the Jifu Shareholders, to be used solely for the operations of Jifu. The loan is interest free, unless the deemed value of the consideration for the equity purchase of Jifu or asset purchase of Jifu under the Exclusive Purchase Option Agreement is higher than the principal amount of the loan, in which case the excess will be deemed to be interest on the loan. | |||||||||||||||||
Effective on May 7, 2013, CC Investment entered into a Loan Agreement with the Jifu Shareholders, pursuant to which CC Investment agreed to lend RMB 3,000,000 to the Jifu Shareholders, to be used solely for the operations of Jifu. The loan is interest free, unless the deemed value of the consideration for the equity purchase of Jifu or asset purchase of Jifu under the Exclusive Purchase Option Agreement is higher than the principal amount of the loan, in which case the excess will be deemed to be interest on the loan. | ||||||||||||||||||
Equity Pledge Agreement | Equity Pledge Agreement | |||||||||||||||||
Effective on May 7, 2013, CC Investment entered into an Equity Pledge Agreement with Jifu and the Jifu Shareholders, pursuant to which the Jifu Shareholders pledged all of their equity interests in Jifu, including the proceeds thereof, to guarantee all of CC Investment's rights and benefits under the Entrusted Management Agreement, the Technical Service Agreement, the Exclusive Purchase Option Agreement and the Loan Agreement. Prior to termination of the Equity Pledge Agreement, the pledged equity interests cannot be transferred without CC Investment's prior consent. The Jifu Shareholders covenant to CC Investment that among other things, they will only appoint/elect candidates for the board of directors of Jifu and supervisor office of Jifu that were nominated by CC Investment. | ||||||||||||||||||
Effective on May 7, 2013, CC Investment entered into an Equity Pledge Agreement with Jifu and the Jifu Shareholders, pursuant to which the Jifu Shareholders pledged all of their equity interests in Jifu, including the proceeds thereof, to guarantee all of CC Investment's rights and benefits under the Entrusted Management Agreement, the Technical Service Agreement, the Exclusive Purchase Option Agreement and the Loan Agreement. Prior to termination of the Equity Pledge Agreement, the pledged equity interests cannot be transferred without CC Investment's prior consent. The Jifu Shareholders covenant to CC Investment that among other things, they will only appoint/elect candidates for the board of directors of Jifu and supervisor office of Jifu that were nominated by CC Investment. | ||||||||||||||||||
In sum, the agreements transfer to CC Investment all of the benefits and all of the risk arising from the operations of Jifu, as well as complete managerial authority over the operations of Jifu. Through these contractual arrangements, the Company has the ability to substantially influence Jifu's daily operations and financial affairs, appoint its directors and senior executives, and approve all matters requiring board and/or shareholder approval. These contractual arrangements enable the Company to control Jifu and operate our business in the PRC through CC Investment. By reason of the relationship described in these agreements, Jifu is a variable interest entity with respect to CC Investment and CC Investment is considered the primary beneficiary of Jifu because the following characteristics identified in ASC 810-10-15-14 are present: | ||||||||||||||||||
In sum, the agreements transfer to CC Investment all of the benefits and all of the risk arising from the operations of Jifu, as well as complete managerial authority over the operations of Jifu. Through these contractual arrangements, the Company has the ability to substantially influence Jifu's daily operations and financial affairs, appoint its directors and senior executives, and approve all matters requiring board and/or shareholder approval. These contractual arrangements enable the Company to control Jifu and operate our business in the PRC through CC Investment. By reason of the relationship described in these agreements, Jifu is a variable interest entity with respect to CC Investment and CC Investment is considered the primary beneficiary of Jifu because the following characteristics identified in ASC 810-10-15-14 are present: | ||||||||||||||||||
The holder of the equity investment in Jifu lacks the direct or indirect ability to make decisions about the entity's activities that have a significant effect on the success of Jifu, having assigned their voting rights and all managerial authority to CC Investment. (ASC 810-10-15-14(b)(1)). | ||||||||||||||||||
The holder of the equity investment in Jifu lacks the direct or indirect ability to make decisions about the entity's activities that have a significant effect on the success of Jifu, having assigned their voting rights and all managerial authority to CC Investment. (ASC 810-10-15-14(b)(1)). | ||||||||||||||||||
The holder of the equity investment in Jifu lacks the obligation to absorb the expected losses of Jifu, having assigned to CC Investment all revenue and responsibility for all payables. (ASC 810-10-15-14(b)(2). | ||||||||||||||||||
The holder of the equity investment in Jifu lacks the obligation to absorb the expected losses of Jifu, having assigned to CC Investment all revenue and responsibility for all payables. (ASC 810-10-15-14(b)(2). | ||||||||||||||||||
The holder of the equity investment in Jifu lacks the right to receive the expected residual returns of Jifu, having granted to CC Investment all revenue as well as an option to purchase the equity interests at a fixed price. (ASC 810-10-15-14(b)(3)). | ||||||||||||||||||
The holder of the equity investment in Jifu lacks the right to receive the expected residual returns of Jifu, having granted to CC Investment all revenue as well as an option to purchase the equity interests at a fixed price. (ASC 810-10-15-14(b)(3)). | ||||||||||||||||||
Accordingly, the Company's condensed consolidated financial statements reflect the results of operations, assets and liabilities of Jifu. The carrying amount and classification of Jifu's assets and liabilities included in the Condensed Consolidated Balance Sheets are as follows: | ||||||||||||||||||
Accordingly, the Company's condensed consolidated financial statements reflect the results of operations, assets and liabilities of Jifu. The carrying amount and classification of Jifu's assets and liabilities included in the Condensed Consolidated Balance Sheets are as follows: | ||||||||||||||||||
March 31, | December 31, | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
Total current assets | $ | 6,151,398 | $ | 5,138,384 | 2013 | 2012 | ||||||||||||
Total assets | 6,172,165 | 5,161,150 | ||||||||||||||||
Total current liabilities | 4,141,857 | 3,405,746 | Total current assets | $ | 5,138,384 | $ | - | |||||||||||
Total liabilities | 4,141,857 | 3,405,746 | Total assets | 5,161,150 | - | |||||||||||||
Total current liabilities | 3,405,746 | - | ||||||||||||||||
Revenue recognition | Total liabilities | 3,405,746 | - | |||||||||||||||
Our source of revenues is from internet accelerator software, which includes new software license revenues and software plus hardware and maintenance arrangements, and the source of revenue of Jifu is from developing and distributing optical transmitters and receivers, electronic surveillance equipment, and other communications equipment; and trading of electronic products, network products, and communications equipment. We also engage in software research and development, GPS system development and website development projects along with maintenance arrangements. | Revenue recognition | |||||||||||||||||
We evaluate revenue recognition based on the criteria set forth in FASB ASC 985-605, Software: Revenue Recognition and Staff Accounting Bulletin ("SAB") No. 101, Revenue Recognition in Financial Statements, as revised by SAB No. 104, Revenue Recognition. | Our source of revenues is from internet accelerator software, which includes new software license revenues and software plus hardware and maintenance arrangements, and the source of revenue of Jifu is from developing and distributing optical transmitters and receivers, electronic surveillance equipment, and other communications equipment; and trading of electronic products, network products, and communications equipment. We also engage in software research and development. During the year ended December 31, 2013, we also have revenues derived from GPS system development and website development projects along with maintenance arrangements. | |||||||||||||||||
We evaluate revenue recognition based on the criteria set forth in FASB ASC 985-605, Software: Revenue Recognition and Staff Accounting Bulletin ("SAB") No. 101, Revenue Recognition in Financial Statements, as revised by SAB No. 104, Revenue Recognition. | ||||||||||||||||||
Revenue Recognition for Software Products (Software Elements) | ||||||||||||||||||
New software license revenues represent fees earned from granting customers licenses to download our software products that aim at improving the internet connection speed of the mobile phone, computers or servers. The basis for software license revenue recognition is substantially governed by the accounting guidance contained in ASC 985-605, Software-Revenue Recognition. For software license that do not require significant modification or customization of the underlying software, we recognize new software license revenues when: (1) we enter into a legally binding arrangement with a customer for the license of software; (2) we deliver the products; (3) the sale price is fixed or determinable and free of contingencies or significant uncertainties; and (4) collection is probable. Revenues that are not recognized at the time of sale because the foregoing conditions are not met are recognized when those conditions are subsequently met. | ||||||||||||||||||
Revenue Recognition for Software Products (Software Elements) | ||||||||||||||||||
Our software license arrangements do not include acceptance provisions, software license updates or product support contracts. | ||||||||||||||||||
New software license revenues represent fees earned from granting customers licenses to download our software products that aim at improving the internet connection speed of the mobile phone, computers or servers. The basis for software license revenue recognition is substantially governed by the accounting guidance contained in ASC 985-605, Software-Revenue Recognition. For software license that do not require significant modification or customization of the underlying software, we recognize new software license revenues when: (1) we enter into a legally binding arrangement with a customer for the license of software; (2) we deliver the products; (3) the sale price is fixed or determinable and free of contingencies or significant uncertainties; and (4) collection is probable. Revenues that are not recognized at the time of sale because the foregoing conditions are not met are recognized when those conditions are subsequently met. | ||||||||||||||||||
Revenue Recognition for Multiple-Element Arrangements - Software Products and Software Related Services(Software Arrangements) | ||||||||||||||||||
Our software license arrangements do not include acceptance provisions, software license updates or product support contracts. | ||||||||||||||||||
We enter into arrangements with customers that purchase software related products that include one to three year product support service and a short training session (referred to as software related multiple-element arrangements). Such software related multiple-element arrangements include the sale of our software products, and product support contracts whereby software license delivery is followed by the subsequent delivery of the other elements. Our software license arrangements include acceptance provisions. We recognize revenue upon the receipt of written customer acceptance. The vast majority of our software license arrangements include software license updates and product support contracts. Software license updates provide customers with rights to unspecified software product upgrades during the term of the support period. Product support includes telephone access to technical support personnel or on-site support. For those software related multiple-element arrangements, we recognized revenue pursuant to ASC 985-605. Since we are unable to determine the fair value of the selling price for the undelivered elements in a multiple-element arrangement, which is the product support service and training, the entire arrangement consideration is deferred and is recognized ratably over the term of the arrangement, typically one year to three years. | ||||||||||||||||||
Revenue Recognition for Multiple-Element Arrangements - Software Products and Software Related Services(Software Arrangements) | ||||||||||||||||||
Revenue Recognition for Multiple-Element Arrangements - Arrangements with Software and Hardware Elements | ||||||||||||||||||
We enter into arrangements with customers that purchase software related products that include one to three year product support service and a short training session (referred to as software related multiple-element arrangements). Such software related multiple-element arrangements include the sale of our software products, and product support contracts whereby software license delivery is followed by the subsequent delivery of the other elements. Our software license arrangements include acceptance provisions. We recognize revenue upon the receipt of written customer acceptance. The vast majority of our software license arrangements include software license updates and product support contracts. Software license updates provide customers with rights to unspecified software product upgrades during the term of the support period. Product support includes telephone access to technical support personnel or on-site support. For those software related multiple-element arrangements, we recognized revenue pursuant to ASC 985-605. Since we are unable to determine the fair value of the selling price for the undelivered elements in a multiple-element arrangement, which is the product support service and training, the entire arrangement consideration is deferred and is recognized ratably over the term of the arrangement, typically one year to three years. | ||||||||||||||||||
We also enter into multiple-element arrangements that may include a combination of our software installed in the hardware products we purchased from third parties and service offerings including purchased hardware , new software licenses, installation of the software in the hardware and one to three years product support. We adopted Accounting Standards Update ("ASU") 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements . This guidance modifies the fair value requirements of FASB ASC subtopic 605-25, Revenue Recognition-Multiple Element Arrangements , by allowing the use of the "best estimate of selling price" in addition to vendor-specific objective evidence and third-party evidence for determining the selling price of a deliverable for non-software arrangements. This guidance establishes a selling price hierarchy for determining the selling price of a deliverable, which is based on: (a) vendor-specific objective evidence, (b) third-party evidence, or (c) estimated selling price. In addition, the residual method of allocating arrangement consideration is no longer permitted. In such arrangements, we first allocate the total arrangement consideration based on the relative selling prices of the software group of elements as a whole and to the hardware elements. We recognize the hardware element considerations upon delivery of the hardware. The consideration allocated to the software group which includes the software element and the product support is recognized in according to the software arrangements policy as described above. | ||||||||||||||||||
Revenue Recognition for Multiple-Element Arrangements - Arrangements with Software and Hardware Elements | ||||||||||||||||||
Cost of Revenue | ||||||||||||||||||
We also enter into multiple-element arrangements that may include a combination of our software installed in the hardware products we purchased from third parties and service offerings including purchased hardware , new software licenses, installation of the software in the hardware and one to three years product support. We adopted Accounting Standards Update ("ASU") 2009-13, | ||||||||||||||||||
Cost of revenue primarily consists of direct costs of products, direct labor of technical staff, depreciation of computer equipment, and overhead associated with the technical department. | ||||||||||||||||||
Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements . This guidance modifies the fair value requirements of FASB ASC subtopic 605-25, Revenue Recognition-Multiple Element Arrangements , by allowing the use of the "best estimate of selling price" in addition to vendor-specific objective evidence and third-party evidence for determining the selling price of a deliverable for non-software arrangements. This guidance establishes a selling price hierarchy for determining the selling price of a deliverable, which is based on: (a) vendor-specific objective evidence, (b) third-party evidence, or (c) estimated selling price. In addition, the residual method of allocating arrangement consideration is no longer permitted. In such arrangements, we first allocate the total arrangement consideration based on the relative selling prices of the software group of elements as a whole and to the hardware elements. We recognize the hardware element considerations upon delivery of the hardware. The consideration allocated to the software group which includes the software element and the product support is recognized in according to the software arrangements policy as described above. | ||||||||||||||||||
Economic and political risks | Cost of Revenue | |||||||||||||||||
The Company's operations are mainly conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations in the PRC may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC. | Cost of revenue primarily consists of direct costs of products, direct labor of technical staff, depreciation of computer equipment, and overhead associated with the technical department. | |||||||||||||||||
The Company's major operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in government administration, governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. | ||||||||||||||||||
Economic and political risks | ||||||||||||||||||
Credit risk | ||||||||||||||||||
The Company's operations are mainly conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations in the PRC may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC. | ||||||||||||||||||
The Company may be exposed to credit risk from its cash and fixed deposits at bank. No allowance has been made for estimated irrecoverable amounts determined by reference to past default experience and the current economic environment. | ||||||||||||||||||
The Company's major operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in government administration, governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. | ||||||||||||||||||
Property and equipment | ||||||||||||||||||
Credit risk | ||||||||||||||||||
Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows: | ||||||||||||||||||
The Company may be exposed to credit risk from its cash and fixed deposits at bank. No allowance has been made for estimated irrecoverable amounts determined by reference to past default experience and the current economic environment. | ||||||||||||||||||
Equipment | 5 years | |||||||||||||||||
Office equipment | 5 years | |||||||||||||||||
Leasehold improvements | Over the lease terms | Property and equipment | ||||||||||||||||
Software | 5 years | |||||||||||||||||
Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows: | ||||||||||||||||||
The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. | ||||||||||||||||||
Equipment | 5 years | |||||||||||||||||
Accounting for the impairment of long-lived assets | Office equipment | 5 years | ||||||||||||||||
Leasehold improvements | Over the lease terms | |||||||||||||||||
Impairment of Long-Lived Assets is evaluated for impairment at a minimum on an annual basis whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC 360-10 "Impairments of Long-Lived Assets". An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair market value. The recoverability of long-lived assets is assessed by determining whether the unamortized balances can be recovered through undiscounted future net cash flows of the related assets. The amount of impairment, if any, is measured based on projected discounted future net cash flows using a discount rate reflecting the Company's average cost of capital. | Software | 5 years | ||||||||||||||||
Goodwill, Customer-relationship, and Trade-name Intangibles | The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. | |||||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. In accordance with Accounting Standards Codification ASC 350 "Intangibles - Goodwill and Other", goodwill is no longer subject to amortization. Rather, goodwill is subject to at least an annual assessment for impairment, applying a fair-value based test. | Accounting for the impairment of long-lived assets | |||||||||||||||||
Customer-relationship and trade-name acquired as part of the Merger account for the majority of our intangible assets recognized in the Consolidated Balance Sheet. These assets are expected to generate cash flows indefinitely, do not have estimable or finite useful lives and, therefore, are accounted for as indefinite-lived assets not subject to amortization. We consider the income approach when testing intangible assets with indefinite lives for impairment on an annual basis. We utilize the income approach, specifically the relief from royalty method, for analyzing our indefinite-lived assets. This method is based on the assumption that, in lieu of ownership, a firm would be willing to pay a royalty in order to exploit the related benefits of this asset class. | Impairment of Long-Lived Assets is evaluated for impairment at a minimum on an annual basis whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC 360-10 "Impairments of Long-Lived Assets". An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair market value. The recoverability of long-lived assets is assessed by determining whether the unamortized balances can be recovered through undiscounted future net cash flows of the related assets. The amount of impairment, if any, is measured based on projected discounted future net cash flows using a discount rate reflecting the Company's average cost of capital. | |||||||||||||||||
Inventories | Goodwill, Customer-relationship, and Trade-name Intangibles | |||||||||||||||||
Inventories are stated at the lower of cost or market value. Substantially all inventory costs are determined using the weighted average basis. The management regularly evaluates the composition of its inventory to identify slow-moving and obsolete inventories to determine if additional write-downs are required. | Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. In accordance with Accounting Standards Codification ASC 350 "Intangibles - Goodwill and Other", goodwill is no longer subject to amortization. Rather, goodwill is subject to at least an annual assessment for impairment, applying a fair-value based test. | |||||||||||||||||
Accounts receivable | Customer-relationship and trade-name acquired as part of the Merger account for the majority of our intangible assets recognized in the Consolidated Balance Sheet. These assets are expected to generate cash flows indefinitely, do not have estimable or finite useful lives and, therefore, are accounted for as indefinite-lived assets not subject to amortization. We consider the income approach when testing intangible assets with indefinite lives for impairment on an annual basis. We utilize the income approach, specifically the relief from royalty method, for analyzing our indefinite-lived assets. This method is based on the assumption that, in lieu of ownership, a firm would be willing to pay a royalty in order to exploit the related benefits of this asset class. | |||||||||||||||||
Accounts receivable consists of amounts due from customers. An allowance for doubtful accounts is established and determined based on management's assessment of known requirements, aging of receivables, payment history, the customer's current credit worthiness and the economic environment. As of March 31, 2014 and 2013, no allowance for doubtful accounts was deemed necessary based on management's assessment. | Inventories | |||||||||||||||||
Fair Value of Financial Instruments | Inventories are stated at the lower of cost or market value. Substantially all inventory costs are determined using the weighted average basis. The management regularly evaluates the composition of its inventory to identify slow-moving and obsolete inventories to determine if additional write-downs are required. | |||||||||||||||||
FASB accounting standards require disclosing fair value to the extent practicable for financial instruments that are recognized or unrecognized in the balance sheet. The fair value of the financial instruments disclosed herein is not necessarily representative of the amount that could be realized or settled, nor does the fair value amount consider the tax consequences of realization or settlement. | Accounts receivable | |||||||||||||||||
For certain financial instruments, including cash, accounts payable, accruals and other payables, the carrying amounts approximate fair value because of the near term maturities of such obligations. | Accounts receivable consists of amounts due from customers. An allowance for doubtful accounts is established and determined based on management's assessment of known requirements, aging of receivables, payment history, the customer's current credit worthiness and the economic environment. As of December 31, 2013 and 2012, no allowance for doubtful accounts was deemed necessary based on management's assessment. | |||||||||||||||||
Patents | ||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||
The Company has three patents as listed in the table below relating to its internet accelerator software products. Fees related to registering these patents were insignificant and have been expensed as incurred. | ||||||||||||||||||
FASB accounting standards require disclosing fair value to the extent practicable for financial instruments that are recognized or unrecognized in the balance sheet. The fair value of the financial instruments disclosed herein is not necessarily representative of the amount that could be realized or settled, nor does the fair value amount consider the tax consequences of realization or settlement. | ||||||||||||||||||
Patent | Register Number | Issued By | ||||||||||||||||
Mach5 Internet Acceleration Software V.6.0 | 2007SR09253 | National Copyright Administration of PRC | For certain financial instruments, including cash, accounts payable, accruals and other payables, the carrying amounts approximate fair value because of the near term maturities of such obligations. | |||||||||||||||
