Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 15, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Takung Art Co., Ltd. | |
Entity Central Index Key | 1,491,487 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | TKAT | |
Entity Common Stock, Shares Outstanding | 11,119,276 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 4,094,609 | $ 10,769,456 |
Restricted cash | 25,676,516 | 16,195,289 |
Short-term investments, held to maturity | 9,780,466 | 0 |
Deposits | 87,496 | 70,194 |
Accounts receivables, net | 736,376 | 184,537 |
Prepayment and other current assets | 822,734 | 1,172,405 |
Due from director | 0 | 502 |
Total current assets | 41,198,197 | 28,392,383 |
NON-CURRENT ASSETS | ||
Property and equipment, net | 1,849,163 | 1,213,255 |
Intangible assets, net | 20,531 | 22,194 |
Deferred tax assets | 110,185 | 0 |
Other non-current assets | 196,199 | 121,381 |
Total non-current assets | 2,176,078 | 1,356,830 |
TOTAL ASSETS | 43,374,275 | 29,749,213 |
CURRENT LIABILITIES | ||
Accrued expenses and other payables | 1,345,310 | 667,622 |
Customer deposits | 25,676,516 | 16,195,289 |
Advance from customers | 260,353 | 0 |
Tax payables | 1,873,906 | 1,564,370 |
Total current liabilities | 29,156,085 | 18,427,281 |
NON-CURRENT LIABILITIES | ||
Deferred tax liabilities | 60,476 | 45,037 |
Total non-current liabilities | 60,476 | 45,037 |
TOTAL LIABILITIES | 29,216,561 | 18,472,318 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock, 1,000,000,000 shares authorized; $0.001 par value; 11,119,276 shares issued and outstanding as of June 30, 2016 and December 31, 2015 | 11,119 | 11,119 |
Additional paid-in capital | 5,124,991 | 4,465,217 |
Retained earnings | 9,014,872 | 6,801,977 |
Accumulated other comprehensive income (loss) | 6,732 | (1,418) |
Total stockholders' equity | 14,157,714 | 11,276,895 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 43,374,275 | $ 29,749,213 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 11,119,276 | 11,119,276 |
Common stock, shares outstanding | 11,119,276 | 11,119,276 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue | ||||
Listing fee revenue | $ 3,002,474 | $ 606,143 | $ 5,197,538 | $ 1,109,776 |
Commission revenue | 926,789 | 301,382 | 2,070,260 | 1,027,990 |
Gross management fee revenue | 431,584 | 28,436 | 560,075 | 71,785 |
Annual fee revenue | 268 | 140 | 429 | 1,429 |
Authorized agent subscription revenue | 322,158 | 0 | 643,741 | 0 |
Total revenue | 4,683,273 | 936,101 | 8,472,043 | 2,210,980 |
Cost of revenue | (275,416) | (200,120) | (537,483) | (377,812) |
Gross profit | 4,407,857 | 735,981 | 7,934,560 | 1,833,168 |
Operating expenses: | ||||
General and administrative expenses | (1,770,351) | (601,186) | (3,331,724) | (1,067,679) |
Selling expenses | (703,366) | (48,343) | (1,341,575) | (57,799) |
Income from operations | 1,934,140 | 86,452 | 3,261,261 | 707,690 |
Other income and expenses: | ||||
Other income | 99,887 | 454 | 150,530 | 454 |
Exchange gain or loss | (538,006) | 0 | (418,550) | 29 |
Total other (loss) income | (438,119) | 454 | (268,020) | 483 |
Income before provision for income taxes | 1,496,021 | 86,906 | 2,993,241 | 708,173 |
Provision for income taxes | 379,178 | 9,730 | 780,346 | 136,902 |
Net income | 1,116,843 | 77,176 | 2,212,895 | 571,271 |
Foreign currency translation adjustment | (3,934) | 984 | 8,150 | 620 |
Comprehensive income | $ 1,112,909 | $ 78,160 | $ 2,221,045 | $ 571,891 |
Earnings per common share- basic | $ 0.11 | $ 0.01 | $ 0.21 | $ 0.06 |
Earnings per common share- diluted | $ 0.10 | $ 0.01 | $ 0.20 | $ 0.06 |
Weighted average number of common shares outstanding-basic | 10,632,276 | 9,332,267 | 10,632,276 | 9,332,267 |
Weighted average number of common shares outstanding-diluted | 11,311,385 | 9,332,267 | 11,232,989 | 9,332,267 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 2,212,895 | $ 571,271 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 239,700 | 156,940 |
Amortization | 1,663 | 0 |
Changes in exchange rate | 539,986 | 0 |
Stock-based compensation | 659,774 | 0 |
Changes in operating assets and liabilities: | ||
Deposits | 104,079 | (116,498) |
Prepayment and other current assets | 349,671 | (15,762) |
Other non-current assets | (196,199) | 0 |
Account receivables | (551,839) | 0 |
Due from director | 502 | (7,033) |
Customer deposits | 9,481,227 | 17,789 |
Deferred tax assets | (49,709) | 0 |
Deferred tax liabilities | (45,037) | (9,310) |
Restricted cash | (9,481,227) | (17,789) |
Tax payables | 309,536 | 146,238 |
Advance from customers | 260,353 | 0 |
Accrued expenses and other payables | 259,138 | (1,139,853) |
Net cash provided by (used in) operating activities | 4,094,513 | (414,007) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (884,555) | (236,448) |
Purchase of held-to-maturity investments | (9,780,466) | 0 |
Net cash used in investing activities | (10,665,021) | (236,448) |
Cash flows from financing activities: | ||
Proceeds from subscription receivables | 0 | 515,876 |
Net cash provided by financing activities | 0 | 515,876 |
Effect of exchange rate change on cash and cash equivalents | (104,339) | 618 |
NET (DECREASE) IN CASH AND CASH EQUIVALENTS | (6,674,847) | (133,961) |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 10,769,456 | 2,355,839 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 4,094,609 | 2,221,878 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITY | ||
Cash paid during the period for income taxes | 563,021 | 0 |
Cash paid during the period for interest expense | $ 0 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Takung Art Co., Ltd.(the “Company” or “Takung Art”), a Delaware corporation (formerly Cardigant Medical Inc.) through HongKong Takung Assets and Equity of Artworks Exchange Co., Ltd. (“Takung”), a Hong Kong company and our wholly owned subsidiary, operates an electronic online platform located at www.takungae.com for artists, art dealers and art investors to offer and trade in valuable artwork. HongKong Takung Assets & Equity of Artworks Exchange Co., Ltd. (“Takung”) was incorporated in Hong Kong on September 17, 2012 Takung (Shanghai) Co., Ltd (“Takung Shanghai”) is a limited liability company, with a registered capital of $ 1 Takung Shanghai July 28, 2015 Takung Cultural Development (Tianjin) Co., Ltd (“Tianjin Takung”) is a limited liability company, with a registered capital of $ 1 January 27, 2016 Tianjin Takung provides technology development services to Takung and Takung Shanghai, and also carries out marketing and promotion activities in mainland China. REVERSE MERGER On October 20, 2014, Cardigant Medical Inc. (or “Cardigant”) acquired all the issued and outstanding shares of Takung, a privately held Hong Kong corporation, pursuant to the Share Exchange Agreement and Takung became the wholly owned subsidiary of Cardigant in a reverse merger, or the Merger. Pursuant to the Merger, all of the issued and outstanding shares of Takung common stock were converted, at an exchange ratio of 10.4988 8,399,040 209,976,000 933,227 23,330,662 Under accounting principles generally accepted in the United States, (“U.S. GAAP”) because Takung’s former stockholders received the greater portion of the voting rights in the combined entity and Takung’s senior management represents all of the senior management of the combined entity, the Merger was accounted for as a recapitalization effected by a share exchange, wherein Takung is considered the acquirer for accounting and financial reporting purposes. The assets and liabilities of Takung have been brought forward at their book value and no goodwill has been recognized. Accordingly, the assets and liabilities and the historical operations that are reflected in Takung's consolidated financial statements are those of Takung and are recorded at the historical cost basis of Takung. Unless otherwise indicated or the context otherwise requires, references to “the Company” refer to Takung Art Co., Ltd. Disclosures relating to the pre-merger business of Takung, unless noted as being the business of Cardigant prior to the Merger, pertain to the business of Takung prior to the Merger. The Company is currently trading on the OTC market with the ticker “TKAT”. