Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Apr. 11, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | XcelMobility Inc. | ||
Entity Central Index Key | 1,465,509 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 1,893,932 | ||
Trading Symbol | XCLL | ||
Entity Common Stock, Shares Outstanding | 660,553,090 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 37,774 | $ 159,628 |
Trade accounts receivable | 20,363 | 40,144 |
Other receivables, net of 0 and 3,592 allowance for doubtful accounts | 0 | 95,412 |
Inventory | 60,935 | 357 |
Prepaid VAT | 9,670 | 0 |
Total Current Assets | 128,742 | 295,541 |
Property and equipment, net of accumulated depreciation of $127,902 and $119,328, respectively | 68,670 | 49,226 |
TOTAL ASSETS | 197,412 | 344,767 |
Current liabilities: | ||
Amount due to a director | 599,318 | 0 |
Other payables and accrued expenses | 984,242 | 510,762 |
Other taxes payable | 4,909 | 9,254 |
Deferred revenue | 0 | 19,135 |
Convertible notes, net of debt discount | 101 | 48,875 |
Derivative liability | 279,071 | 693,303 |
Accrued interest | 188,987 | 5,223 |
Deferred tax liability | 0 | 0 |
Total Current Liabilities | 2,056,628 | 1,286,552 |
Convertible notes, net of debt discount | 993,505 | 974,142 |
Accrued interest | 881 | 330,426 |
Total Liabilities | $ 3,051,014 | $ 2,591,120 |
Commitments and Contingencies (Note 10) | ||
Shareholders’ (Deficit) Equity: | ||
Preferred stock, $0.001 par value, 20,000,000 shares authorized; 10,000,000 and 0 shares issued and outstanding December 31, 2015 and 2014 respectively | $ 10,000 | $ 0 |
Common stock, Value, Issued | 568,583 | 207,415 |
Shares unissued | 486,500 | 1,049,000 |
Additional paid in capital | 1,938,503 | 1,810,965 |
Accumulated deficit | (6,229,903) | (5,264,385) |
Accumulated other comprehensive income (loss) | 372,715 | (49,348) |
Total Shareholders’ (Deficit) Equity | (2,853,602) | (2,246,353) |
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT | $ 197,412 | $ 344,767 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Other receivables, allowance for doubtful accounts | $ 0 | $ 3,592 |
Property and equipment, accumulated depreciation | $ 127,902 | $ 119,328 |
Preferred stock, par value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 10,000,000 | 0 |
Preferred stock, shares outstanding | 10,000,000 | 0 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 800,000,000 | 400,000,000 |
Common stock, shares issued | 568,582,680 | 207,414,781 |
Common Stock, shares outstanding | 568,582,680 | 207,414,781 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS [Abstract] | ||
Revenue | $ 384,520 | $ 171,452 |
Cost of Revenue | 6,556 | 5,550 |
Gross Profit | 377,964 | 165,902 |
Operating Expenses: | ||
Selling expense | 211,522 | 24,226 |
General and administrative expense | 1,266,177 | 1,889,077 |
Total Operating Expenses | 1,477,699 | 1,913,303 |
Loss from Operations | (1,099,735) | (1,747,401) |
Other Income (Expense): | ||
Interest income | 250 | 137 |
Interest expense | (40,000) | (46,452) |
Amortisation of debt discount | (329,545) | (335,250) |
Gain (loss) on derivative | 414,230 | (373,850) |
Other income | 89,282 | 2,657 |
Other expenses | 0 | (624) |
Total Other Income (Expense) | 134,217 | (753,382) |
Loss Before Taxes | (965,518) | (2,500,783) |
Income tax expense | 0 | 0 |
Loss from continuing operation | (965,518) | (2,500,783) |
Discontinued Operation: | ||
Income from discontinued operation | 0 | 739,181 |
Loss on disposal of interest in subsidiary | 0 | (1,790,285) |
Net income (loss) from discontinued operation | 0 | (1,051,104) |
Net loss | (965,518) | (3,551,887) |
Foreign currency translation adjustment | 422,063 | 100,248 |
Comprehensive loss | $ (543,455) | $ (3,451,639) |
Basic and diluted loss per share: | ||
Continuing Operation | $ (0.00189) | $ (0.0239) |
Discontinued Operation | 0 | (0.0100) |
Earnings Per Share, Basic and Diluted | $ (0.00189) | $ (0.0339) |
Basic and diluted weighted average number of shares outstanding | 287,008,887 | 104,626,234 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) | Total | Common Stock [Member] | Preferred Stock [Member] | Shares Subscribed But Unissued [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
Balance at Dec. 31, 2013 | $ 1,024,654 | $ 73,128 | $ 0 | $ 2,100,000 | $ 713,620 | $ (1,712,498) | $ (149,596) |
Balance (in shares) at Dec. 31, 2013 | 73,127,686 | ||||||
Stock issued for debt settlement | 674,014 | $ 106,142 | 0 | 0 | 567,872 | 0 | 0 |
Stock issued for debt settlement (in shares) | 106,141,766 | ||||||
Stock based compensation | 1,275,000 | $ 10,000 | 0 | 1,000,000 | 265,000 | 0 | 0 |
Stock based compensation (in shares) | 10,000,000 | ||||||
Convertible notes exercised | 282,618 | $ 18,145 | 0 | 0 | 264,473 | 0 | 0 |
Convertible notes exercised (in shares) | 18,145,329 | ||||||
Disposal of subsidiary | (2,051,000) | $ 0 | 0 | (2,051,000) | 0 | 0 | 0 |
Net loss for the year | (3,551,887) | 0 | 0 | 0 | 0 | (3,551,887) | 0 |
Foreign currency translation difference | 100,248 | 0 | 0 | 0 | 0 | 0 | 100,248 |
Balance at Dec. 31, 2014 | $ (2,246,353) | $ 207,415 | 0 | 1,049,000 | 1,810,965 | (5,264,385) | (49,348) |
Balance (in shares) at Dec. 31, 2014 | 207,414,781 | 207,414,781 | |||||
Stock issued | $ 10,000 | 10,000 | |||||
Stock issued for debt settlement | 50,000 | $ 40,000 | 0 | 0 | 10,000 | 0 | 0 |
Stock issued for debt settlement (in shares) | 40,000,000 | ||||||
Convertible notes exercised | 438,706 | $ 321,168 | 0 | 0 | 117,538 | 0 | 0 |
Convertible notes exercised (in shares) | 321,167,899 | ||||||
Disposal of subsidiary | (562,500) | $ 0 | 0 | (562,500) | 0 | 0 | 0 |
Net loss for the year | (965,518) | 0 | 0 | 0 | 0 | (965,518) | 0 |
Foreign currency translation difference | 422,063 | 0 | 0 | 0 | 0 | 0 | 422,063 |
Balance at Dec. 31, 2015 | $ (2,853,602) | $ 568,583 | $ 10,000 | $ 486,500 | $ 1,938,503 | $ (6,229,903) | $ 372,715 |
Balance (in shares) at Dec. 31, 2015 | 568,582,680 | 568,582,680 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (965,518) | $ (3,551,887) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 8,574 | 23,331 |
Stock compensation expenses | 0 | 1,275,000 |
Amortisation of debt discount | 329,545 | 335,250 |
Fair value adjustment on derivative liability | (414,232) | 335,250 |
Loss on disposal of interests in a subsidiary | 0 | 1,790,285 |
Changes in assets and liabilities: | ||
Trade accounts receivable | 19,782 | (648,779) |
Other receivables and prepayment | 95,412 | 525,911 |
Inventory | (60,578) | 1,299,186 |
Accounts payable | (145,781) | (1,552,754) |
Accrued interest | 0 | 182,772 |
Other taxes payable | (4,760) | 8,935 |
Other payables and accrued expenses | 1,063,544 | (736,787) |
Deferred revenue | (19,135) | (88) |
Net Cash Provided By (Used In) Operating Activities | (93,147) | (675,775) |
Cash Flows from Investing Activities: | ||
Purchase of property, plant and equipment, net of value added tax refunds received | (28,018) | (1,070) |
Net Cash ( Used In) Provided By Investing Activities | (28,018) | (1,070) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of notes payable | 19,363 | 340,442 |
Net Cash Provided By Financing Activities | 19,363 | 340,442 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (20,052) | 64,324 |
Net Change in Cash and Cash Equivalents | (121,854) | (272,079) |
Cash and Cash Equivalents at Beginning of Year | 159,628 | 431,707 |
Cash and Cash Equivalents at End of Year | 37,774 | 159,628 |
Supplement Cash Flow Information | ||
Cash paid during the period for interest | 0 | 0 |