Mach5 Enterprise Acceleration Software V.3.3 | 2009SR058767 | National Copyright Administration of PRC | ||||||||||||||||
Mach5 Web Browser Software | 2010SR001089 | National Copyright Administration of PRC | Patents | |||||||||||||||
Research and development and Software Development Costs | The Company has three patents as listed in the table below relating to its internet accelerator software products. Fees related to registering these patents were insignificant and have been expensed as incurred. | |||||||||||||||||
All research and development costs are expensed as incurred. Software development costs eligible for capitalization under ASC 985-20, Software-Costs of Software to be Sold, Leased or Marketed, were not material to our consolidated financial statements for the three months ended March 31, 2014 and 2013. Research and development expenses amounted to $146,344 and $55,997 for the three months ended March 31, 2014 and 2013, respectively, and were included in general and administrative expense. | Patent | Register Number | Issued By | |||||||||||||||
Mach5 Internet Acceleration Software V.6.0 | 2007SR09253 | National Copyright Administration of PRC | ||||||||||||||||
Comprehensive income | Mach5 Enterprise Acceleration Software V.3.3 | 2009SR058767 | National Copyright Administration of PRC | |||||||||||||||
Mach5 Web Browser Software | 2010SR001089 | National Copyright Administration of PRC | ||||||||||||||||
Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. For the Company, comprehensive income for the periods presented includes net income and foreign currency translation adjustments. | ||||||||||||||||||
Research and development and Software Development Costs | ||||||||||||||||||
Income taxes | ||||||||||||||||||
All research and development costs are expensed as incurred. Software development costs eligible for capitalization under ASC 985-20, Software-Costs of Software to be Sold, Leased or Marketed, were not material to our consolidated financial statements for the years ended December 31, 2013 and 2012. Other research and development expenses amounted to $1,611,826 and $246,667 for years ended December 31, 2013 and 2012, respectively, and were included in general and administrative expense. | ||||||||||||||||||
Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred income tax liabilities or assets are recorded to reflect the tax consequences in future differences between the tax basis of assets and liabilities and the financial reporting amounts at each year end. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. | ||||||||||||||||||
Comprehensive income | ||||||||||||||||||
Foreign currency translation | Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. For the Company, comprehensive income for the periods presented includes net income and foreign currency translation adjustments. | |||||||||||||||||
Assets and liabilities of the Company's subsidiaries with a functional currency other than US$ are translated into US$ using period end exchange rates. Income and expense items are translated at the average exchange rates in effect during the period. Foreign currency translation differences are included as a component of Accumulated Other Comprehensive Income in Shareholders' Equity. | ||||||||||||||||||
Income taxes | ||||||||||||||||||
The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the financial statements were as follows: | ||||||||||||||||||
Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred income tax liabilities or assets are recorded to reflect the tax consequences in future differences between the tax basis of assets and liabilities and the financial reporting amounts at each year end. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. | ||||||||||||||||||
31-Mar-14 | ||||||||||||||||||
Balance sheet | RMB 6.1619 to US $1.00 | Foreign currency translation | ||||||||||||||||
Statement of income and other comprehensive income | RMB 6.1156 to US $1.00 | |||||||||||||||||
Assets and liabilities of the Company's subsidiaries with a functional currency other than US$ are translated into US$ using period end exchange rates. Income and expense items are translated at the average exchange rates in effect during the period. Foreign currency translation differences are included as a component of Accumulated Other Comprehensive Income in Shareholders' Equity. | ||||||||||||||||||
31-Mar-13 | ||||||||||||||||||
Balance sheet | RMB 6.2666 to US $1.00 | The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the financial statements were as follows: | ||||||||||||||||
Statement of income and other comprehensive income | RMB 6.2769 to US $1.00 | |||||||||||||||||
31-Dec-13 | ||||||||||||||||||
31-Dec-13 | Balance sheet | RMB 6.1104 to US $1.00 | ||||||||||||||||
Balance sheet | RMB 6.1104 to US $1.00 | Statement of operations and other comprehensive loss | RMB 6.1905 to US $1.00 | |||||||||||||||
Statement of income and other comprehensive income | RMB 6.1905 to US $1.00 | |||||||||||||||||
31-Dec-12 | ||||||||||||||||||
The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. | Balance sheet | RMB 6.3011 to US $1.00 | ||||||||||||||||
Statement of operations and other comprehensive loss | RMB 6.3034 to US $1.00 | |||||||||||||||||
Post-retirement and post-employment benefits | The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. | |||||||||||||||||
The Company contributes to a state pension plan in respect of its PRC employees. Other than the state pension plan, the Company does not provide any other post-retirement or post-employment benefits. | Post-retirement and post-employment benefits | |||||||||||||||||
Recently Issued Accounting Pronouncements | The Company contributes to a state pension plan in respect of its PRC employees. Other than the state pension plan, the Company does not provide any other post-retirement or post-employment benefits. | |||||||||||||||||
In January 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies that ordinary trade receivables and receivables are not in the scope of ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Specifically, ASU 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification™ (Codification) or subject to a master netting arrangement or similar agreement. The FASB undertook this clarification project in response to concerns expressed by U.S. stakeholders about the standard's broad definition of financial instruments. After the standard was finalized, companies realized that many contracts have standard commercial provisions that would equate to a master netting arrangement, significantly increasing the cost of compliance at minimal value to financial statement users. An entity is required to apply the amendments in ASU 2013-01 for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The effective date is the same as the effective date of ASU 2011-11. | Recently Issued Accounting Pronouncements | |||||||||||||||||
In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU improves the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in this ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. | In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-04, Technical Corrections and Improvements. This ASU make technical corrections, clarifications, and limited-scope improvements to various Topics throughout the Codification. The amendments in this ASU that will not have transition guidance will be effective upon issuance for both public entities and nonpublic entities. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2013. | |||||||||||||||||
The new amendments will require an organization to: | In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-05, Statement of Cash Flows (Topic 230). This ASU addresses how cash receipts arising from the sale of certain donated financial assets, such as securities, should be classified in the statement of cash flows of not-for-profit entities (NFPs). Some NFPs classify those cash receipts as investing cash inflows, while other entities classify them as either operating cash inflows or financing cash inflows, consistent with their treatment of inflows arising from cash contributions. The objective of this Update is for an NFP to classify cash receipts from the sale of donated financial assets consistently with cash donations received in the statement of cash flows if those cash receipts were from the sale of donated financial assets that upon receipt were directed without the NFP imposing any limitations for sale and were converted nearly immediately into cash. The amendments in the ASU are effective prospectively for fiscal years, and interim fiscal periods within those years, beginning after June 15, 2013. Retrospective application to all periods presented upon the date of adoption is permitted. Early adoption from the beginning of the fiscal year of adoption is permitted. | |||||||||||||||||
- Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. | In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-06, Business Combinations (Topic 805): Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution. This ASU addresses the diversity in practice about how to interpret the terms on the same basis and contractual limitations when subsequently measuring an indemnification asset recognized in a government-assisted (Federal Deposit Insurance Corporation or National Credit Union Administration) acquisition of a financial institution that includes a loss-sharing agreement (indemnification agreement). For public and nonpublic entities, the amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. Early adoption is permitted. The amendments should be applied prospectively to any new indemnification assets acquired after the date of adoption and to indemnification assets existing as of the date of adoption arising from a government-assisted acquisition of a financial institution. | |||||||||||||||||
- Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-07, Entertainment-Films (Topic 926): Accounting for Fair Value Information That Arises after the Measurement Date and Its Inclusion in the Impairment Analysis of Unamortized Film Costs. This ASU eliminates the rebuttable presumption that the conditions leading to the write-off of unamortized film costs after the balance sheet date existed as of the balance sheet date. The amendments also eliminate the requirement that an entity incorporate into fair value measurements used in the impairment tests the effects of any changes in estimates resulting from the consideration of subsequent evidence if the information would not have been considered by market participants at the measurement date. or SEC filers, the amendments are effective for impairment assessments performed on or after December 15, 2012. For all other entities, the amendments are effective for impairment assessments performed on or after December 15, 2013. The amendments resulting from this ASU should be applied prospectively. Earlier application is permitted, including for impairment assessments performed as of a date before October 24, 2012, if, for SEC filers, the entity's financial statements for the most recent annual or interim period have not yet been issued or, for all other entities, have not yet been made available for issuance. | |||||||||||||||||
In January 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies that ordinary trade receivables and receivables are not in the scope of ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Specifically, ASU 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification™ (Codification) or subject to a master netting arrangement or similar agreement. The FASB undertook this clarification project in response to concerns expressed by U.S. stakeholders about the standard's broad definition of financial instruments. After the standard was finalized, companies realized that many contracts have standard commercial provisions that would equate to a master netting arrangement, significantly increasing the cost of compliance at minimal value to financial statement users. An entity is required to apply the amendments in ASU 2013-01 for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The effective date is the same as the effective date of ASU 2011-11. | ||||||||||||||||||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). A private company is required to meet the reporting requirements of the amended paragraphs about the roll forward of accumulated other comprehensive income for both interim and annual reporting periods. However, private companies are only required to provide the information about the effect of reclassifications on line items of net income for annual reporting periods, not for interim reporting periods. The amendments are effective for reporting periods beginning after December 15, 2012, for public companies and are effective for reporting periods beginning after December 15, 2013, for private companies. Early adoption is permitted. | ||||||||||||||||||
In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU improves the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in this ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. | ||||||||||||||||||
In February 2013, FASB issued Accounting Standards Update (ASU) No. 2013-03, Financial Instruments (Topic 825). This ASU clarifies the scope and applicability of a disclosure exemption that resulted from the issuance of Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendment clarifies that the requirement to disclose "the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (Level 1, 2, or 3)" does not apply to nonpublic entities for items that are not measured at fair value in the statement of financial position, but for which fair value is disclosed. This ASU is the final version of Proposed Accounting Standards Update 2013-200-Financial Instruments (Topic 825) which has been deleted. The amendments are effective upon issuance. | ||||||||||||||||||
The new amendments will require an organization to: | ||||||||||||||||||
In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. This ASU provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2014, and interim periods and annual periods thereafter. The amendments in this ASU should be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU's scope that exist at the beginning of an entity's fiscal year of adoption. An entity may elect to use hindsight for the comparative periods (if it changed its accounting as a result of adopting the amendments in this ASU) and should disclose that fact. Early adoption is permitted. | ||||||||||||||||||
· | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. | |||||||||||||||||
In March 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-05, Foreign Currency Matters (Topic 830). This ASU resolve the diversity in practice about whether Subtopic 810-10, Consolidation-Overall, or Subtopic 830-30, Foreign Currency Matters-Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights)within a foreign entity. In addition, the amendments in this Update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. This ASU is the final version of Proposed Accounting Standards Update EITF11Ar-Foreign Currency Matters (Topic 830), which has been deleted. The amendments in this Update are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. For nonpublic entities the amendments in this Update are effective prospectively for the first annual period beginning after December 15, 2014, and interim and annual periods thereafter. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity's fiscal year of adoption. | ||||||||||||||||||
· | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | |||||||||||||||||
In July 2013, The FASB has issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). | ||||||||||||||||||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). A private company is required to meet the reporting requirements of the amended paragraphs about the roll forward of accumulated other comprehensive income for both interim and annual reporting periods. However, private companies are only required to provide the information about the effect of reclassifications on line items of net income for annual reporting periods, not for interim reporting periods. The amendments are effective for reporting periods beginning after December 15, 2012, for public companies and are effective for reporting periods beginning after December 15, 2013, for private companies. Early adoption is permitted. | ||||||||||||||||||
U.S. GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. | ||||||||||||||||||
In February 2013, FASB issued Accounting Standards Update (ASU) No. 2013-03, Financial Instruments (Topic 825). This ASU clarifies the scope and applicability of a disclosure exemption that resulted from the issuance of Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendment clarifies that the requirement to disclose "the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (Level 1, 2, or 3)" does not apply to nonpublic entities for items that are not measured at fair value in the statement of financial position, but for which fair value is disclosed. This ASU is the final version of Proposed Accounting Standards Update 2013-200-Financial Instruments (Topic 825) which has been deleted. The amendments are effective upon issuance. | ||||||||||||||||||
This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. | ||||||||||||||||||
In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. This ASU provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2014, and interim periods and annual periods thereafter. The amendments in this ASU should be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU's scope that exist at the beginning of an entity's fiscal year of adoption. An entity may elect to use hindsight for the comparative periods (if it changed its accounting as a result of adopting the amendments in this ASU) and should disclose that fact. Early adoption is permitted. | ||||||||||||||||||
In March 2014, FASB has issued Accounting Standards Update (ASU) No. 2014-07, Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements. The guidance addresses the consolidation of lessors in certain common control leasing arrangements and is based on a consensus reached by the Private Company Council (PCC). Under current U.S. GAAP, a company is required to consolidate an entity in which it has a controlling financial interest. The assessment of controlling financial interest is performed under either: (a) a voting interest model; or (b) a variable interest entity model. In a variable interest entity model, the company has a controlling financial interest when it has: (a) the power to direct the activities that most significantly affect the economic performance of the entity; and (b) the obligation to absorb losses or the right to receive benefits of the entity that could be potentially significant to the entity. To determine which model applies, a company preparing financial statements must first determine whether it has a variable interest in the entity being evaluated for consolidation and whether that entity is a variable interest entity. If elected, the accounting alternative should be applied to all leasing arrangements meeting the above conditions. The alternative should be applied retrospectively to all periods presented, and is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early application is permitted for all financial statements that have not yet been made available for issuance. | ||||||||||||||||||
In March 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-05, Foreign Currency Matters (Topic 830). This ASU resolve the diversity in practice about whether Subtopic 810-10, Consolidation-Overall, or Subtopic 830-30, Foreign Currency Matters-Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights)within a foreign entity. In addition, the amendments in this Update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. This ASU is the final version of Proposed Accounting Standards Update EITF11Ar-Foreign Currency Matters (Topic 830), which has been deleted. The amendments in this Update are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. For nonpublic entities the amendments in this Update are effective prospectively for the first annual period beginning after December 15, 2014, and interim and annual periods thereafter. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity's fiscal year of adoption. | ||||||||||||||||||
Management does not believe that any other recently issued but not yet effective accounting pronouncements, if adopted, would have an effect on the accompanying financial statements. | ||||||||||||||||||
In July 2013, The FASB has issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). | ||||||||||||||||||
U.S. GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. | ||||||||||||||||||
This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. | ||||||||||||||||||
Going_Concern
Going Concern | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Going Concern [Abstract] | ' | ' |
Going Concern | ' | ' |
3. Going Concern | 3. Going Concern | |
The Company has incurred negative operating cash flows during the three months ended March 31, 2014 and has an accumulated deficit at March 31, 2014 and has relied on the Company's registered capital and issuance of convertible notes to fund operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. | The Company has incurred significant continuing losses during the years ended December 31, 2013 and 2012, and has accumulated deficits at December 31, 2013 and 2012. The Company has relied on its registered capital and issuance of convertible notes to fund operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. | |
The financial statements have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty. As of March 31, 2014, the Company had limited cash resources and management plans to continue its efforts to raise additional funds through debt or equity offerings which will be used to fund operations. | The financial statements have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty. As of December 31, 2013 and 2012, the Company had limited cash resources and management plans to continue its efforts to raise additional funds through debt or equity offerings which will be used to fund operations. |
Goodwill
Goodwill | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Goodwill [Abstract] | ' | ' | ||||||||||||||||
Goodwill | ' | ' | ||||||||||||||||
4. Goodwill | 4. Goodwill | |||||||||||||||||
Pursuant to the acquisition agreement with Jifu, the Company will issue an aggregate of 30,000,000 shares of the Company's common stock at market price at approximate $0.07 per share. The transaction was shown as below: | Pursuant to the acquisition agreement with Jifu, the Company will issue an aggregate of 30,000,000 shares of the Company's common stock at market price at approximate $0.07 per share. The transaction was shown as below: | |||||||||||||||||
RMB | USD | RMB | USD | |||||||||||||||
Cost of acquisition | $ | 12,873,000 | $ | 2,100,000 | Cost of acquisition | $ | 12,873,000 | $ | 2,100,000 | |||||||||
Net assets of Jifu | 10,136,450 | 1,653,581 | Net assets of Jifu | 10,136,450 | 1,653,581 | |||||||||||||
Goodwill balance at March 31, 2014 | 2,736,550 | 446,419 | Goodwill balance at December 31, 2013 | 2,736,550 | 446,419 | |||||||||||||
Property_and_Equipment_net
Property and Equipment, net | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Property and Equipment, net [Abstract] | ' | ' | ||||||||||||||||
Property and Equipment, net | ' | ' | ||||||||||||||||
5. Property and Equipment, net | 5. Property and Equipment, net | |||||||||||||||||
Property, plant and equipment, net consist of the following: | Property and equipment, net consist of the following: | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
March 31, | December 31, | 2013 | 2012 | |||||||||||||||
2014 | 2013 | |||||||||||||||||
Equipment | $ | 249,543 | $ | 132,017 | ||||||||||||||
Equipment | $ | 247,585 | $ | 249,543 | Office equipment | 118,018 | 13,617 | |||||||||||
Office equipment | 117,032 | 118,018 | Leasehold improvements | 8,674 | 8,411 | |||||||||||||
Leasehold improvements | 8,602 | 8,674 | Software | 1,954 | 1,895 | |||||||||||||
Software | 1,938 | 1,954 | 378,189 | 155,940 | ||||||||||||||
375,157 | 378,189 | Less: Accumulated depreciation | (285,796 | ) | (65,565 | ) | ||||||||||||
Less: Accumulated depreciation | (290,872 | ) | (285,796 | ) | Property and equipment, net | $ | 92,393 | $ | 90,375 | |||||||||
Property and equipment, net | $ | 84,285 | $ | 92,393 | ||||||||||||||
The depreciation expense was $22,128 and $21,171 for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||||||||
During the three months ended March 31, 2014 and 2013, depreciation expense was approximately $5,744 and $7,409, respectively. |
Intangible_Assets_net
Intangible Assets, net | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Intangible Assets, net [Abstract] | ' | ' | ||||||||||||||||
Intangible Assets, net | ' | ' | ||||||||||||||||
6. Intangible Assets, net | 6. Intangible Assets, net | |||||||||||||||||
Intangible assets, net consist of the following: | Intangible assets, net consist of the following: | |||||||||||||||||
March 31, | December 31, | December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||||
Customer relationship | $ | 793,547 | $ | 793,547 | Customer relationship | $ | 793,547 | $ | - | |||||||||
Trade name | 500,470 | 500,470 | Trade name | 500,470 | - | |||||||||||||
1,294,017 | 1,294,017 | 1,294,017 | - | |||||||||||||||
Less: Accumulated amortization | - | - | Less: Accumulated amortization | - | - | |||||||||||||
Intangible assets, net | $ | 1,294,017 | $ | 1,294,017 | Intangible assets, net | $ | 1,294,017 | $ | - | |||||||||
Deferred_Revenue
Deferred Revenue | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Deferred Revenue [Abstract] | ' | ' | ||||||||||||||||
Deferred Revenue | ' | ' | ||||||||||||||||
7. Deferred Revenue | 7. Deferred Revenue | |||||||||||||||||
Deferred revenue represents deferred internet accelerator license revenue over the maintenance period of one to three years for our multiple element arrangements (Note 2). | Deferred revenue represents deferred internet accelerator license revenue over the maintenance period of one to three years for our multiple element arrangements (Note 2). | |||||||||||||||||
In addition, deferred revenue includes two government grants for use in research and development related expenditures for periods through July 2014. The portion of the grants that has not been spent is deferred and recognize as other income as the funds are spent on research and development related expenditures. | In addition, deferred revenue includes two government grants for use in research and development related expenditures for periods through July 2014. The portion of the grants that has not been spent is deferred and recognize as other income as the funds are spent on research and development related expenditures. | |||||||||||||||||
Deferred revenue included on the balance sheets as of March 31, 2014 and December 31, 2013 is as follow: | Deferred revenue included on the balance sheets as of December 31, 2013 and 2012 is as follow: | |||||||||||||||||
March 31, | December 31, | December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||||
Deferred revenue: | Deferred revenue: | |||||||||||||||||
Current | $ | 19,062 | $ | 19,223 | Current | $ | 19,223 | $ | 78,811 | |||||||||