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2015, which has been derived from audited financial statements, and the unaudited interim consolidated financial statements as of June 30, 2016, 2015 and for the three and six months ended June 30, 2016 and 2015 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and disclosures, which are normally included in financial statements prepared in accordance with U.S. GAAP, have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures made are adequate to provide for fair presentation. The interim financial information should be read in conjunction with the Financial Statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, previously filed with the SEC. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of June 30, 2016, its consolidated results of operations and cash flows for the six-month periods ended June 30, 2016 and 2015, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Actual results could differ materially from those results. The consolidated financial statements include the accounts of Takung Art, Co., and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. Reverse stock split On August 10, 2015, the Company’s board of directors and a majority of the Company’s shareholders approved a reverse stock split of its issued and outstanding shares of common stock at a ratio of 1-for-25. Upon filing of the Certificate of Amendment, every twenty-five shares of the Company’s issued and outstanding common stock were automatically converted into one issued and outstanding share of common stock, without any change in par value per share. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the 1-for-25 reverse stock split. Fair Value Measurements The Company applies the provisions of ASC Subtopic 820-10, “Fair Value Measurements”, for fair value measurements of financial assets and financial liabilities and for fair value measurements of non-financial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: · Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. · Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. There were no assets or liabilities measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of June 30, 2016 and December 31, 2015, respectively. Comprehensive Income Recognized revenue, expenses, gains and losses are included in net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the consolidated balance sheet, such items, along with net income or loss, are components of comprehensive income or loss. The components of other comprehensive income or loss are consisted solely of foreign currency translation adjustments, net of the income tax effect. Foreign Currency Translation and Transaction The functional currency of the Company and Takung Shanghai are the Hong Kong Dollar (“HKD”). The functional currency of Tianjin Takung is the Renminbi (“RMB”). The reporting currency of the Company is the United States Dollar (“USD”). Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on re-translation of monetary items at period-end are included in income statement of the period. For the purpose of presenting these financial statements, the Company’s assets and liabilities with functional currency of HKD are expressed in USD at the exchange rates on the balance sheet dates, which are 7.7591 7.7507 7.7671 7.7538 6.6459 6.5352 The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholders’ equity section of the balance sheets. Cash and Cash Equivalents The Company considers highly liquid investments with maturities of three months or less, when purchased, to be cash equivalents. As of June 30, 2016 and December 31, 2015, the Company’s cash and cash equivalents amounted to $ 4,094,609 10,769,456 Restricted Cash Restricted cash represents the cash deposited by the traders (“buyers and sellers”) into a specific bank account under Takung (“the broker’s account”) in order to facilitate the trading ownership units of the artwork. The buyers are required to have their funds transferred to the broker’s account before the trading take place. Upon the delivery of the ownership units, the seller can send instructions to the bank, requesting the amount to be transferred to their personal accounts. After deducting the commission and the management fee as per Takung’s instruction, the bank will transfer the remainder to the seller’s personal account. Except for instructing the bank to deduct the commission and management fee, Takung has no right to manipulate any funds in the broker’s account except the Company statements of intention with regard to particular deposits. The whole process was monitored and approved by a third party accounting firm. Restricted cash amounted to $ 25,676,516 which includes $ 4,514,061 16,195,289 Short-term investments, held-to-maturity investments The Company’s held-to-maturity investments consist of financial products purchased from banks, which are not allowed for the early withdrawal. The Company’s short term held-to-maturity investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. The Company reviews its investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Company considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the cost, and the Company’s intent and ability to hold the investment. OTTI is recognized as a loss in the income statement. Accounts Receivables and Allowance for Doubtful Accounts Accounts receivables are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. The Company makes estimates for the allowance for doubtful accounts based upon our assessment of various factors, including historical, experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, and other factors that may affect customers' ability to pay. A portion of the other assets, such as prepayments and deposits, are presented under the non-current section of the balance sheets based on the nature of the amounts. Property and equipment are stated at cost less accumulated depreciation and impairment losses. Gains or losses on dispositions of property and equipment are included in other income. Major additions, renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred. Depreciation and amortization are provided over the estimated useful lives of the assets using the straight-line method from the time the assets are placed in service. Classification Estimated Furniture, fixtures and equipment 5 years Leasehold improvements Shorter of the remaining lease terms or the estimated 3 years Computer trading and clearing system 5 years Long-lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When these events occur, the Company assesses the recoverability of these long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the future undiscounted cash flow is less than the carrying amount of the assets, the Company recognizes an impairment equal to the difference between the carrying amount and fair value of these assets. No impairments were recorded during the periods ended June 30, 2016 and December 31, 2015, respectively. Intangible Assets Intangible assets represent the licensing cost for our trademark registration. For intangible assets with indefinite lives, the Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company has not recorded impairment of intangible assets as of June 30, 2016 and December 31, 2015. Customer deposits Customer deposits represents the cash deposited by the traders (“buyers and sellers”) into a specific bank account under Takung (“the broker’s account”) in order to facilitate the trading ownership units of the artwork. The buyers are required to have their funds transferred to the broker’s account before the trading take place. Customer deposit was $ 25,676,516 16,195,289 Advance from customers Advance from customers represent trading commissions one month in advance charge to the VIP traders. Starting from April 1, 2016, the Company charges a monthly commission to VIP traders, instead of charging per transaction. Revenue Recognition The Company generates revenue from its services in connection with the offering and trading of artwork on our system, primarily consisting of listing fees, trading commissions, and management fees. We recognize revenue once all of the following criteria have been met: · persuasive evidence of an arrangement exists; · delivery of our obligations to our customer has occurred; · the price is fixed or determinable; and · collectability of the related receivable is reasonably assured Listing fee 22.5 48 3,002,474 606,143 5,197,538 1,109,776 Commission 0.3 0.2 0.4 0.13 1 Commission rebate programs are offered to the traders and service agents. As part of the referral incentive program, the