Cash paid during the period for income taxes | $ 0 | $ 0 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Nature of Business [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization and Nature of Business 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. Share Cancellation On August 11, 2011, Moses Carlo Supera Paez, a director and shareholder of the Company, surrendered 17,700,000 7,350,000 22,950,000 29,700,000 60,000,000 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 1,000 1 560 440 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 $ 2,000,000 400,000 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 10,000,000 346,000 2,526,000 5 100 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. On September 22, 2014, XcelMobility Inc. entered into an Asset Purchase Agreement with CC Power, Xianjiang Silvercreek Digital Technology Co., Ltd. (“Silvercreek”) and the shareholders of Silvercreek (the “Selling Shareholders”). Pursuant to the terms of the Agreement, CC Power will acquire certain assets of Silvercreek relating to its online sports lottery business unit in exchange for the issuance of up to 80,000,000 10,000,000 10,000 10,000,000 3,000,000 10,000,000 20,000,000 40,000,000 10,000,000 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 30,300,000 100 50.5 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. 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 RMB 3,000,000 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. Pursuant to the terms and conditions of the Agreement, the Company will issue an aggregate of 27,000,000 3,000,000 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 On October 1, 2014, we entered into a Settlement Agreement, Waiver and Mutual Release with Jifu. Pursuant to the Release, the parties cancelled the Stock Purchase Agreement. We have completely transferred back the ownership of shares of Jifu to Jifu Shareholders without any further disputation and mutual accountability. In exchange, we have agreed to deliver 1,000,000 The organizational structure of the Company before disposal of Jifu is as follows: The organizational structure of the Company after disposal of Jifu is as follows: |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Summary of Significant Accounting Policies 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. 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. CC Power 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). 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. Loan Agreement. Under the Loan Agreement, CC Investment agreed to lend RMB 10,000,000 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)). 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)). Accordingly, the Company’s condensed consolidated financial statements reflect the results of operations, assets and liabilities of CC Power. December 31, December 31, 2014 2014 Total current assets $ 1,825,197 $ 188,942 Total assets 1,422,400 236,166 Total current liabilities 1,316,298 801,511 Total liabilities 1,316,298 801,511 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. 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. 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 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. 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 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)). On October 1, 2014, we entered into a Settlement Agreement, Waiver and Mutual Release with Jifu. Pursuant to the Release, the parties cancelled the Stock Purchase Agreement. We have completely transferred bac k the ownership of shares of Jifu to Jifu Shareholders without any further disputation and mutual accountability. In exchange, we have agreed to deliver 1,000,000 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, 2015, 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. 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) 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 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 Revenue Recognition-Multiple Element Arrangements Revenue Recognition for Lottery Revenue Commission income is recognized when the lottery ticket is sold through its online system. Other service income is recognized when the service is provided. 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 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 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 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. 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 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. 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 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, 2015 and 2014, no allowance for doubtful accounts was deemed necessary based on management’s assessment. 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. 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 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 Web Browser Software 2010SR001089 National Copyright Administration of PRC 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 3,808 236,368 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 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. 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. December 31, 2015 Balance sheet RMB 6.4904 Statement of operations and other comprehensive loss RMB 6.2175 December 31, 2014 Balance sheet RMB 6.1384 Statement of operations and other comprehensive loss RMB 6.1438 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. The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2015-01 “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items”. The objective is to reduce the cost and complexity of income statement presentation by eliminating the concept of extraordinary items while maintaining or improving the usefulness of the information provided to the users of financial statements. The extraordinary items must meet two criteria: unusual nature and infrequency of occurrence. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either. This amendment will be effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The Board decided to permit early adoption provided that the guidance is applied from the beginning of the fiscal year of adoption. The FASB has issued ASU No. 2015-03 “Simplifying the Presentation of Debt Issuance Costs”. The objective is to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. For public business entities, the amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Early adoption of the amendments in this update is permitted for financial statements that have not been previously issued. The FASB has issued ASU No. 2015-05 “Intangibles-Goodwill and Other-Internal-Use Software”. The objective is to provide a guidance about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendment will not change GAAP for a customer accounting for service contracts. In addition, the guidance in this update supersedes paragraph 350-40-25-16. Consequently, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. For public business entities, the FASB decided that the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. For all other entities, the amendment will be effective for annual periods beginning after December 15, 2015, and interim periods in annual periods beginning after December 15, 2016. Early adoption is permitted for all entities. Recently Issued Accounting Pronouncements The FASB has issued ASU No. 2015-07 “Topic 820, Fair Value Measurement”, which permits a reporting entity, as a practical expedient, to measure the fair value of certain investments using the net asset value per share of the investment. The amendments in this update remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments in this update apply to reporting entities that elect to measure the fair value of an investment within the related scope by using the net asset value per share (or its equivalent) practical expedient. The FASB has issued No. 2015-10 “Technical Corrections and Improvements”, which aims to address feedback received from stakeholders on the Codification and make improvements to GAAP. The amendments in this update represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Some of the amendments will make the Codification easier to understand and apply by eliminating inconsistencies, providing needed clarifications, and improving the presentation of guidance in the Codification. The amendments in this update will apply to all reporting entities within the scope of the affected accounting guidance. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The FASB has issued No. 2015-11“Topic 330, Inventory”, which aims to simplify the measurement of inventory by changing the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of this Update. The amendments in this update do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of this Update at the lower of cost and net realizable value. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The FASB has issued No. 2015-14“Topic 606, Revenue from Contracts with Customers”, which aims to respond to stakeholders’ requests to defer the effective date of the guidance in Update 2014-09 and to consider feedback received through extensive outreach with preparers, practitioners, and users of financial statements. The amendments in this update defer the effective date of Update 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The FASB has issued No. 2015-15“Subtopic 835-30, Interest - Imputation of Interest”: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting. This amendment adds SEC paragraphs pursuant to the SEC Staff Announcement on June 18, 2015, Emerging Issues Task Force meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. Recently Issued Accounting Pronouncements The FASB has issued No. 2015-16“Topic 805, Business Combinations”: Simplifying the Accounting for Measurement-Period Adjustments, which aims to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The amendments in this Update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result |
Going Concern
Going Concern | 12 Months Ended |
Dec. 31, 2015 | |
Going Concern [Abstract] | |