Non-current | - | - | Non-current | - | 20,130 | |||||||||||||
Total | $ | 19,062 | $ | 19,223 | Total | $ | 19,223 | $ | 98,941 | |||||||||
The table below sets forth the deferred revenue activities during the three months ended March 31, 2014 and 2013: | The table below sets forth the deferred revenue activities during the years ended December 31, 2013 and 2012: | |||||||||||||||||
For the three months ended March 31, | For the years ended December 31, | |||||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||||
Deferred revenue, balance at beginning of period | $ | 19,223 | $ | 98,941 | Deferred revenue, balance at beginning of year | $ | 98,941 | $ | 301,231 | |||||||||
Less: government grant earned during the three months | - | (14,289 | ) | Add: Payments received from customers during the year | - | 105,721 | ||||||||||||
Less: Revenue earned during the three months | - | (21,010 | ) | Add: Government grant received during the year | - | 95,222 | ||||||||||||
Exchange rate difference | (161 | ) | - | Less: government grant earned during the year | (15,931 | ) | (135,602 | ) | ||||||||||
Deferred revenue, balance at end of period | $ | 19,062 | $ | 63,642 | Less: Revenue earned during the year | (63,787 | ) | (276,631 | ) | |||||||||
Deferred revenue, balance at end of year | $ | 19,223 | $ | 98,941 | ||||||||||||||
Convertible_Promissory_Notes
Convertible Promissory Notes | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Promissory Notes [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Promissory Notes | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||
8. Convertible Promissory Notes | 8. Convertible Promissory Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding balances for the four convertible promissory notes as of March 31, 2014 and December 31, 2013 are as follow: | Outstanding balances for the four convertible promissory notes as of December 31, 2013 and 2012 are as follow: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Lender | Date of Note | Maturity Date | Loan | Interest | Convertible | March 31, | December | Loan | Interest | Convertible | December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||
Amount | Rate (p.a.) | Number of | 2014 | 31, | Lender | Date of Note | Maturity Date | Amount | Rate (p.a.) | Number of stock | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
stock | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Vantage Associates SA | 15-Apr-11 | 15-Apr-16 | $ | 150,000 | 5 | % | 600,000 | $ | 150,000 | $ | 150,000 | |||||||||||||||||||||||||||||||||||||||||
Vantage Associates SA | 15-Apr-11 | 15-Apr-16 | $ | 150,000 | 5 | % | 600,000 | $ | 150,000 | $ | 150,000 | Empa Trading Ltd. | 5-Jun-11 | 5-Jun-16 | 100,000 | 5 | % | 400,000 | 100,000 | 100,000 | ||||||||||||||||||||||||||||||||
Empa Trading Ltd. | 5-Jun-11 | 5-Jun-16 | 100,000 | 5 | % | 400,000 | 100,000 | 100,000 | First Capital A.G. | 14-Jul-11 | 14-Jul-16 | 150,000 | 5 | % | 600,000 | 150,000 | 150,000 | |||||||||||||||||||||||||||||||||||
First Capital A.G. | 14-Jul-11 | 14-Jul-16 | 150,000 | 5 | % | 600,000 | 150,000 | 150,000 | First Capital A.G. | 9-Sep-11 | 9-Sep-16 | 200,000 | 5 | % | 800,000 | 200,000 | 200,000 | |||||||||||||||||||||||||||||||||||
First Capital A.G. | 9-Sep-11 | 9-Sep-16 | 200,000 | 5 | % | 800,000 | 200,000 | 200,000 | Vantage Associates SA | 9-Sep-11 | 9-Sep-16 | 200,000 | 5 | % | 800,000 | 200,000 | 200,000 | |||||||||||||||||||||||||||||||||||
Vantage Associates SA | 9-Sep-11 | 9-Sep-16 | 200,000 | 5 | % | 800,000 | 200,000 | 200,000 | Vantage Associates SA | 27-Oct-11 | 27-Oct-16 | 50,000 | 5 | % | 200,000 | 50,000 | 50,000 | |||||||||||||||||||||||||||||||||||
Vantage Associates SA | 27-Oct-11 | 27-Oct-16 | 50,000 | 5 | % | 200,000 | 50,000 | 50,000 | First Capital A.G. | 1-Dec-11 | 1-Dec-16 | 50,000 | 5 | % | 200,000 | 50,000 | 50,000 | |||||||||||||||||||||||||||||||||||
First Capital A.G. | 1-Dec-11 | 1-Dec-16 | 50,000 | 5 | % | 200,000 | 50,000 | 50,000 | First Capital A.G. | 23-Jan-12 | 23-Jan-17 | 50 000 | 5 | % | 200,000 | 50,000 | 50,000 | |||||||||||||||||||||||||||||||||||
First Capital A.G. | 23-Jan-12 | 23-Jan-17 | 50 000 | 5 | % | 200,000 | 50,000 | 50,000 | First Capital A.G. | 25-Apr-12 | April 25,2014 | 100,000 | 5 | % | 717,283 | 100,000 | 100,000 | |||||||||||||||||||||||||||||||||||
First Capital A.G. | 25-Apr-12 | April 25,2014 | 100,000 | 5 | % | 717,283 | 100,000 | 100,000 | Asher Enterprises, Inc. | July 27th, 2012 | April 13th, 2013 | 63,000 | 8 | % | - | - | 63,000 | |||||||||||||||||||||||||||||||||||
$ | 1,050,000 | $ | 1,050,000 | Asher Enterprises, Inc. | October 17,2012 | 17-Jul-13 | $ | 53,000 | 8 | % | - | - | 53,000 | |||||||||||||||||||||||||||||||||||||||
Less: | $ | 1,050,000 | $ | 1,166,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount | 299,742 | 367,425 | Less: | 367,425 | 804,993 | |||||||||||||||||||||||||||||||||||||||||||||||
from beneficial | Debt discount from beneficial conversion feature | |||||||||||||||||||||||||||||||||||||||||||||||||||
conversion feature | 682,575 | 361,007 | ||||||||||||||||||||||||||||||||||||||||||||||||||
750,258 | 682,575 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Less: | 60,703 | 46,040 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Less: | Current portion | |||||||||||||||||||||||||||||||||||||||||||||||||||
Current portion | 95,631 | 60,703 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-current portion | Non-current portion | $ | 621,872 | $ | 314,967 | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 654,627 | $ | 621,872 | |||||||||||||||||||||||||||||||||||||||||||||||||
The debt discount was the beneficial conversion feature of the notes. It is being accreted as additional interest expense ratably over the term of the convertible notes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The debt discount was the beneficial conversion feature of the notes. It is being accreted as additional interest expense ratably over the term of the convertible notes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expenses for the years ended December 31, 2013 and 2012 were $42,025 and $122,268 respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expenses for the three months ended March 31, 2014 and 2013 were $13,125 and $12,540 respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of the beneficial conversion feature for the year ended December 31, 2013 and 2012 were $504,195 and $340,816 respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of the beneficial conversion feature for the three months ended March 31, 2014 and 2013 were $75,437 and $112,522 respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Except for the convertible promissory note of $100,000 issued to First Capital A.G. on April 25, 2012, and the convertible promissory notes issued to Asher Enterprises, Inc., all the convertible promissory notes (the "Notes") are convertible upon the occurrence of the following events: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Except for the convertible promissory note of $100,000 issued to First Capital A.G. on April 25, 2012, all the convertible promissory notes (the "Notes") are convertible upon the occurrence of the following events: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) At any time, prior to the maturity date, the Company and the holder of the notes may mutually agree on a date to convert in whole or in part the notes into shares of common stock of the Company on the following terms: Holder of the note will be issued share units comprising of: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) At any time, prior to the maturity date, the Company and the holder of the notes may mutually agree on a date to convert in whole or in part the notes into shares of common stock of the Company on the following terms: Holder of the note will be issued share units comprising of: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(i) | one common share to be purchased at a price of $0.5, and | |||||||||||||||||||||||||||||||||||||||||||||||||||
(i) | one common share to be purchased at a price of $0.5, and | |||||||||||||||||||||||||||||||||||||||||||||||||||
(ii) | one warrant that is convertible into one common share at a price of $1.00, and expires two years from the date of the Exchange Transaction is completed, and | (ii) | one warrant that is convertible into one common share at a price of $1.00, and expires two years from the date of the Exchange Transaction is completed, and | |||||||||||||||||||||||||||||||||||||||||||||||||
(iii) | one warrant that is convertible into one common share at a price of $1.5, and expires three years from the date the Exchange Transaction is completed. | |||||||||||||||||||||||||||||||||||||||||||||||||||
(iii) | one warrant that is convertible into one common share at a price of $1.5, and expires three years from the date the Exchange Transaction is completed. | |||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Unless earlier converted into common stock mentioned above, if within twelve months of the date hereof the Company completes a Qualified Financing, as defined by the respective convertible promissory notes, the holder agrees to exchange the notes simultaneously with the initial closing of such Qualified Financing as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Unless earlier converted into common stock mentioned above, if within twelve months of the date hereof the Company completes a Qualified Financing, as defined by the respective convertible promissory notes, the holder agrees to exchange the notes simultaneously with the initial closing of such Qualified Financing as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) In the event of a debt Qualified Financing ("Qualified Debt Financing"), the Holder may at its option exchange in whole or in part this Note for a promissory note (or other evidence of indebtedness) in the same form and with the same terms and conditions as those issued in such Qualified Debt Financing and in a principal amount equal to the then outstanding Debt. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) In the event of a debt Qualified Financing ("Qualified Debt Financing"), the Holder may at its option exchange in whole or in part this Note for a promissory note (or other evidence of indebtedness) in the same form and with the same terms and conditions as those issued in such Qualified Debt Financing and in a principal amount equal to the then outstanding Debt. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) In the event of an equity Qualified Financing ("Qualified Equity Financing"), the Holder may at its option convert the Debt into shares of capital stock of the same class and series and with the same rights, preferences and privileges as those issued in such Qualified Equity Financing, at a price per share equal to the purchase price paid by investors in such Qualified Equity Financing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) In the event of an equity Qualified Financing ("Qualified Equity Financing"), the Holder may at its option convert the Debt into shares of capital stock of the same class and series and with the same rights, preferences and privileges as those issued in such Qualified Equity Financing, at a price per share equal to the purchase price paid by investors in such Qualified Equity Financing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The convertible promissory note of $100,000 issued to First Capital A.G. on April 25, 2012, is convertible upon the occurrence of the following events: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The convertible promissory note of $100,000 issued to First Capital A.G. on April 25, 2012, is convertible upon the occurrence of the following events: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) At any time, prior to the maturity date, the Company and the holder of the notes may mutually agree on a date to convert in whole or in part the notes into shares of common stock of the Company on the following terms: Holder of the note will be issued share units comprising of: (i) one common share to be purchased at a price of based on the moving average share price over the preceding 20 trading days, and (ii) one warrant that is convertible into one common share at a price based on the moving average share price over the preceding 20 trading days and expires two years from the date of the Exchange Transaction is completed, and (iii) one warrant that is convertible into one common share at a price based on the moving average share price over the preceding 20 trading days and expires three years from the date the Exchange Transaction is completed. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) At any time, prior to the maturity date, the Company and the holder of the notes may mutually agree on a date to convert in whole or in part the notes into shares of common stock of the Company on the following terms: Holder of the note will be issued share units comprising of: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Unless earlier converted into common stock mentioned above, if within twelve months of the date hereof the Company completes a Qualified Financing, as defined by the respective convertible promissory notes, the holder agrees to exchange the notes simultaneously with the initial closing of such Qualified Financing as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(i) one common share to be purchased at a price of based on the moving average share price over the preceding 20 trading days, and | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) In the event of a debt Qualified Financing ("Qualified Debt Financing"), the Holder may at its option exchange in whole or in part this Note for a promissory note (or other evidence of indebtedness) in the same form and with the same terms and conditions as those issued in such Qualified Debt Financing and in a principal amount equal to the then outstanding Debt. | (ii) one warrant that is convertible into one common share at a price based on the moving average share price over the preceding 20 trading days and expires two years from the date of the Exchange Transaction is completed, and | |||||||||||||||||||||||||||||||||||||||||||||||||||
(iii) one warrant that is convertible into one common share at a price based on the moving average share price over the preceding 20 trading days and expires three years from the date the Exchange Transaction is completed. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) In the event of an equity Qualified Financing ("Qualified Equity Financing"), the Holder may at its option convert the Debt into shares of capital stock of the same class and series and with the same rights, preferences and privileges as those issued in such Qualified Equity Financing, at a price per share equal to the purchase price paid by investors in such Qualified Equity Financing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Unless earlier converted into common stock mentioned above, if within twelve months of the date hereof the Company completes a Qualified Financing, as defined by the respective convertible promissory notes, the holder agrees to exchange the notes simultaneously with the initial closing of such Qualified Financing as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The fair value of the embedded conversion feature of these notes as at March 31, 2014 and December 31, 2013 were $356,700 and $384,598, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) In the event of a debt Qualified Financing ("Qualified Debt Financing"), the Holder may at its option exchange in whole or in part this Note for a promissory note (or other evidence of indebtedness) in the same form and with the same terms and conditions as those issued in such Qualified Debt Financing and in a principal amount equal to the then outstanding Debt. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Except for the convertible promissory note of $100,000 issued to First Capital A.G. on April 25, 2012, the fair value of the convertible notes was calculated using the Black-Scholes model with the following assumptions: expected life of 2 years, expected dividend rate of 0%, volatility of 181.9% and interest rate at 0.44% . | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) In the event of an equity Qualified Financing ("Qualified Equity Financing"), the Holder may at its option convert the Debt into shares of capital stock of the same class and series and with the same rights, preferences and privileges as those issued in such Qualified Equity Financing, at a price per share equal to the purchase price paid by investors in such Qualified Equity Financing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The fair value of the convertible promissory note of $100,000 issued to First Capital A.G. on April 25, 2012, was calculated using the lattice valuation method as the conversion prices are variable for these notes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The convertible promissory note issued to Asher Enterprises, Inc., is convertible upon the occurrence of the following events: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The following assumptions provide information regarding the convertible promissory note of $100,000 issued to Fist Capital A.G. as of December 31, 2013: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
1) | At any time during the period beginning on the date which is 180 days following the date of the convertible promissory note, and ending on the later of the maturity date and the date of payment in default, the remaining outstanding principal amount shall convert into fully paid and non-assessable shares of the company's common stock. The conversion price shall equal the variable conversion price, which is 60% multiplied by the market price of the common stock, as defined in the promissory note agreement. | |||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2) | In the event of a consolidation or merger with any other corporation (other than a merger in which the Company is the surviving corporation and its capital stock is unchanged), or asset sale, then the conversion price is subject to adjustment, as defined by the convertible promissory note agreement. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issuable upon conversion | 717,283 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Market value of common stock on measurement date (1) | 0.12 | The fair value of the embedded conversion feature of these notes as at December 31, 2013 and 2012 was $384,598 and $423,480, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Exercise price | 0.14 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Risk free interest rate (2) | 0.07 | % | Except for the convertible promissory note of $100,000 issued to First Capital A.G. on April 25, 2012, and the convertible promissory notes issued to Asher Enterprises, Inc., the fair value of the convertible notes was calculated using the Black-Scholes model with the following assumptions: expected life of 3 years, expected dividend rate of 0%, volatility of 208.6% and interest rate at 0.38% . | |||||||||||||||||||||||||||||||||||||||||||||||||
Term in year | 0.32 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Expected volatility (3) | 208.6 | % | The fair value of the convertible promissory note of $100,000 issued to First Capital A.G. on April 25, 2012, and the convertible promissory notes issued to Asher Enterprises, Inc., was calculated using the lattice valuation method as the conversion prices are variable for these notes. | |||||||||||||||||||||||||||||||||||||||||||||||||
Expected dividend yield (4) | 0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
The following assumptions provide information regarding the convertible promissory note of $100,000 issued to Fist Capital A.G. as of December 31, 2013: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
-1 | The market value of common stock is the stock price at the close of trading on the date of December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | The risk-free interest rate was determined by management using the Treasury Bill rates with maturity from 3-month to 6-month as of December 31, 2013. | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
-3 | Expected volatility is based on average volatility of historical share trade information. The Company believes this method produces an estimate that is representative of the Company's expectations of future volatility over the expected term of the warrants. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issuable upon conversion | 717,283 | |||||||||||||||||||||||||||||||||||||||||||||||||||
-4 | Management determined the dividend yield to be 0% based upon its expectation that it will not pay dividends for the foreseeable future. | Market value of common stock on measurement date (1) | 0.12 | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Exercise price | 0.14 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value on a Recurring Basis | Risk free interest rate (2) | 0.07 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Term in year | 0.32 | |||||||||||||||||||||||||||||||||||||||||||||||||||
The following table sets forth, by level within the fair value hierarchy, the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2014: | Expected volatility (3) | 208.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Expected dividend yield (4) | 0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at March 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Descriptions | Quoted Prices | Significant | Significant | Total Carrying | -1 | The market value of common stock is the stock price at the close of trading on the date of December 31, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||
In | Other | Unobservable | Value as of | |||||||||||||||||||||||||||||||||||||||||||||||||
Active Markets | Observable | Inputs | 31-Mar-14 | -2 | The risk-free interest rate was determined by management using the Treasury Bill rates with maturity from 3-month to 6-month as of December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||
for | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | -3 | Expected volatility is based on average volatility of historical share trade information. The Company believes this method produces an estimate that is representative of the Company's expectations of future volatility over the expected term of the warrants. | |||||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
-4 | Management determined the dividend yield to be 0% based upon its expectation that it will not pay dividends for the foreseeable future. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative warrant instruments | - | - | 356,700 | 356,700 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | - | - | 356,700 | 356,700 | ||||||||||||||||||||||||||||||||||||||||||||||||
The following table sets forth, by level within the fair value hierarchy, the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2013: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices In | Significant | |||||||||||||||||||||||||||||||||||||||||||||||||||
Active Markets for | Significant Other | Unobservable | Total Carrying | |||||||||||||||||||||||||||||||||||||||||||||||||
Identical Assets | Observable Inputs | Inputs | Value as of | |||||||||||||||||||||||||||||||||||||||||||||||||
Descriptions | (Level 1) | (Level 2) | (Level 3) | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative warrant instruments | - | - | 384,598 | 384,598 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | - | - | 384,598 | 384,598 | ||||||||||||||||||||||||||||||||||||||||||||||||
Shortterm_Bank_Loans
Short-term Bank Loans | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Short-term Bank Loans [Abstract] | ' | ||||||||||||||
Short-term Bank Loans | ' | ||||||||||||||
9. Short-term Bank Loans | |||||||||||||||
Short term bank loans consisted of the following: | |||||||||||||||
March 31, | December 31, | ||||||||||||||
Due date | Interest rate | 2014 | 2013 | ||||||||||||
Unsecured bank loan: | |||||||||||||||
China Construction Bank | 4/30/14 | 5.54% per annum | $ | 2,272,026 | $ | - | |||||||||
$ | 2,272,026 | $ | - | ||||||||||||
Short-term bank loan interest expense for the three months ended March 31, 2014 and 2013 was $31,636 and nil respectively. |
Income_Tax
Income Tax | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Income Tax [Abstract] | ' | ' | ||||||||||||||||
Income Tax | ' | ' | ||||||||||||||||
10. Income Tax | 9. Income Tax | |||||||||||||||||
We are subject to income tax in the United States, Hong Kong and PRC. | We are subject to income tax in the United States, Hong Kong and PRC. | |||||||||||||||||
The Company's subsidiaries, Jifu, CC Power and CC Investment are incorporated in PRC and are subjected to PRC enterprises income tax at the applicable tax rates on the taxable income as reported in their Chinese statutory accounts in accordance with the relevant enterprises income tax laws ("EIT Law"). The subsidiaries locate in Shenzhen, a special economic region, where companies are allowed to gradually phase into the 25% statutory tax rate. For 2014 and 2013, the statutory income tax rate is 25%. The open tax years in PRC are 2009-2014. | The Company's subsidiaries, Jifu, CC Power and CC Investment are incorporated in PRC and are subjected to PRC enterprises income tax at the applicable tax rates on the taxable income as reported in their Chinese statutory accounts in accordance with the relevant enterprises income tax laws ("EIT Law"). The subsidiaries locate in Shenzhen, a special economic region, where companies are allowed to gradually phase into the 25% statutory tax rate. For 2013 the statutory income tax rate is 25%. The open tax years in PRC are 2009-2013. | |||||||||||||||||
CC Mobility is incorporated in Hong Kong and is subjected to Hong Kong corporate income tax at 16.5% statutory income tax rate. No Hong Kong profits tax has been provided in the financial statements, as the Company did not have any assessable profits for the three months ended March 31, 2014 and 2013. The open tax year for CC Mobility in Hong Kong are 2012-2014. | CC Mobility is incorporated in Hong Kong and is subjected to Hong Kong corporate income tax at 16.5% statutory income tax rate. No Hong Kong profits tax has been provided in the financial statements, as the Company did not have any assessable profits for the years ended December 31, 2013 and 2012. The open tax year for CC Mobility in Hong Kong are 2012-2013. | |||||||||||||||||
The Company has no income tax expense for the three months ended March 31, 2014 and 2013 because it has not net assessable income. | The Company has no income tax expense for the years ended December 31, 2013 and 2012 because it has incurred loss before tax from continuing operation. | |||||||||||||||||