Company would rebate 15 40 60 Commission revenue (net of applicable rebates and discounts) was $ 926,789 301,382 2,070,260 1,027,990 Management fee $0.0013 (HK$0.01) per 100 artwork ownership units per day. 431,584 28,436 560,075 71,785 Annual fee income Authorized agent subscription revenue Cost of Revenue Cost of revenue consists primarily of expenses associated with the delivery the Company’s service. These include expenses related to the operation of data centers, such as facility and lease of the server equipment, development and maintenance of the Company’s platform system, as well as the cost of insurance, storage and transportation of the artworks. Income Taxes The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. There are uncertain tax positions regarding whether the income of Takung should be deemed as the taxable income of Takung Shanghai under the law of the People's Republic of China on Enterprise Income Tax ("EIT") as of June 30, 2016 and December 31, 2015. Such income will be subject to EIT with 25 16.5 The Company currently recognizes such income as taxable income under Hong Kong's Profits Tax rather than taxable income under EIT, and the Company holds that it is more-likely-than-not that this tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The Company did not have any interest and penalties related to uncertain tax positions in our provision for income taxes line of the Company’s consolidated statements of operations for the period ended June 30, 2016 and 2015. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. Earnings per share Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. As of June 30, 2016 and December 31, 2015, respectively, there were options, which would have a dilutive effect on earnings per share. Concentration of Risks Concentration of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, deposits, accounts receivables, prepayment and other current assets. The Company places its cash and cash equivalents, restricted cash and short-term investments with financial institutions with high-credit ratings and quality. Accounts receivables primarily comprise of amounts receivables from the trader customers. With respect to the prepayment to service suppliers, the Company performs on-going credit evaluations of the financial condition of these suppliers. The Company establishes an allowance for doubtful accounts based upon estimates, factors surrounding the credit risk of specific service providers and other information. Concentration of customers There are no revenues from customers that individually represent greater than 10% of the total revenues during the three-month period ended June 30, 2016 and 2015, and also during the six-month period ended June 30, 2016 and 2015. Reclassifications Certain amounts in the 2015 financial statements may have been reclassified to conform to the 2016 presentation. These reclassifications had no effect on previously reported results of operations or retained earnings. Recent Accounting Pronouncements Revenue recognition In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, or ASU 2014-09. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to correlate with the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year, while allowing a company to adopt the new revenue standard early but not before the original effective date. As such, the updated standard will be effective for the Company in the first quarter of 2018, with the option to adopt it in the first quarter of 2017. The Company has evaluated the effect on the Company’s consolidated financial statements and related disclosures and concluded that the adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. Liabilities In February 2015, FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The new consolidation standard changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a VIE, and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The guidance is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2015. Early adoption is allowed, including early adoption in an interim period. A reporting entity may apply a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption or may apply the amendments retrospectively. The Company is currently assessing the impact of the adoption of this guidance on the consolidated financial statements. Financial Instrument In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. Accordingly, the standard is effective for us on September 1, 2018. The Company is currently evaluating the impact that the standard will have on the Company’s consolidated financial statements. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-2”), which provides guidance on lease amendments to the FASB Accounting Standard Codification. This ASU will be effective for us beginning in May 1, 2019. The Company is currently in the process of evaluating the impact of the adoption of ASU 2016-2 on the Company consolidated financial statements. Stock-based Compensation In March 2016, the FASB issued ASU 2016-09, CompensationStock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 changes how companies account for certain aspects of stock-based awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for us in the first quarter of 2018, and earlier adoption is permitted. We are still evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): The amendments in this Update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more decision useful to users of the financial statements. ASU 2016-13 is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is allowed as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the effect that this guidance will have on the Company’s consolidated financial statements and related disclosures. Except for the ASU above, in the period from January 1, 2016 to August 17, 2015, the FASB has issued ASU No. 2016-01 through ASU 2016-13, which are not expected to have a material impact on the consolidated financial statements upon adoption. |
PREPAYMENT AND OTHER CURRENT AS
PREPAYMENT AND OTHER CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets [Text Block] | 3. PREPAYMENT AND OTHER CURRENT ASSETS June 30, December 31, 2016 2015 (Unaudited) Prepayment $ 741,258 $ 1,172,405 Prepaid expense and other receivables 81,476 - Prepayment and other current assets $ 822,734 $ 1,172,405 Prepayment mainly consists of the prepaid service fee for the development and maintenance of online trading system, as well as the advertising and promotional services. |
SHORT TERM INVESTMENTS
SHORT TERM INVESTMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Short-term Investments [Text Block] | 4. SHORT TERM INVESTMENTS Short term investments consist of held-to-maturity investments. Held to maturity investments Held-to-maturity investments consist of various financial products purchased from Bank of China, which are classified as held-to-maturity investments as the Company has the positive intent and ability to hold the investments to maturity. The maturities of these financial products range from thirty to seventy days, with contractual maturity dates from July 14, 2016 August 18, 2016 3.30 3.45 While these financial products are not publicly traded, the Company estimated that their fair value approximate their amortized costs considering their short term maturities and high credit quality. No OTTI loss was recognized for the period ended June 30, 2016 and December 31, 2015. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: June 30, December 31, (Unaudited) Furniture, fixtures and equipment $ 64,300 $ 61,787 Leasehold improvements 153,554 140,955 Computer trading and clearing system 2,488,190 1,628,542 Sub-total 2,706,044 1,831,284 Less: accumulated depreciation (856,881) (618,029) Property and equipment, net $ 1,849,163 $ 1,213,255 Depreciation expense was $ 136,727 82,812 239,700 156,940 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 6. INTANGIBLE ASSETS Intangible assets the Company’s trademarks with indefinite useful life. The intangible asset was $ 20,531 22,194 December 31, |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets, Noncurrent [Abstract] | |