Going Concern Disclosure [Text Block] | 3. Going Concern The Company has incurred significant continuing losses during the years ended December 31, 2015 and 2014, and has accumulated deficits at December 31, 2015 and 2014. 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 December 31, 2015 and 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. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment, net [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and Equipment, net Property and equipment, net consist of the following: December 31, December 31, 2015 2014 Equipment $ 148,305 $ 120,287 Office equipment 39,633 39,633 Leasehold improvements 8,634 8,634 Software - - 196,572 168,554 Less: Accumulated depreciation (127,902) (119,328) Property and equipment, net $ 68,670 $ 49,226 The depreciation expense was $ 8,574 16,332 |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Revenue [Abstract] | |
Deferred Revenue Disclosure [Text Block] | 5. 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). In addition, deferred revenue includes two government grants for use in research and development related expenditures. 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 December 31, 2014 and 2013 is as follow: December 31, December 31, 2015 2014 Deferred revenue: Current $ - $ 19,135 Non-current - - Total $ - $ 19,135 The table below sets forth the deferred revenue activities during the years ended December 31, 2015 and 2014: For the years ended December 31, 2015 2014 Deferred revenue, balance at beginning of year $ - $ 19,223 Less: government grant earned during the year - - Less: Revenue earned during the year - - Foreign exchange difference - (88) Deferred revenue, balance at end of year $ - $ 19,135 |
Convertible Promissory Notes
Convertible Promissory Notes | 12 Months Ended |
Dec. 31, 2015 | |
Convertible Promissory Notes [Abstract] | |
Long-term Debt [Text Block] | 6. Convertible Promissory Notes Interest Convertible December December Maturity Loan Rate Number of 31, 31, Lender Date of Note Date Amount (p.a.) stock 2014 2014 Vantage Associates SA April 15, 2011 April 15, 2016 $ 150,000 5 % 600,000 $ 150,000 $ 150,000 Empa Trading Ltd. June 5, 2011 June 5, 2016 100,000 5 % 400,000 100,000 100,000 First Capital A.G. July 14, 2011 July 14, 2016 150,000 5 % 600,000 150,000 150,000 First Capital A.G. September 9, 2011 September 9, 2016 200,000 5 % 800,000 200,000 200,000 Vantage Associates SA September 9, 2011 September 9, 2016 200,000 5 % 800,000 200,000 200,000 Vantage Associates SA October 27, 2011 October 27, 2016 50,000 5 % 200,000 50,000 50,000 First Capital A.G. December 1, 2011 December 1, 2016 50,000 5 % 200,000 50,000 50,000 First Capital A.G. January 23, 2012 January 23, 2017 50 000 5 % 200,000 50,000 50,000 First Capital A.G. April 25, 2012 April 25,2014 100,000 5 % - - - Hanover Holdings I, LLC May 30, 2014 May 30, 2016 350,000 8 % 120,682,412 350,000 350,000 KBM Worldwide, Inc. August 14, 2014 August 21, 2015 110,000 8 % 9,300,584 - 110,000 KBM Worldwide, Inc. November 17, 2014 November 17, 2015 61,000 8 % 10,639,076 - 61,000 Vis Vires Group Inc. June 1, 2015 June 3, 2016 48,000 8 % 50,732,143 48,000 - $ 1,348,000 $ 1,471,000 Less: Debt discount from beneficial conversion feature 354,394 447,983 993,606 1,023,017 Less: Current portion 101 48,875 Non-current portion $ 993,505 $ 974,142 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, 2015 and 2014 were $ 40,000 46,452 Amortization of the beneficial conversion feature for the year ended December 31, 2015 and 2014 were $ 329,545 373,850 Except for the convertible promissory note of $ 100,000 350,000 110,000 61,000 (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 (ii) one warrant that is convertible into one common share at a price of $ 1.00 (iii) one warrant that is convertible into one common share at a price of $ 1.5 (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. (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. Convertible promissory note of $100,000 issued to First Capital A.G. on April 25, 2012 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. (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. (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. Convertible promissory note of $ 350,000 On May 30, 2014, or the Closing Date, we entered into a securities purchase agreement dated as of the Closing Date (the “Purchase Agreement”) with Hanover Holdings I, LLC, a New York limited liability company (“Hanover”). Pursuant to the terms of the Purchase Agreement, Hanover purchased from us on the Closing Date (i) a senior convertible note with an initial principal amount of $350,000 (the “Convertible Note”) and (ii) a warrant to acquire up 3,716,091 250,000 28.57 We have the right at any time to redeem all, but not less than all, of the total outstanding amount then remaining under the Convertible Note in cash at a price equal to 135% of the total amount of such Convertible Note then outstanding. If at any time after the Closing Date, (i) the closing bid price of our common stock is equal to or greater than 140% of the Exercise Price for a period of 30 consecutive trading days (the “Measuring Period”), (ii) no Equity Conditions Failure (as defined in the Warrant) shall have occurred, and (iii) the aggregate dollar trading volume of the Common Stock for each trading day during the Measuring Period exceeds $3,000 per day, then we shall have the right to require Hanover to exercise all, or any part, of the Warrant (up to the Maximum Forced Exercise Amount (defined below)) (the “Forced Exercise”) at the then applicable Exercise Price. We will not be permitted to effect a Forced Exercise if, after giving effect to such Forced Exercise, we have received more than $150,000 in cash, in the aggregate, from one or more exercises of the Warrant. “Maximum Forced Exercise Amount” means, as of any given date, the lesser of (x) the number of shares of our common stock issuable upon exercise of the Warrant as of such given date and (y) 500% of the average trading volume (as reported on Bloomberg) of our common stock on our principal market on each of the 10 consecutive trading days ending and including the trading day immediately prior to such given date. The Note will completely convert on first quarter 2016. Convertible promissory notes of $110,000 and $61,000 issued to KBM Worldwide, Inc. on August 14, 2014 and November 17, 2014 On August 14, 2014 and November 17, 2014, we and KBM Worldwide, Inc. (“KBM”) completed a financing pursuant to which the Company issued Convertible Promissory Notes in the original principal amounts of $110,000 and $61,000 respectively (the “Notes”). The Notes bear 8% interest and is due on August 21, 2015 and November 17, 2015 respectively. The Notes become convertible 180 days after the date of the Note. The principal amounts of the Notes and any accrued interest can then be converted into shares of the Company’s common stock at a rate of 75% multiplied by the market price, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. Convertible promissory notes of $48,000 issued to Vis Vires Group Inc. on June 1, 2015 On June 1, 2015, we and Vis Vires Group Inc. (“Vis Vires”) completed a financing pursuant to which the Company issued Convertible Promissory Notes in the original principal amounts of $ 48,000 8 The Notes become convertible 180 days after the date of the Note. The principal amounts of the Notes and any accrued interest can then be converted into shares of the Company’s common stock at a rate of 70% multiplied by the market price, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Note will cancel on first quarter 2016. The fair value of the embedded conversion feature of these notes as at December 31, 2015 and 2014 was $ 279,071 693,303 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 1 3 0 246.8 0.25 0.67 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. Fair Value on a Recurring Basis Fair Value Measurements at December 31, 2015 Quoted Prices In Significant Active Markets Other Significant Total Carrying for Observable Unobservable Value as of Identical Assets Inputs Inputs December 31, Descriptions (Level 1) (Level 2) (Level 3) 2015 Derivative warrant instruments - - 279,071 279,071 Total - - 279,071 279,071 |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax [Abstract] | |
Income Tax Disclosure [Text Block] | 7. Income Tax 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 25 CC Mobility is incorporated in Hong Kong and is subjected to Hong Kong corporate income tax at 16.5 The Company has no income tax expense for the years ended December 31, 2015 and 2014 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. December 31, December 31, 2015 2014 Deferred tax assets: Net operating losses - U.S. $ 440,250 $ 2,319,834 Net operating losses - PRC and Hong Kong 525,268 276,836 - Deferred revenue 965,518 2,596,670 Valuation allowance (965,518) (2,596,670) Deferred tax assets, net $ $ - As of December 31, 2015, the Company has net operating losses carry forward of $ 529,530 525,270 358,632 The Company did not recognize any interest or penalties related to unrecognized tax benefits for the years ended December 31, 2015 and 2014. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefits [Abstract] | |