The Company applied the provisions of ASC 740.10.50, "Accounting for Uncertainty in Income Taxes", which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our financial statements. ASC 740.10.50 prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. ASC 740.10.50 also provides guidance related to, among other things, classification, accounting for interest and penalties associated with tax positions, and disclosure requirements. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the statements of operation. The Company's policy for recording interest and penalties associated with audits is to record such items as a component of income tax expense. | The Company applied the provisions of ASC 740.10.50, "Accounting for Uncertainty in Income Taxes", which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our financial statements. ASC 740.10.50 prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. ASC 740.10.50 also provides guidance related to, among other things, classification, accounting for interest and penalties associated with tax positions, and disclosure requirements. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the statements of operation. The Company's policy for recording interest and penalties associated with audits is to record such items as a component of income tax expense. | |||||||||||||||||
The following table sets forth the components of deferred income taxes as of March 31, 2014 and December 31, 2013: | The following table sets forth the components of deferred income taxes as of December 31, 2013 and 2012: | |||||||||||||||||
March 31, | December 31, | December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||||
Deferred tax assets: | Deferred tax assets: | |||||||||||||||||
Net operating losses - U.S. | $ | 102,936 | $ | 1,195,355 | Net operating losses - U.S. | $ | 1,195,355 | $ | 129,630 | |||||||||
Deferred revenue | - | 19,223 | Net operating losses - PRC and Hong Kong | - | 68,625 | |||||||||||||
102,936 | 1,214,578 | Deferred revenue | 19,223 | 19,703 | ||||||||||||||
Valuation allowance | (102,936 | ) | (1,214,578 | ) | ||||||||||||||
Deferred tax assets, net | $ | - | $ | - | 1,214,578 | 217,958 | ||||||||||||
Valuation allowance | (1,214,578 | ) | (217,958 | ) | ||||||||||||||
As of March 31, 2014, the Company has net operating losses carry forward of $1,923,997 in the U.S. and $681,272 in Hong Kong and PRC available to offset future taxable income. They will begin to expire in 2030 and 2013, respectively. We provided for a full valuation allowance against the deferred tax assets of $102,936 on the expected future tax benefits from the net operating loss carry forwards as management believes it is more likely than not that these assets will not be realized in the future. | Deferred tax assets, net | $ | - | $ | - | |||||||||||||
The change in valuation allowance for the three months ended March 31, 2014 and 2013 was a decrease of $1,111,642 and an increase of $133,702, respectively. | As of December 31, 2013, the Company has net operating losses carry forward of $1,821,061 in the U.S. and $883,185 in Hong Kong and PRC available to offset future taxable income. They will begin to expire in 2030 and 2013, respectively. We provided for a full valuation allowance against the deferred tax assets of $1,214,578 on the expected future tax benefits from the net operating loss carry forwards as management believes it is more likely than not that these assets will not be realized in the future. | |||||||||||||||||
The Company did not recognize any interest or penalties related to unrecognized tax benefits for the three months ended March 31, 2014 and 2013. | The change in valuation allowance for the years ended December 31, 2013 and 2012 was an increase of $996,620 and a decrease of $403, respectively. | |||||||||||||||||
The Company did not recognize any interest or penalties related to unrecognized tax benefits for the years ended December 31, 2013 and 2012. |
Employee_Benefits
Employee Benefits | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Employee Benefits [Abstract] | ' | ' |
Employee Benefits [Text Block] | ' | ' |
11. Employee Benefits | 10. Employee Benefits | |
The Company contributes to a state pension plan organized by municipal and provincial governments in respect of its employees in PRC. The compensation expense related to this plan was $17,101 and $2,586 for the three months ended March 31, 2014 and 2013, respectively. | The Company contributes to a state pension plan organized by municipal and provincial governments in respect of its employees in PRC. The compensation expense related to this plan was $20,073 and $6,600 for the years ended December 31, 2013 and 2012, respectively. |
Loss_earnings_per_Share
(Loss) earnings per Share | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
(Loss) earnings per Share [Abstract] | ' | ' | ||||||||||||||||
(Loss) earnings per Share | ' | ' | ||||||||||||||||
12. Earnings (loss) per share | 11. (Loss) earnings per Share | |||||||||||||||||
Basic earnings (loss) per share are computed on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted loss per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the if-converted method for the convertible notes and preferred stock and the treasury stock method for warrants and options. The following table sets forth the computation of basic and diluted net loss per share: | Basic (loss) earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted loss per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the if-converted method for the convertible notes and preferred stock and the treasury stock method for warrants and options. | |||||||||||||||||
For The Three Months Ended | The following table sets forth the computation of basic and diluted net loss per share: | |||||||||||||||||
March 31, | For The Years Ended | |||||||||||||||||
2014 | 2013 | December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||||
Net income (loss) available for common shareholders - basic | $ | 98,976 | $ | (371,108 | ) | Net income (loss) available for common shareholders - basic | ||||||||||||
Interest expense on convertible notes | 13,125 | 12,540 | $ | (504,848 | ) | $ | (434,769 | ) | ||||||||||
Net income (loss) available for common shareholders - diluted | $ | 112,101 | $ | (358,568 | ) | Interest expense on convertible notes | 42,025 | 122,268 | ||||||||||
Net income (loss) available for common shareholders - diluted | ||||||||||||||||||
Weighted average outstanding shares of common stock - basic | 73,127,686 | 60,195,591 | $ | (462,823 | ) | $ | (312,501 | ) | ||||||||||
Dilutive shares: | Weighted average outstanding shares of common stock - basic | |||||||||||||||||
Conversion of convertible notes payable | 4,517,283 | - | 68,606,084 | 60,000,000 | ||||||||||||||
Effect of dilutive securities - convertible notes | ||||||||||||||||||
Weighted average outstanding shares of common stock - diluted | 77,644,969 | 60,195,591 | - | - | ||||||||||||||
Weighted average outstanding shares of common stock -diluted | ||||||||||||||||||
Earnings (loss) per share - basic | $ | 0.0014 | $ | (0.0062 | ) | 68,606,084 | 60,000,000 | |||||||||||
Profit (loss) per share - basic | $ | (0.01 | ) | $ | (0.01 | ) | ||||||||||||
Earnings (loss) per share - diluted | $ | 0.0014 | $ | (0.0062 | ) | Profit (loss) per share - diluted | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
Since the company is suffering losses, the dilutive loss per share is equal to the basic loss per share for the three months ended March 31, 2013, because the convertible notes are anti-dilutive. | For the fiscal years ended December 31, 2013 and 2012, there are 0 potentially dilutive common shares because the Company recorded net losses in 2013 and 2012. | |||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||
Commitments and Contingencies [Abstract] | ' | ' | ||||||||
Commitments and Contingencies | ' | ' | ||||||||
13. Commitments and Contingencies | 12. Commitments and Contingencies | |||||||||
Operating commitments: | Operating commitments: | |||||||||
Operating lease agreement generally contains renewal options that may be exercised at the Company's discretion after the completion of the terms. The Company's obligations under operating lease are as follows: | Operating lease agreement generally contains renewal options that may be exercised at the Company's discretion after the completion of the terms. The Company's obligations under operating lease are as follows: | |||||||||
2014 | $ | 29,122 | 2014 | $ | 29,605 | |||||
Thereafter | - | Thereafter | - | |||||||
Total minimum payment | $ | 29,122 | Total minimum payment | $ | 29,605 | |||||
The Company incurred rental expenses of $39,489 and $21,412 for the three months ended March 31, 2014 and 2013, respectively. | The Company incurred rental expenses of $32,080 and $85,300 for the years ended December 31, 2013 and 2012, respectively. |
Concentrations_Risks_and_Uncer
Concentrations, Risks, and Uncertainties | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Concentrations, Risks, and Uncertainties [Abstract] | ' | ' | ||||||||||||||||
Concentrations, Risks, and Uncertainties | ' | ' | ||||||||||||||||
14. Concentrations, Risks, and Uncertainties | 13. Concentrations, Risks, and Uncertainties | |||||||||||||||||
Customer Concentrations | Customer Concentrations | |||||||||||||||||
The Company has the following concentrations of business with each customer constituting greater than 10% of the Company's gross sales: | The Company has the following concentrations of business with each customer constituting greater than 10% of the Company's gross sales: | |||||||||||||||||
For The Years Ended | ||||||||||||||||||
For The Three Months Ended | December 31, | |||||||||||||||||
March 31, | 2013 | 2012 | ||||||||||||||||
2014 | 2013 | |||||||||||||||||
Customer A | 34 | % | * | |||||||||||||||
Customer A | 99.98 | % | - | Customer B | 15 | % | * | |||||||||||
Customer B | - | 37 | % | Customer C | * | 86 | % | |||||||||||
Customer C | - | 37 | % | |||||||||||||||
Customer D | - | 26 | % | * Constitutes less than 10% of the Company's gross sales. | ||||||||||||||
* Constitutes less than 10% of the Company's gross sales. | The Company has not experienced any significant difficulty in collecting its accounts receivable in the past and is not aware of any financial difficulties being experienced by its major customers. | |||||||||||||||||
The Company has not experienced any significant difficulty in collecting its accounts receivable in the past and is not aware of any financial difficulties being experienced by its major customers. |
Operating_Risk
Operating Risk | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Operating Risk [Abstract] | ' | ' |
Operating Risk | ' | ' |
15. Operating Risk | 14. Operating Risk | |
The Company's operations are all carried out in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC's economy. | The Company's operations are all carried out in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC's economy. | |
The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in the North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company's results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. | The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in the North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company's results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. |
Related_Party_Transaction
Related Party Transaction | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transaction [Abstract] | ' |
Related Party Transaction | ' |
15. Related Party Transaction | |
Effective October 1, 2011 for a period of one year, the Company's subsidiary, CC Mobility engaged the Company's shareholder, CC Wireless Limited, to provide technical consultation for product R&D and business development. The monthly fee is determined periodically. During the years ended December 31, 2013 and 2012, nil and $42,800 of consulting fee were paid to CC Wireless Limited respectively. |
Restricted_Stock_to_Director
Restricted Stock to Director | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Stock to Director [Abstract] | ' |
Restricted Stock to Director | ' |
16. Restricted Stock to Director | |
On April 20, 2012, the Board of Directors of the Company appointed Jack Zwick as the independent director of the Company and granted to Mr. Zwick 360,000 shares of the Company's common stock. The restricted stock shall vest with respect to 1/8 th of the total number of restricted stock per quarter from vesting commencement date of April 1, 2012 such that all restricted stock shall vest on January 1, 2013, subject to his continuous service. The fair value of the restricted stock on the grant date is $201,600. | |
In November 2012, Mr. Zwick resigned from the Board of Directors. In connection with the Mutual Release and Settlement Agreement entered into between the Company and Mr. Zwick on March 13, 2013, the Company granted Jack Zwick 150,000 shares of the Company's common stock, par value $0.001 per share, as consideration for his past services rendered to the Company and in consideration for Jack Zwick's release and waiver of claims regarding certain compensation owed to Jack Zwick. The fair value of the 150,000 shares on the grant date is $12,000. | |
On August 14, 2012, the Board of Directors of the Company granted 360,000 shares of the Company's common stock to Gregory Tse for his service to serve as the Company's independent director. The restricted stock shall vest with respect to 120,000 shares of Restricted Stock immediately, 45,000 shares on September 1, 2012, 45,000 shares on January 1, 2013, 45,000 shares on May 1, 2013, 45,000 shares on September 1, 2013, and the remaining 45,000 shares on January 1, 2014, subject to his continuous service. The fair value of the restricted stock on the grant date is $82,800. | |
The fair value of the restricted stock is recognized as stock based compensation over the service period. The shares have not been issued as of December 31, 2012. | |
During the year ended December 31, 2012, 180,000 shares were vested and stock based compensation expense totaled $59,900 was recorded. |
Subsequent_Events
Subsequent Events | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' | ' |
Subsequent Events | ' | ' |
16. Subsequent Events | 17. Subsequent Events | |
The Company has evaluated all other subsequent events through May 14, 2014, the date these consolidated financial statements were issued, and determined that there were no other subsequent events or transactions that require recognition or disclosures in the financial statements. | The Company has evaluated all other subsequent events through March 31, 2014, the date these consolidated financial statements were issued, and determined that there were no other subsequent events or transactions that require recognition or disclosures in the financial statements. | |
Schedule_II_Shenzhen_Jifu_Comm
Schedule II - Shenzhen Jifu Communication Technology Co., Ltd | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Schedule II - Shenzhen Jifu Communication Technology Co., Ltd [Abstract] | ' | ||||
Schedule II - Shenzhen Jifu Communication Technology Co., Ltd | ' | ||||
SHENZHEN JIFU COMMUNICATION TECHNOLOGY CO., LTD | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
AS AT JULY 4, 2013 | |||||
(Stated in US Dollars) | |||||
As of | |||||
4-Jul-13 | |||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 60,449 | |||
Trade accounts receivable | 1,392,440 | ||||
Other receivables, net | 332,409 | ||||
Inventories | 664 | ||||
Total current assets | $ | 1,785,962 | |||
Long-term assets: | |||||
Property, plant and equipment, net | 23,301 | ||||
TOTAL ASSETS | $ | 1,809,263 | |||
LIABILITIES | |||||
Current liabilities: | |||||
Accounts payable | $ | 290,830 | |||
Other payables and accrued expenses | 608,174 | ||||
Other taxes payables | 57,208 | ||||
Total current liabilities | $ | 956,212 | |||
TOTAL LIABILITIES | $ | 956,212 | |||
STOCKHOLDERS' EQUITY | |||||
Registered capital | $ | 362,472 | |||
Retained earnings | 383,074 | ||||
Accumulated other comprehensive income | 107,505 | ||||
TOTAL STOCKHOLDERS' EQUITY | $ | 853,051 | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,809,263 | |||
SHENZHEN JIFU COMMUNICATION TECHNOLOGY CO., LTD | |||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATION AND COMPREHENSIVE LOSS | |||||
FOR THE PERIOD FROM JANUARY 1 TO JULY 4, 2013 | |||||
(Stated in US Dollars) | |||||
From the period of | |||||
1-Jan-13 | |||||
to | |||||
4-Jul-13 | |||||
Net sales | $ | 1,929,970 | |||
Costs of sales | 697,392 | ||||
Gross profit | $ | 1,232,578 | |||
Selling expense | 42,557 | ||||
General and administrative expenses | 862,754 | ||||
Total Operating Expenses | 905,311 | ||||
Income from operations | $ | 327,267 | |||
Other expenses (income) | |||||
Other income | 119,756 | ||||
Income before income taxes | $ | 447,023 | |||
Income tax provision | - | ||||
Net income | $ | 447,023 | |||
Foreign currency translation gain(loss) | (6,609 | ) | |||
Comprehensive income | $ | 440,414 | |||
SHENZHEN JIFU COMMUNICATION TECHNOLOGY CO., LTD | |||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
FOR THE PERIOD FROM JANUARY 1 TO JULY 4, 2013 | |||||
(Stated in US Dollars) | |||||
For the period from | |||||
1-Jan-13 | |||||
to | |||||
4-Jul-13 | |||||
Cash flows provided by (used for) operating activities: | |||||
Net income | $ | 447,023 | |||
Depreciation | 4,383 | ||||
Adjustments to reconcile net income to net cash provided | |||||
by (used for) operating activities: | |||||
Trade accounts receivable | (1,320,606 | ) | |||
Other receivable and prepayment | (5,434 | ) | |||
Inventory | (654 | ) | |||
Account payables | 287,739 | ||||
Other payables and accrued expenses | 607,714 | ||||
Net cash provided by (used for) operating activities | $ | 20,165 | |||
Cash flows provided by (used for) investing activities: | |||||
Acquisition of plant and equipment | $ | (848 | ) | ||
Net cash provided by (used for) investing activities | $ | (848 | ) | ||
Net cash provided by (used for) financing activities | $ | - | |||
Effect of Exchange Rate Changes on Cash | $ | 1,000 | |||
Net increase (decrease) in cash and cash equivalents | $ | 20,317 | |||
Cash and cash equivalents - beginning of period | $ | 40,132 | |||
Cash and cash equivalents - end of period | $ | 60,449 | |||
Supplementary disclosure of cash flow information: | |||||
Interest received | $ | - | |||
Interest paid | $ | - |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ' | ||||||||||||||||
Basis of presentation | ' | ' | ||||||||||||||||
Basis of presentation | Basis of presentation | |||||||||||||||||
The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries at March 31, 2014 and for the three months ended March 31, 2014 and 2013 reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the financial position and results of operations of the Company for the periods presented. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The accompanying condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended December 31, 2013. The Company follows the same accounting policies in the preparation of interim reports. The Company's accounting policies used in the preparation of the accompanying financial statements conform to accounting principles generally accepted in the United States of America ("US GAAP") | The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and have been consistently applied. The functional currency is the Chinese Renminbi, however the accompanying condensed consolidated financial statements have been translated and presented in United States Dollars ($). All significant inter-company balances and transactions have been eliminated in consolidation. | |||||||||||||||||
The functional currency is the Chinese Renminbi, however the accompanying condensed consolidated financial statements have been translated and presented in United States Dollars ($). All significant inter-company balances and transactions have been eliminated in consolidation. | ||||||||||||||||||
All dollars are rounded to nearest hundred except for share data. | ||||||||||||||||||
Estimates | ' | ' | ||||||||||||||||
Use of estimates | Use of estimates | |||||||||||||||||
In preparing financial statements in conformity with US GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported periods. Actual results could differ from those estimates. | In preparing financial statements in conformity with US GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported periods. Actual results could differ from those estimates. | |||||||||||||||||
Significant Estimates | Significant Estimates | |||||||||||||||||
These financial statements include some amounts that are based on management's best estimates and judgments. The most significant estimates relate to depreciation of property, plant and equipment, the valuation allowance for deferred taxes. It is reasonably possible that the above-mentioned estimates and others may be adjusted as more current information becomes available, and any adjustment could be significant in future reporting periods. | These financial statements include some amounts that are based on management's best estimates and judgments. The most significant estimates relate to depreciation of property, plant and equipment, the valuation allowance for deferred taxes. It is reasonably possible that the above-mentioned estimates and others may be adjusted as more current information becomes available, and any adjustment could be significant in future reporting periods. | |||||||||||||||||
Variable Interest Entity | ' | ' | ||||||||||||||||
Variable Interest Entity | Variable Interest Entity | |||||||||||||||||
The accounts of CC Power have been consolidated with the accounts of the Company because CC Power is a variable interest entity with respect to CC Investment, which is a wholly-owned subsidiary of the Company. CC Investment entered into five agreements dated August 22, 2011 with CC Power Shareholder and with CC Power pursuant to which CC Investment provides CC Power with exclusive technology consulting and management services. In summary, the five agreements contain the following terms: | CC Power | |||||||||||||||||
Entrusted Management Agreement. This agreement provides that CC Investment will provide exclusive management services to CC Power. Such management services include but are not limited to financial management, business management, marketing management, human resource management and internal control of CC Power. The Entrusted Management Agreement will remain in effect until the acquisition of all assets or equity of CC Power by CC Investment is complete (as more fully described in the Exclusive Purchase Option Agreement below). | The accounts of CC Power have been consolidated with the accounts of the Company because CC Power is a variable interest entity with respect to CC Investment, which is a wholly-owned subsidiary of the Company. CC Investment entered into five agreements dated August 22, 2011 with CC Power Shareholder and with CC Power pursuant to which CC Investment provides CC Power with exclusive technology consulting and management services. In summary, the five agreements contain the following terms: | |||||||||||||||||
Technical Services Agreement. This agreement provides that CC Investment will provide exclusive technical services to CC Power. Such technical services include but are not limited to software, computer system, data analysis, training and other technical services. CC Investment shall be entitled to charge CC Power service fees equivalent to CC Power's total net income. The Technical Service Agreement will remain in effect until the acquisition of all assets or equity of CC Power by CC Investment is complete (as more fully described in the Exclusive Purchase Option Agreement below). | Entrusted Management Agreement. This agreement provides that CC Investment will provide exclusive management services to CC Power. Such management services include but are not limited to financial management, business management, marketing management, human resource management and internal control of CC Power. The Entrusted Management Agreement will remain in effect until the acquisition of all assets or equity of CC Power by CC Investment is complete (as more fully described in the Exclusive Purchase Option Agreement below). | |||||||||||||||||
Exclusive Purchase Option Agreement. Under the Exclusive Purchase Option Agreement, the CC Power Shareholder granted CC Investment an irrevocable and exclusive purchase option to acquire CC Power's equity and/or assets at a nominal consideration. CC Investment may exercise the purchase option at any time. | Technical Services Agreement. This agreement provides that CC Investment will provide exclusive technical services to CC Power. Such technical services include but are not limited to software, computer system, data analysis, training and other technical services. CC Investment shall be entitled to charge CC Power service fees equivalent to CC Power's total net income. The Technical Service Agreement will remain in effect until the acquisition of all assets or equity of CC Power by CC Investment is complete (as more fully described in the Exclusive Purchase Option Agreement below). | |||||||||||||||||
Loan Agreement. Under the Loan Agreement, CC Investment agreed to lend RMB 10,000,000 to the CC Power Shareholder, to be used solely for the operations of CC Power. | Exclusive Purchase Option Agreement. Under the Exclusive Purchase Option Agreement, the CC Power Shareholder granted CC Investment an irrevocable and exclusive purchase option to acquire CC Power's equity and/or assets at a nominal consideration. CC Investment may exercise the purchase option at any time. | |||||||||||||||||
Equity Pledge Agreement. Under the Equity Pledge Agreement, the CC Power Shareholder pledged all of its equity interests in CC Power, including the proceeds thereof, to guarantee all of CC Investment's rights and benefits under the Entrusted Management Agreement, the Technical Service Agreement, the Exclusive Purchase Option Agreement and the Loan Agreement. Prior to termination of this Equity Pledge Agreement, the pledged equity interests cannot be transferred without CC Investment's prior consent. The CC Power Shareholder covenants to CC Investment that among other things, it will only appoint/elect the candidates for the directors of CC Power nominated by CC Investment. | Loan Agreement. Under the Loan Agreement, CC Investment agreed to lend RMB 10,000,000 to the CC Power Shareholder, to be used solely for the operations of CC Power. | |||||||||||||||||
Equity Pledge Agreement. Under the Equity Pledge Agreement, the CC Power Shareholder pledged all of its equity interests in CC Power, including the proceeds thereof, to guarantee all of CC Investment's rights and benefits under the Entrusted Management Agreement, the Technical Service Agreement, the Exclusive Purchase Option Agreement and the Loan Agreement. Prior to termination of this Equity Pledge Agreement, the pledged equity interests cannot be transferred without CC Investment's prior consent. The CC Power Shareholder covenants to CC Investment that among other things, it will only appoint/elect the candidates for the directors of CC Power nominated by CC Investment. | ||||||||||||||||||
In sum, the agreements transfer to CC Investment all of the benefits and all of the risk arising from the operations of CC Power, as well as complete managerial authority over the operations of CC Power. Through these contractual arrangements, the Company has the ability to substantially influence CC Power's daily operations and financial affairs, appoint its directors and senior executives, and approve all matters requiring board and/or shareholder approval. These contractual arrangements enable the Company to control CC Power and operate our business in the PRC through CC Investment. By reason of the relationship described in these agreements, CC Power is a variable interest entity with respect to CC Investment and CC Investment is considered the primary beneficiary of CC Power because the following characteristics identified in ASC 810-10-15-14 are present: | ||||||||||||||||||