Other Non current Assets Disclosure [Text Block] | 7. OTHER NON-CURRENT ASSETS June 30, December 31, (Unaudited) Prepayment non-current $ 65,830 $ - Deposit non-current 130,369 121,381 Total non-current assets $ 196,199 $ 121,381 |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 8. ACCRUED EXPENSES AND OTHER PAYABLES June 30, December 31, 2016 2015 (Unaudited) Trading and clearing system $ 156,834 $ 76,763 Accruals for promotional services related to trading platform 116,530 - Accruals for professional fees 21,460 75,116 Accruals for consulting fees 290,660 259,244 Accruals for rental 19,580 15,855 Temporary customer deposits 614,999 175,216 Payroll payables 49,085 46,167 Other payables 76,162 19,261 Total accrued expenses, account & other payables $ 1,345,310 $ 667,622 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 9. INCOME TAXES United States of America As of June 30, 2016, the Company in the United States had $ 802,828 The Company believes that it is more likely than not that these net accumulated operating losses will not be utilized in the future. Therefore, the Company has provided full valuation allowance for the deferred tax assets arising from the losses at US. Accordingly, the Company has no net deferred tax assets under the US entity. Hong Kong The provision for current income taxes of the subsidiary operating in Hong Kong has been calculated by applying the current rate of taxation of 16.5 PRC In accordance with the relevant tax laws and regulations of the PRC, a company registered in the PRC is subject to income taxes within the PRC at the applicable tax rate on taxable income. All the PRC subsidiaries that are not entitled to any tax holiday were subject to income taxes at a rate of 25 The income tax expenses were $ 379,178 9,730 780,346 136,902 The income tax provision consists of the following components: For the Three Months Ended For the Six Months Ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Current $ 473,294 $ 31,485 $ 876,927 $ 146,217 Deferred (94,116) (21,755) (96,581) (9,315) TOTAL PROVISION FOR INCOME TAXES $ 379,178 $ 9,730 $ 780,346 $ 136,902 A reconciliation between the Company’s effective tax rate and the expected statutory rate is as follow: For the Three Months Ended For the Six Months Ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Income before income tax expense $ 1,496,021 $ 86,906 $ 2,993,241 $ 708,173 Provision for taxes at respective statutory tax rate 157,118 5,421 261,996 109,238 Tax effect of non-deductible expenses (26,317) (10,477) 21,625 12,878 Changes in valuation allowance 248,377 14,786 496,725 14,786 TOTAL PROVISION FOR INCOME TAXES $ 379,178 $ 9,730 $ 780,346 $ 136,902 The Company's effective tax rate was 25.3 and 11.2 26.1 and 19.3 June 30, December 31, (Unaudited) Deferred tax assets: Net operating losses $ 834,203 $ 306,102 Excess advertising expense 78,811 - Total deferred tax assets 913,014 306,102 Valuation allowance (802,829) (306,102) Deferred tax asset, net of valuation allowance 110,185 - Deferred tax liabilities Property, plant and equipment, principally due to differences in depreciation 60,476 45,037 Deferred tax liability $ 60,476 $ 45,037 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure [Text Block] | 10. COMMITMENTS AND CONTINGENCIES Capital Commitments The Company purchased property and equipment which the payment was due within one year. As of June 30, 2016 and December 31, 2015, the Company has capital commitments of $ 259,570 348,329 Operation Commitments Remaining 2016 $ 301,428 Year ending December 31, 2017 568,501 Year ending December 31, 2018 277,353 Year ending December 31, 2019 85,421 Year ending December 31, 2020 15,047 Year ending December 31, 2021 15,047 Year ending December 31, 2022 and thereafter 52,664 Total $ 1,315,461 Rental expense of the Company was $ 111,987 61,287 228,926 127,186 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 11. EARNINGS PER SHARE For the Three Months Ended For the Six Months Ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Numerator: Net income $ 1,116,843 77,176 $ 2,212,895 571,271 Denominator: Weighted-average shares outstanding Weighted-average shares outstanding - Basic 10,632,276 9,332,267 10,632,276 9,332,267 Stock options 679,109 - 600,713 - Weighted-average shares outstanding - Diluted 11,311,385 9,332,267 11,232,989 9,332,267 Earnings per share -Basic 0.11 0.01 0.21 0.06 -Diluted 0.10 0.01 0.20 0.06 Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. 487,000 487,000 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 12. STOCKHOLDERS’ EQUITY On July 7, 2015, the Board granted 300,000 186,000 On August 10, 2015, the Company filed a Certificate of Amendment to our Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a reverse stock split of our issued and outstanding shares of Common Stock at a ratio of 1-for-25 (the “Reverse Stock Split”). Upon filing of the Certificate of Amendment, every twenty-five shares of the Company’s issued and outstanding Common Stock were automatically converted into one issued and outstanding share of Common Stock, without any change in par value per share. No fractional shares will be issued as a result of the Reverse Stock Split. Stockholders who would otherwise be entitled to receive a fractional share will be entitled to rounding up their fractional shares to the nearest whole number. Prior period consolidated financial statement is adjusted to reflect the impact of the one-for-twenty five reverse stock split. On August 26, 2015, the 2015 Incentive Stock Plan (“2015 Plan”) was approved by the Board of Directors for rewarding the Company’s directors, executives and selected employees and consultants for making major contributions to the success of the Company. 1,037,000 On November 16, 2015, we entered into various subscription agreements with and sold to the selling stockholders a total of 1,000,000 1.58 1,580,000 On November 20, 2015, we entered into a Consulting Agreement with Regeneration for the provision of certain consulting and advisory services, including without limitation, assisting in the preparation of Company financial projections, business plans, executive summaries and website, and recruiting qualified directors and officers. In consideration for providing such services, the Company issued to Regeneration the Compensation Shares which are placed in an escrow account maintained with the Company’s attorneys until either (i) the Company has successfully listed its securities on the NASDAQ or other U.S. securities exchange on or before December 31, 2016, whereupon the Compensation Shares shall be forthwith delivered to Regeneration or (ii) if the Company is unsuccessful in listing its securities on the NASDAQ or other U.S. securities exchange on or before December 31, 2016, the Compensation Shares shall be returned to the Company for cancellation. Regeneration shall be entitled to “piggy-back” registration rights with respect to the Compensation Shares. The Compensation Shares were issued in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act. The stock-based compensation related to this consulting agreement was $ 109,923 494,653 487,000 Stock-based Compensation Plans During the six months ended June 30, 2016, the Company granted an aggregate of 431,525 112,925 50,000 268,600 7,463 50,000 The exercise price of stock options was ranged from $ 2.91 3.65 41,270 7,937 Number of Weighted Weighted Shares Fair Value Term Unvested at December 31, 2015 11,131 $ 3.50 3.91 years Granted 7,463 3.35 Forfeited - - Vested (7,937) 3.50 Unvested at June 30, 2016 10,657 $ 3.43 3.53 years The stock-based compensation recognized is $ 219,038 659,774 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 13. SUBSEQUENT EVENT On July 15, 2016, our Hong Kong subsidiary Takung entered into a loan agreement with Merit Crown Limited, a Hong Kong company to borrow US$ 1.5 8 December 31, 2016 Also on July 15, 2016, our PRC subsidiary Takung Shanghai entered into an interest- free loan agreement to lend an individual, Xiaohui Wang, a national of the People’s Republic of China RMB 10.08 1.5 The US Dollar Loan is to provide Takung with sufficient US Dollar-denominated currency to meet its working capital requirements. It is “secured” by the RMB Loan of equivalent amount by its subsidiary to an individual and guarantor affiliated with the lender of the US Dollar Loan. It is the understanding between the parties that when the US Loan is repaid, the RMB Loan will similarly be repaid. Both parties do not have intention to waive or offset the USD Loan and RMB Loan with each other. |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2015, which has been derived from audited financial statements, and the unaudited interim consolidated financial statements as of June 30, 2016, 2015 and for the three and six months ended June 30, 2016 and 2015 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and disclosures, which are normally included in financial statements prepared in accordance with U.S. GAAP, have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures made are adequate to provide for fair presentation. The interim financial information should be read in conjunction with the Financial Statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, previously filed with the SEC. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of June 30, 2016, its consolidated results of operations and cash flows for the six-month periods ended June 30, 2016 and 2015, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Actual results could differ materially from those results. |