Employee Benefits [Text Block] | 8. 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 $ 40,061 17,669 |
(Loss) earnings per Share
(Loss) earnings per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings (loss) per share [Abstract] | |
Earnings Per Share [Text Block] | 9. (Loss) earnings per Share For The Years Ended December 31, 2015 2014 Loss from continuing operations-basic $ (965,518) $ (2,500,783) Interest expense on convertible notes 40,000 46,452 Loss from continuing operations diluted $ (925,518) $ (2,454,331) (Loss) income from discontinued operations - (1,051,104) Weighted average outstanding shares of common stock basic 287,008,887 104,626,234 Effect of dilutive securities convertible notes - - Weighted average outstanding shares of common stock diluted 287,008,887 104,626,234 Profit (loss) per share from continuing operations $ (0.00189) $ (0.0239) Profit (loss) per share from discontinued operations - (0.0100) Profit (loss) per share basic and diluted $ (0.00189) $ (0.0339) For the fiscal years ended December 31, 2015 and 2014, there are 0 potentially dilutive common shares because the Company recorded net losses in 2015 and 2014. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 10. Commitments and Contingencies 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: 2016 $ 117,420 Thereafter - Total minimum payment $ 117,420 The Company incurred rental expenses of $ 117,417 38,944 |
Concentrations, Risks, and Unce
Concentrations, Risks, and Uncertainties | 12 Months Ended |
Dec. 31, 2015 | |
Concentrations, Risks, and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 11. Concentrations, Risks, and Uncertainties Customer Concentrations 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 December 31, 2015 2014 Customer A 55 % 36 % Customer B 23 % 34 % Customer C 10 % 20 % 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 | 12 Months Ended |
Dec. 31, 2015 | |
Operating Risk [Abstract] | |
Operating Risk Disclosure [Text Block] | 12. 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 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 Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 13. Related Party Transactions As of December 31, 2015, the appointment of Mr. Zhixiong Wei as director rendered a loans amount $599,318 became loans from director. The $599,318 did bear of interest at 15%, have no collateral and be repayable on demand. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 14. Subsequent Events The Company has evaluated all other subsequent events through April 14, 2016, the date these consolidated financial statements were issued, and determined that there were no other subsequent events or transactions that require recognition or disclosures in the financial statements. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and have been consistently applied. The functional currency is the Chinese Renminbi, however the accompanying condensed consolidated financial statements have been translated and presented in United States Dollars ($). All significant inter-company balances and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | 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. 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. |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entity CC Power 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). 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. Loan Agreement. Under the Loan Agreement, CC Investment agreed to lend RMB 10,000,000 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)). 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)). Accordingly, the Company’s condensed consolidated financial statements reflect the results of operations, assets and liabilities of CC Power. December 31, December 31, 2014 2014 Total current assets $ 1,825,197 $ 188,942 Total assets 1,422,400 236,166 Total current liabilities 1,316,298 801,511 Total liabilities 1,316,298 801,511 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. 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. 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 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. 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 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)). On October 1, 2014, we entered into a Settlement Agreement, Waiver and Mutual Release with Jifu. Pursuant to the Release, the parties cancelled the Stock Purchase Agreement. We have completely transferred bac k the ownership of shares of Jifu to Jifu Shareholders without any further disputation and mutual accountability. In exchange, we have agreed to deliver 1,000,000 |
Revenue Recognition, Policy [Policy Text Block] | 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, 2015, 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. 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) 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 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 Revenue Recognition-Multiple Element Arrangements Revenue Recognition for Lottery Revenue Commission income is recognized when the lottery ticket is sold through its online system. Other service income is recognized when the service is provided. |
Cost of Sales, Policy [Policy Text Block] | 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. |
Economic Political Risks [Policy Text Block] | 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 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. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | 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. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment Equipment 5 years Office equipment 5 years Leasehold improvements Over the lease terms 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. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | 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. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | 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. 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. |
Inventory, Policy [Policy Text Block] | 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. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | 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 December 31, 2015 and 2014, no allowance for doubtful accounts was deemed necessary based on management’s assessment. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | 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. 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 [Policy Text Block] | 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. Patent Register Number Issued By 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 Web Browser Software 2010SR001089 National Copyright Administration of PRC |
Research, Development, and Computer Software, Policy [Policy Text Block] | 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 3,808 236,368 |
Comprehensive Income, Policy [Policy Text Block] | 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. |
Income Tax, Policy [Policy Text Block] | 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. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | 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. December 31, 2015 Balance sheet RMB 6.4904 Statement of operations and other comprehensive loss RMB 6.2175 December 31, 2014 Balance sheet RMB 6.1384 Statement of operations and other comprehensive loss RMB 6.1438 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. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2015-01 “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items”. The objective is to reduce the cost and complexity of income statement presentation by eliminating the concept of extraordinary items while maintaining or improving the usefulness of the information provided to the users of financial statements. The extraordinary items must meet two criteria: unusual nature and infrequency of occurrence. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either. This amendment will be effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The Board decided to permit early adoption provided that the guidance is applied from the beginning of the fiscal year of adoption. The FASB has issued ASU No. 2015-03 “Simplifying the Presentation of Debt Issuance Costs”. The objective is to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. For public business entities, the amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Early adoption of the amendments in this update is permitted for financial statements that have not been previously issued. The FASB has issued ASU No. 2015-05 “Intangibles-Goodwill and Other-Internal-Use Software”. The objective is to provide a guidance about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendment will not change GAAP for a customer accounting for service contracts. In addition, the guidance in this update supersedes paragraph 350-40-25-16. Consequently, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. For public business entities, the FASB decided that the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. For all other entities, the amendment will be effective for annual periods beginning after December 15, 2015, and interim periods in annual periods beginning after December 15, 2016. Early adoption is permitted for all entities. Recently Issued Accounting Pronouncements The FASB has issued ASU No. 2015-07 “Topic 820, Fair Value Measurement”, which permits a reporting entity, as a practical expedient, to measure the fair value of certain investments using the net asset value per share of the investment. The amendments in this update remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments in this update apply to reporting entities that elect to measure the fair value of an investment within the related scope by using the net asset value per share (or its equivalent) practical expedient. The FASB has issued No. 2015-10 “Technical Corrections and Improvements”, which aims to address feedback received from stakeholders on the Codification and make improvements to GAAP. The amendments in this update represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Some of the amendments will make the Codification easier to understand and apply by eliminating inconsistencies, providing needed clarifications, and improving the presentation of guidance in the Codification. The amendments in this update will apply to all reporting entities within the scope of the affected accounting guidance. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The FASB has issued No. 2015-11“Topic 330, Inventory”, which aims to simplify the measurement of inventory by changing the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of this Update. The amendments in this update do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of this Update at the lower of cost and net realizable value. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The FASB has issued No. 2015-14“Topic 606, Revenue from Contracts with Customers”, which aims to respond to stakeholders’ requests to defer the effective date of the guidance in Update 2014-09 and to consider feedback received through extensive outreach with preparers, practitioners, and users of financial statements. The amendments in this update defer the effective date of Update 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The FASB has issued No. 2015-15“Subtopic 835-30, Interest - Imputation of Interest”: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting. This amendment adds SEC paragraphs pursuant to the SEC Staff Announcement on June 18, 2015, Emerging Issues Task Force meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. Recently Issued Accounting Pronouncements The FASB has issued No. 2015-16“Topic 805, Business Combinations”: Simplifying the Accounting for Measurement-Period Adjustments, which aims to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The amendments in this Update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The FASB has issued No. 2015-17“Topic 740, Income Taxes”: Balance Sheet Classification of Deferred Taxes, which aims to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this update apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Update. The amendments in this update will align the presentation of deferred income tax assets and liabilities with International Financial Reporting Standards (IFRS). For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |
Summary Of Property Plant And Equipment Useful Life [Table Text Block] | 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 Office equipment 5 years Leasehold improvements Over the lease terms Software 5 years |
Schedule Of Foreign Currency Exchange Rates [Table Text Block] | The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the financial statements were as follows: December 31, 2015 Balance sheet RMB 6.4904 Statement of operations and other comprehensive loss RMB 6.2175 December 31, 2014 Balance sheet RMB 6.1384 Statement of operations and other comprehensive loss RMB 6.1438 |
Cc Power [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities [Table Text Block] | 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, 2014 2014 Total current assets $ 1,825,197 $ 188,942 Total assets 1,422,400 236,166 Total current liabilities 1,316,298 801,511 Total liabilities 1,316,298 801,511 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment, net [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment, net consist of the following: December 31, December 31, 2015 2014 Equipment $ 148,305 $ 120,287 Office equipment 39,633 39,633 Leasehold improvements 8,634 8,634 Software - - 196,572 168,554 Less: Accumulated depreciation (127,902) (119,328) Property and equipment, net $ 68,670 $ 49,226 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Revenue [Abstract] | |
Schedule of Deferred Revenue [Table Text Block] | Deferred revenue included on the balance sheets as of December 31, 2014 and 2013 is as follow: December 31, December 31, 2015 2014 Deferred revenue: Current $ - $ 19,135 Non-current - - Total $ - $ 19,135 |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | The table below sets forth the deferred revenue activities during the years ended December 31, 2015 and 2014: For the years ended December 31, 2015 2014 Deferred revenue, balance at beginning of year $ - $ 19,223 Less: government grant earned during the year - - Less: Revenue earned during the year - - Foreign exchange difference - (88) Deferred revenue, balance at end of year $ - $ 19,135 |
Convertible Promissory Notes (T
Convertible Promissory Notes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Convertible Promissory Notes [Abstract] | |
Convertible Debt [Table Text Block] | Outstanding balances for the four convertible promissory notes as of December 31, 2015 and 2014 are as follow: Interest Convertible December December Maturity Loan Rate Number of 31, 31, Lender Date of Note Date Amount (p.a.) stock 2014 2014 Vantage Associates SA April 15, 2011 April 15, 2016 $ 150,000 5 % 600,000 $ 150,000 $ 150,000 Empa Trading Ltd. June 5, 2011 June 5, 2016 100,000 5 % 400,000 100,000 100,000 First Capital A.G. July 14, 2011 July 14, 2016 150,000 5 % 600,000 150,000 150,000 First Capital A.G. September 9, 2011 September 9, 2016 200,000 5 % 800,000 200,000 200,000 Vantage Associates SA September 9, 2011 September 9, 2016 200,000 5 % 800,000 200,000 200,000 Vantage Associates SA October 27, 2011 October 27, 2016 50,000 5 % 200,000 50,000 50,000 First Capital A.G. December 1, 2011 December 1, 2016 50,000 5 % 200,000 50,000 50,000 First Capital A.G. January 23, 2012 January 23, 2017 50 000 5 % 200,000 50,000 50,000 First Capital A.G. April 25, 2012 April 25,2014 100,000 5 % - - - Hanover Holdings I, LLC May 30, 2014 May 30, 2016 350,000 8 % 120,682,412 350,000 350,000 KBM Worldwide, Inc. August 14, 2014 August 21, 2015 110,000 8 % 9,300,584 - 110,000 KBM Worldwide, Inc. November 17, 2014 November 17, 2015 61,000 8 % 10,639,076 - 61,000 Vis Vires Group Inc. June 1, 2015 June 3, 2016 48,000 8 % 50,732,143 48,000 - $ 1,348,000 $ 1,471,000 Less: Debt discount from beneficial conversion feature 354,394 447,983 993,606 1,023,017 Less: Current portion 101 48,875 Non-current portion $ 993,505 $ 974,142 |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | 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, 2015: Fair Value Measurements at December 31, 2015 Quoted Prices In Significant Active Markets Other Significant Total Carrying for Observable Unobservable Value as of Identical Assets Inputs Inputs December 31, Descriptions (Level 1) (Level 2) (Level 3) 2015 Derivative warrant instruments - - 279,071 279,071 Total - - 279,071 279,071 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, December 31, 2015 2014 Deferred tax assets: Net operating losses - U.S. $ 440,250 $ 2,319,834 Net operating losses - PRC and Hong Kong 525,268 276,836 - Deferred revenue 965,518 2,596,670 Valuation allowance (965,518) (2,596,670) Deferred tax assets, net $ $ - |
(Loss) earnings per Share (Tabl