- | The holder of the equity investment in CC Power lacks the direct or indirect ability to make decisions about the entity's activities that have a significant effect on the success of CC Power, having assigned their voting rights and all managerial authority to CC Investment. (ASC 810-10-15-14(b)(1)). | In sum, the agreements transfer to CC Investment all of the benefits and all of the risk arising from the operations of CC Power, as well as complete managerial authority over the operations of CC Power. Through these contractual arrangements, the Company has the ability to substantially influence CC Power's daily operations and financial affairs, appoint its directors and senior executives, and approve all matters requiring board and/or shareholder approval. These contractual arrangements enable the Company to control CC Power and operate our business in the PRC through CC Investment. By reason of the relationship described in these agreements, CC Power is a variable interest entity with respect to CC Investment and CC Investment is considered the primary beneficiary of CC Power because the following characteristics identified in ASC 810-10-15-14 are present: | ||||||||||||||||
- | The holder of the equity investment in CC Power lacks the obligation to absorb the expected losses of CC Power, having assigned to CC Investment all revenue and responsibility for all payables. (ASC 810-10-15-14(b)(2). | The holder of the equity investment in CC Power lacks the direct or indirect ability to make decisions about the entity's activities that have a significant effect on the success of CC Power, having assigned their voting rights and all managerial authority to CC Investment. (ASC 810-10-15-14(b)(1)). | ||||||||||||||||
- | The holder of the equity investment in CC Power lacks the right to receive the expected residual returns of CC Power, having granted to CC Investment all revenue as well as an option to purchase the equity interests at a fixed price. (ASC 810-10-15-14(b)(3)). | The holder of the equity investment in CC Power lacks the obligation to absorb the expected losses of CC Power, having assigned to CC Investment all revenue and responsibility for all payables. (ASC 810-10-15-14(b)(2). | ||||||||||||||||
Accordingly, the Company's condensed consolidated financial statements reflect the results of operations, assets and liabilities of CC Power. The carrying amount and classification of CC Power's assets and liabilities included in the Condensed Consolidated Balance Sheets are as follows: | The holder of the equity investment in CC Power lacks the right to receive the expected residual returns of CC Power, having granted to CC Investment all revenue as well as an option to purchase the equity interests at a fixed price. (ASC 810-10-15-14(b)(3)). | |||||||||||||||||
March 31, | December 31, | Accordingly, the Company's condensed consolidated financial statements reflect the results of operations, assets and liabilities of CC Power. The carrying amount and classification of CC Power's assets and liabilities included in the Condensed Consolidated Balance Sheets are as follows: | ||||||||||||||||
2014 | 2013 | December 31, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||||
Total current assets | $ | 89,058 | $ | 86,173 | ||||||||||||||
Total assets | 244,583 | 153,178 | Total current assets | $ | 86,173 | $ | 113,894 | |||||||||||
Total current liabilities | 527,507 | 551,012 | Total assets | 153,178 | 190,199 | |||||||||||||
Total liabilities | 527,507 | 551,012 | Total current liabilities | 551,012 | 320,873 | |||||||||||||
Total liabilities | 551,012 | 341,003 | ||||||||||||||||
Jifu | ||||||||||||||||||
The accounts of Jifu have been consolidated with the accounts of the Company because Jifu is a variable interest entity with respect to CC Investment, which is a wholly-owned subsidiary of the Company. CC Investment entered into five agreements dated May 7, 2013 with Jifu Shareholder and with Jifu pursuant to which CC Investment provides Jifu with exclusive technology consulting and management services. In summary, the five agreements contain the following terms: | Jifu | |||||||||||||||||
Entrusted Management Agreement. Effective on May 7, 2013, CC Investment entered into an Entrusted Management Agreement with Jifu and the Jifu Shareholders, pursuant to which CC Investment agreed to provide, and Jifu agreed to accept, exclusive management services provided by CC Investment. Such management services include but are not limited to financial management, business management, marketing management, human resource management and internal control of Jifu. Jifu will pay a service fee to CC Investment on a quarterly basis, which fee will be a percentage of Jifu's total operational income. The Entrusted Management Agreement will remain in effect until the acquisition of all the assets or equity of Jifu by CC Investment. | The accounts of Jifu have been consolidated with the accounts of the Company because Jifu is a variable interest entity with respect to CC Investment, which is a wholly-owned subsidiary of the Company. CC Investment entered into five agreements dated May 7, 2013 with Jifu Shareholder and with Jifu pursuant to which CC Investment provides Jifu with exclusive technology consulting and management services. In summary, the five agreements contain the following terms: | |||||||||||||||||
Technical Services Agreement. Effective on May 7, 2013, CC Investment entered into a Technical Services Agreement with Jifu and the Jifu Shareholders, pursuant to which CC Investment agreed to provide, and Jifu agreed to accept, exclusive technical services provided by CC Investment. Such technical services include but are not limited to software services, computer systems services, data analysis, training and other technical services. Jifu will pay a service fee to CC Investment on a quarterly basis, which fee shall be a percentage of Jifu's total operational income. The Technical Service Agreement will remain in effect until the acquisition of all the assets or equity of Jifu by CC Investment. | Entrusted Management Agreement. Effective on May 7, 2013, CC Investment entered into an Entrusted Management Agreement with Jifu and the Jifu Shareholders, pursuant to which CC Investment agreed to provide, and Jifu agreed to accept, exclusive management services provided by CC Investment. Such management services include but are not limited to financial management, business management, marketing management, human resource management and internal control of Jifu. Jifu will pay a service fee to CC Investment on a quarterly basis, which fee will be a percentage of Jifu's total operational income. The Entrusted Management Agreement will remain in effect until the acquisition of all the assets or equity of Jifu by CC Investment. | |||||||||||||||||
Exclusive Purchase Option Agreement. Effective on May 7, 2013, CC Investment entered into an Exclusive Purchase Option Agreement with Jifu and the Jifu Shareholders, pursuant to which the Jifu Shareholders granted CC Investment an irrevocable and exclusive purchase option to acquire all of Jifu's equity and/or assets at a nominal consideration. CC Investment may exercise the purchase option at any time. Until CC Investment has exercised its purchase option, Jifu is required to conduct its business in accordance with certain covenants as further described in the Exclusive Purchase Option Agreement. | Technical Services Agreement. Effective on May 7, 2013, CC Investment entered into a Technical Services Agreement with Jifu and the Jifu Shareholders, pursuant to which CC Investment agreed to provide, and Jifu agreed to accept, exclusive technical services provided by CC Investment. Such technical services include but are not limited to software services, computer systems services, data analysis, training and other technical services. Jifu will pay a service fee to CC Investment on a quarterly basis, which fee shall be a percentage of Jifu's total operational income. The Technical Service Agreement will remain in effect until the acquisition of all the assets or equity of Jifu by CC Investment. | |||||||||||||||||
Loan Agreement | Exclusive Purchase Option Agreement. Effective on May 7, 2013, CC Investment entered into an Exclusive Purchase Option Agreement with Jifu and the Jifu Shareholders, pursuant to which the Jifu Shareholders granted CC Investment an irrevocable and exclusive purchase option to acquire all of Jifu's equity and/or assets at a nominal consideration. CC Investment may exercise the purchase option at any time. Until CC Investment has exercised its purchase option, Jifu is required to conduct its business in accordance with certain covenants as further described in the Exclusive Purchase Option Agreement. | |||||||||||||||||
Effective on May 7, 2013, CC Investment entered into a Loan Agreement with the Jifu Shareholders, pursuant to which CC Investment agreed to lend RMB 3,000,000 to the Jifu Shareholders, to be used solely for the operations of Jifu. The loan is interest free, unless the deemed value of the consideration for the equity purchase of Jifu or asset purchase of Jifu under the Exclusive Purchase Option Agreement is higher than the principal amount of the loan, in which case the excess will be deemed to be interest on the loan. | ||||||||||||||||||
Equity Pledge Agreement | Loan Agreement | |||||||||||||||||
Effective on May 7, 2013, CC Investment entered into an Equity Pledge Agreement with Jifu and the Jifu Shareholders, pursuant to which the Jifu Shareholders pledged all of their equity interests in Jifu, including the proceeds thereof, to guarantee all of CC Investment's rights and benefits under the Entrusted Management Agreement, the Technical Service Agreement, the Exclusive Purchase Option Agreement and the Loan Agreement. Prior to termination of the Equity Pledge Agreement, the pledged equity interests cannot be transferred without CC Investment's prior consent. The Jifu Shareholders covenant to CC Investment that among other things, they will only appoint/elect candidates for the board of directors of Jifu and supervisor office of Jifu that were nominated by CC Investment. | ||||||||||||||||||
Effective on May 7, 2013, CC Investment entered into a Loan Agreement with the Jifu Shareholders, pursuant to which CC Investment agreed to lend RMB 3,000,000 to the Jifu Shareholders, to be used solely for the operations of Jifu. The loan is interest free, unless the deemed value of the consideration for the equity purchase of Jifu or asset purchase of Jifu under the Exclusive Purchase Option Agreement is higher than the principal amount of the loan, in which case the excess will be deemed to be interest on the loan. | ||||||||||||||||||
In sum, the agreements transfer to CC Investment all of the benefits and all of the risk arising from the operations of Jifu, as well as complete managerial authority over the operations of Jifu. Through these contractual arrangements, the Company has the ability to substantially influence Jifu's daily operations and financial affairs, appoint its directors and senior executives, and approve all matters requiring board and/or shareholder approval. These contractual arrangements enable the Company to control Jifu and operate our business in the PRC through CC Investment. By reason of the relationship described in these agreements, Jifu is a variable interest entity with respect to CC Investment and CC Investment is considered the primary beneficiary of Jifu because the following characteristics identified in ASC 810-10-15-14 are present: | ||||||||||||||||||
Equity Pledge Agreement | ||||||||||||||||||
The holder of the equity investment in Jifu lacks the direct or indirect ability to make decisions about the entity's activities that have a significant effect on the success of Jifu, having assigned their voting rights and all managerial authority to CC Investment. (ASC 810-10-15-14(b)(1)). | ||||||||||||||||||
Effective on May 7, 2013, CC Investment entered into an Equity Pledge Agreement with Jifu and the Jifu Shareholders, pursuant to which the Jifu Shareholders pledged all of their equity interests in Jifu, including the proceeds thereof, to guarantee all of CC Investment's rights and benefits under the Entrusted Management Agreement, the Technical Service Agreement, the Exclusive Purchase Option Agreement and the Loan Agreement. Prior to termination of the Equity Pledge Agreement, the pledged equity interests cannot be transferred without CC Investment's prior consent. The Jifu Shareholders covenant to CC Investment that among other things, they will only appoint/elect candidates for the board of directors of Jifu and supervisor office of Jifu that were nominated by CC Investment. | ||||||||||||||||||
The holder of the equity investment in Jifu lacks the obligation to absorb the expected losses of Jifu, having assigned to CC Investment all revenue and responsibility for all payables. (ASC 810-10-15-14(b)(2). | ||||||||||||||||||
In sum, the agreements transfer to CC Investment all of the benefits and all of the risk arising from the operations of Jifu, as well as complete managerial authority over the operations of Jifu. Through these contractual arrangements, the Company has the ability to substantially influence Jifu's daily operations and financial affairs, appoint its directors and senior executives, and approve all matters requiring board and/or shareholder approval. These contractual arrangements enable the Company to control Jifu and operate our business in the PRC through CC Investment. By reason of the relationship described in these agreements, Jifu is a variable interest entity with respect to CC Investment and CC Investment is considered the primary beneficiary of Jifu because the following characteristics identified in ASC 810-10-15-14 are present: | ||||||||||||||||||
The holder of the equity investment in Jifu lacks the right to receive the expected residual returns of Jifu, having granted to CC Investment all revenue as well as an option to purchase the equity interests at a fixed price. (ASC 810-10-15-14(b)(3)). | ||||||||||||||||||
The holder of the equity investment in Jifu lacks the direct or indirect ability to make decisions about the entity's activities that have a significant effect on the success of Jifu, having assigned their voting rights and all managerial authority to CC Investment. (ASC 810-10-15-14(b)(1)). | ||||||||||||||||||
Accordingly, the Company's condensed consolidated financial statements reflect the results of operations, assets and liabilities of Jifu. The carrying amount and classification of Jifu's assets and liabilities included in the Condensed Consolidated Balance Sheets are as follows: | ||||||||||||||||||
The holder of the equity investment in Jifu lacks the obligation to absorb the expected losses of Jifu, having assigned to CC Investment all revenue and responsibility for all payables. (ASC 810-10-15-14(b)(2). | ||||||||||||||||||
March 31, | December 31, | |||||||||||||||||
2014 | 2013 | The holder of the equity investment in Jifu lacks the right to receive the expected residual returns of Jifu, having granted to CC Investment all revenue as well as an option to purchase the equity interests at a fixed price. (ASC 810-10-15-14(b)(3)). | ||||||||||||||||
Total current assets | $ | 6,151,398 | $ | 5,138,384 | Accordingly, the Company's condensed consolidated financial statements reflect the results of operations, assets and liabilities of Jifu. The carrying amount and classification of Jifu's assets and liabilities included in the Condensed Consolidated Balance Sheets are as follows: | |||||||||||||
Total assets | 6,172,165 | 5,161,150 | ||||||||||||||||
Total current liabilities | 4,141,857 | 3,405,746 | ||||||||||||||||
Total liabilities | 4,141,857 | 3,405,746 | December 31, | December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||||||
Total current assets | $ | 5,138,384 | $ | - | ||||||||||||||
Total assets | 5,161,150 | - | ||||||||||||||||
Total current liabilities | 3,405,746 | - | ||||||||||||||||
Total liabilities | 3,405,746 | - | ||||||||||||||||
Revenue recognition | ' | ' | ||||||||||||||||
Revenue recognition | Revenue recognition | |||||||||||||||||
Our source of revenues is from internet accelerator software, which includes new software license revenues and software plus hardware and maintenance arrangements, and the source of revenue of Jifu is from developing and distributing optical transmitters and receivers, electronic surveillance equipment, and other communications equipment; and trading of electronic products, network products, and communications equipment. We also engage in software research and development, GPS system development and website development projects along with maintenance arrangements. | Our source of revenues is from internet accelerator software, which includes new software license revenues and software plus hardware and maintenance arrangements, and the source of revenue of Jifu is from developing and distributing optical transmitters and receivers, electronic surveillance equipment, and other communications equipment; and trading of electronic products, network products, and communications equipment. We also engage in software research and development. During the year ended December 31, 2013, we also have revenues derived from GPS system development and website development projects along with maintenance arrangements. | |||||||||||||||||
We evaluate revenue recognition based on the criteria set forth in FASB ASC 985-605, Software: Revenue Recognition and Staff Accounting Bulletin ("SAB") No. 101, Revenue Recognition in Financial Statements, as revised by SAB No. 104, Revenue Recognition. | We evaluate revenue recognition based on the criteria set forth in FASB ASC 985-605, Software: Revenue Recognition and Staff Accounting Bulletin ("SAB") No. 101, Revenue Recognition in Financial Statements, as revised by SAB No. 104, Revenue Recognition. | |||||||||||||||||
Revenue Recognition for Software Products (Software Elements) | ||||||||||||||||||
Revenue Recognition for Software Products (Software Elements) | ||||||||||||||||||
New software license revenues represent fees earned from granting customers licenses to download our software products that aim at improving the internet connection speed of the mobile phone, computers or servers. The basis for software license revenue recognition is substantially governed by the accounting guidance contained in ASC 985-605, Software-Revenue Recognition. For software license that do not require significant modification or customization of the underlying software, we recognize new software license revenues when: (1) we enter into a legally binding arrangement with a customer for the license of software; (2) we deliver the products; (3) the sale price is fixed or determinable and free of contingencies or significant uncertainties; and (4) collection is probable. Revenues that are not recognized at the time of sale because the foregoing conditions are not met are recognized when those conditions are subsequently met. | ||||||||||||||||||
New software license revenues represent fees earned from granting customers licenses to download our software products that aim at improving the internet connection speed of the mobile phone, computers or servers. The basis for software license revenue recognition is substantially governed by the accounting guidance contained in ASC 985-605, Software-Revenue Recognition. For software license that do not require significant modification or customization of the underlying software, we recognize new software license revenues when: (1) we enter into a legally binding arrangement with a customer for the license of software; (2) we deliver the products; (3) the sale price is fixed or determinable and free of contingencies or significant uncertainties; and (4) collection is probable. Revenues that are not recognized at the time of sale because the foregoing conditions are not met are recognized when those conditions are subsequently met. | ||||||||||||||||||
Our software license arrangements do not include acceptance provisions, software license updates or product support contracts. | ||||||||||||||||||
Our software license arrangements do not include acceptance provisions, software license updates or product support contracts. | ||||||||||||||||||
Revenue Recognition for Multiple-Element Arrangements - Software Products and Software Related Services(Software Arrangements) | ||||||||||||||||||
Revenue Recognition for Multiple-Element Arrangements - Software Products and Software Related Services(Software Arrangements) | ||||||||||||||||||
We enter into arrangements with customers that purchase software related products that include one to three year product support service and a short training session (referred to as software related multiple-element arrangements). Such software related multiple-element arrangements include the sale of our software products, and product support contracts whereby software license delivery is followed by the subsequent delivery of the other elements. Our software license arrangements include acceptance provisions. We recognize revenue upon the receipt of written customer acceptance. The vast majority of our software license arrangements include software license updates and product support contracts. Software license updates provide customers with rights to unspecified software product upgrades during the term of the support period. Product support includes telephone access to technical support personnel or on-site support. For those software related multiple-element arrangements, we recognized revenue pursuant to ASC 985-605. Since we are unable to determine the fair value of the selling price for the undelivered elements in a multiple-element arrangement, which is the product support service and training, the entire arrangement consideration is deferred and is recognized ratably over the term of the arrangement, typically one year to three years. | ||||||||||||||||||
We enter into arrangements with customers that purchase software related products that include one to three year product support service and a short training session (referred to as software related multiple-element arrangements). Such software related multiple-element arrangements include the sale of our software products, and product support contracts whereby software license delivery is followed by the subsequent delivery of the other elements. Our software license arrangements include acceptance provisions. We recognize revenue upon the receipt of written customer acceptance. The vast majority of our software license arrangements include software license updates and product support contracts. Software license updates provide customers with rights to unspecified software product upgrades during the term of the support period. Product support includes telephone access to technical support personnel or on-site support. For those software related multiple-element arrangements, we recognized revenue pursuant to ASC 985-605. Since we are unable to determine the fair value of the selling price for the undelivered elements in a multiple-element arrangement, which is the product support service and training, the entire arrangement consideration is deferred and is recognized ratably over the term of the arrangement, typically one year to three years. | ||||||||||||||||||
Revenue Recognition for Multiple-Element Arrangements - Arrangements with Software and Hardware Elements | ||||||||||||||||||
Revenue Recognition for Multiple-Element Arrangements - Arrangements with Software and Hardware Elements | ||||||||||||||||||
We also enter into multiple-element arrangements that may include a combination of our software installed in the hardware products we purchased from third parties and service offerings including purchased hardware , new software licenses, installation of the software in the hardware and one to three years product support. We adopted Accounting Standards Update ("ASU") 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements . This guidance modifies the fair value requirements of FASB ASC subtopic 605-25, Revenue Recognition-Multiple Element Arrangements , by allowing the use of the "best estimate of selling price" in addition to vendor-specific objective evidence and third-party evidence for determining the selling price of a deliverable for non-software arrangements. This guidance establishes a selling price hierarchy for determining the selling price of a deliverable, which is based on: (a) vendor-specific objective evidence, (b) third-party evidence, or (c) estimated selling price. In addition, the residual method of allocating arrangement consideration is no longer permitted. In such arrangements, we first allocate the total arrangement consideration based on the relative selling prices of the software group of elements as a whole and to the hardware elements. We recognize the hardware element considerations upon delivery of the hardware. The consideration allocated to the software group which includes the software element and the product support is recognized in according to the software arrangements policy as described above. | ||||||||||||||||||
We also enter into multiple-element arrangements that may include a combination of our software installed in the hardware products we purchased from third parties and service offerings including purchased hardware , new software licenses, installation of the software in the hardware and one to three years product support. We adopted Accounting Standards Update ("ASU") 2009-13, | ||||||||||||||||||
Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements . This guidance modifies the fair value requirements of FASB ASC subtopic 605-25, Revenue Recognition-Multiple Element Arrangements , by allowing the use of the "best estimate of selling price" in addition to vendor-specific objective evidence and third-party evidence for determining the selling price of a deliverable for non-software arrangements. This guidance establishes a selling price hierarchy for determining the selling price of a deliverable, which is based on: (a) vendor-specific objective evidence, (b) third-party evidence, or (c) estimated selling price. In addition, the residual method of allocating arrangement consideration is no longer permitted. In such arrangements, we first allocate the total arrangement consideration based on the relative selling prices of the software group of elements as a whole and to the hardware elements. We recognize the hardware element considerations upon delivery of the hardware. The consideration allocated to the software group which includes the software element and the product support is recognized in according to the software arrangements policy as described above. | ||||||||||||||||||
Cost of revenues | ' | ' | ||||||||||||||||
Cost of Revenue | Cost of Revenue | |||||||||||||||||
Cost of revenue primarily consists of direct costs of products, direct labor of technical staff, depreciation of computer equipment, and overhead associated with the technical department. | Cost of revenue primarily consists of direct costs of products, direct labor of technical staff, depreciation of computer equipment, and overhead associated with the technical department. | |||||||||||||||||