Consolidation, Policy [Policy Text Block] | Principles of consolidation The consolidated financial statements include the accounts of Takung Art, Co., and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. |
Reverse Stock Split [Policy Text Block] | Reverse stock split On August 10, 2015, the Company’s board of directors and a majority of the Company’s shareholders approved a reverse stock split of its issued and outstanding shares of common stock at a ratio of 1-for-25. Upon filing of the Certificate of Amendment, every twenty-five shares of the Company’s issued and outstanding common stock were automatically converted into one issued and outstanding share of common stock, without any change in par value per share. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the 1-for-25 reverse stock split. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements The Company applies the provisions of ASC Subtopic 820-10, “Fair Value Measurements”, for fair value measurements of financial assets and financial liabilities and for fair value measurements of non-financial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: · Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. · Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. There were no assets or liabilities measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of June 30, 2016 and December 31, 2015, respectively. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Recognized revenue, expenses, gains and losses are included in net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the consolidated balance sheet, such items, along with net income or loss, are components of comprehensive income or loss. The components of other comprehensive income or loss are consisted solely of foreign currency translation adjustments, net of the income tax effect. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Transaction The functional currency of the Company and Takung Shanghai are the Hong Kong Dollar (“HKD”). The functional currency of Tianjin Takung is the Renminbi (“RMB”). The reporting currency of the Company is the United States Dollar (“USD”). Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on re-translation of monetary items at period-end are included in income statement of the period. For the purpose of presenting these financial statements, the Company’s assets and liabilities with functional currency of HKD are expressed in USD at the exchange rates on the balance sheet dates, which are 7.7591 7.7507 7.7671 7.7538 6.6459 6.5352 The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholders’ equity section of the balance sheets. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers highly liquid investments with maturities of three months or less, when purchased, to be cash equivalents. As of June 30, 2016 and December 31, 2015, the Company’s cash and cash equivalents amounted to $ 4,094,609 10,769,456 |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash represents the cash deposited by the traders (“buyers and sellers”) into a specific bank account under Takung (“the broker’s account”) in order to facilitate the trading ownership units of the artwork. The buyers are required to have their funds transferred to the broker’s account before the trading take place. Upon the delivery of the ownership units, the seller can send instructions to the bank, requesting the amount to be transferred to their personal accounts. After deducting the commission and the management fee as per Takung’s instruction, the bank will transfer the remainder to the seller’s personal account. Except for instructing the bank to deduct the commission and management fee, Takung has no right to manipulate any funds in the broker’s account except the Company statements of intention with regard to particular deposits. The whole process was monitored and approved by a third party accounting firm. Restricted cash amounted to $ 25,676,516 which includes $ 4,514,061 16,195,289 |
Short-term investment Policy [Policy Text Block] | Short-term investments, held-to-maturity investments The Company’s held-to-maturity investments consist of financial products purchased from banks, which are not allowed for the early withdrawal. The Company’s short term held-to-maturity investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. The Company reviews its investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Company considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the cost, and the Company’s intent and ability to hold the investment. OTTI is recognized as a loss in the income statement. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivables and Allowance for Doubtful Accounts Accounts receivables are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. The Company makes estimates for the allowance for doubtful accounts based upon our assessment of various factors, including historical, experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, and other factors that may affect customers' ability to pay. |
Other Non-current Assets [Policy Text Block] | Other Non-current Assets A portion of the other assets, such as prepayments and deposits, are presented under the non-current section of the balance sheets based on the nature of the amounts. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and impairment losses. Gains or losses on dispositions of property and equipment are included in other income. Major additions, renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred. Depreciation and amortization are provided over the estimated useful lives of the assets using the straight-line method from the time the assets are placed in service. Classification Estimated Furniture, fixtures and equipment 5 years Leasehold improvements Shorter of the remaining lease terms or the estimated 3 years Computer trading and clearing system 5 years |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When these events occur, the Company assesses the recoverability of these long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the future undiscounted cash flow is less than the carrying amount of the assets, the Company recognizes an impairment equal to the difference between the carrying amount and fair value of these assets. No impairments were recorded during the periods ended June 30, 2016 and December 31, 2015, respectively. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible Assets Intangible assets represent the licensing cost for our trademark registration. For intangible assets with indefinite lives, the Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company has not recorded impairment of intangible assets as of June 30, 2016 and December 31, 2015. |
Customer Deposit Policy [Policy Text Block] | Customer deposits Customer deposits represents the cash deposited by the traders (“buyers and sellers”) into a specific bank account under Takung (“the broker’s account”) in order to facilitate the trading ownership units of the artwork. The buyers are required to have their funds transferred to the broker’s account before the trading take place. Customer deposit was $ 25,676,516 16,195,289 |
Advance From Customer [Policy Text Block] | Advance from customers Advance from customers represent trading commissions one month in advance charge to the VIP traders. Starting from April 1, 2016, the Company charges a monthly commission to VIP traders, instead of charging per transaction. |