(Loss) earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings (loss) per share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For The Years Ended December 31, 2015 2014 Loss from continuing operations-basic $ (965,518) $ (2,500,783) Interest expense on convertible notes 40,000 46,452 Loss from continuing operations diluted $ (925,518) $ (2,454,331) (Loss) income from discontinued operations - (1,051,104) Weighted average outstanding shares of common stock basic 287,008,887 104,626,234 Effect of dilutive securities convertible notes - - Weighted average outstanding shares of common stock diluted 287,008,887 104,626,234 Profit (loss) per share from continuing operations $ (0.00189) $ (0.0239) Profit (loss) per share from discontinued operations - (0.0100) Profit (loss) per share basic and diluted $ (0.00189) $ (0.0339) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 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: 2016 $ 117,420 Thereafter - Total minimum payment $ 117,420 |
Concentrations, Risks, and Un29
Concentrations, Risks, and Uncertainties (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Concentrations, Risks, and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | 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 December 31, 2015 2014 Customer A 55 % 36 % Customer B 23 % 34 % Customer C 10 % 20 % |
Organization and Nature of Bu30
Organization and Nature of Business (Details Textual) | Oct. 01, 2014shares | Dec. 31, 2015CNY (¥)shares | Mar. 31, 2015CNY (¥)shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014CNY (¥)shares | Dec. 31, 2013USD ($) | Dec. 31, 2011shares | Dec. 31, 2015HKDHKD / sharesshares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2014CNY (¥)shares | Sep. 01, 2011shares | Aug. 30, 2011shares | Aug. 11, 2011shares | Mar. 31, 2011 |
Business Acquisition [Line Items] | |||||||||||||||
Common Stock, Shares, Issued | 568,582,680 | 568,582,680 | 568,582,680 | 207,414,781 | 207,414,781 | 60,000,000 | 29,700,000 | ||||||||
Common Stock, Shares, Outstanding | 568,582,680 | 568,582,680 | 568,582,680 | 207,414,781 | 207,414,781 | 60,000,000 | |||||||||
Common Stock, Shares Authorized | 800,000,000 | 800,000,000 | 800,000,000 | 400,000,000 | 400,000,000 | ||||||||||
Common Stock, Par Value Per Share | $ / shares | $ 0.001 | $ 0.001 | |||||||||||||
Paez [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Stock Cancelled During Period Shares | 7,350,000 | 17,700,000 | |||||||||||||
Brodeth [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Stock Cancelled During Period Shares | 22,950,000 | ||||||||||||||
Cc Mobility Limited [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Common Stock, Shares Authorized | 10,000 | 10,000 | 10,000 | ||||||||||||
Registered Capital | HKD | HKD 1,000 | ||||||||||||||
Common Stock, Par Value Per Share | HKD / shares | HKD 1 | ||||||||||||||
Cc Mobility Limited [Member] | Cc Wireless Limited [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Common Stock, Shares, Issued | 560 | 560 | 560 | ||||||||||||
Cc Mobility Limited [Member] | Sheen Ventures Limited [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Common Stock, Shares, Issued | 440 | 440 | 440 | ||||||||||||
Cc Investment [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Registered Capital | $ | $ 2,000,000 | ||||||||||||||
Contributed Capital | $ | 400,000 | ||||||||||||||
Cc Power [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Registered Capital | $ 1,547,000 | ¥ 10,000,000 | |||||||||||||
Contributed Capital | $ 346,000 | ¥ 2,526,000 | |||||||||||||
Cc Power [Member] | Mr. Ryan Ge [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | ||||||||||||||
Cc Power [Member] | Ms. Xili Wang [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% | 100.00% | ||||||||||||
Cc Mobility [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 30,300,000 | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||||||||||
Business Acquisition Percentage Of Voting Interests Sold | 50.50% | ||||||||||||||
Cc Power And Jifu [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 27,000,000 | ||||||||||||||
Business Acquisition Net Revenue Requirement | $ | $ 4,000,000 | ||||||||||||||
Business Acquisition Equity Interests Issued Or Issuable Number Of New Shares Issued | 3,000,000 | ||||||||||||||
Xianjiang Silvercreek Digital Technology Co., Ltd. [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 80,000,000 | ||||||||||||||
Jifu [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business Disposal Equity Interest Issued Or Issuable Number Of New Shares Issued | 1,000,000 | ||||||||||||||
Registered Capital | ¥ | ¥ 3,000,000 | ||||||||||||||
Contingent Consideration For Revenue Target 1 [Member] | Xianjiang Silvercreek Digital Technology Co., Ltd. [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 10,000,000 | ||||||||||||||
Target Monthly Revenue | ¥ | ¥ 10,000 | ||||||||||||||
Contingent Consideration For Revenue Target 2 [Member] | Xianjiang Silvercreek Digital Technology Co., Ltd. [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 10,000,000 | ||||||||||||||
Target Monthly Revenue | ¥ | ¥ 3,000,000 | ||||||||||||||
Contingent Consideration For Revenue Target 3 [Member] | Xianjiang Silvercreek Digital Technology Co., Ltd. [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 10,000,000 | ||||||||||||||
Target Monthly Revenue | ¥ | ¥ 20,000,000 | ||||||||||||||
Contingent Consideration For Government Licensing [Member] | Xianjiang Silvercreek Digital Technology Co., Ltd. [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 40,000,000 | ||||||||||||||
Contingent Consideration For Other Targets [Member] | Xianjiang Silvercreek Digital Technology Co., Ltd. [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 10,000,000 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Loan agreement | ||
Total current assets | $ 128,742 | $ 295,541 |
Total assets | 197,412 | 344,767 |
Total current liabilities | 2,056,628 | 1,286,552 |
Total liabilities | 3,051,014 | 2,591,120 |
CC Power [Member] | ||
Loan agreement | ||
Total current assets | 1,825,197 | 188,942 |
Total assets | 1,422,400 | 236,166 |
Total current liabilities | 1,316,298 | 801,511 |
Total liabilities | $ 1,316,298 | $ 801,511 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Details 1) | 12 Months Ended |
Dec. 31, 2015 | |
Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | Over the lease terms |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Balance sheet exchange rates used to translate amounts in RMB into USD | 6.4904 | 6.1384 |
Statement of income and other comprehensive income exchange rates used to translate amounts in RMB into USD | 6.2175 | 6.1438 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Details Textual) | Oct. 01, 2014shares | May. 07, 2013CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) |
Research and Development Expense | $ | $ 3,808 | $ 236,368 | |||
Cc Power [Member] | |||||
Loan agreement | ¥ 10,000,000 | ||||
Jifu [Member] | |||||
Business Disposal Equity Interest Issued Or Issuable Number Of New Shares Issued | shares | 1,000,000 | ||||
Loan agreement | ¥ 3,000,000 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 196,572 | $ 168,554 |
Less: Accumulated depreciation | (127,902) | (119,328) |
Property and equipment, net | 68,670 | 49,226 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 148,305 | 120,287 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 39,633 | 39,633 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,634 | 8,634 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 0 | $ 0 |
Property and Equipment, net (36
Property and Equipment, net (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 8,574 | $ 16,332 |
Deferred Revenue (Details)
Deferred Revenue (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred revenue: | |||
Current | $ 0 | $ 19,135 | |
Non-current | 0 | 0 | |
Total | $ 0 | $ 19,135 | $ 19,223 |
Deferred Revenue (Details 1)
Deferred Revenue (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, balance at beginning of period | $ 19,135 | $ 19,223 |
Exchange rate difference | 0 | (88) |
Deferred revenue, balance at end of period | 0 | 19,135 |
Government Research And Development Arrangements [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Revenue earned during the period | 0 | 0 |
Multiple Element Arrangements [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Revenue earned during the period | $ 0 | $ 0 |
Convertible Promissory Notes (D
Convertible Promissory Notes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Convertible debt | $ 1,348,000 | $ 1,471,000 |
Less: Debt discount from beneficial conversion feature | 354,394 | 447,983 |
Convertible debt, net of discount | 993,606 | 1,023,017 |
Less: Current portion | 101 | 48,875 |
Non-current portion | $ 993,505 | 974,142 |
Vantage Associates SA Note One [Member] | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Date of Note | Apr. 15, 2011 | |
Maturity Date | Apr. 15, 2016 | |
Loan Amount | $ 150,000 | |
Interest Rate (p.a.) | 5.00% | |
Convertible Number of stock | 600,000 | |