Economic and political risks | ' | ' | ||||||||||||||||
Economic and political risks | Economic and political risks | |||||||||||||||||
The Company's operations are mainly conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations in the PRC may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC. | The Company's operations are mainly conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations in the PRC may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC. | |||||||||||||||||
The Company's major operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in government administration, governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. | The Company's major operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in government administration, governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. | |||||||||||||||||
Credit risk | ' | ' | ||||||||||||||||
Credit risk | Credit risk | |||||||||||||||||
The Company may be exposed to credit risk from its cash and fixed deposits at bank. No allowance has been made for estimated irrecoverable amounts determined by reference to past default experience and the current economic environment. | The Company may be exposed to credit risk from its cash and fixed deposits at bank. No allowance has been made for estimated irrecoverable amounts determined by reference to past default experience and the current economic environment. | |||||||||||||||||
Property and equipment | ' | ' | ||||||||||||||||
Property and equipment | Property and equipment | |||||||||||||||||
Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows: | Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows: | |||||||||||||||||
Equipment | 5 years | Equipment | 5 years | |||||||||||||||
Office equipment | 5 years | Office equipment | 5 years | |||||||||||||||
Leasehold improvements | Over the lease terms | Leasehold improvements | Over the lease terms | |||||||||||||||
Software | 5 years | Software | 5 years | |||||||||||||||
The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. | The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. | |||||||||||||||||
Accounting for the impairment of long-lived assets | ' | ' | ||||||||||||||||
Accounting for the impairment of long-lived assets | Accounting for the impairment of long-lived assets | |||||||||||||||||
Impairment of Long-Lived Assets is evaluated for impairment at a minimum on an annual basis whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC 360-10 "Impairments of Long-Lived Assets". An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair market value. The recoverability of long-lived assets is assessed by determining whether the unamortized balances can be recovered through undiscounted future net cash flows of the related assets. The amount of impairment, if any, is measured based on projected discounted future net cash flows using a discount rate reflecting the Company's average cost of capital. | Impairment of Long-Lived Assets is evaluated for impairment at a minimum on an annual basis whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC 360-10 "Impairments of Long-Lived Assets". An asset is considered impaired if its carrying amount exceeds the future net cash flow the asset is expected to generate. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair market value. The recoverability of long-lived assets is assessed by determining whether the unamortized balances can be recovered through undiscounted future net cash flows of the related assets. The amount of impairment, if any, is measured based on projected discounted future net cash flows using a discount rate reflecting the Company's average cost of capital. | |||||||||||||||||
Goodwill, Customer-relationship, and Trade-name Intangibles | ' | ' | ||||||||||||||||
Goodwill, Customer-relationship, and Trade-name Intangibles | Goodwill, Customer-relationship, and Trade-name Intangibles | |||||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. In accordance with Accounting Standards Codification ASC 350 "Intangibles - Goodwill and Other", goodwill is no longer subject to amortization. Rather, goodwill is subject to at least an annual assessment for impairment, applying a fair-value based test. | Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. In accordance with Accounting Standards Codification ASC 350 "Intangibles - Goodwill and Other", goodwill is no longer subject to amortization. Rather, goodwill is subject to at least an annual assessment for impairment, applying a fair-value based test. | |||||||||||||||||
Customer-relationship and trade-name acquired as part of the Merger account for the majority of our intangible assets recognized in the Consolidated Balance Sheet. These assets are expected to generate cash flows indefinitely, do not have estimable or finite useful lives and, therefore, are accounted for as indefinite-lived assets not subject to amortization. We consider the income approach when testing intangible assets with indefinite lives for impairment on an annual basis. We utilize the income approach, specifically the relief from royalty method, for analyzing our indefinite-lived assets. This method is based on the assumption that, in lieu of ownership, a firm would be willing to pay a royalty in order to exploit the related benefits of this asset class. | Customer-relationship and trade-name acquired as part of the Merger account for the majority of our intangible assets recognized in the Consolidated Balance Sheet. These assets are expected to generate cash flows indefinitely, do not have estimable or finite useful lives and, therefore, are accounted for as indefinite-lived assets not subject to amortization. We consider the income approach when testing intangible assets with indefinite lives for impairment on an annual basis. We utilize the income approach, specifically the relief from royalty method, for analyzing our indefinite-lived assets. This method is based on the assumption that, in lieu of ownership, a firm would be willing to pay a royalty in order to exploit the related benefits of this asset class. | |||||||||||||||||
Inventories | ' | ' | ||||||||||||||||
Inventories | Inventories | |||||||||||||||||
Inventories are stated at the lower of cost or market value. Substantially all inventory costs are determined using the weighted average basis. The management regularly evaluates the composition of its inventory to identify slow-moving and obsolete inventories to determine if additional write-downs are required. | Inventories are stated at the lower of cost or market value. Substantially all inventory costs are determined using the weighted average basis. The management regularly evaluates the composition of its inventory to identify slow-moving and obsolete inventories to determine if additional write-downs are required. | |||||||||||||||||
Accounts receivable | ' | ' | ||||||||||||||||
Accounts receivable | Accounts receivable | |||||||||||||||||
Accounts receivable consists of amounts due from customers. An allowance for doubtful accounts is established and determined based on management's assessment of known requirements, aging of receivables, payment history, the customer's current credit worthiness and the economic environment. As of March 31, 2014 and 2013, no allowance for doubtful accounts was deemed necessary based on management's assessment. | Accounts receivable consists of amounts due from customers. An allowance for doubtful accounts is established and determined based on management's assessment of known requirements, aging of receivables, payment history, the customer's current credit worthiness and the economic environment. As of December 31, 2013 and 2012, no allowance for doubtful accounts was deemed necessary based on management's assessment. | |||||||||||||||||
Fair Value of Financial Instruments | ' | ' | ||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||||
FASB accounting standards require disclosing fair value to the extent practicable for financial instruments that are recognized or unrecognized in the balance sheet. The fair value of the financial instruments disclosed herein is not necessarily representative of the amount that could be realized or settled, nor does the fair value amount consider the tax consequences of realization or settlement. | FASB accounting standards require disclosing fair value to the extent practicable for financial instruments that are recognized or unrecognized in the balance sheet. The fair value of the financial instruments disclosed herein is not necessarily representative of the amount that could be realized or settled, nor does the fair value amount consider the tax consequences of realization or settlement. | |||||||||||||||||
For certain financial instruments, including cash, accounts payable, accruals and other payables, the carrying amounts approximate fair value because of the near term maturities of such obligations. | For certain financial instruments, including cash, accounts payable, accruals and other payables, the carrying amounts approximate fair value because of the near term maturities of such obligations. | |||||||||||||||||
Patents | ' | ' | ||||||||||||||||
Patents | Patents | |||||||||||||||||
The Company has three patents as listed in the table below relating to its internet accelerator software products. Fees related to registering these patents were insignificant and have been expensed as incurred. | The Company has three patents as listed in the table below relating to its internet accelerator software products. Fees related to registering these patents were insignificant and have been expensed as incurred. | |||||||||||||||||
Patent | Register Number | Issued By | Patent | Register Number | Issued By | |||||||||||||
Mach5 Internet Acceleration Software V.6.0 | 2007SR09253 | National Copyright Administration of PRC | Mach5 Internet Acceleration Software V.6.0 | 2007SR09253 | National Copyright Administration of PRC | |||||||||||||
Mach5 Enterprise Acceleration Software V.3.3 | 2009SR058767 | National Copyright Administration of PRC | Mach5 Enterprise Acceleration Software V.3.3 | 2009SR058767 | National Copyright Administration of PRC | |||||||||||||
Mach5 Web Browser Software | 2010SR001089 | National Copyright Administration of PRC | Mach5 Web Browser Software | 2010SR001089 | National Copyright Administration of PRC | |||||||||||||
Research and development and Software Development Costs | ' | ' | ||||||||||||||||
Research and development and Software Development Costs | Research and development and Software Development Costs | |||||||||||||||||
All research and development costs are expensed as incurred. Software development costs eligible for capitalization under ASC 985-20, Software-Costs of Software to be Sold, Leased or Marketed, were not material to our consolidated financial statements for the three months ended March 31, 2014 and 2013. Research and development expenses amounted to $146,344 and $55,997 for the three months ended March 31, 2014 and 2013, respectively, and were included in general and administrative expense. | All research and development costs are expensed as incurred. Software development costs eligible for capitalization under ASC 985-20, Software-Costs of Software to be Sold, Leased or Marketed, were not material to our consolidated financial statements for the years ended December 31, 2013 and 2012. Other research and development expenses amounted to $1,611,826 and $246,667 for years ended December 31, 2013 and 2012, respectively, and were included in general and administrative expense. | |||||||||||||||||
Comprehensive income | ' | ' | ||||||||||||||||
Comprehensive income | Comprehensive income | |||||||||||||||||
Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. For the Company, comprehensive income for the periods presented includes net income and foreign currency translation adjustments. | Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. For the Company, comprehensive income for the periods presented includes net income and foreign currency translation adjustments. | |||||||||||||||||
Income taxes | ' | ' | ||||||||||||||||
Income taxes | Income taxes | |||||||||||||||||
Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred income tax liabilities or assets are recorded to reflect the tax consequences in future differences between the tax basis of assets and liabilities and the financial reporting amounts at each year end. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. | Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred income tax liabilities or assets are recorded to reflect the tax consequences in future differences between the tax basis of assets and liabilities and the financial reporting amounts at each year end. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. | |||||||||||||||||
Foreign currency translation | ' | ' | ||||||||||||||||
Foreign currency translation | Foreign currency translation | |||||||||||||||||
Assets and liabilities of the Company's subsidiaries with a functional currency other than US$ are translated into US$ using period end exchange rates. Income and expense items are translated at the average exchange rates in effect during the period. Foreign currency translation differences are included as a component of Accumulated Other Comprehensive Income in Shareholders' Equity. | Assets and liabilities of the Company's subsidiaries with a functional currency other than US$ are translated into US$ using period end exchange rates. Income and expense items are translated at the average exchange rates in effect during the period. Foreign currency translation differences are included as a component of Accumulated Other Comprehensive Income in Shareholders' Equity. | |||||||||||||||||
The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the financial statements were as follows: | The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the financial statements were as follows: | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||
Balance sheet | RMB 6.1619 to US $1.00 | Balance sheet | RMB 6.1104 to US $1.00 | |||||||||||||||
Statement of income and other comprehensive income | RMB 6.1156 to US $1.00 | Statement of operations and other comprehensive loss | RMB 6.1905 to US $1.00 | |||||||||||||||
31-Mar-13 | 31-Dec-12 | |||||||||||||||||
Balance sheet | RMB 6.2666 to US $1.00 | Balance sheet | RMB 6.3011 to US $1.00 | |||||||||||||||
Statement of income and other comprehensive income | RMB 6.2769 to US $1.00 | Statement of operations and other comprehensive loss | RMB 6.3034 to US $1.00 | |||||||||||||||
31-Dec-13 | The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. | |||||||||||||||||
Balance sheet | RMB 6.1104 to US $1.00 | |||||||||||||||||
Statement of income and other comprehensive income | RMB 6.1905 to US $1.00 | |||||||||||||||||
The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. | ||||||||||||||||||
Post-retirement and post-employment benefits | ' | ' | ||||||||||||||||
Post-retirement and post-employment benefits | Post-retirement and post-employment benefits | |||||||||||||||||
The Company contributes to a state pension plan in respect of its PRC employees. Other than the state pension plan, the Company does not provide any other post-retirement or post-employment benefits. | The Company contributes to a state pension plan in respect of its PRC employees. Other than the state pension plan, the Company does not provide any other post-retirement or post-employment benefits. | |||||||||||||||||
Recently Issued Accounting Pronouncements | ' | ' | ||||||||||||||||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements | |||||||||||||||||
In January 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies that ordinary trade receivables and receivables are not in the scope of ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Specifically, ASU 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification™ (Codification) or subject to a master netting arrangement or similar agreement. The FASB undertook this clarification project in response to concerns expressed by U.S. stakeholders about the standard's broad definition of financial instruments. After the standard was finalized, companies realized that many contracts have standard commercial provisions that would equate to a master netting arrangement, significantly increasing the cost of compliance at minimal value to financial statement users. An entity is required to apply the amendments in ASU 2013-01 for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The effective date is the same as the effective date of ASU 2011-11. | In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-04, Technical Corrections and Improvements. This ASU make technical corrections, clarifications, and limited-scope improvements to various Topics throughout the Codification. The amendments in this ASU that will not have transition guidance will be effective upon issuance for both public entities and nonpublic entities. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2013. | |||||||||||||||||
In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU improves the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in this ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. | In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-05, Statement of Cash Flows (Topic 230). This ASU addresses how cash receipts arising from the sale of certain donated financial assets, such as securities, should be classified in the statement of cash flows of not-for-profit entities (NFPs). Some NFPs classify those cash receipts as investing cash inflows, while other entities classify them as either operating cash inflows or financing cash inflows, consistent with their treatment of inflows arising from cash contributions. The objective of this Update is for an NFP to classify cash receipts from the sale of donated financial assets consistently with cash donations received in the statement of cash flows if those cash receipts were from the sale of donated financial assets that upon receipt were directed without the NFP imposing any limitations for sale and were converted nearly immediately into cash. The amendments in the ASU are effective prospectively for fiscal years, and interim fiscal periods within those years, beginning after June 15, 2013. Retrospective application to all periods presented upon the date of adoption is permitted. Early adoption from the beginning of the fiscal year of adoption is permitted. | |||||||||||||||||
The new amendments will require an organization to: | In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-06, Business Combinations (Topic 805): Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution. This ASU addresses the diversity in practice about how to interpret the terms on the same basis and contractual limitations when subsequently measuring an indemnification asset recognized in a government-assisted (Federal Deposit Insurance Corporation or National Credit Union Administration) acquisition of a financial institution that includes a loss-sharing agreement (indemnification agreement). For public and nonpublic entities, the amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. Early adoption is permitted. The amendments should be applied prospectively to any new indemnification assets acquired after the date of adoption and to indemnification assets existing as of the date of adoption arising from a government-assisted acquisition of a financial institution. | |||||||||||||||||
- Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. | In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-07, Entertainment-Films (Topic 926): Accounting for Fair Value Information That Arises after the Measurement Date and Its Inclusion in the Impairment Analysis of Unamortized Film Costs. This ASU eliminates the rebuttable presumption that the conditions leading to the write-off of unamortized film costs after the balance sheet date existed as of the balance sheet date. The amendments also eliminate the requirement that an entity incorporate into fair value measurements used in the impairment tests the effects of any changes in estimates resulting from the consideration of subsequent evidence if the information would not have been considered by market participants at the measurement date. or SEC filers, the amendments are effective for impairment assessments performed on or after December 15, 2012. For all other entities, the amendments are effective for impairment assessments performed on or after December 15, 2013. The amendments resulting from this ASU should be applied prospectively. Earlier application is permitted, including for impairment assessments performed as of a date before October 24, 2012, if, for SEC filers, the entity's financial statements for the most recent annual or interim period have not yet been issued or, for all other entities, have not yet been made available for issuance. | |||||||||||||||||
- Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | In January 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies that ordinary trade receivables and receivables are not in the scope of ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Specifically, ASU 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification™ (Codification) or subject to a master netting arrangement or similar agreement. The FASB undertook this clarification project in response to concerns expressed by U.S. stakeholders about the standard's broad definition of financial instruments. After the standard was finalized, companies realized that many contracts have standard commercial provisions that would equate to a master netting arrangement, significantly increasing the cost of compliance at minimal value to financial statement users. An entity is required to apply the amendments in ASU 2013-01 for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The effective date is the same as the effective date of ASU 2011-11. | |||||||||||||||||
In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU improves the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in this ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. | ||||||||||||||||||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). A private company is required to meet the reporting requirements of the amended paragraphs about the roll forward of accumulated other comprehensive income for both interim and annual reporting periods. However, private companies are only required to provide the information about the effect of reclassifications on line items of net income for annual reporting periods, not for interim reporting periods. The amendments are effective for reporting periods beginning after December 15, 2012, for public companies and are effective for reporting periods beginning after December 15, 2013, for private companies. Early adoption is permitted. | ||||||||||||||||||
The new amendments will require an organization to: | ||||||||||||||||||
In February 2013, FASB issued Accounting Standards Update (ASU) No. 2013-03, Financial Instruments (Topic 825). This ASU clarifies the scope and applicability of a disclosure exemption that resulted from the issuance of Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendment clarifies that the requirement to disclose "the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (Level 1, 2, or 3)" does not apply to nonpublic entities for items that are not measured at fair value in the statement of financial position, but for which fair value is disclosed. This ASU is the final version of Proposed Accounting Standards Update 2013-200-Financial Instruments (Topic 825) which has been deleted. The amendments are effective upon issuance. | ||||||||||||||||||
· | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. | |||||||||||||||||
In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. This ASU provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2014, and interim periods and annual periods thereafter. The amendments in this ASU should be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU's scope that exist at the beginning of an entity's fiscal year of adoption. An entity may elect to use hindsight for the comparative periods (if it changed its accounting as a result of adopting the amendments in this ASU) and should disclose that fact. Early adoption is permitted. | ||||||||||||||||||
· | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | |||||||||||||||||
In March 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-05, Foreign Currency Matters (Topic 830). This ASU resolve the diversity in practice about whether Subtopic 810-10, Consolidation-Overall, or Subtopic 830-30, Foreign Currency Matters-Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights)within a foreign entity. In addition, the amendments in this Update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. This ASU is the final version of Proposed Accounting Standards Update EITF11Ar-Foreign Currency Matters (Topic 830), which has been deleted. The amendments in this Update are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. For nonpublic entities the amendments in this Update are effective prospectively for the first annual period beginning after December 15, 2014, and interim and annual periods thereafter. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity's fiscal year of adoption. | ||||||||||||||||||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). A private company is required to meet the reporting requirements of the amended paragraphs about the roll forward of accumulated other comprehensive income for both interim and annual reporting periods. However, private companies are only required to provide the information about the effect of reclassifications on line items of net income for annual reporting periods, not for interim reporting periods. The amendments are effective for reporting periods beginning after December 15, 2012, for public companies and are effective for reporting periods beginning after December 15, 2013, for private companies. Early adoption is permitted. | ||||||||||||||||||
In July 2013, The FASB has issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). | ||||||||||||||||||
In February 2013, FASB issued Accounting Standards Update (ASU) No. 2013-03, Financial Instruments (Topic 825). This ASU clarifies the scope and applicability of a disclosure exemption that resulted from the issuance of Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendment clarifies that the requirement to disclose "the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (Level 1, 2, or 3)" does not apply to nonpublic entities for items that are not measured at fair value in the statement of financial position, but for which fair value is disclosed. This ASU is the final version of Proposed Accounting Standards Update 2013-200-Financial Instruments (Topic 825) which has been deleted. The amendments are effective upon issuance. | ||||||||||||||||||
U.S. GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. | ||||||||||||||||||