Revenue Recognition Accounting Policy, Gross and Net Revenue Disclosure [Policy Text Block] | Revenue Recognition The Company generates revenue from its services in connection with the offering and trading of artwork on our system, primarily consisting of listing fees, trading commissions, and management fees. We recognize revenue once all of the following criteria have been met: · persuasive evidence of an arrangement exists; · delivery of our obligations to our customer has occurred; · the price is fixed or determinable; and · collectability of the related receivable is reasonably assured Listing fee 22.5 48 3,002,474 606,143 5,197,538 1,109,776 Commission 0.3 0.2 0.4 0.13 1 Commission rebate programs are offered to the traders and service agents. As part of the referral incentive program, the Company would rebate 15 40 60 Commission revenue (net of applicable rebates and discounts) was $ 926,789 301,382 2,070,260 1,027,990 Management fee $0.0013 (HK$0.01) per 100 artwork ownership units per day. 431,584 28,436 560,075 71,785 Annual fee income Authorized agent subscription revenue |
Cost of Sales, Policy [Policy Text Block] | Cost of Revenue Cost of revenue consists primarily of expenses associated with the delivery the Company’s service. These include expenses related to the operation of data centers, such as facility and lease of the server equipment, development and maintenance of the Company’s platform system, as well as the cost of insurance, storage and transportation of the artworks. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. There are uncertain tax positions regarding whether the income of Takung should be deemed as the taxable income of Takung Shanghai under the law of the People's Republic of China on Enterprise Income Tax ("EIT") as of June 30, 2016 and December 31, 2015. Such income will be subject to EIT with 25 16.5 The Company currently recognizes such income as taxable income under Hong Kong's Profits Tax rather than taxable income under EIT, and the Company holds that it is more-likely-than-not that this tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The Company did not have any interest and penalties related to uncertain tax positions in our provision for income taxes line of the Company’s consolidated statements of operations for the period ended June 30, 2016 and 2015. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per share Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. As of June 30, 2016 and December 31, 2015, respectively, there were options, which would have a dilutive effect on earnings per share. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Risks Concentration of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, deposits, accounts receivables, prepayment and other current assets. The Company places its cash and cash equivalents, restricted cash and short-term investments with financial institutions with high-credit ratings and quality. Accounts receivables primarily comprise of amounts receivables from the trader customers. With respect to the prepayment to service suppliers, the Company performs on-going credit evaluations of the financial condition of these suppliers. The Company establishes an allowance for doubtful accounts based upon estimates, factors surrounding the credit risk of specific service providers and other information. Concentration of customers There are no revenues from customers that individually represent greater than 10% of the total revenues during the three-month period ended June 30, 2016 and 2015, and also during the six-month period ended June 30, 2016 and 2015. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain amounts in the 2015 financial statements may have been reclassified to conform to the 2016 presentation. These reclassifications had no effect on previously reported results of operations or retained earnings. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Revenue recognition In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, or ASU 2014-09. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to correlate with the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year, while allowing a company to adopt the new revenue standard early but not before the original effective date. As such, the updated standard will be effective for the Company in the first quarter of 2018, with the option to adopt it in the first quarter of 2017. The Company has evaluated the effect on the Company’s consolidated financial statements and related disclosures and concluded that the adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. Liabilities In February 2015, FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The new consolidation standard changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a VIE, and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The guidance is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2015. Early adoption is allowed, including early adoption in an interim period. A reporting entity may apply a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption or may apply the amendments retrospectively. The Company is currently assessing the impact of the adoption of this guidance on the consolidated financial statements. Financial Instrument In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. Accordingly, the standard is effective for us on September 1, 2018. The Company is currently evaluating the impact that the standard will have on the Company’s consolidated financial statements. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-2”), which provides guidance on lease amendments to the FASB Accounting Standard Codification. This ASU will be effective for us beginning in May 1, 2019. The Company is currently in the process of evaluating the impact of the adoption of ASU 2016-2 on the Company consolidated financial statements. Stock-based Compensation In March 2016, the FASB issued ASU 2016-09, CompensationStock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 changes how companies account for certain aspects of stock-based awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for us in the first quarter of 2018, and earlier adoption is permitted. We are still evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): The amendments in this Update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more decision useful to users of the financial statements. ASU 2016-13 is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is allowed as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the effect that this guidance will have on the Company’s consolidated financial statements and related disclosures. Except for the ASU above, in the period from January 1, 2016 to August 17, 2015, the FASB has issued ASU No. 2016-01 through ASU 2016-13, which are not expected to have a material impact on the consolidated financial statements upon adoption. |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of an Asset [Table Text Block] | Estimated useful lives are as follows, taking into account the assets' estimated residual value: Classification Estimated Furniture, fixtures and equipment 5 years Leasehold improvements Shorter of the remaining lease terms or the estimated 3 years Computer trading and clearing system 5 years |
PREPAYMENT AND OTHER CURRENT 21
PREPAYMENT AND OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | June 30, December 31, 2016 2015 (Unaudited) Prepayment $ 741,258 $ 1,172,405 Prepaid expense and other receivables 81,476 - Prepayment and other current assets $ 822,734 $ 1,172,405 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | June 30, December 31, (Unaudited) Furniture, fixtures and equipment $ 64,300 $ 61,787 Leasehold improvements 153,554 140,955 Computer trading and clearing system 2,488,190 1,628,542 Sub-total 2,706,044 1,831,284 Less: accumulated depreciation (856,881) (618,029) Property and equipment, net $ 1,849,163 $ 1,213,255 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other non-current assets June 30, December 31, (Unaudited) Prepayment non-current $ 65,830 $ - Deposit non-current 130,369 121,381 Total non-current assets $ 196,199 $ 121,381 |
ACCRUED EXPENSES AND OTHER PA24