Convertible debt | $ 150,000 | 150,000 |
Empa Trading Ltd. [Member] | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Date of Note | Jun. 5, 2011 | |
Maturity Date | Jun. 5, 2016 | |
Loan Amount | $ 100,000 | |
Interest Rate (p.a.) | 5.00% | |
Convertible Number of stock | 400,000 | |
Convertible debt | $ 100,000 | 100,000 |
First Capital A.G. Note One [Member] | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Date of Note | Jul. 14, 2011 | |
Maturity Date | Jul. 14, 2016 | |
Loan Amount | $ 150,000 | |
Interest Rate (p.a.) | 5.00% | |
Convertible Number of stock | 600,000 | |
Convertible debt | $ 150,000 | 150,000 |
First Capital A.G. Note Two [Member] | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Date of Note | Sep. 9, 2011 | |
Maturity Date | Sep. 9, 2016 | |
Loan Amount | $ 200,000 | |
Interest Rate (p.a.) | 5.00% | |
Convertible Number of stock | 800,000 | |
Convertible debt | $ 200,000 | 200,000 |
Vantage Associates SA Note Two [Member] | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Date of Note | Sep. 9, 2011 | |
Maturity Date | Sep. 9, 2016 | |
Loan Amount | $ 200,000 | |
Interest Rate (p.a.) | 5.00% | |
Convertible Number of stock | 800,000 | |
Convertible debt | $ 200,000 | 200,000 |
Vantage Associates SA Note Three [Member] | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Date of Note | Oct. 27, 2011 | |
Maturity Date | Oct. 27, 2016 | |
Loan Amount | $ 50,000 | |
Interest Rate (p.a.) | 5.00% | |
Convertible Number of stock | 200,000 | |
Convertible debt | $ 50,000 | 50,000 |
First Capital A.G. Note Three [Member] | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Date of Note | Dec. 1, 2011 | |
Maturity Date | Dec. 1, 2016 | |
Loan Amount | $ 50,000 | |
Interest Rate (p.a.) | 5.00% | |
Convertible Number of stock | 200,000 | |
Convertible debt | $ 50,000 | 50,000 |
First Capital A.G. Note Four [Member] | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Date of Note | Jan. 23, 2012 | |
Maturity Date | Jan. 23, 2017 | |
Loan Amount | $ 50,000 | |
Interest Rate (p.a.) | 5.00% | |
Convertible Number of stock | 200,000 | |
Convertible debt | $ 50,000 | 50,000 |
First Capital A.G. Note Five [Member] | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Date of Note | Apr. 25, 2012 | |
Maturity Date | Apr. 25, 2014 | |
Loan Amount | $ 100,000 | |
Interest Rate (p.a.) | 5.00% | |
Convertible Number of stock | 0 | |
Convertible debt | $ 0 | 0 |
Hanover Holdings I, LLC | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Date of Note | May 30, 2014 | |
Maturity Date | May 30, 2016 | |
Loan Amount | $ 350,000 | 350,000 |
Interest Rate (p.a.) | 8.00% | |
Convertible Number of stock | 120,682,412 | |
Convertible debt | $ 350,000 | 350,000 |
KBM Worldwide, Inc. Note One [Member] | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Date of Note | Aug. 14, 2014 | |
Maturity Date | Aug. 21, 2015 | |
Loan Amount | $ 110,000 | 110,000 |
Interest Rate (p.a.) | 8.00% | |
Convertible Number of stock | 9,300,584 | |
Convertible debt | $ 0 | 110,000 |
KBM Worldwide, Inc. Note Two [Member] | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Date of Note | Nov. 17, 2014 | |
Maturity Date | Nov. 17, 2015 | |
Loan Amount | $ 61,000 | |
Interest Rate (p.a.) | 8.00% | |
Convertible Number of stock | 10,639,076 | |
Convertible debt | $ 0 | 61,000 |
Vis Vires Group Inc. [Member] | Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Date of Note | Jun. 1, 2015 | |
Maturity Date | Jun. 3, 2016 | |
Loan Amount | $ 48,000 | |
Interest Rate (p.a.) | 8.00% | |
Convertible Number of stock | 50,732,143 | |
Convertible debt | $ 48,000 | $ 0 |
Convertible Promissory Notes 40
Convertible Promissory Notes (Details 1) | Dec. 31, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liabilities, fair value disclosure | $ 279,071 |
Warrant [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liabilities, fair value disclosure | 279,071 |
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 | 0 |
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 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liabilities, fair value disclosure | 0 |
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 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liabilities, fair value disclosure | 279,071 |
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 | $ 279,071 |
Convertible Promissory Notes 41
Convertible Promissory Notes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Amortization of Debt Discount (Premium) | $ 329,545 | $ 335,250 |
ConvertibleDebt [Member] | ||
Debt Instrument [Line Items] | ||
Interest Expense, Debt | 40,000 | 46,452 |
Amortization of Debt Discount (Premium) | $ 329,545 | 373,850 |
Debt conversion, price per share | $ 0.5 | |
Debt Instrument, Convertible, Beneficial Conversion Feature | $ 279,071 | 693,303 |
Fair Value Assumptions, Expected Dividend Rate | 0.00% | |
Fair Value Assumptions, Expected Volatility Rate | 246.80% | |
ConvertibleDebt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Fair Value Assumptions, Expected Term | 1 year | |
Fair Value Assumptions, Risk Free Interest Rate | 0.25% | |
ConvertibleDebt [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Fair Value Assumptions, Expected Term | 3 years | |
Fair Value Assumptions, Risk Free Interest Rate | 0.67% | |
ConvertibleDebt [Member] | Expires Two Years From Date Of Exchange [Member] | ||
Debt Instrument [Line Items] | ||
Warrant exercise price | 1 | |
ConvertibleDebt [Member] | Expires Three Years From Date Of Exchange [Member] | ||
Debt Instrument [Line Items] | ||
Warrant exercise price | 1.5 | |
ConvertibleDebt [Member] | First Capital A.G. Note Five [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Face Amount | $ 100,000 | |
ConvertibleDebt [Member] | Hanover Holdings I, LLC | ||
Debt Instrument [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 250,000 | |
Debt Instrument Extinguishment Feature Description | $40,000 of the outstanding principal amount of the Convertible Note (together with any accrued and unpaid interest with respect to such portion of the principal amount) shall be automatically extinguished (without any cash payment by us) if (i) we have properly filed a registration statement with the Securities and Exchange Commission, or SEC, on or prior to July 14, 2014, or the Filing Deadline, covering the resale by Hanover of the shares of common Stock issued or issuable upon conversion of the Convertible Note and (ii) no event of default or an event that with the passage of time or giving of notice would constitute an event of default has occurred on or prior to such date. Moreover, $60,000 of the outstanding principal amount of the Convertible Note (together with any accrued and unpaid interest with respect to such portion of the principal amount) shall be automatically extinguished (without any cash payment by us) if (i) the registration statement has been declared effective by the SEC on or prior to the earlier of (i) the 120th calendar day after the Closing Date and (ii) the fifth business day after the date we are notified by the SEC that such registration statement will not be reviewed or will not be subject to further review (the Effectiveness Deadline), and the prospectus contained therein is available for use by Hanover for the resale by Hanover of the shares of common stock issued or issuable upon conversion of the Convertible Note and (ii) no event of default or an event that with the passage of time or giving of notice would constitute an event of default has occurred on or prior to such date. | |
Debt Instrument, Convertible, Terms of Conversion Feature | The Convertible Note matures on May 30, 2016 (subject to extension as provided in the Convertible Note) and, in addition to the approximately 28.57% original issue discount, accrues interest at the rate of 8.0% per annum. The Convertible Note is convertible at any time, in whole or in part, at Hanovers option into shares of our common stock, par value $0.001 per share at a conversion price equal to the lesser of (i) the product of (x) the arithmetic average of the lowest three (3) trade prices of our common stock during the 10 consecutive trading days ending and including the trading day immediately preceding the applicable conversion date and (y) 65%, and (ii) $0.12 (as adjusted for stock splits, stock dividends, stock combinations or other similar transactions). The Warrant entitles Hanover to purchase up to 3,716,091 shares of our common stock (the Share Amount) at any time for a period of one year from the Closing Date at an exercise price equal to the lesser of (i) the product of (x) the arithmetic average of the lowest three (3) VWAPs of the common stock during preceding ten (10) consecutive trading days and (y) sixty-five percent (65%), and (B) $0.12 (as adjusted for any stock split, stock dividend, stock combination or other similar transaction) (the Exercise Price). The Warrant may only be exercised for cash and we have the right to accept or decline any exercise of the Warrant by Hanover. If at any time the Share Amount is less than the quotient of $150,000 and the Exercise Price (the Required Share Amount), then the number of shares issuable upon exercise of the warrant shall automatically be increased by such number of shares equal to the difference of the Required Share Amount less the Share Amount. | |