In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. This ASU provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2014, and interim periods and annual periods thereafter. The amendments in this ASU should be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU's scope that exist at the beginning of an entity's fiscal year of adoption. An entity may elect to use hindsight for the comparative periods (if it changed its accounting as a result of adopting the amendments in this ASU) and should disclose that fact. Early adoption is permitted. | ||||||||||||||||||
This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. | ||||||||||||||||||
In March 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-05, Foreign Currency Matters (Topic 830). This ASU resolve the diversity in practice about whether Subtopic 810-10, Consolidation-Overall, or Subtopic 830-30, Foreign Currency Matters-Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights)within a foreign entity. In addition, the amendments in this Update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. This ASU is the final version of Proposed Accounting Standards Update EITF11Ar-Foreign Currency Matters (Topic 830), which has been deleted. The amendments in this Update are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. For nonpublic entities the amendments in this Update are effective prospectively for the first annual period beginning after December 15, 2014, and interim and annual periods thereafter. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity's fiscal year of adoption. | ||||||||||||||||||
In March 2014, FASB has issued Accounting Standards Update (ASU) No. 2014-07, Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements. The guidance addresses the consolidation of lessors in certain common control leasing arrangements and is based on a consensus reached by the Private Company Council (PCC). Under current U.S. GAAP, a company is required to consolidate an entity in which it has a controlling financial interest. The assessment of controlling financial interest is performed under either: (a) a voting interest model; or (b) a variable interest entity model. In a variable interest entity model, the company has a controlling financial interest when it has: (a) the power to direct the activities that most significantly affect the economic performance of the entity; and (b) the obligation to absorb losses or the right to receive benefits of the entity that could be potentially significant to the entity. To determine which model applies, a company preparing financial statements must first determine whether it has a variable interest in the entity being evaluated for consolidation and whether that entity is a variable interest entity. If elected, the accounting alternative should be applied to all leasing arrangements meeting the above conditions. The alternative should be applied retrospectively to all periods presented, and is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early application is permitted for all financial statements that have not yet been made available for issuance. | ||||||||||||||||||
In July 2013, The FASB has issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). | ||||||||||||||||||
Management does not believe that any other recently issued but not yet effective accounting pronouncements, if adopted, would have an effect on the accompanying financial statements. | ||||||||||||||||||
U.S. GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. | ||||||||||||||||||
This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. | ||||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ' | ||||||||||||||||
Summary of the Useful Life of Property, Plant and Equipment | ' | ' | ||||||||||||||||
Equipment | 5 years | Equipment | 5 years | |||||||||||||||
Office equipment | 5 years | Office equipment | 5 years | |||||||||||||||
Leasehold improvements | Over the lease terms | Leasehold improvements | Over the lease terms | |||||||||||||||
Software | 5 years | Software | 5 years | |||||||||||||||
Schedule of Foreign Currency Exchange Rates | ' | ' | ||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||
Balance sheet | RMB 6.1619 to US $1.00 | Balance sheet | RMB 6.1104 to US $1.00 | |||||||||||||||
Statement of income and other comprehensive income | RMB 6.1156 to US $1.00 | Statement of operations and other comprehensive loss | RMB 6.1905 to US $1.00 | |||||||||||||||
31-Mar-13 | 31-Dec-12 | |||||||||||||||||
Balance sheet | RMB 6.2666 to US $1.00 | Balance sheet | RMB 6.3011 to US $1.00 | |||||||||||||||
Statement of income and other comprehensive income | RMB 6.2769 to US $1.00 | Statement of operations and other comprehensive loss | RMB 6.3034 to US $1.00 | |||||||||||||||
31-Dec-13 | ||||||||||||||||||
Balance sheet | RMB 6.1104 to US $1.00 | |||||||||||||||||
Statement of income and other comprehensive income | RMB 6.1905 to US $1.00 | |||||||||||||||||
CC Power [Member] | ' | ' | ||||||||||||||||
Variable Interest Entity [Line Items] | ' | ' | ||||||||||||||||
Schedule of Variable Interest Entity | ' | ' | ||||||||||||||||
March 31, | December 31, | 2013 | 2012 | |||||||||||||||
2014 | 2013 | |||||||||||||||||
Total current assets | $ | 86,173 | $ | 113,894 | ||||||||||||||
Total current assets | $ | 89,058 | $ | 86,173 | Total assets | 153,178 | 190,199 | |||||||||||
Total assets | 244,583 | 153,178 | Total current liabilities | 551,012 | 320,873 | |||||||||||||
Total current liabilities | 527,507 | 551,012 | Total liabilities | 551,012 | 341,003 | |||||||||||||
Total liabilities | 527,507 | 551,012 | ||||||||||||||||
Jifu [Member] | ' | ' | ||||||||||||||||
Variable Interest Entity [Line Items] | ' | ' | ||||||||||||||||
Schedule of Variable Interest Entity | ' | ' | ||||||||||||||||
March 31, | December 31, | December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||||
Total current assets | $ | 6,151,398 | $ | 5,138,384 | Total current assets | $ | 5,138,384 | $ | - | |||||||||
Total assets | 6,172,165 | 5,161,150 | Total assets | 5,161,150 | - | |||||||||||||
Total current liabilities | 4,141,857 | 3,405,746 | Total current liabilities | 3,405,746 | - | |||||||||||||
Total liabilities | 4,141,857 | 3,405,746 | Total liabilities | 3,405,746 | - |
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Goodwill [Abstract] | ' | ' | ||||||||||||||||
Schedule of Goodwill | ' | ' | ||||||||||||||||
RMB | USD | RMB | USD | |||||||||||||||
Cost of acquisition | $ | 12,873,000 | $ | 2,100,000 | Cost of acquisition | $ | 12,873,000 | $ | 2,100,000 | |||||||||
Net assets of Jifu | 10,136,450 | 1,653,581 | Net assets of Jifu | 10,136,450 | 1,653,581 | |||||||||||||
Goodwill balance at March 31, 2014 | 2,736,550 | 446,419 | Goodwill balance at December 31, 2013 | 2,736,550 | 446,419 |
Property_and_Equipment_net_Tab
Property and Equipment, net (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Property and Equipment, net [Abstract] | ' | ' | ||||||||||||||||
Schedule of property and equipment, net | ' | ' | ||||||||||||||||
Property, plant and equipment, net consist of the following: | Property and equipment, net consist of the following: | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
March 31, | December 31, | 2013 | 2012 | |||||||||||||||
2014 | 2013 | |||||||||||||||||
Equipment | $ | 249,543 | $ | 132,017 | ||||||||||||||
Equipment | $ | 247,585 | $ | 249,543 | Office equipment | 118,018 | 13,617 | |||||||||||
Office equipment | 117,032 | 118,018 | Leasehold improvements | 8,674 | 8,411 | |||||||||||||
Leasehold improvements | 8,602 | 8,674 | Software | 1,954 | 1,895 | |||||||||||||
Software | 1,938 | 1,954 | 378,189 | 155,940 | ||||||||||||||
375,157 | 378,189 | Less: Accumulated depreciation | (285,796 | ) | (65,565 | ) | ||||||||||||
Less: Accumulated depreciation | (290,872 | ) | (285,796 | ) | Property and equipment, net | $ | 92,393 | $ | 90,375 | |||||||||
Property and equipment, net | $ | 84,285 | $ | 92,393 | ||||||||||||||
Intangible_Assets_net_Tables
Intangible Assets, net (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Intangible Assets, net [Abstract] | ' | ' | ||||||||||||||||
Schedule of Intangible Assets, net | ' | ' | ||||||||||||||||
Intangible assets, net consist of the following: | Intangible assets, net consist of the following: | |||||||||||||||||
March 31, | December 31, | December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||||
Customer relationship | $ | 793,547 | $ | 793,547 | Customer relationship | $ | 793,547 | $ | - | |||||||||
Trade name | 500,470 | 500,470 | Trade name | 500,470 | - | |||||||||||||
1,294,017 | 1,294,017 | 1,294,017 | - | |||||||||||||||
Less: Accumulated amortization | - | - | Less: Accumulated amortization | - | - | |||||||||||||
Intangible assets, net | $ | 1,294,017 | $ | 1,294,017 | Intangible assets, net | $ | 1,294,017 | $ | - | |||||||||
Deferred_Revenue_Tables
Deferred Revenue (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Deferred Revenue [Abstract] | ' | ' | ||||||||||||||||
Schedule of Deferred Revenue | ' | ' | ||||||||||||||||
March 31, | December 31, | December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||||
Deferred revenue: | Deferred revenue: | |||||||||||||||||
Current | $ | 19,062 | $ | 19,223 | Current | $ | 19,223 | $ | 78,811 | |||||||||
Non-current | - | - | Non-current | - | 20,130 | |||||||||||||
Total | $ | 19,062 | $ | 19,223 | Total | $ | 19,223 | $ | 98,941 | |||||||||
Summary of Deferred Revenue | ' | ' | ||||||||||||||||
For the three months ended March 31, | For the years ended December 31, | |||||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||||
Deferred revenue, balance at beginning of period | $ | 19,223 | $ | 98,941 | Deferred revenue, balance at beginning of year | $ | 98,941 | $ | 301,231 | |||||||||
Less: government grant earned during the three months | - | (14,289 | ) | Add: Payments received from customers during the year | - | 105,721 | ||||||||||||
Less: Revenue earned during the three months | - | (21,010 | ) | Add: Government grant received during the year | - | 95,222 | ||||||||||||
Exchange rate difference | (161 | ) | - | Less: government grant earned during the year | (15,931 | ) | (135,602 | ) | ||||||||||
Deferred revenue, balance at end of period | $ | 19,062 | $ | 63,642 | Less: Revenue earned during the year | (63,787 | ) | (276,631 | ) | |||||||||
Deferred revenue, balance at end of year | $ | 19,223 | $ | 98,941 |
Convertible_Promissory_Notes_T
Convertible Promissory Notes (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Promissory Notes [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Convertible Promissory Notes | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding balances for the four convertible promissory notes as of March 31, 2014 and December 31, 2013 are as follow: | Outstanding balances for the four convertible promissory notes as of December 31, 2013 and 2012 are as follow: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Lender | Date of Note | Maturity Date | Loan | Interest | Convertible | March 31, | December | Loan | Interest | Convertible | December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||
Amount | Rate (p.a.) | Number of | 2014 | 31, | Lender | Date of Note | Maturity Date | Amount | Rate (p.a.) | Number of stock | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
stock | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Vantage Associates SA | 15-Apr-11 | 15-Apr-16 | $ | 150,000 | 5 | % | 600,000 | $ | 150,000 | $ | 150,000 | |||||||||||||||||||||||||||||||||||||||||
Vantage Associates SA | 15-Apr-11 | 15-Apr-16 | $ | 150,000 | 5 | % | 600,000 | $ | 150,000 | $ | 150,000 | Empa Trading Ltd. | 5-Jun-11 | 5-Jun-16 | 100,000 | 5 | % | 400,000 | 100,000 | 100,000 | ||||||||||||||||||||||||||||||||
Empa Trading Ltd. | 5-Jun-11 | 5-Jun-16 | 100,000 | 5 | % | 400,000 | 100,000 | 100,000 | First Capital A.G. | 14-Jul-11 | 14-Jul-16 | 150,000 | 5 | % | 600,000 | 150,000 | 150,000 | |||||||||||||||||||||||||||||||||||
First Capital A.G. | 14-Jul-11 | 14-Jul-16 | 150,000 | 5 | % | 600,000 | 150,000 | 150,000 | First Capital A.G. | 9-Sep-11 | 9-Sep-16 | 200,000 | 5 | % | 800,000 | 200,000 | 200,000 | |||||||||||||||||||||||||||||||||||
First Capital A.G. | 9-Sep-11 | 9-Sep-16 | 200,000 | 5 | % | 800,000 | 200,000 | 200,000 | Vantage Associates SA | 9-Sep-11 | 9-Sep-16 | 200,000 | 5 | % | 800,000 | 200,000 | 200,000 | |||||||||||||||||||||||||||||||||||
Vantage Associates SA | 9-Sep-11 | 9-Sep-16 | 200,000 | 5 | % | 800,000 | 200,000 | 200,000 | Vantage Associates SA | 27-Oct-11 | 27-Oct-16 | 50,000 | 5 | % | 200,000 | 50,000 | 50,000 | |||||||||||||||||||||||||||||||||||
Vantage Associates SA | 27-Oct-11 | 27-Oct-16 | 50,000 | 5 | % | 200,000 | 50,000 | 50,000 | First Capital A.G. | 1-Dec-11 | 1-Dec-16 | 50,000 | 5 | % | 200,000 | 50,000 | 50,000 | |||||||||||||||||||||||||||||||||||
First Capital A.G. | 1-Dec-11 | 1-Dec-16 | 50,000 | 5 | % | 200,000 | 50,000 | 50,000 | First Capital A.G. | 23-Jan-12 | 23-Jan-17 | 50 000 | 5 | % | 200,000 | 50,000 | 50,000 | |||||||||||||||||||||||||||||||||||
First Capital A.G. | 23-Jan-12 | 23-Jan-17 | 50 000 | 5 | % | 200,000 | 50,000 | 50,000 | First Capital A.G. | 25-Apr-12 | April 25,2014 | 100,000 | 5 | % | 717,283 | 100,000 | 100,000 | |||||||||||||||||||||||||||||||||||
First Capital A.G. | 25-Apr-12 | April 25,2014 | 100,000 | 5 | % | 717,283 | 100,000 | 100,000 | Asher Enterprises, Inc. | July 27th, 2012 | April 13th, 2013 | 63,000 | 8 | % | - | - | 63,000 | |||||||||||||||||||||||||||||||||||
$ | 1,050,000 | $ | 1,050,000 | Asher Enterprises, Inc. | October 17,2012 | 17-Jul-13 | $ | 53,000 | 8 | % | - | - | 53,000 | |||||||||||||||||||||||||||||||||||||||
Less: | $ | 1,050,000 | $ | 1,166,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount | 299,742 | 367,425 | Less: | 367,425 | 804,993 | |||||||||||||||||||||||||||||||||||||||||||||||
from beneficial | Debt discount from beneficial conversion feature | |||||||||||||||||||||||||||||||||||||||||||||||||||
conversion feature | 682,575 | 361,007 | ||||||||||||||||||||||||||||||||||||||||||||||||||
750,258 | 682,575 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Less: | 60,703 | 46,040 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Less: | Current portion | |||||||||||||||||||||||||||||||||||||||||||||||||||
Current portion | 95,631 | 60,703 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-current portion | Non-current portion | $ | 621,872 | $ | 314,967 | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 654,627 | $ | 621,872 | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Valuation Assumptions | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||
The following assumptions provide information regarding the convertible promissory note of $100,000 issued to Fist Capital A.G. as of December 31, 2013: | The following assumptions provide information regarding the convertible promissory note of $100,000 issued to Fist Capital A.G. as of December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issuable upon conversion | 717,283 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Market value of common stock on measurement date (1) | 0.12 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Exercise price | 0.14 | Common stock issuable upon conversion | 717,283 | |||||||||||||||||||||||||||||||||||||||||||||||||
Risk free interest rate (2) | 0.07 | % | Market value of common stock on measurement date (1) | 0.12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Term in year | 0.32 | Adjusted Exercise price | 0.14 | |||||||||||||||||||||||||||||||||||||||||||||||||
Expected volatility (3) | 208.6 | % | Risk free interest rate (2) | 0.07 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Expected dividend yield (4) | 0 | % | Term in year | 0.32 | ||||||||||||||||||||||||||||||||||||||||||||||||
Expected volatility (3) | 208.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
-1 | The market value of common stock is the stock price at the close of trading on the date of December 31, 2013. | Expected dividend yield (4) | 0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
-2 | The risk-free interest rate was determined by management using the Treasury Bill rates with maturity from 3-month to 6-month as of December 31, 2013. | -1 | The market value of common stock is the stock price at the close of trading on the date of December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||
-3 | Expected volatility is based on average volatility of historical share trade information. The Company believes this method produces an estimate that is representative of the Company's expectations of future volatility over the expected term of the warrants. | -2 | The risk-free interest rate was determined by management using the Treasury Bill rates with maturity from 3-month to 6-month as of December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||
-4 | Management determined the dividend yield to be 0% based upon its expectation that it will not pay dividends for the foreseeable future. | -3 | Expected volatility is based on average volatility of historical share trade information. The Company believes this method produces an estimate that is representative of the Company's expectations of future volatility over the expected term of the warrants. | |||||||||||||||||||||||||||||||||||||||||||||||||
-4 | Management determined the dividend yield to be 0% based upon its expectation that it will not pay dividends for the foreseeable future. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured on a Recurring Basis | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||
The following table sets forth, by level within the fair value hierarchy, the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2014: | The following table sets forth, by level within the fair value hierarchy, the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at March 31, 2014 | Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Descriptions | Quoted Prices | Significant | Significant | Total Carrying | Quoted Prices In | Significant | ||||||||||||||||||||||||||||||||||||||||||||||
In | Other | Unobservable | Value as of | Active Markets for | Significant Other | Unobservable | Total Carrying | |||||||||||||||||||||||||||||||||||||||||||||
Active Markets | Observable | Inputs | 31-Mar-14 | Identical Assets | Observable Inputs | Inputs | Value as of | |||||||||||||||||||||||||||||||||||||||||||||
for | Inputs | (Level 3) | Descriptions | (Level 1) | (Level 2) | (Level 3) | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | Derivative warrant instruments | - | - | 384,598 | 384,598 | |||||||||||||||||||||||||||||||||||||||||||||||
Derivative warrant instruments | - | - | 356,700 | 356,700 | Total | - | - | 384,598 | 384,598 | |||||||||||||||||||||||||||||||||||||||||||
Total | - | - | 356,700 | 356,700 | ||||||||||||||||||||||||||||||||||||||||||||||||
Shortterm_Bank_Loans_Tables
Short-term Bank Loans (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Short-term Bank Loans [Abstract] | ' | ||||||||||||||
Schedule of Short Term Bank Loans | ' | ||||||||||||||
Short term bank loans consisted of the following: | |||||||||||||||
March 31, | December 31, | ||||||||||||||
Due date | Interest rate | 2014 | 2013 | ||||||||||||
Unsecured bank loan: | |||||||||||||||
China Construction Bank | 4/30/14 | 5.54% per annum | $ | 2,272,026 | $ | - | |||||||||
$ | 2,272,026 | $ | - |
Income_Tax_Tables
Income Tax (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Income Tax [Abstract] | ' | ' | ||||||||||||||||
Schedule of Deferred Income Taxes | ' | ' | ||||||||||||||||
The following table sets forth the components of deferred income taxes as of March 31, 2014 and December 31, 2013: | The following table sets forth the components of deferred income taxes as of December 31, 2013 and 2012: | |||||||||||||||||
March 31, | December 31, | December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||||
Deferred tax assets: | Deferred tax assets: | |||||||||||||||||
Net operating losses - U.S. | $ | 102,936 | $ | 1,195,355 | Net operating losses - U.S. | $ | 1,195,355 | $ | 129,630 | |||||||||
Deferred revenue | - | 19,223 | Net operating losses - PRC and Hong Kong | - | 68,625 | |||||||||||||
102,936 | 1,214,578 | Deferred revenue | 19,223 | 19,703 | ||||||||||||||
Valuation allowance | (102,936 | ) | (1,214,578 | ) | ||||||||||||||
Deferred tax assets, net | $ | - | $ | - | 1,214,578 | 217,958 | ||||||||||||
Valuation allowance | (1,214,578 | ) | (217,958 | ) | ||||||||||||||
Deferred tax assets, net | $ | - | $ | - | ||||||||||||||
Loss_earnings_per_Share_Tables
(Loss) earnings per Share (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
(Loss) earnings per Share [Abstract] | ' | ' | ||||||||||||||||
Schedule of Earnings per Share | ' | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted net loss per share: | The following table sets forth the computation of basic and diluted net loss per share: | |||||||||||||||||
For The Years Ended | ||||||||||||||||||
For The Three Months Ended | December 31, | |||||||||||||||||
March 31, | 2013 | 2012 | ||||||||||||||||
2014 | 2013 | Net income (loss) available for common shareholders - basic | ||||||||||||||||
$ | (504,848 | ) | $ | (434,769 | ) | |||||||||||||
Net income (loss) available for common shareholders - basic | $ | 98,976 | $ | (371,108 | ) | Interest expense on convertible notes | 42,025 | 122,268 | ||||||||||
Interest expense on convertible notes | 13,125 | 12,540 | Net income (loss) available for common shareholders - diluted | |||||||||||||||
Net income (loss) available for common shareholders - diluted | $ | 112,101 | $ | (358,568 | ) | $ | (462,823 | ) | $ | (312,501 | ) | |||||||
Weighted average outstanding shares of common stock - basic | ||||||||||||||||||
Weighted average outstanding shares of common stock - basic | 73,127,686 | 60,195,591 | 68,606,084 | 60,000,000 | ||||||||||||||
Dilutive shares: | Effect of dilutive securities - convertible notes | |||||||||||||||||
Conversion of convertible notes payable | 4,517,283 | - | - | - | ||||||||||||||
Weighted average outstanding shares of common stock -diluted | ||||||||||||||||||
Weighted average outstanding shares of common stock - diluted | 77,644,969 | 60,195,591 | 68,606,084 | 60,000,000 | ||||||||||||||
Profit (loss) per share - basic | $ | (0.01 | ) | $ | (0.01 | ) | ||||||||||||
Earnings (loss) per share - basic | $ | 0.0014 | $ | (0.0062 | ) | Profit (loss) per share - diluted | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
Earnings (loss) per share - diluted | $ | 0.0014 | $ | (0.0062 | ) | |||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||
Commitments and Contingencies [Abstract] | ' | ' | ||||||||
Schedule of Future Minimum Payments | ' | ' | ||||||||
The Company's obligations under operating lease are as follows: | The Company's obligations under operating lease are as follows: | |||||||||
2014 | $ | 29,122 | 2014 | $ | 29,605 | |||||
Thereafter | - | Thereafter | - | |||||||
Total minimum payment | $ | 29,122 | Total minimum payment | $ | 29,605 | |||||
Concentrations_Risks_and_Uncer1
Concentrations, Risks, and Uncertainties (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Concentrations, Risks, and Uncertainties [Abstract] | ' | ' | ||||||||||||||||
Schedule of Revenue Concentration | ' | ' | ||||||||||||||||
The Company has the following concentrations of business with each customer constituting greater than 10% of the Company's gross sales: | The Company has the following concentrations of business with each customer constituting greater than 10% of the Company's gross sales: | |||||||||||||||||
For The Years Ended | ||||||||||||||||||
For The Three Months Ended | December 31, | |||||||||||||||||
March 31, | 2013 | 2012 | ||||||||||||||||
2014 | 2013 | |||||||||||||||||
Customer A | 34 | % | * | |||||||||||||||
Customer A | 99.98 | % | - | Customer B | 15 | % | * | |||||||||||
Customer B | - | 37 | % | Customer C | * | 86 | % | |||||||||||
Customer C | - | 37 | % | |||||||||||||||
Customer D | - | 26 | % | * Constitutes less than 10% of the Company's gross sales. | ||||||||||||||
* Constitutes less than 10% of the Company's gross sales. |
Schedule_II_Shenzhen_Jifu_Comm1
Schedule II - Shenzhen Jifu Communication Technology Co., Ltd (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Schedule II - Shenzhen Jifu Communication Technology Co., Ltd [Abstract] | ' | ||||
Condensed Consolidated Balance Sheets | ' | ||||
As of | |||||
4-Jul-13 | |||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 60,449 | |||
Trade accounts receivable | 1,392,440 | ||||
Other receivables, net | 332,409 | ||||
Inventories | 664 | ||||
Total current assets | $ | 1,785,962 | |||
Long-term assets: | |||||
Property, plant and equipment, net | 23,301 | ||||
TOTAL ASSETS | $ | 1,809,263 | |||
LIABILITIES | |||||
Current liabilities: | |||||
Accounts payable | $ | 290,830 | |||
Other payables and accrued expenses | 608,174 | ||||
Other taxes payables | 57,208 | ||||
Total current liabilities | $ | 956,212 | |||
TOTAL LIABILITIES | $ | 956,212 | |||
STOCKHOLDERS' EQUITY | |||||
Registered capital | $ | 362,472 | |||
Retained earnings | 383,074 | ||||
Accumulated other comprehensive income | 107,505 | ||||
TOTAL STOCKHOLDERS' EQUITY | $ | 853,051 | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,809,263 | |||
Condensed Consolidated Statements of Income and Comprehensive Loss | ' | ||||
From the period of | |||||
1-Jan-13 | |||||
to | |||||
4-Jul-13 | |||||
Net sales | $ | 1,929,970 | |||
Costs of sales | 697,392 | ||||
Gross profit | $ | 1,232,578 | |||
Selling expense | 42,557 | ||||
General and administrative expenses | 862,754 | ||||
Total Operating Expenses | 905,311 | ||||
Income from operations | $ | 327,267 | |||
Other expenses (income) | |||||
Other income | 119,756 | ||||
Income before income taxes | $ | 447,023 | |||
Income tax provision | - | ||||
Net income | $ | 447,023 | |||
Foreign currency translation gain(loss) | (6,609 | ) | |||
Comprehensive income | $ | 440,414 | |||
Condensed Consolidated Statements of Cash Flows | ' | ||||
For the period from | |||||
1-Jan-13 | |||||
to | |||||
4-Jul-13 | |||||
Cash flows provided by (used for) operating activities: | |||||
Net income | $ | 447,023 | |||
Depreciation | 4,383 | ||||
Adjustments to reconcile net income to net cash provided | |||||
by (used for) operating activities: | |||||
Trade accounts receivable | (1,320,606 | ) | |||
Other receivable and prepayment | (5,434 | ) | |||
Inventory | (654 | ) | |||
Account payables | 287,739 | ||||
Other payables and accrued expenses | 607,714 | ||||
Net cash provided by (used for) operating activities | $ | 20,165 | |||
Cash flows provided by (used for) investing activities: | |||||
Acquisition of plant and equipment | $ | (848 | ) | ||
Net cash provided by (used for) investing activities | $ | (848 | ) | ||
Net cash provided by (used for) financing activities | $ | - | |||
Effect of Exchange Rate Changes on Cash | $ | 1,000 | |||
Net increase (decrease) in cash and cash equivalents | $ | 20,317 | |||
Cash and cash equivalents - beginning of period | $ | 40,132 | |||
Cash and cash equivalents - end of period | $ | 60,449 | |||
Supplementary disclosure of cash flow information: | |||||
Interest received | $ | - | |||
Interest paid | $ | - |
Organization_and_Nature_of_Bus1
Organization and Nature of Business (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2012 | Sep. 01, 2011 | Aug. 30, 2011 | Dec. 31, 2011 | Aug. 30, 2011 | Dec. 31, 2013 | Aug. 30, 2011 | Aug. 11, 2011 | Aug. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 04, 2013 | |