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accrued expenses and other payables June 30, December 31, 2016 2015 (Unaudited) Trading and clearing system $ 156,834 $ 76,763 Accruals for promotional services related to trading platform 116,530 - Accruals for professional fees 21,460 75,116 Accruals for consulting fees 290,660 259,244 Accruals for rental 19,580 15,855 Temporary customer deposits 614,999 175,216 Payroll payables 49,085 46,167 Other payables 76,162 19,261 Total accrued expenses, account & other payables $ 1,345,310 $ 667,622 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax provision consists of the following components: For the Three Months Ended For the Six Months Ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Current $ 473,294 $ 31,485 $ 876,927 $ 146,217 Deferred (94,116) (21,755) (96,581) (9,315) TOTAL PROVISION FOR INCOME TAXES $ 379,178 $ 9,730 $ 780,346 $ 136,902 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation between the Company’s effective tax rate and the expected statutory rate is as follow: For the Three Months Ended For the Six Months Ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Income before income tax expense $ 1,496,021 $ 86,906 $ 2,993,241 $ 708,173 Provision for taxes at respective statutory tax rate 157,118 5,421 261,996 109,238 Tax effect of non-deductible expenses (26,317) (10,477) 21,625 12,878 Changes in valuation allowance 248,377 14,786 496,725 14,786 TOTAL PROVISION FOR INCOME TAXES $ 379,178 $ 9,730 $ 780,346 $ 136,902 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The approximate tax effects of temporary differences, which give rise to the deferred tax assets and liabilities, are as follows: June 30, December 31, (Unaudited) Deferred tax assets: Net operating losses $ 834,203 $ 306,102 Excess advertising expense 78,811 - Total deferred tax assets 913,014 306,102 Valuation allowance (802,829) (306,102) Deferred tax asset, net of valuation allowance 110,185 - Deferred tax liabilities Property, plant and equipment, principally due to differences in depreciation 60,476 45,037 Deferred tax liability $ 60,476 $ 45,037 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The total future minimum lease payments under the non-cancellable operating lease with respect to the office and the dormitory, as well as hardware trading platform as of June 30, 2016 are payable as follows: Remaining 2016 $ 301,428 Year ending December 31, 2017 568,501 Year ending December 31, 2018 277,353 Year ending December 31, 2019 85,421 Year ending December 31, 2020 15,047 Year ending December 31, 2021 15,047 Year ending December 31, 2022 and thereafter 52,664 Total $ 1,315,461 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. For the Three Months Ended For the Six Months Ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Numerator: Net income $ 1,116,843 77,176 $ 2,212,895 571,271 Denominator: Weighted-average shares outstanding Weighted-average shares outstanding - Basic 10,632,276 9,332,267 10,632,276 9,332,267 Stock options 679,109 - 600,713 - Weighted-average shares outstanding - Diluted 11,311,385 9,332,267 11,232,989 9,332,267 Earnings per share -Basic 0.11 0.01 0.21 0.06 -Diluted 0.10 0.01 0.20 0.06 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Nonvested Restricted Stock Shares Activity [Table Text Block] | The following table sets forth changes in compensation-related restricted stock awards during six months ended June 30, 2016, and 7,937 Number of Weighted Weighted Shares Fair Value Term Unvested at December 31, 2015 11,131 $ 3.50 3.91 years Granted 7,463 3.35 Forfeited - - Vested (7,937) 3.50 Unvested at June 30, 2016 10,657 $ 3.43 3.53 years |
ORGANIZATION AND DESCRIPTION 29
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual) $ in Millions | 1 Months Ended | 6 Months Ended |
Oct. 20, 2014shares | Jun. 30, 2016USD ($) | |
HongKong Takung Assets And Equity of Artworks Exchange Co Ltd [Member] | ||
Organization And Description Of Business [Line Items] | ||
Entity Incorporation, State Country Name | Hong Kong | |
Entity Incorporation, Date of Incorporation | Sep. 17, 2012 | |
Takung Shanghai Co Ltd [Member] | ||
Organization And Description Of Business [Line Items] | ||
Entity Incorporation, State Country Name | Takung Shanghai | |
Entity Incorporation, Date of Incorporation | Jul. 28, 2015 | |
Capital Units, Value | $ | $ 1 | |
Takung Cultural Development Tianjin Co Ltd [Member] | ||
Organization And Description Of Business [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jan. 27, 2016 | |
Capital Units, Value | $ | $ 1 | |
Common Stock [Member] | ||
Organization And Description Of Business [Line Items] | ||
Stock Issued During Period, Shares, Acquisitions | 23,330,662 | |
Common Stock [Member] | Pre Reverse Split [Member] | ||
Organization And Description Of Business [Line Items] | ||
Stock Issued During Period, Shares, Acquisitions | 933,227 | |
Common Stock [Member] | Share Exchange Agreement [Member] | ||
Organization And Description Of Business [Line Items] | ||
Stock Issued During Period, Shares, New Issues | 209,976,000 | |
Conversion of common stock, Conversion Ratio | 10.4988 | |
Common Stock [Member] | Share Exchange Agreement [Member] | Pre Reverse Split [Member] | ||
Organization And Description Of Business [Line Items] | ||
Stock Issued During Period, Shares, New Issues | 8,399,040 |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture, fixtures and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of the remaining lease terms or the estimated 3 years |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016HKD | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||||||
Cash and Cash Equivalents, at Carrying Value, Total | $ 4,094,609 | $ 2,221,878 | $ 4,094,609 | $ 2,221,878 | $ 10,769,456 | $ 2,355,839 | |
Foreign Currency Exchange Rate Weighted Average Translation Rate | 7.7671 | 7.7671 | 7.7538 | ||||
Listing Fee Revenue | $ 3,002,474 | 606,143 | $ 5,197,538 | $ 1,109,776 | |||
Commissions Fee Percentage on Total Transaction | 0.30% | 0.30% | |||||
Reduced Commission Fee Percentage on Total Transaction | 0.20% | 0.20% | |||||
Minimum Charge on Total Transaction | $ 0.13 | HKD 1 | |||||
Incentive Percentage to Related Referrer on Commission Earned | 15.00% | 15.00% | |||||
Foreign Currency Exchange Rate, Translation | 7.7591 | 7.7591 | 7.7507 | ||||
Restricted Cash and Cash Equivalents | $ 25,676,516 | $ 25,676,516 | $ 16,195,289 | ||||
Fees and Commissions, Other | 926,789 | 301,382 | 2,070,260 | 1,027,990 | |||
Property Management Fee Revenue | 431,584 | $ 28,436 | $ 560,075 | $ 71,785 | |||
Management Fee Income Description | $0.0013 (HK$0.01) per 100 artwork ownership units per day. | $0.0013 (HK$0.01) per 100 artwork ownership units per day. | |||||
Reduced Commission Fee Percentage On Total Transaction Resulting | 0.40% | 0.40% | |||||
Customer Deposits, Current | 25,676,516 | $ 25,676,516 | $ 16,195,289 | ||||
Enterprise Income Tax | 16.50% | 16.50% | |||||
Restricted Investments | $ 4,514,061 | $ 4,514,061 | |||||
Sales Revenue, Net [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Concentration Risk, Percentage | 10.00% | 10.00% | 7.7591% | 7.7591% | 10.00% | ||
Takung Shanghai Co Ltd [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Enterprise Income Tax | 25.00% | 25.00% | |||||
China, Yuan Renminbi | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Foreign Currency Exchange Rate Weighted Average Translation Rate | 6.5352 | 6.5352 | |||||
Foreign Currency Exchange Rate, Translation | 6.6459 | 6.6459 | |||||
Minimum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Offering Fee Percent | 22.50% | 22.50% | |||||
Incentive Percentage to Related Referrer on Commission Earned | 40.00% | 40.00% | |||||
Maximum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Offering Fee Percent | 48.00% | 48.00% | |||||
Incentive Percentage to Related Referrer on Commission Earned | 60.00% | 60.00% |
PREPAYMENT AND OTHER CURRENT 32
PREPAYMENT AND OTHER CURRENT ASSETS (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepayment | $ 741,258 | $ 1,172,405 |
Prepaid expense and other receivables | 81,476 | 0 |
Prepayment and other current assets | $ 822,734 | $ 1,172,405 |
SHORT TERM INVESTMENTS (Details
SHORT TERM INVESTMENTS (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | $ 0 | $ 0 |
Maximum [Member] | ||
Held To Maturity Securities, Debt Interest Rate | 3.45% | |
Held-to-maturity Securities, Debt Maturities, Date | Aug. 18, 2016 | |
Minimum [Member] | ||
Held To Maturity Securities, Debt Interest Rate | 3.30% | |
Held-to-maturity Securities, Debt Maturities, Date | Jul. 14, 2016 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Cost | ||
Furniture, fixtures and equipment | $ 64,300 | $ 61,787 |