Debt Instrument Convertible Terms Of Warrant Exercise | At no time will Hanover be entitled to convert any portion of the Convertible Note or exercise any portion of the Warrant to the extent that after such conversion or exercise, Hanover (together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of our common stock as of such date (the Maximum Percentage). The Maximum Percentage may be raised to any other percentage not in excess of 9.99% at the option of Hanover upon at least 61 days prior notice to us, or lowered to any other percentage, at the option of Hanover, at any time. | |
Debt Instrument, Redemption, Description | The Convertible Note includes customary event of default provisions. Upon the occurrence of an event of default, Hanover may require us to pay in cash the greater of (i) the product of (A) the amount to be redeemed multiplied by (B) 135% (or 100% if an insolvency related event of default) and (ii) the product of (X) the conversion price in effect at that time multiplied by (Y) the product of (1) 135% (or 100% if an insolvency related event of default) multiplied by (2) the greatest closing sale price of our common stock on any trading day during the period commencing on the date immediately preceding such event of default and ending on the date we make the entire payment required to be made under this provision. We have the right at any time to redeem all, but not less than all, of the total outstanding amount then remaining under the Convertible Note in cash at a price equal to 135% of the total amount of such Convertible Note then outstanding. If at any time after the Closing Date, (i) the closing bid price of our common stock is equal to or greater than 140% of the Exercise Price for a period of 30 consecutive trading days (the Measuring Period), (ii) no Equity Conditions Failure (as defined in the Warrant) shall have occurred, and (iii) the aggregate dollar trading volume of the Common Stock for each trading day during the Measuring Period exceeds $3,000 per day, then we shall have the right to require Hanover to exercise all, or any part, of the Warrant (up to the Maximum Forced Exercise Amount (defined below)) (the Forced Exercise) at the then applicable Exercise Price. We will not be permitted to effect a Forced Exercise if, after giving effect to such Forced Exercise, we have received more than $150,000 in cash, in the aggregate, from one or more exercises of the Warrant. Maximum Forced Exercise Amount means, as of any given date, the lesser of (x) the number of shares of our common stock issuable upon exercise of the Warrant as of such given date and (y) 500% of the average trading volume (as reported on Bloomberg) of our common stock on our principal market on each of the 10 consecutive trading days ending and including the trading day immediately prior to such given date. | |
Debt Instrument Face Amount | $ 350,000 | 350,000 |
Warrant exercise price | 3,716,091 | |
Fair Value Inputs, Discount Rate | 28.57% | |
ConvertibleDebt [Member] | KBM Worldwide, Inc. Note One [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Convertible, Terms of Conversion Feature | On August 14, 2014 and November 17, 2014, we and KBM Worldwide, Inc. (KBM) completed a financing pursuant to which the Company issued Convertible Promissory Notes in the original principal amounts of $110,000 and $61,000 respectively (the Notes). The Notes bear 8% interest and is due on August 21, 2015 and November 17, 2015 respectively. The Notes become convertible 180 days after the date of the Note. The principal amounts of the Notes and any accrued interest can then be converted into shares of the Companys common stock at a rate of 75% multiplied by the market price, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. | |
Debt Instrument Face Amount | $ 110,000 | $ 110,000 |
ConvertibleDebt [Member] | KBM Worldwide, Inc. Note Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Convertible, Terms of Conversion Feature | On August 14, 2014 and November 17, 2014, we and KBM Worldwide, Inc. (KBM) completed a financing pursuant to which the Company issued Convertible Promissory Notes in the original principal amounts of $110,000 and $61,000 respectively (the Notes). The Notes bear 8% interest and is due on August 21, 2015 and November 17, 2015 respectively. The Notes become convertible 180 days after the date of the Note. The principal amounts of the Notes and any accrued interest can then be converted into shares of the Companys common stock at a rate of 75% multiplied by the market price, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. | |
Debt Instrument Face Amount | $ 61,000 | |
ConvertibleDebt [Member] | Vis Vires Group Inc. [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Convertible, Terms of Conversion Feature | The Notes become convertible 180 days after the date of the Note. The principal amounts of the Notes and any accrued interest can then be converted into shares of the Companys common stock at a rate of 70% multiplied by the market price, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Note will cancel on first quarter 2016. | |
Debt Instrument Face Amount | $ 48,000 | |
Debt Instrument, Interest Rate, Effective Percentage | 8.00% |
Income Tax (Details)
Income Tax (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating losses - U.S. | $ 440,250 | $ 2,319,834 |
Net operating losses - PRC and Hong Kong | 525,268 | 276,836 |
Deferred revenue | 965,518 | 2,596,670 |
Valuation allowance | (965,518) | (2,596,670) |
Deferred tax assets, net | $ 0 | $ 0 |
Income Tax (Details Textual)
Income Tax (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Examination [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 965,518 | $ 2,596,670 |
PRC [Member] | ||
Income Tax Examination [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% |
Operating Loss Carryforwards | $ 525,270 | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2016 | |
Hong Kong [Member] | ||
Income Tax Examination [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% | |
Operating Loss Carryforwards | $ 525,270 | |
United States [Member] | ||
Income Tax Examination [Line Items] | ||
Operating Loss Carryforwards | $ 529,530 | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2030 | |
Deferred Tax Assets, Valuation Allowance | $ 358,632 |
Employee Benefits (Details Text
Employee Benefits (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension and Other Postretirement Benefit Expense | $ 40,061 | $ 17,669 |
(Loss) earnings per Share (Deta
(Loss) earnings per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loss from continuing operations-basic | $ (965,518) | $ (2,500,783) |
Interest expense on convertible notes | 40,000 | 46,452 |
Loss from continuing operations - diluted | (925,518) | (2,454,331) |
(Loss) income from discontinued operations | $ 0 | $ (1,051,104) |
Weighted average outstanding shares of common stock - basic | 287,008,887 | 104,626,234 |
Effect of dilutive securities - convertible notes | 0 | 0 |
Weighted average outstanding shares of common stock - diluted | 287,008,887 | 104,626,234 |
Profit (loss) per share - from continuing operations | $ (0.00189) | $ (0.0239) |
Profit (loss) per share - from discontinued operations | 0 | (0.0100) |
Profit (loss) per share - basic and dliuted | $ (0.00189) | $ (0.0339) |
(Loss) earnings per Share (De46
(Loss) earnings per Share (Details Textual) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted Average Number Diluted Shares Outstanding Adjustment, Total | 0 | 0 |
Commitments and Contingencies47
Commitments and Contingencies (Details) | Dec. 31, 2015USD ($) |
2,016 | $ 117,420 |
Thereafter | 0 |
Total minimum payment | $ 117,420 |
Commitments and Contingencies48
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leases, Rent Expense | $ 117,417 | $ 38,944 |
Concentrations, Risks, and Un49
Concentrations, Risks, and Uncertainties (Details) - Customer Concentration Risk [Member] - Sales [Member] | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 55.00% | 36.00% |
Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 23.00% | 34.00% |
Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 10.00% | 20.00% |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - Director [Member] | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Notes Payable, Related Parties | $ 599,318 |
Related Party Transaction, Rate | 15.00% |