USD ($) | USD ($) | USD ($) | CC Mobility [Member] | CC Mobility [Member] | CC Power and Jifu [Member] | Paez [Member] | Paez [Member] | Brodeth [Member] | CC Mobility [Member] | CC Mobility [Member] | CC Mobility [Member] | CC Investment [Member] | CC Power [Member] | CC Power [Member] | Jifu [Member] | Jifu [Member] | Jifu [Member] | |||
USD ($) | HKD | CC Wireless Limited [Member] | Sheen Ventures Limited [Member] | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | |||||||||||
Organization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 73,127,686 | 73,127,686 | 60,000,000 | 60,000,000 | 29,700,000 | ' | ' | ' | ' | ' | ' | ' | 560 | 440 | ' | ' | ' | ' | ' | ' |
Shares cancelled | ' | ' | ' | 60,000,000 | 29,700,000 | ' | ' | ' | 7,350,000 | 17,700,000 | 22,950,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, shares outstanding | 73,127,686 | 73,127,686 | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Registered capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | $2,000,000 | $1,547,000 | 10,000,000 | ' | 3,000,000 | $362,472 |
Contributed capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | 346,000 | 2,526,000 | ' | ' | ' |
Common stock, par value per share | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Service commitment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,306,740 | 27,169,500 | ' |
Term of service commitment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued in acquisition agreement | 30,000,000 | ' | ' | ' | ' | 30,300,000 | ' | 27,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
New shares issued as part of an acquisition agreement | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest acquired | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest sold | ' | ' | ' | ' | ' | ' | 50.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue requirement | ' | ' | ' | ' | ' | ' | ' | $4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Variable Interest Entity) (Details) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | USD ($) | CC Power [Member] | CC Power [Member] | CC Power [Member] | CC Power [Member] | Jifu [Member] | Jifu [Member] | Jifu [Member] | Jifu [Member] | |
CNY | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | ||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total current assets | $5,769,582 | $4,817,375 | $136,270 | ' | $89,058 | $86,173 | $113,894 | ' | $6,151,398 | $5,138,384 | ' |
Total assets | 7,594,303 | 6,650,204 | 226,645 | ' | 244,583 | 153,178 | 190,199 | ' | 6,172,165 | 5,161,150 | ' |
Total current liabilities | 5,640,619 | 4,856,024 | 874,592 | ' | 527,507 | 551,012 | 320,873 | ' | 4,141,857 | 3,405,746 | ' |
Total liabilities | 6,463,616 | 5,625,550 | 1,209,689 | ' | 527,507 | 551,012 | 341,003 | ' | 4,141,857 | 3,405,746 | ' |
Loan agreement | ' | ' | ' | 10,000,000 | ' | ' | ' | 3,000,000 | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Property and Equipment) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '5 years | '5 years |
Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '5 years | '5 years |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | 'Over the lease terms | 'Over the lease terms |
Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '5 years | '5 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Research and Development and Software Development Costs) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of Significant Accounting Policies [Abstract] | ' | ' | ' | ' |
Research and development | $146,344 | $55,997 | $1,611,826 | $246,667 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Foreign Currency Translation) (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
CNY | CNY | CNY | CNY | |
Summary of Significant Accounting Policies [Abstract] | ' | ' | ' | ' |
Balance sheet exchange rates used to translate amounts in RMB into USD | 6.1619 | 6.2666 | 6.1104 | 6.3011 |
Statement of operations and other comprehensive loss exchange rates used to translate amounts in RMB into USD | 6.1156 | 6.2769 | 6.1905 | 6.3034 |
Goodwill_Details
Goodwill (Details) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | 7-May-13 | 7-May-13 | Dec. 31, 2012 | |
USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | |
Goodwill [Abstract] | ' | ' | ' | ' | ' | ' |
Shares issued in acquisition agreement | 30,000,000 | 30,000,000 | ' | ' | ' | ' |
Shares issued, price per share | $0.07 | ' | ' | ' | ' | ' |
Cost of acquisition | $2,100,000 | 12,873,000 | ' | ' | ' | ' |
Net assets of Jifu | ' | ' | ' | 1,653,581 | 10,136,450 | ' |
Goodwill | $446,419 | ' | $446,419 | $446,419 | 2,736,550 | ' |
Property_and_Equipment_net_Det
Property and Equipment, net (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, gross | $375,157 | ' | $378,189 | $155,940 |
Less: Accumulated depreciation | -290,872 | ' | -285,796 | -65,565 |
Property and equipment, net | 84,285 | ' | 92,393 | 90,375 |
Depreciation expense | 5,744 | 7,409 | 22,128 | 21,171 |
Equipment [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, gross | 247,585 | ' | 249,543 | 132,017 |
Office equipment [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, gross | 117,032 | ' | 118,018 | 13,617 |
Leasehold improvements [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, gross | 8,602 | ' | 8,674 | 8,411 |
Software [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property and equipment, gross | $1,938 | ' | $1,954 | $1,895 |
Intangible_Assets_net_Details
Intangible Assets, net (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets, gross | $1,294,017 | $1,294,017 | ' |
Less: Accumulated amortization | ' | ' | ' |
Intangible assets, net | 1,294,017 | 1,294,017 | ' |
Customer relationship [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets, gross | 793,547 | 793,547 | ' |
Trade name [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets, gross | $500,470 | $500,470 | ' |
Deferred_Revenue_Schedule_of_D
Deferred Revenue (Schedule of Deferred Revenue) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deferred Revenue [Abstract] | ' | ' | ' | ' | ' |
Current | $19,062 | $19,223 | ' | $78,811 | ' |
Non-current | ' | ' | ' | 20,130 | ' |
Total | $19,062 | $19,223 | $63,642 | $98,941 | $301,231 |
Deferred_Revenue_Summary_of_De
Deferred Revenue (Summary of Deferred Revenue) (Details) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2011 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Multiple Element Arrangements [Member] | Multiple Element Arrangements [Member] | Multiple Element Arrangements [Member] | Government Research And Development Arrangements [Member] | Government Research And Development Arrangements [Member] | Government Research And Development Arrangements [Member] | Government Research And Development Arrangements [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue, balance at beginning of year | $19,223 | $98,941 | $301,231 | ' | ' | ' | ' | ' | ' | ' |
Revenue received during the year | ' | ' | ' | ' | ' | 135,602 | ' | ' | ' | 105,721 |
Revenue earned during the year | ' | ' | ' | -14,289 | -15,931 | -276,631 | ' | -21,010 | -63,787 | -95,222 |
Exchange rate difference | -161 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue, balance at end of year | $19,062 | $63,642 | $301,231 | ' | ' | ' | ' | ' | ' | ' |
Convertible_Promissory_Notes_S
Convertible Promissory Notes (Schedule of Convertible Promissory Notes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' | ' |
Convertible debt | $1,050,000 | $1,050,000 | $1,166,000 |
Less: Debt discount from beneficial conversion feature | 299,742 | 367,425 | 804,993 |
Convertible debt, net of discount | 750,258 | 682,575 | 361,007 |
Less: Current portion | 95,631 | 60,703 | 46,040 |
Non-current portion | 654,627 | 621,872 | 314,967 |
Vantage Associates SA Note One [Member] | Convertible Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Date of Note | 15-Apr-11 | 15-Apr-11 | ' |
Maturity Date | 15-Apr-16 | 15-Apr-16 | ' |
Loan Amount | 150,000 | 150,000 | ' |
Interest Rate (p.a.) | 5.00% | 5.00% | ' |
Convertible Number of stock | 600,000 | 600,000 | ' |
Convertible debt | 150,000 | 150,000 | 150,000 |
Empa Trading Ltd. [Member] | Convertible Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Date of Note | 5-Jun-11 | 5-Jun-11 | ' |
Maturity Date | 5-Jun-16 | 5-Jun-16 | ' |
Loan Amount | 100,000 | 100,000 | ' |
Interest Rate (p.a.) | 5.00% | 5.00% | ' |
Convertible Number of stock | 400,000 | 400,000 | ' |
Convertible debt | 100,000 | 100,000 | 100,000 |
First Capital A.G. Note One [Member] | Convertible Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Date of Note | 14-Jul-11 | 14-Jul-11 | ' |
Maturity Date | 14-Jul-16 | 14-Jul-16 | ' |
Loan Amount | 150,000 | 150,000 | ' |
Interest Rate (p.a.) | 5.00% | 5.00% | ' |
Convertible Number of stock | 600,000 | 600,000 | ' |
Convertible debt | 150,000 | 150,000 | 150,000 |
First Capital A.G. Note Two [Member] | Convertible Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Date of Note | 9-Sep-11 | 9-Sep-11 | ' |
Maturity Date | 9-Sep-16 | 9-Sep-16 | ' |
Loan Amount | 200,000 | 200,000 | ' |
Interest Rate (p.a.) | 5.00% | 5.00% | ' |
Convertible Number of stock | 800,000 | 800,000 | ' |
Convertible debt | 200,000 | 200,000 | 200,000 |
Vantage Associates SA Note Two [Member] | Convertible Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Date of Note | 9-Sep-11 | 9-Sep-11 | ' |
Maturity Date | 9-Sep-16 | 9-Sep-16 | ' |
Loan Amount | 200,000 | 200,000 | ' |
Interest Rate (p.a.) | 5.00% | 5.00% | ' |
Convertible Number of stock | 800,000 | 800,000 | ' |
Convertible debt | 200,000 | 200,000 | 200,000 |
Vantage Associates SA Note Three [Member] | Convertible Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Date of Note | 27-Oct-11 | 27-Oct-11 | ' |
Maturity Date | 27-Oct-16 | 27-Oct-16 | ' |
Loan Amount | 50,000 | 50,000 | ' |
Interest Rate (p.a.) | 5.00% | 5.00% | ' |
Convertible Number of stock | 200,000 | 200,000 | ' |
Convertible debt | 50,000 | 50,000 | 50,000 |
First Capital A.G. Note Three [Member] | Convertible Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Date of Note | 1-Dec-11 | 1-Dec-11 | ' |
Maturity Date | 1-Dec-16 | 1-Dec-16 | ' |
Loan Amount | 50,000 | 50,000 | ' |
Interest Rate (p.a.) | 5.00% | 5.00% | ' |
Convertible Number of stock | 200,000 | 200,000 | ' |
Convertible debt | 50,000 | 50,000 | 50,000 |
First Capital A.G. Note Four [Member] | Convertible Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Date of Note | 23-Jan-12 | 23-Jan-12 | ' |
Maturity Date | 23-Jan-17 | 23-Jan-17 | ' |
Loan Amount | 50,000 | 50,000 | ' |
Interest Rate (p.a.) | 5.00% | 5.00% | ' |
Convertible Number of stock | 200,000 | 200,000 | ' |
Convertible debt | 50,000 | 50,000 | 50,000 |
First Capital A.G. Note Five [Member] | Convertible Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Date of Note | 25-Apr-12 | 25-Apr-12 | ' |
Maturity Date | 25-Apr-14 | 25-Apr-14 | ' |
Loan Amount | 100,000 | 100,000 | ' |
Interest Rate (p.a.) | 5.00% | 5.00% | ' |
Convertible Number of stock | 717,283 | 717,283 | ' |
Convertible debt | 100,000 | 100,000 | 100,000 |
Asher Enterprises, Inc. Note One [Member] | Convertible Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Date of Note | ' | 27-Jul-12 | ' |
Maturity Date | ' | 13-Apr-13 | ' |
Loan Amount | ' | 63,000 | ' |
Interest Rate (p.a.) | ' | 8.00% | ' |
Convertible Number of stock | ' | ' | ' |
Convertible debt | ' | ' | 63,000 |
Asher Enterprises, Inc. Note Two [Member] | Convertible Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Date of Note | ' | 1-Oct-12 | ' |
Maturity Date | ' | 17-Jul-13 | ' |
Loan Amount | ' | 53,000 | ' |
Interest Rate (p.a.) | ' | 8.00% | ' |
Convertible Number of stock | ' | ' | ' |
Convertible debt | ' | ' | $53,000 |
Convertible_Promissory_Notes_S1
Convertible Promissory Notes (Schedule of Valuation Assumptions) (Details) (Convertible Debt [Member], USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | |
Risk free interest rate | 0.44% | 0.38% | |
Term in year | '2 years | '3 years | |
Expected volatility | 181.90% | 208.60% | |
Expected dividend yield | 0.00% | 0.00% | |
First Capital A.G. Note Five [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Common stock issuable upon conversion | 717,283 | 717,283 | |
Market value of common stock on measurement date | ' | 0.12 | [1] |
Adjusted Exercise price | ' | 0.14 | |
Risk free interest rate | ' | 0.07% | [2] |
Term in year | ' | '3 months 26 days | |
Expected volatility | ' | 208.60% | [3] |
Expected dividend yield | ' | 0.00% | [4] |
[1] | The market value of common stock is the stock price at the close of trading on the date of December 31, 2013. | ||
[2] | The risk-free interest rate was determined by management using the Treasury Bill rates with maturity from 3-month to 6-month as of December 31, 2013. | ||
[3] | Expected volatility is based on average volatility of historical share trade information. The Company believes this method produces an estimate that is representative of the Company's expectations of future volatility over the expected term of the warrants. | ||
[4] | Management determined the dividend yield to be 0% based upon its expectation that it will not pay dividends for the foreseeable future. |
Convertible_Promissory_Notes_S2
Convertible Promissory Notes (Schedule of Assets and Liabilities Measured on a Recurring Basis) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities, fair value disclosure | $356,700 | $384,598 |
Warrant [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities, fair value disclosure | 356,700 | 384,598 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities, fair value disclosure | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Warrant [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities, fair value disclosure | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities, fair value disclosure | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Warrant [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities, fair value disclosure | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities, fair value disclosure | 356,700 | 384,598 |
Significant Unobservable Inputs (Level 3) [Member] | Warrant [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities, fair value disclosure | $356,700 | $384,598 |
Convertible_Promissory_Notes_N
Convertible Promissory Notes (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | |
Amortization of debt discount | $75,437 | $112,522 | $504,195 | $340,816 | |
Convertible Debt [Member] | ' | ' | ' | ' | |
Debt Instrument [Line Items] | ' | ' | ' | ' | |
Interest expense | 13,125 | 12,540 | 42,025 | 122,268 | |
Amortization of debt discount | 75,437 | 112,522 | 504,195 | 340,816 | |
Debt conversion, price per share | $0.50 | ' | $0.50 | ' | |
Fair market value of conversion feature | 356,700 | ' | 384,598 | 423,480 | |
Term in year | '2 years | ' | '3 years | ' | |
Expected dividend yield | 0.00% | ' | 0.00% | ' | |
Expected volatility | 181.90% | ' | 208.60% | ' | |
Risk free interest rate | 0.44% | ' | 0.38% | ' | |
Convertible Debt [Member] | Expires Two Years From Date Of Exchange [Member] | ' | ' | ' | ' | |
Debt Instrument [Line Items] | ' | ' | ' | ' | |
Warrant exercise price | $1 | ' | $1 | ' | |
Convertible Debt [Member] | Expires Three Years From Date Of Exchange [Member] | ' | ' | ' | ' | |
Debt Instrument [Line Items] | ' | ' | ' | ' | |
Warrant exercise price | $1.50 | ' | $1.50 | ' | |
Convertible Debt [Member] | First Capital A.G. Note Five [Member] | ' | ' | ' | ' | |
Debt Instrument [Line Items] | ' | ' | ' | ' | |
Amount excluded from primary terms | $100,000 | ' | $100,000 | ' | |
Debt conversion, rate | ' | ' | 60.00% | ' | |
Term in year | ' | ' | '3 months 26 days | ' | |
Expected dividend yield | ' | ' | 0.00% | [1] | ' |
Expected volatility | ' | ' | 208.60% | [2] | ' |
Risk free interest rate | ' | ' | 0.07% | [3] | ' |
[1] | Management determined the dividend yield to be 0% based upon its expectation that it will not pay dividends for the foreseeable future. | ||||
[2] | Expected volatility is based on average volatility of historical share trade information. The Company believes this method produces an estimate that is representative of the Company's expectations of future volatility over the expected term of the warrants. | ||||
[3] | The risk-free interest rate was determined by management using the Treasury Bill rates with maturity from 3-month to 6-month as of December 31, 2013. |
Shortterm_Bank_Loans_Details
Short-term Bank Loans (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' | ' |
Short-term bank loans | $2,272,026 | ' | ' |
Interest expense | 31,636 | ' | ' |
China Construction Bank [Member] | Short-term Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Due date | 30-Apr-14 | ' | ' |
Interest rate | 5.54% | ' | ' |
Short-term bank loans | $2,272,026 | ' | ' |
Income_Tax_Narrative_Details
Income Tax (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Valuation allowance | $102,936 | ' | $1,214,578 | $217,958 |
Change in valuation allowance | -1,111,642 | 133,702 | 996,620 | -403 |
PRC [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Statutory income tax rate | 25.00% | ' | 25.00% | ' |
Net operating loss carry-forwards | 681,272 | ' | 883,185 | ' |
Net operating loss carry-forwards, expiration date | 31-Dec-13 | ' | 31-Dec-13 | ' |
Hong Kong [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Statutory income tax rate | 16.50% | ' | 16.50% | ' |
United States [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Net operating loss carry-forwards | $1,923,997 | ' | $1,821,061 | ' |
Net operating loss carry-forwards, expiration date | 31-Dec-30 | ' | 31-Dec-30 | ' |
Income_Tax_Schedule_of_Deferre
Income Tax (Schedule of Deferred Income Taxes) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' | ' |
Net operating losses - U.S. | $102,936 | $1,195,355 | $129,630 |
Net operating losses - PRC and Hong Kong | ' | ' | 68,625 |
Deferred revenue | ' | 19,223 | 19,703 |
Deferred tax assets, gross | 102,936 | 1,214,578 | 217,958 |
Valuation allowance | -102,936 | -1,214,578 | -217,958 |
Deferred tax assets, net | ' | ' | ' |
Employee_Benefits_Details
Employee Benefits (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Benefits [Abstract] | ' | ' | ' | ' |
Benefit compensation expense | $17,101 | $2,586 | $20,073 | $6,600 |
Loss_earnings_per_Share_Detail
(Loss) earnings per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
(Loss) earnings per Share [Abstract] | ' | ' | ' | ' |
Net income (loss) available for common shareholders - basic | $98,976 | ($371,108) | ($504,848) | ($434,769) |
Interest expense on convertible notes | 13,125 | 12,540 | 42,025 | 122,268 |
Net income (loss) available for common shareholders - diluted | $112,101 | ($358,568) | ($462,823) | ($312,501) |
Weighted average outstanding shares of common stock - basic | 73,127,686 | 60,195,591 | 68,606,084 | 60,000,000 |
Effect of dilutive securities - convertible notes | 4,517,283 | ' | ' | ' |
Weighted average outstanding shares of common stock - diluted | 77,644,969 | 60,195,591 | 68,606,084 | 60,000,000 |
Profit (loss) per share - basic | $0.00 | ($0.01) | ($0.01) | ($0.01) |
Profit (loss) per share - diluted | $0.00 | ($0.01) | ($0.01) | ($0.01) |
Antidilutive securities | ' | ' | 0 | 0 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies [Abstract] | ' | ' | ' | ' |
2014 | $29,122 | ' | $29,605 | ' |
Thereafter | ' | ' | ' | ' |
Total minimum payment | 29,122 | ' | 29,605 | ' |
Rental expenses | $39,489 | $21,412 | $32,080 | $85,300 |
Concentrations_Risks_and_Uncer2
Concentrations, Risks, and Uncertainties (Details) (Customer Concentration Risk [Member], Sales [Member]) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Customer A [Member] | ' | ' | ' | ' | ||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ||||
Concentration percentage | 99.98% | 0.00% | [1] | 34.00% | 0.00% | [1] | ||
Customer B [Member] | ' | ' | ' | ' | ||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ||||
Concentration percentage | 0.00% | [1] | 37.00% | 15.00% | 0.00% | [1] | ||
Customer C [Member] | ' | ' | ' | ' | ||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ||||
Concentration percentage | 0.00% | [1] | 37.00% | 0.00% | [1] | 86.00% | ||
Customer D [Member] | ' | ' | ' | ' | ||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ||||
Concentration percentage | 0.00% | [1] | 26.00% | ' | ' | |||
[1] | Constitutes less than 10% of the Company's gross sales. |
Related_Party_Transaction_Deta
Related Party Transaction (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Abstract] | ' | ' |
Consulting fees | ' | $42,800 |
Restricted_Stock_to_Director_D
Restricted Stock to Director (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Common stock, par value | $0.00 | $0.00 | $0.00 |
Value of shares issued for services | $189,000 | ' | ' |
Vested during period | ' | 180,000 | ' |
Stock based compensation expense | ' | 59,900 | ' |
April 20, 2012 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted | ' | 360,000 | ' |
Grant date fair value | ' | 201,600 | ' |
April 20, 2012 [Member] | Quarterly [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting rate | ' | 0.13% | ' |
November 2012 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares issued for services | ' | 150,000 | ' |
Common stock, par value | ' | $0.00 | ' |
Value of shares issued for services | ' | 12,000 | ' |
August 14, 2012 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted | ' | 360,000 | ' |
Grant date fair value | ' | $82,800 | ' |
August 14, 2012 [Member] | Immediately [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting shares | ' | 120,000 | ' |
August 14, 2012 [Member] | September 1, 2012 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting shares | ' | 45,000 | ' |
August 14, 2012 [Member] | January 1, 2013 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting shares | ' | 45,000 | ' |
August 14, 2012 [Member] | May 1, 2013 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting shares | ' | 45,000 | ' |
August 14, 2012 [Member] | September 1, 2013 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting shares | ' | 45,000 | ' |
August 14, 2012 [Member] | January 1, 2014 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares issued for services | ' | 45,000 | ' |
Schedule_II_Shenzhen_Jifu_Comm2
Schedule II - Shenzhen Jifu Communication Technology Co., Ltd (Balance Sheets) (Details) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jul. 04, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Shenzhen Jifu Communication Technology Co., Ltd [Member] | Shenzhen Jifu Communication Technology Co., Ltd [Member] | Shenzhen Jifu Communication Technology Co., Ltd [Member] | |
CNY | USD ($) | USD ($) | ||||||
Current assets: | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $87,847 | $431,707 | $308,680 | $98,739 | $615,208 | ' | $60,449 | $40,132 |
Trade accounts receivable | 2,095,680 | 1,662,760 | ' | 19,309 | ' | ' | 1,392,440 | ' |
Other receivables, net | 2,409,968 | 431,824 | ' | 5,615 | ' | ' | 332,409 | ' |
Inventories | 936,141 | 2,101,585 | ' | 348 | ' | ' | 664 | ' |
Total Current Assets | 5,769,582 | 4,817,375 | ' | 136,270 | ' | ' | 1,785,962 | ' |
Non-current Assets | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | 84,285 | 92,393 | ' | 90,375 | ' | ' | 23,301 | ' |
TOTAL ASSETS | 7,594,303 | 6,650,204 | ' | 226,645 | ' | ' | 1,809,263 | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | 1,274,580 | 2,814,906 | ' | 76,594 | ' | ' | 290,830 | ' |
Other payables and accrued expenses | 1,293,731 | 1,247,549 | ' | 109,147 | ' | ' | 608,174 | ' |
Other taxes payables | ' | 319 | ' | ' | ' | ' | 57,208 | ' |
Total Current Liabilities | 5,640,619 | 4,856,024 | ' | 874,592 | ' | ' | 956,212 | ' |
Total Liabilities | 6,463,616 | 5,625,550 | ' | 1,209,689 | ' | ' | 956,212 | ' |
Stockholders' equity: | ' | ' | ' | ' | ' | ' | ' | ' |
Registered capital | ' | ' | ' | ' | ' | 3,000,000 | 362,472 | ' |
Retained earnings | -1,613,522 | -1,712,498 | ' | -1,207,650 | ' | ' | 383,074 | ' |
Accumulated other comprehensive income (loss) | -142,539 | -149,596 | ' | 33,044 | ' | ' | 107,505 | ' |
Total Shareholders' (Deficit) Equity | 1,130,687 | 1,024,654 | ' | -983,044 | -609,970 | ' | 853,051 | ' |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | $7,594,303 | $6,650,204 | ' | $226,645 | ' | ' | $1,809,263 | ' |
Schedule_II_Shenzhen_Jifu_Comm3
Schedule II - Shenzhen Jifu Communication Technology Co., Ltd (Statements of Operation and Comprehensive Loss) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 04, 2013 | |
Shenzhen Jifu Communication Technology Co., Ltd [Member] | |||||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net sales | $844,528 | $26,374 | $2,781,745 | $277,406 | $1,929,970 |
Cost of sales | 134,852 | ' | 494,485 | 17,953 | 697,392 |
Gross Profit | 709,676 | 26,374 | 2,287,260 | 259,453 | 1,232,578 |
Selling expense | 35,017 | 4,487 | 298,496 | 41,136 | 42,557 |
General and administrative | 519,121 | 281,932 | 2,372,864 | 986,908 | 862,754 |
Total Operating Expenses | 554,138 | 286,419 | 2,671,360 | 1,028,044 | 905,311 |
Income (Loss) from Operations | 155,586 | -260,045 | -384,100 | -768,591 | 327,267 |
Other income (expense): | ' | ' | ' | ' | ' |
Other income | 22,613 | 13,964 | 408 | ' | 119,756 |
Income (Loss) Before Taxes | 98,976 | -371,108 | -504,848 | -434,769 | 447,023 |
Income tax expense | ' | ' | ' | ' | ' |
Net Income (Loss) | 98,976 | -371,108 | -504,848 | -434,769 | 447,023 |
Foreign currency translation adjustment | 7,057 | -4,178 | -182,640 | 2,381 | -6,609 |
Comprehensive income (loss) | $106,033 | ($375,286) | ($687,488) | ($432,388) | $440,414 |
Schedule_II_Shenzhen_Jifu_Comm4
Schedule II - Shenzhen Jifu Communication Technology Co., Ltd (Statements of Cash Flows) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 04, 2013 | |
Shenzhen Jifu Communication Technology Co., Ltd [Member] | |||||
Cash flows provided by (used for) operating activities: | ' | ' | ' | ' | ' |
Net income (loss) | $98,976 | ($371,108) | ($504,848) | ($434,769) | $447,023 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ' | ' | ' | ' | ' |
Depreciation | ' | ' | ' | ' | 4,383 |
Other changes in operating assets and liabilities: | ' | ' | ' | ' | ' |
Trade accounts receivable | -432,920 | -4,834 | -230,219 | -19,302 | -1,320,606 |
Other receivables and prepayment | -2,029,504 | 4,040 | -965,660 | -159 | -5,434 |
Inventory | 1,165,444 | ' | -65,427 | -348 | -654 |
Accounts payable | -1,540,327 | -76,594 | -184,386 | 35,211 | 287,739 |
Other payables and accrued expenses | 38,429 | 576,255 | 1,703,601 | 62,301 | 607,714 |
Net cash provided by (used for) operating activities | -2,625,307 | 214,776 | 301,190 | -689,782 | 20,165 |
Cash flows provided by (used for) investing activities: | ' | ' | ' | ' | ' |
Acquisition of plant and equipment | ' | -1,158 | -13,192 | -44,328 | -848 |
Net cash provided by (used for) investing activities | 2,365 | -1,158 | -13,192 | -44,328 | -848 |
Net cash provided by (used for) financing activities | 2,272,026 | ' | 37,500 | 213,000 | ' |
Effect of exchange rate changes on cash | 7,056 | -3,677 | 7,469 | 4,641 | 1,000 |
Net Change in Cash and Cash Equivalents | -343,860 | 209,941 | 332,967 | -516,469 | 20,317 |
Cash and Cash Equivalents at Beginning of Year | 431,707 | 98,739 | 98,739 | 615,208 | 40,132 |
Cash and Cash Equivalents at End of Year | 87,847 | 308,680 | 431,707 | 98,739 | 60,449 |
Supplemental disclosure of cash flow information: | ' | ' | ' | ' | ' |
Interest received | ' | ' | ' | ' | ' |
Interest paid | $31,636 | ' | ' | ' | ' |