Leasehold improvements | 153,554 | 140,955 |
Computer trading and clearing system | 2,488,190 | 1,628,542 |
Sub-total | 2,706,044 | 1,831,284 |
Less: accumulated depreciation | (856,881) | (618,029) |
Property and equipment, net | $ 1,849,163 | $ 1,213,255 |
PROPERTY AND EQUIPMENT, NET (35
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 136,727 | $ 82,812 | $ 239,700 | $ 156,940 |
INTANGIBLE ASSETS (Details Text
INTANGIBLE ASSETS (Details Textual) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 20,531 | $ 22,194 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Other Non Current Assets [Line Items] | ||
Prepayment - non-current | $ 65,830 | $ 0 |
Deposit - non-current | 130,369 | 121,381 |
Total non-current assets | $ 196,199 | $ 121,381 |
ACCRUED EXPENSES AND OTHER PA38
ACCRUED EXPENSES AND OTHER PAYABLES (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule Of Accounts Payable And Accrued Liabilities [Line Items] | ||
Trading and clearing system | $ 156,834 | $ 76,763 |
Accruals for promotional services related to trading platform | 116,530 | 0 |
Accruals for professional fees | 21,460 | 75,116 |
Accruals for consulting fees | 290,660 | 259,244 |
Accruals for rental | 19,580 | 15,855 |
Temporary customer deposits | 614,999 | 175,216 |
Payroll payables | 49,085 | 46,167 |
Other payables | 76,162 | 19,261 |
Total accrued expenses, account & other payables | $ 1,345,310 | $ 667,622 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes [Line Items] | ||||
Current | $ 473,294 | $ 31,485 | $ 876,927 | $ 146,217 |
Deferred | (94,116) | (21,755) | (96,581) | (9,315) |
TOTAL PROVISION FOR INCOME TAXES | $ 379,178 | $ 9,730 | $ 780,346 | $ 136,902 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income before income tax expense | $ 1,496,021 | $ 86,906 | $ 2,993,241 | $ 708,173 |
Provision for taxes at respective statutory tax rate | 157,118 | 5,421 | 261,996 | 109,238 |
Tax effect of non-deductible expenses | (26,317) | (10,477) | 21,625 | 12,878 |
Changes in valuation allowance | 248,377 | 14,786 | 496,725 | 14,786 |
TOTAL PROVISION FOR INCOME TAXES | $ 379,178 | $ 9,730 | $ 780,346 | $ 136,902 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Net operating losses | $ 834,203 | $ 306,102 |
Excess advertising expense | 78,811 | 0 |
Total deferred tax assets | 913,014 | 306,102 |
Valuation allowance | (802,829) | (306,102) |
Deferred tax asset, net of valuation allowance | 110,185 | 0 |
Deferred tax liabilities | ||
Property, plant and equipment, principally due to differences in depreciation | 60,476 | 45,037 |
Deferred tax liability | $ 60,476 | $ 45,037 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes [Line Items] | ||||
Operating Loss Carryforwards | $ 802,828 | $ 802,828 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% | |||
Income Tax Expense (Benefit) | $ 379,178 | $ 9,730 | $ 780,346 | $ 136,902 |
Effective Income Tax Rate Reconciliation, Percent, Total | 25.30% | 11.20% | 26.10% | 19.30% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 25.00% |
COMMITMENTS AND CONTINGENCIES43
COMMITMENTS AND CONTINGENCIES (Details) | Jun. 30, 2016USD ($) |
Operating Leased Assets [Line Items] | |
Remaining 2,016 | $ 301,428 |
Year ending December 31, 2017 | 568,501 |
Year ending December 31, 2018 | 277,353 |
Year ending December 31, 2019 | 85,421 |
Year ending December 31, 2020 | 15,047 |
Year ending December 31, 2021 | 15,047 |
Year ending December 31, 2022 and thereafter | 52,664 |
Total | $ 1,315,461 |
COMMITMENTS AND CONTINGENCIES44
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Operating Leased Assets [Line Items] | |||||
Operating Leases, Rent Expense, Net | $ 111,987 | $ 61,287 | $ 228,926 | $ 127,186 | |
Capital Lease Obligations, Current | $ 259,570 | $ 259,570 | $ 348,329 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | ||||
Net income | $ 1,116,843 | $ 77,176 | $ 2,212,895 | $ 571,271 |
Weighted-average shares outstanding | ||||
-Basic (in shares) | 10,632,276 | 9,332,267 | 10,632,276 | 9,332,267 |
Stock options | 679,109 | 0 | 600,713 | 0 |
-Diluted (in shares) | 11,311,385 | 9,332,267 | 11,232,989 | 9,332,267 |
Earnings per share | ||||
-Basic (in dollars per share) | $ 0.11 | $ 0.01 | $ 0.21 | $ 0.06 |
-Diluted (in dollars per share) | $ 0.10 | $ 0.01 | $ 0.20 | $ 0.06 |
EARNINGS PER SHARE (Details Tex
EARNINGS PER SHARE (Details Textual) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Schedule of Earnings Per Share [Line Items] | ||
Incremental Common Shares Attributable to Dilutive Effect of Nonvested Shares with Forfeitable Dividends | 487,000 | 487,000 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - Restricted Stock [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Schedule of Stockholders Equity [Line Items] | ||
Number of Shares, Unvested at December 31, 2015 | 11,131 | |
Number of Shares, Granted | 7,463 | |
Number of Shares, Forfeited | 0 | |
Number of Shares, Vested | (7,937) | |
Number of Shares, Unvested at June 30, 2016 | 10,657 | 11,131 |
Weighted Average Grant Date Fair Value, Unvested at December 31, 2015 | $ 3.5 | |
Weighted Average Grant Date Fair Value, Granted | 3.35 | |
Weighted Average Grant Date Fair Value, Forfeited | 0 | |
Weighted Average Grant Date Fair Value, Vested | 3.5 | |
Weighted Average Grant Date, Unvested at June 30, 2016 | $ 3.43 | $ 3.5 |
Weighted Average Remaining Contractual Term, Unvested | 3 years 6 months 11 days | 3 years 10 months 28 days |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - USD ($) | Mar. 02, 2016 | Feb. 02, 2016 | Mar. 30, 2016 | Feb. 29, 2016 | Nov. 20, 2015 | Nov. 16, 2015 | Aug. 26, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Aug. 27, 2015 |
Schedule of Stockholders Equity [Line Items] | ||||||||||||
Stock Issued During Period, Shares, Issued for Services | 300,000 | |||||||||||
Stock Issued During Period, Value, Issued for Services | $ 186,000 | |||||||||||
Share-based Compensation, Total | $ 219,038 | $ 0 | $ 659,774 | $ 0 | ||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 2.91 | |||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 3.65 | |||||||||||
Restricted Stock [Member] | ||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 7,463 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 7,937 | 7,937 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 7,937 | |||||||||||
2015 Incentive Stock Plan [Member] | ||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 431,525 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,037,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 41,270 | |||||||||||
2015 Incentive Stock Plan [Member] | Effective From 30th March 2016 [Member] | ||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 112,925 | |||||||||||
2015 Incentive Stock Plan [Member] | Effective From 29th February 2016 [Member] | ||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | |||||||||||
2015 Incentive Stock Plan [Member] | Effective From 2nd February 2016 [Member] | ||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 268,600 | |||||||||||
2015 Incentive Stock Plan [Member] | Restricted Stock [Member] | ||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 7,463 | |||||||||||
Subscription Agreement [Member] | ||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||
Shares Issued, Price Per Share | $ 1.58 | |||||||||||
Stock Issued During Period, Shares, New Issues | 1,000,000 | |||||||||||
Proceeds from Issuance of Private Placement | $ 1,580,000 | |||||||||||
Regeneration [Member] | ||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 487,000 | |||||||||||
Share-based Compensation, Total | $ 109,923 | $ 494,653 | ||||||||||
Non Employee [Member] | 2015 Incentive Stock Plan [Member] | Effective From 2nd February 2016 [Member] | ||||||||||||
Schedule of Stockholders Equity [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 |
SUBSEQUENT EVENT (Details Textu
SUBSEQUENT EVENT (Details Textual) ¥ in Thousands, $ in Millions | Jul. 15, 2016USD ($) | Jul. 15, 2016CNY (¥) |
Hong Kong Takung Assets and Equity of Artworks Exchange Co., Limited [Member] | US Dollar Loan [Member] | ||
Subsequent Event [Line Items] | ||
Debt Instrument, Maturity Date | Dec. 31, 2016 | |
Debt Instrument, Face Amount | $ 1.5 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% |
Takung (Shanghai) Co., Ltd [Member] | RMB Loan [Member] | ||
Subsequent Event [Line Items] | ||
Debt Instrument, Face Amount | $ 1.5 | ¥ 10,080 |